A Real story about a teenager guy

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A Real story about a teenager guy
Amartya Kumar Sen
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Theories of Amarthya Sen

• Presentation by -
• Prashant Savaliya
• Kamlesh Negi
• Omkar Khalan
• Kamlajeet Kundra
• Bhupendra Patil
• BATCH -18 B

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Amartya Kumar Sen (HON)

• He was born on 3 November 1933 in Santiniketan
  Univ campus , West Bengal.
• His ancestral home was at Wari, Dhaka which is
  now in Bangladesh.
• He is an Indian Nobel Prize-winning economist,
• He is known for his work on
• Welfare economics
• Poverty and Famines
• Choice of Techniques
• Development as Freedom
• Economic Inequality
• Food Economics and Entitlements
• He received the Nobel Memorial Prize in Economics
  for his work in welfare economics
• He received the Bharat Ratna award
• He received the 2000 Leontief Prize for his
  outstanding contribution to economic theory
• He received Life Time Achievement award by
  Bangkok-based United Nations Economic and Social
  Commission for Asia and the Pacific (UNESCAP)

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• Some theories of Amartya Sen which we will see
• Welfare economics
• Choice of Techniques
• Poverty and Famines
• Culture Development

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• What is welfare ?
• Welfare is financial assistance program
  funded by tax payers, for taxpayers who are no
  longer capable of supporting themselves and/or
  their families.
• OR In Simply - Governmental provision of
  economic assistance to persons in need
• What is welfare economics ?
• Welfare economics is concerned with evaluation of
  the level of individuals social welfare its
  impact on economic social policies
• The welfare of an individual represented by
  utility (i.e satisfaction )
• welfare can be adequately measured by monitory
  variable i,e either in dollars
• or some other unit of currency
• It attempts to maximize the level of social
  welfare by examining the economic activities of
  the individuals that comprise society.
• What is Social welfare ?
• It is defined as the summation of the welfare of
  all the individuals in the society
• by mean of aggregator function i.e (social
  welfare function )
• Welfare can be measured either cardinally in
  terms of dollars , or measured in terms of
  relative utility. The cardinal method is less
  used today because of aggregation problems it
  make the accuracy of the method doubtful.

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How to measure Welfare ?

• Amartya Sen has also created a formula to
  measuring welfare in a society, using indicators
  like income per capita, which measures average
  salary of the society .The formula is
• Welfare
  Y (1 - G)
• Here Y is the income per capita and G is the Gini
  coefficient,
• Gini coefficient
• The Gini coefficient is a number between 0 and 1,
  
• where 0 means perfect equality (everyone has the
  same income)
• and 1 means perfect inequality (one person has
  all the income, everyone else earns nothing).
  While the Gini coefficient is mostly used to
  measure income inequality, it can be used to
  measure wealth inequality as well.
• The Gini coefficient is calculated using Lorenz
  curve diagram which is the area between the line
  of perfect equality and the Lorenz curve, as a
  percentage of the area between the line of
  perfect equality and the line of perfect
  inequality.

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• A perfectly equal income distribution in a
  society would be one in which every person has
  the same income.
• In this case, the bottom N of society would
  always have N of the income.
• Here perfectly equal distribution can be
  depicted by the straight line yx we call this
  line as line of perfect equality.
• A perfectly inequal distribution, by contrast,
  would be one in which one person has all the
  income
• and everyone else has none.
• In that case, the curve would be at y0 for
  all xlt100, and y100 when x100. We call this
  curve the
• line of perfect inequality.

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• Social welfare function
• A social welfare function, in welfare economics
  it is a function which gives a measure of welfare
  of society, using number of economic variables as
  inputs.
• Kenneth Arrow is an American economist proved
  that it is impossible to have a social welfare
  function
• But Abram Bergson coma up with social welfare
  function in 1938.
• The social welfare function can be expressed as a
  function of variables relevant to welfare, such
  as income or life expectancy.
• W Y1 Y2
  .... Yn
• Where W is social welfare and Y is
  the income of each of the Xth individual in a
  society.
• In this case, maximising the social
  welfare function means maximising the total
  income of the people in the society, without
  regard to how incomes are distributed in society
• Alternatively, the social welfare function can
  also be expressed with Max-Min utility function
  (based on the philosophical work of John Rawl)
• W min(Y1, Y2,
  .... ,Yn)
• Here, the W-social welfare
  of society is taken to be related to the income
  of the poorest person in the society, and
  maximising welfare would mean maximising the
  income of the poorest person without regard for
  the incomes of the others.
• These two social welfare functions express very
  different views about how a society would need to
  be organised in order to maximise welfare, with
  the first emphasizing total incomes and the
  second emphasising the needs of the poorest

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Unemployment
It is define as a state of affairs when in a
country there are a large number of able-bodied
persons of working age who are willing to work
but cannot find work at the current wage
levels. Also People who are either unfit for
work for physical or mental reason,or dont want
to work.
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Types of Unemployment

• There are three main types of Unemployment.
• Frictional Unemployment Switching of company
• Structural unemployment- Change technology
• Cyclic unemployment recession or depression

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• Causes of Unemployment in developed and
  undeveloped countries
• The nature of un employment in under-developed
  countries is quite different from developed
  countries
• In Un-developed countries unemployment is chronic
  long term in nature . It is almost universally
  recognized that chronic unemployment is not due
  to deficiency of aggregate effective demand
  rather it is due to lack of land, capital other
  complimentary recourses in term of total
  population and labour force
• In developed countries Major part of unemployment
  in present day is of cyclical nature and is due
  to deficiency of aggregate effective demand
• While in developing countries there is not much
  short term unemployment

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Agriculture Disguised Unemployment

• According to some economists, disguised
  unemployment in agriculture exists in densely
  populated countries such as India, Pakistan,
  Bangladesh, etc.
• As defined by professor Rodan, disguised
  unemployment is the amount of population in
  agriculture which can be removed from it without
  any change in the method of cultivation, without
  leading to any reduction in output.

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Causes of Unemployment in Developing Countries
Unemployment
Lack of stock of physical capital
Use of capital intensive techniques
Inequitable distribution of land
Rigid protective labour legislation
Role of Agriculture in employment generation
Lack of Infrastructure
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Famines

• Famines doesnt need to occur when food supply is
  low. It can even occur when food supply is high
  enough, but the people are unable to buy it
  because they dont have
• any money

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• Causes of Famines are
• Natural disasters (Floods, Drought, Volcanic
  eruptions,Earthquakes)
• Over Populated Areas, that are unable to feed
  masses of people.
• Poor Quality of Health Facilities.
• Govt. that have poor management of resources.

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Causes of Mass Starvation

• Many of the biggest mass starvations have been
  intentional
• Stalin targeted Ukranians in 1924, Stalin
  proceeded to collectivize the farms,
  expropriating the land, killing thousands
• While millions starved, food was shipped out of
  the Ukraine and no food was allowed in.
• Desperate Ukraines ate dogs, cats, bark.
  Cannibalism was not uncommon.
• At least 4 million died in the Ukraine.
• In China during the Great Leap Forward, some 30
  million people died of starvation.

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Mass Starvation in Bangladesh, 1974

• The 1974 famine in Bangladesh was not as same as
  the size of the Ukraine or China, perhaps
  26,000-100,000 people died of mass starvation but
  it was probably the first televised starvation
  and it illustrates many important themes.

Floods destoyed much of the rice crop of 1974 at
the same time as world rice prices were
increasing. Before the floods destroyed rice
they destroyed livelihoods. The floods meant
that there was no work for landless rural
labourers who in ordinary years would have been
employed harvesting the rice. Without income
from work and facing rising world rice prices
caused for other reasons there was mass
starvation.
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• As Amartya Sen puts it
• A food-centred view tells us rather little
  about starvation. It does not tell us how
  starvation can develop even without declines in
  food availability. Nor does it tell us even
  when starvation is accompanied by a fall in the
  food supply why some groups had to starve while
  others could feed themselvesWhat allows one
  group rather than another to get hold of the food
  that is there? These questions lead to the
  entitlement approachFor example, a barber owns
  his labour power and some specialized skill,
  neither of which he can eat, and he has to sell
  his hairdressing services to earn an income to
  buy food. His entitlement to food may collapse
  even without any change in food availabilty

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How famines can be prevented

• Supporting farmer in area of food insecurity,
  providing them subsidized fertilizer and seed
• Increase food harvest and reduce food price
• Unintentional starvations can also be avoided
  since the main thing that is required is the
  government will to redistribute wealth or
  employment, and usually not much is required, to
  those people who most need it.
• Democracy and Media alos play an imp role in
  Preventing Famines
• gt Famines have never happened in modern
  countries because the Media and leaders of such
  nations are spurred into action by free-reporting
  and political reasons respectively to save their
  citizens.

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• What is Culture?

Culture is an integrated pattern of human
knowledge, belief, and behavior that depends upon
the capacity for symbolic thought and social
learning.
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• What is Development?

Economic development refers to increases in the
standard of living of a nation's population
associated with sustained growth from a simple,
low-income economy to a modern, high-income
economy. Its scope includes the process and
policies by which a nation improves the economic,
political, and social well-being of its people.
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• How Culture Development is interrelated /
  influence each other?

As per Amartya Sen, Culture matters are integral
parts of the lives we lead. If development can be
be seen as enhancement of our living standards,
then the effort geared to development can hardly
ignore the world of culture. He says that
cultural conditions can exert a strong influence
on human behavior, and through that can affect
economics choices and business decision, as well
as social and political behavior.
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• What is Democracy ?

A political system in which the supreme power
lies in a body of citizens who can elect people
to represent them. In Other Words Democracy
is For the people, By the People, Of the People
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Thank You