mobilization of inputs over geography and industry
Answers
Answer:
Explanation:
Introduction to resource mobilization
Basic of Banking
Evolution of Banking in India
Banking and Agriculture
Types of Banks
Post offices as Financial Intermediary
Role and functions of RBI
Priority Sector Lending
Some other related Institutions – DICGC, Bhartiya Mahila Bank etc.
resource mobilization in india
Resource is anything which has some value and is required to accomplish some desired objective. For life on earth sunlight is the supreme resource. It gave birth to all other current form of resources such as Fuel and Food. Human beings (and every creature) constantly struggle and arrange for or mobilize resources they need. Over thousands of years we have built evolutionary societies in which resource mobilization, its means and methods have also evolved. Ancient barter trade was a system of resource mobilization, and then later currencies developed to facilitate it. For a currency to be acceptable to all, it needs a strong legitimacy. In ancient times this legitimacy was provided by Monarchies and now it is done by numerous forms of governments.
Central thing to the concept of laisses Faire was concept of resource mobilization only. When East India Company colluded with British Empire to get the exclusive rights to trade in the east, it created resentment in newly emerged capitalist class. As we know, it was around this time that Adam Smith in his book wealth of nations strongly pitched for free markets. This theory propagated that Ruling regimes should let resources be distributed as per principles of demand and supply, without any intervention. Prices of the different commodities or services will send signals to buyers and suppliers as to what to consume and manufacture, respectively. Shortage will shoot up prices attracting more investment in production and reverse will happen in case of abundance. This is what he called ‘free hand of markets’.
This free hand or Capitalism went on undeterred for almost 2 centuries, when finally in 1920’s there arrived ‘Great economic Depression’ in the west. Just before this in 1919, Russian revolution yielded a new alternative ideology of resource mobilization, to be called socialism and communism. Great depression dismantled the concept of free markets. British Economist John Keynes demonstrated that markets were amenable to a failure and since then term ‘market failure’ came in vogue. He professed that government job in times of market failure should be to incur ‘Fiscal Deficit’ so that demand in economy is increased. Fiscal Deficit (in short) is expenditure by government over and above its earning. So traditionally, government taxed citizens to fulfil its commitments, but now government will be a ‘net giver’ as expenditure will be more than its income. So this unfolded a new chapter in resource mobilization, and fiscal deficit became an all pervasive mean to cause changes in resource distribution toward weak and vulnerable.
By this time Banking System was highly evolved. Capital or Debt markets, Primary and Secondary markets of different things also emerged. Topic of resource mobilization is so central to subject economics that everything, be it budgeting, Taxation, Stock markets, self-help groups, APMCs, Financial Inclusion and many more, are nothing but related means or issues. So, every topic should be read keeping this thing in mind.
It should be noted that in modern societies all factors of production, trade or service like natural resources, human resource, energy resource etc. and their value is represented by currency/money. So study about distribution of money in market subsumes all other types of resource distribution under it.
So the institutions which basically facilitate Resource Mobilization are called ‘financial Intermediaries’ (FI). In last article we discussed importance of investments. Effective Resource mobilization will aim at channelizing resources toward most productive sectors and avenues, which yield maximum good for least advantaged people. It is precisely here that debate of growth vs. development becomes quite relevant.
Most important FI are Banks, Insurance, Capital Markets and as we noted earlier, government also to much extent. So we’ll try to cover these Intermediators, along with related current issues.
This series will tentatively include following articles –
Banking Sector
Insurance and Capital Markets
Government Finance
Financial Inclusion
Monetary and Fiscal Policy
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