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Economics
of Private Schooling Industry in Kohima: A Study
--
S K Mishra and Kevizakie Rio
The
enterprise of running private schools has, of late, assumed
the nature of an industry in India. Ever-increasing population,
a race for providing education to one's children, degenerating
quality of education in government-run schools, unlimited
supply of educated youths ready to work at the lowest salary
and the possibilities of earning huge profits for a modest
investment all these have contributed to the viability of
this industry. In Kohima, the capital city of Nagaland (India),
which is our study area, there are 31 private high/higher
secondary schools against only three government-run schools.
These private schools enroll some 25,000 pupils while the
enrolment in the government-run schools is barely 1,600 students.
These private schools employ 766 teachers and pay them an
average salary which is only one-third of what the government-run
schools pay. According to the ILO (1996) definition of subsistence
wages (the hourly wage sufficient to buy 1 kg. of the lowest
priced staple cereal), the employees of these schools barely
earn a subsistence wage. Nevertheless, these schools generate
a revenue of Rs. 88 mn, out of which Rs. 3.7 mn is the net
profit. Our analysis shows that private schooling industry
in Kohima operates in a monopolistic competition marketbordering
on oligopoly. There is price leadership in determining the
fees to be charged by the schools making this industry.
©
2006 IUP . All Rights Reserved.
Size
and Returns to Scale of Non-bank Financial Institutions: Empirical
Evidence from Malaysia
-- Fadzlan
Sufian
By
applying the non-parametric Data Envelopment Analysis (DEA)
method, this paper attempts to investigate the efficiency
of Malaysian Non-bank Financial Institutions (NBFIs) during
the period of 2000-04. The results suggest that the merchant
banks have exhibited mean overall efficiency of 78.1%, while
the finance companies' mean overall efficiency was 91.3%.
The results suggest that during the period of the study, pure
technical inefficiency, rather than scale inefficiency, has
largely resulted in Malaysian NBFIs' overall inefficiency.
Examination of the sample of 80 observations over the five-year
period revealed that while, on average, 28.75% of all Malaysian
NBFIs were operating at Constant Retuns to Scale (CRS), the
majority, i.e., 71.25%, were scale inefficient (operating
at Decreasing Returns to Scale (DRS) or Incresing Returns
to Scale (IRS).
©
2006 IUP . All Rights Reserved.
Japanese
Economic Woes and Banking Troubles
--
Krishna Chaitanya V
The
Japanese economy was seen as a role model for other emerging
economies which were striving for consistent economic growth
and it was all set to take over the US by the 1990s. However,
Japan experienced structural problems that pushed the economy
deep into stagnation. The economic growth of Japan during
the late 1990s was around 0.8%. The economy faced some severe
problems like drastic increase in its fiscal deficit and accumulated
debt. The `asset bubble', and the collapse of stock markets
in the 1990s followed by South East Asian crisis in late 1990s
affected the fortunes of the banking industry in the country.
The non-performing assets in the Japanese banking industry
were one of the highest in the world, leading to bankruptcy
of many banks in the economy. Though the government initiated
measures to bring the economy back on to the track of economic
growth, nothing great has been achieved as the economic woes
still continue.
©
2006 IUP . All Rights Reserved.
Indian
Economy beyond 2005: A Strategic Perspective
--
V S Singh and B K Singh
The
"future" has already happened as we have entered
the new Millennium with a reformed Indiademographically a
large country with small economy. It is about five decades
and a half after independence, and a decade and half after
reforms, the story of India is the "saga of missed opportunities".
However, it should not be misconstrued that there have been
no achievements during the said period. The achievements are
there, but they do not reflect the potential of the economy.
They are not commensurate with the resource strength and opportunities
that the country had in yesteryears and has today also. The
small economy of the giant country presents a rather gloomy
picture with an unacceptable gap between potential and performance.
It is high time that we addressed the performance facet so
as to assess what we have scaled, what we have missed, where
we stand in relation to other countries, what are the threats
that we face today, and what are the prospects for us. Therefore,
the major emphasis of this paper is focused on the reformed
Indian economy in a global context. This is intended to develop
an understanding about the signals that are emanating from
socioeconomic and infrastructure indicators. In a way, the
paper attempts to juxtapose history and future in a strategic
perspective of the current competitive global context.
©
2006 IUP . All Rights Reserved.
Prepayment
Risk in Securitization Transaction: Assessment and Capital
Allocation
-- Ram Pratap Sinha
The
advent of Basel I capital adequacy proposal led to the growth
of securitization transactions, as by making certain assets
off-balance sheet, a bank could hold less capital on an overall
basis in the Basel I regime. However, this led to an increase
in the concentration of credit risk in the books of the concerned
financial institutions. The credit risk related securitization
transaction increases manifold if the underlying assets contain
prepayment provisions, i.e., the borrowers are allowed to
prepay their loans. This paper discusses the two alternative
approaches that exist for assessment of prepayment risk in
the case of securitization transaction. It also spells out
the provisions contained in the Basel II accord regarding
prepayment risk and capital allocation.
©
2006 IUP . All Rights Reserved.
Poverty
Alleviation Programs in India: A Study
-- Srinivasulu Bayineni
India
is a haven to 22% of the world's poor. Such a high incidence
of poverty is a matter of apprehension, in view of the fact
that poverty eradication has been one of the major objectives
of the development process. Really, poverty is a global dialog.
Poverty eradication is considered integral to humanity's mission
for sustainable development. Thus, reduction of poverty in
India is vital for the attainment of international goals.
The philosophy underlying the poverty alleviation programs
is to tackle the rural poverty by endowing the poor with productive
assets and training for raising their skills so that they
are assured of a regular stream of employment and income in
raising themselves above the poverty line. This paper discusses
various poverty alleviation programs and focuses on programs
likeRural Landless Employment Guarantee Program (RLEGP), National
Rural Employment Program (NREP), Jawar Rozgar Yojana (JRY),
and Integrated Rural Development Program (IRDP).
©
2006 IUP . All Rights Reserved.
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