June 16, 2012


Some types of unemployment are:-

• STRUCTURAL UNEMPLOYMENT: Structural unemployment is caused by a mismatch between the sufficiently skilled workers looking for jobs and the vacancies available. Even though the number of vacancies may be equal to the number of the unemployed, the unemployed workers lack the skills needed for the jobs, or are in the wrong part of the country or world to take the jobs offered. Structural unemployment is a result of the dynamics of the labour market and the fact that these can never be as flexible as, e.g., financial markets.

• SEASONAL UNEMPLOYMENT: Seasonal unemployment results from the fluctuations in demands for labour in certain industries because of the seasonal nature of production. In such industries there is a seasonal pattern in the demand for labor. During the period when the industry is at its peak there is a high degree of seasonal employment, but during the off-peak period there is a high seasonal unemployment. Seasonal unemployment occurs when an occupation is not in demand at certain seasons.

• FRICTIONAL UNEMPLOYMENT: Frictional unemployment occurs when a worker moves from one job to another. While he searches for a job he is experiencing frictional unemployment. This specially applies for new entrants (such as graduating students) and re-entrants (such as former homemakers). Frictional unemployment is always present in an economy. Frictional unemployment exists because both jobs and workers are heterogeneous, and a mismatch can result between the characteristics of supply and demand. Such a mismatch can be related to skills, payment, work-time, location, attitude, taste, and a multitude of other factors.

• CYCLICAL UNEMPLOYMENT: Cyclical or Keynesian unemployment, also known as demand deficit unemployment, rises during economic downturns and falls when the economy improves. Keynesians argue that this type of unemployment occurs when there is inadequate effective Aggregate Demand. This is caused by a business cycle recession, and wages not falling to meet the equilibrium level. This type of unemployment is the most serious one. This arises when demand for most goods and services fall, i.e., in recession. When demand falls, less production is needed and consequently fewer workers are being demanded, in such a case mass unemployment can be expected.



The main causes of unemployment in India are:-

•    HIGH POPUALTION GROWTH: The rapid increase in population of our country during the last decade has further worse the unemployment problem in the country. Due to rapidly increasing population of the country, a dangerous situation has arisen in which the magnitude of unemployment goes on increasing during each plan period.

•    JOBLESS GROWTH: Although India is a developing country, the rate of growth is inadequate to absorb the entire labour force in the country. The opportunities of employment are not sufficient to absorb the additions in the labour force of the country, which are taking place as result of the rapidly increasing unemployment in India.

•    INEFFICIENT AGRICULTURAL AND INDUSTRIAL SECTORS: Industrialisation is not rapid in our country and industrial labour finds few job opportunities. As enough other employment opportunities are not available, agriculture is the principal area of employment in our country. Thus, pressure on land is high, as about 2/3 of the labour force is engaged in agriculture. Land is thus overcrowded and a large part of the work force is underemployed and suffer from disguised unemployment.

•    INAPROPRIATE EDUCATION SYSYTEM: After remaining at schools and colleges for a number of years men and women come out in large numbers, having gained neither occupational nor vocational training nor functional literacy from which all future skilled, educated professional, and managerial manpower is drawn.

•    INAPPROPRIATE TECHNOLOGY: In India, while capital is a scarce factor, labour is available in abundant quantity. However, not only in industries, but also in agriculture producers are increasingly substituting capital for labour. On account of abundance of labour, this policy is resulting in large unemployment.

•    WEAKNESSES IN PLANNING TECHNIQUES: The growth strategy underlying our plans has been found to be faulty. Lack in infrastructure development and poor labour-intensive techniques planning has made unemployment a severe issue in our Indian economy.



• Employment Policy up to the 1980s: Direct measures to eliminate unemployment were not preferred as the apprehension was that they could slow down the growth process by raising consumption expenditure on the other hand, and cutting down the economic surplus on the other. This policy was obviously inadequate to tackle the unemployment problem and as a result, the number of unemployment rose. Hence government decided to concentrate on self employment ventures in various fields farm and non-farm operations.

Such as:-

o    Rural development programme

o    National rural employment programme

o    National scheme of training youth for self employment

o    The operation food II dairy project

o    Integrated rural development programme

o    Rural landless employment guarantee programme

•    Employment Strategies during the 1990s: Defining its

employment perspective the Eighth Plan clearly stated, "The employment potential of growth can be raised by readjusting the sectoral composition of output in favour of sector and sub-sector having higher employment elasticity." In certain sectors where technologies are to be upgraded to a higher level of efficiency and international competitiveness, there is little scope for generating additional employment. However, in respect of certain other sectors some flexibility may be available in the choice of technologies and thus it may not be difficult to generate considerable employment.

According to the present estimates, the employment strategy as stated above will enable attainment of the goal of full employment in any case not before 2012 A.D. Therefore, special employment programmes as in the past should be continued to provide short-term employment to unemployed and underemployment among the Poor and the Vulnerable.



•    Swaranjayanti Gram Swarozgar Yojana (SGSY) was launched from April 1, 1999 after restructuring the IRDP and allied schemes. It is the only self-employment programme for the rural poor.

•    Sampoorna Grameen Rozgar Yojana (SGRY) was launched on September 23, 2001 and the scheme of JGSY and Employment Assurance Scheme was fully integrated with SGRY. It aims at providing additional wage employment in rural areas.

•    The Swarana Jayanti Shahari Rozgar Yojana (SJSRY) came into operation from December 1, 1997, subsuming the earlier urban poverty alleviation programmes. It aims to provide gainful employment to the urban unemployed and underemployed poor by encouraging the setting up of self-employment ventures or provision of wage employment.

•    Prime Minister's Rozgar Yojana (PMRY) was designed to provide self-employment to more than a million educated unemployed youth by setting up seven lakh micro-enterprises under the Eighth Five Year Plan.

•    The National Rural Employed Programme (NREP) was started as a part of the Sixth plan and was continued under the Seventh Plan. It was meant to help that segment of rural population which largely depends on wage employment and has virtually no source of income during the lean agricultural period.

•    The Rural Landless Employment Guarantee Programme (RLEGP) was

started on 15th August, 1983, with the objective of expanding employment opportunities for the rural landless, i.e., to provide guarantee to at least one member of the landless household for about 100 days in a year.

•    The Integrated Rural Development Programme (IRDP) was launched in 1978-79 and extended all over the country in 1980-81.It was to provide self-employment in a variety of activities like sericulture, animal husbandry etc. in primary sector, handicrafts etc. in secondary sector , and service and business activities in the tertiary sector.

•    The Scheme of Training Rural Youth for Self-Employment (TRYSEM) was

initiated in 1979. It aimed at training about 2 lakh rural youth every year to enable them to become self-employed.
    Jawahar Rozgar Yojana (JRY) was announced in February 1989, it was supposed to provide intensive employment creation in the 120 backward districts. It was later renamed Jawahar Gram Samridhi Yojana (JGSY) whose objective was creation of infrastructure and durable assets at the village level so as to increase opportunities for sustained employment to the rural poor.

•    The Employment Assurance Scheme (EAS) aimed at providing 100 days of unskilled manual work on demand to two members of a rural family in the age group 18 to 60 years in the agricultural lean season within the blocks covered under the scheme.


June 7, 2012

Rise of Shivaji - APPSC Group 1 Mains - paper 2

Rise of the Marathas

Various factors contributed to the rise of Marathas in the sixteenth and seventeenth centuries. The physical environment of the Maratha country shaped certain peculiar qualities among the Marathas. The mountainous region and dense forests made them brave soldiers and adopt guerilla tactics. They built a number of forts on the mountains. The spread of the Bhakti movement in Maharashtra inculcated a spirit of religious unity among them. The spiritual leaders like Tukkaram, Ramdas, Vaman Pandit and Eknath fostered social unity. The political unity was conferred by Shivaji. The Marathas held important positions in the administrative and military systems of Deccan Sultanates of Bijapur and Ahmadnagar. There were a number of influential Maratha families such as the Mores and Nimbalkers. But the credit of establishing a powerful Maratha state goes to Shahji Bhonsle and his son Shivaji.

Shivaji (1627-1680):

His Life and Conquests Shivaji was born at Shivner in 1627. His father was Shahji Bhonsle and mother Jija Bai. He inherited the jagir of Poona from his father in 1637. After the death of his guardian, Dadaji Kondadev in 1647, Shivaji assumed full charge of his jagir. Even before that he conquered Raigarh, Kondana and Torna from the ruler of Bijapur. He captured Javli from a Maratha chief, Chanda Rao More. This made him the master of Mavala region. In 1657, he attacked the Bijapur kingdom and captured a number of hill forts in the Konkan region. The Sultan of Bijapur sent Afzal Khan against Shivaji. But Afzal Khan was murdered by Shivaji in 1659 in a daring manner.

Shivaji's military conquests made him a legendary figure in the Maratha region. Many came forward to join his army. The Mughal emperor Aurangazeb was anxiously watching the rise of Maratha power under Shivaji. He sent the Mughal governor of the Deccan, Shaista Khan against Shivaji. Shivaji suffered a defeat at the hands of the Mughal forces and lost Poona. But Shivaji once again made a bold attack on Shaista Khan's military camp at Poona in 1663, killed his son and wounded Khan. This daring attack affected the prestige of Khan and he was recalled by Aurangazeb. In 1664, Shivaji attacked Surat, the chief port of the Mughals and plundered it.

This time Aurangazeb sent Raja Jai Singh of Amber to fight against Shivaji. He made elaborate preparations and succeeded in besieging the Purander fort where Shivaji lodged his family and treasure. Shivaji opened negotiations with Jai Singh and the Treaty of Purander was signed in 1665. According to the treaty, Shivaji had to surrender 23 forts to the Mughals out of 35 forts held by him. The remaining 12 forts were to be left to Shivaji on condition of service and loyalty to Mughal empire. On the other hand, the Mughals recognized the right of Shivaji to hold certain parts of the Bijapur kingdom. As Shivaji asked to exempt him from personal service to the Mughals, his minor son Shambaji was granted a mansab of 5000.

Shivaji visited Agra in 1666 but he was imprisoned there. But, he managed to escape from prison and made military preparations for another four years. Then he renewed his wars against the Mughals. Surat was plundered by him for the second time in 1670. He also captured all his lost territories by his conquests. In 1674 Shivaji crowned himself at Raigarh and assumed the title Chatrapathi. Then he led an expedition into the Carnatic region and captured Ginjee and Vellore. After his return from this expedition, Shivaji died in 1680.

Shivaji's Administration

Shivaji was also a great administrator. He laid the foundations of a sound system of administration. The king was the pivot of the government. He was assisted by a council of ministers called Ashtapradhan. However, each minister was directly responsible to Shivaji.

1. Peshwa – Finance and general administration. Later he became the prime minister.

2. Sar-i-Naubat or Senapati – Military commander, a honorary post.

3. Amatya – Accountant General.

4. Waqenavis – Intelligence, posts and household affairs.

5. Sachiv – Correspondence.

6. Sumanta – Master of ceremonies.

7. Nyayadish – Justice.

8. Panditarao – Charities and religious administration.

Most of the administrative reforms of Shivaji were based on the practices of the Deccan sultanates. For example, Peshwa was the Persian title. The revenue system of Shivaji was based on that of Malik Amber of Ahmadnagar. Lands were measured by using the measuring rod called kathi. Lands were also classified into three categories – paddy fields, garden lands and hilly tracks. He reduced the powers of the existing deshmuks and kulkarnis. He appointed his own revenue officials called karkuns.

Chauth and sardeshmukhi were the taxes collected not in the Maratha kingdom but in the neighbouring territories of the Mughal empire or Deccan sultanates. Chauth was one fourth of the land revenue paid to the Marathas in order to avoid the Maratha raids. Sardeshmukhi was an additional levy of ten percent on those lands which the Marathas claimed hereditary rights.

Shivaji was a man of military genius and his army was well organized. The regular army consisted of about 30000 to 40000 cavalry supervised by havaildars. They were given fixed salaries. There were two divisions in the Maratha cavalry – 1. bargirs, equipped and paid by the state; and 2. silahdars, maintained by the nobles. In the infantry, the Mavli foot soldiers played an important role. Shivaji also maintained a navy.

The forts played an important role in the military operations of the Marathas. By the end of his reign, Shivaji had about 240 forts. Each fort was put under the charge of three officers of equal rank as a precaution against treachery. Shivaji was really a constructive genius and nation-builder. His rise from jagirdar to Chatrapathi was spectacular. He unified the Marathas and remained a great enemy of the Mughal empire. He was a daring soldier and a brilliant administrator.

Successors of Shivaji

There ensued a war of succession after the death of Shivaji between his sons, Shambaji and Rajaram. Shambaji emerged victorious but later he was captured and executed by the Mughals. Rajaram succeeded the throne but the Mughals made him to flee to the Ginjee fort. He died at Satara. He was succeeded by his minor son Shivaji II with his mother Tara Bai as regent. The next ruler was Shahu in whose reign the Peshwas rose to power.

Balaji Viswanath (1713-1720)

Balaji Viswanath began his career as a small revenue official and became Peshwa in 1713. As Peshwa, he made his position the most important and powerful as well as hereditary. He played a crucial role in the civil war and finally made Shahu as the Maratha ruler. He sought the support of all Maratha leaders for Shahu. In 1719, Balaji Viswanath got certain rights from the then Mughal emperor, Farukh Siyar. First, the Mughal emperor recognized Shahu as the Maratha king. Second, he allowed Shahu to collect Chauth and Sardeshmukhi from the six Mughal provinces of the Deccan including the Carnatic and Mysore.

Baji Rao I (1720-1740)

Baji Rao was the eldest son of Balaji Viswanath. He succeeded his father as Peshwa at the age young age of twenty. The Maratha power reached its zenith under him. He initiated the system of confederacy among the Maratha chiefs. Under this system, each Maratha chief was assigned a territory which could be administered autonomously. As a result, many Maratha families became prominent and established their authority in different parts of India. They were the Gaekwad at Baroda, the Bhonsle at Nagpur, the Holkars at Indore, the Scindias at Gwalior, and the Peshwas at Poona.

Balaji Baji Rao (1740-1761)

Balaji Baji Rao succeeded his father as Peshwa at the young age of nineteen. The Maratha king Shahu died in 1749 without issue. His nominated successor Ramraja was imprisoned by the Peshwa Balaji Baji Rao at Satara. The full control of the Maratha kingdom came under the Peshwa. Peshwa entered into an agreement with the Mughal Emperor in 1752. According to it the Peshwa gave assurance to the Mughal Emperor that he would protect the Mughal Empire from internal and external enemies for which the Chauth of the northwest provinces and the total revenue of the Agra and Ajmer provinces would be collected by the Marathas.

Thus when Ahmad Shah Abdali invaded India, it became the responsibility of the Marathas to protect India. The Marathas fought very bravely against Ahmad Shah Abdali in the Third Battle of Panipat in 1761. But they got defeated. Many Maratha leaders and thousands of soldiers died in this battle. Balaji Baji Rao also died on hearing the sad end of this battle. Also, this battle gave a death blow to the Maratha power. Thereafter, the Maratha confederacy weakened due to internal conflicts among the Maratha chiefs.

After the decline of the Mughal Empire, the Marathas emerged a great power in India but they could not succeed in preventing the establishment of British power in India. The important causes for the downfall were that there was lack of unity among the Maratha chiefs like Holkar, Scindia and Bhonsle. Also, the superiority of the British army and fighting methods ultimately won.


June 3, 2012

The main weaknesses of cooperative banks -Paper 3 - group 1 mains

1. The vital link in the co-operative credit system namely, the Primary Agricultural Co-operative Societies, themselves remain very weak. They are too small in size to be economical and viable; besides too many of them are dormant, existing only on paper.

2. With the expanding credit needs of the rural sector, the commercial banks have come in actively to meet the credit requirements of this sector, and this has aggravated the difficulties of co-operative banks. The theory that cooperative banks would be buoyed up by the competition from other financial institutions does not appear to have worked.


3. Co-operative banks are not doing well in all the states; only a few account  for a major part of their business. For example, 75 per cent of total deposits mobilised by State C-operative Banks was from only seven states in 1987 Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Tamil Nadu, and Uttar Pradesh.

4. These banks still rely very heavily on refinancing facilities from the government, the RBI, and NABARD. They have yet not been able to become self-reliant in respect of resources through deposit mobilisation.


5. They suffer from dangerously low or weak quality of loan assets, and from highly unsatisfactory recovery of loans. They suffer from infrastructural weaknesses and structural flaws. They do not look like banks and do not inspire confidence in the potential members, depositors and borrowers.


6. Poor resource base is main constraint of these banks. Relatively low per capita base and less equity base due to non-participations of the members in the financial activities and limited area of operation is becoming a permanent obstacle in the progress of this sector.

7. Poor profit position and burden of huge accumulated losses of several cooperative banks has threatened the very survival of these banks. The amount of cost of management of this sector has adversely affected its profitability.


8. Most of the Co-operative banks are suffering from the lack of professional management. In the deregulated environment and stiff competition in the banking sector, do to lack of the professionalism in carrying out banking activities, the weakness of these banks has become more prominent.

9. Many co-operative banks even now continue to follow age-old system and procedures, which are not conductive in the present technologically driven banking environment. Except some Co-operative banks, technological development in Information Technology or computerized data management is conspicuously absent.


10. There is a lack of proper governance. Corporate Governance has great relevance in the present environment. As there is no formal system of corporate governance in co-operative banks, many banks have become the hot bed of political patronage, unscrupulous financial practice and gross mismanagement.

11. Another problem arises out of the duality of control over them i.e. these banks are organized under dual control of RBI and as well as respective state government. Apart from the intervention of the apex bodies, the Government is also found to exercise control in various ways on these banks.

Government intervention in the management, administration and business operation of co-operative banks has made the institution lose his own distinct character.


12. They suffer from too much officialisation and politicisation. Undue governmental interventions have prevented them from developing steadily as a self-reliant and resilient credit system. Most of them are headed by politicians.

13. They unduly depend on government capital rather than member capital. There is no active participation of their members in their working, which can come about if they work with members' money rather than government largesse.