Comparison Between The Financial Markets Of India And China Sample College Essay

Executive summary

The Chinese and Indian financial systems rely heavily on the country’s banking and money markets. People who do not want to spend all their money and those who would like to spend more than they have can both benefit from their services. Therefore, financial institutions work to mitigate market pressures like fierce rivalry for scarce goods. Banks and money markets, like the heart, pump money into the economy to keep it healthy and thriving (John et al., 1997). There are periods when economies require less money and times when they require more. Banks use various methods to regulate the supply of currency, which vary with the state of the economy and the central bank’s authority. One of the primary tools used by the central banks of China and India to regulate the money supply is the reserve requirement. There exists a widespread practice in these financial markets whereby central banks mandate that depository institutions, such as commercial banks, hold a specific percentage of their clients’ deposits as reserves (John et al., 1997). So, money is constantly saved and never squandered away. Reserve requirements can be as low as 9 percent in India. The theory of absolute cost advantage can be helpful in various contexts, including determining interest rates and inflation in China and India. For instance, if India and China can reduce the amount of money needed to produce a particular good or service, the countries may be in a position to sell that good or service to other countries at a lower price, which could help the countries’ exports and their overall economic growth. In the case of China and India, their success in international markets is due in part to their neoclassical economic policies and focus on increasing productivity and efficiency.

Background of the Chinese and Indian financial markets

The Chinese and Indian financial systems rely heavily on the country’s banking and money markets. People who do not want to spend all their money and those who would like to spend more than they have can both benefit from their services. Therefore, financial institutions work to mitigate market pressures like fierce rivalry for scarce goods. Banks and money markets, like the heart, pump money into the economy to keep it healthy and thriving (John et al., 1997). There are periods when economies require less money and times when they require more. Banks use various methods to regulate the supply of currency, which vary with the state of the economy and the central bank’s authority. For instance, in China, The People’s Bank of China serves as the country’s central bank. It is the primary financial reserve of the People’s Republic of China.

Money circulation influences both micro and macroeconomic activities. Individuals and organizations will spend more of their own money if they have access to a huge sum of money that is effectively free (Abbas, 2022). Borrowing money becomes less of a hassle for individuals (via loans for things like cars and homes) and enterprises (through lines of credit and other forms of funding). A country’s GDP, general growth, interest rates, and unemployment rates are all impacted by the flow of money at the macro level (Abbas, 2022). Routinely, the People’s Bank of China regulates the supply of currency in the economy to achieve economic goals and influence monetary policy.

One of the primary tools used by the central banks of China and India to regulate the money supply is the reserve requirement. There exists a widespread practice in these financial markets whereby central banks mandate that depository institutions, such as commercial banks, hold a specific percentage of their clients’ deposits as reserves (John et al., 1997). So, money is constantly saved and never squandered away. Reserve requirements can be as low as 9 percent in India. Banks with more than $100 million in deposits must have $9 million in reserves. The remaining 91,000,000 USD can be dispersed as needed. This way, sending money to folks who do not need it right now will be less hassle (John et al., 1997). The Reserve Bank of India could encourage excellent economic activity by reducing this requirement. As a result, the bank will be able to extend more loans. People who spend more than they earn will be able to receive aid more efficiently.

Interest rate changes are another tool for reducing consumer spending and increasing competition for limited resources. In China and India, mortgage, auto, and personal loan interest rates are not actively regulated by their respective central banks (John et al., 1997). Conversely, the central bank has a number of tools at its disposal to increase interest rates to target ranges. A prime illustration of this is the central bank’s role in establishing the policy rate (the rate at which commercial banks can borrow money from the central bank). When banks can borrow funds from the central bank at a reduced interest rate, they can reduce the cost of lending to their consumers. Reduced loan interest rates have increased currency availability (John et al., 1997). This will also encourage more people to participate in the economy by spending money.

It is a common misconception that the government cannot affect free markets in any meaningful way. However, governments intervene to ensure market order, monitor financial dealings, establish the necessary infrastructure, and enforce property rights and contract rules. Governments can implement rescue measures, including bailouts, in the event of a market collapse. For instance, China and India should weigh the benefits and drawbacks of various hedging strategies before settling on one. The theory of absolute cost advantage specifies that the prosperity of a nation cannot be calculated by how much gold and other valuable commodities it has but by its people’s living values. Investments in securities, real estate, currencies, and interest rates are among the most effective ways for businesses to lower their risk exposure. Different industries can benefit from using different hedging contracts to spread risk (Nasir et al., 2018). Derivatives are financial contracts whose value relies on the value of the underlying commodity or assets. Commodities, equities, currencies, and interest rates are only some examples. In contracts, they serve to mitigate potential adverse outcomes. Forwards, futures, options, swaps, equity derivatives, and credit derivatives are all examples of derivatives that can be purchased in the financial markets. A company may use one or more derivatives to cover its various risks. According to Keynesian economics, the role of the government in the economy is crucial (Paul et al., 2018). This is evidenced by the ebb and flow of prosperity seen in free markets.

Critical assessment of the attractiveness of international expansion of China and India

Absolute Cost Advantage Theory

Absolute Cost Advantage Theory

The father of modern economics, Adam Smith, first proposed this concept. This concept was conceived in reaction to protectionist and mercantilist viewpoints on international commerce. According to Adam Smith, free trade is crucial since it is the only way to guarantee trade expansion. He argues that nations should only produce items with a competitive advantage. According to Smith, free trade facilitates the division of labor around the world (Paul et al., 2018). Producers with varying absolute advantages will always be able to outperform producers in more isolated locations thanks to specialization and division of labor. He advocated playing to a country’s strengths to increase output while decreasing costs. A nation should engage in competitive advantage exporting when its production costs for a given product are lower than those of competing nations.

The theory explains how nations can profit from trade by specializing in producing goods and services where their production costs are lower (Paul et al., 2018). This allows the nation to produce more goods and services at a lower cost. According to this theory, the relative costs of production in different nations are different for various reasons, including differences in technology, the cost of labor, and the availability of natural resources. Both China and India try to reduce their cost of production to gain a competitive advantage. However, China has managed to reduce its cost of production hence gaining a competitive advantage.

For this reason, the theory of absolute cost advantage can be helpful in various contexts, including determining interest rates and inflation in China and India. For instance, if India and China can reduce the amount of money needed to produce a particular good or service, the countries may be in a position to sell that good or service to other countries at a lower price, which could help the countries’ exports and their overall economic growth (Fredrick et al., 2012). Interest rates may decline if there is a concurrent increase in the credit demand and the central bank’s efforts to stimulate economic activity.

Similarly, India might be able to lower the prices of the goods and services it offers due to technological developments or other increases in efficiency. This has helped China to maintain low inflation rates. The rate at which prices are increasing is referred to as inflation, and the fact that prices are increasing at a slower rate can help to keep interest rates at a low level (Fredrick et al., 2012).

Neoclassical counterrevolution theory

Neoclassical counterrevolution theory

Neoclassical counterrevolution theory is an economic theory that explains how building up capital, making progress in technology, and increasing productivity all help the economy grow (Paul et al., 2018). This idea says that countries with higher productivity and efficiency can make goods and services for less money, which makes them more competitive on the world market. In the case of China and India, their success in international markets is due in part to their neoclassical economic policies and focus on increasing productivity and efficiency. Both countries’ economies have become more productive and competitive due to market-based reforms and the influx of foreign capital.

China and India are also good places to make things and do business because they have many people and do not pay much for their labor. Their ability to make goods and services for less money than other countries has helped them grow their international market. The neoclassical counterrevolution thesis is an excellent way to understand how China and India have grown quickly in international markets. The theory demonstrates how their focus on boosting productivity and competitiveness has helped their economy, even though other things like government policies, trade agreements, and the global economy have also played a role.

Evaluation of Chinese and Indian Economies

Economic evaluation India China
Patterns of trade Since the early 1990s, there have been significant shifts in the worldwide economic patterns involving India. A sixteen-fold growth from 1990–1991’s $18 billion to 2017–2018’s nearly $300 billion may be seen in export value. Imports of goods during this same period increased by more than 20 times, from $ 24 billion to more than $ 460 billion. The export market is moving away from traditional staples like textiles and food. Currently, 28 percent of all items are engineering-related. Many vital drugs are exported from India, making it a “pharmacy” for the rest of the globe. Companies in developed economies have been increasingly turning to their Indian partners to handle back-office operations that necessitate a high level of IT and expertise, turning India into a global back office. Although these remittances and remittance revenue support India’s balance of payments, they are not included in statistics on merchandise trade. To deal with global economic integration and industrial migration, China has established a strategy and policy that prioritizes “active absorption of foreign direct investments and facilitation of international trade development.” Excellent results have been obtained using this technique, but it is increasingly difficult to implement. Resource, energy, and environmental issues are worsening as China’s economy develops rapidly. China’s relationships with other nations have suffered due to the rapid expansion of China’s trade volume throughout the world, which has led to a rise in the number of trade disputes. Given the current environment, recent national changes, and international contacts, China needs to develop a long-term trade policy.
Major trade partners India enjoys a substantial commercial relationship with numerous Middle Eastern nations, such as Saudi Arabia and the United Arab Emirates. China, Singapore, Japan, and many more Asian nations have substantial trading ties with India. Additionally, India has a close trade relationship with the United States. Many Asian nations, notably Japan, South Korea, and Australia, trade extensively with China. In addition, China has substantial trading ties with several European nations, including Germany, the UK, France, and the United States (Petros, 2012).
The competitive advantage of the economy

· Interest rate

· Inflation rate

· Unemployment rate

· Exchange rate

· Net FDI

· Foreign reserve

· Gold reserve

· Poverty index

· The Reserve Bank of India, the nation’s central bank, determines the benchmark interest rate. The benchmark interest rate in India was about 4% as of 2021 (Petros, 2012).

· The inflation rate in India was 4% in the year 2021

· India had an unemployment rate of about 7% in 2021.

· Around 73 Indian rupees were for one U.S. dollar when the exchange rate stood.

· India’s net FDI was estimated to be $49 billion in 2021.

· India’s foreign reserves were approximately $570 billion in 2021.

· India’s gold holdings were estimated to be 558.5 million ounces in 2021.

· In India, the poverty index was 21% as of 2021. (Petros, 2012).

· The benchmark interest rate for China is established by the People’s Bank of China, the nation’s central bank. The benchmark interest rate in China was about 3% as of 2021.

· The inflation rate in china was 2% in the year 2021 (Petros, 2012).

· China had an unemployment rate of about 5% as of 202.

· The exchange rate between the Chinese yuan and the American currency as of 2021 was roughly 6.5 yuan to 1 dollar.

· China’s net FDI in 2021 was estimated to be $163 billion.

· China’s foreign reserves were over $3.2 trillion as of 2021.

· China’s gold holdings were estimated to be 63.5 million ounces as of 2021.

· In China, the poverty index was about 1% as of 2021 (Petros, 2012).

Trade agreements Twelve bilateral and multilateral free trade agreements and regional agreements have been signed between India and other nations. These pacts streamline India’s ability to trade with foreign nations. The European Union, Canada, Australia, and Israel are among the several countries in FTA negotiations with India (Petros, 2012). There are currently 16 FTAs in effect between China and its business and investment partners, while another eight are either in negotiation or implementation. Countries with free trade agreements with China include those in the Association of Southeast Asian Nations (ASEAN). In addition to the FTAs with Australia and South Korea, China has recently signed FTAs with several other countries (Petros, 2012).
Membership in international trade organizations India’s membership in various international organizations is a focal point of the country’s economic and political development. It is common knowledge that the World Trade Organization (WTO) is a government-led organization focused on facilitating commercial transactions between countries (WTO), and India is one of the countries in the organization (Petros, 2012). China officially joined the World Trade Organization (WTO) on December 11 of that year, following approval by the Ministerial Conference. It took extensive negotiations and substantial economic reforms for China to join the World Trade Organization finally. China’s membership in the WTO has had significant economic and political impacts on other nations, and the WTO itself is not a good fit for China’s economic model (Petros, 2012).

Critical evaluation of challenges facing India and China

China and India have significantly benefited from industrialization and trade policies, but there have also been significant drawbacks. The following are some of the major difficulties that both nations have encountered as a result of industrialization and trade policies:

Environmental degradation: The growth of businesses has caused air, water, and soil pollution in both China and India, which has led to several environmental issues like climate change, desertification, and biodiversity loss (Nasir et al., 2018).

Social inequality: Trade and industrialization policies frequently favored some sections of the population more than others, resulting in social inequality and an increasing wealth disparity.

Labor issues: Industrialization has increased the labor force in China and India, but it has also brought about several labor-related problems, such as low salaries, unfavorable working conditions, and worker exploitation (Nasir et al., 2018).

Export dependence: China and India are both strongly dependent on exports for economic growth, which leaves them open to changes in the global economy and shifts in consumer demand for their goods. While trade policies and industrialization have benefited China and India greatly, they have also generated several problems that both nations have had to resolve (Nasir et al., 2018).

Several governmental takeovers have stymied industrialization efforts in China and India (Enderwick, 2022). Many worry that politically influential groups would exploit industrial policy for their own ends rather than alter the economic system. There is substantial evidence that the Chinese president’s financial holdings in many industries, including banking, telecommunications, and transportation, have helped shield some Chinese enterprises from competition both within China and outside, like the development policy of China (Enderwick, 2022). As a result of price increases brought on by monopolistic power being granted to specific sectors, China’s exporting sector is now less competitive than before. Since this is a worldwide issue, it is crucial to consider how to prevent the policy from being usurped by other nations before implementing an industrial plan. By raising awareness of the correlation between cronyism and job losses, citizens can pressure politicians to fulfill their campaign pledges, decreasing the likelihood of political capture.

According to India’s 2020 WTO Trade Policy Review, India’s trade policy mainly comprises tariffs, export restrictions, export taxes, anti-dumping fines, and import licenses. According to economist Arvind Panagariya, these technologies wreak havoc on the international trade system by sowing doubt and confusion (Enderwick, 2022). Most of the policy changes implemented through circulars and notifications counter India’s trade policy goals outlined in the country’s five-year FTP plan. New import limits, tariffs, and regulations have made India’s trade policy the most stringent it has ever been. Schedule 1 of India’s import regulation lists “restricted” commodities, and this year, 101 types of military hardware are expressly prohibited.

Conclusion and Recommendations

International trade transactions have become more complex due to the globalization of trade through digitalization. A comprehensive strategy is now more crucial than ever, and policymakers from China and India must put aside their limited vision and concentrate on coordinating, simplifying, and integrating the FTP goals with other strategic initiatives while guaranteeing their adherence, suitability, and cohesion with the international trading system. Therefore, significant adjustments are required to make the new FTP suitable for Export activities and at the legislative level. Tax reductions and rebates should be implemented in the Chinese and Indian economies. Tax reductions and tax credits aim to place more income in taxpayers’ wallets. The ideal scenario is for these customers to spend some of that cash at various firms, raising their revenues, profits, and cash flows (Cheng & Birth, 2018). More cash gives businesses the means to raise finance, advance technologies, expand, and grow. All of these activities boost productivity, which boosts economic growth. Tax discounts and repayments allow customers to lift the economy by spending more money. For these reasons, the techniques will enable investors to conduct profitable business while the economy grows. The Chinese and Indian financial systems rely heavily on the country’s banking and money markets. People who do not want to spend all their money and those who would like to spend more than they have can both benefit from their services.

References

Abbas, S., 2022. International Trade Finance and Investment. 1st ed. London: Pearson Education. Print ISBN: 978-1-800-06664-9

Chen, K. Z., Joshi, P. K., Cheng, E., & Birthal, P. S. (2019). Innovations in the financing of agri-food value chains in China and India: Lessons and policies for inclusive financing. China Agricultural Economic Review.

Enderwick, P. (2022). Understanding emerging markets: China and India. Routledge.

Nasir, M. A., & Du, M. (2018). Integration of financial markets in post-global financial crises and implications for British financial sector: Analysis based on a panel VAR model. Journal of Quantitative Economics, 16(2), 363-388.

Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz (2018) International economics: theory and policy, 11th edition Pearson Education.

Frederic S. Mishkin, Stanley G. Eakins, (2012) Financial markets and institutions, 7th edition, Pearson Education. Print ISBN: 0273754440, 9780273754442

Petros Mavroidis, (2012) Trade in goods: the GATT and the other WTO agreements regulating trade in goods, Oxford. Print ISBN: 9780199657483, 0199657483

John P. Lewis, Devesh Kapur, Richard Webb (1997) The World Bank: its first half-century, Brookings Institution. Print ISBN: 081575230X, 0815752342

Considerations For Wearing A Mask Free Sample

Introduction

The extensive disruption that the coronavirus pandemic has produced in daily life has compelled people to make major behavioral adjustments to reduce the likelihood of becoming infected. The use of face coverings, which the “Centers have given a high recommendation for Disease Control and Prevention,” is one of the most important improvements implemented (CDC). It is believed that concealing one’s face can prevent the spread of the virus, particularly when combined with other protective measures such as maintaining social distance and often washing one’s hands. In this essay, we will talk about the various aspects of wearing a mask, such as the different kinds of masks that are out there, the proper way to put them on, and the appropriate times and places to wear them.

Considerations for a specific group of people

Children;

When it comes to the practice of concealing one’s face, it is essential to take into account the requirements of youngsters. Children could have difficulty understanding why they must cover their faces and might need additional direction or supervision to do it correctly (Royo-Bordonada et al., 2022). In addition, it is essential to ensure that the facial covering is the appropriate size for the child since a mask that is either too big or too small runs the risk of not providing adequate protection. In addition, it is essential to ensure that the child wears the face covering properly. An ineffective face covering does not cover the child’s mouth and nose.

People who have issues with their breathing;

When it comes to concealing their face, individuals who have respiratory difficulties may need to take additional safety precautions. Before deciding whether or not to cover one’s face, it is essential for these people to see a medical professional. Doing so can guarantee that the procedure is carried out safely and effectively (Royo-Bordonada et al., 2022). In addition, it is essential to ensure that the coverage for the face is not pulled on too tightly, as this might make breathing difficult.

Individuals Who Have Trouble Hearing or Are Deaf;

When it comes to donning a face covering, individuals who are deaf or hard of hearing may require additional accommodations and concerns. This is because covering one’s face might make it harder to read one’s lips and facial emotions, making it challenging to communicate effectively. In this situation, it is essential to make every effort to guarantee that communication can still take place (Royo-Bordonada et al., 2022). This can involve speaking more slowly, using additional gestures, or writing down messages.

Types of Face Coverings(Masks);

The “Centers for Disease Control and Prevention (CDC)” has suggested that people cover their faces with a cloth whenever they are in public or near other people. It is important to select a mask appropriate for the circumstances, given that various face coverings serve various functions depending on the kind. For instance, face coverings made of fabric are suitable for everyday use, whereas healthcare professionals should only use medical-grade masks such as N95 respirators. Coverings for the face composed of cloth can be crafted from various materials, including cotton, silk, or even a bandana. It is essential to check that the mask can be worn without causing discomfort to the wearer’s face and that it does not leave any gaps around the borders.

The Proper Way to Put on a Mask;

It is essential to wear a face covering to fulfill its intended purpose properly. The “Centers for Disease Control and Prevention (CDC)” advises that individuals wash their hands before and after putting on and removing a mask. In addition, it is essential to check that the mask is properly fitted to the wearer’s face and that there are no spaces around the mask’s edges. In addition, when the mask is worn, it must cover the mouth and nose, and it must not be adjusted or removed while it is being used. It is essential that while wearing a mask, you refrain from touching the front of the mask. This is because touching the mask might transfer germs from your hands to your face.

When and Where to wear a Mask;

When going out in public or being in close quarters with other individuals, the “Centers for Disease Control and Prevention (CDC)” advises that people wear face coverings. This includes traveling to work or school, visiting a doctor’s office, going to the grocery shop, or taking public transportation. People should also wear a facial covering while they engage in activities such as working out or running errands to protect themselves from the sun. Even though you are protecting yourself from the virus by wearing a mask, keeping your distance from other people is still necessary to limit its transmission. This recommendation comes from the “Centers for Disease Control and Prevention (CDC).”

How to Maintain the Condition of Your Mask;

It is essential to provide your face covering with the appropriate maintenance to maintain its efficacy. Thus this should be a priority. The “Centers for Disease Control and Prevention (CDC)” advises that facial covering made of cloth be washed regularly, as this will assist in the removal of any microorganisms that may have developed on the mask. When not in use, the mask should be kept in a clean and dry spot to remain in good condition. In conclusion, it is essential to prevent the spread of the virus by not exposing one’s face to other individuals, as this can enhance the likelihood that it will be passed on.

When it’s time to get rid of your mask or get a new one;

In addition, it is essential to be aware of when it is time to either replace or dispose of your mask. The “Centers for Disease Control and Prevention (CDC)” advises that fabric face coverings should be replaced whenever they become soiled or damp because this can lessen the effectiveness of the covers. In addition, if the face covering gets torn or damaged in any way, it should be thrown away immediately. Finally, the “Centers for Disease Control and Prevention (CDC)” advises that one should throw away disposable face masks after each use. However, fabric face covers can be washed and worn multiple times.

The proper way to remove your mask;

When it comes time to remove your face covering, you must do so in a secure manner. As recommended by the “Centers for Disease Control and Prevention (CDC),” washing one’s hands before and after removing a mask can help reduce the likelihood that germs will spread from person to person. In addition, it is essential to keep from touching the face of the mask when removing it because doing so can transfer germs from the hands to the face. Last but not least, face coverings made of cloth should be kept in a dry and clean location when not in use, whereas disposable face coverings should be thrown away as soon as they have served their purpose.

Conclusion

To summarize, covering one’s face is an effective measure that can be taken to lessen the likelihood of spreading the coronavirus. It is essential to have a thorough understanding of the factors that go into wearing a mask, such as the different kinds of masks that can be purchased, the appropriate way to put one on, and when and where masks should be worn. In addition, it is essential to maintain the face covering correctly and be aware of when it is time to replace or dispose of your mask to maintain adequate hygiene. By adhering to these recommendations, individuals can assist in lowering the likelihood that they will become infected with the virus.

Recommendations

When it comes to wearing a facial covering, it is essential to adhere to the recommendations made by the CDC. This includes washing your hands before, during, and after putting on and taking off the mask, ensuring that the mask fits securely on the face, and refraining from touching the front of the mask while it is being worn. In addition, it is essential to change the face covering if it is soiled or drenched in liquid, and you should always throw away face coverings that are disposable after each usage. Last but not least, it is essential to consider the requirements of particular categories of individuals, such as youngsters, persons who have trouble breathing, and those who are deaf or have a hard time hearing. People can assist prevent the further spread of the virus, protect themselves and others, and defend themselves by adhering to these instructions.

References

Centers for Disease Control(CDC) and Prevention. “Considerations for wearing masks.” (2020).

Royo-Bordonada, M. A., García-López, F. J., Cortés, F., & Andrés Zaragoza, G. (2022). Face masks in the general healthy population. Scientific and ethical issues. Gaceta Sanitaria35, 580-584.

Contemporary Themes In Education Free Essay

Introduction

India’s 2020 National Education Policy was developed as a means to actualize the attainment of the country’s full social, economic, and political development potential. The National Education Policy (N.E.P.) is based on the country’s four global education development objectives stipulated in its 2030 Agenda for Sustainable Development (SDG4) in 2015. These include improving the country’s human capital, developing an equitable society promoting balanced national economic development, and fostering universal access to quality education which is pivotal in the country’s growth in democratic governance, social justice, equality, national integration, scientific research, and development, and cultural preservation. In addition, the National Development Policy seeks to address several challenges that limit India’s accession to global economic dominance, such as insufficient human capital, inefficiency in the distribution of learning resources, and other performance-related shortcoming emanating from its traditional national education framework. To accomplish these objectives, the National Education Policy 2020 reconfigures India’s education system to support and foster learning and satisfyingly address the challenges that India’s population encounter due to recent changes in the employment landscape and overall global economic ecosystem. To better understand the elements of an effective education policy, this study critically analyzes the content of the National Education Policy 2020 (N.E.P.), published by the Government of India through the Department of Human Resource Development. The analysis focuses majorly on the applicability of the policy across foundational, preparatory, middle, and secondary stages of learners’ cognitive, social, and emotional stages of development.

Theories of Education

The Human Capital Theory

Human Capital is one of the theoretical prepositions adopted between 1950 and to 1960s. Proposed by Howard Becker and Theodore Shultz, the human capital theory describes education as a form of investment that has a substantial impact on economic growth; and whose return cannot be accounted for by increases in labor, physical capital, and land (Little 2003: 437). The theory is based on the belief that skills, a form of capital people need to be economically productive, can only be acquired by investing in education. In other words, a country that invests substantially in education amplifies its ability to produce a qualified, sufficient, and well-compensated workforce (Little 2003: 437). This is true because, according to a statement issued by Schultz (1961: 313), the total output that human capital produces surpasses the total output produced by other investments combined. This means that a government can apply cost-benefit analysis to quantify returns to its investment in education the same way it would apply profitability analysis to evaluate returns on physical capital (Little 2003: 438).

The Learner or Child-Centered Ideology

Commonly referred to as Self-Actualization, experimentalist, and humanist; the Learner or Child-Centered Theory of Education emphasizes the needs of children and individuals in schools when developing a learner-based curriculum. As per Schweisfurth (2013: 21), the phrase “Learner-Centered Education” (L.C.E.) cannot be confined to a simple single-line definition as there are many terms associated with it, such as problem-based, progressive education, constructivism, inquiry-based learning, and child-centered learning. Most frequently, these terms are used interchangeably even though each targets learners in different levels of education (Schweisfurth 2013: 21). For instance, the problem-based learning teaching approach adopted in higher education institutions helps learners to solve real-life challenges utilizing evidence-based strategies. The child-based learning, on the other hand, is an approach where teachers use different models of childhood to meet the needs of learners within a given age bracket. This differs from progressive education, which, according to Schweisfurth, means “a positive modern alternative to traditional pedagogues”; and fosters contributions of various social movements in promoting social reforms and egalitarianism (2013: 21).

The Liberal Theory

The liberal theory describes education as a learning strategy that empowers learners and prepares them to deal with complex and route life challenges resulting from various social dynamics such as diversity and economic and political developments. As per Scott (2014: 1), the liberal theory of education accomplishes this by helping learners develop a sense of social responsibility and encouraging them to not only develop important life skills such as communication, scientific research, and problem-solving skills but also apply them in resolving real-world problems. By doing this, the liberal theory prepares students to be responsible global citizens, register better academic performance, and be actively involved in creating a more sustainable global economy. In addition to this, the liberal theory of education enables students to seek clarification on questions they do not understand which as per Scott (2014: 1), will help them develop a more positive perspective on matters threatening global social well-being.

Despite the massive benefit that liberal theory impact on the global education system, there is a need to redesign both general and liberal education programs for students to produce better outcomes at undergraduate levels of study. As per a study conducted by Scott (2014: 1) to investigate the philosophy of liberal education; its structure; the objectives of general education, and how it meets the goals of liberal education and as per the findings, the overdependence of the traditional learning mechanism was identified as one of the primary factor limiting the fulfillment of the objectives of the liberal educations (Scott 2014: 11). This is because traditional learning strategies that do not leverage on the modern technologies such as online learning increase not only the cost of education but also limit social interactions among learners. This negatively impacts students’ sense of diversity, cultural integration, and overall global economic, social, and political perspectives.

The Social Reconstruction Theory

The progressive movement developed the social reconstruction theory of education in the 19th century, a group of American reformers formed in the late 1950s. Based on the movement’s goal to reform government, society, economy, and the global education system, the social construction theory outlines the relationship between democratic governance and education and their role in fostering socioeconomic development. As per the perspective offered by John Dewey between 1859 and 1952, the Pedagogic Creed in 1897, and the School and Society in 1900, democracy means more than a form of government; it is a way of life in human society that must be passed from one generation to another through education.

Over the years, however, philosophers have expressed their conflicting opinions regarding social construction theory. As per Giroux (2006), the role of educators in the struggle for social and economic justice is to help students apply what they learn in class in resolving challenges affecting the global society, especially those threatening democracy. As per McLaren (1988), however, the role of educators is to empower the powerless and provide solutions to problems contributing to social injustice and inequality.

The Social Efficiency Theory

The social efficiency theory was developed between the 1910s and 1920s by social scientists who aimed to create a stable and harmonious conservative society (Giroux 2010: 361). The theory was later advanced by philosophers such as Benjamin Kidd, John Hobson, John Dewey, Lester Ward, and David Snedden. Based on science and technology, the social efficiency theory emphasizes the need for efficiency in all aspects of society, including education, governance, and economic production (Giroux 2010: 362). As far as education is concerned, Green (1990:309) maintains that to foster efficiency in the national education system, there is a need for nations to provide trained administrators, military personnel, and engineers who can promote the dominant national cultures and ideologies of nationhood. As per Klikauer (2015:1104), however, organizations have different sizes and needs as far as skills and knowledge are concerned, and given such, the belief that the performance of all organizations can be optimized by the application of generic management skills and theories is misleading.

Policy Analysis

As per the National Education Policy 2020 document, the government of India aims to create an education system that applies propositions made in several theories of education. As per section 8.6, the Indian Government aims to create an education system that adopts culture, structure, and systems that provide the resources schools, teachers, communities, institutions, and other stakeholders need to build a conducive learning environment (Policy, 2020: 31). To achieve this; the government encourages stakeholder and participants in the Indian education to perform their responsibilities with integrity, commitment, and accountability. From a personal point of view, accountability, integrity, dedication, and proper work ethics are some of the elements presented in the social efficiency ideology.

Per Dryzek and John (2009), the social efficiency ideology aims to identify causes and relationships that can be manipulated through public policy and central and coordinated readership. A national education policy is an example of a tool that policymakers can leverage to achieve social perfection. In addition to this, India’s national education policy incorporates concepts addressed in the social efficiencies theory, such as managerialism, social engineering, and educationalization, all of which form the foundation for better academic performance and efficient management of school resources in the Indian education system as per the social efficiency theory (Giroux 2010: 381). For instance, in section 8.6, the policy requires teachers and administrators to conduct a developmentally oriented assessment of students based on the established academic expectations. In addition, the policy requires teachers to be promoted and their accomplishments assessed based on their performance (Policy, 2020: 32). These are examples of ways of fostering efficiency in a national education system per the social efficiency theory.

Section 8.7 of India’s National Education Policy requires private and public schools to be assessed and accredited using similar criteria, processes, and benchmarks. In addition, all schools will be held to similar standards during a financial audit. This is aimed at protecting parents from arbitrary increases in tuition fees as per the document (Policy, 2020: 32). As per the social construction theory, subjecting both private and public schools to similar standards fosters a positive performance while ensuring equitable access to education for all learners in the Indian education system. Education is the first step to freedom, as per Giroux (2010:177). To foster equality in the Indian education system, the government ensures that all students have the skills they need to compete effectively in the global labor market, irrespective of their socioeconomic backgrounds. In addition to this, section 8.7 of India’s National Education policy emphasizes that education institutions are non-profit entities. As a result, any profit that they make must be reinvested in the education sector (Policy, 2020: 32). As per the human capital theory, reinvesting in education is essential in ensuring that learning institutions have sufficient resources to hire adequate and qualified labor force; construct classes rooms and foster health and safety of students. Per Schultz (1981), investing in education benefits the overall global society through improved health and nutritional outcomes.

The Learner-Centered Theory of Education (L.C.T.) is well applied in India’s National Education Policy 2020. The areas where L.C.T. is satisfyingly used in the document include performance assessment for students, teachers, and education institutions; fees and tuition payment, regulatory framework; health, safety, child rights, and gender equality. In the L.C.T. approaches to education are based on the needs and interests of the learner and as a result, this influence the teaching methods, learning philosophies, beliefs, and motivations that teachers adopt. As per John Dewey, child-centered learning tactics aim to produce thoughtful, critically reflecting, socially and economically active citizens and which can resolve numerous economic challenges facing India.

As far as assessment is concerned, performance in India’s National Education Policy is outcome-oriented. As per section 8.6, the policy recognizes that performance is subject to several external factors, all of which the system prioritizes during promotion and students’ graduation (Policy, 2020: 32). In addition to this, the policy provides multiple sources of feedback and assessment to provide a wider overview of the country’s overall performance. As per Scotland (2008:39), the role of institutions of higher learning as a senior phase of learning is to ensure that an education system best meets the needs of young people. To accomplish this, the Indian National Education Policy provides a learning framework and an assessment system that evaluates performance at different stages of study to ensure that students have qualifications suitable to their needs.

The Plowden Report (1967:9) explains the child’s role in an education system, stating, “at the heart of the educational process lies the child. No advances in policy, no acquisitions of new equipment have their desired effect unless they are in harmony with the nature of the child unless they are fundamentally acceptable to him.” This belief is well reflected in India’s National Education Policy 2020. For instance, the policy put the necessary mechanisms in place to ensure education institutions, both private and public, are accredited; their performance is evaluated, and their financial records audited to ensure learners are not exploited through misinformation or unjust fees and tuition increases (Policy 2020:32). As far performance is concerned, India’s National Education Policy 2020 ensures that student in private and public schools have an equal competitive advantage in the country’s local employment sector. To accomplish this, the document requires all schools to publish public disclosure on their official or SSSA websites. In such disclosures, schools must provide information on the number of classrooms students, the subject taught, the number of teachers, total fees, and their overall student performance in standardized examinations such as S.A.S. and N.A.S. (Policy 2020:32). From a personal point of view, providing such information enable student make more informed choices as far as their professional interests and learning environment are concerned.

Health, safety, child rights, and gender inclusion are among the factors that the Indian Ministry of Education considers in its 2020 National Education Policy 2020; all of which are important elements in a learner-centered education system. As per Scotland (2008:39), an effective national education system should prioritize promoting active social and economic participation, healthy lifestyle, and appreciation of culture, environment, and the world. To accomplish this, the Indian National Education Policy 2020 provides a curriculum and a list of regulations governing accreditation, governance, and student health and safety. As per the document, for instance, the government pays attention to students’ health, safety, and rights, particularly girls, and numerous challenges that students face, such as drug and substance abuse, discrimination, harassment, and violence. To address this, the government establishes efficient mechanisms for reporting such concerns, and they are well known to all students (Policy 2020:33).

Dominant Theories in India’s National Education Policy

Human capital and learner-centered are the dominant ideologies in India’s National Education Policy 2020, as they are captured in most sections of the policy. For instance, prepositions made in the human capital theory are the foundation of promotions, performance evaluation, reinvestment of proceeds realized by private and public schools, and accreditation, among other aspects of the Indian education system. In addition, the policy identifies students’ performance as the primary measure of return on the government’s investment in education. This confirms the relevancy of Woodhall’s (2001: 6952) statement identifying the government’s investment in education as a representation of its commitment to expanding a nation’s human capital.

The application of the learner-centered theory is most dominant in sections 8.6; 8.7; 8.8; 8.9; 8.10, and 8.11. These are the sections that define culture, structures and distinctive features of the country’s education system; roles and responsibilities of teachers; school administration and other stakeholder; established performance assessment and reporting systems; health, safety, gender inclusion and preservation of students’ rights; certification; work ethics; promotion of staff and requirements that students need to meet to advance from one academic level to another (Policy, 2020:32).

Political, Social and Economic Factors Influencing India’s Adoption Of 2020 National Education Policy

The Indian Ministry of Education; the body responsible for the development, implementation, and evaluation of the country’s National Education Policy, aims to accomplish a number of social, economic, and administrative objectives through the proposed curriculum. As far as the economy is concerned, the curriculum aims to ensure India produces sufficient and qualified and globally competitive workforce; promote efficient utilization of education resources, foster professionalism and collaboration among teachers, parents, students, school administrators, and other stakeholders. As far as learning is concerned, the ministry intends to establish a strong foundation of learning from childhood, high school, college, university and professional levels. This is made to ensure that India’s workforce adopts to current changes in the global labor market.

Access to healthcare, poverty, illiteracy, pollution, disease and infections, high cost of education and gender disparity are some of the leading social concerned that the ministry of education aims to resolve through the recently adopted national education policy. For instance, as per a study conducted by Mangla (2022:95), findings revealed the government’s failure to offer sustainable solutions to problems affecting households and bureaucracy were identified as major barriers to social reform in India. In addition to this, the unemployment rate in India increased from 5.27% to 8% from 2019 to 2020 (Urban, 2023). As per a survey conducted by the National Statistical Office (N.S.O.), about 12.6% of school dropout in India, about 19.8% and 17.5% of them discontinued education at secondary and primary levels respectively (Walia, 2020). from a personal point of view, therefore, high school dropout rates, the rising unemployment rates, change in technology and demand for sufficient and qualified human capital, and other social and economic concerns facing India are the primary factors influencing the adoption of the 2020 National Education Policy.

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