Audio-Lecture Series for Sem-4 B Audio-Lecture Series for Sem-4 B.Com Economics (New L J Commerce College)

Q. Explain the Difference Between Economic Growth & Economic Development 1. EG means a continuous increase in National and PCI of the country 1. ED means an overall improvement in the standard of living of the people 2. It is a Quantitative Concept 2. Its Qualitative besides being Quantitative 3. It is a natural process 3. It required institutional intervention 4. It is possible without Economic Development 4. It is not possible without Economic Growth 5. Developed countries strive for Economic Growth 5. Under-developed countries aim at Economic Development

Q. Write a note on PQLI PQLI means Physical Quality of Life Index The concept of PQLI was given by an economist called Morris D Morris PQLI is an indicator of economic development It considers three parameters: Life Expectancy, Adult Literacy Rate and Infant Mortality Rate. The country in which LE and ALR are high whereas IMR is low will be considered relatively more developed. The physical quality of life of the people would be considered better. The country in which LE and ALR are low whereas IMR is high will be considered relatively less-developed. The physical quality of life of the people would be considered poor. The limitation of this indicator is that all the parameters considered under it are non-economic. It doesn’t consider any economic indicator like PCI.

Q. Write a note on HDI HDI means Human Development Index The concept was developed by UNDP HDI is an indicator of country’s human development It considers three parameters viz. Life Expectancy, Literacy and Education & PCI. The country in which the life expectancy, literacy-education and PCI are high, the human development will be considered high. The country in which the life expectancy, literacy-education and PCI are low, the human development will be considered less. The HDI lies between 0 to 1. Closer it is to 0, lower is the human development. Closer it is to 1, higher is the human development The strength of HDI is that it considers both non-economic as well as economic indicators.

Write a Note on Kyoto Protocol A conference was conducted at Kyoto, Japan in 1994 for protecting the environment. However, the Kyoto protocol actually came into force in 2005. The main objective of Kyoto Protocol was to reduce the emission of Green House Gases by 5% as compared to what they were in 1990. The targets for reducing the GHG emissions were given only to industrialized countries and not the under-developed countries. Some industrialized countries were given a target of more than 5% reduction whereas others were given the target of less than 5%. The target was to be achieved by the year 2012. There were two flexibility mechanisms under Kyoto Protocol: Sinking: Carbon Credit Trading:

What is Sinking? Sinking is a part of flexibility mechanism under Kyoto Protocol Some activities like plantation of trees and soil conservation which reduce CO2 from atmosphere, can be taken up by the countries which miss their targets under Kyoto Protocol. A country can compensate for its emission by planting trees or by soil conservation on its own territories or they can pay to other countries for undertaking these activities on their territories. This is known as sinking.

What is Carbon Credit Trading? Kyoto Protocol allows member countries to buy and sell agreed allowances of green house gas emissions. Countries which emit more than their target can buy unused credits from those countries which have reduced pollution more than their target. At micro level, a company can increase its emissions by buying carbon credits from another company which pollutes less. This is known as carbon credit trading. In this process, the buyer pays a charge for polluting while the seller gets reward for reducing its emission.

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