National seminar on Self Employment-Government Policy: Future Challenges (SES)

Venue: Nizam College,

Location: Hyderabad, Andhra Pradesh, India

Event Date/Time: Jul 27, 2004 End Date/Time: Jul 28, 2004
Registration Date: Jun 15, 2004
Early Registration Date: May 15, 2004
Abstract Submission Date: Jun 15, 2004
Paper Submission Date: Jun 15, 2004
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ON 5-6 MARCH 2004
Seminar Director

Indian economy has been facing challenges with regard to unemployment and economic growth. By and large, unemployment in India is structural in organised sector. During the past five decades, population of India has grown at an alarming rate of around 2.2 per cent per annum, whereas employment opportunities have not been increased correspondingly due to slow economic growth. However, the removal of unemployment has been a proclaimed objective of Indian economic plans. The problem of unemployment is perceived to be conflicting with the economic growth. Though with degrees of difference, every Five-Year Plan focused its attention on the removal of unemployment.

Employment generation to meet the backlog of the unemployed sections and new additions to the labour force is a challenging task. The increasing diversification of the economy together with acceleration in economic growth causes structural changes in the nature of the job market. Higher economic growth, in the recent past has been more capital intensive and it may have resulted in low labour employment intensity. The pattern of economic growth in the capitalistic countries is causing an increase in poverty among the working population. The rapid technological orientation is widely regarded as a primary cause of unemployment.

For the first time, the Sixth Five Year Plan (1978-83) focused its attention on the removal of unemployment with the objective of “the achievement of near full employment”. Similarly, in the approach paper to the Tenth Five year plan, which was approved by the NDC in September 2001, prescribed the provision of gainful high-quality employment, an addition to the labour force over the Tenth Five Plan period. A subsequent assessment of unemployment situation in the base year of the Tenth Plan 2002 showed that to clear the backlog of unemployment, 35 million employment opportunities are to be created. The Tenth Five Year Plan, however, aims at the provision of gainful employment to excess of the addition to the labour force. So, this thrust has been continued in the Tenth Five Year Plan. Moreover, during the Tenth Five Year Plan, the labour force growth is envisaged to reach a peak level of 2.42 per cent per annum the highest so far in all plan periods. Job opportunities have to be created for 45.56 million persons during 2002-07 and thereafter for 55 million during 2007-12 years in the subsequent Plans. To fulfill the objective of the Tenth Five Year Plan, the Planning Commission was constituted of a special group for creation of 10 million employment opportunities a year in the Tenth Plan.

*Associate Professor, Department of Commerce, (O.U, Nizam College, Hyderabad-1.

Furthermore, a close study of the Ninth Five Year Plan reveals that the full employment situation (i.e. employment to every eligible citizen) in India has not been achieved so far and is doubtful in the Tenth Five Year plan also. This fact reflects the inconsistencies at the top level with regard to the policies of employment and economic growth. However, the most alarming form of unemployment today is educated unemployment. Its prevalence is omnipresent, because rural as well as urban sector is facing the drain in resources. The educated unemployed represent the intellectual section of the society, and their frustration and discontentment may result in political instability as well as an atmosphere of pessimism and loss of confidence in the government.

The proponents of the structural adjustment programme have been arguing that as a result of liberalisation, privatisation and globalisation, there shall be an increase in unemployment in the short period, but the economy picks up as a consequence of the higher doses of foreign direct investment, and also increase in domestic investment in the private sector. Employment elasticity will improve in the coming years. But, given the de-emphasis on public sector and increased capital intensity in the private corporate sector, there is no likelihood of acceleration in the growth of employment. The employment elasticity of the corporate sector has slumped to a level of 0.19 per cent. It may also be noted that the share of the corporate sector in the total employment is very small. Consequently, even if the GDP growth rate starts improving, the unemployment problem would continue to be a serious problem even by the end of the 21-century. It is expected that the ongoing economic reforms with emphasis on private participation in the growth process and the expansion of investments and production would give a fillip to the growth of employment in the medium term. And changes made in Export-Import policy 2001-2002 in the lifting of Quantitative Restrictions (QRs) on 715 tariff items under the scheme of import quota adversely affect the existence of the domestic Small Scale Industries and lead to a slow death of Indian agricultural sector.

Further, the Government policies are causing a devastating effect on unemployment, as the Government ownership in many public sector enterprises is expected to decline to a minority share holding in the near future by the disinvestments process. And, the World Bank and IMF (ICFTU background paper-2002) are promoting privatization as the panacea for the development. They recently started to recognize the detrimental impact on privatization of workers. Which leads to Job losses, reduction in compensation, the increase in the hours of work in week form 35 hours to 40 hours and more stringent work conditions. Moreover, with the WTO agreement, the Small Scale Industries (SSIs) will be gradually wiped out and it would lead to further unemployment, which means that no creation of new jobs and the existing ones get abolished.

While the economic policies of the country continued to undergo changes in the form of shifting the focus from economic growth to employment or vice-versa in accordance with the changing needs of the society over a period of time, the mounting pressure of unemployment compelled the governments to undertake Special Employment Programmes under different heads. These special employment programmes are mostly supplementary to the main Five-Year Plans. The significant among them are Food For Work programme (FFW) undertaken in the year 1977, with the main objective of providing man days of work; Self Employment for Educated Unemployed Youth (SEEUY) in the year 1983 with the main objective of encouraging the educated unemployed youth to undertake self-employment ventures in Industry, Service and Business sectors using the provision of financial packages; National Rural Employment Programme (NREP) of 1988 with the objective of providing employment to the rural people; Rural Landless Employment Guarantee Programme (RLEGP) of 1983 with the aim of providing employment guarantee to the landless agricultural labour in rural areas and Integrated Rural Development Programme (IRDP) of 1980 with the objective of providing financial assistance to the weaker sections. Having introduced the New Economic Policy 1991, the Government introduced the Prime Minister Rozgar Yojana (PMRY) Scheme on October 2, 1993 with new strategies and subsumed the SEEUY scheme into PMRY scheme from 1994-95 onwards.

As a result of restructuring Indian economy, the IRDP and allied programmes including Million Wells Scheme (MWS) started a single self-employment programme called Swarna Jayanti Gram Swarozgar Yojana (SJGSY) in the year 1999, which aims at promoting micro enterprises and helping the rural poor to form into Self- Help Groups. Further, Jawahar Gram Samridhi Yojana (JGSY) was introduced in the year 1999 as a successor to Jawahar Rozgar Yojana (JRY) with the main objective of creation of durable productive community assets. Inaddition, to generate incremental employment over Tenth Plan, Rural Employment Generation Programme (REGP-KVIC), and Pradhan Mantri Gram Sadak Yojana (PMGSY) has been introduced.

Following are the main objectives of the National Seminar on Government Policy For Promoting Self Employment In India:
1. To study the role of World Bank, WTO and IMF on employment in India.
2. To study the impact of Globalisation on employment in India.
3. To study incidence of unemployment among young people in India.
4. To discuss the Government Strategies and Policies towards Employment generation in India.
5. To study the recent Trends in Employment and Unemployment situation in India.
6. To review the sector-wise policy initiatives for opening up new employment opportunities.
7. To review the quality of education and employability of the Educated.
8. Evaluation of such Self Employment Scheme: Food For Work programme (FFW), Rural Landless Employment Guarantee Programme (RLEGP), Self Employment for Educated Unemployed Youth (SEEUY), Integrated Rural Development Programme (IRDP), Development of Women and Children in rural Areas (DWCRA), Swarna Jayanti Gram Swarozgar Yojana (SJGSY), Jawahar Gram Samridhi Yojana (JGSY), Rural Employment Generation Programme (REGP-KVIC, Pradhan Mantri Gram Sadak Yojana (PMGSY) and Prime Minister Rozgar Yojana etc.

9. To evaluate the Self Employment Schemes of Andhra Pradesh such as: Chief Minister’s programme for Empowerment of Youth (CMEY), Aradhana, Deepam, Janmaboomi, Rythu Bazaars, Mundadugu, Chaitanyam, Cheyutha, Roshni,Apathbandhu and Self-help groups.

Policy makers
Bankers ( including private bankers)
District Industrial Centers Officials (DICs)
Industrial Promoting Officials (IPOs)
Academicians- Teachers from different parts of India and researchers.
Unemployed Youth and Students

Technical Session I: Government Policy with respect to the Promotion of Employment/ Self-Employment in India.
Technical Session II: Role of WTO, IMF in employment in India and Privatisation –
Employment situation in India
Technical Session III: Poverty Alleviation through Self Employment Schemes
Technical Session IV: Evaluation of Employment and Self-Employment Schemes.


Andhra Pradesh

Additional Information

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