LARGE SCALE PRODUCTION

Human resource is one of the active Factors of productions. It is the only factor that can utilize land capital, organization and other inputs in line with the production of economic goods and services. As a most sensitive and leading factors, it can produce large quantity of basic or consumer goods, capital goods, luxury gods and other scientific goods which are essential for a society. Human resource is also known as human capital because one cannot produce any goods and services without the aid of human resource.

DEVLOPMENT OF MANAGERIAL CAPACITY

Managerial capacity refers to the skill of using various types of resource of factors of the productions through an organized channel. Development of managerial capacity is essential for the betterment of human life. The process of managerial capacity development helps to transfer the knowledge gained by of generation to other for the further development of human life. Development of managerial capacity leads one towards innovation of new technique in productions, new marketing strategy in distribution and efficient method in exchange of goods and services in domestic and international market .since human resource is the only sensitive and active factor of the productions, it is most essential to develop managerial capacity, skills and knowledge of human resource itself.

EXPENDITURE PATTERN

In Nepal, the majority of poor spend more than 70 percent of their income in consumption expenditure. They spend almost all of their income on food in order to survive. Sometimes they consume more than what their income is. They are unaware of nutritional value of their foods and suffer from malnutrition and different kinds of diseases. The distribution of food consumption is always in favor of male and income earners. This is true for both rural and urban areas.

DEMOGRAFIC PATTERN

There exists large family among booth rural and urban poor. Children are regarded as the sources of earning poor people often lack access to modern family planning services. The percentage of depended population is high and child labor is common. Women are badly explode in terms of health, education and labor participation.

PERSONAL INCOME

Personal income the total money received by individuals and household of a country from all possible sources before direct taxes. The factor of production does not the whole amount of national income. Corporate income fax should be paid to the government from corporate profile .This is not available to the shareholders and therefore it does not constitute personal income. Some part of the corporate profile is kept undistributed or retained by the business units. Similarly, the salaried person should keep some part of their salaries in the form of provident fund, pension and social security contribution. These amounts should also be deducted from national income because they are not available to the individual. At the same time, government provides transfer payment in the form of unemployment allowance, old age allowance, interest on public debt. These amounts personal income but are not a part of the national income.

GENERAL POVERTY

Development countries are poor. By defined GDP and per capita income are at low level general living standard of people in these countries is very low. Poverty is visibly disturbing every aspect of life. Children are half fed and half clad and their under nourished bodies are disease prone. These big belly children have less chances of surviving up to 5 years of age both infant and child mortality rate is very high. General health services for people are insignificant. The life expectancy at birth does not exceed 60 years. Most of the children have no schooling .Adult illiteracy rate is very high in most cases exceeding 60 percent. Labors quality it very low. They have fewer chance of employment they engage in low paying jobs. Their income is low and they live a sub standard life no recreation and no modern facilities a majority of people in developing countries are born in poverty.

HIGH DEPANDENCE ON AGRICULTURE

Agriculture is the main occupation in developing countries. More than 70 percent of active labor force is engaged in the primary sector. Population increases and the increased about stick to agriculture thereby over burdening the farm size. There is low output per head fragmented patches of smallholding do not allow modem scientific techniques is farming. There is a high ravage of nature in traditional agriculture, which minimizes the production volume. Still the contribution of agriculture sector to GDP is significantly high in these countries. Thus, agriculture has been many stay of the economic.

UNDERUTILISED NATURAL RESOURCES

Most of the developing countries are rich in natural resources However, their exploration and exploitation is limited. Sometimes foreign companies control them. Generally, raw products are exported at low price. These countries lack suitable technology and work force to make the resources more productive and profitable. They earn less from bountiful nature Take the case of Nepal; it’s the second largest country in hydropower resources resource in Asia. Laos is rich in timber wood. Argentina abounds in wheat and meat produce. Nevertheless, harnessing the benefits from these resources on their own is highly skewed. Because of the underutilization of available of resources, these countries are poor.

CULTURAL EXCHANGE

Tourism industry facilitates culture exchange. As culture ambassadors, tourists carry over various culture concepts of other countries where they visit. In this way, interaction among people of different countries helps to widen their horizon. People get opportunity to learn each other’s art culture, custom, and language. This cultural exchange helps change the lifestyle of the people and also helps bring about change in superstitions and traditional thinking.

BASIC OF TERTIARY SECTOR DEVELOPMENT

Transport and communication is an integral part of tertiary sector helping to promote trade and commerce in financial activities plays and effective role in the economic development of a country. The development of tertiary sector like trade, commerce, banking insurance, transport, communication, education and health is essential for the economic development of the country.

HUMAN DEVLOPMENT AND WOMEN ENPOWERMENT

To get the benefits of opportunities generated by the increment in sustainable national production and productivity, it is observed that due priority should be given to given to human resource development. In view of the existing violence against women and other problems due to the gender discrimination, the development capacity is to be urgently promoted. To achieve this goal their participation in decision marketing process via empowerment and their access to means and resources would be increased. Poverty alleviation task will be strengthened with economic and social development of women. Programs related with women would be reflected appropriately in the concerned agencies.

MARKET EXPANSION

Market expansion is also prerequisite of economic development. The development transport and communication facilities help to transfer goods and services from on place to another advanced and developed transport and communication system helps to expand the marketing activities within well as outside the country. A term used trade area analysis to estimate an area's potential for the creating new demand. Market extension a strategies In the middle a part of Growth stage the objective is to be continue a Market Expansion strategy, including seeking out new market a segments that have not been targeted. This stage is also a time to focus on product positioning.

ECONOMIC DEVLOPMENT

The concept of economic developments change along with change in human attitudes behavior and activities. The definition given in a specified period may the term economic development is far more comprehensive. It implies progressive changes in the socio-economic structure of a country. Viewed in this way economic development Involves a steady decline in agricultural shares in GNP and continuous increase in shares industries, trade banking construction and services. Further be whereas economic growth merely refers to rise in an output; development implies change in technological and institutional organization of production as well as in distributive pattern of income. Hence, compared to the objective of development, economic growth is easy realized. By a larger mobilization of resources and raising their productivity, output level can be raised. The process of development is far more extensive. Apart from output, it involves changes composition of output, shift in the allocation not be suitable for another period. Hens it is a dynamic subject of study. Economic development in the was linked with human resource development recently of productive resources, and elimination or reduction of poverty, inequalities and unemployment.

ECONOMICS AS A SOCIAL SCIENCE

Economics studies human activities and behaviors in relation to wealth. it also studies alternative uses of resources to meet human wants. Since economics laws and rules are derived on the basis of human behaviors, they are subject to change along with change in human activities and their behaviors. Every human activity is carried out in human society. Human beings are the most and first important factor of society. Therefore, economics is directly or indirectly a social science. Economics guides human being in making decisions on what to produce, how to produce, how much to produce and for whom to produce. Production of many types of goods lies within the scope of economics.Production of various types of goods in most essential to those who live in there society. The process of marketing, publicity, exchange and consumption are also the parts of social action. Therefore, economics has become on the integral parts of human society.

MACROECONOMICS

As discussed above macroeconomics studies and analyzes the behaviors of the economic system in totality. It is concerned with the some total of economics activities of the whole economics organism .That is why macroeconomics is also called aggregative economics. It deals with the economics wide aggregates like total consumption, total consumption, total investment, total employment, general price level etc and analyzes their interrelationship. Basically, macroeconomics comprises of theories that study and explain about the aggregates of the economy, national level economic problems and policies aimed at solving those problems. The analysis of income and employment, general price level ,economic growth and income distribution are the constituents of macroeconomics theory .The trade cycle ,inflation, unemployment and low rate of economics growth constitutes macroeconomic problems and monetary policy and fiscal policy are macroeconomics polices of the government to solve macroeconomic problems

CONCEPT

Scarcity and choice are basic problems in economics. this concept was introduced by proof. Lionel the effects of unlimited human wants and supply of limited resources create the problems of scarcity in human society. The quantity supplied of economic resource such as water .forest and mineral resources, human resources and physical resources is very limited in compassion of their demand. But the quantity supplied of no economic resource such as sunlight, air, water is unlimited to us. Therefore economics is such a subject which aims to utilize scarce resources in a scientific way, so that human being can achieve maximum satisfaction from the use of limited economic resources. The problems scarcity is present is present not only in development nations but also in highly developed nations. So long as human wants are more then the supply of resource, the scarcity problems world not is shoved from human society. The nature of scarcity change along with change in living standard and life system of human being. The problems of scarcity can be minimized and the satisfaction from good and service can be maximized by judicious use of available resource. It can be achieved through the scientific study and decision making on what do produce, how to produce, how much to produce and whom to produce to produce the good and services in an economy.

CHOICE

The optimization objective of the economic actors necessitates making knowledgeable choice in the use of available the use of available resource. Choice is involved in economic activates at both consumption and production levels. It also cancers individual and the state the problems of choice being with an individuals liking of how mush time he would allot for work and how much fore leisure. The more time he earns. On the income earned, the choice is between how much to consume now and much to save for the future. Choice in consumption men’s what to by food or clothes, sweets or toys or combustion of both in limited quantities, we discussed about scarcity and choice above. The terms will be repeatedly used in the following sections. The meaning of scarcity in relation to the nature of good that always command value and the relatively limited of resources . Similarly, there is always a problem of choice because of resources and their alternative uses. Let us now turn to allocation of resources.

ECONOMICS

Economists and scholars are divided on the issue of whether economics is a science or an art. However, a conclusion can be drawn about it by considering the meaning of science and art and what economics actually does. Science is defined as a systematic and comprehensive body of knowledge. It seeks to establish cause and affect relationship .generally, scientific 1. Studies are a systematic body of knowledge 2. Studies establish cause and effect relationship, laws with universal application ,and 3. laws are derived from experiments On the other hand, art is concerned with the solution to practical problems it teacher to solve practical problems on the basic of the above discussion ,it can be said the some theories of economics are scientific laws, establish cause and effect relationship .for example, the law of demand states that the quantity demanded of a commodity varies inversely with its price .A change is market prices leads to change in quantity demanded ,Here, a change in price is the cause and the change in quantity demanded is the effect. We can observe them through practical experiment. Similarly, the law of diminishing marginal Utility, law of supply, the law of returns to scale is based on cause and effect relationship. These laws are universally accepted and they are derived from experiments .considered thus, economic is a science as any other science .the economic laws as other scientific laws are hypothetical and conditional .They are always stated in it. It means ,if the assumptions hold then certain result will follow .the controversy as the to whether economics is a science or an art ended with Marshall’s saying that economic laws are merely statements of tendencies .
They are highly conditional .all the conditions and qualifications are covered by the phrase ceteris paribus or ‘ other thing remaining the same ‘ Therefore , economics is not only a science ,but also an art pious and other economists accepted economics an art . Art means creation of new thing from human mind. Basically, creation, of new plans, policies and programs is highly essential in analyzing the issues of economics such as poverty alleviation, inequality reduction, and population correction over regional imbalance and so on. Problems related to poverty, inequality, population growth can be solved not by scientific Formula but by preparation and effective implementation of plants and policy related of those issues. The success of much economic plants and policies rests upon skills, experience, knowledge and efficiency which are known as the subjects of arts .Therefore, economics is regarded as science as well as art.

ECONOMICAL

Perfect Melancholies by nature cannot be wasteful; any they love to get a bargain. Fred cuts the money saving coupons out the paper neatly with scissors and saves them for the right moment. If I do it at all, I rip them out and arrive in the store with these odd, shaggy papers Fred’s moment in life is when he has a coupon worth a dollar of on a pound of coffee, and the supermarket has Double coupon days. Once there was also a double coupon in the can, and he was euphoric at actually being paid thirty-seven cents to drink the coffee. Popular sanguine never send those rebate coupons in, but perfect Melancholies make sure they get everything they deserve.Fred not only shops for bargains, but he checks he trash to make sure i don’t throw anything of value. He will decide a mayonnaise jar could be useful if I’d wash it, that the bananas I’ve tossed would be just in banana bread; and that there are still a few gods sweeps in the old broom. If I want to make sure he doesn’t scrounge something up, I have to take it next door and hide it in the neighbor’s trash.One perfect Melancholy lady I know puts every little leftover in a plastic container in the refrigerator. She writes on the top the name of the item and the date she put it away. She puts today’s entry in the back, pushing the other jars to the front. This way she eats the leftovers in order, and nothing ever goes to waste.

WHAT TO PRODUCE

The first concern is related with, what to produce? , how much to produce? because resources are scarce, production off all needed by a society are beybond its capacity. it all simplly not posible for any economy no mater how developed it might be. So, it has to select a set among various alternatives. Productions must meet the maximium social need. The first priority goes to basic needs. However, production is guided by profit and profit knows no social knows any social justice. An economy should follow social efficiency while reallocating resources. The social norms and values should guide to maximize social satisfaction. So alloccation in best which satisfies the most .The problems of what to produce and how much to product depends on the citizens of the country.

MAINTAIN ECONOMIC STABLILITY

Economic stability refers to stable price structure, desired amount of saving and investment absence of stock and shortage of goods. These are necessary conditions for rapid and sustainable economic development of a national. Frequent change in trade, commerce and industry discourages entrepreneurs to invest in produce any types of goods and services. It also discourages foreign capital investment in the country. In order to maintain economic stability, a government adopts concretionary fiscal policy. the policy that increases tax rates and other duties to discourage more productions. During the period of over-production and expansionary fiscal policy. The policy that reduces tax rates and removes those duties to encourage more productions. During the period of underproduction. Therefore public finance is the first and most effective tool to control fluctuations in the economic activity of the country.

ENVIRONMENT NATURAL RESOURCE MANAGMENT

Environment is such a concept which includes each and every aspect of the surroundings comprising living and non-living thing. It the conditions, circumstances andsurroundings of an organism or group of organisms present in the world. There are two aspectsof environment. Artificial environment refers to those things, which are made by human being to fulfill their wants or needs. Establishment of social, economic, religious, political, commercial infrastructures is the example of artificial environment. Whereas natural environment refers to the free gifts of nature like air, light, land, water etc. The natural resources are also classified into renewable and non-renewable resources. The environment around us being polluted due to rapid population growth, deforestation, defective government policy, lack of knowledge about reutilization of resource and lack of public awareness about is significance. Growing environmental population has affected public has affected public life so badly. There have been several consequences such as water population, air pollution, sound pollution, atmospheric change, loss bio-diversity and growing natural calamities. The possible remedial measures to check the growing environment pollution would be the check over rapid population growth, increase in public awareness, and introduction of recycling technology, application of effective environmental policy.

HUMAN RESOURCES

Common people think that there is no difference no difference between human resources and human being. But from demographic and economic points of view, there is a vast difference between them.It stated that very human resources are a part of human being, but every human being cannot a part of human resource. Human resource, in demography, is defined as the total population of a country which is above 14 years and blew 64 years of age in a particular unit of time. In the literature of economics, human resource is defined as a unit of active manpower or labor force of the page above 14 years add below 64 years, having high level of education, skill ,knowledge, long experience, healthy physical condition and ration mental condition. In addition, active human resources are composed of those people who have the ability and willingness to work with high efficiency and productivity to produce goods and services.

SOCIO-ECONOMIC REFROM

In the economic sense, citizens of below 14 years age above 64 years of age are supposed to be dependent. They need support and security of active members or the family who comprise active human resource. Therefore, etc, have to be eradicated, which is possible only by the efforts of progressive human resources. human resource is the agent of any society who can change social and economic status of a nation. It can remove social as well as economic maladies that dominate human values and norms .social maladies such as early marriage, polygamy, slavery,Similarly, the economic maladies such as income inequality, poverty unemployment, brain drain, frustration have to be alleviated and it is possible through the focused effort of active human resources only.

POPULATION EDUCATION

Lack of awareness of the advantages of small family size, late marriage and birth spacing is another important reason for rapid population growth. This problem can be solved by implementing population education and importing awareness programs to all married couples and other members of the family. Therefore, the government as well as non government organizations should introduce population education as a compulsory subject in school and college education. In addition, there should be provision of adult literacy classes, informal education, system and distance learning provisions in the country.

ASSETS

Poor people usually as well as income in both rural as well as in urban areas. In rural areas they own small percent of unproductive land with irrigation and other physical facilities. The lack income and access to credit and unable to improve their land productivity. They may have a couple of domestic animals and poultry to make a little source of income. The asset of the poor is just their physical power, which has to be used to earn daily wages for their subsistence. Because of the lack of access to human capital (such as education, health, food with nutrition) their bargaining power is very weak, so they are compelled to work at low wage rates.

PARTICIPATORY DEVELOPMENT ACTIVITIES

People should be involved from the very beginning in development activities of the local area so that they take care of the development infrastructures in their management and maintenance. Involvement of local beneficiaries in development activities will create a sense of ownership of the built infrastructure apart from giving local employment in off-harvesting period. The government has been launching Food for work program in the food deficit areas in order to help the local people so that they get employment and in return get food as payment for work done. This way the poorer people get employment and in food deficit areas.

OBJECTIVES OF PUBLIC ENTERPRISES

In any economy, the purpose of establishing a public enterprise has its own economic political and social objectives. In of developing countries like Nepal, the objectives of establishing public enterprise are:
1. TO achieve economic development in balanced and organized manner by providing basic infrastructures 2. To distribute consumption goods in reasonable price by improving its quality. 3. To establish large and non-profit oriented organization which are beyond the capacity of private sectors. 4. To help generate national revenue. 5. To earn foreign exchange. 6. To generate the employment opportunities 7. To obtain economic, political and social objectives of the nation by mobilizing available capital and labor resources. 8. To correct unfavorable balance of payments by import substitution and export promotion.