Artha-Saksharta

Dr. Deshpande (centre) being felicitated by Dr. Desai (left) as Dr. PRakash Salvi looks on (right).

On 15^th December, the University of Mumbai and Economica (the Department of Economics at Ruparel) organized a talk on Artha Saksharta (Economic Literacy) with Dr.  Chandrahas Deshpande  (Ex-Director, MC) as a part of the celebration of 168^th year of the University of Mumbai.

                

The program was organized by Sharanya Pillai.  Members volunteered as photographers, videographers, to get the bouquet, for setting up the whole room, for board decoration and publicity. The program received an enthusiastic response from students.

                

The program started with little introduction of the chief guest and his felicitation with a bouquet of flowers. He then started his speech. First of all, he explained the concept of economic literacy by providing a brief canvas for understanding it i.e., ‘world - its transformation into the Global Village – world and environment around us – its economic and social aspects – every person’s relation with economics in different ways – country’s budget – it’s effects on day-to-day life, etc.’

                

Then he talked about the two reasons due to which common people took interest in the budget:

1) What is going to happen to prices?
2) What is going to happen to Income Tax Liability?

He also spoke at length about the 3 types of happenings viz., social, political and economic and their 3 features– Dynamism, Uncertainty and Complexity.  He also talked about concepts like GDP Growth, Employment Rate, Investment Rate, etc. which affects decisions of the RBI Governor.

                

Then the talk turned towards how people perceive economic policies and how economic literacy will make people more realistic. According to him, whether the effects of economic policies will be good or bad cannot be decided by a layman because he/she would see it from his/her own perspective. But, with growing economic literacy people will realize that it is wrong to declare any economic decision good or bad without waiting for its implementation, future implications, analysis, knowledge, argumentation and information.

                

After this he talked about the ways in which economic literacy can be spread. According to him economic literacy is an important instrument in creating good, wise and aware citizens. Generally, people think management, investment, commerce, finance and economics are one and the same thing. However, though they are inter-related, they are different from each other. Being able to understand this difference at various levels is an important part of the economic literacy. Thus, spread of economic literacy must be started by economists themselves. The articles explaining current economic situation of the country or current economic policies whether online, in newspaper or in magazines play an important in creating economic literacy among the masses. Also, people must possess scientific approach and start reading select economic literature to get knowledge about at least some common economic concepts. And they must understand the difference between knowledge and information. 

                

He also talked about things which can be proved as obstacles in the spread of economic literacy. The decisions taken under economic policies have a widespread domino effect. Thus, they need time. However, people do not tend to wait for the results which is harmful for economic literacy. This is because:      

1) Economics is not an experimental subject like physics, chemistry where you can predict results.        

2) Every economic policy affects social, political and other aspects of the society. So, people have to wait till the time results are clear. 

3) The growing tendency among people to think that they know the final result after reading a few articles also threatens true economic literacy.

                

Then he talked about positive and negative relationship of economics with the media and politics, how relations between economics and politics changed after 1991 due to the then economic conditions of India which resulted into the introduction of the New Economic Policy, 1991 and growing economic literacy and concern among the politicians.

                

Lastly, he concluded by saying that in a country like India, one cannot neglect the importance of economic literacy because of its advantages like–       
1) If a society is economically literate then it will prevent politicians from taking decisions which are harmful for the country’s economy.                                                           
2) Economic literacy among masses will help the process of making economic policies more inclusive.    

3) If there is economic literacy then people can understand complexity of economic happenings and they can make more responsible arguments.

                

After this few questions were asked by students regarding the type of economic approach (ancient, neo-classical) taken into account by the governor while deciding economic policies, how the sustainable growth of the country’s economy can be possible, etc. to which he gave very moderate and sophisticated answers which were easily understandable and accepted by the students.

                
The program ended with the vote of thanks.

-Shalaka Sawant