Economy: Unemployment and Higher Caste Essay

Submitted By logant1990
Words: 1427
Pages: 6

One significant word that seems to be missing from the majority of debate and discussion topics regarding current economic issues these days is the word “employment”. Unemployment has become a major economic issue in India. With many losing their jobs, and many not given the opportunity to obtain a job, India’s unemployment rate had increases to 7.8 %( 2006 est.). With 1,129,866,154 (July 2007 est.) people living in India, 25% are below the poverty line. As apposed to Canada, unemployment rates have decreased to 6.4% (2006 est.) with 15.9% in poverty. A challenge that South Asia faces with employment is, the amount of people in the area and those who are in the working age group. “South Asia is a hugely populated … 60 per cent of whom are in the working-age group” (Shehazd, 2004). It also becomes very difficult for countries with those given less opportunity to gain knowledge, a lack of education. Various numbers of jobs require a higher level of education to ensure many requirements and concerns such as safety in a workplace, as well as beneficial circumstances in saving resources. “one-third of South Asia is in poverty; and, about half of the population — in four large countries — is illiterate.”(Shehazd, 2004). India consists of a large population, it may come to mind that those whom may be unemployed should resort to jobs in the agriculture field, but the main problem towards this commitment is the lack of investment and low productivity dedicated to agriculture since the Green Revolution. “agriculture is the predominant employer, …investment and low productivity since the Green Revolution during the 1960s” (Shehazd, 2004). In order to improve employment rates in India, necessary actions need to be implemented which comprise of attracting foreign businesses, opening new manufacturing plants, and eliminating cultural barriers.
One way to increase employment rates is to attract foreign businesses through tax breaks, job training, and through permits and agreements. International businesses prefer to have business trade relations with countries that offer a lower tax rate or no tax rate at all. Through tax breaks, businesses should be more attracted to a country because of trade agreements and fewer expenses incurred. When a country sees that there are no taxes on trades, companies will export and import more. Therefore, attracting businesses to do trades with a country, allowing job slots to be open and created, giving people more of an opportunity to acquire a job. “To help lower Florida's unemployment rate the state government has initiated several incentives to attract businesses to Florida that will create jobs for citizens. One is a tax break.” (Hayes, 2002). Experience and training in professions attract businesses, with greater knowledge of jobs, international businesses deploy into the country and hire experience and trained workers. With the job training workers receive, businesses are run much more productively than with workers with less experience. “The Quick Response Training Incentive is "a customer-driven …existing Florida businesses with necessary training for expansion."” (Hayes, 2002). Sometimes countries make it difficult for foreign businesses to enter their country so that local companies can prosper. But when companies have high unemployment rates, the opposite may occur. In order to increase the employment rate, the country may allow foreign countries to expand into their own. This can be made possible through permits and agreements, defined as grants of rights, allowing businesses to set up their company in a specific location. “Another attempt to help entrepreneurs and bring business to Florida is the Streamlined Permitting and Regulations Plan.” (Hayes, 2002). “Florida created this plan to assist businesses in obtaining necessary permits and paperwork in a timely fashion.” (Hayes, 2002). These methods/incentives were initiated by Florida because the U.S economy had subsided. These can also…