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Society of Social Sciences Puducherry Pondicherry University (A Central University) Puducherry, India SOCIETY OF SOCIAL SCIENCES PUDUCHERRY PONDICHERRY UNIVERSITY (A CENTRAL UNIVERSITY) PUDUCHERRY, INDIA. IRJSS Volume 3 N. International Research Journal ofSocial Sciences Patron Prof. J.A.K. TAREEN Vice-Chancellor Pondicherry University Editor-in-Chief : Prof. T. SUBRAMANYAM NAIDU EDITORIAL COMMITTEE D. Sambandhan K. Rajan G. Ramathirtham IN,.. A. Chellaperumal EDITORIALADVISORY BOARD Lucinda Beach (USA) Hilde K. Link (Germany) Robin Oakley (Canada) Ulrike Niklas (Germany) M.M. Kapoor (India) EA. Musthafa (Egypt) B.M. Sharma (India) Pradip Prabhu (India) C.G. Hussain Khan (India) B.B. Mohanty (India) M.S.N. Reddy (India) M. Ramachandran (India) K. Srinivas (India) K. Chandrasekhara Rao (India) M. Sethuraman (India) Fatma Vasant (India) IRJSS: International Research Journal ofSocial Sciences is a bi-annual Journal of SchoolofSocial Sciences ofthe Pondicherry University. The editorial committee would consider for publication any article dealing with significant themes in social sciences based on original research. Contributors are requested to send their text of the articles for pUblication. Books and journals for reviews as well as other editorial correspondences to Prof. T. Subramanyam Naidu, Editor-in-Chief, International Research Journal of Social Sciences, Society of Social Sciences SOCIB'ft Puducherry, Pondicherry University, Puducherry, India. Tel: 0091-413­ 2654373. E-mail: [email protected]/[email protected]. The text of the article may be computerized in Microsoft Word format following the style sheet provided in this Volume ofthe journal and sent to the Editor. This can also be done through E-mail. However, it is requested that a printout with soft copy may be sent through post. ISSN - 0974 - 1674 Volume 3 Number 2 July - December 2010 INTERNATIONAL RESEARCH JOURNAL OF SOCIAL SCIENCES SOCIETY OF SOCIAL SCIENCES PUDUCHERRY PONDICHERRY UNIVERSITY (A CENTRAL UNIVERSITY) PUDUCHERRY, INDIA. CONTENTS S.No. Articles Page No. 1. Economic Meltdown and its Impact on Global Economy – Kanuparthi Ramanaiah 1-12 2. A Profile of Elderly Women Living in Old Age Homes - A study in Kerala – J. Suhara Beevi 13-32 3. Problems and Prospects of Tribal Participation in Development Programmes - A case study of Jeypore Block in Orissa – Murali Dhar Majhi 33-47 4. Occupational Locking in and and organisational Stress among the part time Contract Teachers working in various degree colleges of Tripura – Deepa Ghosh 49-59 5. Corporate Social Responsibility: An analysis on How a Precept becomes a practice – C. Padmanaba Sivakumar 61-75 – P. Govinda Reddy and – A. Chandrasekaran 6. Deprived among the marginalized - Health Status of Women in a Tribal Settlement – T.S. Anish 77-84 – K. Vjayakumar – Diya Rachel George – Rexshmi Ramachandran and – Tony Lawrence 7. Sexual morbidity, Treatent seeking behaviour and Condom use among the Clients of Sex Workers: Implications for HIV/AIDS Intervention programmes – K.E.T. Rajarama and 85-96 – R.K. Sinha S.No. Articles Page No. 8. Women Corporetars : A study of Gulbarga City Corporation – Nusrat Fatima and 97-108 – Malliakrjun Nagashetty 9. Regional Heterogeneity in Food Consumption and Nutrition intake in India – Shraddha Srivastava 109-123 – Amarnath tripathi and – A.R. Prasad 10. Organic Horticulture: A Micro Study – Nazeerudin 125-133 11. Environmentalism in Indian Anthropology “An Emerging Research Area” – Anjuli Chandra 135-145 12. Food Practices and Food taboos during Pregnancy and Lactation among Tribals of Andhra Pradesh – A. Varadarajan 147-155 13. Universalization of the Elementary Education for all in India: Assessing the progress of Sarva Shiksha Abhiyan Programme in Union Territory of Puducherry - G. Palanisamy 157-173 14. Mothers’ Nutritional status and its Impact on their Children Anemic Condition : A stdy at Tamilnadu – A.K. Ravishankar 175-192 S.No. Articles Page No. 15. ICT Awareness and Teaching Competency of Prospective B.Ed Teachers – F.I. Antony Gracious and 193-203 – P. Annaraja 16. A Study on the Problem of Eve Teasing in India (with Rreference to University of Lucknow) – Anoop. K. Singh and 205-229 – Kirti Vikram Singh 17. Risk Factors of vertical Transmission among Children attending the ICTC BHU Varanasi – T.B. Singh – Ajay Singh and 231-237 – A.K. Gulati 18. Social Discrimination and Harassment against the Kothis (Men who have Sex with Men) in Puducherry - A Qualitative study – A. Kirubakaran and 239-245 – T. Subramanyam Naidu © International Research Journal of Social Sciences, Puducherry 2010, Vol.3, No.2. pp. 1 - 12 ECONOMIC MELTDOWN AND ITS IMPACT ON GLOBAL ECONOMY * Kanuparthi Ramanaiah Abstract What Started as a financial crisis has become a full blown real economic crisis that seems to spare no corner of the world. The Sub-prime loan crisis broke through the surface in the United States and Lehman Brothers collapsed, there is no sign that the people of the world have seen the worst of the crisis that now envelops the global economy. Worldwide, a lot of debates, conferences and seminars have been organized on Global meltdown. In this context, this paper explores that the genesis of the Economic Meltdown and the extent of the spread of the crisis to Global Economy - how it affected the Global economy and then evaluate the policy responses attempted so far. “Recent economic numbers have been terrifying, not .Just in the United States but around the world. Manufacturing, in particular, is plunging everywhere. Banks· aren’t lending; business and consumers aren’t spending. This looks an awful lot like the beginning of a second Great Depression.” - Paul Krugman (Nobel Laureate, 2008) Key words: Economic meltdown, Global Economy, Economic Growth, banking Regulations. Introduction Meltdown refers to a situation in which a rapid rise in the power level of a nuclear reactor, (as from a defect in the cooling system) results in the melting of the fuel rods and the consequent release of dangerous radiation that may cause the core to sink into the earth. So, it is a decline or breakdown a disastrous, rapidly developing condition or situation say economic conditions and status in the present context. The world is passing through a difficult time. More so, the developed world. The industrially advanced countries are now officially in recession. It is not known at this stage how long will this recession last and how deep will it be. It is feared that will be perhaps the deepest recession in the post-second world war period. * Faculty of Economics for Civil Services, Srinivasa IAS Study Circle, Hyderabad. E-mail: [email protected] 1 International Research Journal of Social Sciences - Volume 3, Number 2 July - Dec. 2010 The large domestic demand of the US was met by the rest of the world, especially China and other East Asian economies, which provided goods and services at relatively low costs leading to growing surpluses in these countries. Sustained current account surpluses in some of these EMEs also reflected the lessons learnt from the Asian financial crisis. Furthermore, the availability of relatively cheaper goods and services from China and other EMEs also helped to maintain price stability in the US and elsewhere, which might have not been possible otherwise. Thus measured inflation in the advanced economies remained low, contributing to the persistence of accommodative monetary policy. Apart from creating large global imbalances, accommodative monetary policy and the existence of very low interest rates for an extended period encouraged the search for yield, and relaxation of lending standards. Even as financial imbalances were building up, macroeconomic stability was maintained. Relatively stable growth and low inflation have been witnessed in the major advanced economies since the early 1990s and the period has been dubbed as the Great Moderation. As inflation started creeping up beginning 2004, the US Federal Reserve started to withdraw monetary accommodation. With interest rates beginning to edge up, mortgage payments also started rising. Tight monetary policy contained aggregate demand and output, depressing housing prices. With low/negligible margin financing, there were greater incentives to default by the sub-prime borrowers Global growth for 2009, which was seen at a healthy 3.8 per cent in April 2008, is now projected to contract by 1.3 per cent (IMF, 2009c). Major advanced economies are in recession and the EMEs - which in the earlier part of 2008 were widely viewed as being decoupled from the major advanced economies, -have also been engulfed by the financial crisis-led slowdown. Global trade volume (goods and services) is also expected to contract by 11 per cent during 2009 as against the robust growth of 8.2 per cent during 2006-2007. Private capital inflows (net) to the EMEs fell from the peak of US $ 617 billion in 2007 to US$ 109 billion in 2008 and are projected to record net outflows of US $ 190 billion in 2009. The sharp decline in capital flows in 2009 will be mainly on account of outflows under bank lending and portfolio flows. Thus, both the slowdown in external demand and the lack of external financing have dampened growth prospects for the EMEs much more than that was anticipated a year ago. Monetary policy developments in the leading economies not only affect them domestically, but also have a profound impact on the rest of the world through changes in risk premia and search for yield leading to significant switches 3 International Research Journal of Social Sciences - Volume 3, Number 2 July - Dec. 2010 The global search for yield was reflected in record high volume of capital flows to the EMEs; since such flows were well in excess of their financing requirements, the excess was recycled back to the advanced economies, leading to depressed long-term interest rates. The Great Moderation over the preceding two decades led to under-pricing of risks and the new financial and economic regime was considered as sustainable. The combined effect of these developments was excessive indebtedness of households, credit booms, asset price booms and excessive leverage in the major advanced economies, but also in emerging market economies.
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