Important Notes on Socio Economic planning

1. SARVAJANIK EDUCATION SOCIETY
SARVAJANIK COLLEGE OF ENGINEERING &
TECHNOLOGY
R. K. Desai Marg, Athwalines
SURAT
P. G. CENTRE IN CIVIL ENGINEERING DEPARTMENT
MASTER OF ENGINEERING
(TOWN AND COUNTRY PLANNING)
[Branch Code - 048]
SUBJECT ASSIGNMENT
DECEMBER 2019
Socio Economic Planning (3714810)

2. SARVAJANIK EDUCATION SOCIETY
SARVAJANIK COLLEGE OF ENGINEERING &
TECHNOLOGY
DR. R. K. DESAI MARG,
ATHWALINES, SURAT – 395001
Towards progressive civilization…….
CERTIFICATE
This is to certify that
Mr./Ms. ,
bearing Enrolment No.__________________, of class M. E. TCP I
(Semester I), has satisfactorily completed his/her term work for the
course of Socio Economic planning (CODE: 3714810) for the odd term
of the academic year 2019-20 ending in the month of December 2019.
Date: ______________
Prof. Himanshu J. Padhya Dr. Pratima A. Patel
Associate Professor Professor & Head
FEC, SCET FEC, SCET
External Examiner

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Assignment 1
1) Explain the various concepts of Social ecology.
2) What are the various methods used for sociology?
3) Explain the socio-cultural profile of Indian society?
4) What are the various Social Issues in India and way to mitigate them?
5) Explain the concept of land acquisition and explain resettlement and
rehabilitation caused due to it?
6) The various social problems of slums and squatters communities.
7) Explain the social transformation of urban and rural society and its impact
on social life.
8) What are the roles of socio-cultural aspects on the growth patterns of the
city?

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1) Explain the various concepts of Social ecology.
Core definition
Social ecology is the study of the interaction of people with their environment.
Explanatory context
Social ecology has been a focus of social enquiry for a century, although a modern notion of
social ecology seems to have divorced itself entirely from the sociological activities of the 1920s.
For example, Wikipedia states 'Social ecology is a philosophy founded by Green author and
activist Murray Bookchin'. This despite another entry that, under the subheading 'Ecology and
social theories' states 'The Chicago School wanted to develop tools by which to research and then
change society by directing urban planning and social intervention agencies. It recognized that
urban expansion was not haphazard but quite strongly controlled by community-level forces such
as land values, zoning ordinances, landscape features, circulation corridors, and historical
contingency. This was characterized as ecological because the external factors were neither
chance nor intended, but rather arose from the natural forces in the environment which limit the
adaptive spatial and temporal relationships between individuals.' A further entry headed
'Criminology' states 'Chicago School sociologists adopted a social ecology approach to studying
cities and postulated that urban neighborhoods with high levels of poverty often experience
breakdown in the social structure and institutions such as family and schools'.
Social ecology, also referred to as urban ecology and often confounded with human ecology was
first developed at the University of Chicago in the 1920s. Robert E. Park, for example,
encouraged social ecological studies and had a strong interest almost every aspect of city life,
race relations and ethnic neighborhoods to unionism and the role of the press.
Hamm (1992, p. 1) unpacks the development of social ecology from the early days at Chicago to
current usage and shows how a rift developed in the conceptualization, which has led to the
claims above:
'Since its inception in old Chicago school years, social ecology has been split up in what might
be called the ecological schism. On the one side of the schism was the paradigm of human
collectivities in permanent processes of mutual adaptation with their nonhuman environment. On
its other side was the analysis of urban structure and development, i.e. one specific type of
environment, and the most artificial one. Attempts to bridge the gap between the two branches
never really succeeded...'

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Analytical review
❖ The University of California, Irvine (undated) states:
A modern definition of social ecology understands it as the interactions within the social,
institutional, and cultural contexts of people-environment relations that make up well-being. This
approach adopts an explicitly systemic approach in focusing on the interdependencies of social
systems. Thus, such an approach focuses on the possibility that the foundations of ecological
crises can lie in social structures, or that civil war can originate from environmental scarcity, or
the multiple cause-and-effect relationships linking SES status and health. These phenomena beg
for approaches that are cognizant of system complexity.
At its core, Social Ecology's motivating philosophy is a pragmatic one --the most persistent ills
of society (sprawl, malnutrition, deforestation, urban violence, waterborne disease, obesity,
housing insecurity, and countless others) seem to resist the prescriptions emerging from uni-
disciplinary research. Social ecology often focuses on the centrality of context in understanding
these phenomena --context, or place, remains despite the popular wisdom that the globalized
world is now everywhere flat.
Is social ecology the study of everything? No, but it is a manner of studying things. Thus, it
concerns how the different objects of study relate to, bump into, and change each other such that
the social phenomenon cannot be attributed to any of its objects....
Contributors to the development of the ecological paradigm as it is used in the definition of
social ecology include: R. Park's and E. Burgess' (1925) edited book The City....The intellectual
foundations of Social Ecology are quite diverse and span numerous disciplines. The research
orientation and educational philosophy of the Program in Social Ecology are rooted in several
intellectual traditions, including evolutionary biology (Darwin, Wallace), open-systems theory
(Von Bertalanffy, Maruyama, Miller), the Chicago School of Human Ecology (Park, Burgess,
Hawley), urban sociology (Durkheim, Simmel, Wirth, Michelson), ecological psychology
(Barker, Lewin), and the fields of public health (Cassel), urban planning (Haig), criminology and
law (Sutherland, Cressey, Sax).
❖ The Social Ecology Institute of British Columbia (undated) states:
Social ecology is defined as the science of the relationships between human populations and
communities and their environments. Social ecology advocates an empowered and re-

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constructive view of environmental and social issues, and envisions a moral economy that moves
beyond scarcity and hierarchy toward a world that re-harmonizes human communities with the
natural world while celebrating diversity, and creativity....Some social ecologists claim that the
environmental crisis currently facing us is a result of the hierarchical organization of power and
the authoritarian mentality rooted in the structures of our corporatist and consumer society.... For
many, many years, social hierarchy and class have been used to legitimize our domination of the
environment and to justify imperialistic movements; they have also provided the foundation for
the consumer system, the basis of our North American economy. Some social ecologists believe
that the root causes of environmental problems are such factors as trade-for-profit, industrial
expansion, and the equating of corporate self-interest with ‘progress.’ Ecological problems
cannot be understood, much less resolved, without resolving a number of these social issues first
❖ The Institute for Social Ecology (2011) defined it thus:
Social Ecology
1: a coherent radical critique of current social, political, and anti-ecological trends.
2: a reconstructive, ecological, communitarian, and ethical approach to society.
❖ White et al. (2012) defined social ecology as follows:
Social ecology is concerned with the social roots and implications of ecological dislocation.
Broadly speaking, this interdisciplinary field begins with the scientific fact of ecological crisis,
seeking to overcome this crisis through an understanding of its origin(s) within human society.
Because this social and scientific exploration seeks to get “to the root” of this problem through
an analysis of existing, yet mutable, social institutions, values, and relationships, it is considered
one of the three core radical ecological philosophies (along with deep ecology and ecofeminism).
The starting premise of social ecology, as put forward by Bookchin, is often articulated as: the
domination of humanity over nature is rooted in the domination of human over human, and that
the ecological crisis is rooted in deep-seated social issues. Implied in this starting premise is the
end goal of social ecological investigation: the overcoming of the ecological crisis through
creation of the ecological society. This has been referred to within the field as, variously, “post
scarcity,” “libertarian municipalism,” or “Eco communitarianism.” Because social ecological
investigation claims to find the root of ecological dislocation in social domination, the
sufficiently ecological society has characteristics including egalitarianism, decentralization,
direct democracy, and the absence of hierarchy and domination. For social ecology, the

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ecological society is at once the liberated society....
The method of investigation used by social ecology is radically dialectical. Such a method
originates in the pre-Socratic philosopher Heraclitus in the “West” and Gautama Buddha and
Lao-Tsu in the “East.” It continues historically through the works of Aristotle, Hegel, and Marx,
among others, as well as many aspects of the Buddhist and Taoist traditions. Such a method of
inquiry, concerned as it is with concepts of negation, opposition, and relation, is seen as organic
and highly compatible with an ecological understanding.
2) What are the various methods used for sociology?
Sociologists examine the world, see a problem or interesting pattern, and set out to study it. They
use research methods to design a study—perhaps a detailed, systematic, scientific method for
conducting research and obtaining data, or perhaps an ethnographic study utilizing an
interpretive framework. Planning the research design is a key step in any sociological study.
1. Surveys
As a research method, a survey collects data from subjects who respond to a series of questions
about behaviors and opinions, often in the form of a questionnaire. The survey is one of the most
widely used scientific research methods. The standard survey format allows individuals a level of
anonymity in which they can express personal ideas.
Sociologists conduct surveys under controlled conditions for specific purposes. Surveys gather
different types of information from people. While surveys are not great at capturing the ways
people really behave in social situations, they are a great method for discovering how people feel
and think—or at least how they say they feel and think. Surveys can track preferences for
presidential candidates or reported individual behaviors (such as sleeping, driving, or texting
habits) or factual information such as employment status, income, and education levels.
2. Field Research
The work of sociology rarely happens in limited, confined spaces. Sociologists seldom study
subjects in their own offices or laboratories. Rather, sociologists go out into the world. They

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meet subjects where they live, work, and play. Field research refers to gathering primary
data from a natural environment without doing a lab experiment or a survey. It is a research
method suited to an interpretive framework rather than to the scientific method. To conduct field
research, the sociologist must be willing to step into new environments and observe, participate,
or experience those worlds. In field work, the sociologists, rather than the subjects, are the ones
out of their element.
The researcher interacts with or observes a person or people and gathers data along the way. The
key point in field research is that it takes place in the subject’s natural environment, whether it’s
a coffee shop or tribal village, a homeless shelter or the DMV, a hospital, airport, mall, or beach
resort.
Much of the data gathered in field research are based not on cause and effect but on correlation.
And while field research looks for correlation, its small sample size does not allow for
establishing a causal relationship between two variables.
3. Participant Observation
At the beginning of a field study, researchers might have a question: “What really goes on in the
kitchen of the most popular diner on campus?” or “What is it like to be homeless?” Participant
observation is a useful method if the researcher wants to explore a certain environment from the
inside.
Field researchers simply want to observe and learn. In such a setting, the researcher will be alert
and open minded to whatever happens, recording all observations accurately. Soon, as patterns
emerge, questions will become more specific, observations will lead to hypotheses, and
hypotheses will guide the researcher in shaping data into results.
4. Ethnography
Ethnography is the extended observation of the social perspective and cultural values of an entire
social setting. Ethnographies involve objective observation of an entire community.

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A sociologist studying a tribe in the Amazon might watch the way villagers go about their daily
lives and then write a paper about it. To observe a spiritual retreat center, an ethnographer might
sign up for a retreat and attend as a guest for an extended stay, observe and record data, and
collate the material into results.
5. Case Study
Sometimes a researcher wants to study one specific person or event. A case study is an in-depth
analysis of a single event, situation, or individual. To conduct a case study, a researcher
examines existing sources like documents and archival records, conducts interviews, engages in
direct observation and even participant observation, if possible.
Researchers might use this method to study a single case of, for example, a foster child, drug
lord, cancer patient, criminal, or rape victim. However, a major criticism of the case study as a
method is that a developed study of a single case, while offering depth on a topic, does not
provide enough evidence to form a generalized conclusion. In other words, it is difficult to make
universal claims based on just one person, since one person does not verify a pattern. This is why
most sociologists do not use case studies as a primary research method.
6. Experiments
You’ve probably tested personal social theories. “If I study at night and review in the morning,
I’ll improve my retention skills.” Or, “If I stop drinking soda, I’ll feel better.” Cause and effect.
If this, then that. When you test the theory, your results either prove or disprove your hypothesis.
One-way researchers test social theories is by conducting an experiment, meaning they
investigate relationships to test a hypothesis—a scientific approach.
There are two main types of experiments: lab-based experiments and natural or field
experiments. In a lab setting, the research can be controlled so that perhaps more data can be
recorded in a certain amount of time. In a natural or field-based experiment, the generation of
data cannot be controlled but the information might be considered more accurate since it was
collected without interference or intervention by the researcher.

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3) Explain the socio-cultural profile of Indian society?
Major determinants of social and political organization in India today are:
• Religion,
• Caste
• Language
Religion means the system in which group of persons trust in God. Different religions have
different principles, rules and regulations in which they sacrifice to use some products and to eat
some food. The government has recognized 18 official languages; Hindi, the national language,
is the most widely spoken. About 80% of the population is Hindu; India is the home of more
than 138 million Muslims, the third largest Muslim population in the world. India’s population
also includes Christians, Sikhs, Jains, Buddhists, and Parsis.
The Caste System
The caste system is based on occupational and socially defined hierarchies.
There are 4 castes:
1) Priests (Brahmin),
2) Warriors (Kshatriya),
3) traders/Artisans/Farmers (Vaishya),
4) Farm Workers/ Laborers (Shudra).
These categories are generally understood throughout India. The caste system does not
include the tribal people and those outside the caste system formerly known as "untouchables”,
or Dalits. In reality, Indian society is divided into thousands of jatis local, endogamous groups
based on occupation and organized hierarchically according to complex ideas of purity and
pollution.
Discrimination based on caste is officially illegal, but remains prevalent, especially in
rural areas. Government effort, expanding education, land reform and economic opportunity
through access to information, communication, transport, and credit are helping to lower
elements of the caste system.

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Educational
• Educational institutions are also main part of societies. They provide good knowledge,
education, awareness, thinking, what should students buy or not to buy.
• In India, national education has been born as a side product of freedom movement
beginning with anti-partition movement in 1905-11.
• The earlier national institutions became a part of the general system and efforts were
made to convert the entire system of education to the national pattern.
Workforce
• Labour force: 487.6 million (2011 estimate)
• Labour force - by occupation:
o agriculture: 52%
o II. Industry: 14%
o III. Services: 34%
• Unemployment rate: 9.8% (2011 estimate)
• Classified as a "low income" country by the World Bank with a GNI (gross national
income) of $450.
• Great inequality in the distribution of wealth: the richest tenth of households hold 33%
of wealth, while the poorest tenth only hold 3%.
• 29% of the population lives below the poverty line; 70% of these people reside in rural
areas; 86% of the population lives under $2 per day;
• 44% lives under $1 per day;
• 25% of the population does not have enough money to eat adequately.
Indian Social Customs
• Politics can be freely discussed in India and most people will have an opinion which they
will not mind being contradicted. But avoid discussing religion, especially with Muslims
who form about 11% of India's population.
• If you are invited home for dinner, carry a box of sweets (Mithai) or a chocolate bar for
the children. You must bargain with street vendors, but never at stores.
• Always eat with your (right) hand.

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• Don’t ever complain about the food. Adjust.
• All give and take is done with the right hand.
• If you accidentally bump someone, be sure to apologize.
Mind Your Culture
• Exchange of money is always done with the right hand.
• Being the first customer of the day could get you a good bargain since this is considered
to set the standard for all business transactions for the day.
• Books are considered sacred so must never be placed on the floor.
• Business conversations include enquiring about the family.
• Do not sit with your foot pointing at anyone.
• Dress modestly. Women must dress modestly.
• Remove shoes when entering a home and religious
Festival
• Hindu Festival
• Diwali-Hindus New Year (Festival of Lights)
• Navaratri
• Buddha Purnima – Buddhist New Year
• Paryushan - Jain festival celebrated for self-purification and uplift of oneself.
• Sikh – Baisakhi festival
• Nowruz – Parsi New Year celebration
• Islamic Festivals of Eid
• Eid Al Fitr - Celebration at the end of the holy month of Ramadan
• Eid Al Adha - Festival of Sacrifice.
Indian Food
Wide regional variation
• A variety of spices and nuts add delicate flavor to the food Vegetarian food is very
common in India
• There are many types of curries (vindaloo, Madras, etc.)

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• Do not confuse curry with gravy.
• No beef! (Cows are considered holy in India.)
• Chicken and lamb/mutton are common meats, as is fish.
• Indian pickles are served with every meal; they are made with oil, spices and a variety of
vegetables (mango, lemon, chillies, carrots.)
• Plain yogurt is consumed with almost every meal.
Indian Music
India has a history of music that spans millennia. Music serves as spiritual inspiration, cultural
expression and pure entertainment. Types of music:
1) Folk – rural, ethnic, regional music
2) Popular – Bollywood and regional cinema music
3) Classical music – two branches: Carnatic - Southern India) and Hindustani (Northern and
4) What are the various Social Issues in India and way to mitigate
them?
• India has made a place for itself as one of the fastest growing economies in the world, yet it
loses behind in a lot behind in the name of growth. As the rich are getting richer and the poor
get poorer, the divide has been expanding more than before. What can after all be attributed
to the various issues that pose a threat before every government that comes to power at the
center? From the increasing poverty, to the corruption at an all-time high, the increasing
violence against women across the nation, the incidents of terrorism that rock some or the
other city, and the rising prices of basic amenities, are some of the most scary facts of this
fast-growing economy, India.
• Social Issues in India While these are not the only issues on the list, let’s go through
some of the major social issues that mar the reputation of the country off and on.
❖ Poverty: -
• Poverty is one of the biggest evils faced by India in the present scenario. With an
increasing population of people in the Below the Poverty Line (BPL) across the
nation, it seems like a never-ending issue. Rising inflation has added further to the
existing problem. India has an unbelievable number of people suffering due to this

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evil. According to the Indian Planning Commission’s 2013 estimate, around 269
million people (approximately 22% of the total population) live under the poverty
line. And, when we start looking around for what has actually been done about it, we
wouldn’t really find much.
❖ government needs to take a strong action against the biggest social evil of all. Ministers
need to work towards creating employment and providing enough for the large population
which does not even receive the basic amenities. New policies are the need of the hour,
not only for employment creation but also to create a young educated population.
Education must be promoted at all levels of the society to create awareness especially
among the poor.
❖ Corruption: -
• Corruption is ruining the spine of the nation and has adversely affected the economy of India.
India has been marred by a list of scams and scandals, which have crippled the nation from
inside out. From the Coalgate scam, to the 2G scam, to the CWG scandal and the Bofors
scam, all brought forward the weaknesses of a government and a nation. As the government
at the center changes every time, the blame game changes and political parties start blaming
the other, but corruption is not really being fought at the ground level. From babus to
ministers at the top, all have been found involved in some of the world’s biggest scandals.
• has created a hole in the pockets of the Indian economy, it has become essential for the
government to tackle it at different levels. From strict rules at all levels of government
undertakings, to an awareness among the people against the spread of corruption, needs to be
maintained by the government. Anna Hazare’s fight against corruption should actually be
taken up by the leaders of the nation and must imply the Anti-Corruption bill in the
government completely.
• pointing a finger on others is the easiest way out, people need to realize the need to get rid of
the ‘under-the-table’ bribing habit and strengthen our system by neither giving bribe, nor
taking bribe. The government needs to take strong action against a bribe-giver and a bribe-
taker equally.

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❖ Terrorism: -
• Terrorism has affected India since the day India was partitioned. The dispute over Kashmir
between India and Pakistan has been a long-standing unresolved issue. Using this, the
neighboring country has often used terror against India in the worst manners possible.
Uncountable incidents of terror attacks in Kashmir, and its nearby regions such as Srinagar,
along with the major cities of the country, have been a source of disturbance very often. One
such incident which shook the nation was the 26X11 Mumbai terror attack, among the
uncountable similar attacks. India has been disturbed by external terrorism as well as internal
terrorism through Maoist attacks in the western parts of the country.
• mainly causes loss of lives, but also affects the country economically. Tourism in Jammu &
Kashmir has suffered for years on end due to the threat to tourists due to sudden terror
attacks. Alongside, the clean-up after every such attack involve long governmental processes.
How is the government tackling the issue, only remains a question.
• government needs to take a strong stand against the neighboring countries terror activities
and needs to take action and not only hold peace talks. It’s the need of the hour that the
citizens of the country are provided with security as well as an assurity of safety as well. A
sensitive approach towards terrorists may be attempted to make them surrender.
❖ Communalism: -
• Being a mix of various cultures and religions, India has ever-since its formation suffered due
to communal differences. Communal clashes have led to a lot of violence in various incidents
across the country. The Hindu Muslim clash during the partition of India, and the Operation
Blue Star which led to the assassination of the then PM Indira Gandhi are the worst examples
of communalism in India. Not to forget the bloodbath that took place during the Babri Masjid
demolition case. India has been affected both economically and politically, after such
incidents took place.
• government needs to handle such issues with extreme sensitivity, along with making sure
that communalism is not used for political gains by its ministers. Besides political
understanding change needs to be brought from the grass roots level itself. The caste divide
must be decreased by educating the younger generation and sensitizing them about such
issues.

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❖ Illiteracy: -
1) On one hand, India has a state like Kerala that boasts of 93.91% literacy in its state alone,
while on the other hand there is a backward state like Bihar with 68.8% literacy rate.
Education is not necessary for employment and learning; it is required to create a sensitive
and growth-seeking younger generation. A youth needs to be empowered with education, to
further know their rights as the citizens of the country. Illiteracy needs to be tackled as one of
the biggest social evils of the nation, as this is the biggest reasons why the youth is misguided
and involved in criminal as well as terror activities.
2) government needs to enforce free education and strict rules to follow it in every family in
India, poor or not poor. An educated population will eventually lead to the country having a
stronger workforce as against the world. Education is sure to change the poverty and
unemployment scenario in the country. At the core level, the people need to be made aware
of the need of education to have enriched lives.
❖ Inflation: -
• The past years have seen inflation as one of the major issues faced by the common man. The
rising prices of basic amenities have created furor among the people. Rising rates of food
items and fuel have affected the pockets of the middle class so much, bringing them out on
the roads in protest. The government has not been able to fulfill any of the promises made
before coming in power, which were all forgotten later, leaving the people to suffer the brunt
of inflation.
• is an essential need to bring inflation under control, and bring basic amenities at affordable
prices for all. When will this economic divide be erased, is a question no government has
been able to answer as yet.
❖ Violence against Women: -
• Women in India live under a constant fear all the time. A fear of going out alone, disturbs
every female mind living in India. The rising cases of sexual abuse and rape across the
country, have left a black mark on the reputation of India. Foreign tourists have been known
to have been given special warnings while travelling to India, in fact some countries even
labelled our nation as an unsafe country for women, after the deadly Delhi Rape case. Is this
the reputation we wish to maintain across the world? Definitely not! But what are we really
doing about it. The recent rape cases in Badaun, UP moved the entire nation, though no

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concrete action was taken for a long time. Rapes continue to take place, and no action is
taken against the culprits. In most cases, victims die, and if they survive, they live a worse
life than ever.
• the government does anything about the security, the people themselves need to take a stand
against crime against women. We as a society need to fight this social evil from within. The
youth needs to be sensitized about the safety of women, and the respect to be given to
women.
• police action needs to be taken against the culprits, and cases need to be handled with more
sensitivity and through a quick process. We need to see justice happen, and now.
• country as a whole needs to be ready to tackle such social evils, along with the government.
5) Explain the concept of land acquisition and explain resettlement
and rehabilitation caused due to it?
→ Land acquisition in India refers to the process by which the union or a state government in
India acquires private land for the purpose of industrialization, development of infrastructural
facilities or urbanization of the private land, and provides compensation to the affected land
owners and their rehabilitation and resettlement.
→ Land acquisition in India is governed by the Right to Fair Compensation and Transparency in
Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR) and which came into
force from 1 January 2014. Till 2013, land acquisition in India was governed by Land
Acquisition Act of 1894. On 31 December 2013, the President of India promulgated an
ordinance with an official mandate to "meet the twin objectives of farmer welfare; along with
expeditiously meeting the strategic and developmental needs of the country". An amendment
bill was then introduced in Parliament to endorse the Ordinance. Lok Sabha passed the bill
but the same is still lying for passage by the Rajya Sabha. On 30 May 2015, President of
India promulgated the amendment ordinance for third time. Union Government of India has
also made and notified the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement (Social Impact Assessment and Consent) Rules,
2014 under the Act to regulate the procedure. The land acquisition in Jammu and Kashmir is
governed by the Jammu and Kashmir Land Acquisition Act 1934.

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• Resettlement and rehabilitation
→ People are forced to move out of their land due to both natural and manmade disasters.
Natural disasters like earthquakes, cyclones, tsunami etc. render thousands of people
homeless and sometime even force them to move and resettle in other areas. Similarly,
developmental projects like construction of roads, dams, canals and flyovers displace people
from their homes. Leakage of nuclear material in Japan resulted in millions of people being
forced to leave the area for their safety. Thus, resettlement refers to the process of settling
again in a new area. Rehabilitation means restoration to the former state.
→ Displacement of people in India, is largely triggered by factors such as, development
projects, political conflict, setting up Protected Area Networks and Conservation areas and
natural disasters, amongst others. The International Displacement Monitoring Centre in 2007
reveal that about 50 million people in India had been displaced due to development projects
in over 50 years. A study conducted in six states estimated the figure at around 60 million
between 1947- 2000. The latest data in the website of Internal Displacement Monitoring
Centre (IDMC) show that at least 616,140 have been internally displaced in India due to
various conflicts as of April, 2015. The figure for people displaced due to disasters is at least
3,428,000 and there are about 11,042 political refugees originating from the country as of
January, 20141 Although, these approximate figures for displacement in India may be
staggering, there remains no reliable data on the total number of people actually displaced
nor the number of people that have been resettled and rehabilitated. This review highlights
issues relating to resettlement and rehabilitation, majorly focusing.
• PROBLEMS FACED DURING RESETTLEMENT & REHABILITATION
Various problems are faced during the process of resettlement and rehabilitation, mostly by
the people who are being resettled.
→ Loss of arable land: A lot of land has been acquired for building dams. This means that
thousands of acres of fertile, arable farmland which was used for cultivation have now been
submerged and are not available for cultivation. Alternative land provided is usually on
barren land which needs decades of tilling for it to become profitably productive. Similar is
the case with land acquired for industries.

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→ Loss of forests, flora & fauna: Where the construction of various dams is concerned, large
tracts of forest areas have been flooded and have now disappeared. The entire flora and fauna
and the associated ecologies of these regions have been destroyed.
→ Extinction of indigenous populations: The displacement of indigenous communities from
their ancestral lands has led to a destruction of their traditional lifestyles, cultures, customs
and traditions. As a result, indigenous populations are rapidly diminishing and heading
towards extinction.
→ Quality of land/area of resettlement: It has been found that the resettlement area is usually
such that the quality of land given in compensation is much lower than the original land that
the displaced people possessed. As a result, it becomes very difficult for these ousters to
grow crops on this land to feed their families.
→ Water facilities: In India, most acquisition of land so far has been for building big dams. The
people living along the rivers are used to free availability of water. Though the authorities are
supposed to keep in mind the water requirements of the communities that are to be moved,
specially drinking water facilities, more often than not this has not been done.
→ Loss of means of livelihood: In India, even today, most professions are inherited, especially
in the rural areas and the poorer segments of society. When a population moves to a new
area, they are forced to take up new professions which they are not trained for or skilled in.
As a result, they are unable to feed their families, leading to deepening poverty.
→ Multiple displacements: People are moved from one area to another due to a new
development project. A few years later another new project is envisaged in the area where
they have now been resettled. As a result, they have to move yet again. This has repeated
effects on their lifestyles and livelihoods, leading to a further deepening of their poverty.
→ Project Beneficiaries Vs Project Affected: It has generally been found that project affected do
not end up being project beneficiaries. The fruits of developmental projects are directly
enjoyed by the affluent residing in urban areas, rather than those who have sacrificed their
homes for the so-called development of the country. Result is that the displaced find
themselves doubly exploited – loss of homes, cultures, traditional livelihoods on the one
hand and continued deepening poverty on the other, since they are not trained for the jobs
that are available.

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6) The various social problems of slums and squatters communities.
The rapid urbanization in conjugation with industrialization has resulted in the growth of
slum. These slums give rise to many problems in the urban areas. The major problems of slums
in India are as follows: -
❖ Shortage of space: About 77.6% of the urban dwellers in Mumbai reside in one room and
lakhs of them sleeps on the footpath. About 62% of the households of the metropolis
reside in these slums. This give rise to the problem of shortage of space.
❖ Prone to natural and man-made hazards: As in slums, houses are crammed in a little
space, they are often prone to dangerous hazards like floods, water logging, fire etc.
Extent of hazard is increased because of high population density. The slum areas of Delhi
specially Yamuna-Pushta are affected by floodwater of Yamuna every year. The Kutcha
houses of slums frequently catch fire in summer.
❖ Poor living conditions: Slums are not planned hence they lack basic amenities. Slums
have invariably extreme unhygienic conditions. There are no toilets and people defecate in
open. Slums have practically no drainage. Most of the slums are located near drains which
contain filthy stagnant water.
❖ Health hazards: The poor living condition in slums affects the health of people mentally
and physically. Water contamination cause disease like blood dysentery, diarrhea, malaria,
typhoid, jaundice etc. Children with bloated bellies or famished skeletons, many suffering
from polio are common sight. People are not aware of health problems
❖ Social problems: Socially, slums remain isolated from rest of the urban society and
exhibit pathological social symptoms like drug abuse, alcoholism, crime, vandalism and
other deviant behavior. The lack of integration of slum inhabitants into urban life reflects
both, the lack ability and culture barriers.

21. Page | 21
❖ Poor housing planning: Lack of affordable low-cost housing and poor planning by
government encourages the supply side of slums. Insufficient financial resources and lack
of coordination in government bureaucracy are two main causes of poor housing
planning.
❖ Slow development of Villages: Villages in India are not Developed even on basic
requirement level, and even today people face the scarcity of water, electricity and many
more basic amenities. This lack of facilities in rural areas forces people to migrate to the
urban areas, which increase pressure on urban population. Though this is not much
pronounced reason for genesis of slums, but it still is one of them.
❖ Vote politics: Vote politics also support the slums. Removal of slums brings conflicts of
interest of politician. Slum population forms a good amount of easy vote bank and politics
want them to remain as they are, because their upliftment and education will hurt their
vote bank.
❖ High house Rents In Cities: Poor peoples, most of which coming from rural areas, are
not able to pay high rent of houses in the towns. Hence wherever they find a land, public
or private, they start living there in temporary hutments, as the time progress, more and
more people joins them, and that area soon develops into the slum.
Refugees: Some of the slum areas in India are also inhabited by the refugees. Once an area
is marked as slum it started growing because of increasing population pressure in cities.

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7) Explain the social transformation of urban and rural society and
its impact on social life.
➢ Social change refers to changes in structure and culture of the society.
➢ Changes can be both intensive extensive.
TYPES OF SOCIAL CHANGE:
1. On basis of pave
2. Belief and values
3. Structural change
4. Cultural change
➢ Darwin proposed the theory of evolution and emphasized on the” survival of the fittest”
➢ Darwin’s theory of evolution has been adapted to the social world and terms as social
Darwinism, a theory that emphasized the importance of adaptive change.
➢ In contract to evolution, revolutionary change is quick, sudden and overthrows the
existing system. Example French revolution.
➢ Changes in values and beliefs can also lead to social change.
➢ On the basis of pace social change may be evolutionary (Darwin’s theory) or
revolutionary (French revolution)
➢ Changes in ideas, values and beliefs also lead to social in the structure of the society.
➢ Sanskritization and westernization have brought change in the culture.
❖ CAUSES OF SOCIAL CHANGE:
1) Internal
2) External
Internal: indigenous endogenous (source lies within the nation)
e.g. Sanskritization
external: exogenous (source is from outside the nation)
e.g. westernization
FIVE BROAD TYPES OF SOURCE OF CAUSES OF SOCIAL CHANGE:
1. Environmental
2. Technological
3. Economic

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4. Political
5. Cultural.
1. ENVIRONMENT:
Nature, ecology and the physical environment and its influence on the structure and shape of
society.
2. TECHNOLOGY AND ECONOMY:
Technology along with economic change has been responsible for immense social changes, for
e.g. industrial revolution.
3. POLITICS:
Political forces have been the most important causes of social change for e.g. history of warfare.
❖ India’s struggle for independence
❖ Nepal’s rejections of monarchy
❖ Biggest political change of history: universal adult franchise
4. CULTURE:
Ideas, values beliefs are important in shaping people’s life. Changes in their belief helps to
transform society.
✓ Women’s struggle for equality.
No single factor can account for social change. Causes of social change are often inter-related.
Pace of change in modern and contemporary times is much faster than before.
➢ Counterculture: counter are protests against or refusal to conform to prevalent social
norms. E.g. Youth rebellion
➢ The content to this protest may involve anything from hairstyles and clothing fashions to
language or lifestyle.
SOCIAL ORDER: refers to active maintenance and reproduction of particular pattern of social
relations and of values and norms.
WAY OF ACHIVING ORDER:
a. when people spontaneously wish to abide by a set of rules and norms.
b. when people are compelled in various ways to obey norms.
AUTHORITY: is defined by Max weber as legitimate power- that is, power considered to be

24. Page | 24
justified or proper, e.g. authority of a teacher, a police officer etc.
TYPES OF AUTHORITY
1. rational legal
2. charismatic
❖ RATIONAL LEGAL: also known as bureaucratic authority, is when power is
legitimized by legally enacted rules and regulations such as governments. E.g.
government official’s world. Wield this type of authority in most countries of the
bureaucracies are the result of this types of authority.
❖ CHARISMATIC: power legitimized by extraordinary personal abilities that inspire
devotion and obedience. Examples in this regard can be NT rana Rao, a matinee idol,
who went on to become one of the most powerful chief ministers of Andhra Pradesh.
LAW: Are explicitly codified norms or rule. It is usually written down, and there are laws that
specify how laws are to be made or changed laws apply to all citizens of a country.
CONTESTATION: refers to broad forms of insistent disagreement. It includes dissent or
pe=rotest against laws or lawful authorities.
CRIME: is an act that violates an existing law. The moral worth of the act is not determined
solely by the fact that it violates existing law. If the existing law is believed to be unjust.
VIOLENCE: is the enemy of social order, and an extreme from of contestation that transgresses
not only the law, but important social norms. Violence in society is the product of social
tensions. It is also a challenges to the authority of the state.
SOCIAL ORDER AND SOCIAL CHANGE IN VILLAGE, TOWN AND CITY:
Villages emerged as part of the major changes in social structure brought about by the transition
form nomadic ways of life based on hunting gathering food and transient agriculture to a more
settled form of life. Investment inland and technological innovations in agriculture created the
possibility of producing surplus. Advanced division of labor created the need for occupational
specialization All these changes together shaped the emergence of the village as a population
settlement based on a particular form of social organization. Distinction between villages and
cities: Villages -significant proportion of its population is involved in agriculture activities, low
density of population as compared to cities and towns City- Majority of people engaged in non-
agriculture pursuits. Population density i e. (the number of persons per unit over, such as square

25. Page | 25
km, is. higher than villages.
SOCIAL ORDER AND SOCIAL CHANGE IN RURAL AREAS:
Change is slower to arrive in villages than in towns because of personalized relationships and as
traditional social practices are stronger New modes of communication has accelerated the pace
of change in Villages. Land reforms have altered the structure of land ownership. Changes in the
technological organization of agriculture also has a large and immediate impact on rural society.
Sudden fluctuations in agricultural prices, droughts or floods can cause havoc in rural society
Large scale development programmer aimed at the rural people can also have an enormous
impact e.g. National Rural Employment Guarantee Act of 2005.
SOCIAL ORDER AND SOCIAL CHANGE IN URBAN AREAS:
Urbanism as a way of life for large segments of the population is a modern Phenomenon City life
and modernity go very well together City fosters the development of group identities, based on
factors like race, religion, ethnicity etc. High population density places a great premium on
SPACE and creates very complex problems of logistics City life presents formidable challenges
of planning, implementation and maintenance Shortage of housing for the poor leads to
homelessness and the phenomenon of 'street people It is also the leading cause for the emergence
of slums People live in cities is based on socio-cultural identities Creation of ghettoes through
the conversion of mixed composition neighborhoods into single community neighborhoods
(ghettosiation) is common in cities al over the world City centers are experiencing a revival in
many major western cities as attempts are made to regenerate cot gentrification which refers to
the conversion of a previously lower class neighbourhood into a middle and upper class one.
Changes in modes of mass transport may also bring about significant social change in cities.
TERMS AND CONCEPTS
1) CUSTOMS DUTIES, TARIFFTS: Taxes imposed on goods entering or leaving a country,
which increase its price and make it less competitive relative to domestically produced
goods.
2) DOMINANT CASTES: Term attributed to M N. Srinivas; refers to landowning intermediate
castes that are numerically large and therefore enjoy political dominance in a given region.
3) Gated Communities: Urban localities (usually upper class or affluent) sealed off from its
surroundings by fences, walls and gates with controlled entry and exit.

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4) Gentrification: An The term used to describe the conversion of low class (urban)
neighbourhood into a middle or upper-class neighbourhood.
5) GHETTO, GHETTOISATION: Originally from the term used for the locality where Jews
lived in medieval European cities, today refers to any neighbourhood with a concentration of
is the process of creation of ghettoes through the conversion of mixed composition
neighbourhoods into single community neighbourhoods.
6) Legitimation: The process of making legitimate. or the grounds on which something is
consider legitimate i.e.,proper, just, right, etc.
7) Mass Transit: Modes of fast city transport for large numbers.
8) What are the roles of socio- cultural aspects on the growth
patterns of the city?
The great transformations which have taken place in Romania during the last few decades can be
seen especially clearly in analysis of two main components of social life: industrialization and
urbanization. From the ideological viewpoint of the development of socialism, these two
components are obviously correlated~ the process of urbanization can be defined as part of the
process of socialist industrialization and, at the same time, as part of the transformations brought
about by the corporatization of agriculture.
Within this framework specific differences can be delimited between the socialist urbanization
process and the rhythm urbanization follows in the Western world or on the African continent.
Undoubtedly, the first methodological obligation is to understand the sense and significance of
these differences. The complex process of urbanization involves basic changes, primarily in
economic and demographic structures. However, beyond these basic changes, others of no less
importance can be observed.
The nature of their significance differs in that they involve the spiritual life of the human
community. They make up its affective, intellectual, esthetic-artistic and educational side. The
ethnologist's goal is to understand these secondary changes which, either partially or totally, may
redefine the composite profile of new social facts. Of course, significance is also to be found in
analyzing all the implications of the diachronic dimension as each town has had its own

27. Page | 27
particular history determined, over the course of time, by the development of its own social
surroundings.
We should emphasize that Romanian towns, when compared with those in the rest of
southeastern Europe, have followed their own particular processes of development due to the fact
that for a long period during the Middle Ages, these town centers grew autonomously. As others
have accurately stressed, sociologists formerly considered that urbanization represented nothing
more than a straightforward population displacement from country to town. In other words,
urbanization implied the simple migration of one social category into another social environment
(Constantinescu, 1971).
However, the careful study of this complex phenomenon reveals other significant aspects: the
process of "re-urbanization" of former town dwellers whose social and cultural lives are
modified as a result of the powerful rhythm of industrialization the process of continual growth
in rural settlements located adjacent to urbanizing centers1 the pendulum-like movements of
commuters imposing new cultural patterns in the villages; the variability of urban structures and
the tendency to disperse in suburbs.
Four main analytical perspectives have been employed in the study of the urbanization process as
it has proceeded and continues in Romania:
(1) integration within urban surroundings;
(2) continuously increasing degree of urbanization of the old town systems;
(3) the urbanization process in rural settlements; and
(4) the decreasing discrepancy between country and town whtd1 in fact expresses a gradual
adoption of the town pattern (Matei and Matei, 1977).

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ASSIGNMENT 2
1) Explain Settlement Policy.
2) What are the experience derived from the settlement policy of India?
3) Explain marginalization and Concept of inclusive Planning.
4) Explain micro and macroeconomics.
5) Explain the concepts of demand and supply.
6) Explain the Economics of Scale in detail.
7) what are the various determinants of national income and explain them in
detail?
8) What is quality of life? explain humans development index.
9) What are the various economic principles of land use planning?

29. Page | 29
1) Explain Settlement Policy.
• The Indian peasants had been forced to bear, the main burden of providing money for
the trade and profits of the Company, the cost of administration, and the wars of British
expansion in India. In fact, the British could not have conquered such a vast country as
India if they had not taxed him heavily.
• The Indian state had since times immemorial taken a part of the agriculture produce as
land revenue. It had been done so either directly through its servants or indirectly
through intermediaries, such as zamindars, revenue-farmers, etc., who collected the land
revenue from the cultivator and kept a part of it as their commission.
• The intermediaries were primarily collectors of land revenue, although they did
sometimes own some land in the area from which they collected revenue.
• The Land Revenue Policy in India can study into three following heads −
• In 1773, the British Company decided to manage the land revenues directly.
• Warren Hastings auctioned the right to collect revenue to the highest bidders. But his
experiment did not succeed.

30. Page | 30
• The amount of land revenue was pushed high by zamindars and other Speculators
bidding against each other; however, the actual collection varied from year to year and
seldom came up to official expectations. This introduced instability in the Company's
revenues at a time when the Company was hard pressed for money.
• Neither the riot nor the zamindar would do anything to improve cultivation when they
did not know what the next year's assessment would be or who would be the next year's
revenue collector.
• The idea of fixing the land revenue at a permanent amount was introduced. Finally, after
prolonged discussion and debate, the Permanent Settlement was introduced in Bengal
and Bihar in 1793 by Lord Cornwallis.
• Permanent Settlement had some special features i.e.
o The reminders and revenue collectors were converted into so many landlords.
They were not only to act as agents of the Government in collecting land revenue
from the riot, but also to become the owners of the entire land (over which they
were collecting revenue). Their right of ownership was made hereditary and
transferable.
o On the other hand, the cultivators were reduced to the low status of mere tenants
and were deprived of long-standing rights to the soil and other customary rights.
o The use of the pasture and forest lands, irrigation canals, fisheries, and
homestead plots and protection against enhancement of rent were some of the
cultivators’ rights which were sacrificed.
o In fact, the tenancy of Bengal was left entirely at the mercy of the zamindars.
This was done so that the zamindars might be able to pay in time the exorbitant
land revenue demand of the Company.
o The zamindars were to give 10/11th
of the rental they derived from the peasantry
to the state, keeping only 1/11th
for themselves. But the sums to be paid by them
as land revenue were fixed in perpetuity.

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o At the same time, the zamindar had to pay his revenue rigidly on the due date
even if the crop had failed for some reason; otherwise his lands were to be sold.
o John Shore, the man who planned the Permanent Settlement and later succeeded
Cornwallis as Governor-General, calculated that if the gross produce of Bengal
be taken as 100, the Government claimed 45, zamindars and other intermediaries
below them received 15, and only 40 remained with the actual cultivator.
Benefits of Permanent Settlement
• Before 1793, the Company was troubled by fluctuations in its chief source of income,
i.e. the land revenue. The Permanent Settlement guaranteed the stability of income.
• The Permanent Settlement enabled the Company to maximize its income as land
revenue was now fixed higher than it had ever been in the past.
• Collection of revenue through a small number of zamindars seemed to be much simpler
and cheaper than the process of dealing with lakhs of cultivators.
• The Permanent Settlement was expected to increase agricultural production.
• Since the land revenue would not be increased in future even if the zamindar's income
went up, the latter would be inspired to extend cultivation and improve agricultural
productivity.
Ryotwari Settlement
• The establishment of British rule in South and South-Western India brought new
problems of land settlement. The officials believed that in these regions there were no
zamindars with large estates with whom settlement of land revenue could be made and
that the introduction of zamindari system would upset the existing state of affairs.
• Many Madras officials led by Reed and Munro recommended that settlement should
therefore be made directly with the actual cultivators.

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• The system they proposed, is known as the Ryotwari Settlement, under which the
cultivator was to be recognized as the owner of his plot of land subject to the payment of
land revenue.
• The supporters of the Ryotwari Settlement claimed that it was a continuation of the state
of affairs that had existed in the past.
• Munro said: "It is the system which has always prevailed in India".
• The Ryotwari Settlement was introduced in parts of the Madras and Bombay
Presidencies in the beginning of the 19th
century.
• The settlement under the Ryotwari system was not made permanent. It was revised
periodically after 20 to 30 years when the revenue demand was usually raised.
Mahalwari System
1) A modified version of the zamindari settlement, introduced in the Gangetic valley, the
North-West Provinces, parts of Central India, and Punjab, was known as
the Mahalwari System.
2) The revenue settlement was to be made village by village or estate (mahal) by estate
with landlords or heads of families who collectively claimed to be the landlords of the
village or the estate.
3) In Punjab, a modified Mahalwari System known as the village system was introduced.
In Mahalwari areas also, the land revenue was periodically revised.
4) Both the Zamindari and the Ryotwari systems, departed fundamentally from the
traditional land systems of the country.
5) The British created a new form of private property in land in such a way that the benefit
of the innovation did not go to the cultivators.
6) All over the country, the land was now made salable, mortgageable, and alienable. This
was done primarily to protect the Government's revenue.

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7) If land had not been made transferable or salable, the Government would find it very
difficult to realize revenue from a cultivator who had no savings or possessions out of
which to pay it.
8) The British by making land a commodity which could be freely bought and sold
introduced a fundamental change in the existing land systems of the country. The
stability and the continuity of the Indian villages were shaken, in fact, the entire
structure of the rural society began to break up.
2) What are the experience derived from the settlement policy of
India?
As agriculture has been the most important economic activity of the Indian people for
many centuries and it is the main source of income. Naturally, land revenue management and
administration need a proper care to handle because it was the most important source of income
for the state too. The establishment of East India Company worked as the tool of colonial
plunder which operated through monopoly of trade and realization of land revenue. To annihilate
the traditional Asiatic mode of production, the British Monocracy had converted India into its
landed estates and hastens the process of commercial revolution in India. They unleashed far
reaching changes in Indian agrarian structure in order to maximize extraction which slowed
down the country’s progressive development and raised the burden on the Indian peasantry.
Payment and settlement systems are the backbone of any economy. The last decade has
witnessed substantial developments in this area of activity across the country. There were two
important motivations behind the Permanent Settlement-one economic and the other political.
The first was the colonial state’s desire to ensure the regularity and permanence of revenue
income. There was a second motivation for Permanent Settlement. This was the political need to
secure the cooperation of a reliable landed elite. Acutely short of legitimacy, the colonial state
badly required a powerful native social class to act as a pillar of support to its rule. Security of
revenue supply and support of a powerful native social class were therefore understood to be the
most appropriate means to ensure the long-term survival of the colonial state in India. The
Company now sought to devise ways and means to make History of India their rule in a foreign
territory as durable as possible. But their lack of local knowledge and shortage of human

34. Page | 34
resources made it imperative to look for stable alliances.
Land reforms include regulation of ownership, operation, leasing, sales, and inheritance of land
(indeed, the redistribution of the land itself requires legal changes).In any country, the basis of all
economic activity is the land. If we examine the history of India, though there are instances of
considering land as private property by individuals who had control over it, the practice of
communities like that of tribal with collective ownership of land stands out. Land like many
other gifts of nature was considered free for all by many communities who didn’t bother fix
boundaries for private ownership. But the colonial rule by British saw a dramatic shift in the land
ownership pattern of India. Land of many tribal/forest communities was seized by British
cultivators and Zamindars, and land tax was widely collected through systems like Zamindari,
Ryotwari or Mahalwari.
Indian economy had been colonized on basis of two important things, first, the mode of
production specially the system of surplus extraction existing on the eve of the British conquests.
Other was the nature of the British Imperialism which transferred the Indian economy under the
impact of the industrial revolution. Basically, the comparison of all the settlement was made on
the basis of its territorial boundary, its assessment procedures and its impact on society and
social order. The immediate consequence of implementation of the Permanent Settlement was
both sudden and very dramatic, and one which nobody had apparently foreseen. By ensuring that
Zamindars' (Landlord) lands were held in perpetuity and with a fixed tax burden, they became
desirable commodities.
In addition, the government tax demand was inflexible and the British East India Company's
collectors refused to make allowances for times of drought, flood or other natural disaster. The
tax demand was higher than that in England at the time. As a result, many Zamindars
immediately fell into arrears. The Company's policy of auction of any Zamindari lands deemed
to be in arrears created a market for land which previously did not exist. Many of the new
purchasers of this land were Indian officials within the East India Company's government. These
bureaucrats were ideally placed to purchase lands which they knew to be under assessed, and
therefore profitable.

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The zamindari settlement in India was to some extent inevitable. Contary to the perception of
many officials who advocated the Ryotwari system, zamindari settlement was no official
blunder, born of haste and misunderstanding of the local situation. The long gestation of the
system is reflected in the various debates leading to its actual implementation in 1993.
The Annual Settlements under Raiyatwari are often misunderstood, and it is necessary to explain
that they are rendered necessary by the right accorded to the Raiyat of diminishing or extending
his cultivation from year to year. Their object is to determine how much of the assessment due
on his holding the Raiyat shall pay, and not to reassess the land. In these cases where no change
occurs in the Raiyats holding a fresh Potta or lease is not issued, and such parties are in no way
affected by the Annual Settlement, which they are not required to attend. John Stuart Mill,
Examiner of the India Office, "Return to an Order of the House of Commons (June 97), showing
under what tenures, and subject to what Land Tax, lands are held under the several Presidencies
of India.
The Raiyatwari system is associated with the name of Sir Thomas Munro, who was appointed
Governor of Madras in May 1820. Subsequently, this system was extended to the Mumbai area
under the supervision of Thomas Reid. Munro gradually reduced the rate of taxation from one
half to one third of the gross produce, even then an excessive tax. The levy was not based on
actual revenues from the produce of the land, but instead on an estimate of the potential of the
soil; in some cases, more than 50% of the gross revenue was demanded. Half the gross produce
of the soil is demanded by Government, and this, which is nearly the average rate wherever there
is not a Permanent Settlement, is sadly too much to leave an adequate provision for the present".
Basically, the Raiyatwari system was more pragmatic than doctrinal. By that time the local chiefs
were mostly eliminated or reduced to insignificance. The contact of the administration with each
individual farmer, implied in the Raiyatwari system appeared more conducive to the interest of
the state, which could itself asses the cultivated area and the income of the taxpayer, and which
could itself carry out the collection of taxes. This system also the advantage for the peasant
would be liberated from the oppressive domination of a big landowner. Lastly, even though
prejudicial to the landed gentry where it existed, this system perturbed less, apparently at least,

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the customs and social balances of the rural world.
The Mahalwari system was introduced by 1822 with the estate or mahal proprietary bodies
where lands belong jointly to the village community technically called the body of co-shares.
The body of co-shares is jointly responsible for the payment of land revenue though individual
responsibility was not left out completely. The question of introducing a settlement of land
revenue in the ceded and conquered provinces came to be the fore by the coming of 19th century.
However, this system was started only by passing the Regulation VII of 1822 which the practical
implication of Mackenzie‟s minute of 1819. The system had been broke down because of the
excessive state demand and rigidity in its working and collection of land revenue. In a typically
Mahalwari village, the co-sharers are actually the cultivators. According to J. S. Mill, „the
peasant proprietors compound with the state for a fixed period. The proprietors did not engage
themselves individually with the government, but by villages.
Under the Raiyatwari settlement the government deals directly with the cultivators and
recognizes no middlemen. Each village is carefully surveyed, and every cultivator‟s holding or
plot of land in it was marked and separately numbered. Village maps with accurate boundary
lines, classification of the soil, and the names of the occupants, are carefully compiled and
preserved, and the revenue was assessed on each occupant. This right of occupancy can be
inherited and transferred by the peasants; hence there was some amount of sub-letting even in the
Raiyatwari provinces. In other respects the method of assessment was the same as in the
Mahalwari settlement. The Zamindari and Raiyatwari areas differed in the pattern of their
subsequent development. One important determinant was investment. In Zamindari area, the
government left the responsibility of making investment to the Zamindars. In Raiyatwari areas,
they implicitly or explicitly assumed this responsibility.
Perhaps there was an element of calculation too behind this discussion. Taxes being fixed forever
in the Zamindari areas, the government could not hope to recover returns to increased asset value
of the land in the form of taxes. In Ryotwari the road remained open. This was one of the
reasons, but perhaps not the only one, why irrigation development occurred to a greater extent in
the Ryotwari areas. Further, revenue farming had already weakened the official information-

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gathering system in the villages on the eve of the Permanent settlement. Consequently,
Zamindari areas continued for long to remain statistical back holes.
When new areas came under British rule the settlements' made rekmbled either the ryotwari or
the mahalwari. Thus Punjab came under the mahalwari, as did a large part of central India under
a slightly modified form known as malguzari, In Awadh,-after the revolt of 185? The
government recognised the talqudars Ag proprietors so as to ensure that they supported it in any
future revolt. The pssessment itself was mahalwari. An ever-present theme throughout our
discussion has been that the drive to collect B large revenue was central to British Policy.
Sometimes this led to the development of a land market - to the sale and purchase of land. But at
other times, the State's demands were so heavy that no purchasers were to be found. The need to
collect so much was itself made necessary by the heavy expenditures of the Government in India,
and its need to send veg slims to britain for its expenses there.
Certain Settlement Policy Limitations:-
When Cornwallis introduced the Permament Settlement, he had hoped that it would be replicated
in other parts of India. However, the limitations of the system soon became apparent to Company
officials. A major limitation was that it left the state with no option to increase revenues. This
was a particularly strong defect at a time when regular warfare demanded greater supply of
funds. Some officials in fact thought that in 1793 the zamindars had got off all too lightly. At any
rate, in most places a pre-existing class of landholders like Bengal zamindars were difficult to
find. In addition, Ricardian rent theories and a new found love for yeomen farmers among the
officials following the Scottish enlightenment produced a marked distrust of the zamindars
History of India as an unproductive intermediary group denying the state its legitimate share of
agricultural surplus.
The permanent settlement by creating a rich and leisured class has fostered the accumulation of
capital, and large industries may be rendered possible in eastern India by the financial banking of
Zamindars, and acts as a body of middleman between the state and cultivator, who have
identified themselves with British rule, and have always given loyal help in the cause of good
administration. Other hand under the Mahalwari and Ryotwari settlement, state is a landowner

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with all the advantages of a monopolist. The competition among landlords for tenants which
Ricardo‟s theory of rent presupposes, is wanting here, because there is only one landlord that is
the government.
The Raiyat was at the mercy of the state-proprietors and the rent here being a monopoly rent
must theoretically be an element in the price of agricultural produce The government lets the
land only in very small plots, averaging 5 acres each, so that agriculture on a large scale is
impossible, even when a capitalist is ready to undertake it. The chance of enhancement of the
revenue at every periodical settlement discourages industry and the investment of the Raiyaty‟s
capital in land.
The Raiyat, having no right of property in his holding, has no inducement to become a developed
agriculturalist. Capital cannot accumulate from the pursuit of agriculture, because the bare
subsistence is left to the Raiyats, and the surplus produce of the land is „swept into the coffer of
the state.A revenue system administrated by petty government servants according to fixed rules
is sure to be inelastic, and the Raiyats are likely to be ruined by the strict enforcement of the state
dues in the years of famine, unless remission of revenue is promptly ordered by the head of the
government.
3) Explain marginalization and Concept of inclusive Planning.
Marginalization means when a certain person or a sect of people is made to feel of lesser
importance, by those in power. Marginalized persons are forced to the periphery or the edge of
society. This, in turn, robs them of the facilities and opportunities enjoyed by the non-
marginalized sections of society.
Marginalization starts a chain of events that only further the plight of the marginalized. Their demands are
usually overheard and their desires and dreams are ignored by society. The Indian constitution strictly asks us to
celebrate thediversityof ourpopulationand treat all its citizens as equals. But there are a few sections of our
society that have definitely been marginalized by us. Let us talk about them in our attempt at understanding
marginalization.
Inclusive Planning
A process where all stakeholders are involved in its development. It is constituted by the

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teaching, non-teaching, the students, representatives for the industry, and other relevant
stakeholders.
Concept of inclusive Planning
The concept of ‘Inclusive Growth’ finds place more frequently in the debate and discussion in
the Parliament, in the speeches of our political leaders and policy-makers, particularly of our
President, Prime Minister and Finance Minister, more particularly since March, 2007. Also
varied inclusions such as financial inclusion, social inclusion, educational inclusion, health
inclusion, employment inclusion is found in the mass media and literature on ‘Inclusive Growth’
published so far. It is really a surprise for those who are keenly observing the Indian economy as
to how all of sudden the policy-makers have started thinking of including the downtrodden
people into the growth process. Two things are clear from this change in the thinking process.
One, the increased growth rate of Gross Domestic Product (GDP), which was expected to solve
the problems in India, has miserably failed to yield the results desired by the advocates of
market-led and private sector-led growth. Two, unless something else is done, the higher growth
rate of GDP alone cannot solve such problems of the ordinary people as poverty, illiteracy, ill-
health, unemployment, social unrest and terrorism. The Government aimed at promoting
‘inclusive growth’ as it recognized that high national income growth alone did not address the
challenge of employment promotion, poverty reduction and balanced regional development or
improving human development (The Hindu, 23 May, 2007).
The concept of inclusiveness involves four attributes:
Opportunity: Is the economy generating more and varied ways for people to earn a living and
increase their incomes over time?
Capability: Is the economy providing the means for people to create or enhance their
capabilities in order to exploit available opportunities?
Access: Is the economy providing the means to bring opportunities and capabilities together?
Security: Is the economy providing the means for people to protect themselves against a
temporary or permanent loss of livelihood?

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4) Explain micro and macroeconomics.
Microeconomics talks about the actions of an individual unit, i.e. an individual, firm, household,
market, industry, etc. On the other hand,
the Macro Economics studies the economy, i.e. it assesses not a single unit but the combination
of all i.e. firms, households, nation, industries, market, etc.
ASIS FOR
COMPARISON
MICROECONOMICS MACROECONOMICS
Meaning The branch of economics that
studies the behavior of an
individual consumer, firm, family
is known as Microeconomics.
The branch of economics that
studies the behavior of the whole
economy, (both national and
international) is known as
Macroeconomics.
Deals with Individual economic variables Aggregate economic variables
Business Application Applied to operational or internal
issues
Environment and external issues
Tools Demand and Supply Aggregate Demand and Aggregate
Supply
Assumption It assumes that all macro-
economic variables are constant.
It assumes that all micro-economic
variables are constant.
Concerned with Theory of Product Pricing,
Theory of Factor Pricing, Theory
of Economic Welfare.
Theory of National Income,
Aggregate Consumption, Theory of
General Price Level, Economic
Growth.
Scope Covers various issues like
demand, supply, product pricing,
factor pricing, production,
consumption, economic welfare,
etc.
Covers various issues like, national
income, general price level,
distribution, employment, money
etc.

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Importance Helpful in determining the prices
of a product along with the prices
of factors of production (land,
labor, capital, entrepreneur etc.)
within the economy.
Maintains stability in the general
price level and resolves the major
problems of the economy like
inflation, deflation, reflation,
unemployment and poverty as a
whole.
Limitations It is based on unrealistic
assumptions, i.e. In
microeconomics it is assumed
that there is a full employment in
the society which is not at all
possible.
It has been analyzed that 'Fallacy of
Composition' involves, which
sometimes doesn't proves true
because it is possible that what is
true for aggregate may not be true
for individuals too.
Definition of Microeconomics
Microeconomics is the branch of economics that concentrates on the behavior and performance
of the individual economic agents within the economy such as consumers, family, industry,
firms, etc. It ascertains how the limited resources are allocated among various individuals to
satisfy their wants? As well as it specifies the conditions for the best possible utilization of the
resources, in order to attain maximum output and social welfare.
Here, the demand plays a key role in determining the quantity and the price of a product along
with the price and quantity of related goods (complementary goods) and substitute products, so
as to make a judicious decision regarding the allocation of scarce resources, concerning their
alternative uses.
Microeconomics analyses how individuals and households spend their income? How do people
decide what amount to save for future contingencies? What set of goods and services best fulfils
their needs and wants, in the limited income?
It also determines what products and how many products the firm should manufacture to sell? At
what price the firm should offer its goods and services to the target audience? What sources of
finance are to be used by the firm to commence or operate the business? How many and at what
rate the workers are to be hired to work for the firm? When should the firm expand, downsize

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and close the business?
Definition of Macro Economics
In macroeconomics, the entire economic phenomena or the overall economy is talked about.
Basically, it focuses on the behavior and performance of aggregate variables and those issues
which affect the whole economy.
It includes regional, national and international economies and covers the major areas of the
economy like unemployment, poverty, general price level, total consumption, total savings, GDP
(Gross Domestic Product), imports and exports, economic growth, globalization, monetary/
fiscal policy, etc.
Here we discuss, how the equilibrium is attained as a result of changes in the macroeconomic
variables. It ascertains the level of economic activity in the economy. What is the rate of
unemployment, poverty and inflation in the country? What are the issues that result in speeding
up or slowing down of the economy? What is the standard of living of people in the country?
What is the cost of living in the country?
Further, macroeconomics not only discusses issues with which the economy goes through but
also helps in resolving them, thereby enabling it to function efficiently.
Key Differences between Micro and Macro Economics
The points given below explains the difference between micro and macroeconomics in detail:
1. Microeconomics studies the particular segment of the economy, i.e. an individual,
household, firm, or industry. It studies the issues of the economy at an individual level.
On the other hand, Macroeconomics studies the whole economy, that does not talk about
a single unit rather it studies aggregate units, such as national income, general price level,
total consumption, etc. It deals with broad economic issues.
2. Microeconomics stresses on individual economic units. As against this, the focus of
macroeconomics is on aggregate economic variables.

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3. Microeconomics is applied to operational or internal issues, whereas environmental and
external issues are the concern of macroeconomics.
4. The basic tools of microeconomics are demand and supply. Conversely, aggregate
demand and aggregate supply are the primary tools of macroeconomics.
5. Microeconomics deals with an individual product, firm, household, industry, wages,
prices, etc. Conversely, Macroeconomics deals with aggregates like national income,
national output, price level, total consumption, total savings, total investment, etc.
6. Microeconomics covers issues like how the price of a particular commodity will affect its
quantity demanded and quantity supplied and vice versa. In contrast, Macroeconomics
covers major issues of an economy like unemployment, monetary/ fiscal policies,
poverty, international trade, inflationary increase in prices, deficit, etc.
7. Microeconomics determine the price of a particular commodity along with the prices of
complementary and the substitute goods, whereas the Macroeconomics helps maintain
the general price level, as well as it helps in resolving major economic issues like
inflation, deflation, disinflation, poverty, unemployment, etc.
8. While analyzing any economy, microeconomics takes a bottom-up approach, whereas the
macroeconomics considers a top-down approach.
5) Explain the concepts of demand and supply.
Economics is a study of market that comprises a group of buyers and sellers of a particular
product or service.
The working of the market system is governed by two forces, demand and supply.
These two forces play a crucial role in determining the price of a product and size of the
market.
“The demand for goods is schedule of the amounts that buyers would be willing to purchase
at all possible prices at any one instant of time”- Prof Mayers.
Demand refers to the willingness or ability of a buyer to pay for a particular product. In other
words demand can be defined as the quantity of a product that a buyer desires to purchase at
a specific price and time period The’ demand for a product is influenced by a number of

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factors, such as price of the product, change in customers’ preferences, and standard of
living.
The demand for a product in the market is governed by the law of demand, which states that
the demand for a product decreases with increase in its prices and vice versa, while other
factors are constant. In the market system, buyers constitute the demand for a product, while
sellers represent the supply side of the product in the market.
Concept of Supply
Supply refers to the quantity of a product that a seller agrees to sell in the market at a particular
price within a specific point of time. There are various determinants of supply, including price of
a product, cost of production, government policies, and technology.
Unlike demand, the law of supply expresses the direct relationship between the supply and price
of a product, while other factors remaining the same. In simple words, the law of supply states
the supply of a product increases with increase in its price other factors at constant.
The interaction between demand and supply helps in determining the market equilibrium price of
a product. Equilibrium price refers to the price where the quantity demanded of a product by
buyers is equal to the quantity supplied by sellers.
In other words, equilibrium price is a price when there is a balance between market demand and
supply. The equilibrium price of a product can change due to various conditions, such as
reduction in cost of production, fall in the price of substitutes, and unfavorable climatic
conditions.
Concept of Demand:
Theoretically, demand can be defined as a quantity of a product an individual is willing to
purchase at a specific point of time.
According to Prof. Benham, “The demand for anything, at a given price is the amount of it which
will be bought per unit of time at the price.”
According to Prof Mayers, “The demand for goods is schedule of the amounts that buyers would
be willing to purchase at all possible prices at any one instant of time.”
From the aforementioned definitions, it can be concluded that demand implies a desire supported

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by an ability and willingness of an individual to pay for a particular product. If an individual
does not have sufficient resources or purchasing power to buy a particular product, then his/her
desire alone would not be regarded as demand.
The demand for a product is always defined in reference to three key factors, price, point of time,
and marketplace. These three factors contribute a major part in understanding the concept of
demand. The omission of any of these factors would make the concept of demand meaningless
and vague.
For example, the statement, “the demand for an ABC product is 200” neither conveys any
meaning, nor does have any use for economic analysis or business decision making. On the other
hand, the statement, “the demand for milk is 100 litres per day at a price of Rs. 15 per litre in
City A.” provides a clear understanding of demand.
6) Explain the Economics of Scale in detail.
Economies of scale are cost advantages reaped by companies when production becomes
efficient. Companies can achieve economies of scale by increasing production and lowering
costs. This happens because costs are spread over a larger number of goods. Costs can be both
fixed and variable.
The size of the business generally matters when it comes to economies of scale. The larger the
business, the more the cost savings.
Economies of scale can be both internal and external. Internal economies of scale are based on
management decisions, while external ones have to do with outside factors.
Economies of scale are an important concept for any business in any industry and represent the
cost-savings and competitive advantages larger businesses have over smaller ones.
Most consumers don't understand why a smaller business charges more for a similar product sold
by a larger company. That's because the cost per unit depends on how much the company
produces. Larger companies are able to produce more by spreading the cost of production over a
larger amount of goods. An industry may also be able to dictate the cost of a product if there are
a number of different companies producing similar goods within that industry.

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There are several reasons why economies of scale give rise to lower per-unit costs. First,
specialization of labor and more integrated technology boost production volumes. Second, lower
per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of
capital. Third, spreading internal function costs across more units produced and sold helps to
reduce costs.
Internal functions include accounting, information technology, and marketing. The first two
reasons are also considered operational efficiencies and synergies. The second two reasons are
cited as benefits of mergers and acquisitions.
❖ Internal Versus External Economies of Scale
As mentioned above, there are two different types of economies of scale. Internal economies are
borne from within the company. External ones are based on external factors.
Internal economies of scale happen when a company cuts costs internally, so they're unique to
that particular firm. This may be the result of the sheer size of a company or because of decisions
from the firm's management. Larger companies may be able to achieve internal economies of
scale—lowering their costs and raising their production levels—because they can buy resources
in bulk, have a patent or special technology, or because they can access more capital.
External economies of scale, on the other hand, are achieved because of external factors, or
factors that affect an entire industry. That means no one company controls costs on its own.
These occur when there is a highly-skilled labor pool, subsidies and/or tax reductions, and
partnerships and joint ventures—anything that can cut down on costs to many companies in a
specific industry.
❖ Limits to Economies of Scale
Management technique and technology have been focusing on limits to economies of scale for
decades.
Set-up costs are lower due to more flexible technology. Equipment is priced more closely to
match production capacity, enabling smaller producers such as steel mini-mills and craft brewers
to compete more easily.

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Outsourcing functional services make costs more similar across businesses of various sizes.
These functional services include accounting, human resources, marketing, treasury, legal, and
information technology.
Micro-manufacturing, hyper-local manufacturing, and additive manufacturing (3D printing) can
lower both set-up and production costs. Global trade and logistics have contributed to lower
costs, regardless of the size of an individual plant. In aggregate, the average cost of trade-able
goods has been falling in industrial countries since about 1995.
❖ Examples of Economies of Scale
In a hospital, it is still a 20-minute visit with a doctor, but all the business overhead costs of the
hospital system are spread across more doctor visits and the person assisting the doctor is no
longer a degreed nurse, but a technician or nursing aide.
Job shops produce products in groups such as shirts with your company logo. A significant
element of the cost is the set-up. In job shops, larger production runs lower unit costs because the
set-up costs of designing the logo and creating the silk-screen pattern are spread across more
shirts.
In an assembly factory, per-unit costs are reduced by more seamless technology with robots.
A restaurant kitchen is often used to illustrate how economies of scale are limited: more cooks in
a small space get into each other's way. In economics charts, this has been illustrated with some
flavor of a U-shaped curve, in which the average cost per unit falls and then rises. Costs rising as
production volume grows is termed "dis-economies of scale." (For related reading, see "Some of
the Variables Involved in Economies of Scale")

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7) what are the various determinants of national income and explain
them in detail?
There are many determinants or factors which influence the size of the national income. They, in
brief, are as follows:
The stock of factors of production
One of the very important factors which influences the size of the national income is the quality
and quantity of the country's stock of factors of production. The factors of production are land,
labour, capital and organization. Land supplies man with gifts of nature. It provides him with
agricultural goods and. raw material for production. The production of land depends upon
fertility of the soil, latitude, climate and irrigation system in the country. If the land is fertile and
is not handicapped in any way say by salinity, water logging, shortage of rainfall and adverse
climate, the size of the national income will be quite large, if the quality of land is poor, the size
of the national income will be small.
Labour:
The second factor of production, i.e., labour is by no means less important. This can be judged
from it that if land is not aided by human labour, it cannot produce anything except the wild
vegetation. The size of the national income greatly depends upon the quality and quantity of
labour in the country. If the labour is efficient and its size is consistent with the means of
subsistence, the size of the national income will be large and if the labour is underfed, under
clothed and under-housed unskilled, and has no ambition to rise, the size of the national income
will be small.
Capital:
The volume of production is also very much influenced by the! quality and quantity of capital
available in the country. Capital now-a-days is considered to be the lifeblood of the modern
industry. If the capital consists of primitive tools, the size of the national income cannot be large.
But if modern types of plants are used for production, then they can enhance the productive
capacity of a country.

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Enterprise:
The size of the national income also greatly depends upon! the number and skill of the
entrepreneurs. If the captains of the industries! are efficient, they will combine; the various
factors of production to the! optimum proportion and so the volume of total production will be
quite large, if managerial skill is lacking in the country, the size of the national income will be
small.
State of technical knowledge:
State of technical knowledge is also one of the very important factors which influences the size
of the national income. The methods of production now-a-days have become so much
roundabout that unless advance technical knowledge is available in the! country, they cannot be
adopted. The roundabout methods of production have considerably increased the production
capacity of the country. If the state of technical knowledge is poor in the country, the size of the
national income will be small, but if advance technical knowledge is available, then the size of
the national income will be large.
Political Stability:
Political instability greatly hampers economic progress. If there is political stability in the
country, the production can be maintained at the highest level. The size of the national income
will be large. In case of political instability, the production will be adversely affected and so the
size of the national income will be small.
8) What is quality of life? explain humans development index.
Quality of life: -
Quality of life is an overarching term for the quality of the various domains in life. It is
a standard level that consists of the expectations of an individual or society for a good life. These
expectations are guided by the values, goals and socio-cultural context in which an individual
life. It is a subjective, multidimensional concept that defines a standard level for emotional,
physical, material and social well-being. It serves as a reference against which an individual or
society can measure the different domains of one’s own life. The extent to which one's own life
coincides with this desired standard level, put differently, the degree to which these domains give

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satisfaction and as such contribute to one's subjective well-being, is called life satisfaction. for
example, it includes the following sub domains of quality of life:
• Belief and ideas
• Creativity and recreation
• Enquiry and learning
• Gender and generations
• Identity and engagement
• Memory and projection
• Well-being and health
Human development index
Definition:
The Human Development Index (HDI) is a statistical tool used to measure a country's overall
achievement in its social and economic dimensions. The social and economic dimensions of a
country are based on the health of people, their level of education attainment and their standard
of living.
• We are living in a complex world. People, nations and economies are more connected than
ever, and so are the global development issues we are facing.
• From urbanization to the creation of jobs for millions of people, the world’s challenges will
only be solved using approaches that take both complexity and local context into account.
• Human development data, analysis and reporting have been at the heart of that paradigm.
UNDP’s Human Development Index (HDI) has captured human progress, combining
information on people’s health, education and income in just one number. Over the years, the
HDI has served as a comparative tool of excellence, and as a reliable platform for vigorous
public debates on national priorities.
• Human Development Index (HDI) has captured human progress, combining information on
people’s health, education and income in just one number. Over the years, the HDI has
served as a comparative tool of excellence, and as a reliable platform for vigorous public
debates on national priorities.

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• The Human Development Report (HDR) is an annual report published by the Human
Development Report Office of the United Nations Development Programme (UNDP).
• The Human Development Report is an independent report, commissioned by the United
Nations Development Programme(UNDP).
ORIGIN OF HUMAN DEVLOPMENT INDEX
• These were devised and launched by Pakistani economist Mahbub ul Haq in 1990, and
had the explicit purpose "to shift the focus of development economics from national
income accounting to people-centered policies".
• To produce the Human Development Reports, Mahbub ul Haq formed a group of
development economists including Paul Streeten, Frances Stewart, Gustav Ranis, Keith
Griffin, Sudhir Anand, and Meghnad Desai.
• Nobel laureate Amartya Sen utilized Haq's work in his own work on human capabilities.
• Haq believed that a simple composite measure of human development was needed to
convince the public, academics, and politicians that they can and should evaluate
development not only by economic advances but also improvements in human well-
being.
9) What are the various economic principles of land use planning?
→ The economic principles related to land are:
1. Principle of Supply and Demand
2. Principle of Anticipation
3. Principle of balance
4. Principle of Conformity
5. Principle of Substitution
6. Principle of Externalities
7. Others
1. SUPPLY AND DEMAND
→ The principle of Supply and Demand is explained by three inter-related terms: supply,
demand and price

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→ At a given level of supply, if demand increases, then the price increases. Conversely, given
that same level of supply, if demand decreases, then price decreases.
→ At a certain level of demand, if the supply increases, then the price decreases. Given the
same level of demand, if the supply decreases, then the price increases.
→ Specifically related to real estate, assume that the population in a certain community is
growing by 100 households per year. If there are no additions to the existing housing stock
(supply), the demand will certainly increase, and prices will accordingly escalate. If the
supply is increased by 200 homes per year, then supply will exceed demand, and prices will
tend to decline.
2. ANTICIPATION
→ The principle of anticipation holds that value is simply a function of the present worth of
future benefits, that is, people are paying current dollars for future benefits. These future
benefits may take the form of intangibles.
→ When purchasing investment type property (shopping centers, office buildings, hotels), the
anticipated benefits are future dollars. In other words, the buyer is exchanging present dollars
for property that will hopefully produce more dollars in the future. The principle of
anticipation is the basis for the income approach.
→ Under this principle, the past is only important because it tends to give an indication of what
is to be expected in the future.
→ A buyer for a home may look at trends in home prices, and community growth patterns, all of
which have occurred in the past, in order to determine which way the neighborhood is likely
to continue in the future. This past information gives the buyer insight as to what to pay for
the property today.
3. BALANCE
→ The principle of balance relates both to the property as well as the environment in which the
property is located. Related to the property itself, this principle holds that value is achieved
and maintained when all elements are in proper proportion.
→ The principle of balance also relates to land use. Under the optimum land use concept, there
would be a proper blend of single-family residences, apartments, complementary shopping