Net National Product (NNP)

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NNP  Net National Product (NNP)  Net National Product (NNP) of an economy is the GNP after deducting the loss due to ‘depreciation’. The formula to derive it may be written like this: NNP = GNP – Depreciation or, NNP = GDP + Income from Abroad – Depreciation. The different uses of the concept of NNP are as given below: (i) This is the ‘National Income’ (NI) of an economy. Though, the GDP, NDP, and GNP, all are ‘national income’ they are not written with capitalized ‘N’ and ‘I’. (ii) This is the purest form of the income of a nation. (iii) When we divide NNP by the total population of a nation we get the ‘per capita income’ (PCI) of that nation, i.e., ‘income per head per year’. A very basic point should be noted here that this is the point where the rates of depreciation followed by different nations make a difference. Higher the rates of depreciation lower the PCI of the nation (whatever be the reason for it logical or artificial as in the case of depreciation being used as a...
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BEIJING CONSENSUS

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 BEIJING CONSENSUS

BEIJING CONSENSUS

Economic rise of China since mid-1980s needs no introduction. Whether this rise was led by any conscious development model has been an issue of scholarly debate. Finally, the idea of Beijing Consensus was forwarded by Joshua Cooper Remo in 2004.

     Also known as Chinese Model of economic development, this refers to the policies which were followed by Deng Xiaoping since 1976 (the year Mao Zedong died). This model is believed to be forwarded as an alternative to the Washington Consensus (i.e., an anti-Washington Consensus view) for the developing countries. Over the time experts interpreted this model in different ways rather it is believed to be based on three main pillars-

1. Constant experimentation and innovation;

2. Peaceful distributive growth with gradual reforms;

3. Self-determination and inclusion of selective foreign ideas.

The model received higher attention in wake of the great recession hitting the western economies (when China remained still dynamic)—experts portraying it as China’s alternative to the liberal-market approach of the Washington Consensus .Whether the developing countries should embrace the Chinese model has been a contentious issue. Experts believe that the things which worked for China may not work for others looking at the heterogeneity of Chinese performance . Again, in wake of the rise of China, experts almost declared the ‘death of market’ and ‘rise of state-led growth’ rather such hurried conclusions might be misplaced because China’s best economic performance came when market was the dominant force .

Till 2010 we find rising interest in this model across the developing world but once the Chinese growth took a downturn in recent times, experts have advised double caution in blindly following this model. Some experts believe that the rising protectionism across the world (especially the USA, the UK and other places) has been caused by an inclination towards this model only.

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