How to frame a Project Topic in Economics-II? 1.

Look out for interesting stories that captures use of economic principles in statute/custom/case law. It can be a regulation (domestic or international) or order or a case or even a custom. For example, I have picked up one news item from August 28, 2008 issue of Business Line, Delhi Edition, p. 10. The title is as follows: Govt to go slow on steel quality control order: Unorganised sector to be kept out of purview initially. 2. Locate the issues, including theoretical ideas in the stories. In the one mentioned above that I have picked, following are the issues: (a) The decision by the Government is to ensure quality of steel items so as to make Indian products globally as well as locally competitive when import of these items has begun. This is a policy matter. (b) While efficiency is addressed by this order, government also attempts to ensure equity by keeping the unorganised sector out of its purview in a time bound manner. In other words, more time is given to some of the agents who are differentially placed, a principle well established in economic laws [for example different treatment to developing countries and least developed countries in adhering to various WTO laws]. (c) The agency, Bureau of Indian Standards (BIS) has been entrusted the responsibility of implementation of the order including framing of the regulation. This basically illustrates the changing role of the government with more emphasis on regulatory power from being a direct goods/service provider. 3. Once you have located the issues, one has to identify the relevant theories, and frame the research questions accordingly. For instance, in this case they can be one of the following: (a) How justified is the concern that Indian steel products are not meeting the quality norms? Have there been disputes involving steel products in the international markets? Have the share of Indian products in the domestic market suffered? (b) Whether the institution, BIS, has the necessary resources, physical as well as human, to undertake this responsibility? Is it possible to find similar cases where a sound policy decision could not be executed because of these factors [say, Anti-Dumping authorities]? (c) Since over the years the size of the firms to be considered under this sector has been increased continuously, how justified is the claim that unorganised sectors be treated differently? (d) In order to ensure the implementation of the order, i.e. smooth transition of the unorganised sector from quality independent to quality conscious, what are the steps that the government is taking? One must note that, the very reason for the differential treatment is the inability of some of the firms due to lack of financial resources, knowledge and so on, and without external assistance they may never be in a position to produce quality products. It cannot be the case that, during this transition phase nothing is done, and at the end of it these firms turn ineligible to produce. 4. One has to focus on any one set of questions of the four above for a 4,000 word project. Once it is done, proceed accordingly, i.e., write the synopsis [Introduction, including nature and scope and limitations; theoretical ideas; research questions; literature review; methodology; selected bibliography] of 500 words maximum.

All the best.