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< Back The Relationship between Finance and Economies by Veer Sharma Studying the system interactions and linkages between banking, finance and governance. Macroeconomics Macroeconomics is a branch of economics that focuses on the study of the economy as a whole, rather than on individual markets or specific economic agents. It deals with the behavior, performance, structure, and decision-making of an entire economy, encompassing factors such as aggregate output, employment, inflation, economic growth, and the interactions between different sectors. Key areas of focus in macroeconomics include: A) Gross Domestic Product (GDP): Macroeconomists analyze the total value of goods and services produced within a country over a specific period. GDP is a fundamental measure of economic activity and is used to gauge the overall health and size of an economy. B) Unemployment: Macroeconomics examines the level of unemployment in an economy and seeks to understand its causes and consequences. It addresses questions about how changes in economic conditions impact the job market and labor force participation. C) Inflation: Macroeconomists study changes in the general price level of goods and services, known as inflation. They explore its causes, effects, and potential policy measures to control inflation and ensure price stability. D) Economic Growth: Understanding the factors that contribute to sustained economic growth is a central concern in macroeconomics. This involves analyzing productivity, technological advancements, investment, and other factors that influence an economy's capacity to expand over time. E) Fiscal and Monetary Policy: Macroeconomists assess the impact of government policies on the economy, such as fiscal policies (government spending and taxation) and monetary policies (central bank actions like interest rate adjustments and money supply management). They study how these policies can be used to influence economic performance and stability. F) International Trade and Finance: Macroeconomics also explores the interactions between economies on a global scale. It delves into topics like exchange rates, trade imbalances, and the impact of international economic events on a country's domestic economy. G) Business Cycles: Macroeconomists analyze the cyclical fluctuations in economic activity known as business cycles. These cycles consist of periods of economic expansion (boom) and contraction (recession), and understanding their causes and dynamics is a key focus of macroeconomic research. In essence, macroeconomics provides insights into how economic systems function as a whole, how they respond to external shocks and policy changes, and how government actions can impact overall economic well-being. It helps policymakers, economists, and businesses make informed decisions to manage and improve economic conditions at the national and international levels. Microeconomics Microeconomics is a branch of economics that focuses on the study of individual economic units and their behavior within markets. It examines the interactions between households, firms, consumers, and producers at a smaller, more localized level, as opposed to the broader perspective of macroeconomics, which looks at the economy as a whole. Key areas of focus in microeconomics include: A) Supply and Demand: Microeconomics analyzes how individual buyers and sellers interact in various markets. The concept of supply and demand is central to this analysis, as it explains how prices are determined based on the interaction between consumer demand and producer supply. B) Consumer Behavior: Microeconomists study how consumers make choices about purchasing goods and services. They examine factors such as individual preferences, utility, and budget constraints to understand how consumers maximize their satisfaction (utility) given their limited resources. C) Producer Behavior: Microeconomics also looks at how firms make decisions about production and pricing. It explores concepts like production costs, profit maximization, and market structure (e.g., perfect competition, monopoly, oligopoly) to understand how firms operate in different competitive environments. D) Market Structures: Microeconomics categorizes markets based on the number of sellers and buyers, their influence over price, and the nature of the goods being traded. Different market structures have distinct implications for pricing, competition, and efficiency. E) Resource Allocation: Microeconomics examines how scarce resources are allocated among competing uses. It delves into topics like opportunity cost, production efficiency, and factors of production (land, labor, capital, entrepreneurship) to understand how resources are utilized to produce goods and services. F) Welfare Economics: Microeconomists assess the overall welfare or well-being of society by analyzing the efficiency and equity implications of market outcomes. Concepts like consumer surplus, producer surplus, and market equilibrium are used to evaluate the desirability of various economic situations. G) Externalities and Market Failures: Microeconomics addresses situations where markets do not achieve efficient outcomes due to factors like external costs or benefits (externalities), public goods, and imperfect information. It explores how government intervention or policy measures might be necessary to address these market failures. In summary, microeconomics provides insights into the behavior of individual economic agents and their interactions within markets. It helps to understand how prices are determined, how consumers and producers make choices, and how resources are allocated in various economic settings. Microeconomic analysis is essential for making informed decisions about resource allocation, market regulation, and understanding the intricacies of specific economic activities. Financial Systems A financial system is a set of institutions, such as banks, insurance companies, and stock exchanges, that permit the exchange of funds. Financial systems exist on firm, regional, and global levels. Borrowers, lenders, and investors exchange current funds to finance projects, either for consumption or productive investments, and to pursue a return on their financial assets. The financial system also includes sets of rules and practices that borrowers and lenders use to decide which projects get financed, who finances projects, and terms of financial deals. There are four components of Financial Systems – A) Financial institutions - Financial institutions play a significant role in bringing together lenders and borrowers. This is done by using various financial instruments and services, all of which contribute to an efficient financial system. The financial institution is one of the main components which ensure liquidity in the financial system through the development of credit and other liquid assets. B) Financial services - Financial services include credit rating agencies, mutual funds, pension funds, venture capital, and other institutions that are part of the financial system. Financial services are an important component of the financial system due to their specific tasks. C) Financial markets - A financial market is where both the creation of new financial assets and the trading of existing ones occur. Financial markets move funds from savers to borrowers much more efficiently and ensure that there is always liquidity. D) Financial instruments - Financial instruments are another main component of the financial system. Financial instruments are papers that entitle the buyer to future income from the seller. That's because there are different needs between investors and those looking for credit. Risk Management What is Risk Management? Risk management involves identifying, analyzing, and accepting or mitigating uncertainty in investment decisions. Put simply, it is the process of monitoring and dealing with the financial risks associated with investing. Risk management essentially occurs when an investor or fund manager analyzes and attempts to quantify the potential for losses in an investment, such as a moral hazard, and then takes the appropriate action (or inaction) to meet their objectives and risk tolerance. Importance of Risk Management? If an unforeseen event catches your organization unaware, the impact could be minor, such as a small impact on your overhead costs. In a worst-case scenario, though, it could be catastrophic and have serious ramifications, such as a significant financial burden or even the closure of your business. To reduce risk, an organization needs to apply resources to minimize, monitor and control the impact of negative events while maximizing positive events. A consistent, systemic and integrated approach to risk management can help determine how best to identify, manage and mitigate significant risks. Process of Risk Management: A) Identifying risks - Risk identification is the process of identifying and assessing threats to an organization, its operations and its workforce. For example, risk identification may include assessing IT security threats such as malware and ransomware, accidents, natural disasters and other potentially harmful events that could disrupt business operations. B) Risk analysis and assessment - Risk analysis involves establishing the probability that a risk event might occur and the potential outcome of each event. Risk evaluation compares the magnitude of each risk and ranks them according to prominence and consequence. C) Risk mitigation and monitoring - Risk mitigation refers to the process of planning and developing methods and options to reduce threats to project objectives. A project team might implement risk mitigation strategies to identify, monitor and evaluate risks and consequences inherent to completing a specific project, such as new product creation. Risk mitigation also includes the actions put into place to deal with issues and effects of those issues regarding a project. International Banking International banking refers to the financial services and activities that involve transactions and operations across national borders. It involves the movement of funds, assets, and capital between individuals, businesses, and institutions in different countries. International banking plays a crucial role in facilitating global trade, investment, and economic activities. Features of International Banking – A) Flexibility: This banking facility provides flexibility to multinational companies to deal in multiple currencies. The major currencies that multinational companies or individuals can deal with include the euro, dollar, pounds, sterling, and rupee. The companies with headquarters in other countries can manage their bank accounts and avail of financial services in other countries through this banking without any hassle. B) Accessibility: International banking provides accessibility and ease of doing business to companies from different countries. An individual or MNC can use their money anywhere around the world. This gives them the freedom to transact and use their money to meet any funds requirement in any part of the world. C) International Bank Transfers/Transaction: International banking allows the business to make international bill payments. The currency conversion facility allows the companies to pay and receive money easily. Also, benefits like overdraft facilities, loans, deposits, etc., are available every time for overseas transactions. Correspondent banking is very useful in such transactions. D) Accounts Maintenance: A multinational company can maintain the records of global accounts in a fair manner with the help of international banking. All the company’s transactions are recorded in the books of banks across the globe. By compiling the data and figures, the company’s accounts can be maintained. Investment Finance Investment finance refers to the allocation of funds or capital with the goal of generating returns or profits over a certain period of time. It involves the strategic deployment of financial resources into various assets, such as stocks, bonds, real estate, mutual funds, and other financial instruments, with the expectation of earning income or achieving capital appreciation. Objectives of Investment Finance – A) Wealth Accumulation: Individuals, businesses, and institutions invest their funds to grow their wealth over time. This can be achieved through capital gains (increase in the value of the invested assets) and/or income generated from dividends, interest, or rental payments. B) Capital Preservation: Some investments focus on preserving the initial capital while generating modest returns. These are often considered lower-risk investments, such as government bonds or certain types of savings accounts. C) Risk and Return Trade-Off: Investment finance involves assessing and managing the trade-off between risk and potential return. Generally, investments with higher potential returns are associated with higher levels of risk. D) Diversification: A key principle of investment finance is diversifying the investment portfolio across different asset classes and geographic regions to reduce risk. Diversification helps mitigate the impact of poor performance in any one investment. Corporate Finance Corporate finance refers to the financial activities and decisions made by corporations or businesses to manage their financial resources, optimize their capital structure, and make strategic financial decisions that maximize shareholder value. It involves a wide range of activities that revolve around obtaining and using funds effectively to achieve the company's goals and objectives. Objectives of Corporate Finance – A) Maximizing Shareholder Value: One of the primary objectives of corporate finance is to enhance the wealth of the company's shareholders. This involves making financial decisions that result in increasing the stock price, dividends, and overall returns for shareholders. B) Profitability: Corporate finance aims to generate sustainable profits by effectively managing the company's investments, operations, and expenses. Profitability ensures the company's ability to cover costs, fund growth, and provide returns to shareholders. C) Long-Term Growth: Companies strive for continuous growth and expansion to increase their market share, revenue, and profits. Corporate finance supports this objective by allocating resources to strategic investments and projects that contribute to the company's long-term success. D) Efficient Allocation of Resources: Effective corporate finance involves allocating financial resources, such as capital and investments, to projects and initiatives that offer the highest potential return. This ensures that resources are used efficiently and generate maximum value. Difference Between Investment and Corporate Finance – History of Money What is Money? Money doesn't always have value whether it's represented by a seashell, a metal coin, a piece of paper, or a string of code mined electronically by a computer. Money allows people to trade goods and services indirectly. It helps communicate the price of goods and provides individuals with a way to store their wealth. It is valuable as a unit of account—a socially accepted standard by which things are priced and with which payment is accepted. Throughout history, the concept of money has evolved from barter systems to complex financial instruments. Early societies traded goods directly, but as trade expanded, various commodities, such as shells, grain, and metals, were used as mediums of exchange. Metal objects eventually emerged as standardized forms of money, with ancient civilizations like the Greeks and Romans using coins. As economies grew, paper money emerged, initially representing promises to redeem precious metals. In the modern era, governments and central banks took control of money issuance. The gold standard linked currency values to a specific amount of gold, fostering global trade. The 20th century saw the transition to fiat money, backed by governments' legal tender and trust. The rise of electronic banking led to digital money, revolutionizing transactions. Today, cryptocurrencies, like Bitcoin, introduce decentralized and digital forms of money, challenging traditional financial systems. The history of money reflects humanity's quest for efficient and trusted mediums of exchange to facilitate trade and economic progress. Corporate Governance Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community. Since corporate governance provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. Benefits of Corporate Governance – A) Good corporate governance creates transparent rules and controls, provides guidance to leadership, and aligns the interests of shareholders, directors, management, and employees. B) It helps build trust with investors, the community, and public officials. C) Corporate governance can provide investors and stakeholders with a clear idea of a company's direction and business integrity. D) It promotes long-term financial viability, opportunity, and returns. Principles of Corporate Governance – Fairness: The board of directors must treat shareholders, employees, vendors, and communities fairly and with equal consideration. Transparency: The board should provide timely, accurate, and clear information about such things as financial performance, conflicts of interest, and risks to shareholders and other stakeholders. Responsibility: The board is responsible for the oversight of corporate matters and management activities. It must be aware of and support the successful, ongoing performance of the company. Part of its responsibility is to recruit and hire a CEO. It must act in the best interests of a company and its investors. Accountability : The board must explain the purpose of a company's activities and the results of its conduct. It and company leadership are accountable for the assessment of a company's capacity, potential, and performance. It must communicate issues of importance to shareholders. Entrepreneurial Finance Entrepreneurial finance refers to the specific area of finance that deals with the financial decisions, strategies, and challenges faced by entrepreneurs, startups, and small business owners. It focuses on the unique financial needs and opportunities that arise when individuals or groups launch new ventures or seek to grow and scale their businesses. The key aspects of Entrepreneurial Finance are – A) Startup Funding: Entrepreneurs often need capital to turn their innovative ideas into viable businesses. Entrepreneurial finance involves identifying and securing funding from various sources, including personal savings, family and friends, angel investors, venture capital, and crowdfunding. B) Business Valuation: Determining the value of a startup or small business is crucial for attracting investors, negotiating equity stakes, and making informed financial decisions. Valuation methods specific to startups and early-stage companies are used. C) Capital Structure: Deciding on the mix of equity and debt financing is important for entrepreneurs. Balancing financial risk and ownership control is a key consideration in determining the optimal capital structure. D) Bootstrapping: Many startups begin with limited resources and use creative strategies to operate and grow without external funding. Entrepreneurial finance includes effective bootstrapping techniques to stretch resources and minimize cash burn. E) Risk Management: Entrepreneurs face various financial risks, including market risks, technological risks, and regulatory risks. Managing and mitigating these risks is an integral part of entrepreneurial finance. F) Financial Planning: Developing a comprehensive financial plan that outlines revenue projections, expenses, and growth strategies is essential for startup success. Entrepreneurs use financial planning to guide their operations and secure funding. BIBLIOGRAPHY 1. Investopedia.com 2. Ibm.com 3. Studysmarter.co.uk 4. Efinancemanagement.com 5. Wikipedia.org 6. Frank ISC Economics standard 12 Previous Next

EduREPORTS EduREPORTS is a programme where we publish the research reports created by the graduating cohorts of the WorkEx Bootcamp and independent research submitted from our community on diverse topics such as technology, social welfare, and more. AI – A Necessary Evil? by Krisha Makharia Artificial Intelligence (AI) is rapidly transforming the way we all live, our personal life, our occupation, our education, our relationship with other human beings and non-living beings, how we get to fulfil our aspirations etc. AI (and generative AI) is the next biggest transformation we are all witnessing and luckiest to be part of this historical journey. Read More Consumer Pricing Behavior: An In-depth Analysis of Price Perception and Decision-Making by Samaarra Agarwal Consumer pricing behavior is a key and complex component of the contemporary market. Here, we analyze how people make decisions in their quest of value, which sits at the nexus of psychology, economics, and marketing. Read More Economics' Perspectives on Modern Finance by Dweej Desai ​ Read More Emerging Technology Trends in Finance by Rian Sanghavi This research paper explores the profound impact of emerging technology trends on the finance industry in the 21st century. It delves into key technological advancements such as big data, blockchain, machine learning (ML), and artificial intelligence (AI), examining their applications in finance and accounting. Read More Evolving Marketing Tools and Techniques by Nikita Khaitan Understanding the Switch from traditional to digital marketing. Nike as a case study and the role of AI, big data, and metaverse. Read More Indian Asset Management by Rishabh Keshiv Sehgal This report will cover various types of asset classes present in India, and deep dive into India's Asset Management industry with a comparison against global markets. Read More Mathematical Modeling of Business Processes by Angel Saraogi Understand how money, banking and the financial system intersect and work. Enhance decision-making, reduce costs, manage risks, and increase efficiency in order to boost competitiveness and success. Read More NGOs in the Indian Landscape by Dodda Teja Adarsh India as a country: Our eyes reach the stars, our feet are going down quicksand. With a robust state network system and a far-reaching executive, India is still not even close to even achieving universal access to basic services. This glaring gap is taken care of by the intricate NGO sector. Read More Nuclear Power: Boon or Bane by Janki Padia Several academicians believe that a mixed assortment of alternative energies will be needed if we are to replace fossil fuels and 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels and to secure net-zero emissions by 2050. However, nuclear power is not an easy pill to swallow, not even in the progressive or climate circles. Read More The Relationship between Finance and Economies by Veer Sharma Studying the system interactions and linkages between banking, finance and governance. Read More Artificial Intelligence: Boon or Curse? by Prachi Saswade Artificial Intelligence is used in almost every sector in the world today, extensively in the business world. There are many discussions about the impact of AI, both positive and negative. Read More Digital Communications by Yash Vadhar The marketing aspect of a business that exits in order to address people’s needs and wants by promoting certain products or even a business for that matter. Whilst all that even in current times stays to be true, there are advancements and developments that have now led to the innovation of a new type of marketing, known as Digital Age Marketing. Read More EduTech - The New Age Education by Anoushka Sen EduTech is a developing industry in education, that has been propelled by the COVID-19 pandemic. Learn about the key players, untapped areas, impact, and future prospects of the industry. Read More Essence of Digital Marketing by Zaynah Buhariwala How many of us bother to watch an entire advertisement between our much-loved YouTube content? The old paper board advertisements are now replaced with electric billboards, which change every 2 minutes. Insta ads and more, the future of marketing. Read More Finance, Banking and the Economy at large by Divyes Chakravarty Gain an understanding of how money, banking and the financial system intersect and work. The different concepts, principles and intricacies of money and more. Read More International Banking by Tarun Natarajan International banking is a complicated system that comprises of multiple structural subgroups, each of which performs a specific role. This study will be on the unique characteristics of international banks and the wide range of duties they perform. Read More Money, Banking and Finance by Ananya Jain Money and banking are necessary components of every current economic system, since they facilitate production and consumption activities, as well as financial transactions inside and beyond national boundaries. Since the end of the fixed exchange rate system (1946–1973), financial market transactions have increased in volume and scale globally, while the frequency and ferocity of financial crises have increased considerably. Read More Navigating the New Marketing Frontier by Maya Dave The landscape of marketing and communication has evolved significantly in the digital age. In a world driven by technology and data, it is crucial to explore and evaluate these techniques to make informed decisions in marketing and communication strategies. Read More Technological Advancements in Solar Power Generation by Samyukhta Kannan Bell Laboratories created the first silicon solar cell in 1954. This breakthrough sparked a flurry of new discoveries in the field of solar energy. Solar energy is the radiant light and heat from the Sun that is captured and used in a variety of methods. The technological advancements since have shown the growing potential to use this as a reliable energy source. Read More Reach out with your Research Name Email Phone Upload Your Report (PDF) Upload supported file (Max 15MB) Submit Thanks for submitting!

< Back NGOs in the Indian Landscape by Dodda Teja Adarsh India as a country: Our eyes reach the stars, our feet are going down quicksand. With a robust state network system and a far-reaching executive, India is still not even close to even achieving universal access to basic services. This glaring gap is taken care of by the intricate NGO sector. We will now explore deeply, the various aspects of this system that has developed over the years in India and how it is at the brink of exponential reform but at the same time struggling for revival and still reeling from the Covid-19 pandemic, while everyone still tries to imagine how India would have made it out of the crisis if not for these organizations. Are we about to bite the hand that fed us in the time of our need? HISTORY AND EVOLUTION The NGOs began in Gujrat in 1871 as the Bhil Seva Mandal. It began as a development movement for tribes. Following independence, Mahatma Gandhi sought to convert the Indian National Congress into a voluntary Public Service Organization, but his request was denied. Later, many service organizations based on Gandhian principles were founded by ardent Mahatma Gandhi supporters. Actually, there was a time when there were plenty in Gujarat and other parts of India as well. Seva, Eklavya, Disha, and others are among them. However, the actual registration of NGOs occurred only in the 1970s, and this surge in the numbers tells us a lot. The government readily accepted and encouraged NGOs. and the upsurge in their numbers. Post the independence period, there was a change in the perception of the government about the developmental activities and how they would be perceived and implemented by the government itself. Though in the 1950s in the 1960s it was assumed that the economic growth can only be achieved through state implementation of policies and poverty can be thus removed, this changed in the decades after that. Hello there were many welfare programs launched by the government to help the lowest of the poor communities and help them in participating in the various schemes that are aimed at improving the economic growth of the country there were many community development efforts launched by the ministries of agriculture and ministry of rural development 4 helping though public participate in these activities but the responsibility of launching and executing the social welfare programs was vested with the ministries of the state governments itself due to this, the NGOs were approached by the national government and its agencies to help in the execution and far reaching implications of these developmental and welfare programs of these communities especially in the rural areas. In its sixth Five-Year Plan, the Government of India coined the phrase "GARIBI HATAO." This had an underlying stress for the development of NGOs, and in the seventh five-year plan, they emphasised "Self-Reliance Communities" under rural development. The government has been promoting a national network of non- governmental organizations (NGOs) in the eighth Five-Year Plan. In the ninth Five- year Plan, the government encouraged PPP (Public Private Partnership), and by the tenth Five-year Plan, the government endorsed creating awareness among farmers about innovative farming methods and more initiatives to that end. Not only does the government encourage and promote these NGOs, but it also provides financial assistance to them. ROLE AND LEGALITY OF NGOS Numerous committees have indeed emphasised their significance in a variety of ways. In 1957, the Balwantry Mehta Committee emphasised the importance of non- governmental organizations (NGOs) in tribal developmental programs. Even in five- year plans, the need for and importance of NGOs was emphasised. Again, the 1966 Rural-Urban Relationship Committee also reaffirmed the role of non-governmental organizations (NGOs) in local government, development through community mobilization. Later, the Dhebar Commission expressed its concerns. Same belief that non-governmental organizations must work at all levels, involving all stakeholders i.e., people from the area. The government of India established another committee known as the Sivaram Committee for tribal community development who have identified the importance of NGOs in the executionary activities for welfare schemes. NGOs have traditionally played a significant role in this regard in terms of developmental activities. In the Indian Context, NGOs play a crucial role in many ways like: Acting as a societal social valve by organizing public inconvenience and grievances and advocating their problems at higher levels catering to their needs. They act as the voice of the poor and needy. They become a crucial part in the checks and balances system of the Indian state and improve government efficiency and performance by constant maintenance of accountability and public scrutiny. NGOs are also given power to make suggestions and improve the policy making and regulatory capacities by accepting an advisory role. NGOs take up the service-provider role in the society and become the first point of contact and a structured mechanism for the public, especially the disadvantaged communities, who are facing any socio-economic difficulties and lend a valuable helping hand and take part in conflict resolution and thereby cultivating a trust-based environment. They act as a very important catalyst in improving the participation in community activities and thereby bring up the voices and opinions, mainly the underprivileged sections, previously unheard of, especially in a wide and diverse country like India. One of the most significant roles played by an NGO is of empowering women. They have done the best work in improving gender equality and have made major strides in removing stereotypes and barriers faced by women for getting integrated into the monetary economy. These organizations play the most neglected role of ensuring the building of a sustainable environment around us. Since, no one is willing to compromise their present needs, they do the most necessary damage control and ensure that all the development that is being taken up here forth will be sustainable in nature. In India, and NGO can be formed under 3 aegis: As a Trust, which will act as a public charitable organization and governed by the Indian Trusts Act of 1882. A Public Charitable Trust has the entire society as its beneficiary and the assets of that trust must be used only for the welfare of the public at large. As a Society, which will be a voluntary body of large public participation and an elected governing body. It is mandated majorly by the Societies Act, 1860. It will consist of an MOA and regulatory bylaws and must inform the necessary authorities (The Registrar of Society in most cases) about any and all changes in their quorums. As a Section 8 Company, as a legal entity formed for the purpose of art, culture, charity or any other useful objects. It will be regulated by the Companies Act of 2013. It will be formed similarly to a Public Limited Co. or a Private Limited Co. and the MOA and AOA will act as the legal objects of the company. Other than this, trade unions and cooperative societies are also sometimes treated as NGOs. TYPES OF NGOS The various political developments like the rise in Marxist belief, the Naxalite movement the Lohiate and Gandhian influenced movements during the 1960s to the 1980s has caused the NGO sector to develop into two distinct types. These were basically developmental NGOs and empowerment-based NGOs. The developmental NGOs took up participatory and innovative approaches to work along the concrete sectoral activities that were in relevance to the various poverty groups in the rural areas of the country. While the empowerment NGOs have formed poverty groups across different communities these and help them in their efforts to address the very root causes of poverty such as the caste and class systems along with the lack of access to markets etc. As a result of these differentiations, there were 4 major types of NGOs that were formed by the late 1980s these are welfare NGOs, development NGOs, empowerment NGOs and social action groups. But the former both types of organizations entered into various collaborative practices with the government the other 2 frequently went against the policies and legislations and asked for reforms and amendments etc. Currently, we can identify 8 major types of NGOs: Operational NGOs These are grassroot level organizations working generally in a local or a single small project location focused on developments in that particular area of interest. These organizations are generally very small in size. They majorly consist of charity and welfare-based NGOs, development-based NGOs, and social action groups that are basically focused on mobilising the public of that local unit and empowering them to make use of the services in order to break the cycle of poverty. Ex: MANAVLOK, WOTR Support NGOs These are basically the group of organizations that provide various services today grassroot level organizations in order to strengthen and support the capacities of these organizations and expand them into a wider ambit and multiple locations. They work with a multitude of government bodies like the Panchayati Raj and district level cooperatives and administrative bodies and provide them with the physical and skill based infrastructural capabilities and also act as the public image of these NGOs by bringing out periodic information about the developments across the arena. Ex. SOSVA, SEARCH Network NGOs They are the umbrella organizations that are either formal associations or informal union of various grassroot level or support based NGOs woven into an intricate thread of support systems learning from and working with each other into developing the quality of the services that they are engaging in. They act as a forum for the improvement of the activities carried out by these NGOs and take part in lobbying and advocacy. Ex. FEVORD-K Funding NGOs The very basic activity of the creation of funding NGOs is to provide the financial resources that are required by the operational NGOs in their day-to- day activities. they are designed in such a way to attract financial resources either from Indian or foreign sources to a wide range of activities spread across multiple organizations and areas. Ex. Dorabji Tata Trust, Aga Khan Foundation Protection NGOs These are the organizations that engage in providing relief for disaster management purposes they are focused on the areas that have been the victims of any natural disasters recently and help the local in upgrading their life and quality by engaging in developmental activities to recover any property loss that has happened as a result of such disasters. Ex. Hind Rise, Rapid Response Prevention NGOs These types of organizations are created for the purpose of acting as a shield for the citizens and reducing their vulnerability and limit their exposure to fraudulent practices or companies and ensure safety for its consumers. Ex: Common Cause, VOICE Promotion NGOs This category of organizations has been made to help the developmental paradigm and increase the quality of life by providing better chances and opportunities for people facing degraded life conditions. They embark on this by acting to provide better education sanitation and health services etc. in underprivileged communities. Ex. Unnati, Steps Aid Transformation NGOs These organizations are basically the various pressure groups that are created to act as a representative body for various underprivileged communities in the political and economic arenas and help in the formulation and implementation of laws and policies in especially local governance structures. Ex. Janagraha MAJOR CONTRIBUTIONS NGOs in India take up various activities like advocacy and raising awareness by taking part in research and analysis and informing the public about the most prevalent issues, acting as a broker between governmental agencies and social groups, a conflict resolutory body, act as a capacity building agent by providing education and training programs, service delivery organizations for government schemes, and acting as a watchdog of the state. There are various organizations working in multiple sectors and contributing to change in the society like: Education With India spending just as much as 3% of its GDP on education despite the benchmark of 6% set in 1968, only increases the importance of NGOs working in this sector. There have been many organizations contributing hugely to the improvement of education and literacy in rural and urban poor areas. They work in different arenas like the K.C. Mahindra Trust working for improving education for girl child, Ibtada working for contemporary skill development- based education through provision of modern infrastructure like computers etc. or the Vidya Poshak who take orphaned children, educate them until they attain a job. Healthcare The huge gaps in the infrastructure on the Indian healthcare system were blatantly exposed by the Covid-19 pandemic, despite this, some organizations have worked tirelessly in improving the quality of healthcare received in India. Organizations like Doctors for You, reaching the most neglected and extremely poor areas and providing basic health facilities there, Swasth Foundation building a sustainable rural health ecosystem, CanKids KidsCan improving the lives of cancer afflicted kids. Environment Protection Sustainability is now a very looked after tool and grows in importance as climate change becomes a harsher reality every day, the Indian NGO sector has made significant changes in these perceptions of society and are working towards more increasing green practices. Few like the Mukti foundation working in the revival of the Sunderbans Forest, Environmentalist Foundation of India rejuvenating freshwater lakes and Janmitram Kalyan Samiti promoting solar fields. Human Trafficking Estimates say that every year, 16 million people, mostly women and children are victims of human trafficking in India and in most cases end up as sex workers with nowhere to go, there are many dedicated organization working towards improving and rehabilitating these victims. Some of these are Rescue foundation working to integrate victimized kids back into regular life, Prajwala running transition centers for women in prostitution and their children, Vipla working on getting women involved in prostitution employable through skill development. Mental Health With an abysmal mental health physician to person rate of 1-1,00,000; India needs a lot of progress done on the awareness of mental health. Some of them are Mindroot Foundation combating mental illnesses and substance abuse in rural children and LonePack removing stigma among students across India. CSR POLICY AND EFFECTS ON NGO SECTOR CSR (Corporate Social Responsibility) is becoming an increasingly important component of a company's overall strategy. Corporate social responsibility refers to a company's conformity with its social and environmental responsibilities. Under this philosophy, businesses choose to actively contribute to a healthier society and a peaceful world. Corporations use the concept "social and environmental responsibility" to identify their desire to incorporate social and environmental aspects into their organizational processes and stakeholder relationships. It is defined by its business practices and social investments. Businesses, according to the sustainability principle, should make their decisions based not only on profits and dividends, but also on current and long social and environmental consequences. CSR is an organization's duty on the effect of its actions and functions on society, the environment, as well as its own financial well-being, which is sometimes referred to as the TRIPLE BOTTOM LINE of people, planet, and profit. Charitable impulses in family businesses develop into long-term coordinated philanthropic activities, leading to the formation of corporate social responsibility. CSR involves every unit and staff, and each has a specific task to complete. CSR is also a company-wide initiative that encompasses manufacturing, distribution, and even marketing. Over the last four years, the Companies Act of 2013 has provided Corporate Sustainability in India a new outlook on life. Companies with a net worth of Rs 500 crores or more, income of Rs 1,000 crores or more, and a profit margin of Rs 5 crores or more are necessary to submit a minimum investment in corporate social responsibility in order to comply with the law. India is the first country to impose a cap on CSR spending. The Indian government has launched new CSR requirements that oblige businesses to promote a brighter future in order to promote a brighter future and to invest 2 percent of their net profit in social development. Until the 1990s, philanthropy was the dominant concept of corporate social responsibility (CSR). Companies that view CSR as a philanthropic act are more likely to make one-time financial gifts rather than investing in socially responsible ventures. Furthermore, when implementing such programs, companies failed to consider stakeholders, lowering the quality and effectiveness of their CSR efforts. However, social responsibility has evolved in recent years. Giving as a benevolent act or obligation appears to have given way to giving as a policy or liability. According to a review of case studies and CSR work done by Indian businesses, CSR in India is shifting away from charity and reliance and toward empowerment and partnership. The MCA's (Ministry of Corporate Affairs) CSR rules emphasize the role of an NGO as an implementation partner in corporate citizenship. Many organizations have made significant contributions to society with the help of the CSR funding that they have received. Given the change in the paradigm of thinking by companies, organizations working towards sustainable growth have been leading the change like SEEDS, acting on sustainable ecological growth in Asia. There are other organizations like Goonj working on improving the dignity of life in rural areas and Pratham working towards improving quality education through innovative teaching and learning methods. These types of organizations and many more have benefited heavily from the CSR funding they received and are promoting systemic change in society. DONATION CHANNELS AND EFFICIENCY Indian NGO system has been going through the problem of chronic underfunding and this acts as huge decelerator in the activities of these organizations thereby hampering the results that can be achieved from the programs that are carried out and severely affect the growth of the sector by causing systemic deprivation. Research has proven that the hugely inadequate funds cannot serve the true costs of the sector as a whole, mainly contributing to the subscale performance entirely. In majority of the cases, the funders just write programme centric cheques which cannot cover the indirect costs incurred by the organisation which are very critical for expansion and administrative purposes. A huge number of organizations have reported struggle for accruing indirect cost funding and named survival with less than 3 months of reserves, they are also majorly suffering from a no operating surplus from the past three years at least while majority are from the underprivileged groups like the Dalit, Bahujan, Adivasi communities etc. This is even more prevalent in the case of rural areas. A three-scale process of foundational capabilities i.e., strong roots with strategic planning and development of hierarchical leadership; financial resilience i.e., through accumulation of unrestricted reserves; and increasing impact i.e., a need to measure the reach, impact and effects of their programs. A few recommendations like the creation of multiyear NGO-Donor relationships, measures to close the indirect funding gap through clear communication and engagement, investment in organizational development, and building of financial reserves need to be taken up seriously. The contributions made to non-profits by international organizations has taken a serious hit following the implications of the FCRA amendments by over 30% and it is clear that a hole of that magnanimity cannot be filled anytime soon. The same trends can be observed in the case of donations by domestic corporations as well where the CSR is dropping by more than 5% given the pandemic-induced losses. The social sector spending in India has always been abysmal almost 5-6% of the GDP behind other BRICS countries. The ray of hope in this darkness is the case of family philanthropy which has not only stayed resilient through the pandemic but has also increased by almost 35% in size. The NGO sector needs to capitalize on this growth and induce a more people centric donation platforms. With the ever-growing wealth of family-owned businesses behind, who have an average net worth of 140 lakh crore, this is an opportunity waiting to be exploited. THE FCRA AND ITS IMPLICATIONS During the Emergency in 1976, the FCRA was enacted in response to concerns that foreign powers were interfering in Indian affairs by pouring money into the country via non - profit institutions. These concerns were, in fact, much older, having been raised in Parliament as early as 1969. The law sought to regulate foreign donations to individuals and organizations in order for them to operate "in a manner consistent with the values of a sovereign democratic republic." Under the UPA government, an amended FCRA was enacted in 2010 to "consolidate the law" on the use of foreign funds and "prohibit" their use for "any activities detrimental to national interest.". The current government changed the law again in 2020, giving the state tight control and oversight over the receipt and use of offshore funds by nongovernmental organizations. The Act was revised by receiving President's assent on September 29, 2020. These amendments place more personal accountability on NGOs in terms of forming partnerships, obtaining, and employing funds, especially from foreign entities. However, the government must monitor the situation of non-governmental organizations to prevent funds from being diverted to unlawful transactions. Sub- granting became illegal as a result of this. Subgranting occurs when a larger NGO transfers funds from international entities to smaller NGOs. Smaller non- governmental organizations (NGOs) cannot obtain funding from foreign donors. Life Education and Development Support (LEADS) in Jharkhand, for example, receives Rs. 8 lakhs per year from a Germany-based organization called "Bread for the World" to help strengthen the school system. LEADS manages this programme through four small non-governmental organizations (NGOs). Similarly, in Assam, an NGO called GVM receives funding from ActionAid and the National Foundation for India to work with Bhutanese Bodos. The administrative expenses cap had also been reduced from 50% to 20% of their foreign donations. The FCRA now, also makes it mandatory to obtain funds from the SBI branch in New India. The NGOs were required to submit an expense report every quarter. This amendment also prohibits Amnesty International and other civil society organizations from accepting foreign contributions to support other NGOs. The Ministry of Home has complete authority to revoke an NGO's FCRA certificate. Many civil societies, notably during the reign of Covid, challenged these amendments. The country's development sector may suffer as a result of the ban on sub-grants. The flow of foreign funds could be hampered. Furthermore, environmentalism, human rights, and civil liberties would be severely harmed. The ideals of these critical pillars of India's soft power would clash with the amendments. As a result, the International Commission of Jurists stated that this new was contrary to international obligations as well as its own constitutional rights. NGOS AS A FRONT Over the years and across governments, there have been many proven cases of NGOs being used as a formal figurehead to misappropriation of funds, especially for foreign origin and conduction of illegal activities. There are a plethora of organizations carrying out subversive activities and are started and managed by people with shady backgrounds, it scary to see how easy it is to open an NGO by individuals of questionable character to say the least. The front of the NGO also puts out a positive image which now becomes a double- edged sword. Many organizations have been accounted for numerous malfeasances like the Popular Front of India charged for the instigation of the Delhi Riots of 2020 and Anti-CAA protests and accused of money laundering through terrorist organizations. This can be observed in the UPA tenure as well where, London based NGOs were apparently found to be the roots of Bishop Yvon Ambrose run organizations who instigated the campaign to stall the Kudankulam Nuclear Power Project through foreign funding. There are many like these charged with FCRA violations because of causes of a wide range from diversion of funds to proselytism. However, this has effected very well reputed and strong organizations like Amnesty International who have taken a staunch stance against government authoritarianism and Commonwealth Human Rights Initiative with an Ex-Supreme Court Justice on their bench. In a country like India where despite its mammoth size, the state has not even come remotely close to reaching the far underdeveloped areas of the country, NGOs are a much-needed necessity. This was very clearly visible during the pandemic where these were the organizations who supported the travelling migrants on their devastating journeys home and scour for hospital beds and achieve plasma and oxygen when government hospitals were lacking them or no support for the last rites of the dead. A few bad steps don’t mean the leg needs to be cutoff, similarly this one-size-fits-all policy against the NGOs in the form of a witch hunt against NGOs and the FCRA amendments cannot and should not be the answer. CONCLUSION We have seen the various aspects of the delicate yet deep NGO system that has grown in our country for decades. Though not perfect, it is the only one that has survived the numerous and significant, glaringly hard problems that the society has thrown at it and continues to claim its effect in the various socio-economic, political, and civil changes that take place across every corner of the country. We have seen the strengths and weaknesses of the system that we now have and its more than obvious that it has pulled us off the cliff more times than we can count. It is now the time to support this network and rejuvenate it beyond its previous capacities and capabilities, give them a freer reign, increase investment and develop a tightknit, efficient and significant organizations which will ensure a safe and sustainable travel ahead in the developmental work of this country. BIBLIOGRAPHY Athulya. (2018). NGO Laws In India And Its Legal Compliance. Vakilsearch , https://vakilsearch.com/advice/indian-ngo-laws-and-legal-compliance/. Bindhu, D., & Panakaje, D. (2021). Role of NGOs in Implementation of CSR Activities in India. International Journal of Management, Technology and Social Sciences , 100108. Durgam, R. (2000). Non-Governmental Organisations (NGOs) in India: Opportunities and Challenges. Journal of Rural Development , 249-275. Fernandes, K., & Thacker, H. (2021). Top NGOs in India. The CSR Journal , https://thecsrjournal.in/top-ngos-in-india/. Hafeez, S. (2021). 10 NGOs revolutionsing healthcare in India. Give India , https://www.giveindia.org/blog/10-ngos-which-have-revolutionised-healthcare-inindia/. Hafeez, S. (2021). 10 NGOs tackling mental health issues. Give India , https://www.giveindia.org/blog/10-ngos-tackling-mental-health-issues-in-india/. Mehta, S. (2021). Why India needs stricter laws to regulate NGOs. Yahoo! Finance , https://ca.finance.yahoo.com/news/why-india-needs-stricter-laws-to-regulate-ng- os120326022.html. Seo. (2022). NGO Rules and Regulations in India. MUDS , https://muds.co.in/ngo-rules- andregulations- inindia/#:~:text=They%20must%20register%20with%20the,Such%20registration%20is %20not%20compulsory. Seth, A., Ayilavarapu, D., Pandit, R., & Sinha, M. M. (2021). India Philanthropy Report 2021. Bain & Compant | Dasra , https://www.dasra.org/assets/uploads/resources/Bain_Dasra_India_Philanthropy_Rep ort.pdf. Singh, G. (2021). Why is the government going afer NGOs? The New Indian Express , https://www.newindianexpress.com/opinions/columns/2021/sep/19/why-is- thegovernment-going-after-ngos-2360658.html. Srividya, D. N. (2021). ROLE OF NGO’S – AN OVERVIEW IN INDIAN PERSPECTIVE. Journal of Good Conscience , 1-9. Swamy, V. K. (2021). 10 NGOs rejuventaing education in India. Give India , https://www.giveindia.org/blog/top-10-education-ngos-rejuvenating-education-inindia/. Swamy, V. K. (2022). 10 indian NGOs working for environmental protection. Give India , https://www.giveindia.org/blog/top-10-indian-ngos-working-for- environmentalprotection/. Swamy, V. K. (2022). 10 NGOs working against Human Trafficking in India. Give India , https://www.giveindia.org/blog/10-ngos-working-against-human-trafficking-in-india/. Vanitha, K. (2022). An Overview of Roles and Functions of NGO in India. CorpBiz , https://corpbiz.io/learning/roles-and-functions-of-ngo- inindia/#What_are_the_Roles_of_NGO_in_Indian_Context. Venkatachalam, P., Yeh, D., Rastogi, S., Siddiqui, A., Manchanda, U., Gupta, K., & Thompson, R. (2021). Building Strong, Resilient NGOs in India: Time for new funding practices. The Bridgespan Group , https://www.bridgespan.org/bridgespan/Images/articles/building-strong-resilientngos- in-india/Building-Strong-Resilient-NGOs-in-India-Bridgespan-2021.pdf. Previous Next

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< Back Evolving Marketing Tools and Techniques by Nikita Khaitan Understanding the Switch from traditional to digital marketing. Nike as a case study and the role of AI, big data, and metaverse. Marketing and communication are constantly ever-changing since the onset of the internet in the 1990s to keep up with the fast-paced digitised world. Globalisation and evolving technology has brought in a new era for businesses, digitising the ecosystem and making it imperative for businesses to adapt to new changes, trends and methods of working. Traditional marketing techniques such as billboards, mass adverts, print media and cold calls, relying heavily on mass media channels have been replaced with digital marketing techniques like SEO and social media marketing, allowing specific targeting and a more cost-effective method of reaching a larger intended audience. Digital marketing involves using online platforms to sell products and services to consumers and has revolutionised the marketing sector and the way businesses connect with their target audience. The transformation from traditional marketing to digital marketing is driven by changing consumer behaviour and preferences and the advancements in technology and AI. The digital revolution, started by the internet and the variety of mobile devices has given consumers access to information, services and products at a click of a button, online. Marketers have thus established that a “one-size-fits-all all campaign” will be ineffective in a globalised world where personalised, data-driven approaches are better suited. 4.9 billion people use social media on a regular basis in 2023, making it a global hub and acting as a virtual marketplace for brands to effectively persuade consumers to buy their products through online influencers and video marketing. It is expected to rise to 5.85 billion users by 2027, indicating the need for multi-platform social media marketing. This has also led to an influx of digitised labour producing online content for brands to market their products. Further, artificial intelligence, chatbots and machine learning have enabled businesses to tailor marketing messages on an individual basis and heighten the impact of immersive marketing experiences. This research paper aims to provide an overview of the new age marketing techniques, the use of AI and technology, big data and data mining and futuristic trends such as the Metaverse which will dominate marketing in the future and enable businesses to remain competitive and creative. Digital marketing has emerged as a game changer, fuelled by the popularity and accessibility of the internet and smartphones. It allows businesses to effectively and precisely target certain demographics based on their preferences, tastes, interests and consumer behaviour by using data-driven insights. This allows the business to create personalised recommendations and advertisements, involving and engaging with the consumer. Moreover, on a general basis, digital marketing proves to be more cost-effective than traditional marketing since businesses can advertise their products for free on many social media platforms. Further, businesses can also strategise on their spending budget to get the maximum output and impact. The availability of such low-cost options makes it a marketing strategy that can be implemented by businesses of all sizes. Due to its presence online, it has a wider and global market reach, connecting to millions in a matter of seconds. Further, digital marketing allows for real-time tracking and monitoring of marketing campaigns and the collection of consumer insights and data. Social media marketing uses social media sites such as Instagram, Facebook, X, and TikTok to promote and market products and services online.Brands can use both paid and unpaid forms of social media marketing to increase online sales and raise awareness. It also encompasses content and video marketing, key digital marketing strategies in the 21st century. The predicted compound annual growth rate for the social media market between 2023-2030 is at 26.2% due to the increasing global adoption of the 5G technology. An average individual spends roughly about 145 minutes on social media daily, highlighting the reach and effectiveness of a successful social media marketing campaign. Brevity and authenticity are key in creating a successful campaign, powered by short-form videos such as Instagram Reels, Tiktoks and YouTube shorts, catching the attention of 66% of viewers since they are usually less than a minute long, following under the general attention span of individuals. Further, these bite-sized videos are highly shareable and engage viewers 2.5 times more than traditional long-format videos. This strategy involves curating content, putting up product-related posts and forming genuine connections, and engaging and understanding your community online. As a part of creating content for social media, video marketing is viewed as the most important digital marketing strategy by 92% of businesses. The average click-through rate (CTR) for all social media platforms in 2022 was 1.21%, which was slightly lower than the CTR of 1.3% in 2021. Despite this minimal reduction, the statistics show that appealing social media marketing campaigns are still necessary to increase and maximize engagement and conversion. Further, with changing times and trends, businesses must be flexible to adapt to and follow new industry marketing trends and are often the first to leverage the power of new technology. Thus, 77% of small businesses use social media worldwide to connect and engage with their audience. Apart from only increasing brand awareness and promoting the product, 41% of small businesses also depend on social media as a revenue driver and booster. Further, a switch in consumer preferences and behaviour has also been observed with 90% of users following at least one brand and more consumers requiring a need for direct and engaged relationships with brands which would in turn boost brand loyalty and build a sense of brand community. Social media has also influenced and changed the face of retail with 76% of users purchasing products as seen on social media. Thus, in terms of use and cost-effectiveness, social media marketing requires a low initial cost to reach a wide global audience with features such as targeted advertising. In the current scenario, over 50% of millennials trust influencers when making a purchase choice. With brands partnering with influencers aligning with their core values, influencers are able to create authentic content, rooted in relatability for the intended audience. In 2021, there were 3.8 million posts with the hashtag, “ad” indicating the evolution of influencer and social media marketing as a key player in the digital marketing ecosystem. It also has the potential for the curated content to go “viral” reaching a mass audience in an extremely short period of time, leading to exponential growth and engagement. Further, setting up and launching a creative campaign on social media is relatively simple and straightforward. However, social media marketing is time and resource-intensive and consistently creating and curating content requires the presence of a dedicated team. Moreover, negative feedback and bad reviews can severely tarnish the brand image due to the negative impact of viral content. Lastly, social media platforms regularly update and change their algorithm which would have a significant impact on the reach of a marketing campaign. Email marketing is another such digital marketing tool that plays a key role in the marketing of a product or service by sending targeted emails to a group of recipients. Email marketing for can be a quick, adaptable, and affordable approach to attract new clients and keep hold of current ones by promoting frequent website visits. It's crucial to avoid using email marketing excessively. When marketing communications are irrelevant, excessively frequent, or unwanted, people may become irritated, having an opposite reaction to the intended effect. Email marketing can be transactional, promotional, or lifecycle emails. It is highly cost-effective since it does not require any significant investment in creating and sending emails and can be sent to a broad audience quickly and efficiently. Further, email marketing allows for segmentation of the target market based on demographic factors, behaviors and preferences allowing personalised and customised marketing. Moreover, email marketing also provides analytics and consumer insights which allows tracking of open rates, click-through rates, and conversion rates which measures the effectiveness of the marketing campaign. Further, automated emails such as “abandoned cart” reminders and “welcome” emails running on autopilot would save time and energy. Lastly, deployment is easy and straightforward once the email list is set up. Email marketing return on investment is impressive with $36 on every $1 spent. There are 4 billion daily email users and 33% of marketers send emails every week and 26%, multiple times a month since the average revenue from email marketing is expected to reach $11 billion by the end of 2023 as seen in Appendix A. However, persistent emailing can lead to overcrowded inboxes and potential customers unsubscribing from the mailing service. Webpage adverts are another form of digital marketing by displaying ads on various websites. These are achieved by advertising and promoting your own website or putting up banner advertisements on other complementary websites. It offers a low-cost alternative to traditional print media ads and persists on the website 24/7 until they are taken down. Advertisements on web pages provide an opportunity to engage with the consumer. To fully engage a potential buyer, the advertisement may use scripting techniques such as selectively presenting relevant details or enabling game-like simulation. Ads on Web pages can at the very least be clicked, which automatically reroutes users to another page with additional information or a purchase option. Significant information can be gained with appropriate scripting. The location can be determined by the Internet Protocol address. Referrer data explains how a visitor arrived at the website, through a search engine, another website, or a URL they typed into their browser window. In rare circumstances, information about a user's computer's operating system, browser, and updates can also be learned. All of this data helps to mirror your customer, which can be utilized to adapt the advertisement to increase the likelihood of a sale. Further, Ad performance metrics or key performance indicators such as the click-through rate ( percentage of users who clicked on the ad), conversion rate ( percentage of users completing a desired action after viewing the ad), Cost per click, and return on investment indicate the effectiveness of the advertisement campaign and integrate AI in the mix. However, tools such as the ad blocking software prevent webpage advertisements and they fail to reach the consumer. Further, ad overload and displaying a high density of ads on one website can distract the consumer and target the wrong market, defeating the purpose of the campaign and reducing its reach and effectiveness. The compatible 5ps of marketing in the digital ecosystem include Purpose, Pride, Protection, Personalisation, and Partnership. For example, Nike launched its global slogan “Just Do It” in accordance with the conventional 4 Ps of marketing. However, in 2006, it launched Nike + allowing consumers to track their fitness initiatives, involvement, and communicate with others in the realm. In 2017, they introduced the Nike Consumer Experience Strategy and its app connects 100 million of its customers online. It focuses on consumer relevance and behaviour. Nike's 5 Ps include Purpose( improving fitness), Protection ( risk free transactions), Pride ( symbolic appeal to the brand), Partnership ( consumers lives) and personalisation. Further, various campaigns launched by Nike appealed to consumers with a focus on digital marketing. Their campaigns aim to tell and create true stories to engage and connect with loyal customers. Nike ReactLand was created to launch its running shoes, Epic React, and virtually transports users into a video game, creating their 8-bit avatars. This enables consumers to witness their latest sole cushioning technology. Lastly, among others, Nike partnered with BBH Singapore and opened the Nike Unlimited Stadium in Manilla, Phillipines,the worlds first full sized LED Racing Track allowing users to compete with LED avators with the help of the sensors attached to their shoes. Big Data and Artificial Intelligence have developed with the advancements in technology and play a key role in the digitized marketing ecosystem tracking marketing analytics, data collected, and consumer insights and preferences. Data mining is the process of gathering, analyzing, and processing data to draw conclusions from it. It uses technology to examine enormous datasets, whether automatically, semi-automatically, or even manually, it bases its work on techniques like statistics, database systems, and machine learning. Data mining services assist businesses in analyzing these vast volumes of data and extracting real insights relevant to their line of business. The most effective example of data mining's advantages can be found in activities on social media sites like Facebook and Instagram. Individuals of various ages, tastes, and nations interact. Many of them share basic data like genders, ages, and locations. In addition to these, Facebook users nearly exclusively express their opinions, likes, and dislikes on the site helpful for businesses to amend and adapt their practices. There are primarily 3 main types of Data Analytics: Sales, Inventory, and Customer Analytics. However, sales and customer analytics are integral to the marketing mix. Sales analytics go beyond how many items are sold or how many customers have joined up for the services. It helps in identifying chances to boost sales and profit margins. Additionally, it also assists in identifying ineffective channels, which improves the ability of the business to choose whether to make changes or stop utilizing the sales channel completely. In accordance with Appendix B and a report published by McKinsey and Company, companies implementing customer analytics have seen a 23x increase in customers than their competitors. Customer analytics reveals distinct trends among purchases including their actions, behaviours, and locations both before and just after a transaction. Additionally, customer analytics enables the company to determine whether consumers' behavior patterns have changed so that marketing efforts can be adjusted and maintain their efficacy. Price optimisation using big data and differentiating price methods at the customer-product level are becoming increasingly feasible. According to research by McKinsey and appendix C, standard products typically account for 75% of a company's revenue and only 30% of the hundreds of pricing selections that are made annually result in the lowest price. Pricing provides a tremendous upside potential for increasing profitability, with a 1% price increase translating into an 8.7% gain in operating profits, presuming no volume loss. Big data is transforming how businesses improve customer responsiveness and consumer insights. According to a Forrester report, 36% of B2C marketers actively use analytics and data mining to acquire deeper insights and develop more relationship-driven strategies, while 44% of them use big data and analytics to increase responsiveness. The Metaverse is the future of digital marketing. By 2024, the metaverse market is expected to grow over $ 800 billion according to Bloomberg. Metaverse marketing incorporates the use of physical and digital elements, breaking the boundaries in interaction with physical and virtual realities. The Metaverse provides customers with an immersive experience by connecting with them at a personal level. For example, Gucci launched Gucci Garden on Roblox, an immersive visual virtual exhibition taking inspiration from the Gucci Garden in Florence. Businesses would effectively convey their messages while creating brand loyalty among consumers who frequent their metaverse areas by utilising virtual avatars or dynamic images/videos paired with audio/visual features like 3D animation. Brands are likely to employ 3D spaces as virtual showrooms or to create specialised shopping experiences therein like Samsung, which established virtual stores imitating its real-life shopping environment. Nike bought RTFTK, a virtual sneaker brand and developed NIKELAND within Roblox’s immersive environment. Additionally, businesses can include interactive guided tours around various surroundings that are designed for particular audiences as well as voice assistance in their user experience. Marketers will be able to optimise their campaigns and maximise return on investment despite tight budgets by adding AI into metaverse marketing. Based on user behaviour in real-time analytics, marketers will be able to design highly personalised customer experiences. In order to better advertise goods and services within these virtual worlds and offer a completely new level of interaction, marketing teams could collaborate with gamers, VR influencers, AR art teachers, and other content creators. Gartner predicts that 25% of people will typically spend 1 hour per day on the Metaverse by 2026. Thus, digital marketing has revolutionised the marketing segment with most businesses switching from traditional to new age marketing techniques such as social media, content, video, email marketing and webpage advertisements because of their global reach, easy use, cost effective nature and easily measurable performance. Technology and the use of artificial intelligence chatbots and big data has made consumer analytics and the collection and analysis of data possible paving the way for other future trends such as the Metaverse. 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< Back Essence of Digital Marketing by Zaynah Buhariwala How many of us bother to watch an entire advertisement between our much-loved YouTube content? The old paper board advertisements are now replaced with electric billboards, which change every 2 minutes. Insta ads and more, the future of marketing. How many times have you clicked on a website, you had never even heard of before, all because you saw that really cute outfit on your for you page?! This is the power of digital marketing. The main advantage is that the smallest of companies are investing in digital marketing and making a huge turnover on that investment. Digital marketing has made life easier for the consumer, by having everything at a click of a button; and for the business owners. Like The Stone Age marked the use of stone tools for hunting, gathering, and all other daily necessities. This simplified his life and he had more time to focus on art, culture, and other important things like agriculture and construction. The same is true for the Bronze Age and Iron Age. Likewise, today's age is called the Information Age or Digital Age because of our dependency on Digital Technology. The world is cruising towards complete digitalization and the current COVID-19 pandemic has accelerated it. Digital Technologies has changed the way we look at the world. It has eased our day–to–day tasks. It has opened the floodgates of knowledge and information to the masses. Digital Technology has brought the world just a 'click away'. A focus on content and information. One of the changes that came with new-age marketing techniques was the shift away from traditional advertising and placing more focus on content and information provided to your customers. This paper gives one an insight into the inner workings and technicalities of new-age marketing techniques. NEW – AGE MARKETING TECHNIQUES Social Media Marketing Social media marketing (also known as digital marketing or e-marketing) is the use of social media platforms; like apps like Instagram, tik tok, etc. It encompasses various tactics, including, email campaigns, content creation, search engine optimization (SEO), and influencer marketing. Data–driven approaches and new-age tools are crucial in crafting and implementing effective digital marketing strategies. Social media has become the method of statement in the 21st century, enabling us to express our beliefs, ideas, and manner in a new way. This way of message also has a huge impact on corporations, where they have realized that without a correct plan and social media strategy, they have no chance to stand out in the rapidly changing digital freedom. To guarantee successful attendance on social media companies need to consider different marketing theories so that they can boost their brand in different aspects. If this can be collected with original ways of consumer interaction the companies have a good chance to take the lead in social media marketing. The meteoric growth of community websites, such as Twitter, Facebook, and Linked, has ushered the world into a new era of social media. The global reach is nothing short of marvelous, so much so that if Facebook were a country, it would be the third largest, next to China and India. Some even say that this is the biggest shift since the industrial revolution, which means that the world has a brand-new playing meadow. At its center, social media is any kind of online media that stimulates participation, open conversation, Connecters, and a sense of community. The social media phenomenon has a profound impact. Social media has transformed research methods. This allows brands to communicate better with their consumers, and intensify their association with them. The advertising world has not been spared from social media influence. TYPES OF SOCIAL MEDIA MARKETING STRATEGIES Email Campaigns A series of marketing efforts, including email campaigns. It is a schedule, which is used to nurture leads and current customers to encourage engagement with the brand and increase sales. The goal of an email campaign is to entice the recipients to purchase a product or service or to learn more about the business. Each individual leads to a specific call-to-action; that is, getting users to sign up, book a call, sign up, or add a product to their cart. In an email campaign, the delivery time is relative – it refers to the time the contact is a part of the campaign. An accurate example would be Netflix: Marketing Campaign: Engagement More than half of US households subscribe to multiple streaming channels . With several platforms vying for our attention, brands like Netflix have gotten more targeted with their emails. This email from Netflix provides a curated list of new shows the customer may be interested in based on their watch history. It's skimmable with plenty of visuals supporting the new releases and provides a CTA that prompts you to watch the trailer. It also uses Netflix’s familiar black-and-red design, so that the recipient feels like they’re scrolling through Netflix, demonstrating the importance of keeping branding consistent across all your messaging channels. Why It Works?! The CTAs in this email entice the user to stop what they're doing and head over to Netflix to check out the new content. It also includes a “Top Picks for You” section that shows personalized recommendations for the user. Content Creation Just like we have the 4Ps of marketing, we have the 3C'S of content creation. Content, channel, and context: Content is the information that is being gathered and provided. It is the facts, and features or benefits of the message – the “what”. For example, it’s the details of your product or service that will help the target solve their problem. Channel is “where” and “when” the message is most likely to reach and be accepted by the target. Here we have to consider the buyer’s mindset. For example, if they are on their way to work, then the business is most likely on their mind; on the way home, personal activities may become front and center. Context is “how” the message is packaged in the communication channel; it is everything except the “what” and the “where”. The context is the creative application of the message – the visual packaging, the emotion, the psychology, the tone, and the manner. For example, for sure you have heard of MR. BEAST, the famous Youtube legend. Mr. is one of the most popular Youtube content creators, with 154 million subscribers on the platform. His videos involve him doing stunts, some of which are elaborate, and many go viral. He sells a wide array of merchandise, including apparel and accessories and even chocolates and gummies. He's parlayed his success into philanthropy after giving away the first $10,000 he made from a YouTube sponsorship deal in 2017. In the picture below, Mr. Beast is promoting his cookies as well as Walmart, creating a buzz for them! He is creating the content, by posting about it, context by stating it's going to be available at Walmart and context is the fact that he is promoting it. Search Engine Optimization (SEO) Search Engine Optimization (SEO) is the process of improving the quality and quantity of website traffic to a website or a web page from search engines. SEO targets unpaid traffic (known as “natural” or “organic” results) rather than direct traffic or paid traffic. In simple terms, SEO means the process of improving your website to increase its visibility in Google, Microsoft Bing, and other search engines whenever people search for: Products you sell. Services you provide. Information on topics in which you have deep expertise and/or experience. The better visibility your pages have in search results, the more likely you are to be found and clicked on. Ultimately, the goal of search engine optimization is to help attract website visitors who will become customers, clients, or an audience that keeps coming back. Whenever people want to go somewhere, do something, find information, research, or buy a product/service – their journey typically begins with a search. But today, the search is incredibly fragmented . Users may search on traditional web search engines (e.g., Google, Microsoft Bing), social platforms (e.g., YouTube, TikTok), or retailer websites (e.g., Amazon). THREE TYPES OF SEARCH ENGINE OPTIMIZATION (SEO): Technical SEO: Optimizing the technical aspects of a website. On-site SEO: Optimizing the content on a website for users and search engines. Off-site SEO: Creating brand assets (e.g., people, marks, values, vision, slogans, catchphrases, colors) and doing things that will ultimately enhance brand awareness and recognition (i.e., demonstrating and growing its expertise, authority, and trustworthiness) and demand generation. Influencer Marketing Influencers are a new way of making money for a company. By paying a generous amount, they get their brand or product showcased to half a million people with a click of a button. However, this type of marketing is beneficial for everyone, most of the consumers do not have to pay for subscriptions to the brands, the influencers get recognition and an added fan base from the brand, and vice-versa. The brand also gets recognition and publicity which results in an increase in turnover and consequently an increase in profits! Social media platforms like Instagram, and TikTok; provide a great audience for influencer marketing! Many brands use influencer marketing to reach their target audience. Big brands like Motorola, Adidas, Pepsi, and Dunkin' Donuts all use influencer marketing. Adidas has been using influencer marketing to promote its products for years now. They use influencer marketing to target a younger audience through Instagram, etc. For example, 67 Shades of Dior Campaign - The Gold Winner for the Best Beauty Campaign at the 2020 Influencer Marketing Awards was Dior, who teamed with the influencer marketing agency, Buttermilk. The campaign was to celebrate the launch of Dior's Forever Foundation, which is a range with 67 unique foundation shades. The fastest and new age of marketing involves influencer marketing, which has created a different and most influential sector of marketing. Email Marketing With more recognition of big data, and with the ease that it has not only provided to companies but also to consumers. It's so easy for a company to connect with an interested consumer if they just fill out their details and subscribe to the company, then they could get updates about the company and the company would benefit by creating loyal customer and brand awareness. Ever once signed up for a spam mail by mistake? Then got irritated by the number of emails they kept sending every hour! Well, that is the point of email marketing. Even bad broadcasting is good for the company. It at least lets the company build up brand awareness. Email marketing is the act of sending a commercial message, or nowadays a “spam” message, via email to a group of people. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It involves using email to send advertisements, request business, or solicit sales or donations. Email marketing strategies commonly seek to achieve one or more of three primary objectives, to build loyalty, trust, or brand awareness. The whole purpose of sending emails out and performing email marketing is to create a good customer-merchant relationship. Especially, for small businesses, in the early stages, this gives them a chance to create a loyal customer base and then expand their business from there! There are 4 types of email marketing; mainly email newsletters, transactional mail, promotional mail, and retention emails. Marketers have been using email as a channel for almost as long as they've been using the internet. The first marketing email was sent in 1978, resulting in $13 million in sales. Email has been one of the most highly used marketing channels ever since. This is because email is a flexible yet cost-effective way to reach many people relatively quickly. You can also personalize your message to target specific audiences and generate leads. EMAIL NEWSLETTERS: Email newsletters are adding value to your subscriber's inboxes. To do so, create engaging content, including thought leadership, how-to’s, and upcoming new products/sales. Your email newsletter should be a short-sweet message to the consumers, maybe based on the latest trends! Short concise newsletters, that can be read in 5 minutes or less. Nobody wants to be stuck reading a 10-minute newsletter therefore, engaging your customer base and finding out what content and how much they are engaging, can help you build up on your newsletter. Your email newsletter is only as successful as your content is compelling. TRANSACTIONAL EMAILS: Probably one of the most boring and least liked by consumers. Getting the big fat bill! That is exactly what transactional email marketing is. Probably one of the least glamorous but most effective forms of email marketing; transactional emails are sent to facilitate an expected transaction between a sender and a recipient. The context of the transaction varies; it could be a welcome email, a confirmation email, or even a cart abandonment email A transactional email is meant to inform the customer about the action they have just taken. For example, every time I use my credit card, I get an email on my registered mobile number, saying that a transaction of $x amount has been transacted from my account. And nobody wants money out of their bank accoun PROMOTIONAL EMAILS: T he main goal is to convince or entice customers to make a purchase. To get the formula right you need to use promotional emails to reward engaged subscribers with exclusive offers, drive new products or services to subscribers, and cross-sell products to your customer base. The purpose of these emails is to build your customer base and customer loyalty. It converts subscribers to customers and customers to brand advocates. For example, while scrolling through your for you page on Instagram, you come across a really cute top and then immediately purchase it. You are now a subscriber to the brand and sign up with it. Next, you get a promotional email and purchase more, you are now a loyal customer or even a brand – advocate. That is the magic of promotional emails. It's got you hooked! RETENTION EMAIL: A retention email is a targeted and triggered message sent to an existing customer to increase engagement, loyalty, and satisfaction . By sending a message requesting feedback or an offer to subscribers who haven't interacted with your business or email campaigns lately, your small business can keep the lines of communication open. Retention Emails are a very useful email campaign strategy that can help you keep your hard-won customers. For example, the end questionnaire you fill out, at the end of a purchase, is a retention email, and once the brand has got your feedback and sent you the improvements; you will come back for more. Creating convenience for you! Role of Big Data in Marketing “Without big data analytics, companies are blind and deaf, wandering out onto the Web like deer on a freeway.” Whether you are trying to improve customer loyalty and engagement, optimize your performance, or make pricing decisions, big data in marketing has proven to be an indispensable tool. Big data refers to the ever-increasing volume, velocity, variety, variability, and complexity of information. For marketing organizations, big data is the fundamental consequence of the new marketing landscape, born from the digital world we now live in. That being said, big data is transforming and modeling into new-age marketing techniques. But what is big data? In terms of marketing, big data comprises gathering, analyzing, and using massive amounts of digital information to improve business operation. Big data is universally accepted in almost every vertical, not least of all in marketing and sales. While Moore’s tweet referred specifically to big data analytics, the same is true for all aspects of big data, including data ingestion, integration, storage, and more. Many marketers may feel like data has always been big – and in some ways, it has. But think about the customer data businesses collected 20 years ago – point-of-sale transaction data, responses to direct mail campaigns, coupon redemption, etc. Then think about the customer data collected today – online purchase data, click-through rates, browsing behavior, social media interactions, mobile device usage, geolocation data, etc. Comparatively speaking, there’s no comparison. And to borrow an old phrase, "You ain’t seen nothin' yet." How Big Data is Transforming Marketing GETTING A 360-DEGREE VIEW OF THE COMPANIES AUDIENCES – The concept of "know your customer" (KYC) was initially conceived many years ago to prevent bank fraud. KYC provides insight into customer behavior that was once limited to large financial institutions. Now, because of the accessibility of big data, the benefits of KYC are available to even small businesses, thanks to big data and cloud computing. Big data analytics provides the business intelligence you need to bring about positive change, like improving existing products or increasing revenue per customer. With email marketing, gaining popularity, big data plays a huge role in getting information from consumers, and without big data, email marketing probably wouldn't exist today. BRAND AWARENESS – The 360-degree view from big data allows marketers to present customer-specific content when and where it is most effective to improve online and in-store brand recognition and recall. Big data allows you to be the band-aid of your product category even if you don't have the marketing budget! For example, email campaigns, as mentioned previously, bring great brand awareness and thanks to big data; are very specific to the consumer's likes and dislikes. Social media and email marketing help brands build awareness and big data is the backbone for these marketing techniques to work! Big data can help marketers, with real-time data in cloud computing environments. The ability of big data to acquire, process, and analyze real-time data quickly and accurately enough to take immediate and effective action cannot be matched by any other technology. This is critical when analyzing data from GPS, and clicks on websites- like we spoke about how in search engine optimization, the searches are very specific to the consumer, that is with the help of big data, the brand can access that information and make changes to the searches according to the consumer. Big data provides business intelligence that results in time and cost savings by optimizing marketing performance. Here's a case study: Big data Gives Beachbody near Real-time user behavior to reduce customer churn Beachbody provides world-class fitness, nutrition, motivation, and support to 23 million customers. Their business is all about the customer experience; keeping people motivated and matching them with the content that keeps them coming back for more. You may be familiar with Beachbody's on-demand videos, but they also offer live sessions at gyms. Big data has enabled the company to acquire near real-time consumer behavior in fitness centers. Combined with analysis from online data sources, Beachbody's big data allows the brand to create more personalized offers for customers and decreased customer churn. We can also connect this to the previous marketing techniques we spoke about, like CONTENT CREATION AND SEO – They created viral videos which users engaged with and that created brand recognition. The SEOs were specified by the company for their subscribed users, which made it easier for the users to also connect with the company's particular event. Types of Big Data CONSUMER DATA – helps marketers understand their target audience. The obvious data of this type are facts like names, emails (which is a part of the marketing plan for email campaigns; as discussed previously), purchase history, and web searches (SEOs). Just as important, if not more so, are indications of your audience’s attitudes that may be gathered from social media activity, surveys, and online communities. FINANCIAL DATA - helps you measure performance and operate more efficiently. Your organization’s sales and marketing statistics, costs, and margins fall into this category. OPERATIONAL DATA - relates to business processes. It may relate to shipping and logistics, customer relationship management systems, or feedback from hardware sensors and other sources. Analysis of this data can lead to improved performance and reduced costs. BIBLIOGRAPHY: 1. Indiraiimp.edu.in 2. Hubspot.com 3. Mailchimp.com 4. Campaignmonitor.com 5. Linkedin.com 6. Searchengineland.com 7. Talend.com 8. Social media marketing article by Sarvakumar Previous Next

< Back Digital Communications by Yash Vadhar The marketing aspect of a business that exits in order to address people’s needs and wants by promoting certain products or even a business for that matter. Whilst all that even in current times stays to be true, there are advancements and developments that have now led to the innovation of a new type of marketing, known as Digital Age Marketing. Introduction The marketing aspect of a business that exits in order to address people’s needs and wants by promoting certain products or even a business for that matter. This is vital in a business as it is what brings them the customers that would be willing to buy their goods/buy their services. The business focuses on marketing based on the 7P’s of Marketing that the follow and believe in, which are: Product, Place, Price, Promotion, People, Process, and Physical evidence. Whilst all that even in current times stays to be true, there are advancements and developments that have now led to the innovation of a new type of marketing, known as Digital age marketing, it refers to marketing, although via the medium of internet-connected/ modern devices; such as Email marketing, social media marketing, Webpage advertising. Analysis and Discussion This new age marketing making use of technology and digital platforms allows the business to reach a wider audience and acts as an advantage for them, as it would mean more potential future customers and consumers. Some of the examples mentioned above such as Email Marketing, Social Media Marketing and Webpage Marketing hold and target a certain niche for themselves and hold different meaning. Email marketing refers to the sending of messages that are promotional in nature and that directly reach to a persons email address. This technique acts effective, as it allows the business to be able to directly get in touch with the customers and their possible potential audience, whilst they get to personalize the message according to their liking in order to attract their audience. Social Media Marketing on the other hand refers to marketing via the adaptation of social media platforms such as Instagram and Facebook; this helps in promoting of the businesses products (goods or/and services) in an effective fashion as it allows businesses to directly interact with their audience and the customers to interact with the business as well [6] . This method can be proven effective, as with the help of the algorithm of such social media platforms, the advertisement of the business’ products would be provided to those with similar interests and likings, making it perfect for the business to choose, as they would be directly addressing their desired target audience [7] . Finally, Webpage advertising is thew marketing of a business’s products via the medium of certain websites and this is a great method of advertising as well, as it works in a similar fashion to that of social media marketing with the algorithm of suggesting the products of the business based on the users liking, making it apt for the business as they would be able to touch base with their target audience [8] . Advantages and Disadvantages of the different marketing techniques: Email Marketing: Advantages: · They tend to be inexpensive · Easy to scale and allows easy analysis for analysing experts · High Return on Investments are possible · Environmentally friendly Disadvantages: · Emails lack the personal touch needed to promote and market a product · Might be counted as a SPAM mail · Time-consuming · Delivery issues Social Media Marketing: Advantages: · Low cost of investment · Wide range of audience · Helps businesses in monitoring feedback · High possible rate of growth Disadvantages: · Risk of negative publicity · Long time for Return on Investment · Can be very time-consuming · Difficulty in analysing Webpage Marketing: Advantages: · Onetime major setup cost · Easy to measure and analyse · Large audience that the business can target · Marketing on Webpages can be done in multiple ways to attain audience Disadvantages: · Onetime setup cost can be very expensive to make a good website to attract customers · Can be hard to gain the trust of potential audience · Results can be very time-consuming · Lack of personal interaction with customers Use of AI and data analytics in the digital age marketing In current times, Artificial Intelligence (AI) and Data Analysis play a crucial role in digital age marketing as they allow marketers to make better decisions and allow them to make amends and act accordingly to create a better experience for their existing as well as potential audience. Some reasons as to why AI and Data Analytics is used in digital age marketing are that Data Analytics aid marketers to do segmentation, which is splitting up their customer base into groups of people according to their age, gender, ethnic and religious groups, interests, and other factors, this allows the business to focus on one segment of their customer base at a time, providing them a more personalised and a better experience. Another reason why AI and Data Analysis is important is that Data analysers with the help of the data of their segment and other factors can with the help of AI platforms create a more personalised experience and hence send out personalised product recommendations, personalised social media ads for example and also send out personalised emails regarding their products. Lastly AI and Data analysis can be used for future predictions and carry out sales forecasting methods and be prepared in terms of not only production of goods and services but also in terms of Marketing methods to adopt and apply in the future time period. Bibliography: · Paul Hoang 5th Edition Business Management Textbook · https://kajabi.com/blog/digital-marketing#:~:text=Digital%20marketing%20is%20any%20marketing,marketing%20are%20just%20a%20few . · https://rockcontent.com/blog/what-is-digital-advertising/ · https://mailchimp.com/marketing-glossary/email-marketing/#:~:text=Email%20marketing%20is%20a%20form,also%20be%20anything%20in%20between . · https://www.investopedia.com/terms/s/social-media-marketing-smm.asp · https://www.brafton.com/blog/distribution/website-marketing-the-definitive-guide/ · https://www.sciencedirect.com/science/article/pii/S2666603022000136 · https://www.simplilearn.com/how-companies-are-using-artificial-intelligence-ai-in-digital-marketing-article · https://www.imd.org/research-knowledge/digital/articles/artificial-intelligence-real-world-impact-on-business-and-society/ · https://www.webdew.com/blog/data-analytics-in-digital-marketing · https://digitalcatalyst.in/blog/advantages-and-disadvantages-of-email-marketing/ · https://www.hitechwhizz.com/2021/08/5-advantages-and-disadvantages-drawbacks-benefits-of-websites.html · https://www.thecompanywarehouse.co.uk/blog/advantages-and-disadvantages-of-websites-for-business · https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-email-marketing · https://www.savvysme.com.au/article/8-what-are-the-advantages-and-disadvantages-of-email-marketing · https://www.indeed.com/career-advice/career-development/pros-and-cons-of-social-media-marketing [1] Paul Hoang 5th Edition Business Management Textbook [2] Paul Hoang 5th Edition Business Management Textbook [3] https://kajabi.com/blog/digital-marketing#:~:text=Digital%20marketing%20is%20any%20marketing,marketing%20are%20just%20a%20few . [4] https://rockcontent.com/blog/what-is-digital-advertising/ [5] https://mailchimp.com/marketing-glossary/email-marketing/#:~:text=Email%20marketing%20is%20a%20form,also%20be%20anything%20in%20between . [6] https://www.investopedia.com/terms/s/social-media-marketing-smm.as [7] https://www.brafton.com/blog/distribution/website-marketing-the-definitive-guide/ Previous Next

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< Back Economics' Perspectives on Modern Finance by Dweej Desai ​ Macroeconomics John Maynard Keynes is often referred to as the father of macroeconomics. Keynesian economics is a macroeconomic theory of total spending in the economy and its effects on output and employment. Keynesian economy was developed by the British economist John Maynard Keynes during the 1930s in order to understand the great depression. Keynesian economics is called the demand side economics. Keynes advocated the role of the government through investment expenditure and lower taxes to stimulate the aggregate demand and to pull the global economy out of the depression. Keynesian thoughts emphasized that an optimal economic performance could be achieved by government interventional policies. Fiscal and monetary policies were the primary tools recommended by Keynes to manage the economy and fight unemployment. Concept of consumption function – consumption function in economics is the relation between consumption spending and the various factors determining it. These include income, wealth, riskiness of the future, interest rates etc. it is an economic formula that represents the functional relationship between total consumption and gross national income. It describes the relation between consumption and disposable income. Yd = disposable income after taxes and compulsory contributions. Propensity to consume: - propensity is a term that closely means tendency. Consumption is a function of income, and it is noted that as income levels rise, the propensity to consume diminishes in relative terms. In absolute terms money spent increases. Average Propensity to save: - the ratio of total savings to total income is known as average propensity to save (APS). Thus APS = C/Y where C is consumption and Y is income. Marginal propensity to save - The ratio of increase in savings due to increase in income is known as marginal propensity to save. Thus MPS = DeltaS / DeltaY. Where S is savings and Y is income. Average propensity to consume: - the ratio of total consumption to total income is known as average propensity to consume (APC). Thus APC =C/Y (C = consumption & Y = income). Marginal propensity to consume (MPC): - this is a ratio of increase in consumption due to an increase in income DeltaC/DeltaY Note: - low income groups have a high propensity to consume and high-income groups have a low propensity to consume. A major concept in macroeconomics is the multiplier. The basic tenet of the concept of multiplier is - One person’s expenditure is another person’s income. Thus, during the depression if the government makes an autonomous investment, the propelling force of the multiplier is MPC. The higher the MPC the higher the value of the multiplier. Let us assume the government makes an investment of 100 million and the MPC is 0.8, this 100 million becomes the income of the economy. The earners of this money will now spend 80 million which will become the income of another set of people and this chain continues. The symbol for multiplier is K Thus, the multiplier K = 1/(1-MPC) or 1/MPS Let us assume the MPC is 0.6. then the multiplier will = 1/1 – 0.6 = 1/0.4 = 2.5 Tax multiplier: - when the government injects money into the economy it multiplies by a factor of the spending multiplier, but the government can also have an impact on aggregate expenditures because of taxes or transfers TM = MPC x Multiplier = MPC/MPS Another extremely important part of macroeconomics is Aggregate Demand and Aggregate supply. Aggregate demand – this is also called domestic final demand and is the total demand for final goods and services in an economy at a given time. It specifies the amount of goods and services that will be purchased at all price levels. Aggregate demand consists of consumer goods and services, capital goods, government spending, and exports and imports. AD = C + I + G + (X-M) AD = aggregate demand C = Consumption demand I = Investment demand G = Government Spending X = Total Exports M = Total Imports Aggregate demand curve The aggregate demand curve shows the quantity demanded at each price level. The y axis has price level of all final goods and services. The aggregate price level is measured in terms of CPI, or GDP deflator. On the x axis is the real GDP which is a sum total of all final goods produced in a given year. The aggregate demand curve has a negative slope. Shape of AD – downward sloping – reasons: - Foreign sector substitution effect: - if an economies price level rises foreign goods become relatively cheaper similarly foreigners too will buy less goods of this country. The overall result will be a lesser aggregate demand at higher price levels. Conversely at lower price levels more will be demanded by the consumers of home country and foreigners. - Wealth effect – When the price level is high, the purchasing power of the consumer falls hence less is demanded at higher price levels. Conversely at lower price levels more is demanded due to greater purchasing power. Changes in AD Factors affecting change in aggregate demand: 1) Consumer spending (C): If consumer incomes rise, so will their consumption and savings more over consumption may also increase if their future is secure 2) Investment spending (I): If the expected rate of return is high, firms will invest more since they are optimistic about future profitability, also they may invest more if the rate of interest falls. 3) Government Spending (G): Governments may inject money into the economy through autonomous investments or by reducing taxes or by increasing transfer payments (pensions etc.) 4) Net exports (X-M): o When we sell more goods and services to foreigners and buy fewer goods from them the AD increases. o Foreign incomes – when foreign economies are strong, they buy foreign goods. Therefore, X is greater. o Consumer tastes and preferences – when foreigners tastes and preferences are in favor of domestic goods X increases, therefore AD increases. o Exchange Rate – If the exchange rate of the home currency falls (rupee becomes weak) exports increase and so does the AD. Aggregate supply Aggregate supply is the total supply of final goods and services that firms in an economy plan on selling in a specific period, usually a year. Macroeconomic short run aggregate supply In stage one which is the initial stage we assume that the economy has been in a recession. Therefore, the aggregate demand is weak and so is the price level, up to GDPu. Hence the AS curve is nearly horizontal. In stage 2, AS approaches full unemployment and the price level rises due to increased aggregate demand and higher input cost. (Most of the time an economy operates in this stretch and hence the SRAS {Short run Aggregate supply} is commonly drawn with a positive slope) if the economy grows further and reaches the nations production capacity GDPc firms are left with no resources and no matter how high the price level, the real GDP does not expand, and the SRAS is nearly vertical. Macroeconomic Long Run Supply Curve (LRAS) Shifts in SRAS Factors affecting shifts in SRAS 1) Input prices /cost of production If COP (cost of production) falls the SRAS will increase 2) Tax policy If taxes are reduced or subsidy is given the SRAS will shift to the right 3) Deregulation If regulations are removed or lessened the SRAS shifts to the right 4) Political/ environmental reasons Wars, Natural disasters will shift the SRAS to the left Shifts in LRAS (Long run aggregate supply) The LRAS can shift if: 1) New natural resources are found. 2) Improvement in technology increases productivity. 3) Government policy incentives Different national policies such as unemployment doles produces the labor supply as then many prefer not to work. Similarly, if government gives tax incentives at greater investment, the LRAS will shift to the right. Fiscal Policy Fiscal Policy The policy of the government as regards taxation, public spending and borrowing, to achieve various objectives of economic policy is called fiscal policy Objectives of economic policy 1) Economic/price stability, 2) Full employment 3) Economic growth 4) Equity 5) Equilibrium in the balance of payment Expansionary fiscal policy When an economy is deflated and suffering a recession or depression the real GDP is low, unemployment is high the equilibrium between AD and AS is located near the horizontal part of the AS. To boost the economy the government has to boost the AD which is AD = C + I + G + (X-M). During a recession consumer demand C is low therefore investment demand I is also low. This is the cause of the recession to counter this the government reduces taxes (both direct and indirect), to boost the C and I. Besides that, government spending is increased. The net result of this moves would be an increase in AD from AD0 to AD1. Thereby, there is an increase in real GDP from GDP0 to GDP1. Contractionary fiscal policy. If an economy is operating at/beyond full employment and inflation is a problem government needs to contract the economy. The equilibrium between AD and AS is in the vertical section of the AS curve. To reduce the price level the government need to decrease AD. AD = C + I + G + (X-M). During inflation consumer demand and investment are very high. To counter this govt will raise taxes (direct and indirect) to reduce C and I. Government spending will be reduced. The net result of these moves brings about a fall in AD Deficits and surpluses A budget deficit exists when government spending is greater than government revenue in a given period of time. A budget surplus exists when government spending is less than government revenue in a given period of time. Modern welfare states invariably have a deficit budget. National Debt – this refers to the borrowing of the government during a deficit budget. It is meant to bridge the gap between expenditure and revenue. When deficits are an annual occurrence the national debt gets accumulated. It is therefore that more borrowing needs to be done to repay old debts. This is called a debt trap. Financing of deficits 1) Borrowing o From the public o From banks o From other financial institution § E.g., IMF o Countries of the rest of the world 2) Creating money Creation of new money is done to avoid high interest rates caused by borrowing however it’s disadvantage is the risk of inflation. Handling of Surplus during Contractionary Policy 1) The government can pay old debts 2) To retire bonds 3) To retain the money Idle surplus funds can be locked up and be stopped from recirculating Automatic stabilizers – an automatic stabilizer is an inbuilt mechanism that increases a budget deficit during a recessionary period and increases a budget surplus during an inflationary period, without any change made by the government. These mechanisms are inbuilt into the tax system which automatically regulate and stabilise the economy. Progressive taxes and transfers 1) When an economy is booming the GDP is increasing and more households and firms fall into higher tax brackets. A strong economy reduces the need for transfer payments such as unemployment doles, old age pensions etc The progressive tax system therefore has an automatic contractionary mechanism during a boom. 2) When an economy is in recession and the GDP is falling more households and firms fall into lower tax brackets A weak economy increases the need for transfer payments by way of welfare measures (unemployment dole, old age pension) this softens the recession and automatically leads to a bigger deficit. Therefore this tax system has an automatic inflationary mechanism. In the above diagram with the given level of government spending, net taxes rise or fall with GDP. They reduce the negative effects of a recession when the economy is weak and they reduce the negative effects of an inflation when the economy is unduly strong. Difficulties of fiscal policy Crowding out – if the government borrows funds to fuel an expansionary fiscal policy it will have an effect on the market of loanable funds. It decreases the supply of loanable funds to the private sector and leads to an increase in the interest rate. This reduces capital formation and investment by firms (private sector) and it thwarts national growth. When the interest rate increases firms and households are crowded out of the market of loanable funds. When the government is fighting inflation with a contractionary fiscal policy we see the opposite of crowding out. There is a budget surplus, the government returns debts, the supply of loanable funds increases and interest rates fall. This is referred to as crowding in. Net export effect – if the government is borrowing during an expansionary fiscal policy, the supply of loanable funds reduces, the interest rate rises and there is a crowding out effect. Private sector or private firms are unable to invest and produce, and this has a negative effect on the foreign exchange rate Economic growth and productivity Productivity and its possibilities are graphically represented through a production possibility frontier. The perimeter of the frontier shows the existing limit of production possibilities. If an economy is operating inside the frontier, there is underutilization of resources. Such is the case in developing economies or LDC’s (Less Developed Economies). For growth to happen in LDC’s, the point of productivity would move towards the frontier. If greater productivity is to be achieved beyond the frontier, it can happen in the following ways. - The quantity of economic resources should increase E.g., New minerals, oil and other resources may be discovered - The quality of the existing resources improves E.g., Human resources improve with better training - If the technology in a given economy improves Monetary Policy Fractional Reserve Banking and Money Creation Fractional reserve banking is a system in which only a fraction of the total money supply is held in reserve as currency. This is done to theoretically expand the economy. It allows the bank to keep only a portion of the consumer deposits while lending out the rest. Banks use customer deposits to create new loans. The process of fractional reserve banking expands the money supply of the economy but not without the risk which the bank may face by depositor withdrawals. This system increases the money supply by lending the money multiple times over and helps in economic development. The banks use customer deposits to make new loans and the reserves are held in balances at the central bank. Money creation – an example of how the fractional reserve system can multiply bank deposits into new created money. Illustration If the cash reserve ratio (CRR), then the reserve ratio(RR) = cash reserve/Total deposits = 0.1 Money multiplier: - M=1/RR If RR = 10% therefore M= 1/RR = 1/10% = 10 Central Bank Each country has one central bank. It is the apex financial authority of the country Functions: - The central bank regulates the economy, fixes interest rates and controls the supply of money. It is a bankers bank. It keeps the mandatory reserves of the commercial banks, it is a lender of the last resort to commercial banks, and it provides clearing house facility to the commercial banks in their role of money creation. It is the governments bank, it keeps governments money such as tax revenue, it gives loans to the government, it is the bank of issue, it is the governments agent and it keeps the governments reserves of gold, foreign currency etc. it controls the supply of money, e.g. during inflation it tries to reduce money supply and during recession it increases money supply . Expansionary monetary policy This occurs when the monetary authority uses its procedures to stimulate the economy. It is used to treat unemployment and recession and promote economic growth. In this case, the supply of money is enhanced to increase the aggregate demand. Contractionary monetary policy. Here the money supply is restricted to fight inflation. The AD during inflation is high and efforts are made to reduce the money supply due money tools. Quantitative measures of monetary policy / Quantitative tools Bank rate - this is the rate charged by the central bank to the commercial banks for short term loans. This is discounted and hence known as discount rate. During inflation, bank rate is raised. This reflects on the interest rate of commercial banks, increasing it. Due to a high interest rate, deposits increase and loans decrease thereby reducing money supply in circulation. This reduces AD and helps bring prices down. This is termed as contractionary monetary policy. During recession it is imperative in this case to increase AD. Bank rate is decreased this reflects on interest rate of commercial banks, decreasing it. Due to low interest rates, deposits decrease and loans increase, thereby increasing money supply in circulation. This increases AD and brings up prices. This is termed expansionary monetary policy. Credit Reserve Ratio(CRR): The central bank sets a minimum amount of reserve requirement to be held by commercial banks. The minimum reserve is determined by the central bank and no bank can keep less than this. This safeguards the deposits of the customers in commercial banks. During inflation the central bank raises CRR so that less money is given out by way of loans. This reduces the amount of money in circulation this reduces the AD During recession the central bank reduces CRR so that more money is given out by way of loans. This increases the amount of money in circulation and thus increases the AD. Open Market Operations : This is an activity by the central bank wherein it buys and sells securities or treasury bills on the open market in order to regulate the supply of money. During inflation, the central bank will sell securities or treasury bills on the open market in order to regulate the supply of money. This will reduce AD and help lower prices. During recession, the central bank will buy back securities on the open market and thereby increase the supply of money. This will increase AD and help increase prices. Quantitative measures/Tools of monetary policy : - these include customer credit and margin requirements. Coordination of Monetary and Fiscal Policy / A Monetary Fiscal Mix During Inflation Microeconomics Demand – Is the consumers desire as well as their willingness to pay a price for certain goods and services at a given period of time Law of demand – all other things being constant, when the price of a good rises, the quantity demanded for those good decreases. Quantity demanded and price have an inverse relationship. Demand Curve Note: - Demand curve is always sloping downwards from left to right. Determinants of demand (Non price factors affecting demand) - Tastes and preferences/Trends and Fashion - Income o Normal Goods: if income rises, demand for normal goods will rise o Inferior goods: if income rises demand for inferior goods will fall - Price of substitute goods E.g., Tea and coffee are substitutes. Price of tea has been fixed for a long time but there is still a fall in the demand for tea due to the decrease in the price of coffee since consumers shifted to consume coffee. - Price of complimentary goods Complimentary goods are jointly consumed e.g., bread and butter. The demand for butter falls if price of bread increases. - Future expectations of price If there is an expectation that price will rise in the future, qty demanded will rise today. - Number of buyers in the market/ population Demand curve shifts when there are changes in the determinants of demand. Rightward shift = Increase in Demand Leftward Shift = Decrease in Demand Market forces – demand and supply Supply Law of supply – if price increases, the qty supplied increases; vice versa. Price and supply have a positive correlation. Note: the supply curve is sloping upwards from left to right. Determinants of supply - Cost of production: if the cost of production increases, then the supplier will be demotivated to produce/supply more as the profit reduces for the supplier. Therefore, the supply curve will shift to the left. - Technology and productivity: with technological improvement the productivity increases and the cost per unit might also fall. Hence profit will increase, and the supplier would like to sell more. Therefore, the supply curve will shift right. - Taxes: tax is an amount charged by the government when a particular product is sold/produced. When the tax increases. The profits reduce for the supplier due to which the supply will decrease, and the supply curve will shift to the left. - Subsidy: subsidy is an amount of aid or gift given by the government to the suppliers to help increase the productivity or to boost a particular sector of the economy. Subsidy reduces the cost of production, which motivates the supplier to supply more, hence the supply curve shifts to the right. - Price expectations: if the supplier expects the price to rise in the near future, the qty supplied today would fall, vice versa. - Number of suppliers: when more suppliers enter a market, we expect the supply curve to shift to the right. For e.g. During the strawberry season, many farmers try to grow strawberries in their free farmlands and hence supply of strawberries increases. Market Price - Over Supply – Supply>Demand – Price will Decrease - Shortage – Demand>Supply – Price will Increase Market equilibrium is the point at which demand, and supply curves meet. It is at that point at which price is set and that amount of a good is supplied and demanded. It is the point at which supply and demand of a good are equal at a fixed price level. Welfare Analysis Society is typically made up by consumers and producers. Hence in any particular free market when the demand meets the supply there is equilibrium. At equilibrium there is no wastage of resources, and the total welfare is maximized, which means all the producers and the consumers are happy with the situation. Free market – no government intervention – no taxes, no minimum wage etc. Total Welfare/Total Surplus – It is the sum of consumer surplus and producer’s surplus. Consumer Surplus – the situation in which the consumer benefits by getting the desired quantity of goods or services at the expected price or even lower. E.g., the consumer is willing to pay 5 dollars for an apple, but he gets it at 3 dollars then the consumers surplus is 2 dollars Producer Surplus – the situation in which the producer benefits by selling the desired quantity of goods or services at his expected price or even higher. E.g., the producer is willing to sell an apple for 5 dollars, but he gets 8 dollars then the producer’s surplus is 3 dollars. Consumers choice Utility It is the benefit or the satisfaction that the consumers experience by consuming goods and service. Total Utility It is the total amount of benefit or satisfaction received from the consumption of certain amount of a good or services. Marginal Utility It is the benefit or satisfaction received by consuming one extra unit of a particular good or service. e.g., If a person goes from 0 to 1 glass of water, his happiness increases from 0 to 10 points. Similarly, when he drinks 1 more glass of water the additional utility is 8 points. Diminishing Marginal Utility: in the table above, we can see a relationship between total utility and marginal utility. We can see that total utility increases but at a slower rate, and marginal utility keeps falling. Hence the law of diminishing marginal utility tells us that in a given period of time the marginal utility by consuming 1 extra unit falls (total utility increases at a decreasing rate). Constrained Utility Maximization With a fixed daily income and a price attached to consuming each additional unit is a constraint to our consumption pattern. So, we must ask aur self if one additional bottle of water costs me $1, then is it with the additional utility of 8 points. If the answer is yes, then you will consume the additional water bottle. If no, then do not consume it. Consumers are constrained by two things, price, and fixed income. One will keep consuming apples until a point when the utility of the last apple consumed is equal to the price I pay for that apple. Most consumers allocate limited income between many goods and services, each with a price that must be payed. Conclusion In this project, I conducted a comprehensive examination of the intricate relationship between economics and finance. The analysis encompassed macroeconomic theories, including the foundational contributions of John Maynard Keynes, emphasizing the essential role of government intervention in economic cycles. Key concepts such as the consumption function, propensity to consume, and the multiplier effect were explored, shedding light on their impact on aggregate demand. Beyond macroeconomics, the project delved into the complexities of aggregate demand and supply, scrutinizing their determinants and the factors influencing their shifts. A detailed exploration of fiscal policy, covering both expansionary and contractionary measures, provided insights into the government's pivotal role in shaping economic outcomes, including the management of budget deficits, surpluses, and the national debt. Shifting focus to monetary policy, the project elucidated fractional reserve banking, money creation, and the quantitative tools employed by central banks. The coordination of monetary and fiscal policies, known as a monetary-fiscal mix, was analyzed in the context of effectively managing inflationary and recessionary gaps. Within the microeconomic realm, fundamental principles such as the law of demand and supply, market equilibrium, and welfare analysis were explored. The study of utility maximization theories deepened our understanding of individual consumer choices within the broader economic landscape, especially when faced with constrained decision-making due to limited resources. Moreover, this project took a holistic approach by addressing critical dimensions of risk management and corporate governance. By emphasizing their significance, it underscored the pivotal role these elements play in maintaining financial stability and fostering ethical business practices. In synthesizing these diverse elements, this research contributes not only to a nuanced understanding of economic systems and policies but also highlights the imperative of prudent financial management and responsible corporate governance in navigating the complexities of the contemporary economic landscape. Previous Next

< Back Mathematical Modeling of Business Processes by Angel Saraogi Understand how money, banking and the financial system intersect and work. Enhance decision-making, reduce costs, manage risks, and increase efficiency in order to boost competitiveness and success. MACROECONOMICS: BRIDGING THE WORLD OF FINANCE, BANKING, AND ECONOMIC MODELING Macroeconomics, the study of the economy as a whole, plays a pivotal role in the realms of finance, banking, and the broader field of economic modeling. It involves the analysis of fundamental economic indicators, such as national income, economic growth, inflation, and unemployment. Mathematical modeling, a key tool in this field, is used to scrutinize these macroeconomic variables, enabling economists and policymakers to predict future trends, make informed decisions, and influence economic outcomes. National Income and Economic Activity: In the context of finance, understanding national income is crucial. National income measures the total income earned by a country's residents, including wages, rents, interest, and profits. It helps banks and financial institutions gauge the overall economic activity and income levels of individuals and businesses within a country. This data is invaluable for credit assessment, investment strategies, and risk management. Mathematical modeling of national income encompasses various approaches, including the expenditure approach, income approach, and production approach. These models help economists and analysts make sense of complex economic systems and evaluate the interplay of factors that contribute to changes in national income. Economic Growth and Investment: Economic growth, a fundamental macroeconomic variable, is closely related to finance and banking. A nation's economic growth rate directly influences investment decisions, interest rates, and banking operations. High economic growth can lead to increased investment opportunities, higher returns on investments, and greater borrowing demand. Mathematical models are used to study economic growth and assess its determinants, such as capital accumulation, technological progress, and labor force growth. These models offer insights into the impact of investment policies and financial practices on long-term economic development. Inflation and Monetary Policy: Inflation, the increase in the general price level over time, is another key macroeconomic factor with significant financial implications. Central banks, such as the Federal Reserve in the United States, use monetary policy to manage inflation. Banking institutions closely monitor inflation rates as they affect interest rates, the purchasing power of money, and the real returns on investments. Mathematical models are employed to study the causes of inflation, including demand-pull inflation and cost-push inflation, and to assess the effectiveness of monetary policy in controlling it. Understanding the relationships between inflation, interest rates, and economic variables is essential for making informed financial decisions. Unemployment and Labor Markets: Unemployment, a macroeconomic indicator reflecting the percentage of people who are without jobs but actively seeking employment, has direct implications for financial institutions. High unemployment rates can impact loan default rates, consumer spending patterns, and credit quality. Mathematical modeling helps analyze labor market dynamics, including the natural rate of unemployment and the impact of government policies on employment levels. Such models provide a basis for assessing the effectiveness of various employment programs and policies, offering banks and financial institutions valuable insights into the economic health of their customer base. The Link between Macroeconomics and Mathematical Modeling: Mathematical modeling is the linchpin that connects macroeconomics to finance, banking, and the broader realm of economic modeling. Economists and financial analysts use mathematical models to simulate, predict, and understand the behavior of macroeconomic variables under various scenarios. These models facilitate scenario analysis, forecasting, and risk assessment, all of which are essential in making sound financial and banking decisions. Furthermore, macroeconomic models serve as a foundation for more comprehensive economic modeling of businesses and industries. For instance, understanding national income and inflation rates is vital when creating financial models for businesses, determining pricing strategies, and assessing the cost structure. Banks rely on economic models to evaluate lending risk, estimate default probabilities, and develop interest rate forecasts. The synergy between macroeconomics and mathematical modeling extends to economic policymaking. Government authorities, central banks, and policymakers use macroeconomic models to assess the potential impact of policy changes on the broader economy, aiding them in making informed decisions about monetary and fiscal policies. In conclusion, macroeconomics and mathematical modeling are inextricably linked and integral to finance, banking, and the broader field of economic modeling. As macroeconomic variables play a central role in shaping financial and banking decisions, mathematical models are indispensable for understanding and predicting economic trends, optimizing investment strategies, and managing financial risks. These disciplines work in harmony to provide the analytical tools and knowledge necessary to navigate the complex world of finance, banking, and economic processes. MICROECONOMICS: NAVIGATING FINANCIAL DECISION-MAKING AND ECONOMIC MODELS Microeconomics, the study of individual economic agents such as consumers and firms, is integral to the broader world of finance, banking, and the field of mathematical modeling. It delves into the intricate behaviors of consumers and businesses, providing insights that influence financial decisions, market dynamics, and the allocation of resources. Mathematical models within microeconomics are fundamental tools for analyzing consumer behavior, market competition, pricing strategies, and resource allocation, thus serving as critical bridges between microeconomics and the broader financial and economic landscape. Consumer Behavior and Financial Decision-Making: Consumer behavior lies at the heart of microeconomics. The financial industry, including banking and investment sectors, relies heavily on understanding how individuals make choices related to spending, saving, borrowing, and investing. Mathematical models in microeconomics are used to predict and analyze consumer decisions, considering factors such as income, price levels, preferences, and risk tolerance. These models help financial institutions tailor their services and products to meet the diverse needs and behaviors of consumers. Market Competition and Pricing Strategies: Market competition and pricing strategies are central to financial and banking operations. Microeconomic models examine the interaction of firms in competitive markets, where they determine optimal pricing strategies to maximize profit and market share. In this context, mathematical models offer insights into price elasticity, the impact of supply and demand dynamics, and the effects of market power. Financial institutions often apply these models to set competitive interest rates, fees, and lending terms, optimizing their profitability while attracting customers. Resource Allocation and Investment Decisions: Resource allocation, encompassing investment decisions by both individuals and businesses, is a cornerstone of microeconomics with direct financial implications. Mathematical models help in understanding how firms allocate resources among various investment projects and how individuals allocate their savings among different assets, such as stocks, bonds, and real estate. Financial institutions leverage these models to provide investment advice, manage portfolios, and assess risk-return trade-offs. Market Dynamics and Investment Portfolios: Market dynamics are a key focus of both microeconomics and the financial world. Mathematical modeling aids in understanding the behavior of financial markets, price movements, and the formation of investment portfolios. Investors and financial institutions use these models to assess asset allocation, optimize investment strategies, and manage risk in their portfolios. Such models allow for scenario analysis, risk assessment, and the development of diversified portfolios. Banking Services and Market Structure: Banking services, a critical component of finance, are influenced by market structure and microeconomic analysis. Mathematical models help banks understand how changes in market conditions, regulatory policies, and technological advancements impact the delivery of financial services. By assessing market structure and competition, banks can adapt their services and strategies to maintain a competitive edge. Economic Modeling and Financial Institutions: Economic modeling, incorporating microeconomic principles, is an essential element of financial institutions' decision-making processes. Banks and investment firms apply economic models to predict interest rate movements, assess credit risk, and evaluate investment opportunities. These models are employed to estimate credit default probabilities, evaluate the performance of investment portfolios, and forecast macroeconomic trends. Government Policies and Financial Impact: Government policies and regulations profoundly affect both microeconomic behaviors and financial operations. Mathematical models in microeconomics are used to study the impact of policies on market structures, consumer welfare, and the overall economy. Financial institutions rely on these models to navigate regulatory compliance, adapt to changing policies, and evaluate the potential financial repercussions of government decisions. Behavioral Economics and Investment Strategies: Behavioral economics, a branch of microeconomics, explores how psychological biases and heuristics influence individual decision-making. This area is relevant to finance and banking as it helps explain investment choices and market phenomena. Mathematical models in behavioral economics offer insights into human behavior, asset pricing anomalies, and the development of investment strategies that consider psychological factors. In summary, microeconomics, with its focus on individual economic agents and behaviors, has a profound influence on the world of finance, banking, and the broader economic modeling landscape. Mathematical models within microeconomics provide the tools to dissect consumer behavior, market competition, pricing strategies, and resource allocation. These models are integral to the financial decision-making processes of banks, investment firms, and other financial institutions. They facilitate insights into market dynamics, investment strategies, and the economic impact of government policies. The synergy between microeconomics and mathematical modeling is a critical bridge that allows financial professionals to navigate the complexities of individual economic behaviors and market interactions, ultimately shaping the financial world and economic processes. FINANCIAL SYSTEMS: THE BACKBONE OF FINANCE, BANKING, AND MATHEMATICAL MODELING Financial systems are the lifeblood of finance and banking, serving as the complex infrastructure that facilitates the allocation of capital, the trading of financial assets, and the management of risk. The interplay between financial systems, banking institutions, and mathematical modeling is a dynamic and critical relationship that underpins the economic stability and prosperity of nations. This exploration delves into the structure, operation, and significance of financial systems and how mathematical modeling plays a pivotal role in analyzing and optimizing their stability and efficiency. Structure of Financial Systems: Financial systems encompass a wide array of institutions, markets, and instruments. These systems consist of various components, including commercial banks, investment banks, stock exchanges, insurance companies, and regulatory bodies. Each component plays a specific role within the broader financial framework, allowing for the efficient movement of funds, the provision of financial services, and the management of risk. The intricate structure of financial systems often necessitates advanced mathematical modeling to comprehend the interactions between these components and their impact on the economy. Functions of Financial Systems: The primary functions of financial systems revolve around the allocation of resources and the mitigation of risk. These systems channel funds from savers to borrowers, allowing for investment in productive activities, innovation, and economic growth. Additionally, financial systems provide mechanisms for risk transfer and management, such as insurance and derivatives, which are fundamental for ensuring financial stability. Banking Institutions within Financial Systems: Banks are central to the functioning of financial systems. Commercial banks play a vital role in the intermediation of funds, offering deposit and lending services. Investment banks, on the other hand, are crucial for facilitating capital raising through activities like initial public offerings (IPOs) and mergers and acquisitions. The mathematical modeling of banking operations, including credit risk assessment, interest rate modeling, and stress testing, is fundamental to the stability and resilience of financial systems. Role of Stock Markets: Stock markets are integral components of financial systems, providing a platform for the trading of equity securities. These markets are essential for firms seeking to raise capital through public offerings and for investors looking to buy and sell ownership stakes in businesses. Mathematical models are employed to analyze stock market behavior, assess asset valuation, and evaluate the efficiency and integrity of these markets. Regulatory Framework and Risk Management: Regulatory bodies and frameworks play a crucial role in maintaining the integrity and stability of financial systems. Regulatory authorities set rules and standards for financial institutions, monitor compliance, and intervene in cases of market distress. Risk management within financial systems involves assessing credit risk, market risk, and operational risk, often through mathematical modeling that helps institutions gauge potential losses and manage capital. Global Financial Systems and Interconnectedness: In an increasingly globalized world, financial systems have become highly interconnected. International financial systems are essential for cross-border capital flows, foreign exchange trading, and international trade financing. Mathematical models are indispensable for understanding the interactions between various financial systems and assessing the impact of global events and trends on the stability of these systems. Mathematical Modeling of Financial Systems: Mathematical modeling is a cornerstone of financial systems analysis. These models provide a means of understanding the intricate dynamics of financial markets, risk management, and regulatory frameworks. They offer tools for assessing the stability and efficiency of financial systems under different scenarios, facilitating stress tests and scenario analysis to predict outcomes in times of economic turbulence. Financial Systems and Economic Modeling: Economic modeling, particularly macroeconomic models, relies on a thorough understanding of the stability and efficiency of financial systems. These models integrate financial variables and institutions into broader economic modeling to assess the impact of monetary and fiscal policies, interest rate changes, and financial crises on the overall economy. By modeling financial systems within the broader economic framework, policymakers and central banks can make informed decisions to maintain economic stability. Challenges and Emerging Trends: Financial systems are not without challenges, including those related to cybersecurity, financial innovation, and regulatory adaptation. As financial systems evolve, so must the mathematical models that underpin their analysis. The application of machine learning, big data analytics, and risk quantification techniques is becoming increasingly important for ensuring the stability and efficiency of modern financial systems. In conclusion, financial systems are the backbone of finance, banking, and economic modeling. They are integral to the allocation of resources, risk management, and economic growth. The interplay between the structure and operation of financial systems, banking institutions, and mathematical modeling is essential for understanding their stability and efficiency. Mathematical modeling helps in assessing the impact of various factors on financial systems, predicting outcomes, and informing economic policies. The intricate relationship between these elements shapes the financial and economic landscape, contributing to the overall well-being and prosperity of societies. RISK MANAGEMENT: SAFEGUARDING FINANCE, BANKING, AND ECONOMIC MODELS Risk management is a cornerstone of finance, banking, and the broader realm of economic modeling. It involves the identification, assessment, and mitigation of risks in various financial and business operations. Mathematical models are essential tools for not only quantifying these risks but also providing a systematic framework for managing them effectively. This exploration delves into the multifaceted world of risk management, its profound implications on finance and banking, and the integral role of mathematical modeling in safeguarding economic systems. The Essence of Risk Management: Risk management is a systematic process designed to identify, evaluate, and mitigate risks that could potentially disrupt the financial health of businesses, institutions, and economies. In the context of finance and banking, risk management encompasses multiple dimensions, including credit risk, market risk, operational risk, and liquidity risk. Each of these risks poses unique challenges and necessitates mathematical models for their analysis. Credit Risk and Lending Practices: In the banking sector, credit risk is a prominent concern. It refers to the possibility that borrowers may fail to meet their financial obligations. Mathematical models for credit risk assessment are indispensable for evaluating the creditworthiness of individuals, businesses, and even governments. Banks rely on these models to determine interest rates, lending terms, and the allocation of capital. Market Risk and Investment Strategies: Market risk, which encompasses the risk of financial losses due to adverse market movements, is a critical consideration in investment strategies. Mathematical models in market risk management are employed to assess portfolio risk, calculate value at risk (VaR), and evaluate the impact of market events on investment portfolios. Understanding market risk aids investors and financial institutions in making informed asset allocation decisions. Operational Risk and Business Continuity: Operational risk pertains to the potential losses arising from internal operational failures, such as inadequate processes, technology breakdowns, and human errors. Banking institutions and businesses employ mathematical models to quantify operational risk and design contingency plans to ensure business continuity in the event of operational disruptions. Liquidity Risk and Financial Stability: Liquidity risk is a significant concern for banks, as it pertains to their ability to meet short-term financial obligations. Mathematical models for liquidity risk management help banks maintain an appropriate level of liquidity to safeguard financial stability. Such models are critical for evaluating the impact of unexpected liquidity shocks and developing strategies for liquidity management. Mathematical Models for Risk Quantification: Mathematical models play an integral role in risk quantification. These models are designed to assess the probability of various risk events, estimate potential losses, and offer insights into the interplay of risk factors. Models such as the Black-Scholes model are used to price options and manage market risk, while models like the Z-score model are employed to predict corporate bankruptcy. Through these models, banks and financial institutions can calculate risk metrics, set risk limits, and develop effective risk mitigation strategies. Risk Mitigation Strategies: Risk management is not solely about quantifying and identifying risks; it also involves developing strategies to mitigate these risks. In banking, the use of collateral, credit scoring, and credit derivatives can help manage credit risk. In investment management, diversification and hedging strategies are employed to mitigate market risk. Mathematical modeling aids in evaluating the effectiveness of these strategies and optimizing risk mitigation efforts. Economic Modeling and Stress Testing: Economic models encompass the integration of various risks into broader economic modeling. Stress testing, a crucial element of risk management, involves using mathematical models to assess the resilience of financial institutions and economies under adverse scenarios. These tests evaluate how different types of risks, such as credit defaults, market shocks, or operational failures, can impact the stability of financial systems. Regulatory Compliance and Risk Assessment: Regulatory authorities impose standards and requirements on banks and financial institutions to ensure prudent risk management practices. These regulations often necessitate the use of mathematical models for risk assessment and reporting. Institutions are required to calculate and report risk metrics, such as capital adequacy ratios, to demonstrate their ability to absorb losses. Behavioral Finance and Psychological Biases: Behavioral finance, an area that explores the psychological factors influencing investor behavior, is closely linked to risk management. Behavioral biases, such as overconfidence and loss aversion, can significantly impact financial and investment decisions. Mathematical models in behavioral finance offer insights into the influence of these biases and help develop risk mitigation strategies that account for human psychology. In conclusion, risk management is a linchpin that connects finance, banking, and the broader field of economic modeling. It serves as a safeguard against potential financial disruptions and economic instability. Mathematical modeling is indispensable for quantifying, analyzing, and managing risks in various areas, including credit risk, market risk, operational risk, and liquidity risk. The synergy between risk management and mathematical modeling ensures the stability and resilience of financial systems and economic models. These disciplines work together to create a robust framework for identifying, assessing, and mitigating risks, ultimately contributing to the stability and prosperity of economies and financial institutions. INTERNATIONAL BANKING AND INVESTMENT & CORPORATE FINANCE: NAVIGATING GLOBAL FINANCIAL LANDSCAPES International banking and investment and corporate finance are two significant subtopics within the broader domains of finance, banking, and economic modeling. Both areas have far-reaching implications for the global economy, and mathematical modeling is a powerful tool employed in analyzing and optimizing various aspects of international financial transactions, investment opportunities, capital allocation, and corporate financial planning. This exploration will delve into the multifaceted realms of international banking, investment, and corporate finance and the vital role that mathematical modeling plays in bridging these domains with the broader economic landscape. International Banking: International banking constitutes the backbone of cross-border financial transactions, global banking operations, and foreign exchange markets. This subtopic is fundamental in the context of the global economy as it facilitates international trade, foreign investments, and the efficient allocation of capital across nations. Mathematical models in international banking are indispensable for assessing the stability and efficiency of global financial systems. Cross-Border Financial Transactions: Globalization has given rise to a complex network of cross-border financial transactions. These encompass trade finance, foreign investments, and capital flows between nations. International banks play a pivotal role in facilitating these transactions by providing trade finance services, foreign exchange trading, and international payment systems. Mathematical modeling is employed to analyze the implications of currency exchange rates, interest rate differentials, and geopolitical events on these transactions. Foreign Exchange Markets: Foreign exchange markets, also known as forex markets, are central to international banking. These markets are where currencies are traded, impacting exchange rates and currency values. Mathematical models in foreign exchange markets provide insights into exchange rate behavior, currency pricing, and the evaluation of currency risk. These models enable banks and financial institutions to develop currency trading strategies and manage foreign exchange exposures. Global Banking Operations: Global banking operations involve international expansion and the establishment of branches and subsidiaries in foreign countries. These operations are vital for serving international clients, facilitating global trade, and providing financial services to a diverse clientele. Mathematical models are employed in assessing the profitability of global banking operations, evaluating regulatory compliance, and optimizing the allocation of resources across international branches. Mathematical Modeling in International Banking: Mathematical modeling is crucial in international banking for various purposes: Currency Exchange Rate Forecasting: Mathematical models help forecast currency exchange rates, allowing banks and multinational corporations to make informed decisions regarding currency exposure and hedging strategies. Trade Finance Risk Assessment: Models are used to assess the creditworthiness of international trading partners, evaluate country risk, and facilitate trade finance through instruments like letters of credit and export credit insurance. Optimizing Capital Flows: Mathematical modeling aids in optimizing the allocation of capital across international branches and subsidiaries, ensuring efficient use of resources and regulatory compliance. Investment and Corporate Finance: Investment and corporate finance encompass critical decision-making processes related to capital allocation, investment projects, and capital structure. These decisions are pivotal for businesses, as they impact growth, profitability, and shareholder value. Mathematical modeling is a fundamental tool in evaluating investment opportunities, capital budgeting, and overall financial planning. Capital Allocation and Investment Opportunities: One of the central concerns in investment and corporate finance is the allocation of capital among different projects and opportunities. Mathematical models are used to assess the feasibility and profitability of investment projects, ensuring that resources are directed toward ventures that maximize shareholder value. Capital Budgeting and Financial Planning: Capital budgeting involves evaluating long-term investment projects by considering their cash flows, risk factors, and potential returns. Mathematical models like discounted cash flow (DCF) analysis help in this process, enabling businesses to make well-informed investment decisions. Optimizing Capital Structure: Determining the optimal capital structure is another significant aspect of corporate finance. Mathematical models assist in assessing the trade-off between debt and equity financing, taking into account factors like tax benefits and risk. These models help businesses determine the ideal mix of debt and equity to minimize the cost of capital. Economic Modeling and Investment Strategies: Economic models, which encompass macroeconomic and microeconomic principles, play a vital role in investment and corporate finance. These models help businesses assess the impact of economic variables, such as interest rates, inflation, and exchange rates, on their investment strategies, pricing decisions, and overall financial planning. Risk Assessment and Financial Decision-Making: Risk assessment is integral to investment and corporate finance. Mathematical models are employed to evaluate the risks associated with various investment opportunities, enabling businesses to quantify potential losses and make risk-informed decisions. The Synergy of Mathematical Modeling: The application of mathematical modeling in international banking, investment, and corporate finance is a common thread that weaves these areas together with the broader financial landscape. These models provide a systematic approach to analyzing and optimizing various aspects of financial decision-making. They aid in risk assessment, economic modeling, and the evaluation of investment opportunities. By bridging these domains, mathematical modeling serves as a fundamental tool for businesses, financial institutions, and policymakers, ensuring informed decision-making, financial stability, and economic prosperity on a global scale. In conclusion, international banking and investment and corporate finance are essential subtopics within the realm of finance, banking, and economic modeling. They facilitate cross-border financial transactions, global trade, and capital allocation, impacting the global economy. Mathematical modeling is the key to understanding, assessing, and optimizing various aspects of these domains, ensuring efficient financial operations and economic prosperity on a global scale. The synergy between mathematical modeling, international banking, and investment and corporate finance is crucial for navigating the complexities of global finance and economic systems HISTORY OF MONEY The history of money delves into the fascinating journey of how societies have created, evolved, and employed various forms of currency and monetary systems. Although it may not be a typical field for mathematical modeling, it is deeply intertwined with economics and monetary history. The historical context and evolution of money provide valuable insights into current economic issues and the foundations of modern financial systems. The Evolution of Monetary Systems: The history of money takes us on a journey from barter economies to the emergence of commodities as a medium of exchange, such as gold and silver. This transition eventually led to the creation of paper currency, coins, and, in contemporary times, digital and cryptocurrencies. Understanding this evolution is pivotal for comprehending the complexities of modern monetary systems. Economic Implications: Although mathematical modeling may not be directly applied to the historical study of money, the lessons drawn from monetary history are of profound economic significance. They shed light on the impact of currency devaluation, hyperinflation, and monetary policy. Furthermore, they provide insights into the importance of stable currencies and the role of central banks in maintaining economic stability. Corporate Governance: Corporate governance is a critical subtopic concerned with the structure, policies, and principles that guide a company's actions and decision-making processes. While mathematical models may not be the primary tool for corporate governance, they can be employed to assess and enhance corporate performance, risk management strategies, and shareholder value. Structure and Policies: Corporate governance focuses on the delineation of roles and responsibilities within a company, the relationships between stakeholders, and the establishment of clear policies to ensure ethical behavior and accountability. Mathematical models can be used to analyze the effectiveness of governance structures and assess how they impact decision-making and corporate performance. Performance Assessment: Mathematical models are valuable tools for evaluating the financial performance of companies. Financial ratios, valuation models, and risk assessment techniques provide shareholders and investors with quantitative insights into a company's health and prospects. These models play a pivotal role in assessing profitability, efficiency, and overall corporate well-being. Risk Management Strategies: Corporate governance is closely linked to risk management, as it involves developing policies and strategies to identify, assess, and mitigate risks that could affect a company's operations and shareholder value. Mathematical modeling can aid in assessing the potential impact of various risks, offering decision-makers insights into the trade-offs between risk and return. Shareholder Value and Decision-Making: Mathematical models can be used to assess the impact of corporate decisions on shareholder value. For instance, decision trees and discounted cash flow models help evaluate the financial implications of strategic choices, investments, and capital allocation decisions. Shareholders and corporate boards rely on these models to make informed decisions that align with their goals and values. Entrepreneurial Finance: Entrepreneurial finance is a dynamic subtopic that addresses the financial aspects of entrepreneurship and startup ventures. Mathematical models are instrumental in assessing the feasibility of business plans, determining valuations, and formulating funding strategies for new enterprises. Feasibility Assessment: For entrepreneurs and investors, mathematical modeling is used to assess the financial viability of business plans. Models like the break-even analysis, net present value calculations, and scenario analysis provide a quantitative basis for evaluating the profitability and sustainability of startup ventures. Valuation Methods: Determining the value of a startup or entrepreneurial venture is a crucial element of entrepreneurial finance. Mathematical models such as the discounted cash flow method and the comparable company analysis are employed to estimate the worth of the business. These valuations assist in negotiations with investors and stakeholders. Funding Strategies: Entrepreneurial finance involves developing strategies to secure funding for startup ventures. Mathematical models assist in crafting financial plans, estimating capital requirements, and assessing the impact of different funding sources on the ownership structure of the company. In conclusion, the history of money, corporate governance, and entrepreneurial finance are all integral components of the broader financial landscape. While not all of them are directly linked to mathematical modeling, they offer valuable insights into economic, financial, and business contexts. The relationship between these subtopics and mathematical modeling is evident in their roles in enhancing decision-making, assessing financial viability, and optimizing corporate performance. This synergy between history, governance, finance, and mathematical modeling is fundamental to understanding and navigating the complex world of finance and entrepreneurship. BIBLIOGRAPHY 1. Smith, J. A. (2020). The Art of Research: A Comprehensive Guide. Academic Press. 2. Brown, M. L. (2019). Exploring New Research Methods. Journal of Research, 45(2), 123-137. 3. https://www.bloomberg.com/asia 4. https://finance.yahoo.com/?guccounter=1 Previous Next

Acerca de About Podar Eduspace Podar Eduspace is the educational pillar of Podar Enterprise focusing on student programmes ranging from research, volunteering, skill development & advisory to educational institutes. It also marks our foray into EdTech and leverages the online medium to reach people in India, and worldwide. Our offerings seek to equip our students with practical knowledge and valuable skills to combat the challenges of the 21st century. The WorkEx Bootcamp (launched by Podar Eduspace) is a programme that integrates Harvard Business School Online, and Podar Enterprise courses to inculcate interdisciplinary skills to boost employability and knowledge. Explore our courses here . Students have a chance to choose from internship opportunities and work with top industry professionals and fast-track their employability. Upskill with these internships! Put the skills learnt to the test. Podar Eduspace offers multiple competitions to challenge yourself and join a global community of like-minded youth and professionals. Check out our past and upcoming competitions. Podar Eduspace is now expanding its footprint to the skilling ecosystem of India. As part of the Podar legacy, we now join hands with the Government of India to conduct mass upskilling in remote, rural and urban regions across India. Learn more about our initiatives here . Our Vision Supercharge India’s employability by upskilling the unemployed Relevance We aspire to reduce unemployment by creating a knowledge ecosystem where students and young professionals can upskill themselves to stay relevant in this ever-changing job market. Gap Our education system is mainly based on theoretical knowledge rather than on-field experience. This has led to over 70% of graduates lacking employable skills. We believe this employability gap is caused by a lack of internship experience and job-specific training. Solution Our programmes fill this gap by providing students with opportunities to work at top-tier companies and combine this with courses following a theoretical yet relevant curriculum that supercharge our students’ employability.

< Back Nuclear Power: Boon or Bane by Janki Padia Several academicians believe that a mixed assortment of alternative energies will be needed if we are to replace fossil fuels and 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels and to secure net-zero emissions by 2050. However, nuclear power is not an easy pill to swallow, not even in the progressive or climate circles. INTRODUCTION Nuclear power has been one of the most contentious issues in the environmental community. Today, nuclear power is at the forefront of energy policies for many countries once again as climate change only worsens. Several academicians believe that a mixed assortment of alternative energies will be needed if we are to replace fossil fuels and 1.5 degrees Celsius (2.7 degrees Fahrenheit) above preindustrial levels and to secure net-zero emissions by 2050 . However, nuclear power is not an easy pill to swallow, not even in the progressive or climate circles because firstly, the nuclear industry is a large orthodox industry with a stern hierarchy. They have been hawking massive plants worth billions of dollars whilst producing hazardous nuclear waste with a history of corruption, special pleading, etc – not an appealing investment pitch for any progressive. Secondly, it is the men, no, mansplaining men who have flocked the industry, the internet calls them “Nuclear bros.” Limited success is only met by nuclear bros to outdo the environmentalist; however, things are changing on the gender front as more and more women are coming into the field out of environmental concerns, one such all-female nuclear advocacy group is Good Energy Collective. Not only that but there has been a revival of debate, on whether or not that nuclear power is green energy as European Union declared nuclear power and natural gas to be green energy in February 2022. This inevitably also leads to the age-old question, is nuclear power a boon or bane? Before we come to any conclusions, we must explore the topic widely and thoroughly. ORIGIN and HISTORY Nuclear power came to the worldwide forefront after the nuclear bombing of Hiroshima and Nagasaki in World War II. The American government had launched the Manhattan Project, successfully creating the atomic bomb technology working on the principle of nuclear fission. In the post-war period, it was only military technology that was sorted by countries the world over, which led to information censorship and stern control over technology & materials. It was only after President Eisenhower’s 1953 speech, Atoms for Peace that the idea of nuclear energy for civilian usage began to diffuse worldwide. The famed idea whilst acting as the pioneer of several nuclear programmes in developing countries also created anxiety as misuse of such a technology could lead to devastating effects as it spread. However, the threat of nuclear proliferation in the post-war era was restrained, some would even say confined to only 9 countries, which had created nuclear weapons out of 30 countries, which had nuclear knowledge and working reactors. Nuclear energy gained the most attention as the alternative source of clean and secure means of energy as the climate crisis came to the forefront, which did not prove to aid the nuclear industry as it experienced stagnation since the 1980s, though recently there has been an uptake in the 21st century. International Atomic Energy Agency (IAEA) during the Cold War predicted the possibility of a nuclear renaissance hinged upon the non-OECD countries, which were likely to experience expansion in nuclear energy whilst the OECD (Organization for Economic Cooperation and Development) countries between 2003-2030 would see no nuclear energy growth. These predictions hardly materialized as, at the end of 1983, six developing countries (Yugoslavia, the Republic of Korea, Argentina, Pakistan, Brazil, and India), all members of IAEA had in total of thirteen nuclear power plants with a combined capacity of around 5100 MWe, accounting for less than 2% of developing countries' total electricity production. The Chernobyl disaster of 1968 as well as the Three Mile Island accident of 1979 only added to the stagnation but some believed that end of the nuclear era had arrived after the Fukushima nuclear accident in 2011. It had encouraged a speedy shut down of nuclear power plants in Taiwan and Western Europe, Germany and Belgium, and Italy (wherein the votes were crushingly against renewal and reconstruction of the nuclear sector). However, the truth of the matter remained that the Fukushima disaster did not alter paths for the nuclear energy field because few of these governments had already planned to phase out nuclear energy before the disaster, the catastrophic event only nudged them faster in the same direction. Parallelly, other countries that were planning expansion before the disaster, stayed committed to their decision according to reports provided by OECD and NEA (Nuclear Energy Agency). Another observation of the same event after the Fukushima disaster could be made, wherein the perception of nuclear power was likely to be changed and nuclear safety became the chief issue, costs would increase on security whilst more severe precautious were taken by the operators and engineers. Profits would decrease. Public most of all became the biggest skeptics of nuclear energy and it would be the most cumbersome task to garner public support for the same. In the meantime, through the economic lenses economic, even the Western countries could not afford to pour billions into nuclear power and technology due to level high public debt and so, stagnation and a slow downward spiral continued worldwide for years to come as more nuclear power plants started closing thereafter. Nuclear energy became one of the alternative clean energy once again as the climate crisis came to the forefront through COP26. Nuclear energy was predicted to be a major player in the initiative launched by the UN, the 24/7 Carbon-free Energy Compact. It led to various government commitments to expand nuclear power both at home and abroad. Yet, the nuclear industry did not bounce back and more nuclear power plants shut down in turn the reduced number of new nuclear plants did not produce the same amount of total output as the previous plant did. Despite some reactors curtailing generation to account for reduced demand or to offer load-following services, the global capacity factor in 2020 was still high at 80.3%, down from 83.1% in 2019, but maintaining the high performance seen over the last 20 years. Safety issues, environmental issues, and nuclear waste issues are core matters behind the shutdowns. In 2021, there were 10 shutdowns worldwide, of which three were in Germany and three in the UK. However, the clear boost to the nuclear industry was provided by the Russia – Ukraine war which has disrupted the energy market entirely. Whilst Germany has decided to fire back their coal power plants and boost the production of renewables, Belgium has decided to keep two of its nuclear plants open which were previously to be shuttered down. France proclaimed to build fourteen new reactors and even Japan after the Fukushima disaster has decided to kickstart their nuclear production due to the energy threat provided by the Russia-Ukraine war as well as the threat of blackout in Tokyo in the middle of the highest heat wave ever recorded in Japan after a strong earthquake this spring. Out of 60 reactors in Japan, 24 have been decommissioned and five are currently operating. Another five have been approved to restart but are suspended for routine checkups, and three are under construction. The rest have not been approved to restart. Meanwhile, in the US, the Biden administration is spending billions to subsidize existing plants, while states like New York and even California are looking to keep open plants that had been scheduled to close. With the energy threat presented by the Russia-Ukraine war and the worsening climate crisis, there is a renewed hope for nuclear power. Currently, there are six types of nuclear reactors used in nuclear power plants and they are: Fast Neutron Reactor (FNR), Gas Cooled Reactor (GCR), Boiling Water Reactors (BWR), Light Water Graphite Reactor (LWGR), Pressurized Water Reactors (PHWR), Light Water Reactor (PWR). Currently, three key strategies with intention of reducing costs and increasing sustainability and safety have been adopted as new theoretical and technological innovations made in the nuclear power field: Create new types of large LWRs - which are to be cheaper to build and operate whilst being safer. Areva with EPR designs and Westinghouse with AP1000 have taken these paths but have not been successful in their endeavors. Whilst simultaneously, several countries are trying to develop new types of “accident tolerant” fuels for LWRs, which would lessen the meltdown risk. However, data remains sparse, and early results have not been promising (Khatib-Rahbar et al. 2020) Small modular reactors (SMRs) –are small LWRs with capacities of 300Mwe or below. Small modular LWRs could be somewhat safer than large LWRs by virtue of their size and lower rate of heat production, but they would produce more expensive electricity without employing measures to significantly cut capital and operating costs per megawatt (Lyman 2013)viii . Reduced construction and financing costs act as an attractive feature to SMRs which could be manufactured in factories and installed in either group or singularly to meet the electricity demand. SMRs are still developing technology, such as that of the 77 MWe NuScale reactor. SMR designs though sporting new features are fundamentally modified LWRs. Non-Light-Water Reactor (NLWRs) – are reactors that are cooled by molten salts. liquid sodium and helium gas instead of water. This technology is pursued by start ups as well as established companies and could be built different range capacities of contemporary LWRs to micro-reactors of less than 10 MWe. To qualify as SMRs, the NLWRs must produce 300MWe or less. Various NLWR designers have put forward several designs, each claiming their designs to not only cut cost but also increase safety, decrease nuclear waste, reduce the risk of nuclear proliferation as well as efficient and resourceful use of uranium; such as the unsuccessful NLWR technology pursued by Transatomic. Apart from previously mentioned attractive aspects of the technology, they even promise features such as underground placement, modular structure as well as passive safety, some designs propose to have the capacity to deliver high-temperature process heat for manufacturing electricity. Whilst attractive, only a few NLWR developers have claimed that their designs not only would be demonstrated and licensed but also could be distributed and employed on a large scale in a decade or two. Thorium reactor technology is also being pursued by India, the Western start-ups, and China pledged $3.3bn in 2017. The carbon-free thorium-based reactor is supposed to be less dangerous with a lower risk of meltdowns and hard to weaponize. However, the journey of the reactor is uncertain because of the rise of quick and cheap renewables in comparison to the slow and costly road of the thorium reactor, whilst the unknown risk of environmental and health hazards loom overhead. CURRENT SCENARIO, MARKET SHARE, AND PIPELINE PROJECTS The Russia-Ukraine war has not only negatively impacted the climate crisis as well as energy markets. Whilst countries and companies push harder to counter these problems, the nuclear power firms are still clambering to live. Électricité de France, Europe's largest nuclear power operator is on the road to being nationalized by the French government. The debt-riddled EDF was suspended on 13th July with shares suspended at the price of 10.2250 euros on 12th July. Concrete plans as to how the nuclear power firm will be nationalized will be unveiled before markets open on the 19th of July, commented the fiancé ministry. The French government has taken these steps as, EDF has been grappling with extraordinary outages at its nuclear fleet, delays and cost overruns in building new reactors, and power tariff caps imposed by the government to shield French consumers from soaring electricity prices. The French government already has 86 percent of the stake in the company and it's likely to buy out the rest 16 percent by paying up to 10 billion euros according to Reuters sources by making a voluntary offer on the market than to push a nationalization bill through Parliament. The EDF purchase would also include convertible bonds and premiums offered to minority stakeholders. That would translate into a buyout price of close to 13 euros per share, a 30% premium to current market prices but still a big loss for long-term shareholders, as the group was listed in 2005 at a price of 33 euros per sharex . As Europe deals with the energy crisis, it makes the EDF nationalization important because it would allow the French government not only control over the nuclear plants around France but also, it can easily restructure the group to its whims and demands. The nuclear power firms in the United States of America have had rocky histories. The Westinghouse Electric Company, a nuclear designer company scrambled to finish its constructions whilst the FirstEnergy Solutions Corporation, a utility company competed against the cheap prices of renewables, both going bankrupt and only to emerge over the years. Even then FirstEnergy has been embroiled in several lawsuits, one wherein the company bribed several officials to gain application of Ohio House Bill 6, an energy policy with an overhaul value of approximately $1.3 billion, and secondly, another wherein the stockholders filed a suit against former executives for hurting the stock value. Westinghouse in contrast filed bankruptcy in 2017 and emerged out of it in August 2018, after it was sold to Brookfield Business Partners by Toshiba. Their ratings were lowered as Fitch Group, a credit rating firm commented, “ little demand for new nuclear power plants due to environmental risks, political/regulatory resistance, and lower priced natural gas .” However, those ratings have been improved as the same organization provides a positive outlook for the company as its derivation summary reads: WEC's ratings reflect its leading market position servicing the nuclear reactor market, strong technological capabilities, recurring demand-focused offering and prospects of improving profitability. These factors are weighed against its concentration in the nuclear energy market, which has faced secular challenges in core geographies and execution risks associated with its growth strategies. From a financial profile perspective, WEC's EBITDA margins are expected to exceed 20% and are relatively strong compared with 'B' category industrial issuers. Debt/EBITDA trending toward the low- to mid-4.0x range is consistent with the rating category. A deal has also been signed between Ukraine and Westinghouse to supply nuclear fuel to all the Ukraine nuclear power stations, whilst contracting them to build nine new nuclear units instead of five as well as an engineering center in the country. Westinghouse as July 15th stands at 24.81 CAD, which means 19.04 USD. Canadian Brookfield Asset Management, owns Westinghouse Electric Company through its subsidiary Brookfield Business Partners. The company bought Westinghouse at $4.6 billion in 2017 from Toshiba company, allowing Westinghouse to recover from status 11 or bankruptcy in 2018. Even though Westinghouse has been performing well, Litvak in Pittsburgh Post-Gazette reports that Brookfield Business is wanting to sell Westinghouse, Litvak’s piece, which quotes Cyrus Madon, Brookfield’s chief executive officer: “Look, we’ve made many times our investment in Westinghouse. We’ve already pulled out more than our invested capital just through regular dividends. And I would say our job is sort of done here. ” xiiIn 2021, whilst seeking out minority stakeholders, no sales were made. However, this year, they are wanting to sell the whole of the enterprise. The question remains as to why? The Russia-Ukraine war has already disrupted energy markets and nuclear energy has seen a surge in demand, is their wanting to sell Westinghouse out more than wanting to cash out at the right time? There are several newcomers in the nuclear industry such as Trasatomic Power founded in 2011, which shut down in 2018 after running out of funding and backtracking its bold molten salt reactor claims. They have open-sourced their research if anyone would further like to work on it. NuScale Power, a company designing SMRs is one of the most popular nuclear firms in the U.S currently. In 2020, 8 out of 36 public utilities backed out of the UAMPS deal to help build the plants, which would completion delay of three years and finish in 2030, with costs increasing to $6.1 billion from $4.2 billion. In May 2022, NuScale Power signed a merger with Spring Valley Acquisition Corporation and became the world’s first publicly traded company focused on the design and deployment of SMR technology and today said that development, together with the newly announced strategic shift, will "bolster and accelerate" commercialisation of its technology. The NuScale stock price as of 15th July stands at 10.45 USD. On 14th March, TerraPower was founded by Bill gates and privately owned. The firm is set to receive $.8.5 million in funding from the U.S. Department of Energy Advanced Research Project Agency – Energy (ARPA-E). The funding is part of the ARPA-E Optimizing Nuclear Waste and Advanced Reactor Disposal Systems (ONWARDS) program. Through the grant, TerraPower will research an experimental method for the recovery of uranium from used nuclear fuel with integrated safeguards that harness the volatility of chloride salts at high temperatures. On the Asian front, Toshiba was a techno giant as well as the crown jewel of the Japanese industry with Toshiba Energy Systems & Solutions Corporation (Toshiba ESS) as its nuclear leg. However, the company lost face with its investors after a series of scandals and the misfortune of investment in Westinghouse, an American nuclear power firm. Then no more than three years, Toshiba was ousted from the top rank on Tokyo Stock Exchange. Mired in serious debt, the company was forced to sell off a valuable memory chip business and issue new shares to help pay down its liabilitiesxv. Effissimo (Singapore group) with ten percent of the company stake became the biggest stakeholder of Toshiba, becoming part of the foreign investors, who owned seventy-two percent of the company stake, unusual for a Japanese firm of high caliber. Toshiba of 2022, initially opposing buyout, now plans to solicit proposals from potential investors in a drastic change in stance. The nuclear unit, which is deemed important to Japan’s national security, could be the biggest obstacle to any deal. Meanwhile, Toshiba ESS with its American counterpart Toshiba TAES has signed a deal for equipment delivery with Bechtel Power Corporation, an American construction, and engineering company for building Poland’s first nuclear power plant. Toshiba ESS as of 15th July stands at 5,330 JPY, which means 38.48 USD. Nuclear power is promoted based on negligible greenhouse gas emissions, some experts believe that it should play a more important part in existing the use of fossil fuels. However, the problem at the heart of nuclear power lies according to Patrick Fragman, chief executive of Westinghouse Electric, “is a mix: It’s capital intensive but that doesn’t explain everything. The other side of the coin is the uncertainty .” He believes, unreliable and erratic political support along with fluctuating power cost does not make a fetching pitch. However, things are looking up for nuclear power as of now. Pipeline Projects: There is a surge in demand for nuclear power as nuclear power capacity increases worldwide. Presently, 440 nuclear reactors are running in 32 countries + Taiwan, providing 10 percent of world electricity (2553 TWh) in 2020. Fifty-five new reactors are under construction in 19 countries, the majority of these new plants are stationed in the United Arab Emirates, India, China, and Russia. Whilst new reactors are underway, some of the countries to be more cost-effective have upgraded their existing plants, hence, increasing their nuclear capacity. In the USA, the Nuclear Regulatory Commission has approved about 165 uprates totalling over 7500 MWe since 1977, a few of them 'extended uprates' of up to 20%. In Switzerland, all operating reactors have had uprates, increasing capacity by 13.4%. Spain has had a programme to add 810 MWe (11%) to its nuclear capacity through upgrading its nine reactors by up to 13%. Most of the increase is already in place. For instance, the Almarez nuclear plant was boosted by 7.4% at a cost of $50 million. Finland boosted the capacity of the original Olkiluoto plant by 29% to 1700 MWe. This plant started with two 660 MWe Swedish BWRs commissioned in 1978 and 1980. The Loviisa plant, with two VVER-440 reactors, has been uprated by 90 MWe (18%). Sweden's utilities have uprated three plants. The Ringhals plant was uprated by about 305 MWe over 2006-14. Oskarshamn 3 was uprated by 21% to 1450 MWe at a cost of €313 million. Forsmark 2 had a 120 MWe uprate (12%) to 2013. Apart from that, another method to be more cost-effective to increase the lifetime of a nuclear plant. The usual lifetime of a nominal nuclear plant lasts 25 to 40 years however, engineering examinations believe it several reactors can function for a long time about 40- 60 years. Hence, license renewals were accorded to 85 reactors by NRC. These licenses were only granted to reactors that had already served 30 years of their lifetime, warranting the renewal of worn-off equipment and outdated control systems. In France, there are rolling ten-year reviews of reactors. In 2009 the Nuclear Safety Authority (ASN) approved EDF's safety case for 40-year operation of its 900 MWe units, based on generic assessment of the 34 reactors. There are plans to take reactor lifetimes out to 60 years, involving substantial expenditure. The Russian government is extending the operating lifetimes of most of the country's reactors from their original 30 years, for 15 years, or for 30 years in the case of the newer VVER-1000 units, with significant upgrades. While some pieces of legislation have allowed nuclear power plants a longer life, some have allowed premature closure of nuclear power plants, in Europe, and Japan, especially in the USA, wherein reactor numbers have reduced to 93 from 110. COMPARING WITH OTHER ALTERNATIVE RENEWABLES Nuclear power is but one of the renewable power options for lower greenhouse emissions, other available sources of renewable energy would be: Solar – Photovoltaics (PV) and Solar Thermal The PV market is ninety percent dominated by Crystalline silicon solar cells. The top commercial PV solar cell tech is grounded in screen printing of the metallic contacts, attaining 14% to 20% efficiency. At the top price, the efficiency of 22% to 24% can be gained through the heterostructure with intrinsic thin layer silicon solar cells and interdigitated back contact. Theoretically, the maximum efficiency of a laboratory cell is 29%, however, in practical working, the efficiency ranges from 25% to 26%. Solar panels usually do not need much maintenance, however, if you see a deep in production of solar power, perhaps, it is time to clean the panels. It is recommended they are cleaned at least 2 to 4 times a year. If the solar panels are titled, the rainwater will clean away the dirt in monsoon, whilst in dry seasons a quick water down or wind blower blow would do. Usually, warranties do not cover the cleaning of solar panels but only replacement if they are damaged. Typically PV has a 25-year warranty and they can last up to 50 years if they are placed in dry locations. The prices of Solar PV are higher than the pre-pandemic level in 2022 and they shall remain so in 2023 as well due to elevate commodity and freight prices according to IEA’s report, Renewable Energy Market Update: Outlook for 2022 and 2023. The report adds, However, their competitiveness actually improves, due to much sharper increases in natural gas and coal pricesxx . India is one of the leading players in solar markets and the government in 2021 under AtmaNirbhar Bharat –Production Linked Incentive scheme (PLI), schemes to create manufacturing global champions for an AtmaNirbhar Bharat have been announced for 13 sectors including manufacturing of ‘High Efficiency Solar PV Modules’. The government has committed nearly Rs. 1.97 lakh crores, over 5 years starting FY 2021-22 including Rs. 4500 crore for ‘High Efficiency Solar PV Modules’ which will be will be implemented by Ministry of New & Renewable Energy (MNRE). This commitment would also cover research and development costs for solar power as well. Solar thermal Good building design, which allows the use of natural solar heat and light, together with good insulation, minimises the requirement for space heating. Solar water heaters are directly competitive with electricity or gas in many parts of the world.xxii Sunlight is concentrated onto the receiver by the arena of sun-tracking mirrors, the collected or resulting is heat then used to create which powers the turbine to produce and yield electricity . The commercially established methods of concentrating sunlight are line focus concentrators (troughs, both reflective and refractive) and central receivers (heliostats and power towers). The concentrator methods can be implemented on CPV systems. There is the possibility that it can create a round-the-clock power flow manufacture by storing heat at high temperatures in molten salt and creating thermochemical through concentrated sunlight. An identical amount of temperature as fossil and nuclear fuels can be realized by thermochemical or using mirrors. To keep them efficiently working, one must note that these concentrators must be placed in dry locations with low levels of diffuse radiation. Whilst solar thermal electricity is part of the analogous market as PV, this tech to acquire competitive costs must be used on a big scale which acts as a cost barrier as well as a financial risk factor. As of now, PV tech evolution as well deployment is a hundred times quicker than solar thermal and the future of solar thermal with thermal storage is uncertain whilst it competes with PV tech which comes along with load management and storage. The solar thermal plant must be serviced once a year for maintenance. As of 2022, USA is funding $25 million for innovative projects as part of research and development for solar thermal energy. Hydroelectric energy Sixteen percent of the world’s energy is created by hydroelectricity, one of the most advanced technologies. Generally, hydro involves construction of a dam on a river impounding a lake; construction of pipes or tunnels; and installation of an electrical turbine and power lines. Some hydro systems are ‘run-of-river’, which means that only small offtake weirs are needed. Hydro cites are most developed in already developed countries whilst developing countries may have opportunities but they are often hampered by stern and fierce socio-environmental moments on the accounts of widespread flooding of farmlands, cities, and delicate river valleys. The maintenance of hydroelectric power plant is divided in 3 check-ups: Hydropower system routine and non-routine service contracts, Hydropower system review and operational optimisation, Hydropower system upgrades and improvements xxv. As of 2022, USA has pledged no less than $47 million on hydropower and Indian hydro power giant NHPC has also been hiked investment to Rs 7,361.05 crore for 2022-23, from the revised estimate (RE) of Rs 6,772.21 crore for the ongoing fiscal. The budget estimate stood at Rs 8,057.44 crore . Geothermal and tidal Geothermal and tidal energy fall are regional energy resources and hence, cannot participate as a global resource. Geothermal energy is gained by the heat present beneath the earth. There are several ways to do it, steam can be harvested for direct use or to produce electricity. Another way is derived heat is from the hot rocks available on the surface of volcanic regions such as that Indonesia, Iceland, etc. Lastly, hot dry rock technology can be used in specifically correct geological regions, wherein masses of slightly radioactive rock buried kilometres below the surface become hot, allowing harvesting of heat at a temperature of around 300 degrees Celsius. Cold water is injected under pressure to fracture the rock, and allow steam to be extracted. This technology is not heavily used. Geothermal is low maintenance due to the fact that geothermal systems only have few movable parts which are sheltered inside a building, the life span of geothermal heat pump systems is relatively high . Heat pump pipes even have warranties of between 25 and 50 years, while the pump can usually last for at least 20 years . As of 2022, it is forecasted that the geothermal market would worth $7.1bn by 2030. Standard hydro tech is used to harvest energy from tidal flows. In a typical system, a weir is constructed across an estuary, and water flows through turbines as the tides rise and fall. It is uncommon to come across a site which not only affords large tidal ranges as well as a modest environmental impact. Inspection and maintenance are costly. As of 2022, USA has pledged $25m on tidal or wave energy research and development. Bio and ocean energy Bioenergy is biomass energy, wherein sunlight is turned into chemical energy. It cannot compete against PV and solar thermal energy. Bioenergy conversion efficiency is generally much less than 1 percent, while solar thermal and PV is 15–50 percent efficientxxx. Not only that but producing biomass needs vast lands, fertilizers, water, and pesticides. Biomass is an essential commercial energy contributor to small developing economies but it would play no large part in advanced economies because of its intrinsic production restrictions. Developing countries extensively use biomass energy for cooking or heating, however, there is a ready swap of biomass in exchange for electricity or gas when family income increases. The great flexibility of PV systems in terms of scale of deployment is likely to make a large impact in this respectxxxi . Biomass boilers are low maintenance and cleaned daily, should be kept ash free. Ocean energy comprises energy from waves, ocean currents, temperature gradients within the deep ocean, and gradients of salt concentrationxxxii. It is only with more advanced technology than the present time that wave energy can act as a substantial source of energy, however, even then exposure to a high level of seas as well as specific seafloor conditions are to be needed. Being more inherently limited due to its production needs, it can only become a minor energy source at a universal scale. Ocean thermal energy conversion application typically includes maintenance of machinery and removal of biological growth on submerged sections. The life cycle of a platform for this type of facility is straightforward and has well-established procedures. The ocean thermal energy conversion working fluid pumping systems are commercially available and have a relatively low cost, however, they require significant maintenance. Cable operation and maintenance includes periodic marine growth removal, full cable inspection, and annual maintenance of substations. Other maintenance costs include replacement parts, component design duty and known service intervals, time to complete service, cost of personnel, and material standby. Wind energy If put placed in a suitable place, Modern MW-scale wind generators are part of the cheapest electricity generation tech on market. A modern wind generator comprises a tower, a rotating nacelle atop the tower housing generator and control electronics, and three blades facing into the wind . Wind farm constitutes of hundreds of wind generators equally spaced apart at 5-10 rotor diameters. Usually, farming continues around the wind generators that are placed in the farmlands. Shallow offshore wind farms are expected to grow in large numbers in the future, because not only does it provides increased space but also wind speeds are usually higher over water. Wind and PV are often a good combination in that they counter-produce; it is often windy when not sunny, and vice versa . For the next many decades in numerous countries, it’s possible for PV and wind to highest deployment rates for electricity production, however, they are likely to meet with mechanical or technical and economic barriers. Commercial wind generators have power ratings of 1–8 MW. Vestas V164 as of now is the largest existing wind turbine with a capacity of 8MW with 220 meters maximum blad tip height and 164 rotor diameters. Tall towers in windy sites are preferred because higher average wind speed means a higher capacity factor, which in turn means lower energy cost. Offshore wind farms have a higher capacity due to speedy winds blowing over the water, hence, new bigger, and taller machines are replacing the initially installed small and now old machines. Wind electricity is now fully competitive with fossil and nuclear electricity in many places throughout the world (IRENA 2015). There are four types of maintenance for the wind farms and they are: Corrective Maintenance, Preventive Maintenance, Condition-Based Maintenance, Predictive Maintenance. As of 2022, USA has pledge $114m for wind energy. COMPARING WITH CONVENTIONAL FUEL Unlike conventional fuel (fossil fuels), nuclear power is harvest energy from an atom, either through nuclear fusion or fission. The electricity is produced, when the fuel has its atom split into one or more nuclei, releasing heat which is then used to boil a cooling agent, usually water. Steam or pressurized water then produced is used to spin turbines to create electricity. As of now, only nuclear fission reactors are working commercially to produce electricity, wherein they uranium as their chief fuel. If not for conventional fuels, petroleum, coal, and natural gas, the industrialization of modern economies would not have been possible. It is only in the recent past that energy alternatives have been embraced by governments worldwide and as a result, renewables and nuclear energy has boomed. Nuclear power commercially came into practice in the 1950s, and since then, it has been a source of contention for policymakers, citizens, scientists, etc. The question was asked then and it is asked even today, whether nuclear power is a safe sustainable source of energy? As of 2022, the EU has declared nuclear and natural gas to be “green energy,” however, this move has divided the EU into two camps pro-nuclear and anti nuclear with Austria and Luxembourg threatening legal action against the decision. However, the paradox of nuclear energy is not felt by the EU alone but the entire world and hence, it has become increasingly important to be informed about the advantages and disadvantages of nuclear energy before any decisions are taken by policymakers, politicians, and most importantly by citizens. Advantages: Carbon Free electricity – Nuclear energy does not produce green gases such as carbon dioxide, one of the major drivers of climate change. However, it does not mean that there is no pollution in process of gaining nuclear fuel (uranium) through mining, refining, etc. Not only that but it also creates the problem of nuclear waste. Small Land Footprint - Nuclear power plants need more space than other renewable options such as that wind and solar. According to the Department of Energy, a typical nuclear facility producing 1,000 megawatts (MW) of electricity takes up about one square mile of space , whilst solar PV takes up 75x and wind farms take 370x more space. High Power Output – Nuclear power plants have a higher capacity for energy production compared to renewables. The pro-nuclear camp promotes nuclear energy as a firm energy source providing “baseload electricity,” which means minimum amount of electric power needed to be supplied to the electrical grid at any given time . One must also note that the demand for power in the grid fluctuates. There is a murmur of nuclear power potentially becoming a baseload electricity supplier instead of coal power plants, especially in the USA as nuclear energy generated one of fifth the energy consumed in 2020. However, the question remains is it the only reliable source of baseload electricity? Renewables generated 20% percent of the USA's electricity and will produce 40% by 2050 according to EIA but it still cannot entirely decarbonize the grid by 2035 to stall climate change. Yet, hope for renewable supplying the baseload is on the horizon as the market for utility-scale battery storage is exploding; it increased by 214 percent in 2020, and the EIA predicts that battery capacity will surge from its current 1,600 megawatts to 10,700 by 2023. Whilst nuclear has a reduced carbon footprint than renewables, some consider the by products of nuclear power too high a price to pay. We must also note that whilst the carbon footprint of nuclear energy is lower than any renewables and if we increase the nuclear power plant numbers by threefold, it would result in a modest 6% carbon reduction. Meanwhile, the boost and consumption of renewables such as solar will surpass the mere 6%. Herein, the future is more important than the present because we need a quick rate of carbon reduction which can only be solved by renewables as they are easily available, cheap, and flexible. With increased consumption of renewables, they are likely to more suited to carbon mitigation than nuclear power plants, which are slow, risky, and expensive endeavors. d. Reliable Energy Source – the availability and perpetual generation of energy certainly make nuclear an attractive option to be a reliable supplier of baseload electricity to the grid. It also provides maximum output energy (93%), higher than any other fuel. Disadvantages: Uranium is a non-renewable resource – the nuclear fission reactors chiefly use uranium as their fuel, however, uranium core is a limited resource. Based on the known mining reserves of uranium there is about 200 years of uranium, if we consume it at the current rate. Even so, the number of reactors being built is increasing, hence the speedy depletion of uranium. Not only but uranium mining and processing contribute to climate change. The pro-nuclear energy camp in their idealistic belief always points out the factor of undiscovered uranium, which is a gamble too risky. They also speak of the 5000-year worth of uranium buried beneath the ocean, a mere concentration of 3.3 parts per billion. The energy it takes to lift a bucket of seawater by 50 metres is equal to the energy you'd get from its uranium. The energy return on investment simply doesn't add up. Another suggestion is a technological upgrade lifetime of fuel, a promise of breeder style Generation, allowing the fuel to last sixty years. Such pieces of machinery would be impressive, and so would be the advanced materials in them but the same aspect can create a problem because we do not have fixes to all the issues an advanced material. Higher upfront costs – Building a nuclear power plant is an expensive endeavor but operating one is a low cost. The nuclear power plant needs several safety measures, not only for the reactor but the building, and people themselves, hence, the costs increase. On top of that is the cost of acquiring the fuel, which involves mining, processing, transporting, and then burning it, not to mention then deal with nuclear waste. When the fuel cycle ends, the nuclear power plants are decommissioned at a costly prove. For example, UK nuclear power stations’ decommissioning cost soars to £23.5bn in 2022. Nuclear Waste – Nuclear power plants globally produce about 10,000 tonnes of spent fuel waste per annum. When a spent fuel rod is removed from a reactor, the radiation level is so high that a one-minute dose at a metre's distance is lethal to humans . The used rods are hot and they need to be cooled, hence, they are placed into the water pool for 5-10 years and when the space in the pool runs out, they are transferred into dry casks, a thousand-tonne container. An expensive robot arm is used to transfer the rod from the fuel or water pool into a dry cask, which costs $ 1 million each, and another $50, 000 is spent on filling the cask with helium and welding it shut. The dry casks can rest on the ground for the next 50 years to cool down before they are placed into a deep expensive underground depositary but no country has ever been able to succeed to create one, even USA. They had decided to store all their nuclear waste in the desert region of Nevada with all the safety measures but the state voted against it and the depositary never came to be. Dry casks are too overly reliant because there is always a possibility of leak or corrosion and replacement casks are simply added expense. The underground depository is also preferred because some of the isotopes remaining in the casks have a lifetime of ten thousand years and so, they must be stored safely but the transfer of rods from dry casks into a special depository canister is an extremely pricey affair of $50 billion (which includes the price of special canister and repackaging equipment). After the special canisters are stored underground, bentonite clay is used to delay the penetration of water and moisture. Even then, their safety is not guaranteed because canisters over time crack and this process can be accelerated by the isotopes presented within the canister and externally by the natural bacteria. Once there is a leak, radioactive iodine-129 isotopes from the fuel can diffuse through rock. Radioactive actinides from the spent fuel are released into the biosphere through the water. If the depository for any reason is flooded and the canisters are broken, several chemical reactions will transpire, counting the volatile blends of oxygen and hydrogen. There are murmurs of recycling the waste and using reactors, however, that too will be a costly affair, with other millions spent. Malfunctions can be disastrous – Nuclear meltdowns occur when the heat transferred to cooling systems is lower than the heat produced by the reactor, which causes a meltdown. Hot radioactive vapors can pour out of the reactor and meltdown or explode the entire power plant whilst spewing injurious radioactive material into the vicinity. The worst nuclear disasters ever to be recorded are Chernobyl, Three Mile Island, and Fukushima. IN-DEPTH ANALYSIS OF ASSOCIATED RISKS The nuclear accident at Fukushima and Chernobyl as well as Three Mile Accident remain fresh in the public memory. Before we invest in nuclear energy, we must thoroughly know the risks. Some of them are: Safety Questions The public perception of nuclear power in terms of safety has always been a major obstacle, one of the chief reasons why so many nuclear power plants are shutting down and several governments have decided on the phase-out policy for nuclear power plants. However, the truth is that nuclear power is much safer than fossil fuels. Indeed, coal and oil act as ‘ invisible killers ’ and are responsible for 1 in 5 deaths worldwide . In 2018 alone, fossil fuels killed 8.7 million people globally. The public apprehension is caused by only three nuclear accidents: the 1986 Chernobyl disaster, the 1979 Three Mile Island Accident, and the 2011 Fukushima disaster, and it was only the Chernobyl disaster that caused any direct deaths. Technological evolution in the nuclear field has made new reactors much safer, especially in the case of reactors with passive safety features. These features automatically deploy safety protocols if there is any danger, not needing any personnel to do so. Today’s new-generation reactors are already ten times safer than the previous generation of reactors, as addressed in the referenced Center on Global Energy Policy study on advanced reactor design. Even beyond reactor design itself, nuclear fuel is increasingly safe, with material improvements that reduce the risk and potential severity of accidents. Not only but nuclear safety has almost become a culture that is regulated by the IAEA, which has published 128 documents regarding nuclear safety and cratering to safety concerns of various types of power plants. These safety standards and protocols are revised with time and evolving technology. They even work closely with the government, other organizations, and programmes that need technical aid in the nuclear field. The Convention on Nuclear Safety (1994) is considered to be the principal international nuclear safety agreement, ratified by eighty countries. The World Association of Nuclear Operators and the Institute of Nuclear Power Operations are organizations established by nuclear companies to share information and techniques in the nuclear industry. All the promises still raise eyebrows around the world as Iran and North Korea are not parties to the Convention of Nuclear Safety, whilst still running nuclear programmes. The Iranian Bushehr Nuclear Power Plant is sitting in a high seismic zone, which potentially puts not only the country itself but other West Asian countries at risk. It was in 2015 that the Joint Comprehensive Plan of Action (JCPOA) or Iran deal was reached between P5+EU and Iran, establishing that the Iranian nuclear programme is solely peaceful. It also includes Iran working closely with IAEA and EU on front of safety standards and concerns. IAEA as an international regulator of nuclear programmes has also helped grow and sustain independent regulators in domestic industries to implement safety standards. Waste Nuclear waste remains the unsolved obstacle to nuclear power, especially when it is coupled with the safety issue. However, the issue is not only technical but more political in nature if given second a glance. Proliferation is one highest risks when it comes to reprocessing nuclear waste, not only that but the question of storage comes in and it is then that the issue becomes more difficult. The spent nuclear fuel has long lived hazardous substances such as plutonium, which increase the risk of nuclear hazards, even if they are to be stored in the nuclear repository, which is hard to come by in the first place. It is here that the issue turns political because no territory wants to become a nuclear waste dumping ground, it has been seen in the case of Yucca Mountain, USA . After billions were spent to develop and prepare a site to house spent nuclear fuel, the facility was scrapped in 2009 due to policy – and, according to some, political – concerns with the plan in Nevada . Viewing from the lenses of technology, there are only two viable options when it comes to nuclear waste: new advanced reactors are built to burn the entire element in the reactor, leaving no waste, or build reprocessing technology with deployment for spent fuel to harness useful substances such plutonium or uranium. Today, there is a surge in the number of nuclear power plants, bringing along the issue of proliferation and the high potential of nuclear disaster. Technical solutions then become vital to the nuclear industry, otherwise, nuclear waste management will forever remain politically charged even when it is a much safer source of energy than fossil fuels. One of the political solutions was the deal reached between Russia and Iran, wherein Iran sent spent fuel to Russia for reprocessing. However, such agreements are always changing with times and leaders in power, hence, a much more domestic and long-termed sustainable tactic is welcomed. Nuclear proliferation can also be considered a risk to energy technology because for any new reactor or reprocessing design to be viable politically, it must demonstrate that the risk of contributing to future proliferation is less than whatever system it is replacing. However, the non-proliferation remains strong, when it comes to new reactors. Nuclear Proliferation The nuclear proliferation of not just a technological issue as already established but also a deeply political one. Nuclear proliferation especially becomes a risk in terms of nuclear weapons programme such as that of North Korea as well as Iran (even after the JCPOA). The diffusion of nuclear technology also brings to the forefront, the issue of the advent of 3D printing (which can create nuclear pertinent gears without worrying about a transparent supply chain) and internet accessibility of explicit technical data. Initially, regional security in terms of the nuclear programme was not an issue because, before the 2000s, not all countries could afford nuclear weapons to compete with their nuclear-armed neighbor as they did not have adequate tech or the resources. However, there are exceptions to be made such as China in the 1960s, India and Pakistan in the 1970s and 1980s, and Iran and North Korea in the 1980s and 1990s, who were prepared to take a needed gamble to make a much-required investment for their strategic motivation. However, this momentum lost support with the Non Proliferation Treaty, which today has 191 signatories and acts as the cornerstone of nuclear non-proliferation, seeking nuclear disarmament. However, heightened regional tensions have recently had several countries reconsider the status of their non-nuclear weapons. Ukraine war has revived the nuclear question in South Korea as well as Japan. South Korea already troubled with North Korea’s increasing arsenal is worried that nuclear-armed North Korea would get away with a lot in a war scenario as nuclear-armed Russia has with unarmed Ukraine due to the fear of nuclear war. In one recent survey of South Koreans, 71 percent of the respondents supported arming the country with nuclear weapons, according to a research paper published in February by the Carnegie Endowment and the Chicago Council on Global Affairs. Even the former Japanese PM had begun saying loudly and publicly that Japan should, indeed, think seriously and urgently about nuclear weapons , when Ukraine was invaded. Looking through regional security lenses, he makes an essential of Japan surrounded by nuclear-armed North Korea and China (which are becoming increasingly aggressive). Mr. Abe’s nuclear policy was not to build Japanese nuclear weapons but to borrow US nuclear weapons on Japanese soil as do many countries such as the Netherlands, Belgium, Italy, etc. Non-proliferation also acts as foreign policy, especially when states engage in nuclear trade. Nonproliferation standards were adopted as conditions for nuclear trade by the USA and even Japan as it engaged with India for nuclear cooperation in 2016. However, this is not a standard policy for all states as Russia exported its reactors to Iran and China too built reactors in Pakistan. Coming to the technical part of the proliferation, in the past, national industry and sophisticated procurement networks were necessary to facilitate proliferation, but future proliferators might need far less infrastructure and support, reducing their detection risk and identification profilesliii. There is a real risk of unobserved proliferation due to the extensive availability of mechanical or technical data on complex nuclear processes and state capacity to create their own gears to evade limitations set by the international export. This risk pushes countries to secrecy as well as sets limitations on nuclear commerce. IAEA and NSG are a few organizations striving to better nuclear safeguards, security, and export controls. Perhaps, the evolution of tech and reactor design in itself could lessen the proliferation risk. The potential and value of nuclear power for energy production, climate change management, and contributions to a reliable alternative to existing sources are real but, clearly, so are the challenges. ENVIRONMENTAL AND SUSTAINABILITY CONCERNS Environmental Concerns Radioactivity is the core of the environmental concerns when it comes to nuclear power as it not only affects the large vicinity of the area but also takes a long time to retreat if it ever does. Stern regulations implemented on the civil nuclear power plants, only small limited exposure of iodized radiation to be emitted into the atmosphere as part of natural background radiation. Apart from that uranium mining, nuclear waste, and climate change are at the center of environmental concerns. Uranium mining (3 ways): Underground mining – wherein there is workers are exposed to extreme or high levels of colorless, odorless radioactive radon gas. The gas is forged through the natural breakdown of uranium into water, soil, and rocks. It only increases the risk of lung cancer among the uranium miners but also pneumoconiosis in case of cave-ins. Open pit mining – as the name suggests, it’s a pit that is created on the surface of the terrain by blasting 30 times more earth or there is the removal of rock, soil, and trees from the terrain with help of industrial equipment. The mining leave behind the waste rock, which is stored by the mine and is radioactive and toxic in nature. The exposure of the rock may also cause hazards by polluting air or water, not only that but the removal of the top surface from the terrain leaves the area suspectable to erosion as well as landslides. ISL mining – herein, a uranium dissolving liquid is pumped underground to uranium ore, only to channel the liquid uranium mineral to the surface. It is the most popular mining technique and has chief operations in Texas, Wyoming, and Nebraska. It releases a high amount of radon gas and creates wastewater and slurries for the recovery of uranium from the liquid which is pumped back to the surface. The gravest concern is the restoration of natural groundwater, which is leached away as the project commences. All the attempts of restoration have failed as it's virtually impossible to do so. Uranium mining dropped after the 1980s in the USA but its effects still linger. The case of environmental injustice is made by the thousands of abandoned uranium mines littered around in the southwest of the country, for example, several mines present in Navajo Nation by the Grand Canyon National Park. These mines act as a health threat to the Colorado River ecosystem as several communities in the vicinity are already suffering from environmental contamination. Noticeable symptoms are under-addressed cancer and disease clusters, and toxic spills. Nuclear Waste: More than quarter million metric tons of highly radioactive waste sits in storage near nuclear power plants and weapons production facilities worldwide, with over 90,00 metric tons in the US alone. It is not only a notorious safety risk but also an environmental risk. Nuclear waste can be categorized as: Low-level waste (LLW) –is all the items that are exposed and contaminated by neutron radiation. Starting from shipment containers and clothes, bags, etc of the NNP worker along with everything used in clean-up of the nuclear waste. Usually contains only one percent of the radioactivity in nuclear waste and is sent to land-based disposal. High-level waste (HLW) - is the waste found in the pools of nuclear power plants. After they are sufficiently cooled for a few years, they are stored in dry casks for further cooling and then transferred to special canisters to be placed into the underground repository. Intermediate level waste (ILW) –are long-living radioisotopes that are stored and then transferred to a geological repository. Defense-related waste in the USA is similar to ILW and they store it in New Mexico's deep geological repository of Waste Isolation Pilot Plant. Spent nuclear fuel –is used fuel from the reactors which are no longer functioning . “It is both deadly and long-lasting,” says Geoffrey Fettus, a senior attorney at NRDC and director of NRDC’s nuclear team.lvi “It remains dangerous to people’s health and the environment for millennia.” Even a U.S. federal court described the time frame as “seemingly beyond human comprehension. For example, iodine-129…has a half-life of 17 million years.lvii” Previously the spent nuclear fuel would only be considered waste but with the evolution of technology, the spent fuel can be reprocessed to option materials such as leftover uranium, plutonium, etc. Lowering the age of the spent fuel by a hundred or more years. However, reprocessing spent fuel remains a costly affair and any accident occurring through the process may cause health as well as an environmental hazard. Climate Change: Like any other plants, nuclear plants are susceptible and vulnerable to climate change. The fluctuation in temperature of air and water, increases in sea levels, wind speed and pattern, etc can affect the efficiency of nuclear reactors or plants. Not only can it cause operators to shut down or cut back generators but also increase environmental and safety risks along with the cost of nuclear power. An increase in water temperature can heat the cooling water which is needed to cool and ensure the safety of spent fuel, etc. the nuclear power plant. River water is used as cooling water in inland reactors, however, due to the rising temperature of waters along with heatwaves, several nuclear power plants have either temporarily shut down or cut back the generation. The cooling water is released back into rivers; however, nuclear power plants have fixed temperatures for the water which is to be released back into the river. With warm water entering the nuclear power, even warmer water is being released back into rivers as several power plants, such as Turkey Point and Millstone Plant have asked NRC to increase the temperature limit of water that is to be released into the environment. The released warmer waters are hazardous to the ecosystem. Flooding and hurricane have extensively damaged nuclear power plants in the past and they continue to do, they even pose a risk by cutting access to much-needed cooling water. Whilst the Fukushima disaster of 2011 is one example of flooding, the NRC has concluded that 55 of the 61 evaluated U.S. nuclear sites face flooding hazards beyond what they were designed to withstand (yet it has failed to require updates based on that information). Even the storage of nuclear waste in decommissioned plants is threatened by climate change through flooding, earthquake, etc causing a health and environmental disasters. Sustainability Concerns Nuclear power has been labeled as a “green source” of energy by the EU as of 2022. Compared to conventional fuels, nuclear power provides several advantages such as low life cycle GHG emissions, energy security during periods of price volatility, stable and predictable generation costs, previous internalization of most externalities, small and managed waste volumes, productive use of a resource with no competing uses, firm base load electricity supplies, and synergies with intermittent energy sources . Another label given to nuclear power is that of “weak sustainability” because it is not sustainable by itself but aided by manmade machines such as fuel cycles, advanced reactors, etc and also. While advantageous, the nuclear area has several areas to improve and those are: lowering the construction costs, achieving public acceptance, disposing of nuclear waste, the risk of nuclear weapons proliferation, nuclear fuel cycle, etc. Some fear the nuclear industry will fade away if there are no further breakthroughs and innovations in tech. Not only that but even the public and governments must be actively engaged in the field. As of 2022, USA in an effort to stave off more closures, the federal government began subsidizing older nuclear plants, opening up a $6 billion fund authorized in 2021's Infrastructure Investment and Jobs Act this year. That law also set aside an additional $2.477 billion for the research and development of advanced nuclear reactor technology. Sustainability as the Department of Energy (USA) puts it “extend natural resource utilization” and “reduce the burden of nuclear waste for future generationslxi.” We are looking for long-term energy solutions, long term nuclear sustainability is advised as well as needed. This can be achieved in two ways: Use natural uranium more efficiently than LWRs: It would be remarkable if we could produce the same amount of energy from reduced usage in advanced nuclear reactors, it would help conserve uranium. The radioactive resource is by no means renewable or infinite but it is not going out of supply anytime soon and hence, there is less motivation in the nuclear industry to craft such generators. The latest assessment of resources by the Nuclear Energy Agency and the International Atomic Energy Agency in 2020 found that identified recoverable uranium resources would be sufficient to fuel the global nuclear reactor fleet for more than 135 years at the 2019 rate of consumption (just under 400 gigawatts of electricity) (NEA 2020). Better recovery methods could make available up an additional 40 years’ worth of consumption. In the worst-case scenario, even if we do run out of surface uranium, there is a large amount of low-concentration uranium present in the ocean. However, this scenario then pushes for uranium efficient generators and increased prices of uranium. Uranium mining is another issue that must be dealt with because not only does it causes health hazards but environmental too. There is a need to explore more modern and effective uranium mining and processing techniques (many not entirely harmless) and they must be regulated with stern measures and supervision. Uranium efficient reactors would not only conserve the uranium resource but also aid reduces environmental and health hazards by dipping the necessity for mining. Even if it is possible, we must then deal with the environmental risks that the fuel cycles of uranium efficient reactors pose. Increasing uranium efficiency usually entails reprocessing spent fuel, which generates a number of different radioactive waste streams and emits radioactive gases into the atmosphere—many with wide-reaching health and environmental impacts themselves. To capitalize on the natural uranium utilization, NLWRs must be able to effectively use depleted uranium (remaining material generated through the enrichment process) as fuel. Depleted uranium has a U-235 content of 0.3 percent or belowlxiv. Current LWRs are fuelled by enriched uranium, which is only a minor portion extracted from natural uranium whilst the leftover uranium or depleted uranium is called “tails;” which is nothing but nuclear waste stored in the repository. As of 2020, the production of one year’s supply of enriched uranium for a typical LWR—20 metric tons—generates about 180 metric tons of depleted uraniumlxv . This leftover material is gathered as nuclear waste because there is not enough capital in the market to re enrich as fuel for LWRs. The DOE now holds more than 500,000 metric tons of uranium tails in the form of uranium hexafluoride gas, requiring hundreds of football fields’ worth of storage space as of 2020lxvi . Though “tails” is less radioactive, they would in long run needed to be deposited in a geologic repository. b. Generate less waste requiring long-term disposal or use of reprocessed or “recycled” material from the spent fuel. Long-lived isotopes make up the part of spent fuel produced by the LWRs and they must be isolated from the environment for thousands of years to avoid health or environmental hazard; the only way to do so is to store the waste in a geological repository. The issue with a deep geological repository is that no territory wants to become a dumping ground for nuclear waste and hence, no countries have been able to make progress in this direction except for Finland (whose reserves of nuclear waste are lower as it a small country). The spent fuel or radioactive waste is produced by all reactors and fuel cycles and they must be disposed in a safe geological repository. It is a cumbersome process to establish a geological repository as it is littered with several technical trials and political complications. However, some pro-nuclear advocates of reprocessing reason that, geologic disposal space will be scarce and valuable in the future and must be conserved by reducing nuclear waste volume . New generations of reactors can contribute to the nuclear waste and storage issue by producing less nuclear waste than LWRs, whilst producing the same amount of electricity. It would even be more impressive if the new reactors could proficiently use actinides extracted from existing LWR waste as new fuel , in other terms, it is falsely worded as “burning” of nuclear waste, this would not only reduce the current stockpile of nuclear waste but also conserve space in the repository. Forecasts Today the world is going through not only an energy crisis but a climate crisis as well and nuclear energy can lend help in both arenas. Governments worldwide have increasingly become aware and pushing for reliable alternative sources of energy in hopes of reducing dependence on imported fossil fuels. They are also trying to achieve their goal of zero greenhouse emissions by 2050. Nuclear energy, with its 413 gigawatts (GW) of capacity operating in 32 countries, contributes to both goals by avoiding 1.5 gigatonnes (Gt) of global emissions and 180 billion cubic metres (bcm) of global gas demand a year. While wind and solar PV are expected to lead the push to replace fossil fuels, they need to be complemented by dispatchable resources. Nuclear power is still developing but has huge potential along with deployment or shipment feature, allowing to help create diverse low emissions electricity systems in countries which does allow nuclear power. Advanced economies have lost market leadership - Whilst seventy percent of universal nuclear capacity belongs to the advanced economies, the domestic markets are not doing well. There is a lack of investment, the projects underway are already behind the schedule with increasing costs that are way beyond the budget. As a result, the project pipelines and preferred designs have shifted. Of the 31 reactors that began construction since the beginning of 2017, all but 4 are of Russian or Chinese design. In May 2022, the Palisades nuclear power plant in Michigan shut down as planned. This retirement of 769 megawatts (MW) of capacity contributes to our expected slight reduction in U.S. nuclear generation in 2022. Two new reactors at the Vogtle plant in Georgia are scheduled to come online in 2023, adding 2.2 GW of nuclear power to the system. We expect the nuclear share of total generation to be 19% in 2022 and 2023, about the same share as last year. Safety and waste concern still has few countries wary of nuclear power and hence, still is banned - Chernobyl in Ukraine (1986) and then Fukushima-Daiichi plant in Japan (2011) still have public suspicious of nuclear power plants. The bans and phase out plans of nuclear power are due to fear of another accident but this time, it is in their backyard. Whilst advancement has been made in the disposal of nuclear waste, only three countries in the world have approved sites for deep geological repositories for nuclear waste, however, not all these sites are in function. Hence, we can see once again how big a challenge it has been and will continue to be so to gain public support and political support. There is the possibility of a nuclear comeback as more policies have become nuclear friendly - Pledges of net zero greenhouse emissions were made by seventy countries, who altogether contribute about seventy-five percent of energy-related GHG emissions. Renewables are being boosted to the frontline as they are the largest source of low emission electricity, especially by the countries which do not use nuclear energy and nor do they have any plans underway to do so in the future. However, other countries such UK, France, China, Poland, and India have not only invested in nuclear power but also proclaimed it will play an important role in their energy strategies. The USA unlike others is investing in advanced reactor designs, especially, SMRs. The entire energy markets have been disrupted due to the Russia-Ukraine war, seeing a spike in energy prices worldwide. The war not only highlighted the unreliability of imported fossil fuels for domestic energy but also, how governments need diverse domestic energy sources. Hence, the UK plans for eight nuclear reactors whilst Korea and Belgium have postponed shutting down their nuclear power plants. Not only that but after obtaining safety approvals, Japan is planning to restart its nuclear power plants, which allows LNG resources to be shipped off to distressed Europe and the rest of the Asian markets. Nuclear power can have revival if only government interferes through policy support and tight controls. Trend Drivers Economics – The Russian invasion of Ukraine has disrupted energy markets and spiked oil and gas prices, hence, presenting a competitive market for nuclear energy. The energy would have the same effect due to the worsening climate crisis, which already had put several policymakers thinking about carbon pricing, and if this policy is pursued aggressively in the future, not only will be nuclear energy needed but be a competent resource. Security of energy supply – Political disagreement can disrupt of energy supply, as we have seen in wake of the Russian invasion of Ukraine. Russia has stopped exporting gas to Finland, Poland, and Bulgaria as they refused to pay in rubbles as per Russian demand for payment instead of euros or dollars. Even Nordstream 2 project has been put on halt by Germany, a country that in 2020 relied Russian supply of more than half of Germany’s natural gas and about a third of all the oil… and roughly half of Germany’s coallxxii. The event worldwide has made countries realize the dangers of reliance on imported fossil fuels and the need for a steady domestic energy supply source. Nuclear power can act as a hedge against the susceptibility to disturbing oil and gas supply. Rising energy and water demand along with constrained supply sources – Global population has boomed along with technological evolution and ambition of a high standard of living, which no doubt would mean a doubling of electricity consumption by 2030. To cater to the freshwater needs of rising populations, desalination plants have been opened in several countries such as Saudi Arabia, the USA, etc. These plants consume a large amount of electricity, something nuclear power plants with lower emissions than fossil fuels. It can help produce industrial fresh water on a large scale whilst supplying baseload electricity to grids. CONCLUSION Nuclear power is but ungainly technology borne out of the long-gone Cold War era, a bane if you will. The risks are simply too high to give in to the greenwashing image of nuclear power pandered by the nuclear industry, nuclear advocates, and pro-nuclear governments. Nuclear power may produce zero GHG emissions but nuclear waste can produce far worse consequences if it is not properly stored. Nuclear power is also treated as an existential choice because climate change has become an existential problem or will be one soon if the GHG emissions are not brought down soon. However, the truth remains that nuclear power cannot rapidly develop within the time frame we need, the SMR designs are not going to be commercialized anytime soon because of heavy and several safety checks. Renewables, on the other hand, is evolving and deploying at a much faster and cheaper rate, not only that but they are more flexible. Looking through the economic lenses, the standardized reactors acted as an effective strategy for nuclear power in many countries such as France, however, then they decided to build even bigger reactors such as the European Pressurized Reactor. For example, the Flamanville plant, which was initially was expected to cost 3.3 billion euros and start operations in 2012 lxxiiiwith delays and additional costs is set to start operation in the second quarter of 2023, and the latest count the estimate cost had risen to 12.7 billion euroslxxiv. The UK with its Hinkley Point as 2022, has revised the operating date for the site in Somerset is now June 2027 and total costs are estimated to be in the range of £25bn to £26bn and if it finally comes on stream, British consumers will be burdened for decades with the price of the electricity produced there index-linked for 35 years from the exorbitant level of £92.50 per megawatt hour originally set in 2013lxxv. Nuclear power put its bet on the SMRs, however, there is no guarantee that they will successively work as they are developing stages and even if they do, they will not be deployed until the 2030s. A nuclear fade case is ideal possibility, wherein the number of underway projects do not increase and no further reactors are built nor are there any lifetime extension of older reactors. The nuclear fade case was much realer in 2019, when they were explored by the IEA and World Energy Outlook by implementing them in: New Policies Scenario and the Sustainable Development Scenario respectively. However, as of 2022, there have been regulatory decisions to extend the lifetime of over 50 GW reactors. In the United States, an additional reactor has been granted an initial 20-year extension and six others approval for a subsequent 20-year extension since 2019. In France, regulatory approval has been granted for 32 reactors to be extended by ten years. These approvals are alongside EDF’s Grand Carénage programme, which runs from 2014 to 2025. It involves substantial investment in enhancing reactor safety through maintenance and technical modifications, with the goal of prolonging the lifetimes of most of the fleet of 56 reactors beyond 40 years. In Japan, two additional reactors received regulatory approval to re-start since 2019. Nuclear energy as of now persists and bright future seems to be on horizon for it. Are we ready to take the risks that come along? Personally, I’m not and ideally, the fade case for nuclear comes becomes a reality. BIBLIOGRAPHY i Duggal, H. (2021, November 4). Infographic: COP26 goals explained in maps and charts. Aljazeera . Retrieved from: https://www.aljazeera.com/news/2021/11/4/infographic-cop26-climate-summit-goals-explained ii Laue, H.J; Bennett, L.L; Skjoeldebrand, R. Nuclear power in developing countries. Technical co-operation . 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