The rationale behind reservation of the people: The Reservation Index
Rational Welfare Economics in my perception is defined as the way to solve the problem of hunger. I was an advert follower of the problems created by the world hunger to disrupt famine and widespread turmoil. In this light I propose the theory of “Economic Zone Division” theory that will help a state to grow fruitfully by creating and developing specially identified zones of economy.
Let us assume that the total income of a family which is the single building block of a state as = 1250 INR per week.
Let the total expenditure be 1000 INR.
Then, the income/expenditure ratio from a rational point of view should exceed the amount earned through the export/ import ratio of the state, in order to have a term of “healthy” house.
The logic behind this is simple. If we assume that the house is the building block of the state then, the “healthy” house should directly correlate to the health of the state. The inflow of funds could be similar to earnings and the export amount earned, while expenditure is the amount needed to level the internal needs.
This can divide a state in three types of zones:
1. Healthy Zone – Marked in Green, 70 – infinite % of the Export/ Import ratio of the trade
2. Just Healthy Zone – Marked in Yellow- 30-70% of the Export/ Import Ratio
3. Not so Healthy Zone – Marked in Red- 0-30% of the ratio of the state
For locality as a sub division, it determines the health of the overall house.
The next index is the Economic Zone Index of a state. It is defined as the Total Income/ Total Population of the sub-division. It is comparable to the GDP of the state per capita as the brick of the wall determines the performance of the whole wall.
Again it can be divided into five zones:
With the zones being created with the n th % age of the GDP per Capita.
Rational economics states that the income status of a family based on reservation should work out on the following pointers:
1. SC, ST, OBC, General or Caste Index
2. Economic Zone Index
3. Development Zone or the Healthy Index
Let us assume that the SC earns 2 points in reservation, ST earns 1.75 points in the reservation, OBC earns 1.50 in reservation, general is free at 1.25.
Let the economic zones earn 2, 2.5, 3.0, 3.5, and 4.0 in the ranks of decreasing order of priority of the zones, which means that red had 4.0 and so on blue having 2.0.
Let the healthy index have the points 2, 3, and 4.
Now an SC (2.0) from an economic zone Orange (3.5) at a healthy zone of red (5) will have cumulative points of 2 * 3.5 * 4 = 35. Depending on this 4C1 * 5C1 * 3C1 the no. of reservation points will be 60 with over lapping, with an SC (2.0) with low economic zone (4.0) and very bad health of the house (4.0) should be given highest priority as they are at top 16.0.