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Introduction

Background of the Study

China is the worlds most populous country. The country is rated the second largest in the world by land area. The country also has the fastest growing economy in the world, having overtaken other major world economies except for the United States. The population growth of this country is high. From the figures that are available from the report given by Brown, Kroszner and Jenn (2002, p. 23), the population of this country is expected to hit a record 2 billion people by 2050. This means that the country must develop mechanisms that would enable it to sustain this huge number of citizens. In this regard, a number of projects must be set up to counter the negative influence of population growth.

There is an emerging trend in the country where most of the citizens of this country prefer staying in town as opposed to staying in urban centres. There is a massive migration of people from rural to urban centres. As at the moment, the population of Chinese in urban centres is well over 200 million people. This number is expected to shoot to about 350 million people by 2025, according to the report by McKinsey Global Institute (2009). This means that the country must be ready to sustain this population and even more by the above stated time to have self-sustaining cities.

In response to this need, the government, through various urgencies, has initiated a massive project that is expected to develop sustainable cities in various selected locations that would be able to sustain the expected population. China Sustainable Cities Program is one of the most ambitious projects ever to be designed on the face of the earth. The financial consequences, the expected time, and other costs that would be directed to this project are massive. If successfully implemented and completed as per the specification, the result would be a city that is self-sustaining, a city that the Chinese have always dreamt of for the last century.

Problem Statement and the Research Hypotheses

The future of our environment heavily depends on what we do today. Several environmental organizations, especially the Green Belt Movement, have categorically stated that China is the worlds leading country in pollution. This is understood because the country is currently home to various international manufacturing firms. The consequence of this is not only felt by China itself but also the rest of the world at large. However, the fact that the cities are fast-growing and the consequences that come with this will be felt by China as an individual country. Therefore, there was a need to develop a sustainable city program that would ensure that the rising urban population is put under check. As stated above, this project is very ambitious, and its successful completion would result in cities that are not only attractive to the Chinese but also foreign investors.

Though, one problem that the management committee of this project must put into serious consideration is the possible risk factors that may accrue in the process of implementing this project. Attractive it is, but if care were not taken to keenly identify the possible risks that may affect the project, then the whole program would be a white elephant, and the taxpayers money would be lost through failed projects.

Therefore, this study seeks to follow the path taken by May (2010, p. 77) on those lessons from Huangbaiyu. The researcher intends to analyze the possible risks that the project may face, and design risk management techniques that would help the implementing authorities of the project work with the least possible problems. The researcher seeks to identify these risks and develop means of averting them in the entire implementation process. In essence, the researcher seeks to reject the null hypotheses stated below (and accept the alternative hypotheses) through quantitative data analysis.

H1o. Perception of risk management is not related to perceptions of project maturity, corporate culture, and project sustainability.

H1a. Perception of risk management is related to perceptions of project maturity, corporate culture and project sustainability.

H2o. Identification, quantification, and mitigation are not the three main areas in the activities of China sustainable cities program, and response control is not the key accompanying tool for environmental issues.

H2a. Identification, quantification, and mitigation are still the three main areas in the activities of China sustainable cities program, and response control is the key accompanying tool for environmental issues.

H3o. Risk quantification technique is not an appropriate mathematical method in dealing with international project uncertainty.

H3a. Risk quantification technique is an appropriate mathematical method in dealing with international project uncertainty.

Justification of the Study

Bussey Bridge in Boston, the United States, was one of the most attractive projects that were expected to generate revenue that would exceed the cost of its construction in less than one year. However, because the implementing authorities failed to analyze the possible risk factors that could be associated with the project, the result of the entire program was the infamous Forest Hill Disaster where the iron railroad collapsed under a train, killing thirty people and injuring over forty on March 14, 1987, not to mention the wasted due to the fallen bridge. This is just but one incident. Other numerous ugly accidents have happened due to inappropriate measures taken to mitigate risks in massive projects. China Cities Sustainable program has been hailed as a massive project that stands to benefit many. Researchers have extensively reported on how the country stands to benefit from it. However, little research exists on risk factors that may come with the project and mitigation measures that come with it. It is upon this basis that the researcher decided to conduct this study.

Aims and objectives

Through this study, the researcher seeks to achieve the following objectives.

1. To investigate the possible risk factors that may be associated with the China Sustainable Cities Program.
2. To determine the mitigation measures that may help avert the identified risk factors in the project.
3. To identify individuals and authorities that would be in the best positions to implement the above-identified mitigation procedures.

Scope of the Study

This research aims at assessing China Sustainable Cities Program and determining the risk factors that are associated with the project. Therefore, the study is limited to this specific project. The findings of this study, its conclusions and recommendations are specifically meant for this project. The scope of the study is also limited to China as a country. Although the study may be helpful in other countries and in other projects, it was specifically meant for the above-stated project.

Significance of the Study

This study aims at developing measures that would help avoid the risks that may be associated with this massive project. As such, the researcher hopes to eliminate such incident that may occur in the process, or after the completion of the project that may cost lives of people or damage of properties or the project itself. Because this is a scholarly research, the report would also be useful to future researchers in this and other related fields.

Literature Review

This chapter is a detailed analysis of the existing literature on China Sustainable Cities Program and other related literature about project management, especially the management of risk factors. In this literature, the researcher hopes to find supporting clues that would help in supporting the alternative hypotheses set in the research proposal by rejecting the null hypotheses. Below are the hypotheses that the literature review in this chapter is trying to respond.

H1o. Perception of risk management is not related to perceptions of project maturity, corporate culture, and project sustainability.

H1a. Perception of risk management is related to perceptions of project maturity, corporate culture, and project sustainability.

H2o. Identification, quantification, and mitigation are not the three main areas in the activities of China sustainable cities program, and response control is not the key accompanying tool for environmental issues.

H2a. Identification, quantification, and mitigation are still the three main areas in the activities of China sustainable cities program, and response control is the key accompanying tool for environmental issues.

H3o. Risk quantification technique is not an appropriate mathematical method in dealing with international project uncertainty.

H3a. Risk quantification technique is an appropriate mathematical method in dealing with international project uncertainty.

The Nature And Characteristics Of China Sustainable Program

China has the largest population in the world. Cadle and Yeates (2004, p. 45) state that China is home to about 1.3 billion people. Some of the provinces within this vast nation are partially autonomous, with their own governments and other relevant facilities. The cities within this country are expanding at an alarmingly high rate. Chandra (2009, p. 11) states that Shanghai alone has had about 56 per cent increase in population in the past twenty years. The rate of expansion of these cities is expected to increase, especially with the expansive economy of the country and the fact that the country is currently the leading manufacturer in the world. The cities would have to host not only the Chinese but also other nationals who would come to trade, as casual laborers, or expertise in various production facilities within the country. Having realized the looming crisis in the country following the expected growth of population in the cities, the concerned authorities have realized the importance of having the cities upgraded to reflect the current needs. According to the report by Dong and Yang (2008, p. 33), the authorities have come to terms with the reality on the ground, and have come to the realization that not much can be achieved out of the cities if programs to implement current changes are not implemented as soon as possible.

Engineers from China designed most of the cities, several years back. Though good enough to sustain the current population, the rate at which the cities population is growing is a clear pointer that the country stands to lose many revenues if immediate changes are not met. Therefore, many of the authorities have considered outsourcing the expertise of UK urban designers and planners. Dressel (2001, p. 87) argues that most of the cities in the United Kingdom are designed in such a way that they can sustain an unexpected upsurge of the population without causing an upset to the available facilities. This scholar notes that because of this, these United Kingdom cities have remained sustainable even with the increasing population. This is what the authorities seek to borrow from these cities in an attempt to ensure that these Chinese cities become sustainable with the expanding population. Changsha, Chongqing, Hangzhou, and Wuhan are some of the cities that have clearly come out to seek the expertise of the UK urban designers and planners. This research seeks to study the projects of two of the four cities: Hangzhou and Wuhan.

The Action Plan 2011-2012 for the UK-Hangzhou Sustainable City Partnership is a project that is expected to improve the Hangzhou by planning and designing it in a way that would be sustainable in the coming future. Within this city, there four sections that define the entire project. The first section is the delivery of the action plan, which involves defining the main players of the project. UKTI Shanghai will be the link to the UK planers and designers of urban centres. The Hangzhou Municipal Foreign Trade and Economic Cooperation Bureau will be the leading Chinese stakeholder in the project. The second section involves defining activities and projects of the action plan 2011-2012. Geschwind (2001, p. 32) says that a good project should have all the activities clearly defined and the tasks appropriately assigned. This argument is supported by Earl, who emphasizes on the need to define and assign activities of a project with the clear timeline clearly stated.

This scholar further explains that the individuals should then be grouped into units based on the closeness of their projects. This section has clearly stated the roles of different participants and the expectations after the completion of the project. The third section of this project is the scope of the plan. Horlick-Jones (1995) argues that every project must have a scope. The scope, according to this scholar, would help the planers know what to include in the project, and what to avoid. The participants in this project agreed that besides the activities stated in section two, both of them would give consideration for further cooperation if such a need would be. This is very important for the success of the project. Insag (1992, p. 65) notes that a projects success has its genesis from the trust between the two concerned parties.

This would eliminate any conspiracy that may arise where one participant wants to demonstrate that the other is ineffective in undertaking the assigned duties. Broadening a narrowly defined scope leaves the participants with a room to expand the current scope to include some factors that were not included in the initial plan. Section four of this project defines the commencement date, the duration that the project is expected to take, and a room for the termination of the project. This, according to Kunreuther (1997, p. 20), is a very important aspect of a project. This scholar holds that a good project should have the time constrain should be spelt out so that the supervision of the project is made easier. This argument is supported by May (2008, p. 17) who says that when specifying the time, it is important for the participant to specify the time that they will complete the projects so that their performance may be determined as at the stated time intervals. Wuhan Sustainable Cities Initiative project has the same procedure as that of the Hangzhou Project stated above.

China Sustainable Programs Drivers And Constraints

Register (1987, p. 42) defines project drivers as the items that have brought the initiative to put up the project. According to this scholar, project drivers are the opportunities that may be gained if the project is implemented or the possible threats that must be avoided for a successful operation of the firm. This project had a number of drivers that forced the two cities to implement the project. According to Steffen (2010, p. 38), Wuhan and Hangzhou are some of the fastest-growing cities in China. The current population of these two regions is already having a heavy impact on the two cities. There is every need to ensure that the cities develop proper structures that would help it sustain itself. The first driver of this project is the numerous benefits that this firm stands to gain by successfully implementing the project. By implementing the project, the cities would open up for foreign investment. This would increase the revenues collected by the two councils in tax and other charges. The region will also experience a general improvement of the living standards of the citizens of this country, as there will be increased job opportunities. There also some negative drivers that the cities are trying to avoid.

According to the report by Slovic, (1993, p. 67), most of the cities in China have an increased level of urban sprawl. This is partly due to poor urban planning, as Suzuki, Dastur, Moffatt and Yabuki (2009, p. 25) note. This has had a negative effect on these cities, especially the sanitation and traffic movement. With the increasing population, Wuhan and Hangzhou risk having their environs to become completely polluted due to the increased demand posed by the higher population. These are the main drivers that made the councils of the two cities settle on the decision to implement the sustainable cities program. Abdurrahman (2010, p. 39) observes in his report that there are situations where the forces become so strong that trying to resist them may prove foolhardy. In such situations, this scholar notes that it may force the concerned authorities to act in a way that would avert the forces of nature.

The project has some constrains that must be observed by both partners that are involved in the project. According to Abu and Faruq (2010, p. 78), the leading constrain in a project is always a time factor. This is also supported by Andrzej and Buchaman (2007, p. 42), who argue that a project must have a time constrain clearly spelt out, stage by stage for there to be a proper monitory mechanism. By spelling out time for the project, Earl says that it becomes very easy for all the involved participants to determine the success of the project stage by stage, from the onset of the project. Hangzhou had divided the project into four faces. The first face of the project was stipulated to begin in 2009 and run until 2010. The second face was set to begin in 2011 and run until 2015. The third face of the project would begin in 2016 and run until 2020.

The last face would run from 2020 to 2050. The participants must observe these time constrain there to be a successful implementation of the project. It would be possible now, to determine the success of the project by looking at the first face, which by now is expected to be complete. Barbara (2005, p 6) says that another important constrain that must be considered in project management is the available finances. Wuhan has various projects each estimated to cost differently based on their magnitude. The third project, which aims at eco-system protection, is estimated to cost the council RMB 15.875 -13824. Waste Water Treatment Project, which is the fifth project, is estimated to cost the council $ 11 million. The seventh project; the Caidian Wetland Ecological Park Scheme Project is estimated to cost the council 4.57 billion shillings.

The eighth project of building Tianxing Ecological scheme would cost about $ 2 billion, while the ninth project of building commercial and residential complex scheme would cost the council RMB 6 -13824. Barry (2005, p. 12) notes that defining the value of each project the way Wuhan Council has done is very important. It allows the implementers of the project to determine if the available resources would be enough to finance the intended projects. Barthe (2010, p. 22) on the other hand thinks that although the art of defining a large project in small subproject may help assign value to each project, the strategy is far more costly than when the project is defined in entirety. By defining the entire project, it becomes possible for the council to negotiate a lower price and award one firm the entire project. This scholar also notes that this would foster uniformity of the construction. Both partners must ensure that they work within the set constrains if the best result is expected.

China sustainable programs global network and collaborations

China Sustainable Program is designed in a way that it incorporates various stakeholders. The two councils conducted a research, and it came to their realization that the cities in the United Kingdom were designed in a way that they reflect the current needs of highly-populated urban centres. The cities have been designed to sustain population influx, although the growth rate of the country does not indicate the possibility of having this influx in the near future. Therefore, the councils have decided to collaborate with firms from the United Kingdom in developing sustainable cities that would help it come up with the desired cities designed to meet the increasing population of China. The Hangzhou Municipal Government has signed a contract with a leading UK trade and investment authority, known as UKTI (United Kingdom Trade and Investment). The two have agreed to work in collaboration to ensure that the entire project is successful in its implementation. This firm would be the global link of Hangzhou in the international forum. It would be responsible for outsourcing the best expertise from the United Kingdom and other world regions. This is in line with the explanation given by Belanger (2011, p 21) on projects global networks and collaboration.

Wuhan Municipal Government has also outsourced the services of UKTI in implementing the various projects that it has set in a bid to ensure that its city is planned and designed to reflect the current and expected future demand. UKTI has entered into a collaboration with this government to ensure that the projects get the right personnel that would be in a position to ensure that Wuhan is transformed into one of the ultra-modern cities not only in China but also the entire world. This reflects Bells (2001, p 38) advice on project networking.

China Sustainable Programs Organization And Corporate Governance

Biswas (2011, p. 55), observes that it is very important to realize that a project, just like any corporate task, must have a clearly defined organizational structure in order to achieve the desired result. This scholar further notes that corporate governance is very important in project management, especially if the magnitude (in terms of the financial need and the impact it has on the society in general) is huge. In both municipalities, the magnitude of the projects is huge. As Bowe, Briguglio and Dean (1998, p. 61) state, the concerned authorities have clearly defined the organizational structures of the projects and corporate governance that would ensure the success of the projects. Wuhan has ten projects that should be completed within a varying period.

Having realized their capacities and the deficits they have in expertise and facilities, Wuhan Municipal Government has developed a management pattern that has seen it assign UKTI some tasks. The council is not without expertise. Therefore, this council has entered a partnership with UKTI to handle some tasks in the project that would help ensure that the projects are completed at the least cost possible. Clement and Henry (2010) say that this is important because it helps strengthen the bond between the outsourced firm and the client. Clement and Rodney (2004, p. 15) further observe that this would enable the participants to work as a team. Both sides will benefit from the experience of the other. Most of the projects activities would be carried out within Wuhan, while others would be done in the UK and Beijing.

The same strategy is applied by Hangzhou in managing its projects. In both cases, the management is reduced to the individual level and is assigned to the participant. Each participant would be responsible for the management as regards to the assigned task and ensuring his or her success, as suggested by Clinton (2011, p. 63).

Project Management Maturity Model And Capability In China Sustainable Program

Project Management Maturity Model is a tool that is used in measuring project management maturity. It provides a roadmap with the necessary steps that should be taken towards the project management performance improvement and maturity advancement. Drake, Wong, and Salter 2007) state that this model provides a logical path towards progressive development and strategic plan for the advancement of a project. The levels given in the figure below (levels 1 to five) shows projects advancement towards maturity and the activities that should be carried out towards the same, from the initial stage to the optimizing stage. In the rows are the tasks to be taken out at these stages. This model shows that the China Sustainable cities program has a clear-cut strategy that would help it in achieving the desired objectives. Also important to note is the fact that the stakeholders have factored in risk management policies, as shown in the model below. This would help in ensuring that the project management team is in a position to identify the risks and act upon them as soon as would be possible. This would help in ensuring that the risks are identified at an earlier stage so that the consequences of late identification are eliminated.

The Nature Risk And Risk Management In China Sustainable Programs

Ewens (1972, p. 76) notes that it is very important to come up with a workable definition of projects risks in order to be able to identify them in the course of the project and work upon them as soon as possible in order to eliminate their consequences. This idea is supported by Falah (2005, p. 111). According to this scholar, risks refer to exposure to uncertainties, which may potentially have negative consequences, and therefore affect the project negatively. French, McNayr and Escher (2010, p. 112), on the other hand, define risks as unforeseen consequences that may result in loss of money, labour or time of a project. In every project, there is always the need to ensure that all the risks are well calculated, and their consequences factored in. As Hirschey, Kose and Makhija (2004, p. 20) say, there is no project that comes without risks. Every project has its own risks. The most important thing should be ensuring that these risks are well-identified and appropriate measures taken to manage their consequences. China Cities Sustainable Programs is a massive project that would have a huge impact on the cities. However, it would be very important to appreciate the fact that this would come with some risks that must be factored in for it to be possible to be successful.

According to the reports by the UN-Habitat, there is a huge movement of people from the rural set-ups to urban centres in the world over in this twenty-first century. China is one such country that is experiencing this influx in its cities. This program is designed to help ease the congestion in these cities. However, obvious risks lurk in the implementation of these cities. Kalmbach and Carr (2010, p. 19) note that there are some factors that are known to cause risks to the project implementation process. Volatility is one such factor. According to Kent and Thompson, when the nature of change and its dynamics is volatile, a project risks various challenges.

This is especially so when the project is to take a long period because what is considered relevant today may be irrelevant after a short while. Uncertainties, as Kent and Thompson (2005, p. 30) explain, is another risk factor. This scholar explains that when the project implementers cannot predict the future, it becomes impossible to design the project in a way that it would satisfy the future needs for which it is intended to. The management may end up designing a project that may not satisfy future needs. Complexity is another problem that a project may face. When the project has hidden cause-effect inter-connectivity, it may be challenging to come up with a clear means of approaching issues that may cause a threat because it is difficult to single them out. In other cases, this is rare, though, the project implementation team may be vague in defining the project.

Kline (2010, p. 34) observes that there are a host of project risks that an organization may face. One such risk is inadequate sponsorship. When the project lacks a proper sponsor, it may fail, however ambitious it could be. A slow or poor decision-making process is another risk that a project may face Krathwohl (2004, p. 50). When a project lacks a clear decision-making organ that is efficient and effective, there is a huge risk that the project may fail to pick up at the expected pace. Kurtz and Boone (2010, p. 100) note that a project without a clearly defined scope is another risk that should be taken care of. When the scope is not defined, the project may risk being considered vague. Change management is another factor to be considered. Lacity, Willcocks and Feeny (2004, p. 127) argue that change is the most permanent factor in every aspect of a project. It is therefore very important to ensure that the implementing parties take either into consideration future changes that may affect the project before it is completed or after its completion. The resources, as Lall and Narula (2004, p. 467) note, must also be available. When the resources are available, it becomes easier to implement the project within the shortest time possible.

Qualitative And Quantitative Approaches In Risk Management

As Majer (2011, p. 62) observes, risk analysis is always performed in two ways, either quantitatively or qualitatively. It is very important that when assessing the two types of risks, the two approaches are clearly understood. Manaschi (1998, p. 87) states that risk analysis is very important. Through this, the supervisory task players would recognize the possible and existing vulnerabilities, fears and other dangers that can potentially derail the overall performance of the program. Therefore, care should be taken at this stage. When conducting a risk analysis, it is important that the approach chosen is compatible with the project itself. Michael, Lino and James (1998, p. 16) say that when conducting a risk analysis for a project, it is important the scope and approach should be harmonized with the project size, time availability and the expenditure.

Minja (2009, p. 14) supports this by noting that it is illogical for an individual to conduct a massive risk analysis that consumes a lot of time and money on a small and inconsequential project. Similarly, it would be suicidal to conduct a mini risk analysis on a huge project that has taken a lot of time and resources to complete. As Moran (2011, p. 80) simply puts it, risk analysis should be proportional to the project itself. A huge project like China Sustainable Cities Program should have an equally detailed risk analysis because it has a huge financial consequence.

The risk analysis team chooses to use quantitative, qualitative or both approaches in conducting risk analysis. This would be based on the requirements of the project and the available resources. The main difference between qualitative and quantitative risk analysis approaches is based on the objective. The objective of performing qualitative risk analysis to a project is to acquire security against identified risks and heighten the alertness of team members, the management and all other concerned people who may be vulnerable to the risks Panagariya (2008, p. 46). According to Proulx (2011, p. 69), this approach is important in the identification of impediments of project management that have the potential of becoming risk factors. Alternatively, a quantitative investigation is apprehensive of the execution process that is, the essential safety procedures that have already been recognized in order to put off all the dangers that have been described. When this approach is employed, Ruddar and Sundharam (2009, p. 141) note that the management would be in a position to conduct a conscious analytical interpretation which would help in the development of measures of risks resolution. Given the magnitude of China Sustainable Cities Program, there is a need to conduct both quantitative and qualitative risk analysis approaches.

Opportunity Management

According to Safizadeh, Field and Ritzman (2003, p. 557), effective risk management involves learning how best the team can recognize and subsequently capitalize on the available opportunities, besides recognizing failure points. This fact is emphasized by Shachaf (2008, p. 131), who notes that risk management should not be narrowly defined as identification of risks and how best these risks should be countered. This scholar notes that the team should not just concentrate on being on the defensive. It should also focus on being on the offensive by going for the existing opportunities and making the

Introduction

The history of economic growth in India is now often perceived through the lens of social disruption. While the overall view of the developing country may suggest that the economy of India is booming, a closer look at the states communities reveals a growing divide between the richest and the poorest people. The latest decade of such increase in prosperity and poverty has been compared to the United States Gilded Age which the country entered after the Civil War.

Crabtree (2018), for instance, notes that the path which India has chosen now furthers the distinction between classes and creates more opportunities for people with high incomes to gather even more financial wealth than before. On the other hand, individuals and families with limited resources suffer from barriers to resources which affects their future aspirations (Dehejia, 2018; Genicot & Ray, 2017). The difference between the incomes and the inequality of conditions in which people live further exacerbate the instability of Indias economy.

Thus, the issue arises that enquires which policies may be necessary for the country to reduce its economic divide. One may consider multiple approaches, but all of them require some research on the causes that lead to the unstable implementation of capitalism in the developing state. Among various suggestions and proposed reforms, it is possible to outline an option that affects the economic future of India most directly since it is focused on the youth.

Policies related to education are advised as a way to reduce inequality in India  they do not address the economic state explicitly, but they may significantly alter this sphere. Mass education challenges the ideologies of people from all backgrounds, as well as provides impoverished people with an ability to improve their financial state while addressing the issues related to ethnic, socioeconomic, and gender inequality.

Research Question

The introduced research question considers the ways in which external causes influence income inequality in India and the countrys overall state of the economy with the focus on future changes. There are many ways in which the financial situation of the nation may be analyzed. Some people focus on political reforms that challenge corruption, while others address the idea of taxes being imposed on the most prosperous Indian citizens and reduced for the poorest parts of the nation. However, the notion that some global actions such as education may mitigate economic issues is also a vital part of changing the countrys development patterns.

In fact, the concept of change being encouraged from the youngest generations is likely to be highly influential in many instances. In their research, Uslaner and Rothstein (2016) show how the ideas of education and corruption may be connected, for example. Thus, this research question is formed to relate these ideas to each other and to implement them in the case of Indias economy.

Topic Relevancy and Current Problem

Apart from explaining why education may be linked to economic inequality, it is also vital to understand why India needs these studies in the first place. According to Dehejia (2018) and Crabtree (2018), India is currently undergoing changes that are similar to the ones that happened to the U.S. in the Gilded Age. During this time, the Western country has experienced rapid growth in production and economic prosperity which, however, led to a sharp separation between the rich and the poor. In India, the same problem has risen, and it persists to this day  poor peoples income does not decrease, but it also does not improve.

As a contrast, the wealthiest people multiply their revenues, thus increasing the divide between the classes. In the years from 2006 to 2015, billionaires have started acquiring six times more wealth than before, while hired employees pay have not increased for more than 2% (Income inequality gets worse, 2018, para. 4). These numbers indicate an apparent discrepancy that affects all sides of peoples lives apart from the countrys economy as a whole.

The shift to the increase in wealth and peoples separation into classes has been discussed for approximately a decade. Moreover, the problem continues to affect the population as its 1% of wealthiest persons is the owner of more than 70% of all wealth in the state (Income inequality gets worse, 2018). This situation does not signify a growing economy but the opposite of improvement. Although the banks and the government may have more liquid capital that moves between industries, manufacturers, and businesses, it is occupied by a small number of people who make rather dangerous decisions and harm the economic stability in the long term.

The system implemented in India at the moment fails to supply the majority of its population with resources for basic survival, not considering the means of life improvement such as healthcare and education. Minimal wage workers who are responsible for producing vital resources cannot afford safety and comfort, thus experiencing high levels of uncertainty in their future.

The need to fix the problems of India through government action is highlighted by scholars. Policies are proposed as a way to regulate the unstable economic situation which places some people above others because of their financial prosperity. Government-induced changes have an opportunity to introduce changes that will provide the necessary limitations to those who currently have a significant influence on the market. Furthermore, they should introduce strategies for poor people to overcome and eliminate existing barriers.

After analyzing the currently active systems in India, it becomes clear that the topic discussing the inequality of people in the state is highly relevant to contemporary economic research. Moreover, this pressing issue requires more attention each day because of the difference between poor and rich people affects the countrys economy, politics, social tensions, and even the environment. As the main concern relates to the ways of fixing income inequality, future considerations and policies should be investigated and proposed. The idea of education being a catalyst for change, as an outcome, should be assessed in order to determine its potential.

Conceptual Framework

The main idea behind the proposed research question is formulated on the basis of a framework that is introduced by Uslaner and Rothstein (2016). The scholars also use a theory which implies that a change from corrupt particularism to ethical universalism is beneficial for a population (Uslaner and Rothstein, 2016, p. 234). In this case, education is not seen as a general sense of teaching people new information. Instead, the authors consider free learning opportunities that are accessible to all members of the population. Universal education is a policy that, according to Uslaner and Rothstein (2016), serves as a robust foundation for reforms of the countrys economic and political situation.

The present research adopts this framework in order to see whether India can benefit from universal education. Moreover, this concept suggests specific changes to the economy which will be father discussed in the literature review. However, it is essential to note why these alterations are expected of the country. First of all, Uslaner and Rothstein (2016) argue that the implementation of free education influences the publics perception of the government. People believe that their country is focused not on a particular goal that can be achieved only by a small number of rich people. Instead, the state firmly trusts in its citizens to move forward towards the common good together.

This is the first implication that creates political advantages without directly addressing economic policies. Secondly, the education itself is seen as a source of positive change. Higher education, in particular, produces professionals who can acquire profitable and stable jobs, leading the economy into a more service-focused and less resource-reliant infrastructure. Finally, training of all people promotes equality and social change that creates different ideologies of money, wealth, prosperity, and values.

Literature Review

First of all, it is required to address the findings that describe Indias current situation in more detail. According to Crabtree (2018), the idea that Indias problems are similar to the United States Gilded Age is based on a number of implications. The author compares the super-rich of India to those in America, noting, however, that India based its growth on the industrial system, while the U.S. overwhelmed insurance companies and banks (Crabtree, 2018).

Crabtree (2018) also mentions how current issues of wealth-hoarding and cronyism are reminiscent of Americas rise of corporations after the Civil War. Here, the focus on industries is notable in regards to the present research  it outlines the lack of education requirements in many professions exploited by the system. At the beginning of the twentieth century, the educated elite was the group that first was exposed to an increase in wealth (Crabtree, 2018). However, the later investments ignored such spheres as community education and healthcare, thus neglecting social improvement in favor of financial growth. The social aspect, as a result, was completely overlooked which contributed to inequality and led to resource limitations for people.

The scholar indirectly supports the proposed framework by introducing the problem of upper-middle class creating barriers of entry for other people in such spheres as urban life, education, and technology use. Crabtree (2018) notes that Indian billionaires do not invest in workers lives, instead limiting innovation and improvement to highly urbanized areas where the rich live. The increase in inequality, is, therefore, induced not just by the lack of resources but their inaccessibility by poorer parts of Indian society. As an outcome, the gap continues to widen and create classes that differ not only in financial but also health- and training-related positions.

These ideas are supported by the most business publications which discuss how the rich in India influence the countrys economic and political decisions. One of many authors, Dehejia (2018) proposes an idea that Indian billionaires act similarly to robber barons of the U.S. These people, at some point, contributed to the growth of economy but also implemented the system of corruption and inequality based on ones earnings and socioeconomic background.

The role of education in such economic situations is considered to be vital by many scholars. Autor (2014) suggests that there exists a link between skills and earnings, proposing an idea that inequality in access to learning creates a similar divide in peoples wages. The scholar also argues that industrialized countries are particularly susceptible to this problem in the modern world. According to Autor (2014), the wage gap has significantly increased not only between the rich and the poor but also between people with and without higher education. As it can be seen in Figure 1, the earnings of people with a diploma have grown significantly, although the difference between men and women also became apparent.

The author explains that the evolving market with the addition of global trade has affected developed countries where unskilled labor is no longer deemed valuable. Nonetheless, this change also had an impact on developing countries where this labor was now used in exploitative ways. Thus, the living conditions of the poor did not improve, and their access to education became restricted by the overwhelming need for cheap labor.

The connection between education inequality and the income gap, therefore, are directly correlated with each other. Autor (2014) finds that market-based capitalism that does not result in economic mobility (a model that can be attributed to India) results in increasing inequality and social instability. Furthermore, the scholar suggests that opportunities for people of all backgrounds that are focused on providing them with knowledge and professional skills lead to the elimination or decrease of the gap and create a more stable economy. While this change does not produce quick results, it has long-term benefits for the country as a whole and for people who may suffer under the current system.

The findings of Autor (2014) are also supported by Uslaner and Rothstein (2016) who implement the learning-based idea into research of both developed and developing countries. The researchers discover that the implementation of universal education is linked to societies that regulate corruption effectively. Moreover, countries with mass learning programs rank higher than others in regards to having a robust economic system.

Uslaner and Rothstein (2016) provide statistical analyses which reveal that corruption levels and education are highly correlated, especially noting that people who spend more years in school also have more power over the economy. While this link does not imply that education will solve all problems that developing nations may have due to income inequality, it shows how learning may improve peoples understanding of the financial world. More than that, Uslaner and Rothstein (2016) argue that mass education elevates people from all socioeconomic backgrounds and lowers the rate of separation among the population.

The authors also connect exploitation of colonized nations and lower levels of exposure to the quality of education. Uslaner and Rothstein (2016) provide such examples as India being colonized by the British. The colonizers that utilized cheap labor did not contribute to mass education, keeping the nation employed for their needs instead. Other instances such as the native peoples of Uruguay also showed similar results, being forced into unskilled jobs, while other regions and people acquired access to learning. Therefore, the history of education has laid a foundation for communities to possess different values in the capitalist market which have persisted after India became independent.

The economic manipulation of colonialism affected the country through education along with other limitations. The authors find that India was among the nations with the shortest duration of mean school years, showing high levels of corruption as well.

The impact of politics on education is also a vital contributor to inequality among people of different socioeconomic backgrounds. This idea is proposed by Krafft and Alawode (2018), who explore such countries as Jordan, Egypt, and Tunisia. The authors find that higher education is much more restricted for people from lower economic classes. Notably, the scholars adjust their results to exclude the factor of scores.

They reveal that high scores are not as detrimental to peoples acceptance into schools as their economic situation. Furthermore, Krafft and Alawode (2018) argue that the countries where schools are publicly funded (Tunisia and Egypt) are currently receiving less financial support than before which leads to the decrease in equality among attending and potential students. Here, the research relates to the explored topic since Krafft and Alawode (2018) show how higher education is restricted in places where social support is lowered while the concept of merit is accepted. Here, the connection between capitalism-based beliefs and the rapid expansion of the rich is revealed.

Thus, limited socioeconomic mobility creates inequality which is further exacerbated by the lack of funding for people from lower class households. Krafft and Alawode (2018) show how education can affect the growth of the economy. At the same time, the authors suggest that the financial decisions of countries have a substantial impact on peoples education. The link is a circle in which all factors influence each other. As a result, Krafft and Alawode (2018) reinforce the idea that mass education is vital for the economic stability of developing countries. Such rapidly changing states need to balance their personal growth and external relations with developed countries.

Studies that specifically research the effect of education on India come to conclusions about the present and the future of the nations economy that are similar to those of Uslaner and Rothstein (2016). Kayet and Mondal (2015) examine the expenditures of rural Indian territories on public education and the connection of these programs to income inequality in these areas. The scholars find a positive correlation between these two variables, noting that states which contribute more money to learning initiatives and schools than others have reduced rates of income inequality.

Interestingly, they utilize the two main approaches of Indian politicians  relative inequality and absolute inequality, covering both ideologies expressed by the left and right sides of the political debate. According to the first view, inequality considers the overall growth of income, while the second point focuses on the increase in the wages of the poor, in particular. Kayet and Mondal (2015) find that, in both instances, the link between education expenditures and decreasing inequality is positive. The income grows for all people because all of them receive an education, thus being able to perform better than before.

This research suggests that policies for mass education are vital for relieving the current crisis that affects all regions of India. Kayet and Mondal (2015) argue that policy-based support of schools and wider access to learning should supply the population with the necessary resources to improve the state of the economy in the long term. The authors also propose that the gaps change will not decrease the overall financial development but help the poor part of the population to raise their level of life, thus eliminating related problems. The conclusion of this study highlights the importance of raising the financing of schools in rural districts in order to solve the problem of the Billionaire Raj  the phenomenon of rich people designing self-helping rules.

Another interesting study connects education, income, and political outcomes for India. Huber and Suryanarayan (2016) argue that ones socioeconomic status in India affects the way they perceive the political situation in the country and with which party are they more likely to affiliate themselves. The authors find that a correlation of such factors as income, education level, and party affiliation is strong. Huber and Suryanarayan (2016) note that professional training has been gaining more significance in the country during the last decade, as many people start using technology or participating in industries other than agriculture.

Thus, peoples income also becomes tied to their level of education. The authors compare the outcomes of higher education and peoples access to goods such as phones and clothes. They find that the formers analysis yields a stronger connection with inequality than the latter. Huber and Suryanarayan (2016) explain that skill acquisition is a better indicator of wealth in the long term in contrast to purchased goods since it usually results in people acquiring well-paid jobs. As a result, inequality between those who obtain higher education and those who do not grows as well.

A conclusion to which the scholars come is also interesting because they propose that ethnic voting is correlated to the mentioned above aspects. Specifically, areas of India where levels of inequality are extremely high have the most ethnically-driven bases for voting. Therefore, Huber and Suryanarayan (2016) argue that class differences also contribute to voting results that are not based on political campaigns focused on economics but on the participants ethnic background. Here, the problems of economic changes are grossly overlooked or misrepresented by parties depending on their foundational beliefs.

Finally, a study by Jerrim and Macmillan (2015) investigates an approach called the Great Gatsby Curve (GGC). This concept suggests that states where income inequality reached great levels have communities with low intergenerational mobility. The authors propose an education-based solution and investigate its potential to reduce the rates of immobility and inequality. Jerrim and Macmillan (2015) conclude that education of both parents and children is the main driving force behind the offsprings growing income. Moreover, they find a stronger connection between learning and inequality reduction than inequality and financial returns.

This signifies that apart from providing people with professional skills, education may also improve other parts of peoples lives. The authors also stress that developing countries which do not invest in public education have higher rates of inequality than others (Jerrim & Macmillan, 2015). Therefore, the need to supply the nation with mass learning opportunities arises as a result.

Evidence Analysis

The academic findings analyzed above show how the introduced framework can assist India in overcoming its problem of income inequality. The studies address both an overall connection of education and economy and the outcomes that some initiatives can have on India. A particularly interesting consequence is expressed in the work of Uslaner and Rothstein (2016) who link mass learning to reduced levels of corruption.

Notably, India is also suffering from the absence of legal control over the business of the so-called Bollygarchs  Indian class of billionaires. According to Linge (2018), these people do not invest in the social infrastructure of the country, focusing on their personal concerns and wishes instead. This phenomenon is not unique to India  research has shown that countries with high inequality rates produce rich people with high levels of greed and self-centered views (Piff, 2014). In India, nonetheless, these billionaires often live in close proximity to the poorest people of the state.

Sometimes, this divide is visually represented, representing the stark difference between the richest and the most impoverished communities. Mukesh Ambani, the wealthiest man in the country, lives in a skyscraper with entire floors dedicated to pools, gardens, single-person apartments, and garages (Linge, 2018). Out of this lavish building, however, one can see one of the largest slums in the country, since the skyscraper is located in Mumbai, a city with the most apparent divide between classes. Here, the separation between the current conditions of the two communities becomes undeniable.

The introduced scholarly works show that these particular environments are exposed to corruption. Most importantly, they are unstable  while the rich currently propel some sectors of the economy, their relationship with the lower class creates disturbances which are bound to unbalance the economy and lead to devastation if not fixed. The scholars who propose mass education as a financial reform to reduce inequality do not deny that this change is not a universal solution of all economic problems of developing countries. At the same time, they suggest that learning can lead to many positive outcomes that will bring long-term effects.

Expected Outcomes

Based on the discussed research, one can formulate a number of results that may be expected of the country if it introduces policy changes. First of all, it is essential to note which particular reforms are proposed. Mass education is an initiative that will provide all people with school and university or professional education, and individuals will receive it regardless of their economic abilities.

This policy requires substantial amounts of financing which means that the countrys government should not wait for short-term successes. The budget of government support should be focused on schools in the regions where the majority of children and adolescents cannot afford education. As proposed by Kayet and Mondal (2015), increased support of rural states is vital for the results of this policy. According to Jerrim and Macmillan (2015), these territories are often ignored by governments especially if the latter work in the environment of economic inequality. The initiative includes resources for schools as well as people since the places of education should be equipped as well.

As one of the outcomes, India can expect an increasing number of highly-skilled professionals entering the market. The expansion of education will provide people with the ability to compete for stable jobs with higher income.

However, it does not mean that industries with unskilled labor will suffer from the lack of workers. One of the potential results of education is the change in production methods, as research-driven individuals are likely to reform the industry and provide technological advancements that will improve the state of labor instead of diminishing its importance. One should note that all studies suspect that education will also improve social mobility (Jerrim & Macmillan, 2015). This suggests that currently, disadvantaged people will be able to choose other professions and acquire more finances to satisfy personal needs.

Furthermore, the education of citizens may lead to changes in aspirations. Genicot and Ray (2017) find that people who have greater confidence in their future tend to design investment-driven goals. The authors also suggest that higher aspirations which may be expressed by rich people with a tendency to make reckless decisions lead to frustration. Thus, a contrast between stable growth and inequality is highlighted for long-term changes. Genicot and Ray (2017) use India as an example of a country with unequal aims and goals that are primarily reliant on social factors. Inequality is found to be an aspect that exacerbates peoples unsteady expectations. A policy of mass education for rural communities may combat these issues and provide people with focused aspirations.

It should be noted that India is making steps towards improving its access to education. However, rural territories still struggle with enrollment rates, and the funding of public facilities is not enough to provide the students with programs that are adjusted for contemporary problem-solving. Thus, the primary outcome of the proposed policy is expected to considerably change the state of rural communities and their rise in professionalism. As an outcome, a different labor force may come out of the change, and people may be more likely to engage in skill-improving education.

Implications for Future Research

The research, while employing the information from many academic sources, still does not cover the topic entirely. It is vital to acknowledge that the proposed policy change should be researched in order to find specific measures which would result in the most effective use of federal resources. In India, income inequality should be addressed from other points as well, including increased taxes for the wealthy and governmental regulations of businesses.

The studies of these propositions should also connect education to their results in order to see how the system of change may affect India in the long-term. Furthermore, it is necessary to include some considerations of Indian history into the following research. While the current paper talks briefly about the colonial past of the country, the effect of the British Empire that is strongly correlated to the economy and inequality of India is not discussed thoroughly.

Global trade and the impact of contemporary relations with Western countries should also be considered when assessing the ways in which India can alleviate its most pressing concerns. The cheap labor that some countries and local businesses utilize is affected by international ties and contracts that may also be reviewed in relation to the policy of the country. Overall, political considerations are another field of research that may yield many interesting findings that will support or upgrade the presented results.

Finally, the state of rural schools in India and its impact on the economic situation in these territories can be explored further, focusing on the inequality of genders as well as education. As noted above, the earnings gap found by Autor (2014) happened at the same time when a gender difference started becoming more apparent. In Indian schools, these two aspects are connected as well, especially in rural settings. The implications of a policy that addresses both socioeconomic characteristics and gender in education may propose some additional support for social change.

Conclusion

The state of the economy in India continues to be closely tied to the concept of the Billionaire Raj. Government regulation in the fields of business and tax is lacking which leads to inequality between the rich and the poor in the country. Currently, the richest 1% of the nation possesses more than 70% of the wealth. This divide is also apparent in economic research which warns about the adverse outcomes of such unstable growth.

While the general view of the Indian economy may suggest a positive change, a closer look reveal the growing issue of the rich increasing their incomes and the poor suffering from barriers to essential resources. Thus, some considerations for future change should include state policy and its possible effect on the income gap. The proposed framework views the current problem of inequality through the lens of opportunity, connecting mass education in rural regions with lowered rates of corruption. Moreover, it confirms that learning leads to high social mobility and industry reform.

The results of analyzing recent studies show the significance of acknowledging rural territories a