Category Archives: Urban and Regional Planning

Restaurant Business (RS) – A Management Studies Journal

The aim of Restaurant Business (RS) is the dissemination of insightful and original marketing knowledge. We welcome novel and ground-breaking contributions from a wide range of research traditions within the broad domain of marketing. Restaurant Business (RS) is not pre-disposed towards either empirical work or pure theory, nor towards one particular method or approach, we feel that any approach that helps to break new ground is welcome. We are Indian however we actively encourage global contributions, from scholars across the broad domain of marketing.

how to get published

Journal is indexed within Ebsco Database

Editorial Criteria

Restaurant Business (RS) will be an outlet for research that is:

  1. Based on rigorous, high quality scholarly work of global standards
  2. From a diverse range of methodological, philosophical and theoretical approaches
  3. Taken from theoretical conceptualization and appropriate research methodology
  4. Well written, clear, relevant and most importantly of interest to marketing practitioners as well as academicians

Restaurant Business (RS) will be particularly receptive to the development and testing of new theories and concepts to be brought into practise. We therefore will not generally be open to pure opinion although viewpoint and commentary articles are welcome where they can meet appropriate standards of rigour. Authors who wish to submit such articles are encouraged to contact the editors prior to commencing work. Restaurant Business (RS) is also receptive in principle to the submission of replication studies, where they are able to demonstrate a clear and substantive contribution to existing marketing knowledge and practise.

Unique Attributes

Restaurant Business (RS) aims to be a forum for the dissemination of high-quality scholarly research and thinking in marketing. Each paper submitted Restaurant Business (RS) will be subjected to a strict peer review process by practitioners and academicians.

Key Journal Audiences

  1. Marketing scholars
  2. Senior and middle marketing management
  3. Senior executives in distribution, market research and advertising


Restaurant Business (RS) is receptive to all areas of research which are relevant to research and new insight development in the field of Marketing, some examples are:

  1. Rural Marketing
  2. Importance of marketing to the bottom-of-the-pyramid
  3. Luxury marketing
  4. Sustainability and ethical issues in marketing
  5. Consumer behavior
  6. Advertising and branding issues
  7. Methodology of marketing research
  8. International and export marketing
  9. Services marketing
  10. New product development and innovation
  11. Retailing and distribution
  12. Macromarketing/micromarketing and societal issues
  13. Pricing and economic decision making in marketing
  14. Marketing models

Restaurant Business (RS) also welcomes articles which cross boundaries between these and other areas of marketing, and in particular multidisciplinary research which brings together various fields of study.

Restaurant Business (RS)  with ISSN 0097-8043 is multi-disciplinary journals for management studies, business, economics, ecommerce, finance, trade, banking, insurance, commerce, hospitality, tourism, planning, development studies and allied fields. The journal is open access and available electronically around the world.

Scopus Indexed Journal available at . Researchers can find the Restaurant Business (RS) Journal Journal Home Page with Issues and Archives at

UGC Approved Journal no. 10549 at RS is working for publication and promotion of research through throughout the world. Scholars are requested to submit papers for publication in Scopus Indexed and UGC Approved journal – Restaurant Business (RS)

Email to submit Papers for publication is 

Restaurant Business (RS)  with ISSN 0097-8043

Restaurant Business (RS)  with ISSN 0097-8043 which handle theoretical and empirical manuscripts can be found on our Journal Matrix. These editorial guidelines reflect the Academies’ policy with regard to reviewing theoretical and empirical manuscripts for publication and presentation in each of these affiliates. The primary criterion upon which manuscripts are judged is whether the research advances the discipline. The specific guidelines which are followed by referees is displayed on the following page. It shows the areas of evaluation to which each manuscript is subjected. Key points include currency, interest, and relevancy. Theoretical manuscripts are particularly vulnerable to problems in literature review. In order for theoretical research to advance a discipline, it must address the literature which exists in the discipline to support conclusions or models which extend knowledge and understanding. Consequently, referees for theoretical manuscripts pay particular attention to completeness of literature review and appropriateness of conclusions drawn from that review. Empirical manuscripts are particularly vulnerable to methodological problems. In order to advance the literature, empirical manuscripts must employ appropriate and effective sampling and statistical analysis techniques. However, empirical papers must also incorporate thorough literature reviews in order to advance the literature. Referees will pay close attention to the conclusions which are drawn from statistical analyses and their consistency with the literature. As the last question on the referee guidelines suggests, we ask referees to be as specific as possible in indicating what must be done to make a manuscript acceptable for journal publication. This embodies a primary objective of the Academy: to assist authors in the research process. Our Editorial Policy is one which is supportive, rather than critical. We encourage all authors who are not successful in a first attempt to rewrite the manuscript in accordance with the suggestions of the referees. We will be pleased to referee future versions and rewrites of manuscripts and work with authors in achieving their research goals.


Restaurant Business (RS)  with ISSN 0097-8043 is multi-disciplinary journals for management studies, business, economics, ecommerce, finance, trade, banking, insurance, commerce, hospitality, tourism, planning, development studies and allied fields. The journal is open access and available electronically around the world.

Scopus Indexed Journal available at . Researchers can find the Restaurant Business (RS) Journal Journal Home Page with Issues and Archives at

UGC Approved Journal no. 10549 at RS is working for publication and promotion of research through throughout the world. Scholars are requested to submit papers for publication in Scopus Indexed and UGC Approved journal – Restaurant Business (RS)

Email to submit Papers for publication is  

GIS Business (ISSN 1430-3663)


GIS Business (ISSN 1430-3663) provides an advanced forum for the science and technology of geographic information. GIS Business publishes regular research papers, reviews and communications. Our aim is to encourage scientists to publish their experimental and theoretical results in as much detail as possible. There is no restriction on the length of the papers. The full experimental details must be provided so that the results can be reproduced. There are, in addition, three unique features of this journal:

  • manuscripts regarding research proposals and research ideas will be particularly welcomed.
  • electronic files and software regarding the full details of the calculation and experimental procedure, if unable to be published in a normal way, can be deposited as supplementary material.
  • we also accept manuscripts communicating to a broader audience with regard to research projects financed with public funds.180614-F-XX999-0033


  • data collection and acquisition
  • data structures and algorithms
  • spatio-temporal databases
  • spatial analysis, data mining, and decision support systems
  • visualization theory and technology in real and virtual environments
  • cartography
  • location based services
  • uncertainty handling in spatial data
  • topology
  • geo-computation
  • geo-telematics
  • spatial information infrastructures
  • interoperability and open systems
  • applications of geoinformation technology (all possible domains)

MDPI Publication Ethics Statement

GIS Business is a member of the Committee on Publication Ethics (COPE). GIS Business takes the responsibility to enforce a rigorous peer-review together with strict ethical policies and standards to ensure to add high quality scientific works to the field of scholarly publication. Unfortunately, cases of plagiarism, data falsification, inappropriate authorship credit, and the like, do arise. GIS Business takes such publishing ethics issues very seriously and our editors are trained to proceed in such cases with a zero tolerance policy. To verify the originality of content submitted to our journals, we use iThenticate to check submissions against previous publications. GIS Business works with Publons to provide reviewers with credit for their work.

GIS Business with ISSN no. 1430-3663 is UGC Approved journal with J. no. 27917. Indexing and archives of GIS Business journal is at and Website of GIS Business is

Submit research papers for publication in this journal to 

GIS Busines is multi-disciplinary journal for remote sensing, gis, earth sceinces, geology, geography, urban planning, civil engineering, environmental sciences.

Process of intensification, its advantages & disadvantages!

Housing is one of the largest component of urban land use in the city, which determines well a city functions in near future. Land use planning is done for judicious use of land means judicious use of residential areas. Increase in population by natural growth or migration & increasing activities & facilities in cities have put tremendous pressure on urban land. Thus it becomes very important to utilize the scarce resource of land in a planned manner. This is one of the factors affecting land value.

Housing density is the measure of intensity of occupation of land compared to the total land area available within planning boundary. Density indices by themselves do not have any connection with the living conditions of the area but they do establish a distinct relationship between the people and the amount of land they need to attain a certain standard of living. The built form in the city is representatives of its progress and prosperity. While planning for residential areas it is equally important to focus on the transportation aspect as well. Having an efficient and working road network is vital. Presence of well-planned traffic island & Traffic Volume Count Study are basic steps which can be taken for better and manageable traffic movement.

Factors leading to Organic Intensification:

Social Aspects – Like changes in community structure, family structure & way of living.

Economic Aspects – factors like income, occupation pattern, affordability, expenditure pattern, cost factors & financial pattern

Locational Aspects – Along transport corridors, nearness to employment centers etc., which results in appreciation of property values.

Technological Aspects – Emergence of new building materials and new construction techniques. Awareness about the need of data collection, data processing cycle, methods of data processing & information processing cycle.

Legal Aspects – the different norms, standards, rules and regulations of various housing agencies.

The approaches for determining the residential densities have been changing over the time. The earlier approaches have been explained at the city level. But today, as more & more population started concentrating in the cities, the study outlook shifted from the city level to smaller levels – the sector or area level, which finally decides the overall density.

Urbanisation in world


Intensification:  Intensification occurs when an existing building, site or area within the existing urban area is developed or redeveloped at a density higher than what currently exists. This can occur through:

  • Redevelopment of sites, including the reuse of brownfield and greyfields sites;
  • Development of vacant and/or underutilized lots within previously developed areas;
  • Expansion or conversion of existing buildings, such as office buildings to residential

Buildings & the

  • Construction of new developments that combine a mix of uses for a more efficient use of land.

Expanding Cities and Urban growth

Process of Intensification: The process of intensification of residential areas is a dynamic process, which is a result of the changes in life cycles of the residents i.e., the changing needs, capacities/affordability and incomes of a household. There are two ways of intensification:

  • Incremental addition to the built form
  • Addition in the size of the household i.e., to accommodate more number of people.

This “progressive development” is a global process. The concept of incremental housing has now gone beyond its objective. There is a shift from the need of people to their greed.

Besides the “Organic Intensification”, which involves investment of individual resources & is a natural phenomenon/ a natural self-defined process leading to a differential growth rate, intensification can be done in a planned way with changes in development controls and policies.

Consequences of Unplanned / Organic Intensification:

Overcrowding – Increase in densities result in overcrowding, decrease in organized open space per person, thus congestion.

Environment & Services Deterioration – Stress on infrastructure & deterioration of environment.

Increase in Informal Housing Stock – including slums and unauthorized colonies.

Transformation in City Character – Loss of traditional housing stock, identity & image of urban form due to redevelopment.

Traffic Problems – Increasing volume of traffic, lack of parking space, and increase in built space.

Increase in Land Prices & Rent – There are various factors affecting land value, phenomenon of speculation leading to hike in land price & rents. Urban poor are most affected.

Advantages & Disadvantages of Planned Intensification / Redensification


Research carried out in Europe, the U.S.A and Australia has led to the advocacy of cities which are spatially compact, with a mix of uses. This urban model is claimed to have a number of benefits in comparison with more sprawling development. Compact cities are argued to offer opportunities to reduce fuel consumption for travelling as homes, work and leisure facilities are close together. They are also favored because urban land can be reused, while rural land beyond the urban edge is protected. A good quality of life is argued to be sustained, with high concentration of people providing social conditions conducive to vibrancy, liveliness and cultural production and consumption.

Various advantages of intensification as a result of urban planning:

  • Urban sprawl and related problems are controlled
  • Optimum utilization of urban land
  • Saves on land cost and development cost
  • Saves time- No land acquisition required
  • Less commuting for citizens and lesser fuel consumption
  • To develop satellite towns/ cities is 6 times more expensive than to reuse/ rejuvenate the existing one. Generation of funds to invest in infrastructure to address higher densities by involvement of public private partnerships.
  • Compact Neighborhoods have their own social life.

 Urban Pattern


The planner’s perception of intensification often contrast with that of the residents. The residents have a negative perception about intensification.

The differences in perceptions arise mainly because of the impacts identified by planners may not affect the local residents; for example, provision of housing and jobs for people outside the area. Planners tend to be much more positive about the potential of intensification. From their perspective, wider objectives are often achieved despite local problems identified by the residents. The strategic arguments for and against intensification often conflict with experience at local level.

The various disadvantages can be:

  • Upgrading can lead to loss of low cost units.
  • Subdivisions may cause loss of family housing.
  • Conversions / redevelopment may lead to loss of jobs. New jobs may not always be for local people.

Methods of Planned Intensification:

There are various methods in which intensification can be done in a planned way:

  • Increasing the available Floor Space:

            –   By increasing the coverage

            –   By increasing number of floors

  • Reducing the size of dwelling unit
  • Reducing the area under non-residential uses
  • High density development in vacant pockets
  • Faster development of partially developed areas


Experience from different countries / cities:

Planned Intensification:

Old visions of compartmentalization of cities result in inefficiencies & violations. Different elements of the city like land use, transport, ecology, and housing should not be addressed separately. It is important to understand the dynamics of the city and the market forces this framing regulations and bye laws accordingly. It becomes desirable to have higher FSI/FAR to encourage taller / larger building in the CBD area where property prices are higher.

Examples of Planned Cities:

Atlanta (U.S)

Population – about 2.5 million in 1990

Built Up area – of 4280 sqkm

Longest possible distance – 137 km

Barcelona (Spain)

Population –  about 2.5 million in 1990

Built Up area – of 162 sqkm

Longest possible distance – 37 km

This gives the manifold advantages like: Significant number of trips on foot or by bicycle; offices, schools, shops- all are close by; existence of strong community feeling.

Hong Kong’s new housing development has high densities of 3750 pph. It may not be ideal, but provide a much better living condition than the solid congested slums.

Bangalore: 290 inhabitants per hectare. The city is going American way i.e., its turning into a spread out city. It is impossible to promote metro due to the vast sprawl. The cost shall be prohibitive & the system if set will be a huge waste.

France, Netherlands & the U.K all have policies to encourage compact cities in the name of sustainability.

Author Bio:

Shubham Aggarwal (Founder, PlanningTank) is an Urban Planner from India working to improve the human settlements through the website. PlanningTank is the Urban, Regional, and Rural Planning Knowledge base which provides insight into to urban & rural areas, data processing & GIS.


Intensification of Residential Areas

Housing is the largest component of urban land use in the city, which determines the future living patterns. Judicious use of land means judicious use of residential areas. An ever growing population & increasing activities & facilities in cities have put tremendous pressure on urban land. Thus it becomes very important to utilize the scarce resource of land in a planned manner.

Housing density is the measure of intensity of occupation of land and one of the major component in land use plans made for land use planning. Density indices by themselves do not have any connection with the living conditions of the area but they do establish a distinct relationship between the people and the amount of land they need to attain a certain standard of living. The built form in the city is representatives of its progress and prosperity. Thus, it is an important tool for the physical planners.

Row development
Row development

Row development ( CC0 Public Domain image)

The approaches for determining the residential densities have been changing over the time. The earlier approaches have been explained at the city level. But today, as more & more population started concentrating in the cities, the study outlook shifted from the city level to smaller levels – the sector or area level, which finally decides the overall density. Walkability should also be kept in mind while planning.

Intensification:  Intensification occurs when an existing building, site or area within the existing urban area is developed or redeveloped at a density higher than what currently exists. This can occur through:

  • Redevelopment of sites, including the reuse of brownfield and greyfields sites;
  • Development of vacant and/or underutilized lots within previously developed areas;
  • Expansion or conversion of existing buildings, such as office buildings to residential

Buildings & the

  • Construction of new developments that combine a mix of uses for a more efficient use of land.
Development on greenfield
Development on greenfield

Development on greenfield ( CC0 Public Domain image)

Process of Intensification: The process of intensification of residential areas is a dynamic process, which is a result of the changes in life cycles of the residents i.e., the changing needs, capacities/affordability and incomes of a household. There are two ways of intensification:

  • Incremental addition to the built form
  • Addition in the size of the household i.e., to accommodate more number of people.

This “progressive development” is a global process. There is a shift from the need of people to their greed.

The process of intensification is a dynamic process. The unplanned intensification, beyond the carrying capacities of the area causes the problem. Both the planned and unplanned areas all over the world are undergoing illegal intensification without the augmentation of infrastructure to cater to the ever-increasing housing need. The increasing population density, dwelling unit density, plot density, FAR & area under plots, taken as the indicators of intensification, creates stress on infrastructure generating poor environment quality and living conditions for the residents.

The extent of intensification varies in various housing sub systems. The unauthorized colonies, a predominant subsystem, are growing denser. The Aerial photographs have shown a densification of over 70% between 1993 and 2002. The politicians claim, the residents have learnt to co-exist by sharing the available resources and are insisting on the process of regularization of colonies, wherein the colonies are bound to grow vertically, further adding the pressure. Today, the increasing land costs and housing demand have encouraged the residents of the planned colonies to subdivide their plots. Apartments are constructed on the plots deviating the prescribed bye-laws for residential development in the city. These increasing pressures on land raises tremendous problems for the planners to regulate the growth of the city and the carrying capacities remain un-augmented.

Author Bio:

Shubham Aggarwal, founder of PlanningTank is an Urban Planner from India working to improve the human settlements. PlanningTank is the Urban, Regional, and Rural Planning Knowledge base which provides insight into to urban and rural areas. It focuses on educating, engaging and developing the community.

Municipal own source revenue compliance and its potentiality (A study of financial management performance of Hetauda municipality in Nepal)


Shankar Prasad Upadhyay 

 Dr. Kamal Das Manandhar


The major portion of own source revenue of Hetauda municipality is tax. The main purposes of this research study are to expose the own sources revenue potentiality and analyze the municipal revenue compliance in Hetauda municipality. Both analytical and descriptive research designs were applied for the analysis of revenue potentiality and its compliance in Damak municipality. Random sampling method was used to select the municipality and same method was replicated to choose the respondents for questionnaire survey. Questionnaire Survey, Focus Group Discussion, and Key Informants Interview tools were used for data collection. Both the taxpayers and municipal policymaking advisors were the respondents of the study. Participants for focus group discussion and key informants for personal interview were selected purposively. Most of the taxpayers (i.e. 85.8 %) have paid municipal tax revenues and out of them, more than 39 percent taxpayers have paid the municipal tax below one thousand rupees per annum. The contribution of own source revenue to total revenue has been fluctuating over the period of ten years. From the view point of municipal policy making advisors, integrated property tax seems more potential  source of revenue in comparison to other own sources. Tax compliance is to some extent satisfactory. Tax revenue covers the main segment of municipal own source revenues. From the policymaking advisors’ perspective, there is significant correlation (0.669) between service delivery fee and service quality at the one percent level (2-tailed) which indicates that service delivery fee imposed by the municipality for sanitation service is substantially satisfactory.

 Key Words:  financial management, Municipal revenue compliance, Municipal tax revenue, Own source revenue, performance, Revenue potentiality

1. Introduction

The key tax revenue sources of municipalities are usually integrated property tax, house rent tax, house and land tax, vehicle tax, business/profession/enterprise tax, advertisement tax, and commercial video tax in Nepal. Similarly, the major nontax revenue sources are; municipal property rental charge, service fee/charge, building permit fee,  and vehicle parking charge, etc. (LSGA, 1999). Whatever revenue collection method is adopted the municipalities must be transparent and it should be tolerable to the taxpayers (Study Team, 2005). Decision pertaining to the local revenue administration is vital for municipal decision making advisors and decision makers. In general, revenues collected in municipalities are, classified into two categories: internal and external. Internal revenues are also commonly categorized into two types and they are tax and nontax revenues (Wegner, 2008).

Developmental challenges are felt more at local government sphere, because of its closeness to where people live. However, huge service delivery backlogs require the mobilization of all spheres of government to work together in an integrated manner within the spirit of co-operative government. No single sphere of government can fulfill this role and mandate by working alone in isolation. (Tsatsire, 2008). The Government of Nepal has affirmative feelings on the increasing efficiency in service delivery, but it is hindered by several aspects, including lack of regular monitoring of performance and sound procurement plans, nonperformance of competitive tendering and lack of performance auditing as well. Unnecessary stress of expenditures toward the end of the fiscal year is the main reason of these factors (Ministry of Finance, 2008). For the local government benefit principle of taxation is more appropriate and for the central government ability to pay principle is suitable. But, the ground reality in developing countries, like Nepal, is vast difference. There are only a few tax bases in practice. Consequently, the municipality has become very weak to administer the tax. Actually, municipal taxes or fees are paid as a charge for the benefits obtained from the services. Therefore, benefit principle becomes workable only when benefit from local services can be approximately identified (Shrestha, 2009). The central government’s role is mainly regulatory, i.e., requiring the local government level to follow procurement regulations when purchasing transport services. It also plays a financial role by giving grants to the local government (Hansson, 2010).

Rewarding tax payers, positive peer attitude, offering a prize for best taxpayers and aim of low profits etc. are the encouraging factors of municipal revenue compliance. Likewise, inability to be aware of tax laws or insufficient tax education programmes, high rates of tax and non tax revenues, unfairness or chances of misuse of revenues, and complex tax administration procedures, etc. are the probable factors of noncompliance of revenue (Mumumba Omweri Marti, 2010). Especially in developing countries like Nepal, many researches are performed on taxpayers’ attitude towards municipality and the effect of individual interest on tax fraud as well as on other factors influencing tax compliance behavior (James O Alabede, 2011). The fiscal exchange theory of public finance hints that the existence of government expenditures may encourage compliance and the governments can boost compliance by making available goods or services that municipal people demand more efficiently. According to the political legitimacy theory, it is shaped by the degree to which citizens believe the municipality. In conclusion, we come across some indications that tax knowledge and awareness have a significant impression on revenue compliance point of view (Merima Ali, 2013). Tax source is an important own source revenues of municipalities. Both the benefit principle and ability to pay principle of taxation are the basic philosophies (BSBA, 2013). Revenue compliance is related to taxpayer’s perceptions of value for money and fairness in the sub-national revenue system and that appropriate enforcement can be productive (Smoke, 2013). Local revenue collection strategies are varied from municipalities to municipalities. But method of revenue collection unanimously, is an important decision for each municipality. Collection through contractors or public private partnership (PPP) model and direct collection by municipalities themselves are common methods. Whatever may be the methods of revenue collection both accountability and cost effectiveness are most considerable factors for taxpayers and municipalities themselves as well.

The main aims of the present study are to analyze the municipal own source revenue compliance and to explore its potentiality in Hetauda municipality in Nepal.

2. Review of Literature

2.1 Financial Management Performance

Generally, financial management performance depends on overall management performance of any organization.  Qualified personnel and their attitude, working environment, job satisfaction, managerial ability, nature of organization, management of resources, institutional capability etc. are the basic indicators of good management. The implementation of change and performance management, financial management and fiscal decentralization would be impossible if proper qualified staff were not provided to deal with these many complicated issues (Mughees Ahmed, 2012). Apart from accessing money, the effective management of financial resources has been indicated in this empirical study as well as in literature to be one of the primary challenges for municipalities. Municipal financial divisions firstly need to be staffed with the most suitable people. This means at management level as well as operational level. In addition to having suitable staff, any deviation from sound financial management practices should be avoided and in the case of its occurrence, be addressed as a matter of urgency. The issue of human resources is critical to the success of managing municipalities effectively (Plessis, 2013). Qualified and motivated staff are essential for the management of municipal finance efficiently.

2.2 Problems of Revenue Compliance

Many taxpayers pay little attention to tax matters and may not even view tax evasion as an ethical issue. Similarly, the ethical values of them may be much more tempered by situational requirements than unrealistic anticipation (Philip M.J. Reckers D. L., 1994).  Local governments have been able to played important roles in public service delivery and regional development as an integrated part of the overall government, even if not as completely self-contained and self-governing bodies (Kitayama, 2001). In most developing countries, budget execution and accounting processes are either manual or supported by very old and inadequately maintained software applications. This has had toxic effects on the performance of their municipal expenditure management systems, that are often not adequately appreciated (Khemani, 2006, p. 2). The type of government system appears to matter in the propensity to engage in corruption. The literature makes clear that the causes of corruption tend to be complex, but corruption thrives in the developing world because of the prevalence of weak public institutions, low levels of education attained by the majority of citizens, and the presence of an underdeveloped civil society. (Prier, 2007, p. 76). We have so many anxieties on the subject of the management of municipal finance in Nepal. Nepal government and Udle/GTZ (development partner agency for local governments of Nepal) have clearly stated (MLD, udle/GTZ, 2008) that there is no clear transparency for what the levied taxes are utilized. The taxpayers want to have better services for its taxes, but often they are not delivered by the municipal administration. Inter -agency coordination, conflicting laws, cartelling / syndicating of interest groups, low administrative efficiency, negatively motivated local staff, low tax effort, low effort on transparency (dissemination and mass communication), political instability, non tax compliance, and non- feasible local revenue sources are the major revenue mobilization problems (Nepal Government, 2010). Lack of well defined mission and comprehensive functional role, lack of proper structure for the development process, and low quality of staff are also the reasons of ineffectiveness of municipal administration (Adams, 2012, pp. 4-13). Regarding the measurement, explanation and control of tax evasion, we still need to fulfill many gaps in our understanding although we might have learned so many matters of finance and taxation. (Alm, 2012). A challenge for a study of taxpayer attitude is a lack of reliable data due to an individual’s reluctance to reveal one’s own non-compliance. (Merima Ali, 2013, p. 5).

2.3. Revenue Compliance in Nepal: Policy Perspective

Pertaining to the noncompliance of municipal tax by the citizen, Nepal government has made the provision under the Section 260 of Nepalese Local Self Governance Act (1999) that if any person does not pay any tax, duty or charge levied or contracted or any other amount due and payable to the local bodies, it shall be recovered by the District Administration Office as government dues. Likewise the government has mentioned the provision under the sub section 2(a &b) and 4 of section 165 of Nepalese Local Self Governance Act (1999) that if any one does not pay the taxes, fees, charges, tariffs contracted or imposed by the Municipality and any other amount due and payable to it, the municipality may take actions. Besides the provisions stated in the section 59 of Local Bodies Resource Mobilization and Management Manual (2012) issued by the Nepal Government, the local bodies have to fulfill all the conditions of budget authority, circulars and directions issued from the concerned ministries, and the provisions of minimum conditions and performance measures (MCPM) manual (MoFALD, 2012).

The Department of Revenue Investigation of Nepal has set the preventive module for revenue compliance. The preventive strategy includes compliance of the acts and rules, mobilization of flying and emergency squad, adherence of code of conduct of investigation officials, issuance of guidelines and orders, use of information technology etc. (Nepal Government , 2014).

2.4 Municipal Revenue Potentiality

Internal sources of revenue are more stable and consistent than external sources. External sources of revenue are less reliable source of financing because of wide fluctuation in nature. These sources, therefore, should have the supplementary in municipal financing. Municipalities must be authorized to expand their internal revenue base and modify the tax rate according to local situation so that they can collect adequate revenue to meet their financial needs (Thapa, 2004, p. 4). So far the static revenue collection trend of integrated property tax does not mean that the tax potential is already achieved. For instance, the incorporation of integrated property tax into the total revenue of municipalities was 8% in the FY 2005/06. In addition, governments should strive for high collection rates for all revenues owed and keep the payment-making process simple and easy for citizens (Larson, 2007, p. 34). The Government of Sri Lanka has perceived seriously regarding revenue manuals and revenue surveys to identify information about current and potential revenue sources that can help local officials keep taxes, fees and charges at levels intended by policymakers (Ministry of Local Government and Provincial Councils, 2008, p. 36).  Revenue compliance is the support of municipal people or prospective taxpayers to the revenue programs execution. It has always been an important issue in revenue administration for choosing the system of compliance that best serves the implementation of revenue policy. The knowledge for local governments about operation of an efficient tax administration is essential for local revenue improvement. In deciding the extent of compliance the determinant factor is information collection mechanism, a key consideration is relationship and trust with the taxpayers at the local level and monitoring. Clearly, individual taxpayers’ rights appear of greater importance. Potential harassment of taxpayers is also of an anxiety (MLD, 2010).

For increasing revenue compliance, municipalities must ensure that their job descriptions, competency requirements, advertisements, selection criteria and appointments are associated with the requirements set out in the regulations. (National Treasury Republic of South Africa, 2011). Municipalities are fully responsible for formulating and executing local or municipal policies and programmes in partnership with other local governance performers and they have substantial roles in bringing local actors together to form a common vision of how to take action to issues raised in a coordinated way (MLD, 2012). Nepalese municipalities still have a revenue potential increase of almost 60%. It is the fact that there is high resistance of taxpayers and integrated property tax in many municipalities is not full-fledged.  Missing revaluations of tax rates and the potential of integrated property tax in Nepal is quite obvious. The high taxpayer resistance is based on the mistrust against the local administration (MLD, udle/GTZ, 2008, p. 9). Tax compliance is obviously critical for effective municipal revenue generation. There is limited empirical evidence, but available analysis indicates that compliance can be improved or deteriorated under decentralization. The effect seems to depend on economic conditions, citizen attitudes about municipalities, and differences in municipal or local bodies’ political dynamics, including the willingness and ability of municipalities to administer the tax code (Smoke, 2013 ). So many researches are required for moderating effect of risk preference on relationship between taxpayer’s attitude towards tax evasion and his/her compliance behavior to check the consistency of the results produced by this study on this moderator. (James O. Alabedi, 2013).

The main sources of own revenue for municipalities are usually property taxes, business licenses, market fees and various user charges. They have the potential to provide substantial and reliable revenue if well administered, but in practice all have serious drawbacks (ICTD, 2013).

  1. Research Area, Design and Methodology

3.1 Research Area

Hetauda is a municipality and district administrative headquarter of Makawanpur and has been an industrial district for the last forty years. It is situated in the central southern part of Nepal through which east-west highway from Mechi to Mahakali and north-south road linked with capital city Kathmandu to Raksaul (India) is crossed. As stated in the population monograph report of CBS, Hetauda municipality is inhabited by nearly 84 thousand 6 hundred 71 people (CBS,Nepal, 2014).

( Figure – 1, Map of Makawanpur District, Source: NeKSAPInfo, 2013)

3.2 Research Design and Methodologies

In Nepal, the formation processes of Metropolitan and Sub- metropolitan cities are different than municipalities. Only fifty three municipalities are the population of the study out of fifty eight. Four sub- metropolitan cities and one metropolitan city (Kathmandu) are not able to be representative samples of all the municipalities. So, the study excluded these big five from the study population. In this study, non-probability sampling technique was applied for the selection of municipality and Hetauda municipality was selected as a sample from the Central Development Region (Hill Ecological Belt) of Nepal. Analytical and descriptive research design has been adopted to analyze the compliance of municipal own source revenues and to find its potentiality in Hetauda Municipality.

Municipal taxpayers and policy making advisors were the respondents of the study and they were selected in random basis. In total, 34 samples were taken from municipal policy-making  advisors including several local political party members, CCI (Chamber of Commerce and Industries) members, civil society members, and others  and 134 samples were taken from municipal taxpayers (business, agriculture, and service sectors) in Hetauda municipality.

A 5- point Likert Scale and dichotomous self administered questionnaires were developed. A total of 221 questionnaire forms (170 of taxpayers and 51 of policy making advisors) were used, out of which 189 (148 of taxpayers and 41 of policy making advisors) were effectively returned from the respondents. The successful questionnaire return rate of both the taxpayers and municipal policymaking advisors was 85.52 percent. Sixteen (12 of taxpayers and 4 of policy making advisors) questionnaires were incomplete out of the successful returns. On the basis of first come first response, only 168 questionnaires (134 questionnaires of taxpayers and 34 questionnaires of policy making advisors) were authorized for the research study purpose out of 173 properly answered questionnaire forms.

A cross sectional method of survey was applied for collection of primary data and secondary information were obtained from Hetauda municipality, MoFALD ( Ministry of Federal Affairs and Local Development), District Development Committee (DDC) Makawanpur, Urban Development Through Local Efforts (udle/GTZ) and Local Bodies’ Fiscal Commission of Nepal. Relevant articles, journals, books, as well as published and unpublished materials and performance of the associated organizations working with municipalities were accepted for the macro analysis of the research. For the analysis of secondary data, various analytical tables have been set up and different analytical tools of statistics including SPSS-20 software have been used for the analysis of primary data.

This research study has been limited to Hetauda municipality because of time and cost constraints.  So, the results concluded from the primary and secondary data taken from the municipality may not be representative to all classes of municipalities (i.e. Metropolitan and Sub-metropolitan Cities) in Nepal.

  1. Results

There were total 168 respondents (134 municipal taxpayers and 34 municipal policy advisors), among them 71.5 percent respondents were male and female respondents were 28.5 percent. Out of 34 municipal policy advisors, thirty one (more than 90%) persons were males. Out of them, 19 respondents (55.90%) were local political party members, 8 respondents (23.52%) were CCI Members, and 7 respondents (20.58%) were civil society members and others. Likewise, more than 57 percent taxpayer respondents were engaged in business activities and about 9 percent taxpayer respondents were involved in agriculture sector. Similarly, about 34 percent taxpayer respondents were involved in government and non government services. Both types of respondents’ views have been collected to analyze the municipal tax compliance and to find out the potentiality of own sources revenue of Damak municipality. On the basis of questionnaire survey conducted in February to May 2014, the scenario of municipal tax compliance, potentiality of revenue, and expressed reasons for non compliance municipal revenues are presented and

past 10 fiscal years. Among them, house rent tax has the highest growth rate (i.e. 34.19%) during the study period. In the same way, integrated property tax (IPT)/house land tax has lowest (11.03 %) growth rate in the same period. In comparison to the collection amount, the performance of integrated property tax (IPT) is far better than other tax and nontax revenues. Likewise, building permit fee is the second largest own revenue source of Hetauda municipality during the study

municipality. In an average, the salary expense has increased 11.01 percent in the study period.  Likewise, both the administrative expenditure and total expenditure have increased 10.56 percent  and 27.21percent respectively. The growth rate of salary expenditure indicates that the growth of other administrative expenditure is lower than salary expenditure which indicates that either Hetauda municipality has been suffering from overstaffing or exercising to reduce overheads.

Figure: 1(Financial management performance Analysis)

( Fiscal Year 2003/004 to 2012/013)

(Source: Annual Reports of Ten Fiscal Years of Hetauda Municipality Office)

Above figure (Figure: 1) illustrates the financial management performance of Hetauda municipality in the fiscal year 2003/004 to 2012/013. The average grant receipt performance is more than 64.47 percent, whereas average own source revenue receipt performance is only 5.98 percent. The average total revenue receipt performance and the average administrative performance are   21.31 percent and 10.56 percent respectively. The performance of administrative expenditure is nearly double than own source revenue collection performance. It signifies that Hetauda municipality should to increase revenue administration power to cope with administrative e

The above table (Table: 3) depicts that 33.6 percent taxpayers of Hetauda municipality have paid municipal taxes below than Rs.1000/- per year. Out of 134 taxpayers, 19 taxpayers have not paid the municipal tax by showing various causes. Besides these spoken or latent causes, the municipal policy making advisors and tax payers have expressed the possible reasons of evasion of tax and non tax revenues.

The following figure (Figure: 2) presents the reasons of municipal tax evasion by the potential taxpayers. Out of 19 non taxpayers, 7 non taxpayers (36.8%) have not paid the tax in Hetauda municipality by showing the cause of lack of information.  Furthermore, 4 municipal people (21.1%)  have not paid the tax  by considering  municipal tax is secondary tax.  High tax rate, chances of tax rebate in future and inability are the reasons for tax evasion as expressed by the 8 citizens of Hetauda municipality.

The above figure (Figure: 3) displays the major own source revenue potentiality in Hetauda municipality. All the tax and nontax revenues are potential sources in Hetauda municipality from the view point of taxpayers. Comparatively, business/ profession tax is more potential.

Figure: 4    (Policymakers Views on Potentiality of Major Own Source Revenue)(Sources: Field Survey Report, 2014)

The above figure (Figure: 4) depicts the degree of potentiality of major own sources of revenue from the view point of municipal policy making advisors. Integrated property tax is highly potential revenue source of Hetauda municipality from the policy perspective. Similarly, service fee and building permit fee are potential sources of revenue.

Figure: 5

Service Quality (Comparative Views)

(Source: Field Survey Report, 2014)

The above figure (Figure: 5) shows that the comparative views of taxpayers and municipal policymaking advisors on municipal service quality. From view point taxpayers and municipal policymaking advisors, municipal service quality is moderate and strong respectively in Hetauda municipality. It indicates that they have not similar observations on municipal service quality.

Figure: 6 ( Comparative Views on Municipal Service Delivery Fee)

(Source: Field Survey Report, 2014)

The above figure (Figure: 6) reveals the integrated views of taxpayers and municipal policymaking advisors on service delivery fees levied by Hetauda municipality. From the view point of taxpayers and municipal policymaking advisors, municipal service delivery fee is partially satisfactory and satisfactory respectively in Hetauda municipality. It signifies that they have different feelings on service delivery fees imposed by the municipality. From the policymaking advisors’ perspective, there is significant correlation (0.669) between service delivery fee and service quality at the one percent level (2-tailed).

  1. Discussion

The average growth rate of house and land tax/integrated property tax -IPT is 11.03% in the fiscal year 2012/013 to 2003/004.  In comparison to the collection amount, the performance of integrated property tax is far better than other tax and nontax revenues. Likewise, building permit fee is the second largest own revenue source of Hetauda municipality during the study period. Therefore, Hetauda municipality should to set further strategies primarily for the collection of integrated property tax and building permit fee efficiently, and other potential revenue sources.

The growth rate of total administrative expenditures is lowest than the growth rate of salary expenditure (i.e. 10.56 % < 11.01%).  Likewise, the growth rate of development expenditure (social program and capital expenditure) is higher than the growth rate of administrative expenditures of Hetauda municipality during the study period.

The performance regarding the different types of central grants is more than 64 percent, whereas own source revenue performance is about 6 percent. The average total revenue performance and the average administrative expenditure performance are 21.31 percent and 10.56 percent respectively. According to the report of  udle/GTZ, the performance of own source revenue to total revenue of the fiscal year 2006/07 in Hetauda municipality was only 28.54 percent which was much lower than set standard i.e.60 percent (udle/GTZ, 2008). It signifies that Hetauda municipality has to make additional plan to reduce the performance gap.

19 respondents (14.2%), out of 134 have not paid the municipal tax by showing various causes.

Out of 19 non taxpayers, 7 non taxpayers have not paid the tax in Hetauda municipality by showing the cause of lack of information.  Furthermore, 4 municipal people have not paid the tax by considering municipal tax is secondary tax.  High tax rate, chances of tax rebate in future and inability are the reasons for tax evasion as expressed by the 8 repondents/citizens of Hetauda municipality. The results indicate that individual moral beliefs are highly significant in tax compliance decisions (Philip M.J. Reckers D. L., 1994)

All the tax and nontax revenues are potential sources in Hetauda municipality from the view point of taxpayers. Comparatively, business/ profession tax is more potential. Integrated property tax is highly potential revenue source of Hetauda municipality from the policy perspective. Similarly, service fee and building permit fee are potential sources of revenue. Property tax is at present and will most likely continue to be an important source of revenue in urban councils (Fjeldstad, 2000). House and land tax is the second largest revenue source of all the municipalities of Nepal (Silwal, 2012). It can be hypothesized that the tax revenues will be spent more in accordance with taxpayers’ preference, which in turn increases tax morale (Schneider, 2006). When taxpayers get feedback from their governments in connection with the use to which their taxes are put, their voluntary compliance levels may increase as a result (Adafula, 2013, Sep 19)

From view point taxpayers and municipal policymaking advisors, municipal service quality is moderate and strong respectively.  It indicates that they have not similar observations on municipal service quality. Likewise, from view point taxpayers and municipal policymaking advisors, municipal service delivery fee is partially satisfactory and satisfactory respectively in Hetauda municipality. It signifies that they have different feelings on service delivery fees imposed by the municipality.

6. Conclusion and Recommendations

Tax revenue wraps the major portion of own source revenues of Hetauda municipality. This study recaps that the potentiality of municipal own source revenue and its compliance are different matters. About forty percent taxpayers of Hetauda municipality have paid minimum amount of tax ( i.e less than Rs.1000/- per annum), which indicates that either the tax administration power is low or there is lack of tax education and revenue mobilization plan. To some extent, revenue compliance is satisfactory even though the rate is minimal. The expectation of the most non taxpayers is that there is probability of tax rebate by the municipality in future, which clearly shows that the municipality has worked out such type of policies in the past.

Integrated property tax is highly potential own source revenue and business/enterprise tax, house rent tax, building permit fee and service charge are potential own source revenues of Hetauda municipality. The contribution of tax revenue to the own source revenue and the total revenue is not consistent within the study period. Municipal service quality is moderate and likely to be strong and service delivery fee for municipal services is partially satisfactory in Hetauda municipality from the view point of taxpayers.

On the basis of the above conclusions, the study recommends the following:

  1. Solidarity on potential local revenue collection with revenue mobilization plan and the municipal tax compliance campaign should be carried out parallel.
  2. Municipal tax and nontax revenue education programme should be launched effectively.
  3. Tax administration power should be enhanced.
  4. Tax rate should be reworked regularly

7. Acknowledgement

I am grateful to the Prof. Dr. Kamal Das Manandhar for his regular support and guidance to me. I also thank to the lecturers of Makawanpur Multiple Campus Hetauda, Mr. Sangam Chaulagain, Bhaskar Chandra Adhikari and Mr. Yam Bahadur Silwal for their gracious support.  Also I am thankful to Mr. Pashupati Babu Puri (Executive Officer, Hetauda Municipality) and all the respondents for their amiable cooperation.


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The Study on Influence of Psychological and Socio Cultural Factor on the Share Market Operations. Reference to Batticaloa District, Eastern Province, Sri Lanka.


Stock market is an important part of the economy of a country. The stock market plays a pivotal role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. That is the reason why, the government, industry and even the central banks of the country keep a close watch on the happenings of the stock market. The stock market is important from both the industry’s point of view as well as the investor’s point of view.

This study focuses the influence of psychological and socio cultural factors to implement on stock market in Batticaloa District in the Eastern part of Sri Lanka. This study was conducted with two research objectives: to find out the degree of psychological characteristics of potential investors regarding the stock exchange and to evaluate the level of support of socio culture environment to implement in share market.Self motivation, perception and attitude is the dimension of identifying the psychological characteristics. Social culture factors are including language skill, brokers support and culture support to mature the socio culture supportive.The study was conducted among the potential investors reside in the various part of the Batticaloa District. The data were collected from the 100 sample of people. The proportionate stratified random sampling method was used to select the sampling units and the structured questionnaire was used to collect the data. The data were analyzed using Univariate Analysis and Bivariate analysis techniques. The unit of analysis was individual person.

Finding of the study revealed that respondents (potential investors) were moderate level supportive to implement the stock exchange as indicated by the degree (measured as mean value) of their psychological characteristics (Self motivation 3.5), perception (3.4), and attitude (3.4). Socio cultural environment (3.17) was moderate level influence. In overall this study was find out moderate level supportive to implement the stock exchange in Batticaloa.

Keywords: Investment, Psychology, Stock Exchange, Investor, and Socio Culture Environment




An island nation situated at the Southern tip of India, Sri Lanka is often referred to as the Pearl of the Indian Ocean. With the end of a bitter three decade long civil conflict, the country is taking advantage of new found peace and stability and growing economic prosperity to make its mark as a global logistics center.

Increased political stability is laying the way for strong growth on investment as the Government formulates long term robust development plans to drive economy wide sustainable growth.

Our nation is developing nation and agricultural one for hundred years due to our capability of resources, gain knowledge and technology requirements even we greater than some nations. If we want to become leading one we should change our habits of investment.

Eastern province is a one of the nine provinces in Sri Lanka. The Batticaloa is a one of the district in Eastern Province. Our society based on knowledge income and saving has an essential role and making the most valuable effects by using financial system at an economic entity level.

The fundamental factors such as economy, industry and company analysis play a key role in investment decision process. In earlier there are few ways to invest their money for more money such as purchasing land and gold, invest in education and business ,life insurance, bank deposit share market etc.. But now there are twenty sectors for investment in stock exchange. Each and every sector is important to develop the nation.

The word Investment refers to the deployment of surplus funds either in the financial assets or in the physical assets with the expectation of getting an optimum return in future. R.Jayaraman, Dr.G.Vasanthi, M.S.Ramaratnam, (JBM&SSR Volume 3 ,2014).

These are under the stock exchange there are twenty sector to invest the money which is functioning under the capital market. First we understand the capital market. The Financial Market, which is the market for credit and capital, can be divided into the Money Market and the Capital Market. The Money Market is the market for short-term interest- bearing assets with maturities of less than one year, such as Treasury bills, commercial paper, and certificates of deposits. The major task of the Money Market is to facilitate the liquidity management in the economy. The main issuers in the Money Market are the Government, banks and private companies, while the main investors are banks, insurance companies and pension and provident funds. The Capital Market is the market for trading in assets for maturities of greater than one year, such as Treasury bonds, private debt securities (bonds and debentures) and equities (shares). The main purpose of the Capital Market is to facilitate the raising of long-term funds. The main issuers in the Capital Market are the Government, banks and private companies, while the main investors are pension and provident funds and insurance companies.

 The Financial Market can be also be classified according to instruments, such as the debt market and the equity market. The debt market is also known as the Fixed Income Securities Market and its segments are the Government Securities Market (Treasury bills and bonds) and the Private Debt Securities Market (commercial paper, private bonds and debentures). Another distinction can also be drawn between primary and secondary markets. The Primary Market is the market for new issues of shares and debt securities, while the Secondary Market is the market in which existing securities are traded. (

Investment, first of all we will learn here that what Investment is? Is Investment just a money or capital? Is Investment just a part of your salary or Income? We will answer all these questions in a single line that Investment is that part of your money whose nominal value increases along with the inflation or time to increase its real value. We will learn some benefits of investing which you must know before investing in stock market.

The part of money which you park in some avenues like Bank Deposits, Real Estate, Jewellery or Stock Market to get some return on that capital in future is also known as Investing or Investment.

There are many Instruments of Stock Market called Securities like Shares, Bonds, Debentures etc. and this stock market have its own benefits in his own way for every person who invest in stock market. We will discuss here the advantages and the benefits of investing in Stock Market which you must know before Investing in stock market.

Easy Liquidity: It is the very first benefits of investing, In stock market shares and securities are traded in very high volume which make it a volatile market so there is very easy liquidity in stock market, like if you want to turn your investment in stock market into cash then you can do that very easily. Flexibility: Investing in stock market is very flexible like the market has ups and downs in prices at every trade session, price of stock market moves with the rapidity and flexibility of this market.

Regulatory Framework: Stock Market works under some regulatory framework to protect and safeguard all its investors. For example: In Sri Lanka the Securities and Exchange Commission (SEC) works as a Regulatory Framework Body to safeguard all investors. Maximum Returns: According to the long term perspective it is found that Investing in Stock Market gives maximum returns. For example:

Business Taste: Well, According to me it is the best benefits of investing in stock market you can ever have, here from Business Taste I mean that when a person trades or invest in stock market everything is here works like a business a modern style business. Sole Proprietorship: If you invest in stock market then you are starting your own business where your investment is your capital, like the more your trade is in profit the more your business grows and you are the only person to run this business that is why investing in stock market is your sole proprietorship business.

While in the midst of important transformation to an industrialized economy, its traditional stronghold in the service industry is growing with simultaneous speed. The change in the mindset of the investor’s leads to change in the trend of investment ways. The investor’s sentiment may either be optimistic or pessimistic. The people sentiment and socio culture sentiment are complimentary to each other. Any change in social change lead to a substantial change in the investor’s behavior similarly any change in the investors’ sentiment leads to a substantial change for social culture environment.

At presently telecommunication, bank and industry and food & beverage sectors are very popular one in the capital market and several advantages on investing shares even in the Batticaloa district still there is so many traditional ways are following by the people on investment. Here share investment way is infancy investment way. It should be encourage due to globalization and survive in future change.

Therefore, I have intended to study the influence of social and psychological factors on implement in share Market in Batticaloa District.


The Sri Lankan share market continues to shine as one of the best performing ones. According to Bloomberg news service in 2009.CSE is one of the most modern stock exchange in South Asia a fully automated trading platform and market capitalization of over US$ 23 billion, it has been one of the best performing stock market in the world, with average daily turnover US$ 18 million.

Batticaloa is one of the districts in Sri Lanka, Still now Stock Exchange did not located in Eastern Province. There are huge amount of lands, higher education institutes, big amount of population who are knowledgeable and so many financial institutions.

If the stock exchange will be establish in Batticaloa district, that gives great investment opportunity to public and it will lead to economic development.

Therefore this present study aims to find out the influence of psychological and socio culture environment to establish the stock market in Batticaloa district.

  2. What is the degree of psychological characteristic of potential investors in stock exchange?
  3. To what extent the socio culture environment is favorable to implement in the stock exchange?


  1. To find out the degree of psychological characteristic to implement in Stock Exchange.
  2. To evaluate the level of favorable of Socio Culture environment to implement in stock exchange.

This research is possible to study level influence of psychological and Socio culture factors to implement the share market, based on gender, education, ethnic group, designation, monthly income level, and investors’ behavior of particular people who are living in Batticalo district.

Therefore the researchers have scope of this study to the Batticaloa district and also selected 100 people which use in proportionate stratified random sample size in Divisional Secretariat Divisions in Batticaloa district to carry out this research study.




Psychological Characteristic

Investors are normally assumed to make their financial decisions rationally according to classical economic theories but some novice investors make unsuitable investment decisions based on irrational exuberance (Ricciardi, 2008).

The investor sentiment is primarily based on investor’s psychology. Individual expectation, Individual optimism, individual ability and individual confidence are the four major psychological components of investor sentiments. On other words the investors sentiments are run by individual expectation, individual optimism, individual ability and individual confidence (R.Jayaraman,Dr.G.Vasanthi.M.S.Ramaratnam, JBM&SSR 2014)

Psychological factors operating within individual partly determine people’s general behavior and thus influence their behavior as consumer. Primary psychological influence their behavior as consumer are perception, motives, learning, attitudes and personality and self concept. Even though these psychological factors operate internally, they are also very much affected by social factors outside the individual. (Pride M Ferrell .O. C, 2006)

Emotional development of children and is part of developmental psychology, the study of changes in behavior that occur through the life span. Cognitive psychology deals with how the human mind receives and interprets impressions and ideas. Social psychological looks at how the actions of others influence the behavior of an individual.


The persons buying choices are also influenced by four major psychological factors motivation, perception, learning, and beliefs and attitudes. (Philip Kottel, 2005)

Consumer attitudes are composite of a consumer’s beliefs about feelings ,about behavioral intentions towards some “object “ – within the context of marketing , usually a brand, product category, or retail store. These components are viewed together since they are highly interdependent and together represent forces that influence how the consumers will react to the object.

 Consumer attitude are considered by many marketers to be accurate predictors of consumer behavior, making the study of attitude formation and change an important topic. Attitudes are learned tendencies to perceive and act in a consistent way toward a given objective or idea, such as a product, services, brand, company, store or spoke person. This definition emphasizes the impact on attitude of several of other concepts.

The attitude is a person’s enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward some object or idea. People have attitudes towards almost everything: religion, politics, clothing, music and foods. Attitudes put people into a frame of mind: liking and disliking an objects, moving towards or away from it (Phillip Kottler

Socio Culture Environment

According to Kottler views culture factors exert the broadest and deepest influences on consumer behavior. Culture, subculture and social class, reference group, family and social roles and particularly important in buying behavior.


Sample of the Study


The total population for the study was in Batticaloa district people. There are 100 people were  selected who are resident of Divisional Secretariat division in Batticaloa District (100%) as sample by using stratified random sampling method.

Data Collection Method

In considering objectives it was a cross – sectional one in the time horizon because data were collected in a one single time from the respondents but the unit of analysis was the people of the selected area in the Batticaloa district.

The questionnaire is a structure technique for data collection. The primary data were collected through questionnaires and interviews from the respondents. The questionnaire developed based on three parts, namely research information, personal information and investor’s behavior. In this research questionnaire is closed ended. In general closed questions are considered as more efficient and reliable than open ended questions. In the research one of the ordinal measures called “Likert’s five points rating scale” is used to require respondents to order their answers.

  1. Methods of Data Analysis

Data Presentation and Analysis

The data were analyzed by using univariate analysis and bivariate analysis techniques. In this case, the unit of analysis was individual person of selected area in Batticaloa district.

Method of Data Evaluation

Each variable is given a scale from 1-5 to show the extent of agreement, based on responses, univariate measures were calculated for each of variables. The mean value is lying in the range of 1-5. The range is explore the particular result of this study the range between 1 and 0.25 is express the low level influence for this study. The range between 2.5 and 3.5 is assumed moderate level influence on this study. The range above 3.5 to 5 is considered high level influence on this study. This decision rule is used to measure the level of influence. It shown in the table.

  1. Implication and conclusion

Psychological characteristic of people on Share Market operations in Batticaloa district.

Psychological Characteristic variable with three dimension including self motivation, perception and attitude are evaluated the influence of Psychological Characteristic of people on the share market operations in Batticaloa. We test through univariate analysis and bivariate analysis techniques. This outcome express the mean value is 3.4733 and standard deviation is 0.4524. It is shown in the table 3

If we want to invest in share market we should wish on the activities. That desire depends on our mind likewise involvement on share market operations also leads by our mind. The society should be support to run the business.

The first objective is obtained through the psychological characteristic variable. It is moderate level supportive on this study.

Extent of Social Cultural Environment Supportive to Invest on Share Market Operations.

Socio Culture variable with three dimensions are knowledge on share market, stock brokers support and cultural support. Those dimensions help to identify the influence of socio culture environment. We test through univariate analysis and bivariate analysis techniques. This outcome express the mean value is 3.1733 and standard deviation is 0.23915.

The second objective is obtained through the socio culture factors. It is moderate level supportive on this study.

Overall Result


Eventually when we observe the influence factors for an establishment of the stock exchange in Batticaloa district. Table 4   clearly discloses that influence factors are moderate level to establish the stock exchange in Batticaloa district.


To examine two variable of research we have used six dimensions. All research variables have been measured due to the nature of measurement and research objectives have been investigated with using of mean and standard deviation that summarized in Tables.

It is commonly believed that the investment decision of the investors is driven by the sentiment of investors. Investor’s psychological characteristic and socio culture trends were carefully indentified with the help of existing review of literature. The study has revealed that image factor has appeared as the most influence factor in determining investors decision making. Similarly individual optimism has become the key factor in influencing the sentiment of the investors.

In Batticaloa district there are many educational institutes those are higher education as university, college of education, teacher’s training college, international school and vocational training center even it is distant from share investment, there are low level of awareness and lack of stock brokers firm and information center on this type of investment. In any type of education should change the people and their society. These institutions can be change through subject of finance and investment. We can revolve the people’s investment pattern through provide psychological training as skill, attitude and knowledge development. This step change social culture environment due to most of them are more believe on educated people so if we change the educational society’s investment pattern other type of society also change into share market. Those are possible; the stock exchange will be established in Batticaloa district because visible services are more invited by the people. Based on this type of investment way some are known well some are unknown therefore, we assume this is a childhood investment way  in Batticaoloa, We state without building we cannot run the business perfectly based on our research.

Finally this study convey people are mostly involved all type of investment even experientially traditional investment is well known by the people than share investment because inadequate resources and deepest knowledge on this field. Psychological and socio cultural motivational factors are motivated the people to invest in share market so implementation is necessary one in Batticaloa district.


  1. Alexander William, Gordon. J, Sharpe. F, Feffery v,bailey, Fundamental of investment ,3rd ed
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Human Resources Management in Nigerian Tertiary Institutions: The Obafemi Awolowo University Experience


Jegede Charles Temitope 



Human Resources are the life blood of an organization. They are endowed with discretionary decision-making power and thus have competitive advantages over other resources. This paper examined human resources management in Nigerian tertiary institutions with a view to examining the challenges facing human resources management in Obafemi Awolowo University Ile-Ife of Nigeria. This study was necessitated by the need to ensure improved organizational performance and attainment of objectives as higher institutions of the 21st century. Both primary and secondary sources of data were utilized for the study. Primary sources of data were collected through structured questionnaires. Secondary sources of data were from internet sources, journals, books, unpublished theses among others on the field of human resources management and higher education administration.  A total of 180 questionnaires were distributed to members of staff drawn from all the four unions in Obafemi Awolowo University, Ile-Ife, Nigeria. Data were analysed using descriptive statistics The findings from empirical studies revealed that they are many challenges of human resources management in Nigerian tertiary institutions such as inadequate funding, violent trade unionism among staff, ambiguity in policy interpretations, low productivity, poor quality of work life, poor health and safety at work among others. The study concluded that these challenges of human resources management in higher institutions should be addressed in order for Nigerian tertiary institutions to attain their objectives as institutions of the 21st century.

Keywords: Challenges, Human Resources Management, Organizational Performance, Tertiary Institutions.


Human resources are the life-blood of any enterprise or institution. They combine other resources in the right mix to formulate appropriate strategies for the accomplishment of the desired objectives of the enterprise. This important attribute of HR assist the enterprises to make rightful decisions and respond effectively to the threats and opportunities within the environment of the organization (Farant, 1982: Gerald, 1995; Hanif, 2002). Thus the enterprise depends highly on its HR for success and survival. This dependence continuously   increases the complex and turbulent nature of the business environment of this century (Anyim and Ikemoria 2011).

According to Ogunsaju (2006), human resource management is the effective mobilization of human resources based upon appropriate recruitment, selection, training and placement of appointed staff in order to achieve the organizational set down goals and objectives. Human resources are useful tools employed in harmonizing the needs of the employees with goals and objectives of the organization on a continuous basis (Akintoye et al, 2008).

The success of an organization is not only determined by the quality of personnel available but how well these human resources harnessed and coordinated towards, realizing the goals of the organization (Vance, and Paik, Y. 2006).

It is on this note that the study examined human resources management in Nigeria tertiary institutions with a view to understanding the challenges facing human resources management in Obafemi Awolowo University Ile-Ife, Nigeria.

Objectives of the study

The objectives of the study are to

  1. review literature on human resources management
  2. examine the challenges facing human resources management in Nigeria tertiary institutions; and
  • suggest ameliorative measures to alleviate the challenges of human resources management in Nigeria tertiary institutions.

Literature Review

Nakpodia (2010) defined human resource management as part of management, which is concerned with people at work and with their relationship within the organization. London Institute of personal Management (1963) described human resource management as “the responsibility of those who manage people as well as descriptive specialists in management. This recognition acknowledged that human resource management is a distinction function of management in any public or private organization. The Personnel and Industrial Relations defined human resource management as “the process of developing, applying and evaluating policies, procedures, methods and programmes relating to the individual in an organization.

Human resources are saddled with the responsibility of designing and implementing policies and programmes that will enhance human abilities and improve the organizations overall effectiveness. The human resources practitioners play four critical rules in an organization or institution. They are to

  1. create and implement policies of an organization
  2. offer advice and counsel the employees on matter ordering on productivity, safety at work,

    or career among others.

iii. control of human resources programmes and laid down procedures; and

  1. provide services that assist line managers in performing their job or serving the organizational


Challenges of Human Resources management in Nigerian Tertiary Institutions

Anyim et al. (2011) identified the major factors militating against effective human resource management in Nigerian higher institutions. They include

  1. Poor productivity of workers in Nigeria
  2. Poor quality of work life
  • Insecurity and hazardous environment
  1. Quota system in employment
  2. Labour dissatisfaction at work
  3. Changing role of government or state in industrial relations
  • Economic recession; and
  • Diversity of workforce

Owojori and Asaolu (2010) maintained that the problems of human resources management in Nigeria higher institutions include inadequate financing, violent trade unionism among staff, disagreement on policy matters, lack of trust and ambiguity in policy interpretations.

From the foregoing discussion, it can be deduced that the problems militating against effective  of human resources management in Nigeria tertiary institutions include the following:

Inadequate finance: – Lack of finance could be responsible for inadequate facilities such as office furniture and fittings, instructional materials, delay in salary delay/non-payment of allowances etc. which could result in face-off taking a variety such as confrontation and strike.

Violent trade unionism among staff: – Misinformation, misinterpretation or lack of good communication network could cause trade unions to be aggressive and get out of hand. This is one of the hindrances to human resource management in Nigeria higher institutions.

Lack of trust: – There is usually lack of trust between management and members of staff in higher institutions. This could result in poor communication or ambiguity in communication content and selection in our union.

Staff recruitment and selection: – According to Ogunruku (2010), the principle of recruiting the best staffs into higher institutions have been compromised, this has impacted negatively into the human resource management in Nigerian higher institutions.

 Dictation from the political class: – There have been worries over time about this the type of people that are appointed to represent the external community on the governing councils of higher institutions in Nigeria. Often times, they are basically and prepondently politicians without cognate knowledge of the higher institution culture and ethos. This political class could dictate policies to the disinterest staff. This causes internal conflicts in higher institution community.

Disagreement on policy matters:  Policy matters could be source or disagreement. Instances abound when discrepancy in salary/remuneration among staff of different unions (e.g. ASUU and NASU) have created problems for university management.


A total of 180 questionnaires were distributed to members of staff drawn from all the four unions in Obafemi Awolowo University, Ile-Ife, Nigeria. Data were analyzed using descriptive statistics. All hand was on deck to ensure that are the accurate number of questionnaires distributed to respondents were collected accordingly.

The results of the findings from general profile of the members or staff and problems of managing human resources are illustrated in table 1 and 2 below.

The results of the findings from Table 2 show that majority of the respondents attest to the fact that human resource management face serious challenges which include inadequate finance, violent trade unionism, lack of trust, politicization of staff recruitment, dictation from the political class, disagreement on policy matters, insecurity and hazardous environment.


The study examined the challenges facing human resources management in Nigerian tertiary institutions. It also reviewed literature on human resources and problems of human resources  management in Nigeria tertiary institutions. Data were analyzed using descriptive statistics.

The study concluded that the problems facing human resources management in higher institution should be addressed in order for them to attain their stipulated objectives as institutions of the 21st century.



In the light of the crucial issues discussed, the paper recommends as follows:

  1. The government should provide adequate funding to higher institutions for proper maintenance of equipment, facilities and other expenditures of emergent need.
  2. There should be democratization of administrative processes in the Nigerian higher institutions.
  • Nigerian higher institutions must employ ICT in order to provide better human resource management service to their constituents and stakeholders.
  1. University autonomy on policy making matters should be encouraged and a consistent and effective communication network should actually be maintained.
  2. Staff welfare should be given priority to enhance greater productivity and cooperation.
  3. Management of higher institutions must ensure that there is good rapport and human relation between heads of the various departments, sections, units and their staff.
  • Higher institutions in Nigeria must look inward on ways of generating or improving on its internally generated revenue to complement government efforts.
  • Regular trainings should be organized for head of the various faculties, directorates, units, institutes, departments and sections in the art of personnel management.
  1. Finally, professional administrators should master their areas competently in order for

 higher institutions to have effective and efficient  human resources management.


[1] Akintoye, I.R., Adidu, F.I. Owojori, A.A. (2008). “Management and organization: A Book of

Reading” Akure: Tonygay Educational Publishers Ltd.      

[2]Anyim, F. C., Ikemefuma, C. O., Mbah, S. E. (2011) “Human Resource Management Challenges in Nigeria Under Published Economy” International Journal of Economics and

Management Sciences, Vol. 1, pp. 01-11.

[3] Farant, J. S. (1982) “Management or Higher Institutions” Lagos: Macmillan Publishers

[4 ]Gerald, P. B. (1995) ‘‘Administration of Higher Education’’ New York: Harper and Row


[5]Hanif, A. and Saba, K. (2002) “A Study of Effectiveness of Human Resources at Elementary

 Levels: Master Degree Thesis, Unpublished, Lahore: University of the Punjab.

[6] London Institute of Personnel Management, (1963) “Human Resource Management:An

Overview” An Address at Golden Jubilee of Institute of Personnel Management London.

[7]Nakpodia, E. D. (2010) “Human Resource Management in School Administration in Delta State,         Nigeria, Journal of Social Science 23 (3): pp-179-187.

[8] Ogunruku, A. O. (2010) “Excellence in University Administration in the 21st century: Nigerian Universities in Perspective” Birthday Lecture in honour of Chief Deji Adegbite (first

Registrar University of Ado-Ekiti).

[9] Ogunsaju, T. O. (2006) “Human Capital Management for Effective Corporate Governance” Paper      presented at a Workshop titled: Corporate Governance for Sustainable and National Development.

[10]Owojori, A.. A.. and Asaolu T .O. (2010), “Critical Evaluation of Personal Management Problems in the Nigerian School System” International Journal of Education Science, 2(1) pp.1-11.

[11] Vance, C.M. and Paik, Y. (2006) “Managing A Global Workforce: Challenges and Opportunities     in International HRM”. New York: Sharpe Publishers.


[1]* Dr. Mahesh Kumar Muchhal **Reena    ** Arun Kumar


 The prime concern of the study is to determine the impact of visual aids on the academic achievement of 7th Grade learner .The design of the study is definitely a type of experimental design, it is mainly of non-equivalent control group design of the Quasi experimental type(as it is not possible to have two absolutely equivalently schools) which is employed to study the impact of visual aids on the academic achievement and achievement motivation of  7th grade learners. The sample of the present study comprised of 78 students of 7th class from two schools namely, Govt. Senior Secondary School, Panjgain and Govt. Senior Secondary School, Barmana as the control group and experimental group respectively and 34 students were assigned to each group. The experiment was conducted for 30 days by using visual aids to the traditional method of teaching. The parallel form of achievement tests (Form A and Form B) prepared by the investigator was used. In the present study the obtained (t=3.81) which is greater then the expected 2.72 at 0.01 level of significance so it is concluded that teaching through visual aids had significant impact on the academic achievement.

KEY WORDS: Visual aids, Academic Achievement



We live in an unusual world marked by great and rapid changes. Since the appearance of man on

this planet, thousand of years rolled by silently before any technological discovery could be made. With an abrupt increase in the number of teachers and learners, the educational pattern of the country has changed immensely and the ineffectiveness of traditional method to meet the growing demands in the field of education there is a great need for novel methods and ways for providing instructions by the well wishers of educational field. The use of visual instruction provides enrichment of education and learning through maximum use of sense of sight. Visual aids means those sources in which only visual organs are used or applied that is knowledge is mainly achieved through visual organs that helps to make teaching and learning more interesting, more stimulating, more reinforcing and more effective.

  • The visual aids are potent starters and motivators.
  • The visual aids help the pupil in making association and recalling ideas.
  • The visual aids should be meaningful purposeful and accurate in every aspect.
  • The visual aids help in classifying various points and concepts.
  • They help to reduce the verbalism.
  • Visual aids contribute to increase retentively as they stimulate response of the whole organism to the situation in which learning takes place.

                    The dictionary meaning of ‘achievement’ is to ‘accomplish’ or to bring successful issue. In the present study the word achievement has also been used with the same meaning i.e. something achieved by the students through class room teaching.  Academic achievement is the amount of knowledge derived for learning, in an educational institution. Any behavior that is learned may come with in the scope of achievement. Academic achievement has found to be related to the acquisition of principles and generalization and also the capacity to perform efficiently certain manipulations of objects, symbols and ideas. Learned and Wood (1938) concluded based on their study that education was unavoidably intellectual in which knowledge was the dominating feature of   educational outcomes. Travers (1955) edge that counts either for admission test into a class.


       Lock and garden (1945) reported that the percentage of usable films for primary elementary and junior high schools and senior schools, college and adult grades were 42%, 20.8%, 62.9%, 81% and 71.7% respectively. Dale (1969) pointed out that the audio-visual aids can generally improve teaching. Dawyer, Francis, M (1975) found the use visualization to complement programmed instruction is an effective instructional technique. Anderson, R.B (1994) concluded that both the visual information and verbal information improved recall of non essential information struction is an effective instructional


The present study the attempt has been made to study the impact of visual aids on academic achievement and achievement motivation. The use of visual aids helps in the enhancement of the achievement level and motivation level of the learners thus, this work assumes more significance. This study will also help to raise the use of visual aids at lower level of learning. Students at lower level are more interested and feel motivated to learn by seeing then by the use of traditional methods of teaching the use of visual aids will positively affect their future thinking toward the scientific knowledge and this will help in increasing the perceptual thinking and enhancement. According to psychologist, the simplest type of learning is the formation and development of perceptual process. The stimulation   of sense organs on path are logically and genetically the beginning of learning process. Such stimulation leads to the organization of the perceptual experience. Perceptual development demands the careful analysis of objects into their elements through observation and the fusion, of there elements into whole which can be achieved by the visual aids.


  • To develop the instructional visual aids for teaching science to the students of class 7th.
  • To assess to the impact of visual aids on the achievements in science of class 7th
  • To assess the differential impact of visual aids on the academic achievements of boys and girls of 7th



H1   There is no Significant difference on Academic Achievement scores of control and

        experimental group at pre test.

H2   There is no significant difference between pre-test and post-test scores on academic

       achievement of boys and girls of control group.

H3    There is no significant difference on academic achievement between boys and girls of

       experimental group.

H4   There is no Significant difference on academic achievement scores of the control and

       experimental groups at post –test.

H5   There is no Significant difference between pre-test and post-test on academic

        achievement of both the control and  experimental groups.


              The prime concern of the study is to determine the impact of visual aids on the academic achievement of the 7th Grade learner .The design of the study is definitely a type of experimental design, it is mainly of non-equivalent control group design of the Quasi experimental type (as it is not possible to have two absolutely equivalently schools) which is employed to study the impact of visual aids on the academic achievement.


Sample of 68 students of 7th class of Govt. senior secondary school of Panjgain and govt. senior secondary school of Barmana were taken in the present study . The 34 students of 7th class of Govt. senior secondary school of Panjgain were taken as control group. They were only exposed to the traditional lecturing- based teaching of science by their regular teachers only and The 34 students of 7th class of govt. senior secondary school of Barmana were taken as experimental group. In the present study, teaching through visual aids is the treatment given to the experimental group.


  • Researcher used self made Questionnaire for Achievement Test.


It may be interpretive that the initial mean difference that exists between the control and experimental groups with regard to academic achievement is not significant as such both the groups may be considered to have almost equal level of academic achievement. In other words both the groups may be considered to be equivalent so far as their academic achievement is considered.

Therefore, it may be interpreted that the significance of difference between pre as well as post test scores of boys and girls of the control group are not significant .As such it may be concluded that the mean scores of boys and girls of control group do not vary on academic achievement .In this context, the hypothesis H3 that is, the boys and girls of class 7th   do not differ significant on a academic achievement may be rejected.

Therefore, from the result it may be interpreted that the difference between boys and girls of experimental group on academic achievement is not significant. As such, both the boys and girls of the experimental group may be considered to have almost equal level of academic achievement. As such, the hypothesis that is the boys and girls of 7th class of experimental group differ significantly on academic achievement may be accepted.


Means, S.D and t-ratios for post-test of academic achievement scores of control and Therefore, it may be interpreted that the difference that exists between the control and experimental groups with regard to academic achievement is significant .As such, both the groups may not be considered to have equal level of academic achievement and since the , mean scores of experimental group is higher than the control group, it may be concluded that the subjects of experimental group do better under the experimental treatment.

Therefore, it may be concluded that the difference between the said mean scores of the control group is significant. In other words it may be concluded that teaching through traditional method had significant impact on academic achievement of 7th grade learners.

            On the contrary, the study of significant of difference between the pre and post test mean scores of the experimental group on the variable academic achievement as presented in table 5 give at t value of 3.81 it may be mentioned here that the critical values of t ratios to be significant at 0.05 and 0.01 levels of significance need to be 2.03 and 2.72 respectively with 33 degrees of freedom.

            In the present case since the obtained t value of 3.81 is greater than the expected 2.72, at

0.01 level of significance, it may be concluded that there exists significant difference between the pretest and posttest scores of the subjects of experimental groups. On the basis of the result the investigator feels to conclude that the teaching through visual aids had also significant impact on academic achievement of the learners. However, a close look on the mean scores of the control and experimental group reveals that teaching through visual aids is found to be more influential in comparison to the traditional method of teaching.

Findings of the study

              The major findings of the study are presented briefly as follows,

  • The use of visual aids was found to be effective in enhancing the academic achievement.
  • The traditional method of teaching was found to be useful in enhancing the academic achievement of the learners.
  • The use of visual aids was found to be more effective than the traditional method of teaching in enhancing the academic achievement of the learners.
  • The use of visual aids in teaching process found to be effective in             enhancing the achievement of learners in science.


                  It may be concluded that use of visual aids in teaching has significant importance in enhancing academic achievement among seventh class learners. Teaching through visual aids is more effective for the development of academic achievement traditional lecturing method .It also shows that it is one of the potent way of imparting science education and communicating science and technological advancement in the integrated and holistic manner, Hence special emphasis should be given for the use of visual aids in science education.


Anderson, R.B. (1984)    Examining effects of technology mediated visual information : an alternative research approach  Dissertation M.Ed. ,P. U


Antonysamy’s , L’s  (1989)  conducted  study related to teaching environmental concepts to school dropout  through video and charts,. Fifth survey of educational research (1982) vol. 1

Basu, M.K., “An investigation on effectiveness of multi-media programmed materials in teaching of physics”: fourth survey of educational research (1983-84) Vol. 1

Golani .T.P(1982) conducted a study on the use of visual aids in the secondary  school of district thane,  fourth survey of educational research,(1983)Vol. 1

Jaiswal,K.(1992),A Study on the effectiveness of T.V programs  in science education .fifth survey of educational research,(1988-92) Vol.1

Mohanty ,J., Giri, A.P.,and Mohanty  P.C(1975)A study on radio programs broadcast during the in service training course, fourth survey of educational research,Vol.1

Vijeeta  Menan, (2003-04) Studied the effect of visual aids  on achievement in science in relation to cognitive style, M.Ed. Dissertation Punjab university

*Dr. Mahesh Kumar Muchhal, Associate Professor, Digamber Jain (PG) College Baraut, Baghpat (U.P)     E-Mail-mkmuchhal

* * Reena, Assistant Professor, Shri Sardari Lal College of Education, Nahoni (Ambala)

** Arun Kumar , Assistant Professor, Shri Sardari Lal College of Education, Nahoni (Ambala)






The slum is not only a manifestation of mismanaged urban planning in the countries of the South. The existence of slums worldwide is also a sign that the slum is a crucial element of contemporary urbanisation. This article will attempt to define this phenomenon and understand its causes. Adequate policy responses are then suggested. Without finding appropriate solutions to the housing problems of a majority of urban dwellers, public and private decision makers will not be able to meet the challenges of sustainable development.

The primary causes of slum development are urbanisation, migration of the population from rural to urban areas, lack of proper affordable residences in the urban areas, unhygienic living conditions of the people in these slums. The slums are mostly built in low lying areas next to water bodies and drainages. These also pose as a health hazard for its occupants. The lack of sanitation facilities like proper toilets and bathrooms leads to unhealthy habits like open defecation, washing of clothes in the polluted river water, breathing in the stale, unclean air.

The secondary factors like education facilities, basic government services like policing, security etc are non-prevalent in the slum areas. As the slums are an illegal settlement on government land, the people have no life security and may be asked to evacuate at any time. Even the houses they live in are small compact and tightly packed. The settlement is very rudimentary and haphazard without any proper planning. These being situated in low lying areas are the first to be affected during natural disasters like floods and rains. The government has taken several measures to uplift the pitiful living conditions of the slum dwellers.

The report also contains case studies, both Indian and foreign, for further explanation on the life in squatter settlements. The case study in India is based on Dharavi, Asia’s biggest slum. The financial capital of India known as Mumbai is home to estimated 6.5 million slum people.

Nearly half of Mumbai’s Population lives in small shacks surrounded by open sewers. Nearly 55% of Mumbai’s population lives in Slum areas. Despite of Government efforts to build new houses and other basic infrastructure, most of the people living in slum areas do not have electricity, water supply and cooking gas.

The second case study is on Sao Paulo, in Brazil. A home to one of the biggest slums in the world called Favelas. Slums world‐ over share some common characteristics including a higher incidence of violent crime due to lack of attention from local law enforcement, a higher incidence of disease due to poor sanitation and access to healthcare facilities, the dominance of the informal economy and political bosses, and a higher incidence of child labour, prostitution, and substance abuse. Clearly, the culture of a nation or region plays a large role in determining the degree to which these factors shape the slum. The development of slums appears to be an entirely organic phenomenon which occurs when poorer countries that have under‐developed

urban management, governance structures and poor infrastructure undergo rapid industrialisation and urbanisation and fail to minimise the disparity of prosperity between the urban and rural population.


One of India’s biggest challenges today is coping with the wave of urbanization unleashed by economic liberalization. An estimated 160 million people have moved to the cities in the last two decades, and another 230 million are projected to move there within the next 20 years.

Unfortunately, as any visitor to India can see for themselves, its major metros and tier‐II cities are clearly finding it difficult to cope with the inflow of people. It is no surprise that India’s famously poor infrastructure is critically over‐strained. In response, the ill‐equipped urban systems and the informal housing that are the slums have expanded exponentially in the last few decades without proper access to basic services such as sanitation, healthcare, education, and law and order. While they are often teeming with entrepreneurial activity, they are nevertheless an inefficient use of the city’s human resources and land. In order to truly unleash the productive potential of this dynamic urban population, India will need to build scalable urban systems capable of housing, caring for, employing and integrating large and increasing numbers of new inhabitants. India is not alone in this challenge of course; Mexico, Brazil and Africa have some of the largest slums in the world. It is unclear that there are simple solutions to the problem of slums given their extraordinary organic growth rates– 70% of the world’s population is expected to live in urban centers by 2050 – and solving slums requires a rethink of the design of cities and their borders as well as of the role of rural areas. The challenge is incorporating all of these factors and still being able to provide safe and sounds residences to the abundant inflow of people, with proper planning and without the compromise on the use of the resources of the state.

In this article we will be running through the problems faced by the government due to slum and squatter settlements. The appalling living conditions of these illegal settlements, the health problems caused, the issues faced by the people living there and ways of rectifying this situation in the best possible manner.


“Slums are litmus tests for innate cultural strengths and weaknesses. Those peoples whose cultures can harbor extensive slum life without decomposing will be, relatively speaking, the future’s winners. Those whose cultures cannot will be the future’s victims.” – Robert D. Kaplan, The Coming Anarchy, 1994

A slum is a heavily populated informal urban settlement characterized by substandard housing and squalor. While slums differ in size and other characteristics from country to country, most lack reliable sanitation services, supply of clean water, reliable electricity, timely law enforcement and other basic services. Slum residences very from shanty houses to professionally built dwellings that because of poor quality design or construction have deteriorated into slums.

Slums form and grow in many different parts of the world for many different reasons. Some causes include rapid rural-to-urban migration, economic stagnation and depression, high unemployment, poverty, informal economy, poor planning, politics, natural disasters, and social conflicts.

Most of the people who live in slums are extremely poor, and many are treated as second class citizens by their society. Health problems tend to be very high, as a result of improper sanitation and lack of access to basic health care. Malnutrition is another serious problem in many places, as is crime, which can make them very dangerous for their inhabitants.

Many people view slums as the ultimate symbol of inequality, and in some regions, such areas have formed in some very unexpected locations, sometimes neighboring the homes of the wealthy. Organizations that campaign against them argue that no human being should be forced to live in such poor conditions, and that as a basic act of humanity, cities need to provide livable low cost housing and regulate construction.

Unfortunately, the solution is seldom this simple. The world’s population is rapidly growing, putting immense pressure on available resources, and as developing countries become more developed, this pressure is likely to grow. Although it is somewhat disheartening to think about, gross inequality seems to go hand in hand with growing societies.


Democracy provides free mobility to its people. Part of the freedom of India’s democratic population is the apparent liberty to pursue their dreams anywhere in the country and India’s aspiring population is dynamic and determined to do so. The great slums of India are predominantly created when large numbers of individuals or families move to the urban centres of their dreams, usually in search of better economic prospects. Mumbai has been the number one choice of generations of Indians for decades. These urban centres are not geared to, nor governed in a manner that can accommodate (or reject) such an influx of people. As a result, the incoming migrants find accommodation in unorganised dwellings. India’s slums have received global attention not just from the global NGOs but also in popular culture through movies like Slumdog Millionaire,which portray them as centres of unmitigated squalor and despair. However poor this quality of life may seem from the outside, from a migrant slum‐dweller’s perspective, living there is an entirely rational decision based on three basic factors:

  1. A Higher and More Stable Income. The productive employment opportunity in the urban centre will likely generate a higher and more consistent personal disposable income than in the place of origin – likely a rural, farming centre (e.g. being a chauffeur in Mumbai is a more lucrative and sustainable job proposition than being a labourer at a farm, typically a small plot in an un‐electrified village with erratic water availability.

  1. Social Mobility for the Next Generation. Raising children in an urban environment creates a higher “option value” for the next generation. Typically, cities offers a wider choice of education and employment opportunities, and while no parent wishes their child to grow up in a slum, the chances that the child could rise to a middle class life provides a strong incentive to migrate to one from the countryside. This contrasts to a child growing up in a village dominated by a sub‐scale farm with poor education and employment opportunities, who is unlikely to ever have the same social mobility opportunity.

  1. No Other Option. Unfortunately, slums are the only way to inhabit the city for the vast majority of migrants. With little available low‐cost housing of decent quality near the city centre, a rural migrant would need to go well outside even the suburbs and outskirts of the city to be able to afford real estate. Given the poor transport linkages to the cities, this can create a significant trade‐off for migrant in terms of the occupations that are available and their earnings potential. As a result, most are willing to compromise and make the trade‐off to slum housing in the city to be closer to the place of work.

The coalescing of this process over decades, with successive waves of migrants and no exodus of the previous waves leads to slums growing in scale and scope (see inset on the phases in slum development). Over time, informal economies develop in these slums as they form their own social practices and codes in the absence of any effective oversight from the local government. The larger slums often become a zone for small‐scale industries by illegally diverting public resources (water, electricity) to meet their requirements. These slums also provide bluecollar

labour for construction, manufacturing, and other trades.

Clearly, India’s slums are far from their popular stereotypes as only centres of disease and want. Indeed, an overwhelming number of people in these slums have left their homes in the countryside in the pursuit of opportunities in urban India because of their strong aspirations. Ironically, it is the informal economy which traps many of these slum‐dwellers into the vicious cycle of poverty.

Without real options for their children to secure competitive standards of schooling and with the overwhelming number of slum‐dwellers not trained for the better jobs, social mobility for this class, though inspiring when it occurs, is still limited. Further, continuing urbanisation and slum growth through fresh arrivals from the countryside increases competition for limited resources and, opportunities further reducing both liveability and individual chances for mobility. The very presence of slums ultimately risks creating a different class of urban citizens who only rarely mix with the other ‘classes’ other than as employees. While India’s slums today are full of ambitious hard workers, lack of opportunity can quickly institutionalise poverty and create an unbridgeable gap between poor and rich. Although global technological innovation and India’s growth provides its slum dwellers with access to some of the modern consumables such as motorcycles, televisions, and mobile phones, their ability to shape their own destiny remains limited – and the productive potential of the young migrants eager to work is under‐utilised. However, having established viability and survived attempts to dismantle the slum, India’s largest slums like Dharavi, are now in phase VI, continuous growth through adaptation. This makes them an organic entity that has demonstrated its Darwinian survival status.

Strategies for transforming India’s slums

The history of urbanisation is full of examples of cities which started off by being the hosts (willingly or not) to the economically weaker section of the population who were ultimately graduated from poor living conditions to a combination of affordable housing and basic civic amenities. The solution ultimately lies in better nations, not just better cities, which are scalable and capable of not only absorbing the inflow of people (from within or without), but in fact are economic magnets in attracting the best talent from the country. Five insights provide the basis of the solution.

Firstly, slums are a logical response to urbanisation and the relative lack of opportunity outside of major urban centres in predominantly poor countries. They are facilitated by the right to migrate. So, they are a structural phenomenon.

Secondly, slums become a system of living perpetuated by economics, politics and societal factors. Therefore, it makes sense to see them as a part of the system of a country and also the global system of trade and distribution of wealth.

Thirdly, people accept and adapt to their circumstances without (external) triggers to encourage them to do otherwise. In this sense, slums are adaptive organisms.

Fourthly, slum dwellers can improve the slum to a large extent if mobilised to do so. Therefore, they can also be developed as one would any organisational entity through the application of techniques of change management.

Finally, slum dwellers cannot transform their slum (into a non‐slum) without the support of the environment around them. They lack the critical human and financial resources to make a clean break from their situation. Their transformation requires external impetus and resources. In the absence of this external intervention, they can become disenfranchised rather than citizens in‐waiting and have the potential to develop a culture, set of values and behaviours that can threaten the on‐slum environment they live in.

“People accept and adapt to their circumstances without (external) triggers to encourage them to do otherwise … slums are adaptive organisms”

Therefore, ultimately, a comprehensive and long‐term solution to the problem of India’s slums cannot be about the slums themselves. A viable solution would have to take a holistic view dealing with India’s larger macro challenges and recognise the critical role which cities will have to play if India is to successfully transition into a middle‐income country. Such a solution and would include the following strategies:

  1. Industrial Revolution and Continued Development. While it was the industrial revolution which led to a wave of rapid urbanisation in the West and gave rise to slums,without the industrial revolution, the West would not have been able to afford to develop housing and infrastructure required for its growing populations. The solution to slums is not to reverse industrialisation or to try and contain urbanisation, but indeed to press forward with it more aggressively so that businesses can afford to provide jobs to slum‐dwellers and pay them a proper wage.

  1. Knowledge and Freedom Advantage. India is not fully leveraging its “freedom advantage” (see our previous paper on China which highlights the strong link between a society’s freedom and its development potential) which should in theory allow for people to strive to realise their aspirations. In particular, India needs to create an open knowledge economy where the slum‐dwellers are empowered to solve their own problems and have the access to financing to do so. This requires scaled charities and NGOs that can apply global bestpractices to tackling India’s urban issues and also raise the necessary financing.


  1. Slum Architecture. Lesson from other cities indicate that slums are best solved when housing is horizontal not vertical. In order to assimilate slum‐dwellers into urban life instead of further ostracizing them, India cannot just bulldoze the slums and pile up the people into apartment blocks. A real solution would involve building high‐quality, low‐cost, multi‐storey, diverse formats in the current areas such that these become integrated with the rest of the city (as we see in London or Paris). This needs the best brains in India and the world to come in and design the solutions. The slum is merely the platform for an urban re‐invention.

  1. Sustainable Continuous Dynamic Infrastructure Provisioning. The government needs to create a framework for gradual and continuous upgrading of slum infrastructure through innovative public‐private models and by leveraging the many dynamic charities and NGOs in India. Such a model would see the slum‐dwellers become the driving force of, rather than bystanders to, the improvement of their living conditions by empowering them to identify the solution and then finance and implement it.

  1. Rural ReVisioning and Investment. India cannot solve its slum problem by focusing on the cities alone. Any city which develops the systems to accommodate more people and create economic opportunities will attract a disproportionate number of migrants putting it under further strain unless opportunities in rural areas are sufficiently attractive relative to those in the city. Therefore a comprehensive solution would necessarily have to involve improved infrastructure, schools, employment opportunities and the overall quality of life in India’s small towns and rural centres. India’s countryside has all the potential of a Switzerland (Kashmir and the Himalayas), the Caribbean (the many beaches along its long coast), an African safari (the many wildlife sanctuaries and forests), and a Gulf desert trek (Rajasthan’s deserts and palaces) – however, the

country has barely begun to exploit this potential.



Dharavi slum is located in Mumbai (formally Bombay) in India. India‛s and Mumbai’s biggest slum is known as Dharavi. There are a million people crammed into one square mile in Dharavi. At the edge of Dharavi the newest arrivals come to make their homes on waste land next to water pipes in slum areas. They set up home illegally amongst waste on land that is not suitable for habitation. In the wet monsoon season these people have huge problems living on this low lying marginal land. Many of the people here come from many parts of India as a result of the push and pull factors of migration.


Conditions in the slum


In the slum people have to live with many problems. People have to go to the toilet in the street and there are open sewers. Children play amongst sewage waste and doctors deal with 4,000 cases a day of diphtheria and typhoid. Next to the open sewers are water pipes, which can crack and take in sewage. Dharavi slum is based around this water pipe built on an old rubbish tip. The people have not planned this settlement and have no legal rights to the land. There are also toxic wastes in the slum including hugely dangerous heavy metals. Dharavi is made up of 12 different neighbourhoods and there are no maps or road signs. The further you walk into Dharavi from the edge the more permanent and solid the structures become. People live in very small dwellings (e.g.12X12ft), often with many members of their extended families.

Many architects and planners claim this slum could hold the solution to many of the problems of the world‛s largest cities. Water is a big problem for Mumbai’s population; standpipes come on at 5:30am for 2 hours as water is rationed. These standpipes are shared between many people. Rubbish is everywhere and most areas lack sanitation and excrement and rats are found on the street. 500 people share one public latrine. The famous cloth washing area also has problems, despite its social nature sewage water filters into the water used for washing clothes.

The Positives of Dharavi Slum


There are positives; informal shopping areas exist where it is possible to buy anything you might need. There are also mosques catering for people’s religious needs. There is a pottery area of Dharavi slum which has a community centre. It was established by potters from Gujarat 70 years ago and has grown into a settlement of over 10,000 people. It has a village feel despite its high population density and has a central social square. Family life dominates, and there can be as many as 5 people per room. The houses often have no windows, asbestos roofs (which are dangerous if broken) and no planning to fit fire regulations. Rooms within houses have multiple functions, including living, working and sleeping. Many daily chores are done in social spheres because people live close to one another. This helps to generate a sense of community. The buildings in this part of the slum are all of different heights and colours, adding interest and diversity. This is despite the enormous environmental problems with air and land pollution. 85% of people have a job in the slum and work LOCALLY, and some have even managed to become millionaires.

Recycling and waste in Dharavi


Kevin McCloud found that people seemed genuinely happy in the slum. However, toilets are open holes above a river – hardly hygienic. This could lead to Dengue fever, cholera and hepatitis Dharavi has a recycling zone. It is claimed that Dharavi‛s recycling zone could be the way forward to a sustainable future. Everything is recycled from cosmetics and plastics to computer keyboards. 23% of plastic waste gets recycled in the UK, in Mumbai it is 80%. However, it is humans who work to sift the rubbish in the tips where children and women sift through the rubbish for valuable waste. They have to work under the hot sun in appalling conditions. They earn around a £1 a day for their work. At the edge of the tip the rag dealers sort their haul before selling it on to dealers. The quandary is that people have to work in poor conditions to recycle waste. From the tip it arrives in Dharavi where it is processed. It is sorted into wire, electrical products, and plastics. Plastics in India are continuously recycled. People work in dangerous conditions with toxic substances without protective clothing; this could affect people‛s life expectancy. Even dangerous hospital waste is recycled. One private enterprise makes the metal cages inside suitcases, making 700 pieces per day, paid 3 rupees per piece. There are 15,000 one room factories in Dharavi which there are 300 feeding most of Mumbai. Many of the products from Dharavi end up around the world based upon very cheap labour. Many of the people work in very poor working conditions, and includes children. Indeed, Dharavi is trying to do in 20 years what the west did in 200, develop.



The Favelas are densely packed informal settlements made of wood, cardboard, corrugated iron and other makeshift materials. Later they are replaced by concrete block construction. Often only one wall at a time will be built as a family saves up enough money to buy materials for the next wall. Then concrete tiles replace corrugated iron or other makeshift materials on the roof.

The large-scale improvement in favelas in São Paulo is due to residents’ expectations of remaining where they are. This in turn reflects a change in public policy in the past 20 years, from one of slum removal to one of slum upgrading.

Attempts to tackle the slum housing problem

Over time, a range of attempts have been made to tackle the housing crisis in São Paulo. These include:

  • A federal bank (BNH) which funded urban housing projects and low-interest loans to lower and middle-income home buyers
  • A state-level cooperatives institute (INCOOP) which helped to build housing for state workers such as teachers
  • A state-level development company (CODESPAULO) for housing for low-income families and financing of slum upgrading projects
  • A collaborative private sector/state company scheme (COHAB) to develop housing for limited-income families
  • A municipally managed COHAB for public housing construction, which also funded self-help projects (‘mutiroes’) to upgrade substandard housing.

During the period 1965 to 1982, over 150,000 housing units were built or upgraded, mostly through COHAB. Since the early 1980s, because of cutbacks at federal and state levels, the public housing burden has fallen more heavily on the municipality. Due to its own financial problems the number of housing units built by the municipality each year since the mid-1980s has averaged less than 6,000 a year.

The administration of leftist mayor Luiza Erundina (1989–92) tried to speed up public house building. Here the emphasis was on self-help housing initiatives, known as ‘mutiroes’. The city supplied funding directly to community groups. The latter engaged local families to build new housing or to renovate existing housing. However, the annual house building total only increased to 8,000 during this period.

The new strategy

The election of socialist mayor Marta Suplicy in 2000 marked a change in strategy towards the housing issue:

  • The new administration promised to spend $R3 billion on housing during its term in office.
  • The 1,000 unfinished Cingapura housing units were to be completed.
  • The new strategy would be designed to obtain maximum impact for minimum cost.
  • The concept of the mutiroe (self-help scheme) was resurrected, assisting families in self-construction or upgrading of their own homes.
  • The house unit cost of self-help schemes is between $R11,000 and $R15,000 compared to over $R20,000 for housing units in the Cingapura Project.
  • A flagship scheme to alleviate poverty in favelas is under way in Santo André (Figure 13).

Occupation of buildings by homeless

In July 2003, more than 4,000 homeless people occupied four abandoned high-rise blocks in the centre of São Paulo. Police prevented the occupation of two other buildings. This occupation and others was organised by ‘Movimento Sem Teto do Centro’ (Movement of Roofless in Centre). This organisation is protesting about the poor record of the authorities in tackling the homeless problem. They are also angry about the way street sellers are treated, with the authorities confiscating their goods because they are trading without licenses. For many homeless families and others, street selling is their only source of income.


Brazil has a greater disparity in income levels than most other countries. This impacts on housing and all other aspects of the quality of life. The occupation of buildings by homeless people is an illustration of the social tensions that such a wide income disparity can bring. It can be argued that housing is the biggest problem that São Paulo and Brazil in general has to tackle.


All the strategies described above on their own can transform the slums. However, if implemented together, they could represent a sea change in the way that world’s mass migration and resulting urbanisation is managed. This requires a recognition that the reason why slums in India persist and continue to expand is because of the failure to address fundamental issues of economic opportunity across the country, population growth, urban and rural development and education and skills development. A middle income India will indeed demand world‐class cities and conversely, to reach middle income levels, India needs to create opportunity for the population to be gainfully employed. Given India is already in the midst of a rocky economic cycle at the same time as slums are growing at the edge of every major city, the investment in urban infrastructure can create a highly positive multiplier effect for the economy while addressing a major issue. There is no single point in time or crisis which will tell us that India’s cities have suddenly become “un‐livable”; however if the status quo prevails for the next 20 years, they will get progressively more chaotic and at some stage in the not‐too‐distant future, it will be impossible to harness the economic potential of India’s population without even more radical changes than those outlined above. Addressing this issue is one of the key steps in the regeneration of the India story and will have a highly positive impact on the success of the next government. Indeed, solving the issue is about as difficult as putting a man on the moon, but would have massive collateral benefits for the nation as a whole and would be a true indicator that India is truly ready to play its role on the global stage.

“Solving the issue is about as difficult as putting a man on the moon, but would have massive collateral benefits for the nation as a whole and would be a true indicator that India is truly ready to play its role on the global stage.”


  2. McKinsey, India’s Urban Awakening, 2010
  3. Deccan Herald, “Dharavi SelfCreated Special Economic Zone for the Poor”, 2011
  4. Sussane Wendt(1997), Dissertation for phd, Slum and Squatter settlements in Dhaka
  5. Kevin McCloud, Slumming It