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Two PhD students of Mumbai University will now be part of a tri-university project that will study the impact of offshore service sector activities and whether these contribute to the long-term development of cities like Mumbai.
The Mumbai University is collaborating with the University of Amsterdam and the University of Philippines on the project which has received a grant of Rs 4.5 crore. It will examine whether the expansion of the service-sector has an impact on middle class formation in the two cities or whether it merely generates call-centre and software coolies. Besides focusing on its long-term effect,PhD students will see whether it reduces urban poverty or does it lead to a set of people trapped in low-paid jobs.
It will map the outcomes of offshore service development in Mumbai and Manila and study the economical and sociological impact. The focus will be the knowledge process outsourcing sector. The offshore service sector development is often associated with rising incomes,changing consumption patterns and new lifestyles. Students will examine whether it leads to the formation of a new urban middle class in Mumbai and Manila. They will look at aspects like consumption,lifestyle,family relations,political orientation and societal commitment, said professor Neeraj Hatekar from Mumbai University,who will supervise the work of the students.
What is significant is that the PhD students who are working on this project will get a monthly stipend of Rs 32,000,which is double the amount given by the University Grants Commission. They will get the opportunity to be trained at University of Amsterdam and will go to Manila for their research. They will get their degree from the University of Amsterdam, he said.
Another major component of the project will be to investigate the trickle down and spillover effects of the offshore service sector into other parts of the urban economy. It will look at the direct and indirect employment effects and study the employment generated in supportive activities like office staff,cleaners,transport services among others. Students will identify how the sector generates demand for new types of support services,how localised are its impact and thus map the geographical distribution of expenditures of workers in the urban/regional economies of Mumbai and Manila.
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