Hi ,its nice to know that Mittal is trying to get control of steel in France,Indian gov should take action to teach the MNCs THEREespecialy all FRENCHgoods should be banned for some time so that they get a lesson ,ALSO Honorable Indian PM ,should act ,not just preach about policies ,they foreign investors should be shown the line ,mark not to cross.
One comment on why no one is bothered about the foreign control over companies. It has to do alot with the colonial mindset of the educated classes which in the majority was always slavish.
In the days of the Raj, the next best thing to a government job was to work for was a foreign company. After the Brits were sent packing, the fascination was for working abroad, the xenophilia was always a dominating factor. The globalisation has only fuelled the latent trend, the companies are here, and a job with them here is a possibility of getting to go to the great IMC heaven on earth that is the US of A (IMC= Indian Middle Class).
The attitude of the Indian industry and the ruling class did nothing to foster a pride in India, but worked to the contrary.
I wouldnt have agreed more on most of the points you made. A must read article atleast for all the politicians or shall I say bureaucrats :). Thanks once again for the article.
PKL. Feb.5,2006. TN ninan's comments and hopes are far from gospel truth in the global scenarios of MNCS.There are Villepins and his likes amongst rich and erstwhile old rich European tycoons who would feel if they were being fornicated by darkskinned niggers for all their talk of globalizing effects of WTOS or Capitalism being nationalism and ethnicity free. As such Mittals and Pauls of south Asia have to remember that they are old natives of south Asian countries, no matter how long or how successfully they have planted themselves in the rich-man's white countries..Some lurking prejudice shall persist at least as deadly legacy of old colonial slavery,still..D> Goel
Market valuation reflects the quality of performance of its management. This is the basis for permitting of take-over of firms on the presumption of better management. It makes eminent sense to permit money from all sources to come and invest on the nation.
Larger Indian problem is intra-national. The controlling interests held by government owned FIs are often subject to behind the scene arbitrary control. Hence the capital market mechanism to enforce the efficiency criterion on companies works inefficiently. These are much larger amounts than ones in Swiss lockers.
It did make much sense at the time when those investments were made to strengthen national money. Now it makes more sense to exit from all such investments and permit an unencumbered market operation. This would drastically improve the financial health of the government as well.