Mohan has written a very good article quoting some critical points about the state of our administration. But I do have some questions which might have been ignored and need attention.
1. I agree, $100 billion can be brought back for investments in infrastructure and other programs. But these were investments made in securities. Do these have any value left in them? Now will bringing back investments in US help us? US is already under great stress. If a country like India pulls back from US, it might drive US into a shock and drive their market further down. This will definitely impact the world driving it into severe recession.
2. On market focus, I don't think India has huge oil deposits or other natural benefits that we can simply ignore markets. The growth of our country and the need to pull 1/3rd of our population out of poverty solely rises in our companies to grow and employ more people. We also want FDI's to trigger even faster growth. This is the only way we can develop local market so that we can become elusive to world outside. We currently do not have enough domestic market that can employ the huge number of youngsters coming out of college every year and have balance in budget necessary to fund grand poverty reduction and education programs. Our growth is completely linked to flourishing companies and people employed in them.
MMS is definitely educated well in economics and I’m sure while planning for the country, all these critical aspects come to play
Re: Interesting Article
by gatzzz on Nov 27, 2008 12:33 AM
Continuing my point, I also agree that buying of corus and jaguar will not benefit India. But on the contrary, with steel fastly depleting from our natural resources, the key to TATA steel's survival is to have a major acquisition so that it can maintain its leadership. We need companies like TATA to flourish and bring back the additional income they generate into India for future development. It is always good to have strong and world class companies. Just look at how countries like Japan and South Korea have grown? Its solely on their companies. If we don’t bail out our companies, then what will be left for us to build on? This is time for us to be really bold and face the tide from front.
On future prospects for our nation, I strongly feel our govt should have market focus so that our companies flourish and employ people. Secondly our govt should shift focus completely on, to improving agriculture and exports in agri based products. 2/3rd of our population depends directly or indirectly based on jobs in rural sector. If we have to lift our economy and drive it forward, then our focus should be on agriculture. With a good focus, we can be the world’s food bowl in no time and have sustained progress through 21st century by exporting food to the world over. I feel its time we change our stance and drive our exports in agriculture so that in agriculture, we can be just what Middle East is to world in oil.
Re: Interesting
by Sunil on Nov 27, 2008 12:29 AM
This author is writing for the sake of writing. He does not have any clear/concrete argument on his side. I find it difficult to understand where he stands on the scale of economic systems. One minute he criticises MMS for allowing Indians to invest/buy houses abroad which is typical Left wing politics and the next minute he says the government should not bring out a relief package for industry and allow Indian companies to fail if such situation arises (U reap what you sow kind of American capitalism). Hence the author certainly lacks clarity in this regard. I hope he does it asap and stops making us panic with writings like this.
the guy who wrote this article doesn't know anything about recession.....
In an economic cycle, a downturn can be considered a consequence of an expansion reaching an unsustainable state, and is corrected by a brief decline. Thus it is not easy to isolate the causes of specific phases of the cycle.
The 1981 recession is thought to have been caused by the tight-money policy adopted by Paul Volcker, chairman of the Federal Reserve Board, before Ronald Reagan took office. Reagan supported that policy. Economist Walter Heller, chairman of the Council of Economic Advisers in the 1960s, said that "I call it a Reagan-Volcker-Carter recession. The resulting taming of inflation, did, however, set the stage for a robust growth period during Reagan's administration.
MMS - grwoth can be 9% Ahuwalia growth will be around 8 % Chitambaram growth will be 7%??????
these 3 people giving 3 statement in 2 days and they are diffrent...
people told them as a dream team... what they done in last 4 yrs???
they increase SLR, CRR, PLR from 2005 to 2008 end....
inflation gone up... but they never try to reduce inflation with low petrol prices...
in every budget they gave subsidy and loan waiver...
rahul was playing with his dad name... rajiv gandhi gramin yojna... till date i never seen where they are giving rojgaar???
chitambaram always telling no need to feer... when market was 21000 and now its 8000.. there is same word from chitambaram and that is no need to panic....
now they are telling grwoth was because of FII... they gone back and growth slowed... what it means????
it means they done nothing.... whatever 9% growth was there that was because of FII.?? ( they dont understand that agter 60% market crash,... money erode from marekt and everybody is in short of money... which reduce demand... and so production also need to reduce.. )/
this dream team was and is a dream only...
they are the biggest chor of 60 yrs....
crude reacec45 dollar... but they dont want to reduce petrol cost...
P Chidambram :Involved in the manipulation of share price of FAIR GROWTH FINANCIAL SERVICES. Imposed bizzare taxes like FBT STT and BCTT Introduced sick provisons like cash flow in IT returns and MAT. Hell bent on making paupers of existing tax payers.
MANMOHAN SINH: The most over rated man in the history of this country. Was one of the key figures in the stiffling industrial policy designed by INDIRA GANDHI. Started liberal policies only because the IMF was holding a gun on his head. Never won an election but was still imposed on the people as the PM Spent huge sums to win the trust vote.After all how did AMar singh previously treated as a dog suddenly joined the centrAL govt
CB BHAVE: Was involved in the IPO scam in which he colluded with big operators to deny small investors their rightful shares
I truely ws not able to find out what is his suggestion on the siuation. Yes the US economy is declining so abuse it fair enough . Yes the Global economies have been dependend on the US and hence if US fails worls will be shaken - So abuse US . Now what is the solution suggested ! Since dollar is not good we will trade in Chinness currency / Euro ??
Re: The Author is in Eutopia like asking the world to comuncate in French and Not English !
by kl on Nov 26, 2008 10:10 PM
Dude, Economies don't work that way. Mr. Guruswamy's article is not criticizing US. It is a critical analysis of problem on hand and how it can be solved. To solve problems we have to acknowledge the problem not politicize it. The problem here is world economy is manipulated till now by US. The classic example is how is US getting to print so much Money? Why they delinked Gold with Dollar and Dollar became a standard. What will happen if Dollar collapse. Should India follow the foot-steps of US or derive its own economic principles suitable for its people based on it's culture and livelihood? If you want to defend US no issues, but understand what the article means.
