Thought for the day
”If you can look into the seeds of time, and say which grain will
grow and which will not, speak then unto me."
-
William Shakespeare (English, 1564-1616)
Word for the day
Maudlin (adj)
Tearfully or excessively sentimental.
(Source:
Dictionary.com)
Teaser for the day
Does Arvind Kejriwal know that you could only buy the
things which are put on sale by the present owners!
Yet another midway diversion proposed
A recent Deutsch Bank research report highlighted that India is
witnessing emergence of a "clear and internally coherent economic
model" that includes "export oriented manufacturing, heavy
infrastructure building and urbanization". in a material shift away from
"India’s current services-driven growth trajectory" This emerging
model is found akin to "an East Asian growth model based on the mass
deployment of labour and capital".
The DB analysts believe that "The new strategy will require
keeping the Rupee weak and dramatically expanding the financial system.
International experience shows that the model can generate growth and jobs, but
sustaining such rapid financial expansion is not without risks."
The report highlights that while India's export growth so far
has been driven by services, auto sector has demonstrated that with right kind
of policy support Indian enterprise could do well in global manufactured
product market also.
The key to shift would be our ability to substantially augment
energy supply to the industry and "ability of the domestic financial
sector to sustain rapid expansion".
The Prime Minister Narendra Modi in his public discourse has
strongly emphasized on the need for expansion of manufacturing sector to create
jobs for millions of youth joining the work force every year. In fact during
his election campaign Congress leader Rahul Gandhi had also echoed the same
sentiments.
In April 2013 in a series of five articles (see side bar) I had
expressed my concerns over frequent midway diversions on core issues taken by
Indian policy makers.
I still feel that he current socio-economic mess in the country
is outcome of total adhocism in policy and program formulation &
implementation, non compliance with the comprehensive socio-economic structure
conceived in the Constitution, and lack of committed leadership, especially in
past three decades.
The political establishment has so far mostly failed in
justifying the midway diversion from the prescribed socialist framework taken
in mid 1980’s. The obduracy shown by successive governments in relinquishing
enormous amount of discretions enjoyed by political establishment has been a
consistent obstruction in the way to evolve the intended quasi capitalist or
neo-socialist policy framework that would lead to sustainable and faster
growth.
A brief spell of high growth, which many may find accidental in
hindsight, has probably misplaced the popular aspirations and thus added to the
complexity of the problem.
I feel the country needs to comprehensively review the
constitutional framework for evolving a wider consensus on the policy direction
for sustainable socio-economic development in the current context. Blindly
following East Asia model of capital and energy intensive growth may not be
ideal in our context.
I will write more on the current flavor "Make in
India" next week.
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