"Always fall in with what
you're asked to accept. Take what is given, and make it over your way. My aim
in life has always been to hold my own with whatever's going. Not against:
with."
-
Robert Frost (American, 1874-1963)
Word for the day
Baleful (adj)
Full of menacing or malign
influences; pernicious.
(Source: Dictionary.com)
Malice towards
none
Kirti Azad has thrown hint
of traitor within the BJP.
Most observers who keep a
close watch on Raisina Hills are claiming to have unraveled the mystery.
What da' ya' say?
Finding the balance - II
As discussed yesterday (see here),
the incumbent government needs to find a balance between the laissez-faire model
that it advocates and the current variant of Nehruvian socialism model
that is in vogue.
The government has however not made any notable progress in
achieving this delicate balancing task.
Given the preferences of the newly acquired constituency of
socially and economically backwards, who have not been traditional political
supporters of BJP, the government's reluctance is understandable.
This reluctance is further compounded by the (a) opposition of
core right wing elements within BJP who prefer self-reliance (Swadeshi) over
foreign capital and competition; and (b) strong frequent attempts by the
opposition parties to regain their core constituency from BJP by constricting all
attempts to promote accelerated industrialization allegedly at the expense of
public and social sector.
Historically, the economic policies of the governments have been
materially influenced by the foreign policy considerations.
During 1950-1990 period, the economic policies followed by India
borrowed heavily from the erstwhile eastern bloc.
Post Uruguay round of WTO which coincided with collapse of German
Wall and disintegration of USSR, the economic policies of India have been
struggling to maintain a balance between the two poles. Unfortunately, we have
picked up the bad and ugly of both the worlds. The good being just sprinkled
sparsely.
The incumbent prime minister is trying to end this struggle by
siding conspicuously and unambiguously with the western world economies who
strongly advocate and follow free markets.
The primary positioning of the government thus appears little
skewed towards free market (capitalism).
However, on one hand the political compulsions are making
government to wear a facade of a socialist dispensation; and on the other hand
the internal compulsions of BJP are pushing it towards the agenda of unmindful
self-reliance.
In my view, it is still possible to find a balance between all
three pull forces e.g., (a) need for capital, technology and market access for
faster development and job creation; (b) need for promoting inclusion and
sustainability of economic growth and development and (c) need to achieve
self-reliance in key areas like defense, food, and modern technology etc.
Unfortunately, this tight ropewalk may disrupt the capital markets in the
short period. The free access to foreign capital and technology in
manufacturing and infrastructure building area will make many Indian businesses
that have been surviving purely due to protectionist policies, completely
redundant - causing widespread losses to investors and lenders. High public
social spending and increased pressure on corporates to spend more on inclusion
could also impact cost of capital and profit margins.
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