Something somewhere has gone wrong! Farmer’s interests to be safeguarded first. SEZs are now the buzzword that had created almost an earthquake of sorts! Everyone who is anyone in the government or outside in the corporate sector is pitiching for vast acres of land, prime agricultural land in most cases for what seems to be a still undebated case for creating so many SEZs!

What has caused genuine concern is the fact that there has been a flood of sorts in “grabbing” so many SEZs. All over the world there are only 400  SEZs and China has only 6, India has already crossed 200 approvals within a year, 48 of them in Maharashtra alone. Given the sort of controversies the SEZs has created and the involvement of companies like Reliance, there is reason to think that something somewhere has gone wrong.

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To make the co-operative bank network to become more efficient and compete!

To attend to the co-operative banks and to accelerate credit to the farm sector.

Yes, this was an old proposal but somehow left behind in the current fashions of economic reforms. Even now, see the neglect of agricultural development in the over-all scheme of high profile jargon about the economic reforms. Our current crop of ministers, the bright and the dull, don’t even know what they mean when they talk of economic reforms. The government, led, yes, by an economic expert or experts don’t set out in effective language what they think are the priority sectors. There is no vision, no conviction either. It is all, it seems, just a patchwork of some priorities, often driven, as seen lately, by the interests of various corporate groups! That is one reason for the sudden rush for SEZs! To the exclusion of the whole perspective, whole number of significant interest groups, perhaps the most dominant in our opinion, would be the farming sector. But unfortunately, there is no such view or vision, let alone any basic belief, or conviction!

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The new competition among the States is welcome!

Intelligent Chief Ministers can make the difference!

Economic development is now on everyone’s mind. Only fast economic growth, intelligent use of govt funds, adoption of new technologies, use of human resources, in what is often seen as the merging knowledge economy, we need knowledge workers, to earn the sort of high salaries as earned today, say in the Silicon Valley of India, Bangalore. The average age of the software engineers is now just 23! If at that age an youngster can earn Rs.18,000 per month, then it becomes the standard aspiration for other youngsters.

That is how India of the youth, the NextGen, as it is termed now set the aspiration levels high!

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Finance Minister can’t do much in such matters!

Prices of food items rising, inflation a worry the government most just now! There is now an emerging crisis on the economic front. It is the inflation, rather the rising inflation. The word inflation is a difficult word. We don’t think that except some economist experts like Prime Minister of other professional economists inflation is intelligible. Certainly, a politician like the Finance Minister or any other Minister, the subject would be intelligible only as much as his economic advisers give him what inflation is all about, the measurement and the ways to control it.

One obvious way, the monetary way to control rising prices is to tighten the money supply in the system. But then the monetary approach is only a veil, a way of  hiding the harsh economic realities, the market realities is all the general public and the Leftist politicians are concerned with. Whenever there is arise in prices or a runaway price rise in several sensitive commodities like food items, then there is a general hue and cry.

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It is now an American  discipline!

When I studied economics in the late Fifties economics was essentially an English discipline.  It is no more! There are not  many  students now to study economics or do PhDs!It is now more an American discipline. In India economics still has some glamour but things are changing very fast here too. Economics doesn’t give immmediate jobs! In my time it was the British universities, more so the Cambridge University that dominated the discipline.All the  bright brains were there. Keynes, his colleagues(list is long) were very around him. There were fierce arguments, about economic theories propounded by Keynes. Economic theory as such was undergoing change since the time of Adam Smith,the first propounder of economics,as a self-driven,wealth creating process. He of course took it from the French Physiocrats.  Now in Keynes time it was all theory of equilibrium that explained  the  balance of  economic forces. Prices, demand, supply, fiscal  deficit, rate of employment, growth etc. Then Keynes introduced  the famous line:”in  the long-run we would all be dead”. So he introduced short-term,practical, interventionist ecnomic theory. Amartya Sen is a descendent of this theory only, in spite his taking the theory forward. Sen would be remembered for his contribution to the construction of the Human Development Index. However, since Sen there have been  new revolutionary theories of economics that had gone on to win Nobel Prizes. and thus new rcognitions.One is Paul Ormerod who won the Nobel Prize for economics in 1993. Read More →