Your performance: In response to Kaushik Basu ji’s interview
मई 23, 2012 1 टिप्पणी
Kaushik Ji, A number of ideas make sense economically, but do not unfold in the expected manner. Situations change and different variables operate, so an economist needs to unlearn, study the situation again, develop his plan and then execute. This is a big reason that study of Economics has been an evolving science since eternity. I can’t tell you better that a number of steps, which were considered good 50 years ago are considered bad economic practices today. The same will be true 50 years later as well!
Your evaluation of your government lacks honesty. Your government’s transfer schemes have become “schemes” with no “real” skill development and no infrastructure development. Your government has failed to develop any new sector for exports. Even today we rely on textile, gems & jewelry and software services for exports. Your government has failed to balance both current and capital accounts. Singh Ji’s government had inherited a current account surplus but is now staring at a huge deficit. You can blame it on people like us who burn gasoline, but wasn’t your government dreaming when it expected that times can’t change?
When your government first presented Retail FDI, it argued with “FDI needed to develop back-end infrastructure”, which we all know is a lame argument. The back-end consists of things where an average Indian entrepreneur can invest if your policies are conducive. For example: if electricity is available, if roads are in good shape, etc. Moreover, there is no space technology that Walmart brings. Today, however, you present an argument of “farmers will benefit” and “exports will have a boost”. Can you please cite an empirical evidence where small farmers have benefitted from organized retail? As a matter of fact, small farmers are the biggest victims of big retailers in their search for margins. As far as exports boost is considered, why can you not explain that existing Indian retailers have failed to export anything? Most likely, only textile will be exported, which happens even today, and everything else will be imported and “dumped” by foreign retailers. Why? Because we are inefficient producers due to tens of reasons that we all are aware. And that will not change simply because Walmarts grace India with their auspicious presence. I may not oppose FDI in retail but your reasoning unfortunately has no logical basis.
While I wish to write much, I must say that your government and its advisers, including you, have disappointed us thoroughly. It is time that you should realize your pathetic performance yourself. Politically you may not leave us before 2014, but please bring in some “outside” help to augment.
Hope you and your government will not disappoint any further.
guunjan 