global developments-controversy of growth vs inflation in india:
Recent events as the after math of 2008 global fiancial crisis,more particularly ,growing concerns about US and European debt as well as sovereign debt crisis situations and further more recent down grading of US credit rating from AAA to AA+ stage and its likely effect on the global confidence of US dollor as world reserve currency and the likely impact on indian economy and polity and the what policy ought to be adopted against what policy is being adopted is the point for consideration in this brief article.
Theorically, If there is a perfect global free competitive markets across all political borders,there is no possibility of any global financial or economic crisis situation as the rational behavour of owners of factors of production with perfect information on prices of production of all factors of production move to places of investment destination which allows them reap the profit maximisation to bring about global equalisation of profits, and wages rents or interest on capital and dissipate the crisis situation. this law is applicable with domestic markets as well as global/internationall markets.
A genuine global efforts to dismantle the trade obstructive political borders across all countries to promote global free markets under a global sovereign preferably reformed UN while not much disturbing the local automous city states,tribal states,nation states with guaranteed civil and political rights to their own citizens to bring about a genuine global citizenship on earth, to distribute the gains of tecknology to all global citizens irrespective of national origin should be the political agenda of new generation politics.
But in reality, the perfect competitive market environment is neither available any any country or global economy and imperfect comeptitive and infact monopoly practices at the instance of non state as well as state actors are all pervading across global national borders. No country is exception to this rule except the relative degree of free competitive markets and with it, its concomiitant legal structures encouraging or discouraging the global free competition. India was and is more afflicted, though better since 1991 policy reversal, with the imperfect competitive markets than the global average.The growth and inflation,corruption is to be dealt with in the light of this basic parameters.
Given the political and economic parameters and demographic composition of global population with their own traditional prejudices and aspirations, India should act within the crisis period to meet the global challenges, towards realisation of its potential energy through appropriate policy prescription. It should ever review its political ,administrative structures,instituions,leadeship questions, econnomic institions, controlling property structures, both existing legal and constitutional provisions so that no wastage of national energy on unproductive things takes place.
US has the best constituional and legal machinery fitted for a nation state but has outlived its utility in the face of globalisation challenges and the politicians and public opinion have refused to change their political outlook to go along with globalisation process by sticking to national interests in opposition to the tidal wave. The global financial crisis in US and Europe is an offshoot of this mindset not to change to globalisation phenomena with same speed of its own tecknology towards more global free competitive markets in all factors of production and its persistence in pracising the more pronounced protectionism in all areas of market economy and only encouraging the free competetion in banking and fanancial sector as is manifested in the attitudes of US and Europe stands in Doha round negotiations in WTO on agricultue,on movements of sevices,outsourcing, through restrictive immigration laws, through restricitve tecknology tranfers and intellectual propety issues, on aid to millennial development goals etc, and more particularly its attitude towards UNO,UNsecurity council democratic reforms.This lesson should be kept in mind by all law and policy makers in all countries across globe including India aspiring its own wayof global leadership.
Follow Mr S. Lakshma Reddy, Advocate, A.P. High Court at http://slakshma.goforthelaw.com
No comments:
Post a Comment