The Indian Economy Blog

September 19, 2005

A Virtuous Economic Cycle

Filed under: Business, Growth — Amit Varma @ 11:46 am

Rajat Gupta, speaking to the UN general assembly on September 14, said:

[E]conomic growth, and our ambitions for the eradication of poverty, depend upon the energy and drive of business and commerce. In fact, I cannot envision an effective development strategy that is absent of — or uninformed by — the private sector. Yet when we examine where development has succeeded, in every case business has been the engine of development.

Because business kick-starts a virtuous economic cycle, new enterprises are formed, new jobs are created, new skills are gained, and incomes begin to rise. Soon, growth and productivity follow, spurring more innovation and efficiency, and bringing the products and services that people want and need. In parallel, people gain opportunity, empowerment and dignity.

Read the full piece here (pdf file). Good stuff.

(Link via email from Arun Simha.)

3 Comments »

  1. Partisanship

    He makes a valid point as being a principal cause for failure. It is a mindset…for progress….for opening up to embrace all views….explore avenues to work togather…to building a community of future employees and customers.

    Comment by Mani Pulimood — September 20, 2005 @ 9:55 am

  2. A recent UN report says in countries such as Africa, Asia and Latin America limited progress was made in meeting pledges to reduce poverty and disease set five years ago: further a UN report states that 40 per cent of the world’s people live on less than $2 US a day.

    http://www.cbc.ca/cp/world/050918/w091834.html

    Comment by Mani Pulimood — September 20, 2005 @ 11:56 am

  3. Oil the Nuts and Bolts - Basu on BBC

    http://news.bbc.co.uk/2/hi/south_asia/3819315.stm

    Kaushik rightly points out the time taken to set up a new business in India is too long when compared to the that of the Singapore or Hong Kong. Then again he says to shut it down takes a big chunk of ones life.

    He points out the need for addressing issues such as Efficiency, Corruption, Fiscal Planning and Poverty.

    Comment by Mani Pulimood — September 21, 2005 @ 10:55 am

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