The Indian Economy Blog

Archive for September, 2005

A Virtuous Economic Cycle

Monday, September 19th, 2005

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 [...]

The KGB and Indian Democracy

Sunday, September 18th, 2005

I am not surprised but it is still news to me that the KGB attempted to steer the Indian ship of state. I grew up hearing rumors of the CIA doing all sorts of nasty things around the world, of course. The KGB, as the other spy in the real life adaptation of the Mad [...]

The Little Details

Sunday, September 18th, 2005

Responding to two of my pieces in the AWSJ (“The myth of India’s liberalization” and “Good intentions, bad ideas“), Karthik Narasimhan sends me an email which is worth quoting in full, so, with his permission, here goes: My wife and I are in Malaysia now on a short term assignment for our company, and every [...]

From “Nehru Growth” to Productivity Surge

Friday, September 16th, 2005

It is common knowledge that the Indian economy which was securely imprisoned since independence in 1947 has undergone a radical transformation and has seen a departure from its dismal 3 percent “Nehru Growth” to a more respectable 6 percent and more since the 1980s. There is little room for debate on that fact. What observers [...]

Korea Is Numero Uno

Thursday, September 15th, 2005

Guess which country’s the single largest foreign investor in India? It’s not any of the usual suspects — the US, the UK or even Japan . (Via reader Rasul Sharif)Newsweek reports In one whopping megadeal, South Korea has become the largest foreign investor in Asia’s second emerging giant, India. On Aug. 31, Korean steelmaker Posco [...]

Good Intentions. Bad Ideas

Thursday, September 15th, 2005

A version of this piece was first published in the Asian Wall Street Journal (subscription link). The road to hell is paved with good intentions—and nobody knows that better than India’s poor. There can be no better intention than removing poverty but, for more than half a century, a well-intentioned and bloated state has only [...]

I Want To Rock & Roll All Night..

Monday, September 12th, 2005

And write code every day?! The computer programmers arrived in the United States unknown to each other but united in their quest to rock. On the surface, they were not unlike many others who have left India over the past decade on the H-1B visa, a guest worker program for highly skilled professionals. They wore [...]

Perpetuating Poverty

Monday, September 12th, 2005

In a superb post, Primary Red of Secular-Right India writes: [W]elfare states create dependency, not wealth. They sustain poverty, not eliminate it. In effect, they pay people to remain poor. [...] When the Great Society debate was raging in the 60s, Daniel Patrick Moynihan (an early neo-conservative and later Ambassador to India) pointed out the [...]

Taking Economic Liberalism To The Masses

Monday, September 12th, 2005

Ramesh Venkataraman feels that “[t]he problem with reforms is not with the Left,” but with the Right. He writes in the Indian Express: Liberal economics must shed the taint of being the “dogma of the rich” that the Left has attached to it and liberalisation shown to be in the best interests of the broader [...]

Japanese Investment In India — Fast Rising

Sunday, September 11th, 2005

Brahma Chellaney writes in the Wall Street Journal(subscription required) China is driving Japan and India closer together. Tokyo, as if to make up for decades of neglect, is enthusiastically recognizing India’s potential as an investment destination and strategic partner. Reversing a long-standing pattern, Tokyo now provides more development loans to India than to China. Japan’s [...]

Worse Than Sania

Saturday, September 10th, 2005

So India’s the next superpower, eh? TN Ninan gives us a reality check: The inescapable fact is that even today India accounts for only 2 per cent of the world’s GDP, less than 1 per cent of world trade, less than 1 per cent of global investment flows and an even smaller share of global [...]

Why Should Location Matter?

Monday, September 5th, 2005

Suresh Venkatasubramanian of The Geomblog writes in to me and, as a tangential aside to another discussion, says: I’d make the claim that the libertarian point of view makes far more sense in India [than in the USA], where we’ve had 60 years of a paternalistic socialistic regime and desperately need a free-market swing, and [...]

Unfounded Fears

Saturday, September 3rd, 2005

“Fears that liberalisation will destroy our companies were proved wrong,” points out the Indian Express. “Now we fear FDI in retail.” We need not, of course. No more than we need fear the sun.

The Third Wave Of The Middle Class

Thursday, September 1st, 2005

Speaking out in favour of retail FDI, Nandan Nilekani writes: Over a decade ago, we did some far-reaching things that put the sparkle back in the eyes of our educated urban youngsters. What right do we have to deny to the millions of kids growing up today, the same opportunity in our fields, factories and [...]

Hurricane Relief

Thursday, September 1st, 2005

I am sure all of you are are cognizant of the disaster unfolding in New Orleans and elsewhere in Louisiana and Mississipi. If you happen to live or work in North America and havent done so already, I would urge you to take a few minutes of your online time out and donate to a [...]

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