By Wanshan.B.Khardewsaw
All indices in India show signs of recession. With our GDP growth almost reaching the decadal lowest, our industrial sector going by almost a zero growth rate, and the Bombay Stock Exchange’s (BSE)’s continual fall if not crashing, we are not invulnerable or untouchable by the ongoing crisis that the rest of the developed and developing worlds are going through.
The global economic meltdown and the exploding financial crisis which has threatened the dominion and supremacy of the Dollar and the US economy has also questioned the survival and existence of the mighty Greeks. It also questions the sustainability of the much promised European Union which is now knocking at our doors, and is literally threatening India and its economy.
Stock Markets all over the globe have tanked, leaving millions of the working class out of work and out of job. The National debt of many a country is exploding, with borrowings reaching 100% of their Gross Domestic Product. Vladimir Putin, the Russian Prime Minister accused the US of living beyond its means and of becoming a parasite to the Global Economy. This is now applicable to many more countries, particularly in Europe.
Because of this huge European and US financial debt, the Global Economy is now threatened by a new crisis. The question that we should all ask ourselves is, if mighty States like the US and the EU have to literally kneel down to the ongoing financial crisis, can we withstand the situation independently?
How many of us still remember those notorious days of the drought of the sixties, when we went through the huge crisis of shortage in food grains and food supply. How many will recall how India was dubbed as nothing more than a beggar. But with the present situation, when we are in a position to be a part of the bailing group (G20), would anyone dare to consider us the way they looked at us 45 years ago? On the other hand imagine how the world will react and what the world will give us back if we refuse to even contribute 2.22% of the total bailout that the IMF is generating for the European Union? We should at least be a little bit more generous and rational, considering the fact that after all our Prime Minister is pledging only $10 billion out of the whopping $450 billion bailout.
How would we expect others to help us if we decline to help others when they are looking to us for help? Are we not vulnerable to the present global economic and financial crisis that has affected almost each and every trading nation. Do we even realize that this is a global problem, peculiar to none? We should realize that it is nothing short of a virus which is affecting all nations and countries which are interlinked through international trade and commerce.
It is sad to see how we complain of having an invisible Prime Minister who is only visible when he is outside the country (he is more visible in Rio and in Laos than in New-Delhi). Shouldn’t we be proud if we have a globally visible PM? Do we realize that President Obama himself commented on our economist PM and how everyone in the UN Assembly listens when he talks because he is someone who knows when he talks about economics policies?
Let’s not be hypocritical but more logical like someone in the advertisement says. Have we forgotten his magical strategies, now when we have benefited so much from his liberalization policy? We should realize that we are actually still enjoying the benefits of his liberal ideas and framework. So for Indians to criticize and question his wisdom for this decision in the G20 summit would be more than betrayal and dishonesty!
We have had enough of political bemoaning and bestirring. Let’s not forget how he has practically saved India two decades back when he was our Finance Minister, through his historic 1991 Policies, when we almost had nothing left and nowhere else to run. Why should we question and doubt his caliber now? Whether or not he explains his stance after his return from Mexico, I so believe that he does have a very clear and rigid formula for this, which we would all realize sooner than later.
This write-up should not be misinterpreted as being politically motivated or directed. It is nothing more of a tribute by students of Economics to one of the greatest contributor of the subject in the country, both literally and practically (indirectly and directly). (The author is a Lecturer of Economics at Sankardev College)