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"Happiness can be defined, in part at least, as the fruit of the desire and ability to sacrifice what we want now for what we want eventually" - Stephen Covey

Thursday, September 01, 2005

questions unanswered????

this is in relation with the indian economy,since you have an in interest in the economy probably you could answer them
1.being an economics student,i have a question how in the world has the inflation of our country come down to 3.8%. it used to hover around 8% in july 2004, especially when the oil prices are reaching record levels ,the prices of metals are going up and the prices of all raw materials are going up,including real estate etc.dont you think it defies logic,when i asked my dad he told me that it probably only includes essential commodities.even the bank rates havent  increased much,probably the govt is artificially keeping the prices low through subsidies or price regulation.dont you think it is harmful to the govt who is already running on a huge fiscal deficit,is the govt's policy right.
2.we all thought that privatising sick units will yield benefit but look at the recent power crisis in delhi,reliance is responsible for the power distribution there.when the rates were hiked the city dwellers were up in arms,their argument is "either we dont get regular supply or we get costly power". i support the case of the urban people cause its them who pay the bills whereas almost 60% of the power is lost in rural areas (theft or nonpayment).you cant blame reliance as well cause how are they going to fill up this deficit of 60%.when the pressure increased the govt has again taken the easy way out - subsidies (wat about the fiscal situation)
3.i could even digest this, if the free power is used for productive activities in rural areas.most of this free power is used for watching television, movies etc.(the television households has increased three fold in the last decade)in some villages 80% of homes dont have proper drainage facilities but they have television.
4.the present leftist(or left leaning)govt has introduced many schemes for the rural areas ,will they ever work cause there are many schemes introduced in india for rural development , have they ever worked,there are many banks in india for providing cheap credit to farmers like  NABARD,RRB,COOPERATIVE BANK etc.they are usually unable to recover the loans,
5.probably we should follow what is followed in china cooperative farming , where the farm belongs to the govt and the produce belongs to the workers.in this way we can prevent exploitation of the workers by the village mahajans etc.india has the lowest per acre productivity in the world.thats the reason  why the govt is giving cheap credit to the farmers so that they can get modern technology to increase productivity,but this policy has failed
6.historically, the policies of the govt look perfect on paper but it usually fails on implementation,
india lives in its villages,60% of the population is below 30 years,a consierable proportion of them live in rural areas ,the only way the ovt is going to find jobs for them is in the small scale and medium scale sectors(cottage industries). these activities are labour intensive and thus provides a lot of employment opportunities.
7.what are the causes for the failure of the rural policies ,inspite of careful planning.some say its roots lay in the existence of the caste system in india, its exploiting nature,making it impossible for the schemes to reach the poor people,in such a case dont you think that communism(i will probaly regret telling this) is the best way to move forward in agriculture like the mthod of cooperative farming in china.
8.finally,what are your thoughts on above points and do u thin it requires a change of policy or it is a gradual process of changing the mentality of the people. or in short the problem lies with the govt or with the people???

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