ENGINEERED INEQUALITY Full Video: https://youtube/watch?feature=player_embedded&v=U42zOfxzICs 1. Decade of Destruction: https://facebook/photo.php?v=255590124564962 2. Extractive Institutions: https://facebook/photo.php?v=752080808135918 3. Fair Share: facebook/photo.php?v=202087306468607 4. GoldPlating: Fifteen per cent was the kickbacks payable to the Minister concerned for approving every road contract. Add another fifteen to the bureaucracy and local politicians. Add another five to seven to bankers, lawyers, consultants and agents to procure funds. What we have is a staggering 35-40 per cent additional cost to every infrastructure project. That implies a road project costing Rs 100 crore would in effect be a Rs 140-150 crores project. Naturally, the toll for the stretch would not be Rs 100 but Rs 150. This has profound implications for the Indian economy. This extra Rs 50 in toll levy for every 100 km has a cumulative effect on the manufacturing cost. The net result – imports from most of our neighbors of several items [despite cost of transportation and customs duty] are competitive than manufacturing the same in India. Forget competing abroad, Indian manufacturing has become uncompetitive in India! There is another dimension to this issue. Somewhere down the line these costs were funded, mostly by our banks. Corporates altered their top-line as well as bottom-line to keep their banks in good humor. The Banks in turn suspended their sense of disbelief. As chartered accountants we too played ball in creating a mini-Satyam in most of India’s corporates. mrv.net.in/index.php/articles/indian-economy/item/371-indian-economy-comes-to-a-fullstop
Posted on: Sat, 02 Aug 2014 17:27:12 +0000
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