INDIAN ECONOMY Review / Restructure / Revolutionize Prof. Dr. Madhavan – Community Service Volunteer CEO / CMD - Universal Young Minds, People XL, BIST – CHD, Bangalore India In the last few weeks, I have been reading so many views in some leading Business Newspapers / Journals, on the above Topic. Since 1990, we are on the Economic Highway of LPG – Liberalization, Privatization and Globalization. Now more than 20 years passed by; some of the results are: 1. CAD issues (Current Account Deficit) ; this means the stock of Dollars are diminishing. Exchange rates have become scary. All imports have become most expensive. Petrol bill will be heavy. 2. The gap between Rich & Poor has widened so much, Economic Pundits do not know, what had hit them. Prices of Basic Human essentials have gone up many times higher, leading the State Govts. to supply Free Rice, Wheat, Jowar, etc; may be to keep the Vote Banks intact. OR to prevent People dying out of poverty / hunger. 3. Employment is almost flat, in spite of our people work especially in IT for almost 10 – 12 Hours a day, a very rare phenomenon in the World. This will have a telling effect on the health & wellbeing of our citizens, in the long run. These are just a few to name and you probably know many. What do you think the success of LPG? We are in a severe Debt trap, to lighten this effect we have brought in ‘FDI in Muti brand Retail’. Walmart / Tesco / Careefor ? will be poised to become Rich out of Poor us. Let me admit that I am not an Economist, but see their effects on Poor people! I am sure there will be a sigh of relief for the ruling party to be voted out in 2014 and their Top Economists Team including, Dr. Mohan, Dr. Montek and Dr. Rao – or I don’t know. In this context, there was some kind of debate between two great Economists, both from India but not living in India; so they are not affected much. Some journalists have even coined a new phrase as Senology & Bhagvanomics. Here what was focussed was – Wealth Creation & Poverty Reduction besides improving the Standard of Living. We all know the effect now after 20 years. Humans are intelligent sometimes much more than Thou (means God). They will attribute this to Global and Nature’s Phenomenon and not Indian! It is time to go to the Basics. Economics spin around Supply & Demand, keeping at the centre the People. People are the market, they demand and you (Business, Trader, Govt., manufacturer) supply for a reasonable margin called Profit rate or Interest rate. Expand the market creating more demand and Supply Efficient at affordable price and acceptable (or attractive) quality, is the root of Economic growth. Now imagine a bunch of Greedy National / Business / Global Leaders, what will they do? 1. Create Poverty; the driver for Demand. Sustain it at all costs, Call it World Economy. Measure it by Montek Formula (Rs 27/- per day is enough to live in India, This is above Poverty level) 2. Create variety of Supplies; Entice People thro’ aggressive Media / Internet / Online / Social Network/ Celebrity Sensations / TV realty shows – say that there is more to buy to improve standard of living. Give examples Anil babu living with his 5 family members in 27 storeyed Flat with Helipad and 70 servants with monthly Electricity bill alone at Rs 1 Lakh. 3. To supplement, the State Govts. have started giving Free TV, Free LapTops, Free Pepsi/ /Coke, Buy 10 take 1 free, Bundled soaps, Tours, Combo Foodies etc., 4. Additionally requesting Bankers to supply Money Free (low interest, pay after one year, Buy Smart Phones for ZERO , everything.) People not there – Economy not relevant. Poor People there – Economy relevant. To sustain they use Rich People / Corporate giving them Free Money collected in the name of various Insurance instruments, Bank papers, Notional Stock / share values etc. It is Free Money because it is created without any material or labour input. If the purpose of Economy is to create wealth – the key partner is Mother Nature. Nature create more than 90% wealth than humans (incidentally Human is also nature). For example our Food is a product of nature till today with all the advancement in Science & Technology. No Human can produce a food synthetically without affecting the Health of a person. And what is our return to nature? Kill & Torture her day by day so that one day we have to buy water & air for reasons of Economy! Wealth & Poverty are synonymous. They are relative. Let us consider all natural resources of Nature in the world as ‘One Unit of Supply’ Source and all human beings of this World as ‘One Unit of Consumer’ demand. Let us distribute Wealth & Poverty among all Nations in such a way, we all live in harmony and not create a World Economy where ‘Dog eating Dog’ culture comes to stay. We are all ‘Born Rich’; Economists made us to ‘Die Poor’. Simplify: Thinking, Talking and Living, to create a happy World for now and for the future! ____________________________________________________________ Mobile: +91-98860 67232 Email: [email protected] , Website: glowhy.org
Posted on: Thu, 08 Aug 2013 10:04:35 +0000