July 11, 2010 Leave a comment
India survived the first wave of economic downturn because for several other factors in addition to socialist economic policies. Without taking the credit away from policy makers it was the Indian habit of saving and investing in assets. Unlike a lot of Americans, most Indians generally don’t live on credit all through lives. After the collapse of Soviet Union and the American model of capitalism whole world has realized that in order to be successful they need to follow a combination of both. A state supported and guided socially relevant capitalism. A system where free market forces promote innovation but government is active enough to prevent exploitation of people.
There are different frontiers to witness the hangover bleeding India.
Our honorable UPA government launching guaranteed employment schemes. It is a good initiative but issue is what kind of work are people doing in these jobs. They are building infrastructure projects with human labor which doesn’t stand the test of even monsoon rains leave aside their long term reliability. To add to it is the corruption through this scheme by various government departments on an unprecedented scale.
The government is waiving of farm loans. It is all like making people dependent on government . As a result even those who would have paid back have decided not to pay back. The money which should have been invested in projects to empower the farmers is being used to buy votes.
What a mockery of social welfare !!
The PSU’s are the vital strand of umbilical cord of socialism Lets see them sector wise…
Indian Airline or Air India or whatyever they are called now post merger is a glaring example of government’s insistence and bureaucratic mismanagement . A once profitable company is reeling under unbearable burden of losses leading it to a stage of seeking bailout.
The companies are still run the socialist way with rigid hiring and union rules. They have too rigid procedures for acquisations , buying purchases. The PSU’s still have social obligations imposed on them without any support in return for them. They are left to fight while being handcuffed.
I hope someone can find an aspirin for this hangover…