ET2000 ⁽¹⁴⁾

In spite of the public confidence he enjoyed, or perhaps because of it, Pundit Nehru used every opportunity available to him to explain to the lay public and intellectuals alike the rationale behind the big economic initiatives he had been undertaking or planning to undertake. Economic Times, March 29, 2000 When Lally Weymouth of the Washington Post asked Prime Minister Vajpayee during a recent interview how he would like to change India and what he wants to be his legacy, Mr. Vajpayee was unequivocal in his reply, “I would like India to become a developed country as early as possible.” This answer would, no doubt, be music to the ears of all Indians, especially the younger generation, which aspires to avoid the economic fate suffered by its predecessor generations. And if we go by the economic-reforms agenda that Mr. Vajpayee has been unfolding, we can scarcely doubt his sincerity and commitment to the goal of turning India into a developed country one day. Nevertheless, the glacial pace with which Mr. Vajpayee and Mr. Sinha have been moving is unsettling. Not only the…

India's tariff liberalization has come to a virtual halt. It is time to resume it in the 2000 budget. Economic Times, February 23, 2000 Slowly but surely, Prime Minister Vajpayee and Finance Minister Sinha are laying to rest the doubts about their resolve to implement economic reforms. After returning to power, their first major victory came when they successfully challenged the truckers’ strike and raised the price of diesel oil. Soon after, they confronted head on a strike by insurance workers and enacted the insurance bill, thus, opening the sector to increased competition from domestic as well as foreign sources. Most recently, they have begun to move decisively on the privatisation front. In what can be termed as the first true privatisation, the government have transferred 74 percent of their stake in Modern Foods into private hands, principally the Hindustan Lever. Even the Indian Airlines is now up for sale. Though genuine concerns remain with respect to the manner in which this privatisation is to proceed, the mere fact that the government is willing to transfer 51% of its stake…

The TRIPs Agreement has become an effective instrument of promoting more non-trade agenda by labour and environmental groups. They say the WTO must now do for workers and nature what it has already done for corporate interests. Economic Times, January 26, 2000 In a provocative column last week, Swaminathan Aiyar (ET, January 19, 2000) took the view that the inclusion of intellectual property rights (IPRs) into the World Trade Organization (WTO) was a good idea after all. He argued that IPRs have now become central to the evolution of world trade and as such belong into the Geneva-based institution. The veteran columnist has such good instincts that only rarely can one disagree with him. This is one of those occasions. At the outset, let me state that the opposition to the inclusion of IPRs into the WTO does not imply opposition to IPRs. Though India opposed the Agreement on Trade-Related Intellectual Property Rights (TRIPs), which will eventually bring IPRs under the purview of the WTO, it has long had world-class legislation in copyrights. This legislation meets or exceeds the standards…

The road will be much rougher as reforms move into difficult areas such as banking. Nevertheless, the double-digit growth appears well within the grasp of the country. Economic Times, January 12, 2000 My millennium wish is for India to achieve a double-digit growth in the forthcoming decade. Having decisively freed itself from the trap of the ‘Hindu rate of growth’¾a term coined by my teacher and brilliant economist late Raj Krishna to refer to the country’s abysmally low growth rate during the 1960s and 1970s¾ the country should now join ranks with the East Asian tigers, which now include China. On the surface, the desirability of double-digit growth rate, as opposed to its feasibility, seems obvious. Yet, the case for it is not uncontested. In India where concerns with poverty reign supreme and many continue to see a conflict between growth and poverty reduction, even the desirability of high growth rates is under constant attack. Sceptics argue that a development strategy that focuses on growth counts on prosperity “trickling down” to the poor and is predestined to fail the latter. It will only make…