[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: quick resp.-Hong kong

Dear Sureshji:
The wrong impression was given that I "dismissed" Hongkong
economically. I did not. As you will remember the issue was of polity
(administrative) and, in particular, whether issuance of currency be
done through private banks.  My response was in that context:  We hope
that sometime in the near future India will have a robust federal
structure.  In that model there will be powers and functions alloted
to the National government and the state governments.  Issuance of
currency would naturally be the function of the national (central)
government.  Further, in the same context, I envisioned that Banking
and commerce will be under state laws.  The only "bank" that the
central government will have would be the central bank or as it is
called the reserve bank in India.  Based on the principle that
government has some inherent functions, I was of the view that
currency issuance should not be privatized.  In a city-state like
Hongkong, the problems of federalism and law don't apply.  Hence the
model of HongKong in that context has no relevance.  Regarding, how
Hongkong developed its infrastructure, city government and economy --
yes, a study of those elements could be useful.  Yet, I was labeled as
showing an "Indian tendency" to dismiss miracles like Hongkong,
something, which you can see I never did.

Kush Khatri.

This is a posting to India_Policy Discussion list:  debate@indiapolicy.org
Rules, Procedures, Archives:            http://www.indiapolicy.org/debate/