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Re: Sitaramayya's mail



I just have a few comments to make with respect to the message
posted by Sitaramayya:

>My point: Study the lessons of the liberalization in India for the last 10
>years carefully. What happened? The bottom line is that the middle class
>numbers increased. They are more prosperous. The lower class numbers also
>increased. Their lives are much worse than they have ever been.

Can you quote any authentic sources to support this? Has the poverty really
icreased? I am asking this to know, not to challenge you.

> And finally, liberalization created more poverty in the villages than ever
>before. That is what unregulated capitalism gives you. Do you want more of
>that? Till it trickles down to others!

I guess we have come to a consesus on this issue: we would need a optimally
regulated capitalist setup. I don't see how you felt that we don't want
any regulation at all. Please refer to the debates on regulation in the 
archives.

>Since you have chosen to debate rather than participate actively in the
>society, think of how you can raise the standards of living in the
>villages. 

This is probably true in the case of a few in this group for a short while
but not all or forever. Like you, I don't see any point in merely talking.
At the same time, we need to sit together and draw out plans before we jump
in. I am in this precisely for this reason.
The other thing is none of us on this list claim to know everything, and
we are doing this in good faith that we can arrive at the 'right' answer(s)
through this exercise. If you find that something is lacking in our plans
so far please suggest alternatives.

>The globalization mantra you have all been sold on is designed
>to sell western goods to third world markets, not to bring prosperity to
>them. If these policies go on for another decade or so, there will be
>deeper structural problems in Indian society between haves and have nots. 
>Prosperity of a few in the midst of poverty of many cannot be sustained.
>The only institution whose job it is to look after the interests of the
>majority of the people is the govt, since it represents the majority of
>the people. 

>Please don't tell me about school book capitalist philosophy. Don't waste
>your time writing about trickle down economy either. Write to me only if
>you have specific plans on how you can raise the living standards of the
>masses. 

>Your language on the Intelligent Small Government, I am sorry, but it
>makes me laugh. If you want an effective government, it has to be staffed. 
>While the Americans want a small govt, they also demand that USDA
>send inspectors all over the world to make sure that imported fruit
>and vegetables are clean and safe. Guess what. It needs more staff. The
>same goes for every activity of the govt.

I would really appreciate it if you could suggest a way to keep a huge
government and still be very efficient.

Prem.