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API - Dissent / Consensus



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Administrative Note:
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Week's Agenda: Economy
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Quote from Prabhu Guptara :

WE GOT A COLLUSION OF THE RULING CASTES/POLITICAL ELITE WITH THE
INDUSTRIAL
ELITE.  BETWEEN THEM, THEY CARVED UP THE COUNTRY.  I REMEMBER SEEING
AN ESTIMATE
THAT, AT THE TIME OF INDEPENDENCE, THE BENEFITS OF THE ECONOMIC SYSTEM
IN INDIA
WERE CONCENTRATED AMONG THE TOP 5% OF THE POPULATION, WHILE BY THE
TIME OF
RAJEEV GANDHI'S DEATH THE PERCENTAGE THAT HAD THE OVERWHELMING BENEFIT
OF THE
WAY THINGS WERE ORGANISED, WAS SOMETHING LIKE 25% OF THE POPULATION.
THE
BABU-RAJ OR THE LICENCE RAJ HAD NOTHING TO DO WITH PEOPLE KNOWING WHAT
WAS BEST
FOR THE CONSUMER.  IT HAD EVERYTHING TO DO WITH LIMITING COMPETITION.
IN
TRADITIONAL ECONOMIC TERMINOLOGY, WHAT WE GOT WAS INSTITUTIONALISED
OLIGOPOLY.


Quote from Sanjeev :

In comaparative systems analysis in economics we do not recognize any
babu-raj
system. There is socialism or there is capitalism. I have never been
taught
about any other economic system in any Ph.D. course
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It seems to me that people are getting their ideas Mixed. Prabhu
Guptara uses the
word "collusion" indicating a derogatory statement but goes on to
state that the
percentage of population sharing the benefits of the economic system
of India, went
on to increase from 5% to 25% i.e. a five-fold increase. Surely, any
system be it
Socialism or Capitalism, should be complimented for achieving this
since this IS the
AIM of all Governments. Obviously, Babu-raj or License-raj, as he
calls them, knew
what they were about and by the simple expedient of limiting
competition and thus
insisting on the proper use of available resources, succeeded in
bringing about the
desired result.

Unfortunately, by using such terms as Babu-raj and License-raj, PG
throws some
confusion in the minds of people such as SS is aiming to invite to
comment upon
and act as Advisors some of whom are foreigners and therefore
unfamiliar with
connotations of these terms.

As for Sanjeev, he has concluded once and for all that the system of
economic
education as devised in America is the "greatest & Best". This in
spite of the
debacle that LTCM has just gone thru' - there being TWO Noble Prize
Winning
Economists and an ex-Fed Governor on its board - all Americans !

So where does that leave us ? I think the Babus did a fine job . What
is
your opinion ?

My suggestion is forget Socialism and Capitalism and all other ISMs.
Just devise
a system that delivers the maximum good to the maximum number of
people
and call it INDIANISM.  This will fit in well with Vasudhaiva
kutumbum - all world
is a Family and also do away with the sqabble among the usually
peaceful
IPI-fraternity.

I wonder what SS has to say about the dollar losing 15 % of its value
in two days
of trading in the "free market" - if they are Truly efficient, then it
doesn't bode well
for the future of US - economy. But I Know, they are not efficient and
I agree that
US will keep doing well in the foreseable  future. After all, the
resource-plunder they
have resorted to in the past, not to speak of the more than 160
billion dollars
"extracted" from Saudi Arabia for providing it with "security" and
from Japan because
it did not participate in the free-world "rescue" of "raped" Kuwait
are sufficient to
keep the wheels of its industry churning for quite some time. And
before that money
is exhausted, there will be other "openings" for similar forays
elsewhere. Remember
what the monkey did to the loaf of bread over which two cats were
fighting to divide
it into two "exactly equal" parts ? Therein lies the dilemma and
solution to the
problem of the division of economic-cake.

Regards,

Vinay

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