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Re: http://www.cato.org/pubs/pas/pa-170.html - Foriegn Aid and

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Please help make the Manifesto better, or accept it, and propagate it!


Hi Ashish,
Excellent article this one although I thought that this article is
more to illustrate the evil effects of Foreign Aid (from US, World
Bank, IMF and others) on a socialist India than on the planning of
political ideology by the erstwhile leaders.


On Tue, 05 Mar 2002 Ashish Hanwadikar wrote :
>Please help make the Manifesto better, or accept it, and
>propagate it!
>Hi all,
>This was the stupid vision of Mr. Nehru (Development of Indian
>is an mathematical problem to be solved - such an arrogant
>attitude can
>only have disastrous consequences): Here is an excerpt from the
>given in detail below:
>The underlying vision of Nehru and his associates that
>has molded India's economic policy since independence is
>further illustrated in his comments to a prominent Indian
>journalist in 1960:
>We have accepted the socialist and cooperative
>approach . . . the planned and scientific approach
>to economic development in preference to the indi-
>vidual enterprise of the old laissez faire school.
>. . . Planning and development have become a sort
>of mathematical problem which may be worked out
>scientifically. . . . It is extraordinary how both
>Soviet and American experts agree on this. If a
>Russian planner comes here, studies our projects
>and advises us, it is really extraordinary how his
>conclusions are in agreement with those of, say,
>an American expert. . . . The moment the scientist
>or technologist comes to the scene, be he Russian
>or American, the conclusions are the same for the
>simple reason that planning and development today
>are almost a matter of mathematics.(8)
>by Shyam J. Kamath
>Shyam J. Kamath is an associate professor of economics in the
>School of Business and Economics, California State University
>Executive Summary
>With a debate now raging over whether further foreign
>aid programs financed by U.S. taxpayers are justified in the
>post-Cold War era, a review of the development experience of
>the recipient of the largest amount of foreign aid is in-
>structive. India has received more foreign aid than any
>other developing nation since the end of World War II--esti-
>mated at almost $55 billion since the beginning of its First
>Five-Year Plan in 1951.(1) It has long been an article of
>faith among development economists and policymakers that
>foreign aid is a necessary and central component of economic
>development, yet the record of Indian economic development
>since 1947 belies that view.
>India has had one of the lowest rates of growth of all
>developing countries and remains one of the poorest countries
>in the world after almost 45 years of aid-financed, centrally
>planned development. Foreign aid has directly financed and
>sustained India's centralized planning and control framework
>and thereby financed the growth of one of the noncommunist
>world's largest and most inefficient public sectors. In
>1988-89, 101 of the country's 222 largest public-sector com-
>panies recorded losses and contributed to a federal deficit
>five times as large, in relative terms, as the U.S. budget
>Read rest of the article at

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