Saturday 6 October 2012

Economic reforms as political capital

At once many many economic reforms have been made at a very high speed, Foreign direct Investment has been raised to 49% in Pension bill,there will be a regulatory authority of the government.Foreign Direct Investment in insurance sectors has been made 49%, from 26%. A bill has been made to amend the Forwards Contracts(Regulation) Act to strengthen future markets. This is an agreement to buy and sell goods (food stuffs or metals) on a future date but the price would be set at the present.More amendments were made like that one on Companies Bill which is meant to overhaul corporate governance norms. This amendment would make directors more accountable and give shareholders more power.The strategy is that, if these reforms are opposed, then the government can say we tried to bring reforms but he opposition did not help us.These are the same reforms that the present ruling government had opposed when it was in the opposition. We are now bombarded by reforms. With election coming, they have to prove that they are not under the syndrome "policy paralysis" Reforms are  a form of capital that it is investing upon to get good election results.
While all these reforms are taking place, there is constant exposures or scams.They cause disillusionment among the people. Where is country heading towards? People do not know what to agree with or what to disagree with. Now women have united themselves to lower the prices of gas(cooking gas and diesel) Can the government do that now, with the economy in a bad condition?
 

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