Friday 15 February 2013

Experiments in lab called economy

We have run-away inflation, skyrocketing prices and angry people.We have mismanaged our economy. And we have quipped our failures as 'our way of making inclusive growth possible'. We feel that we have given benefits evenly to the people.Experiments in inducing growth in sectors like power has not worked. Concessions to different coal companies and hurdles in mining, have affected the growth of power sector.Experiments to induce growth is big failure resulting in loss for the nation.In the aviation sector, banks were encouraged to give big loans to airlines, and these loans could not be repaid. Bankruptcy was rampant.Then the bank loans were classified as troubled assets; ultimately banks had to suffer big losses.
Public private partnerships were encouraged to make big infrastructures which were not feasible. Costs of making the infrastructures rose so high that government had to give money to prevent bankruptcy.Otherwise the making of infrastructures was brought to an abrupt end.Some of the "toll" highways did not get any users as the tickets were priced too high.People stopped using them. Profits did not materialise as projected. Government had to bail out.The cost of making of airport at Delhi was so high that a "development fee" was charged from the unwary passengers who used the airports.The airport charges were disliked by all who stopped by Delhi.At all new "experiments" in economy, patchwork was done, so that we would not sink further.Our government has affected the growth of our economy by coming up with new tax laws which did not work.
So, now what are we doing? We are trying to go all over the world to encourage investment in India. We can do that from here itself, the air fare could be saved. We have provided manpower for the world, our IT professionals are making growth possible around the world. We can do it for our land too, provided no new laws or experiments are made. 

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