Thursday 30 January 2014

Is politics spoiling the economy?

When the ruling party tries a policy flip-flop to acquire votes, we can see it clearly. This is spoiling the self-sufficiency of the people and it is making the people more and more dependent on the government. Government has announced twelve cylinders of cooking gas per household on subsidized rates. We thought we are moving towards more and more self-reliance and not towards dependency. But it seems we are moving towards subsidy model. Why? So that vote banks could be kept. The poor people who are dependent on this subsidy will vote for the party which has announced it. This is a political move which will spoil our economy. Government has to foot the gas bill now. And our deficit will increase we will be burdened with providing this subsidy. Subsidy is bad for our fragile economy. By de-regulation of fuels, we were trying to move on. But this will be a set-back. The play of politics on policy flip-flop cannot be stopped now. Inconsistent policy will give us less and less confidence. to invest. This leads to greater instability. If there is consistency, it would be good for all. But with inconsistency, we have to live in fear of what will happen when government cannot subsidize any more or if it changes its policies again.
This will benefit urban Poor but the rural poor are still dependent on wood for fuel, what subsidy is offered to them? Are they not going to benefit with policies?

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