China has to appreciate the value of Yuan, so that Chinese exports become costly and foreign imports into China become cheaper. US has been putting lot of pressure on China on this score. At the same time, China has to create millions of job oppotunities in rural areas, reduce taxes on te rich Corporate profits to give affordable prces on goods and services to the low icome groups. Income disparities n China are very high. THis has to be reduced so that poorer people get more disposable income and the richer people get less. Yes, this is a tricky problem. But it has to be done intelligently and not all at once. In USA, the hourly minimum wage of $5.25 is likely to ne raied to $7.25 soon. There has been no change in the minimum wage for 2 years in US.China must reduce the rapidly growing investments and concentrate more on incresed productivity and production to supply to the world and also allow the common man to have more disposable income. Tghis is again a tricky problem. There are two wonderful global examples of Dr.Kurien's magic at Anannd Dairy Cooperative movement in Gujarat over 4 decades ago and what bangladeshi miracle economist Mahamad Yunids did 20 years ago by providing small and frequent loans to farmere without interest through Grameena Banks. Both Dr. Kurien and the great Mahamad Yunis removed the role of greedy and treacherous middlemen. Top Finance Ministers and politicians in both India and Bangladesh did not achieve any such miracles. Instead they allowed corruption to grow, even among politicians and law makers. This is the llesson countries like China, India and Bangladesh.
Where are the opportunities in India for the economy to grow? There are idiotic cumbersome procedures of British time, corruption, communal/caste/regional politics everywhere. Chinese have gained expertise in making semiconductors which has given them an edge over the American and European counterparts. As a result, all the electronic products which yield most of the revenue are very inexpensive and are in more demand. China has used its large population as a resource. Where as we Indians have mostly been complaining and blaming the other community/region for most of the affairs. During the recent election campaign was there a single party which came out with an Agenda for development of opportunities and employment? The so called electronics giants of India such as BEL and SCL only manufacture cheap low speed ICs with low density and a few transistors and diodes. Even these use the die of some other company. Is there a single microprocessor of Indian origin in the market despite having facilities larger than Intel? Is there a single operating system developed by Indian companies in the market despite having millions of software professionals? Our government has just been idle in the sectors which have the most importance. For the amount of crystalline silicon in the North East region, it can become an international silicon valley. Unfortunately neither the state nor central government nor the so called industrial giants of India seems interested in development of that region at all. A good initiative can make that region overtake the rest of the world in terms of economy and that should solve the problems of unemployment and poverty in that region. All these are possible only if people vote candidates with capabilities and not just on communal, regional or caste basis.
RE:Send our Politicians to China
by H S on Apr 26, 2007 08:38 PM Permalink
Mr. Girish as you may have noticed in second last para of above column "Chinese authorities, naturally enough, are far more concerned about the living standards of their own people than those of the comfortable middle class in the U.S" every policy maker is concerned for interests of their own people and so are of india. politicians may have been playing dirty politics for power but still where national interest comes all shows unity and are taking right decision. In India growth is at par with living standards of its people. our growth is very much drived by domestic consumption which is a good sign for country and that means spending power of people is also growing.
If China wants everyone to benefit then they should have reservations for backward and down-trodden society. Upliftment of the poor millions can be done by reservations.
RE:Bring reservations for backward class in China
by anang bohra on Apr 26, 2007 07:15 PM Permalink
you are right. Our leaders have proved in these 60 years that reservation is the only way of upliftment of poor.
RE:Bring reservations for backward class in China
by ItsMe on Apr 26, 2007 07:51 PM Permalink
reservation is the only way to slow down things. so they should do it.
RE:Bring reservations for backward class in China
by prasidh.r on Apr 27, 2007 10:43 AM Permalink
In a communist society, all communities are considered equal. There's no backward class. Such ridiculous things will only persist in India
RE:Bring reservations for backward class in China
by sameer meher on Apr 26, 2007 07:33 PM Permalink
mr Ben , china is far ahead of india , dont see at them , they are quite ahead
RE:Bring reservations for backward class in China
by Prakash PG on Apr 26, 2007 08:15 PM Permalink
This is a great suggestion to beijing - Chinese economy will slow down as soon as they implement reservations. :P
China has a unique problem, where local state-owned companies, many of which are doing very well, are iniquitously poised over private companies (which have to disburse dividends, as pointed out in the article). To solve this unique problem, China can help reduce the income gap by adopting a "lower taxes for the poor" policy. This would be an indirect way of providing the benefit of a strong economy to the non-consuming poor!
China has a unique problem, where local state-owned companies, many of which are doing very well, are iniquitously poised over private companies (which have to disburse dividends, as pointed out in the article). To solve this unique problem, China can help reduce the income gap by adopting a "lower taxes for the poor" policy. This would be an indirect way of providing the benefit of a strong economy to the non-consuming poor!
RE:India can also grow like China but because of our Corrupt politicians we will never grow like them.
by ashok robert on Apr 26, 2007 06:39 PM Permalink
what is happening in your work place Mr Sai
RE:RE:RE:RE:India can also grow like China but because of our Corrupt politicians we will never grow like them.
by blue wrox on Apr 26, 2007 06:53 PM Permalink
Dont be so cynical.The same politicians helped india achieve 8.5% growth.Thats impressive.Your statement is probably too inspired by Rang De Basanti and am sure you are too young too.
Chinese companies grow because of exports.Read the article well.Now everything is fine ,like the dot com boom.But as the value of dollar goes down the drain,so would thier exports.Indians are doing the sensible thing of being extra cautious with growth.We are not running a sprint here,but a slow growth that is needed to lift our poor.So our agenda is not to become the next china but to become the next developed world,even if after 30 years
RE:India can also grow like China but because of our Corrupt politicians we will never grow like them.
by Global Ruler on Apr 26, 2007 07:38 PM Permalink
Well said blue wrox, long-run sustainable growth model of India is anyday better than short-run double digit growth of China!
RE:RE:India can also grow like China but because of our Corrupt politicians we will never grow like them.
by sameer meher on Apr 26, 2007 07:31 PM Permalink
the slums were not in india 50 years back ..Mumbai a financial capital of india 8.5% growth ,but the capital of Mumbai is dharavi :)
RE:India can also grow like China but because of our Corrupt politicians we will never grow like them.
by madhukar a on Apr 26, 2007 10:24 PM Permalink
That is well said, slowly yet steadily getting masses educated and increasing the spending power of the people is the right approach.
RE:India can also grow like China but because of our Corrupt politicians we will never grow like them.
by prasidh.r on Apr 26, 2007 07:46 PM Permalink
Where are the opportunities in India for the economy to grow? There are idiotic cumbersome procedures of British time, corruption, communal/caste/regional politics everywhere. Chinese have gained expertise in making semiconductors which has given them an edge over the American and European counterparts. As a result, all the electronic products which yields most of the revenue are very inexpensive and are in more demand. China has used its large population as a resource. Where as we Indians have mostly been complaining and blaming the other community/region for most of the affairs. During the recent election campaign was there a single party which came out with an Agenda for development of opportunities and employment? The so called electronics giants of India such as BEL and SCL only manufacture cheap low speed ICs with low density and a few transistors and diodes. Even these use the die of some other company. Is there a single microprocessor of Indian origin in the market despite having facilities larger than Intel? Is there a single operating system developed by Indian companies in the market despite having millions of software professionals? Our government has just been idle in the sectors wich have the most importance. For the amount of crystalline silicon in the North East region, it can become an international silicon valley. Unfortunately neither the state nor central government nor the so called industrial giants of India seems interested in development of that region at all. A good initiative can make that region overtake the rest of the world in terms of economy and that should solve the problems of unemployment and poverty in that region. All these are possible only if people vote candidates with capabilities and not just on communal, regional or caste basis.
RE:India can also grow like China but because of our Corrupt politicians we will never grow like them.
by HumTum on Apr 26, 2007 08:53 PM Permalink
Why are you repeating it again and again. We understand that you hv the knowledge of Transistors and diodes but we are not going to give any reward to you here.
RE:India can also grow like China but because of our Corrupt politicians we will never grow like them.
by prasidh.r on Apr 27, 2007 10:46 AM Permalink
To teach their importance to guys like you who are ignorant.
