|
The WTO as Barrier to Financial Regulation |
| Feb
8th 2010, Jayati
Ghosh |
|
| Many
of the financial regulatory proposals now being considered
by developed countries might not be feasible given the
legally binding commitments these countries have made
under GATS with respect to financial services liberalisation.
Such WTO rules may therefore get ignored or GATS may
require to be renegotiated, for the necessary financial
sector reforms to take place. |
|
|
The Tendulkar Report: A Small Step Forward |
| Dec
23rd 2009, R.
Ramakumar |
|
| The
recently submitted report of the Tendulkar committee
that reviewed the present methods of estimation of poverty
has suggested new methodology for arriving at a strictly
technical measure of poverty. This is a welcome move,
but it is important to insist that the new estimates
are not mechanically linked to the issue of eligibility
to access major welfare schemes. |
|
|
Sovereign Default in the Core? |
| Dec
22nd 2009, C.P.
Chandrasekhar |
|
| The
possibility of sovereign default flagged in by Dubai
World together with the changed distribution of sovereign
debt globally has created a new context: it is not governments
of poor developing countries that are now the principal
source of danger, but the metropolitan centres of capitalism. |
|
|
Recovery or Bubble? |
| Dec
2nd 2009, C.P.
Chandrasekhar |
|
| Although
the US's policy of easy money triggered a recovery in
some economies, it has generated a bubble similar to
the one that preceded the 2008 downturn. Thus the emerging
story of a new speculative boom and a fresh bubble driven
by finance capital has led to growing fears of a second
downturn or double dip recession. |
|
| A
Tax to Rein in Finance |
| Nov
25th 2009, C.P.
Chandrasekhar |
|
| Even
though there have been many dissenters to the proposal
of imposing a tax on financial transactions, the UK
Prime Minister Gordon Brown’s declaration in support
of such a tax has given a new lease of life to the idea
that just will not go away. |
|
| The
Eye of the Beholder |
| Nov
9th 2009, Jayati
Ghosh |
|
| The
impact of the media and the ''infotainment'' industry
now goes beyond shaping culture and social mores, to
altering human nature in unexpected ways. Nowhere is
this more evident than in the extraordinary spread of
''reality television''. |
|
| The
Monetary Lever |
| Nov
4th 2009, C.P.
Chandrasekhar |
|
| The
responses to the RBI's most recent quarterly review
suggest that India too has seen post-reform changes
that give monetary policy and its consequences an important
role in economic management. In fact, there is reason
to believe that the role of monetary policy would increase
substantially in the immediate future. |
|
| On
the Dollar's Decline |
| Oct
21st 2009, C.P.
Chandrasekhar |
|
| The
article investigates whether the IMF SDR can replace
US Dollar as the global reserve currency in the wake
of falling prices of the latter. The author concludes
that US Dollar remains the primary global currency because
there is no other to replace it. |
|
| Central
Banking in an Uncertain Age |
| Oct
7th 2009, Jayati
Ghosh |
|
| The
recent book written by the previous Governor of the
RBI, Dr. Y. V. Reddy, describes the challenges of central
banking in these complicated times. It provides a reasoned
critique of unnecessary financial deregulation policies
and highlights the need for balance and for recognising
the requirements of the development project. The validity
of these arguments has been effectively underlined by
the overall resilience of the Indian banking system
during the global financial crisis of the past year. |
|
| G20
and the Global Power Balance |
| Oct
5th 2009, C.P.
Chandrasekhar |
|
| When
the 19 heads of state and a representative of the European
Union declared that from now on it would be the G20
and not the G8 that would be responsible for managing
global capitalism they were merely recognising the unavoidable.
However, if expansion of the club responsible for managing
global capitalism was unavoidable, the G20 reflects
the combination which would be preferred by the leading
powers. |
|
| Measuring
Progress |
| Sep
30th 2009, Jayati
Ghosh |
|
| The
limitations of GDP and HDI that are used as standard
measurements of growth and development might have prompted
President Nicolas Sarkozy to set up a commission to
look into alternative ways of measuring economic and
social progress. However, the report of the commission,
instead of making much headway, has added to the existing
debate, thereby leaving some of the most crucial questions
unanswered. |
|
| The
Financial Crisis One Year on |
| Sep
16th 2009, Jayati
Ghosh |
|
| The
enormous bailouts carried out by governments to avert
a global economic collapse after the Lehmann Brothers
debacle should have been accompanied by much more systematic
and aggressive attempts at financial regulation. This
opportunity wasted by governments will prove to be expensive.
We should brace ourselves for an even worse replay of
the financial crisis in the foreseeable future. |
|
| Sending
the Money Home |
| Sep
15th 2009, C.P.
Chandrasekhar |
|
| Remittances
have been and remain a major source of strength for
the Indian economy, especially for its balance of payments.
Given the accumulated stock of migrants abroad, this
is unlikely to change very soon, even if some are forced
to return due to the effects of the crisis on employment
contracts. |
|
| How
Expensive is Food Security |
| Sep
9th 2009, Jayati
Ghosh |
|
| The
poor monsoons and prevailing drought conditions mean
that ensuring genuine food security to the population
is the most important task before the central government.
The maximal possible estimate shows that providing subsidised
food to all households is actually not too expensive.
Therefore, if the central government is actually serious
about ensuring real food security in the country, it
has to consider certain necessary and also eminently
doable measures. |
|
| Who
Needs these Taxes? |
| Sep
1st 2009, C.P.
Chandrasekhar |
|
| If
increasing its fiscal manoeuvrability and greater transparency
and equity were the objectives that the government was
pursuing through a tax reform, then a revamp of the
existing tax law to get rid of a wide range of unnecessary
exemptions would have been adequate. However, the draft
direct tax code is a signal that UPA II plans to continue
with the policy of cajoling private capital into investing
for growth with concessions that have adverse equity
and welfare implications. |
|
| Socialism
and Welfarism |
| Aug
27th 2009, Prabhat
Patnaik |
|
| Unlike
welfarism, Socialism consists not just in building a
humane society. It is of course that; but it is also
something more. Its concern is with human freedom, with
the change in the role of the people from being objects
of history to being its subjects. Even though conceptually
distinct, there is a dialectical connection between
the two, that of contributing to the process of sharpening
of class struggle - the vital reason of bourgeoisies'
opposition to Welfare State. In today's context in India,
the stiffening of the will to resist among the people,
which Welfare State measures can bring about, has to
be made practically effective through the intervention
of the Left. |
|
| Sharing
Profits from Gas |
| Aug
18th 2009, C.P.
Chandrasekhar |
|
| The
ambivalence in government position in the long-drawn
out conflict between RIL and RNRL, on the issue of the
pricing of gas, reflects the changed relationship between
the state and private capital in India ever since ''reform''
began. In the new world order the state works to rescue
and strengthen private capital, even while it declares
that the rest of society including the poor and the
marginalised have to learn to deal with a world of market
mediated relationships. |
|
| Securing
Food for the People |
| Aug
18th 2009, Jayati
Ghosh |
|
| Food
security is currently one of the most important policy
areas which call for a wide range of government interventions.
The government's approach to the problem should be multi-pronged
and has to extend beyond a legal promise. A food security
law would be meaningful only when it guarantees universal
access and meets every citizen's nutritional requirements. |
|
| The
Plight of Construction Workers |
| Aug
5th 2009, Jayati
Ghosh |
|
| Lakhs
of construction workers in Delhi face inadequate safety
provisions, poor working arrangements and dire living
conditions. But, even as the money collected as cess
for meeting the social security needs of these workers
lies unutilised, an outlandish proposal has been made
to use a part of this money in a way that will effectively
subsidise contractors and builders. |
|
| Wasted
Largesse |
| Jul
28th 2009, C.P.
Chandrasekhar |
|
| Despite
a whole lot of benefits announced for the corporate
sector in the Union Budget 2009-10, statements from
corporate leaders suggest that a fair sample among them
is not too happy or is downright unhappy with the budget. |
|
| Budget
2009-10: Why does it disappoint? |
| Jul
16th 2009, C.P.
Chandrasekhar |
|
| The
Budget 2009-10 has received a mixed and muted response
because of the fact that this budget is not merely incoherent
and self-contradictory, but also inadequate to meet
its own objective of higher growth with a human face.
The details of the budget were so obviously in variance
with the rhetoric that preceded and accompanied it that
it disappointed most, if not all. |
|
| Reregulating
Finance Obama Style |
| Jul
1st 2009, C.P.
Chandrasekhar |
|
| The
much awaited package that the Obama administration announced
recently incorporates a number of important regulatory
advances. Firstly, the package gives a new role for
the Federal Reserve in overseeing and regulating the
bank and non bank entities. It also talks of new guidelines
with respect to capital adequacy and prudential norms.
But, unfortunately, there are many features that were
expected to be dealt with but have been missed out in
the new package. |
|
| Reflections
on the Left |
| Jul
1st 2009, Prabhat
Patnaik |
|
| The
results of the recent Indian election suggest that the
Left needs to pursue its resistance to imperialism along
with an alternative approach to ''development'', which
defends the interests of its class base. If the Left
abandons anti-imperialism, it will not only erode its
existing class base, but also push the ''basic classes''
into the arms of extremist ideologies.ologies. |
|
| Inflation
Fears and Commodity Prices |
| Jun
30th 2009, Jayati
Ghosh |
|
| Even
as the global downturn continues to cause trade flows
to decline, and jobs to be lost, there may be upward
pressure on certain prices in the near future. However,
unlike the monetarist arguments, the reasons for the
inflationary spiral lie not in fiscal expansion or in
supply-demand mismatch. Instead, they reflect the continuing
possibility that financial speculation can cause sharp
changes in the prices of commodities in the world market. |
|
| Tata
Rides the Recession |
| Jun
17th 2009, C.P.
Chandrasekhar |
|
| With
the expensive acquisitions of Anglo-Dutch steel major
Corus and luxury automobile brands Jaguar and Land Rover
in quick succession on the eve of the global financial
crisis, the TATA group faced difficulties as the debt
level of both the parent and the UK subsidiaries in
the group was on a rise. However, it is noteworthy how
the TATA group has escaped a group-wide crisis by leveraging
its brand, the Indian government and the Indian public. |
|
| The
Future of News in Print |
| Jun
8th 2009, C.P.
Chandrasekhar |
|
| Though
Indian media industry is yet to experience the kind
of crisis their overseas counterparts are faced with,
the declining revenues and profits of newspapers that
is forcing closure of many dailies, especially in the
US, suggests that the fortuitous interregnum should
be used to think about the future of the news media. |
|
| The
Left and Elections 2009 |
| May
22nd 2009, Jayati
Ghosh |
|
| Undoubtedly
the result of the general elections of 2009 has been
a major setback for the Left Front but it can be turned
into an opportunity for its revival and expansion if
it draws the right lessons from this defeat and changes
strategy accordingly. |
|
| Danube:
The River as Life |
| May
21st 2009, Jayati
Ghosh |
|
| Claudio
Magris' book "Danube: A sentimental journey from
the source to the Black Sea", is more than a magisterial
treatise or even a valiant attempt to capture the social
history of the human habitations in all their richness
and complexity. This is a book full of people, both
historical and created and is a cornucopia of gems with
its historical and geographical details that merge and
coalesce to transcend this particular river, this particular
geography, to encompass all rivers and all humanity. |
|
| Fears
of a Backlash |
| May
20th 2009, C.P.
Chandrasekhar |
|
|
The US President clearly aims at getting some political
mileage by posing an otherwise straightforward tax reform
proposal in terms of jobs at home and jobs overseas.
On the other hand, despite industry concerns to the
contrary, the competitive edge for the India's IT industry
which comes from the lower wage rates and the attraction
of the growing demand for IT hardware and packaged software
in the Indian domestic market are both so large that
the loss of the tax advantage should not deter US firms
from captive outsourcing or setting up subsidiaries
here. |
|
| The
2009 Lok Sabha Election: a Storm in the Teacup? |
| May
18th 2009, Mritiunjoy
Mohanty |
|
| The
2009 Lok Sabha election has opened up an important space
that was closed in the Yadav-Palshikar hypothesis. Even
though there are conditions under which their hypothesis
about ideological convergence in policy making might
hold, in the current conjuncture with the breaking-up
of the ideological convergence around neoliberal economic
policy following the global financial crisis, the democratic
upsurge might play a role in shaping policies. |
|
| Tainted
Money |
| May
10th 2009, C.P.
Chandrasekhar |
|
| There
is increasing concern the world over regarding the role
of tax havens in promoting tax evasion and money laundering.
This is the opportunity to fulfil demands that the violations
of law that permit the accumulation of illegal wealth
abroad by India's rich and powerful in Swiss and similar
banks accounts need to be investigated, the offenders
must be prosecuted and the money brought back and directed
towards pushing growth and improving welfare domestically. |
|
| Has
a Global Contagion Affected Indian Finance? |
| Apr
24th 2009, C.P.
Chandrasekhar |
|
| One
probable reason why the recently released report of
the Financial Sector Assessment Programme could not
attract due attention is that the very assumption of
the benefits of financial integration, on which the
FSAP is anchored, is nullified by the current recession
in the real economy. However, as this article shows,
the report helps in a better understanding of the effect
of the global recession on the Indian financial system. |
|
| The
G20 Summit |
| Apr
24th 2009, Jayati
Ghosh |
|
| All
expectations about the G20 Summit to revive the global
economy and set a new financial infrastructure were
in vain as it did not produce any extraordinary response
currently needed to pull the economy. The communiqué
that was released mentioned nothing on the fiscal front
and had no clear commitment to a co-ordinated fiscal
stimulus except only a promise of $850 billion to crisis-hit
poor countries. |
|
| And
Now, the Indian Balance of Payments Crisis |
| Apr
11th 2009, Jayati
Ghosh |
|
| With
India's declining merchandise exports and still growing
imports resulting in a trade deficit, it is now confirmed
that the Indian economy is already badly hit by the
global economic crisis. The more worrisome part is that
our policymakers refuse to accept this reality and still
want to intensify the policies of financial liberalisation
that have brought us to this pass. |
|
| Prices
and Politics in India |
| Mar
24th 2009, Jayati
Ghosh |
|
| Inflation
rate in India touched historical low levels of 0.44%
in the week ending March 19th. While this is being projected
in some circles as a positive development in the context
of rising inflation some months earlier, this article
argues that this need not be necessarily the case. |
|
| Assessing
the Recent West Bengal Experience |
| Mar
20th 2009, Jayati
Ghosh |
|
| A
report prepared by Indicus Analytics on the economic
development of West Bengal tries to portray a dismal
performance of the state with regard to growth, employment,
poverty reduction, health etc. The article tries to
question the findings of the report and argues that
in many counts West Bengal has performed much better
than the national average. |
|
| How
to Spend the Money |
| Mar
6th 2009, Jayati
Ghosh |
|
| One
of the significant impact of the financial crisis on
the world of ideas is that it has brought to the forefront
the recognition of the role of the government expenditure
in mitigating recessions, as was advocated by Keynes
and Kalecki. This article makes a theoretical case for
undertaking Keynesian measures to cope with the recession.
|
|
| Health
Imbalances |
| Mar
5th 2009, Jayati
Ghosh |
|
| While
India has one of the worst health indicators in the
world, there is a paucity of ideas and initiatives to
take care of the problem of health. The recent Report
of the Independent Commission on Development and Health
in India shows the imbalances with regard to health
indicators in the country and makes important recommendations
to fix the ailing public health system. |
|
| The
Job Loss Syndrome |
| Mar
4th 2009, C.P.
Chandrasekhar |
|
| The
article explores the issue of job loss being experienced
in the various sectors of the Indian economy and traces
their advent to the ongoing global crisis. The article
also argues that the Indian government's response was
delayed which further intensified the problem. |
|
| Where
have all the footpaths gone? |
| Feb
3rd 2009, Jayati
Ghosh |
|
| The
author puts forward a new definition of underdevelopment
in terms of lack of amenities for pedestrians in towns
and cities. Although the problems of urban slums have
been discussed in the context of rapid urbanisation,
the importance of having safe, continuous and usable
walking spaces, which are almost lacking in many urban
sprawls across the developing world, seems to be missed
out. |
|
| Control
Frauds |
| Jan
29th 2009, Jayati
Ghosh |
|
| The
Satyam fraud incident is not a unique case of corporate
malfeasance. This kind of financial crime, which is
persistent under capitalism, has been developed as the
concept of 'control fraud' by the American academic,
William R. Black, where the CEO of a firm uses the firm
itself, and his/her ability to control it, as an instrument
for private enrichment. |
|
| The
Fraud at Satyam |
| Jan
27th 2009, C.P.
Chandrasekhar |
|
| As
the Satyam story unfurls gradually, the magnitude of
the scam does point towards the total failure of corporate
governance at all levels in combination with individual
greed. But, it is also the product of the celebration
of profit making irrespective of magnitude, of the belief
in markets and the discipline they impose, and of regulatory
dilution and regulatory failure. |
|
| Love
in a Cold Climate: Business and politics in Gujarat |
| Jan
20th 2009, Jayati
Ghosh |
|
| With
their sudden loss of confidence amidst an increasingly
uncertain world, corporate leaders turn desperately
to leaders who they think can provide them protection
and discipline the rest of the society to ensure their
own profits. This may be the social psychology behind
the extraordinary chorus of praise by Indian industrialists
for the Chief Minister of Gujarat recently. |
|
| And
the Award Goes to…. |
| Jan
10th 2009, Jayati
Ghosh |
|
| So
far, Satyam Computers' financial swindle is considered
as an isolated case in an otherwise well-behaved corporate
sector. But, as the Indian economy slows down and export
orders come down, there may be more unsavoury revelations
emerging from the corporate world. |
|
| Blowing
Bubbles at the Bust |
| Jan
7th 2009, C.P.
Chandrasekhar |
|
| Some
observers have wrongly described the latest policy measures
as the second ''fiscal stimulus'' package. The package
is not fiscal but more monetary in nature, with little
emphasis on increasing government spending. Moreover,
the structure of the so called ''stimulus'' package
would only strengthen the kind of tendencies that generated
the crisis in the developed countries in the first place. |
|
| The
Economic Geography of Recession |
| Jan
6th 2009, Jayati
Ghosh |
|
| With
the slowdown imminent in the Indian economy, the Government
has announced policy measures to counter it. However,
while interest cuts and easy loans will benefit some
large banks and people like developers and exporters,
the fate of two important and vulnerable sections of
the population, farmers and migrant workers remain precarious.
This negative impact will permeate geographically. |
|
| Diluting
Insurance against Risk |
| Jan
3rd 2009, C.P.
Chandrasekhar |
|
| Despite
the global experience with privatized insurance and
the Indian experience with nationalised insurance, India's
government is pushing ahead with insurance privatization.
The two insurance bills appear to be declarations of
India's intentions to globalise further during the current
Prime Minister's tenure, independent of the consequences
for its people. |
|
| The
Madoff Mystery |
| Jan
1st 2009, C.P.
Chandrasekhar |
|
| The
Madoff scandal is not only one more confirmation that
the so-called ''model'' financial markets of the US
are neither transparent nor efficient, but also proof
that so-called savvy investors can be outright unintelligent.
But, even as everyone now admits that the regulatory
system has failed and markets do not work well, the
desire to design a regulatory structure that minimises
failure seems absent. |
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