IIF, 6th Oct. 2003 : Although
economic reform —liberalization, privatization and globalization
were adopted in mid -1991, the mindset of the people and government
officials has yet not fully accepted it as a means to achieve
the desirable ends, according to an article published in the
latest issue of Finance India – September, 2003. The
article is based on a talk delivered over AIR by Prof. J.D.
Agarwal, Chairman, Indian Institute of Finance and a leading
economist.
According to Prof.
Agarwal, the call for zero tolerance by the honorable Prime
Minister has been misused by some, both in government and
outside. The world economy is passing through an economic
slowdown, apart from the problem of unemployment, slower growth
rate, fear of terrorism and dark clouds of war in the gulf.
In the world arena, India is looked at as one of the safe
havens and one of the largest emerging markets in the world.
Despite all these problems and the worst financial crisis
in 1991, it has successfully countered the financial strains,
while launching the policy of economic reforms, privatization
& globalization after long spell of excessive controls
& regulations.
The country today
is facing various challenges to build this great nation into
one of the strongest economies to compete with some of the
most developed nations, feels Prof. Agarwal. In the international
arena, it has not yet attained the status and prestige it
deserves. On the domestic front it is engulfed with enormous
issues, problems and challenges : Unemployment, poverty, illiteracy,
outdated technology, inefficiency and low productivity both
in agriculture and industry, wide ranging corruption, fast
growth of black money and money laundering and inadequate
infrastructure. India is also affected by both natural disasters
like floods, drought & earthquakes and manmade disasters
like militancy and terrorist activities.
According to him, India needs to make its system self-propelling,
without the props provided by the government, to improve the
quality of life of the people by taking care of the 26 percent
people living below the poverty line, generating sufficient
resources to meet the most basic needs like housing, food
and elementary education. Government has to focus on fiscal
consolidation, through expenditure control and revenue generation
and simultaneously controlling generation of black money and
mounting NPAs. It must introduce accountability, curb corruption
and help enhance the efficiency and productivity of its agriculture
and rural economy, industry and last but not the least government
functioning. The thrust has to be on generating new capacity
besides using effectively the existing capacity in the economy
in every sphere of activity i.e. agriculture, industry and
services matching international standards.
Professor Agarwal asserts, “India has the requisite
potential. It is to be harnessed with a strong determination,
honesty of purpose and feeling of nationalism.”
