Sunday, October 16, 2011

Greece's fiscal mess, all thanks to Goldman Sachs: YV Reddy...

Friends,
I have just comeupon this interview from our restwhile RBI Governor which link I am pasting here for readers to read.
It is a long interview of 5 pages and hence I am not pasting it here.
I think Mr Reddy has given an excellent interview how the PIIGS crisis has happened and readers will be able to know all about PIIGS crisis ans all...




...http://www.moneycontrol.com/news/world-news/greece39s-fiscal-mess-all-thanks-to-goldman-sachs-yv-reddy_599822.html#toptag


I know I was critic about Y V Reddy about his steps taken in 2007 and 2008 but after I heard him once at Time Now or HT 6 months or so back  I got the impression that he was somewhere right in doing so.
I am impressed by his understanding the problem and his reasoning about debt problems and sovereign  crisis.He deals with each and every minute details of how it happened and how it can get cleared.Excellent indepth analysis from an excellent Financial Wizard.
I would like my readers to read well what Dr Y V Reddy's says about Agrarian crisis.He talks about supply and he talks about farmers leaving farming as they are not making money and thousands of acres of land are now laying uncultivated.
I doono what the government is doing.If thousands and lacs of acres of farming land will remain uncultivated how the inflation will get tamed?I have been writing about it since long that raising Int rate is not the solution.The supply should come for taming inflation.
 In India our biggest problem with any political party is, they just wants to make money as soon as possible and that too not in crores but in lac crores .Scam in mining takes away lacs of crores and no attention is given on making the farming more productive using new technology etc.
The thing which we are missing is patriotism.We don't love our country.Only lower middle class and poor people love our country.Politicians and rich people and upper middle class has nothing to do with it........we just come out and start speaking about India and how it is a great country.
I ask how many tried to give good salary to their Kamwali bai who comes to work at your home for washing cloths and cleaning dishes?How many gave a paid holiday to them even once a months?

Somewhere Mr Reddy speaks:

"
A: There are a number of issues. There are two issues. One is the cost of cultivation and second is the risk. Today for the farmer, he is not assured supply of water and there is no recourse if he doesn’t get water from irrigation. There is no supply of power assured and the crops fail if the power does not come. There is no guarantee of the quality of the seed, there is no guarantee with regard to the quality of the pesticide, there is no quality control and there is no recourse so he is facing all these risks."

What is this?Which progress India is talking about?What are we arguing at?We just justify our arguements.Nothing else and that is not a solution.We are way way back then developed countries and for 2-3 decades or more I don't think we can ever even reach nearer to them.
We are living in an Illusion.Illusion of becoming the next super power and become number 1 or number 2......

India is not Mumbai, Delhi, Calcutta or Madras.India is remote part of Bihar, Bengal, UP, Jharkhand etc where woman has to go miles to fetch waters in pot putting on head.
Sitting in your home and argueing for India makes no sense.When there is a crisis of surviving,jab khana durlabh hai, pani durlabh hai, wahan koi padh sakta hai kya?Sabse pehla kam jab bachha bada hone lagta hai wo majuri karna suru kar deta hai taki usko khana mil sake, phir wo padhega kab?In remote areas where are the schools?Rehne ka thikana nahi wo kya padhega?
Our state is power deficient, our state , India, is water supply deficient , our state is lacking in growing grains and foods, our state is lacking in planning, our state is lacking in removing poverty........the only things we are excellent in is scams and agruing.Making statement and allegations.
Well, for sake of arguements we can argue but that makes India not great.

Again I am quoting Dr Reddy in same interview:

"
So my first preference therefore is the issue should not be how we go into double digit growth, but how should we increase the productivity. Secondly, the productivity growth is not with reference to what we were two years back, but where the world will be two years from now. We should look at how we are able to compete with the productivity growth in the rest of the world.

Therefore, first we have to make an assessment of the way the rest of the growth productivity is increasing, then how to increase the productivity growth. You may require increasing productivity growth just to maintain a current potential output because the world is moving up."

He emphasize on productivity.Now do our politicians know what is meant by productivity?What amendments they needs to make so that productivity increases?Do they kow we have to compete with the rest of the world in productivity space and what does it mean when it comes to , compete with the world?Compete with world on productivity means lots of planning, lots of execution in time, projects needs to be completed in time and hence no overrunning of cost.
These are the parametres which the developed countries has sticked to as they know very well that if they lack in anyone of these Viz; Planning, Executiuon, completing project in time then it is waste of time and money.

1 comment:

  1. thanks for the link....enjoyed reading the post

    ReplyDelete