(Dr. krishan Bir Chaudhary)
When America sneezes India catches cold. This is very true these days. Mere announcement of US Federal Reserve to taper off stimulus package sent the Indian rupee downhill, stock market indices fell and gave a severe blow to the economy.
Now the shutdown in US resulting in the Republicans and Democrats feud over President Obama’s health insurance bill has thrown 800,000 employees out of job. Obama will never tolerate this. It is most likely that US will come out with such measures to revive the economy and damage the interests of the developing world.
Since the beginning of the global financial crisis in August-September 2008 and subsequently the Euro-zone sovereign debt crisis, the developed world took a series of protective measures which made their economies recover to an extent much at the cost of the developing world.
It is an unfortunate situation in today’s globalised economy where the developing economies like India have become much dependant on the happenings in Europe and US by opening up their doors in the name of so-called “liberalisation of the economy.”
The developed countries are more shrewd in protecting their interest. Unfortunately our leaders are more worried about the well being of US and other developed countries and less concerned about the misery of the farmers and poor people in the country. The incidences of farmers’ suicides goes unabated in the country coupled with rising costs of essential commodities, growing joblessness and wage deflation.
Mere announcement of “quantitative easing” by US Federal Reserve caused the flight of hot money from India and rupee depreciate severely against US dollar and thus gave a blow to the Indian economy. Not only that the multinational companies which were invited to invest in the country began evading tax payments showing that their base of operation exist elsewhere.
Much has been discussed recently in G-20 in St Petersburg and at UNGA at New York, but no respite. Only lip sympathy. Rather the advice of the G-20 statement was to cut subsidies. Will the developed countries take the initiative to cut their heavy subsidies to their farm sector which has placed the farmers in the developing world at a disadvantaged position in global trade.
What awaits is the WTO Ministerial in Bali in Indonesia in December. The developed countries are more adament in protecting their interests. They continue to gives heavy subsidies to farmers, protect their economy by high tariff and non-tariff barriers thereby depriving the exports of farm products of farmers from developing countries.
Our leaders need not sympathise with the developed world. They should work for the interests of the poor in the country and farmers who are toiling hard to ensure food security. It is high time to chart the course of Indian economy and insulate farmers from the bad impact of the developed world.
(Editorial : Kisan Ki Awaaz Magazine)