Financial Daily from THE HINDU group of publications
Sunday, Aug 07, 2005
Financial Daily from THE HINDU group of publications Sunday, Aug 07, 2005 |
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Industry & Economy
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Economy Pursue economic reforms with social outlook: Asim Dasgupta Our Bureau
Kolkata , Aug. 6 LEADING economists have agreed that the economy needs to grow at the rate of 7 per cent per annum, although they differed on the role the Government should play. Discussing the subject `The 7-per cent growth economy: Does the Government really matter?' at the Annual Economic Summit 2005 of the Bengal Chamber of Commerce and Industry, on Saturday, Dr Asim Dasgupta, West Bengal Finance Minister, said 7 per cent economic growth was feasible at the national level because his State had been recording such a growth for the last few years. He said everybody wanted economic reform but it should be on "our terms" and with a "social outlook". According to him, the essence of reforms should be towards more competition rather than unequal competition. Dr Arvind Virmani, Director and Chief Executive of Indian Council for Research on International Economic Relations, said aggregate growth in the national economy should eliminate aggregate poverty. He was critical of the poor governance in the country which was best exemplified by the law and order problems and the high level of inefficiency and corruption among politicians and bureaucrats. Dr Virmani said that, in the last 15 years, every coalition Government at the Centre had suffered from internal opposition. According to him, it had always affected the Government's functioning. Prof Abhirup Sarkar of the Indian Statistical Institute wondered whether a 7-per cent growth was sustainable. He said the Government had a role to play for the poorer sections of the society because India was not a homogenous body. According to him, all Governments had focused more on employment. Instead he said wages and productivity should be the focal points because people in the rural areas people were forced to take up employment as their survival was always at stake. Prof Sarkar criticised the Left for opposing the 10-per cent divestment in BHEL and the suggestion to sell non-profitable public sector units. He also said, by reducing its stake in BHEL, the Government would have transferred its resources from the industrial sector to the social infrastructure sector where no private party would be investing. Dr Ashok V. Desai, Consultant Editor of a Kolkata-based daily, gave an overall overview of the country's economic pattern since it opted for liberalisation in 1991. He argued that economic reforms should continue but said the existing political arrangement in New Delhi would not allow it. Dr Desai said, in the last financial year, the country's foreign exchange current account dropped from an excess of $10 million to a deficit of $15 million. "No one has expressed any concern till now as forex is still coming through other avenues but it could be a serious concern if the current trend continues for the next two to three years," Dr Desai said.
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