Home > Uncategorized > At Last … Someone From India Talking About The Future Financial System

At Last … Someone From India Talking About The Future Financial System

“The emerging new financial architecture is not confined to one country,” Nath said at the summit hosted by the French business chamber MEDEF along with its Indian counterparts, FICCI and CII.

As a “responsible” member of the global community, India would want to participate in the restructuring of the bleeding financial markets, Nath said. He offered India’s association in the endeavour for the banking and financial restructuring to France and the European Union. (The Assam Tribune Online).

At Long Last …

It took a Kamal Nath to finally come out and say something interesting about a new financial architecture.

He says: –

1. The body managing the international financial systems should be patterned along the lines of WTO.

2. India will work towards that.

3. The current system is a total failure.

Way to go ….


The 2ndlook model for a Third currency Bloc is ready. Join in to review, participate, critique and develop the First Cut. While the need for a new global reserve currency has been evident, there is very little in the public sphere. The speed of events has clearly caught the BRICS and Third World napping – and unprepared. But, not 2ndlook – who, from the very beginning, proposed that the world should stop clinging to the Dollar-Euro skirts.

Categories: Uncategorized
  1. Dsylexic
    October 3, 2008 at 11:11 am

    the current WTO structure is a horrible isea. a fertile ground for business lobbyists and big corporations, the WTO should be abolished to the dustbin of history. we dont want managed /rigged trade anymore.kamal nath is nuts.he just wants more foreign trips at tax payer expense (he spent half of the year jetsettin around the world with little to show ).

  2. October 3, 2008 at 1:43 pm

    I think this WTO negotiations by Kamal Nath are underestimated. The efficient US agriculture sector is propped up by nearly US$10 billion in subsidies. Nearly 50% of US agricultural outpout is managed controlled by (about) 40,000 farms. The US wants to cap that subsidy at US$ 15 billion.

    The ‘inefficient’ Indian farmer actually is deprived of international prices or even national prices on output – by restrictions on movements on agricultural produce. Input costs are amongst the highest in the world. Electricity is again unavailable – or erratic. Communication infrastructure in non-existent. Forward markets or trading restrictions make planning for farmers difficult.

    And this is what the USA wanted. To subsidize the American farmer, with the US treasury printing ops, kill Indian agriculture, which is possibly the most under-rated sector in India – and the most competitive.

    And that is what Kamal Nath averted. I am sure, unlike Morarjee Desai, Kamal Nath did not succumb.

    Wile the WTO may not be the ideal structure, it is definitely an improvement from GATT. The major deviation that the WTO brought about (which is good) is the one country, one vote system – unlike neo-colonial structure like IMF, UN, World Bank, etc.

    Kamal Nath’s proposal is too sketchy to commend or condemn as of now. I like the fact that he identified the issue, made out a sketch, took the ball – and started running.

  3. Dsylexic
    October 3, 2008 at 2:29 pm

    I dont buy that .

    The poorest in India are practically landless (less than 0.2 hectares) – 250 million citizens who are being paid lip service by Kamal Nath in the name of protection would welcome the cheap food imports -the delicious irony being that it would be financed by american taxpayers.
    Kamal nath is protecting the big farmers -the farm lobby and not the poor farmer who is impoverished precisely because he is stuck with subsistence living under the price-fixing of the Indian socialist governments. Unilateral free trade in farming is an excellent idea – especially for the poor.

  4. October 3, 2008 at 3:14 pm

    Empirical data shows that PL-480 experience – which is something akin to what you are saying does the opposite. It kills the agricultural sector, breaks the transfer of skills and increases dependence.

    The single biggest reason why India had many famines during colonial rule was distorted tax regimes. Post Independence, the ‘zero tax’ regime slowly re built Indian agriculture – and not the ‘green revolution’ that the West (and some parts of India) touts as the real reason.

    Foreign charity is not the best way to build ‘free market’ (itself an oxymoron) or create competitive capacities. Do we want to remain a ‘basket case’ for ever!

    What happens when ‘slave societies’ like America decline – like Spain and Britain have!

    Will we search for new patrons!

  5. Dsylexic
    October 3, 2008 at 5:31 pm

    ofcourse you misunderstand.PL-480 was foreign aid -not free trade-decided by bureaucrats and not the consumers/traders.i am arguing for free trade.let the poor indians decide if they want to import food cheaply or spend their lives tilling manfully to get nothing in return. if they can be spared the huge bother of growing their own food at horrible cost to health and wealth,it is possible they can divert their energies towards activities which are more rewarding.

    right now,the imperatives of a hungry stomach cause immense wastage of human resources -which is criminal especially when food is available cheaply.

    Peter Bauer ,a great friend of India,protested against PL480. His book on developmental economics shows very clearly why poorer nations needed trade rather than aid/charity to get out of poverty. the latter just lines the pockets of bureacrats/politicians and sundry rent seekers.

    On the other hand,the sellout son of India called Amartya sen,wants the state to keep the poor where they are so that his brand of nyaya and niti can be enforced.

    when american farmers decline,we can continue to import cheap food from other places or grow it ourselves if we are capable of producing them cheaply and beneficially.why shy away from imports in the name of protection. protectionism is for those who are afraid of losing their monopolies. our poor have nothing to lose except their hunger.

    it is lack of free trade and license permit raj that stifled india,not its lack of agricultural knowhow.
    we have been raised to think that only exports are good for a nation.well,imports are great as well.ancient india was not just an exporter,we imported like crazy.prosperity is a two way track.

  6. October 4, 2008 at 6:40 am

    Are you suggesting, that we kill our agriculture sector, based on the US ability to temporarily print unlimited dollars – and thereby subsidize American farmers?

    Are you suggesting that there is no cost attached to uprooting farmers from their lives, teaching them new skills, because the US decides to subsidize their ‘farmers’?

    Are you guaranteeing that there will be another country which will replace America, which will subsidize their farmers to feed ‘poor and hungry’ Indians!

    Is it that you don’t think it important not to uproot people – due to perversions brought about about in the market?

    I am not suggesting that exports or imports are good – I am suggesting that in this ‘imperfect’ world, India should take adequate measures to protect our long term interests. That is all.

    What you are suggesting will compromise India’s long term interests. Unfortunately, skills base cannot be created overnite – but yes, they can be destroyed over-nite. Japan and Germany could recover from WW2 because of their skills base (and other factors also) – but UK went into a terminal decline, because they lost ‘it.’

  7. dsylexic
    October 4, 2008 at 7:01 am

    i am not suggesting the death of indian agriculture. i am just saying that you are only pandering to rich farmers by controlling the farm sector and controlling what people can buy. you are talking the protectionist talk -there is no empirical evidence to show that it is good for the small farmer/poor of the country.on the other hand it has been shown by many to perpetuate poverty.
    you are assuming that people are so keen on low yield agriculture -well,they are not ;otherwise you wouldnt have this huge migration into cities.people are interested in earning a livelihood.farmng may or may not be their profession of choice.who are we to tell them what to do?.

    current policies of protectionism is guaranteed to keep the poor right where they are in the name of protecting them.thats a paternalistic chacha nehru attitude.we have to grow beyond that. the poor are not people who need charity.mohamad yunus has shown that in bangladesh.

    what we have in india instead of true microfinance is loan melas where well connected people can make off with taxpayer funds.thats daylight robbery.
    the indian state’s policies are the cause of the distortions that prevent even interstate trade in foodgrains in india.this has gotta stop.lets get world improvers like kamal nath out of this.

  8. October 4, 2008 at 9:57 am

    1. The last of what you are saying makes more sense.

    2. The idea that we can be ‘clever’ and try to ‘use American taxpayer money’ to feed our poor is abhorrent!

    3. Like I said earlier, today in the security of India, which is not a basket case, it is easy to pick holes with Chacha Nehru. Not having lived in that world or in those times, let us not pick holes.

    4. A few years ago, the whole of India was wanting to ‘integrate’ with the dollar world. This wish to dive headlong into the cess pool of Western economics is over powering. But, our success (and our ‘failures’) are a matter of significant credit.

    5. Western theorists will come back ‘if India …’, which are just a bad shade of green envy.

    6. India had a unique set of circumstances and we forged a unique way forward. Mistakes may have happened – let us not nit pick, is what I am saying.

  1. October 23, 2008 at 4:23 pm
  2. October 23, 2008 at 4:26 pm
  3. November 8, 2008 at 4:16 pm

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