Shabda Gyawali's Blog

Source :Economic Times Writer :Swaminathan S Anklesaria Aiyar People ask if India can grow fast if Bharat does not. Well, nothing exemplifies Bharat more than Bihar, and it has grown at 11% during 2004-09 , the same period when India registered a record 8.5% growth. India’s fast growth owed much to high technology and exports, exemplified by computer software and automobiles. But Bihar has neither high technology nor exports. India and Bihar seem to have little in common, yet both their growth spurts have a common cause: connectivity. India’s success stems from globalisation , which the Left calls an imperial recipe for subjugation. But when Indian companies are taking over global companies galore — the latest being Bharti Airtel’s takeover of Zain in Africa and Warid in Bangladesh — the notion that India is being subjugated is nonsense. Globalisation creates on a global scale opportunities that were earlier available only within nations. Once, people knew little of the world beyond th...

Switching of balance of payment surplus to deficit, capital flight exacerbated by the political instability, mob mentality labor force, marginal growth in remittances ,liquated crunch ,high credit to deposit ration of commercial banks, double digit food inflation, bearish equity market have finally attracted the attention of fiscal and monetary policy markers. Even the prime minster and the finance minster ,who until recently were selling their hallow rhetoric of high growth rate and economic development now believe that Nepal waning economic health is a serious cause of concern. As reported by this news paper, Finance minister Surendra Pandey has requested the fund (IMF) to access the macro economic situation of the country and provide recommendation. No one doubts the IMF credentials and I am sure that at the end of the day , International monetary fund -often called as a spokes person of the “Washington Consensus” will recommend polices that will re...

You don’t have to be a rocket scientist /PHD in economics to figure out why capital flight is taking place, there are three main causes for the capital flight - political instability, high inflation and a search for increase return on one’s investment. With never ending national political drama and high inflation rate (more than banks deposit rate), Investors started looking for investment opportunity that is not coupled /correlated with the nation politics. At the mean time When Nepalese investor did not see any hope in the domestic economy, what was happening in the emerging markets (especially India and other emerging Asian nation) was that they were raising fast from the ruble of the disastrous economic crisis, with the buttress of huge fiscal stimulus package and high flow of foreign institutional investment. Like any prudent investor, what investor here in the country started doing was investment in India, those who were not challening there fund to India, where buying gold....