I just heard an interview of Montek Singh Ahluwalia (Dy. Chairman of the Planning Commission currently) on NDTV. I was startled on hearing something. Montek informed the viewers that we are not borrowing from the World Bank anymore. Good. We are also not borrowing from IMF either. VERY good, you would say?
On the contrary, we have actually LENT 10 billion dollars to the IMF. On first glance, this seems like something we Indians should be mighty proud of. After all, when the first reform budget of 1991 was announced, our reserves had dropped to an alarming 1 billion dollars, while today our reserves stand at 270 billion dollars. (Figures quoted by Montek himself.) So the reform budget and the ensuing 18 years have probably pulled India out of the economic doldrums . We all should be justifiably proud of it, right.
The question is, who is 'WE'? A minuscule population of urban Indians who can afford a car, an AC, a Blackberry and an iPod?
If we as a country can lend 10 billion dollars to the IMF, then the questions that haunt me are
- Why do millions of Indians still have to starve?
- Why do millions of Indian do not have access to basic medical services?
- Why does one farmer in Vidarbha have to commit suicide every day?
- It seems there is foodgrain surplus now. Then why are food prices going up all the time?
- Why are there frustrating power cuts? (In Pune, there is power cut from 9 to 5 on all Thursdays.)
I hasten to add that my rant is not against Montek at all. I have huge regard for him. I am sure he is bothered by the same questions himself. I wish someday I hear him give possible answers to them.
The money that we have lent to IMF surely has come from the taxpayers. (If it came from the black money that is generated, we could possibly lend 10 Trillion dollars. Not billion.) Is that why we pay taxes? So that the development in India can wait, while we lend money to the IMF?
I am not an economist by any stretch of imagination. I hope someone from the readers who are more enlightened on these matters can provide me the answers to these questions. Till then, I will keep hoping that Montek and Co. are taking India on the right path ahead.
On the contrary, we have actually LENT 10 billion dollars to the IMF. On first glance, this seems like something we Indians should be mighty proud of. After all, when the first reform budget of 1991 was announced, our reserves had dropped to an alarming 1 billion dollars, while today our reserves stand at 270 billion dollars. (Figures quoted by Montek himself.) So the reform budget and the ensuing 18 years have probably pulled India out of the economic doldrums . We all should be justifiably proud of it, right.
The question is, who is 'WE'? A minuscule population of urban Indians who can afford a car, an AC, a Blackberry and an iPod?
If we as a country can lend 10 billion dollars to the IMF, then the questions that haunt me are
- Why do millions of Indians still have to starve?
- Why do millions of Indian do not have access to basic medical services?
- Why does one farmer in Vidarbha have to commit suicide every day?
- It seems there is foodgrain surplus now. Then why are food prices going up all the time?
- Why are there frustrating power cuts? (In Pune, there is power cut from 9 to 5 on all Thursdays.)
I hasten to add that my rant is not against Montek at all. I have huge regard for him. I am sure he is bothered by the same questions himself. I wish someday I hear him give possible answers to them.
The money that we have lent to IMF surely has come from the taxpayers. (If it came from the black money that is generated, we could possibly lend 10 Trillion dollars. Not billion.) Is that why we pay taxes? So that the development in India can wait, while we lend money to the IMF?
I am not an economist by any stretch of imagination. I hope someone from the readers who are more enlightened on these matters can provide me the answers to these questions. Till then, I will keep hoping that Montek and Co. are taking India on the right path ahead.
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