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Sunday, January 6, 2013

US centric economic model

US centric economic model, is it correct to solely pursue it at the expense of other options?
Any good economic policy should start with encouraging and funding education oriented towards creating skill sets and developing intelligentsia that will be useful in generating indigenous production manufacture and service sectors with global acceptance and reach and which will ensure the concomitant benefits of employment generation, export earning etc.
In addition, if the country is blessed with good amount of natural resources and raw materials, then there is nothing like that to turn such a country into a nation which can become the super power. Even if all the above mentioned factors are present in varying degrees, then it is good enough to become a commercial super power not necessarily a militarily one.
Fortunately India geographically as a country has most of the factors in good degree and some in abysmally low levels and they are the result of wrong priorities, perverted policy decisions and putrefied politics. I am not going into the specifics and details.
Even if any country cannot afford to do this, for any reason, at least it should ensure its intelligence in trade and economy in a globalized economic scenario like the present one by following a strategy of trade and commercial ties and operations with many nations based on purely economic exigencies and humanitarian ideologies.
If this strategy is followed then a nation’s economy need not suffer due to any sudden shift and change in the economic activities and status of one particular country, or a particular group of countries based on any regional, ideological or political identities.
All the TNCs [Trans National Corporations] or to use the modern terminology all the MNCs [ Multi National Corporations] know this fundamental fact of profitable survival in trade and economy.
It would be wise for all big democracies with a large number of globally acceptable intelligent and educated masses to understand and accept these facts and draft sensible policies based on these facts.
It is not any xenophobic idea but pure economic imperative and commercial pragmatism that no country can afford to have and opt to operate its economy on any specific or particular overseas country specific economic growth model; it is actually a euphemism for parasitical economic model.
In fact three decades ago the mantra of globalization was injected to mostly facilitate US based business interests. If anyone bothers to make an unbiased appraisal of globalization they would perceive that most MNCs were either US based or predominantly US sponsored and of course the benefits and new methods of operation that it brought to along enticed many business houses, investors, politicians, even academic economists to en mass pit for it. It was like a small tired boy falling asleep under the shade of a static elephant unawares that he would be kicked around or stamped heavily when it starts to move and crushed when it falls down.
This is what is happening or will surely and slowly happen to economies that followed only US centric economic policies. The black money of some economies, huge global financial manipulations etc have given a temporary relief to US economic recession. However, it is still not completely out of the woods. So, at least for the sake of senseless policy decisions of many countries which followed predominantly US centric economic policies let us hope that US economy springs back to its original strength or at least now these other countries should modify their economic policies.
Way back in the 90s itself I wrote for a magazine the dubious designs of so called Globalization and the likely eventuality of reciprocal sabotage.
You can find that article in the following link

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