Saturday, September 8, 2012

"India: A Capitalist Paradise!!!"

Economies are classified into three approaches- Socialist, Capitalist and a Mixed approach. Socialist approach is pro-poor. It aims an equitable distribution of wealth. Government owns all the economic institutions. Capitalist approach creates wealth for a ‘class’ of people. The economic institutions are owned by individuals or a group of individuals. A mixed approach, however, is a blending of both. Both Individuals and government owns institutions. Government intervenes for social welfare.

Capitalism:India is a Third-World Country. It is a developing economy. It started out as a mixed economy. However, Post 1991, India has been moving towards capitalism with gushing force. Liberalization and globalisation opened Indian economy. Opening up sectors for foreign direct investment (FDI) has attracted great investment and employment opportunities. Liberalizing FII (Foreign Institutional Investor) norms has helped in easy availability of capital. There has been an easy availability of loans. Our GDP growth reached 9 per cent. The real estate market is blooming. Our industrialists bag awards for the wealthiest persons in Asia and world. We are growing into the fastest economies of the world. But does this achievement take into account Gandhi’s talisman?

Even after 60 years of independence we are unable to address the problems of poverty, education, housing, food, sanitation, etc. According to reliable economic sources, over 250 million people in India lives below the poverty line, over 300 million people are illiterate, there is a demand of millions of houses but most of it is not satisfied, almost 80 per cent of population in Mumbai lives in one bedroom-cum-drawing room house, over 25 per cent of our country’s population does not get clean water and proper sanitation. Most of the rural areas, which comprise almost 70 per cent population of India and include over 6.5 Lac villages, are under developed. The growth that we observe around us is lopsided, helping rich getting richer and the poor getting poorer. All these are the results of excessive capitalism and reliance on industrialization and urbanization. The trickle-down effect did not work. Social welfare schemes like NREGA, Sarva Shiksha, Abhiyaan etc. implemented by government are not serving the desired purpose. In an interview, Congress member Rahul Gandhi also admitted that out of every hundred rupee disbursed for the rehabilitation of poor only five percent reaches the actual intended person while the rest of it is gobbled up by corrupt bureaucrats.

By capitalizing the economy, we are promoting industrialization. The ‘growth’ is at the cost of agriculture. Indian economy is an agrarian economy. India is a home to millions of villages. Villages provide an economic base to our prosperity as food production happens there. But our economy is opening at a dangerous speed. The government is losing control. It is the duty of the government to distribute wealth evenly. But if liberalization and government’s negligence continues at this speed, we will soon be importing food grains. Development does not mean transformation of rural areas into urban areas. It means developing the rural areas. Technology should reach rural India to increase self-sufficiency. Medical and educational facilities should be provided. Basic amenities should be provided. There should be creation of facilities so that villagers feel no need to migrate to urban areas.
Capitalism states: ‘Those who survive let them survive. Those who can’t, let them Perish’. This is what is happening in our Country. The Poor are seen as hurdles in the development path.

Crony Capitalism:Its complete nexus between Government, Rich and Bureaucratic. Rich influence government policy and bureaucrat implements it in favor of rich. Crony capitalism favor only rich and suppress poor in development. We can see such  huge activity in India around recent times starting from bofors to Coal scam. Scam and corruption are pre dominate after 1990 liberalism policy. Coal Scam, 2G scam, KG Basin scam, Antrix Scam, Black money, Hawala, Bond scam, CWG scam, Adarsh Scam etc the list is endless. It lead to accumulation of wealth on big monopolies. There is no difference between two major parties in India, since both supports Neo-liberalism policy.

External influence determine Indian government policy and governance. The rise of New imperialism policy across western countries resulted in forced economic situation in Third world countries. World bank, IMF, World trade center determines policy of nation's government. A good example would be Mexican situation were they borrowed excess of debt during 90's from World bank & IMF. Which forced Mexico government to except World bank demand. They ordered Mexico to open nation oil wells to Financiers. Such situation can change any time towards India. We need to be cautious over the situation of debt crisis and Opening Market.

Corporate/MNC: Most deadliest virus of imperialism of recent times. It's restructuring all major cities in developing countries. The Main form exploitation in mega cities against poor and Lower middle class. They are forcing an artificial economy and falsehood environment. It's indirect method of capitalism and imperialism. They don't concentrated only with particular nation alone since they divert capital to more countries.

Over through all Capitalist and imperialist approach from country and turn it towards Socialism.
Capitalist: "From each as much as you can get; to each as little as you can get away with giving."
Socialist: "From each according to his ability; to each according to his need."

Source:Internet source, Newspaper, Bablu thought's.        


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