Discussion in 'Economy & Infrastructure' started by t_co, Aug 28, 2013.
BBC News - Rising onion prices sting India
For India's Inflation Crisis, See Onion Prices - Businessweek
That is why I think the subsidizing foods plan is very difficult to be executed. This bill has increased the burden on Indian foreign reserve, and turned into an accelerator for depriciation of Rupee, which in return fueling the inflation, it will be a negative circular. The depreciated rupee is not strenghening the export capability in at least short term (2-3) yrs. so this short term will be extrimely difficult for average indian.
If what you say is right, and these macroeconomic effects do pan out, then the food bill could very well be the undoing of the Congress Party. æ¬èµ·çŸ³å¤´ï¼Œç ¸è‡ªå·±è„š
Well, I can only say that is the by-product of democracy. In order to get re-elected, politician intended to do some window dressing with no consideration regarding possible down fall.
However, democracy is an untouchable doctrine in India, Indian will never accept any claim regarding the flows of democracy.
Well, one could say that the 4 trillion RMB stimulus package in 2008 was a similar handout from the CCP to its 'key stakeholders' (SOEs and the construction/real-estate/local-government cash nexus) in a time of need.
Every system has its special interest groups. The trick is to create a system that keeps its eyes on the larger goal instead of becoming captured by them. In China, that means having a strong Party Center or Chairman that can outmuscle special interest groups when necessary. In India, it means having a PM/ruling party who can win elections without needing to buy votes or beg third parties to form coalitions.
Of course, the 'creation' of such phenomena is a misconception; such arrangements usually only occur as a happy accident, and are the exception, rather than the norm, in any government.
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