China may have plus points, but India more durable option in long run: PM
The Economic Times, April 2, 2009, Page 11
Manmohan Says Stimulus Should Continue In 2010, Suggests Role For Crisis Managers
Our Political Bureau NEW DELHI
HIGHLIGHTING China’s lack of democratic credentials, Prime Minister Manmohan Singh has said that decisions taken in a multi-party democracy like India are more durable in the long run. Mr Singh, in an interview to a daily, said China, with its single party rule, has advantages in pushing through reforms and decisions but said that India scores over China as “a functioning democracy committed to the rule of law.”
“Our system is slow to move but I’m confident that once decisions are taken they are going to be far more durable,” Mr Singh said and gave the example of India’s economic reforms process which was initiated in 1991 but carried forward by successive governments since then.
His comments are significant as they come ahead of Thursday’s G-20 summit where all eyes are on China, which has emerged as a key player in international efforts to revive the global proceedings. In such a scenario, Mr Singh is clearly pitching India as a more “durable” option in the long run. Mr Singh said that not only is India a democracy but it also has respect for human rights, an issue over which China has continued to receive flak from all quarters.
“Democracy has its problems — it’s slow moving, the decision-making process is slow. But once decisions are taken, they are far more durable. I have every reason to believe in what is happening in India to move towards an inclusive growth path, in the framework of a democratic polity, committed to the rule of law, respect for fundamental human rights,’’ he said.
But Mr Singh also acknowledged that the Chinese system has advantages. He expressed regret over his government’s inability to push through economic reforms due to the Left. Unfazed by the Left’s argument that India has been saved from greater economic harm as reforms were not carried out, Mr Singh said that his government would have liked to move forward on certain economic reforms. “It is certainly true that we would have liked to move faster on some elements on economic reforms but politics is the art of the possible,” he said.
Mr Singh also said it was important for world economies to continue with stimulus packages till 2010. “...but it’s necessary to ensure that stimulus is sustained and maintained in the year 2010. I would suggest that these are again issues that should probably be handed to an expert crew either inside or outside the IMF so that whether each country is doing its bit — its adequacy, effectiveness — can be assessed by objective means,’’ he said.
Giving his formula for the steps needed to be taken by the world economies, Mr Singh said it is the responsibility of all major economies to come up with an agreement for “effective, credible fiscal stimulus.” He further said credit flows should be restored and a clean up operation of financial institutions should take place. “Capital flows have sharply declined. Trade credit has sharply declined. And there is a fall of export demand. The problems of emerging economies should also be taken on board,” he said
The Economic Times, April 2, 2009, Page 11
Manmohan Says Stimulus Should Continue In 2010, Suggests Role For Crisis Managers
Our Political Bureau NEW DELHI
HIGHLIGHTING China’s lack of democratic credentials, Prime Minister Manmohan Singh has said that decisions taken in a multi-party democracy like India are more durable in the long run. Mr Singh, in an interview to a daily, said China, with its single party rule, has advantages in pushing through reforms and decisions but said that India scores over China as “a functioning democracy committed to the rule of law.”
“Our system is slow to move but I’m confident that once decisions are taken they are going to be far more durable,” Mr Singh said and gave the example of India’s economic reforms process which was initiated in 1991 but carried forward by successive governments since then.
His comments are significant as they come ahead of Thursday’s G-20 summit where all eyes are on China, which has emerged as a key player in international efforts to revive the global proceedings. In such a scenario, Mr Singh is clearly pitching India as a more “durable” option in the long run. Mr Singh said that not only is India a democracy but it also has respect for human rights, an issue over which China has continued to receive flak from all quarters.
“Democracy has its problems — it’s slow moving, the decision-making process is slow. But once decisions are taken, they are far more durable. I have every reason to believe in what is happening in India to move towards an inclusive growth path, in the framework of a democratic polity, committed to the rule of law, respect for fundamental human rights,’’ he said.
But Mr Singh also acknowledged that the Chinese system has advantages. He expressed regret over his government’s inability to push through economic reforms due to the Left. Unfazed by the Left’s argument that India has been saved from greater economic harm as reforms were not carried out, Mr Singh said that his government would have liked to move forward on certain economic reforms. “It is certainly true that we would have liked to move faster on some elements on economic reforms but politics is the art of the possible,” he said.
Mr Singh also said it was important for world economies to continue with stimulus packages till 2010. “...but it’s necessary to ensure that stimulus is sustained and maintained in the year 2010. I would suggest that these are again issues that should probably be handed to an expert crew either inside or outside the IMF so that whether each country is doing its bit — its adequacy, effectiveness — can be assessed by objective means,’’ he said.
Giving his formula for the steps needed to be taken by the world economies, Mr Singh said it is the responsibility of all major economies to come up with an agreement for “effective, credible fiscal stimulus.” He further said credit flows should be restored and a clean up operation of financial institutions should take place. “Capital flows have sharply declined. Trade credit has sharply declined. And there is a fall of export demand. The problems of emerging economies should also be taken on board,” he said
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