new year 2007
Posted by tejbir on January 1, 2007
HAPPY NEW YEAR!!!
A small incident made me a bit sad but I ended the very genesis of that and the best part is that I will end up writing more frequently here now.
Anyway, coming back to my usual self, the wait for 7th Jan has intensified. The activity on the group is minimal and PGPX-II awaits an outcome with mixed anticipations.
There is an article in today’s BL by Mr. S. Venkitaramanan “Tasks for the year ahead”. He writes, “Output of capital goods is an indicator of the investment demand and business confidence. The Mid-Year Review shows that the capital growth surpassed manufacturing growth in 29 out of 30 months since Apr 2004. This is a good augury for continuing growth in the economy.”
This led me to think if a higher capital growth than manufacturing growth is really good? I get a feeling that a higher capital growth than manufacturing growth may lead to idle capital and eventually slowdown the supply in the economy besides creating excess capacities and blocking money in unused assets. Though, it will take a few more intense sessions of thoughts for me to come to a counter for my own such feelings, I think I should pose this to the man who initiated me into economics.
Today’s paper also carries a wonderful analysis by G. Srinivasan “World Bank in makeover mode” in which he talks about the proselytisation of World Bank from an avid supporter of Globalisation to an advocate of a “cautious” approach to globalisation. My feelings on the same is that the proselytisation was inevitable because at the time when globalisation took birth we didn’t have technology advancement as it is today. Owing to such advancements in technology from 80s to 2006, the effects of globalisation are much different from what it was assumed at its inception.
