The last two decades have seen the death of 'isms'.
Communism died with the fall of the Berlin Wall and the advent of perestroika in the USSR. The Capitalists rejoiced with the hope of creating a Global Capitalist Economy. Globalization, Privatization and Liberalization were rammed down the throat of the Developing Countries by the so called Developed Countries, who gloated at the prospect of controlling the global economy and living on the fruits of the cheap labour in the 3rd world countries. The Developed Capitalist Countries thought they had deep pockets, and their financial clout shall give them the controlling power over the rest of the world.
Lehman Brothers changed all that. The Sub-prime crisis and ensuing financial meltdown, showed the Capitalist Countries for what they are - countries full of hot air balloon, living on borrowed money and spending way beyond their means. All it requires to destroy a hot air balloon is one prick with a needle. The Lehman Brothers was the prick that destroyed the Capitalism for ever.
High Debt, negative Balance of Payments, rising unemployment, increase immigration, falling standards of living, no core competencies - these are the hallmarks of the Capitalist Countries now.
Greed and insensitiveness of the powers that be destroyed Communism. Greed and insensitiveness of the Bankers and politicians destroyed Capitalism.
The Developed Countries are going back to nationalism, protectionism. US has announced a series of initiatives to spur local entrepreneurship. France is looking inwards. As do many of the Eurozone countries. Even the GCC countries are going in for a purge of expat population by increasing local recruitment.
In this scenario, perhaps the only country that cares a fig for the nationals and their well being is India, under the current Government. We are still talking of FDI, FII, Nuclear Deal, opening up the Economy, killing local entrepreneurship through high interest rates and red tapism. Instead of chasing FDI, all the Government had to do is reduce the flight of capital. In 70s and 80s, we were worried about the flight of intellectual capital. Now, our industrialists are investing everywhere in the world, except India. And we dont do anything about it.
The foreign media yesterday called Manmohan Singh the poodle of Sonia Gandhi. At least the poodles do no harm and are adorable. The same cannot be said of MMS.
It is two weeks since MMS took over the Finance Ministry and asked us to liberate our animal spirit. Only problem is he didnt mention which animal. Perhaps guinnea pigs or white rats, who allow themselves to be used as experimental speciman by the rich scientists? In any case, MMS hasnt shown any leadership during the two weeks he is at the helm of the Finance Ministry. Is it a clear indication that the mess is much bigger than it is? I guess so.
