Saturday, January 4, 2020

What is wrong with the Economy

Very well presented. The whole problem with the economy is lack of administration and accountability by any Institution either in the private sector or public sector. The Government's Politics have been by and large a success story but the Economics pursued so far continue to be a failure. The measures like Demonetisation , GST, Make In India  and all other welfare measures are all well intended but unfortunately have not yielded the desired results at ground level despite the public extending whole hearted support for all the policies of the Government. This  should make every one associated with the policy making seriously ponder. Either the bureaucracy has failed or the politicians have lost control on administration resulting in the failure of implementation of various reforms so far attempted. The maximum  Governance promised  is literally absent and unfortunately no governance is practically present is what the the people regret. Corporates , Banks, NBFCs, Regulators and other Institutions engaged in production of physical goods and extending  all services and administering have become Non performers turning the Assets of the Country into non performing resulting in the so called slow down of the economy in terms of data generated apparently although the poverty and misery otherwise seen in the country is not that visible. Something is seriously wrong somewhere and this needs to be identified and fixed. Perhaps, a better administration making all Institutions accountable with drastically improved data collection and restoring the fast eroding values , ethics and  above all TRUST  in the Governance Standards can make wonders and definitely the economy can deliver. The Informal Economy is emerging strong fast is the reality and there should be persistent and solid measures to merge the informal economy with the formal economy. Half of  the problem gets solved instantly if this is done.

( This comment is given in response to Dr Yerram Raju's Article on the Economy that appeared in Money Life Magazene).

No comments: