Today, Mr. Sitaram Yechuri came to my college to give a talk on the namesake subject.
” This crisis is an inevitable consequence of the path of globalization that was unfolding in recent decades. ”
I wanted to write a small post on this, but when I was gathering resources, I found out this site and came to know that whatever Mr. Yechuri has told us today was already in this site. So I’m just giving a link to the site and I want all the readers to COMPULSORILY go through it if you want to know more about the future of Indian economy.
Now, I come to the points which were exclusively discussed in the college and were not covered in that site.
He said that the recession is reality and we have to face it. If you think that this global recession will be around for the next 8-12 months and after that everything will be all right just-as-before, you are in an illusion. Whenever the annual GDP growth of a country goes in negative (which luckily is not the case with India) even by 1%, it takes at least 3-4 years to recover. And today, the scene is that only 4 countries viz., India, China, South Africa and Brazil have a positive annual GDP growth. Also there is no guarantee that this growth will sustain till the end of this year. So, is there a solution?
Yes. If you’ve read the link above you’ll come to know that the main reason for economic differences between the rich and poor class of people were because of the low purchasing power. So How do we increase the purchasing power of the people. We, Indians feel proud to say that there are 36 billionaires in India, that we have a great economy but the fact is 78% of the people in India live by spending merely 20Rs/day. Only the top 1% of the people hold more money. This clearly explains the scenario of purchasing power of people in India. So what can be done? If you can generate employment for the Indians instead of going for the option of outsourcing, that would be a great idea. Somehow, it is necessary that people have the money so that they can spend it upon the things and thus the purchasing power increases. During the Great Depression, Mr. Roosevelt created this new scheme of dividing the labor into two sets, where one set of people would dig holes in the ground and the other set of people would fill that hole back and both the sets of people were paid for doing that. (Now that’s what I call unfertile employment.) But as you can see, at least they were getting paid for doing that which reduced the income inequalities and increased the purchasing power.
So all I want you to understand is that tough times are ahead and there is no short-cut to run away from them. So lets face them and convert this crisis into an opportunity for developing our country. He ended the talk by giving out this quote :
Whether you want it or not, a new world will be created. The question that arises is, whether you have a role in creating it or not? All I want you to do is take an active part in creating this new world rather than suffering in a world created by someone else.
PS: Mr. Yechuri is an awesome speaker. I enjoyed each and every part of his talk. 🙂