The Financial Express -- Expressions

This page contains Editorial and Op-Ed articles

Saturday, December 27 1997

Letters to the Editor

Income inequality without conflict

It is often said that capitalism -- that is, a market economy -- is morally obnoxious because its "trickle-down economics" inevitably creates inequality of income and wealth. Now it is certainly true that "trickle-down economics" has that effect. It is also true, however, that if you want economic growth and greater affluence for all, there is simply no alternative to "trickle-down economics," which is just another name for growth economics.

Reforms: The sequel

The setting up of a committee to recommend how to go about the second phase of financial sector reforms is good news. Many of the recommendations made by the first committee, also presided over by M Narasimham, have been implemented, and the reforms which those recommendations unleashed have changed the face of Indian banking.

Answers from the McKinsey-CII report

India's sleeping? Food. Yes, if one has to believe the McKinsey-Confederation of Indian Industry report entitled FAIDA - Food and agriculture integrated development action. To quote: "The opportunity to supply basic food for the basic needs to hundreds of millions of consumers whose requirements are expanding with rising incomes, will be worth $40 billion over the next decade -- more than the value of India's entire industrial sector today."

For an active futures market in commodities

Pre-requisites for futures trading

Income inequality without conflict

Savings surplus

Reforms

Answers from the McKinsey-CII report