Tuesday, November 11, 2008

Book Review

C.T. KURIEN reviewed the new book on SUSTAINING INDIA’S GROWTH MIRACLE Edited by Jagdish N. Bhagwati, Charles W. Calomiris

The following are the key ideas suggested by authors:

Arvind Panagariy: Comparing the growth profiles of China and India, Panagariya points out that in the former, capital flow was into unskilled/labour-intensive industries which helped the country to become a major supplier of light industry goods to the rest of the world. 

…..suggests that if foreign capital is to move into unskilled/labour-intensive industrial segments in India, now dominated by the informal sector, some drastic changes in labour legislation favouring foreign capital are called for.

T.N.Srinivasan: The first is to create a Fiscal Review Council, partly to replace the periodic Finance Commission, but mainly to provide a forum for the Centre and the states to discuss each other’s fiscal policies in a common forum.

…..the second, to convert the Planning Commission into a Fund for Public Investment is questionable as it perceives the role of the Planning Commission solely as a funding body.

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