At the latest edition of Express Adda,Martin Wolf,chief economics commentator with the Financial Times,told a select audience of Indian financial capital’s movers and shakers that India needs to be globalised if it has to become a developed economy.
Wolf,who shared the stage with Adi Godrej,the chairman of the Godrej Group,said India’s problems are homegrown but it would be least affected among BRIC countries if there is a global meltdown.
”I am a bit sceptical if India can grow at 9-10 per cent… But India may be immune to global economic troubles as it has not globalised enough,” Wolf said in a series of conversations with people at the centre of change at Mumbai’s Olive Bar and Kitchen.
Wolf,who is also not known to be shy of speaking his mind on the political and economic turbulence the country is facing,said chances of implosion of developed world has marginally reduced but it is still in a controlled depression
Having started his career at the World Bank in 1971,Wolf left it to become director of studies at the Trade Policy Research Centre in London and joined FT in 1987. Wolf also has several books to his credit,including Why Globalisation Works and Fixing Global Finance.
Recently,he wrote about the inability of leaders to provide economic stability and the risks that the world would face in 2012. He also feels that when both the developed and emerging economies are weaker than they were in 2008,their ability to respond to growing risks will be weak.
Here are the highlights of the Express Adda:
* Chances of implosion of developed world has marginally reduced but it is still in a controlled depression.
* India’s problems are homegrown but it will be least affected among BRIC countries if there is a global meltdown.
* Adi Godrej,Chairman,Godrej Group,says things seem to be slowly improving for the indian economy and sentiment is looking up.
* India may be immune to global economic troubles as it has not globalised enough.
* India needs to be globalised if it has to become a developed economy.
* Indian organised sector has failed to grow due to lack of political consensus on labour issues,among others.
* India cannot become a developed economy without pushing manufacturing.
* RBI seems very conscious about managing monetary.
* RBI has had an oversight over everything and nowadays central banks around the world want to do the same.
* RBI therefore is the model for the future as all central banks want to be able to prevent crisis
* India would grow faster if it got rid of its fiscal deficit
* I am a bit sceptical if india can grow at 9-10 %.
* Adi Godrej says if we get our policies right India can very easily grow at 9-10% even if the rest of the world is in trouble.
* Wolf says quality of public goods/services define the quality of a civilisation.
* Part of pro-growth policies in India should include providing for infrastructure,education and healthcare.
* Martin Wolf says he is confident that the US will fix its problems but it might take a long time.
* Inequality in societies rising all over the world,says Martin Wolf.
* German Chancellor Angela Merkel is a shrewd politician but we do not yet know if she will be a statesman,says Wolf.