The Economics Times Dec2008

7/29/2019 The Economics Times Dec2008

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7/29/2019 The Economics Times Dec2008

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Policy responses high on agendNon-planned

expenditure,

state and UT

plan

assistance in

the budgetmust be

diverted

towards

infrastructure

development

The globallinanctal crisis is causing a ronsiderable slowdown in

most developed countries. Gov-ernments are trying to containthe crisis. but the worst is nut yet

40

over. Stock markets arc down more than0,.{, from their recent highs. Investment

banks have .collapsed, rescue packages involving more than a trillion dollars are being drawn up, and interest rates have beenC1Jt around the world ill what looks like acoordinated response. India hasbeen badlyaffel1ed by tbe financial contagion. trade

and trade prices. reinitulllCeS.and aid in tbisrecession period. This condition has led toweaker export revenues. lowerinvesunentand growthrates. loss of employment, having social ellect of lower growth translatinginto higher poverty. more crime, weakerhealth systems and even more difficultiesmeeting   MDGs.

The currellt macro economic and socialchallenges posed by the global financial eri-sis require appropriate policy responses forreviving industrialisation on one hand andresponding to the impact of climate change

KC MALICK

Chairman,

BISWA

and pro-poor development on the other.The following measures can be taken tomaterialise this duo facto approach:

Infrastructure development: The

other non-planneand UT plan assbudget. that is 17

wards infra st ruet uschemes like. conways. houses, elecing a need for thetries like steel u'm

River basin m

ing industries can up the vacant placing sands from thhelp control floodjob opportunitie

promote agro-baforestry. fisheriesservation for conand sodo econom

Financial incgrowth : Increasiof the poor throuthe grass roots lCOllage MSMBs iproducts and servi

These efforts cain reviving the indMDGs ina su tain