It is the first time in the history of mankind that world is facing a financial earth quake of this magnitude. Even though the roots of this crisis have been in the developed world, its branches have spread all over the globe. When the world leaders play blame game, it’s the common man who is suffering
The Credit crunch has affected the base of global banking system. Credit crunch has led its way to the slow down of the whole of the economic frame work. The venomous thorns of the crisis have affected India also, even when the Prime Minister and other officials said “no”. Exports have reduced, production has backtracked and growth suddenly slipped to nowhere.
Factors that led to the Greatest Depression (of this century) are many. Failed policies of the developed nations, and the corrector, WTO, and the failed policy of capitalism, pursued by the developed nations and the lateness with which leaders reacted to crisis are all the reasons which can be told without doubt.
Indian Governments policy shift from socialism to crony capitalism of United States has been a major reason of recession in India. In India, it is paradoxical that the recession has happened when the centre is ruled 3 major economists- Manmohan Singh, P Chidambaram and Montek Singh Ahluvalia.They are continuing the privatisation of our banking and insurance system.
The only way to get rid of this global imbroglio is to regulate the market system. Inflation must be curbed. Stimulus package of 20000 crore announced by the Union Government seems to be not enough which is letting leaves of more than one lakh crore . We need to wait until any formidable is being taken to see a reverse in this trend in our developmental map.
Mukund P Unny
+919446521741
mukundparakkat@gmail.com
