The market today is so called free market but is it really free? Previously it was in the claw of so called public sector companies which had nothing to do with the public. Post liberalization in 1991, the power shifted from public sector companies to few big business conglomerates which has such a large corpus of fund, that their sneeze can send fever in the market.
Lobbyists at their disposal can manipulate the policies, circumstances to suit requirement of these biggies. Take a note from 2G scam. With FIs, government, consumers, suppliers and others lining up to them, what chances an upcoming company really has?
The policies and norms should favorable to start ups and SMEs. This will encourage the innovation and entrepreneurship in the emerging market like India. This will provide employment at local level and also lead to improvement in regional disparity.
Some of the basic problems these SMEs are facing are shortage of fund, lack of trust beyond local market, lower visibility, lack of professionalism and inability to influence circumstances in their favor.
Various subjects of discussions which can lend a helping hand in the improvement of SMEs are ways to support SMEs financially, product and market development, Professional advisories on legal and accounting areas, consultancies with respect to joint ventures, business restructuring and streamlining the operations.
Friday, May 6, 2011
Thursday, April 30, 2009
economic disparity is mother of problems
What kind of world you are looking for? What do you want in your life? Prosperity, liberty, scintillating career, security etc. But the question is how to get this especially the last one, peace and security. It’s easy to achieve great height of success. It’s easy to be a part of so called elite group but you dare not ignore the miseries of those who failed to achieve what you have achieved. The reason is they will respond and retaliate hard considering this as injustice to them. They will make you responsible for their problems. Someone want a peaceful sleep but solution is not just to get all those prosperity but to defend yourself and your family from social disease which we call as theft, robbery, murder, terrorism and rape. The biggest myth is crime is indirectly proportion to economic growth. If you also have the same notion, you must observe the crime rate per thousand of population in some of the developed nations. The result is shocking.
its hard to believe that countries like Finland, U.S.A., Japan, France are among the countries with highest crime. It’s disruptive to nurture the notion of development equals peace. There are another information like unequal distribution of income. So is it economic development or unequal distribution of income which causes crime against humanity. The index called Gini coefficient may be the better indicator of the problem. The Gini index measures the economic disparity of a nation. Higher the Gini index means higher would be the economic disparity. The past data has shown that countries with higher crime has also recorded higher Gini index. Hence it shows that its not economic development but equal growth which is more significant. The solution to eradicate crime is to remove economic disparity that sows the seed of hatred and jealousy and lead to rampant crimes. Considering these situations its important to remove economic disparity from the society. Just ensuring higher development without having equal growth opportunity will substantiate the problems in the coming time. India today growing at unprecedented rate but at the same time wealth is confined to fewer sections and economic disparity is widening (though as per Gini index India is better off than many nations in this regard) but situation is worsening and we may witness rampant crime rate in the future. To have peaceful environment and to preserve our wealth and life it’s very important for the prosperous class to make it sure that growth should fructify one and all.
I believe that India of future will have equal opportunities for all. Everybody will have the chance to enjoy the piece of ice-cream Mountain. Everybody feel elated and there would be no complaining about god being bias to someone. Let’s put our hand together to have a peaceful and calm India which everybody can refer as paradise.
- Nitin Kumar Dalmia
(To contribute to the article contact at nitin.k.dalmia@gmail.com
its hard to believe that countries like Finland, U.S.A., Japan, France are among the countries with highest crime. It’s disruptive to nurture the notion of development equals peace. There are another information like unequal distribution of income. So is it economic development or unequal distribution of income which causes crime against humanity. The index called Gini coefficient may be the better indicator of the problem. The Gini index measures the economic disparity of a nation. Higher the Gini index means higher would be the economic disparity. The past data has shown that countries with higher crime has also recorded higher Gini index. Hence it shows that its not economic development but equal growth which is more significant. The solution to eradicate crime is to remove economic disparity that sows the seed of hatred and jealousy and lead to rampant crimes. Considering these situations its important to remove economic disparity from the society. Just ensuring higher development without having equal growth opportunity will substantiate the problems in the coming time. India today growing at unprecedented rate but at the same time wealth is confined to fewer sections and economic disparity is widening (though as per Gini index India is better off than many nations in this regard) but situation is worsening and we may witness rampant crime rate in the future. To have peaceful environment and to preserve our wealth and life it’s very important for the prosperous class to make it sure that growth should fructify one and all.
I believe that India of future will have equal opportunities for all. Everybody will have the chance to enjoy the piece of ice-cream Mountain. Everybody feel elated and there would be no complaining about god being bias to someone. Let’s put our hand together to have a peaceful and calm India which everybody can refer as paradise.
- Nitin Kumar Dalmia
(To contribute to the article contact at nitin.k.dalmia@gmail.com
Thursday, February 12, 2009
GOVERNMENT INTERVENTION TO FREE MARKET
There is an ongoing war for decades on the virtue of free market and the intensity of arguments are only magnifying. The theories have divided the most prominent economists of the world literally into two schools of thoughts. The recent turn moil has only made the quibble more debatable. The faith on Milton Friedman’s free market is eroding as government looking back to the theories of Keynes. But the argument is still going whether to allow the market operate independently or there should the government intervene now and then to correct the extreme situation in the economy jeopardizing taxpayer’s fund.
The fact is that the so called free market i.e. the market which is exclusively driven by demand and supply and market finds its own equilibrium based upon some assumptions. In fact free market is just the myth as assumptions are purely non-applicable in the contemporary world. The proponents of free market have given no space to the sentiments in their theories and have created the concept on the assumption that all investors and players are rational which itself is the irrational notion. In the modern market, sentiments seems to be playing the most significant role deciding the ups and down in the market. “we have been dying because of sentiments and not because of sub-prime crisis”, statement given by Lehman Brothers at the time of filing bankruptcy just proves the point.
Everything has been changed in past few months and the financial world is no more the same. Wall Street giants are crumbling and Detroit based automakers are continuously banging government door to bailout. The companies across the globe finding it tough to raise the capital in any form because of bad sentiments. The firms are under immense pressure, investors are redeeming the funds. Global market has lost have of the valuation in stock markets. The circulation of liquidity is declining and it is all because of sentiments. Companies have lost all their trust and each other and the way business is being done has all changed. Credibility has declined and situation is getting worst , again as a result of sentiments. If the government doesn’t intervene at this stage and allow the existing sentiment to sustain, it could create havoc and would have unprecedented ripple effect across the globe that could send the world into another great depression, one like 1929.
The sentiments not only affect the financial economy but also the real economy. It reduces the demand for few specific sectors, which in turn response by cutting employment. This in turn affect demand for other sectors as well and they again response in the same manner causing vicious circle led to fall in overall demand as well as GDP. This also creates higher demand supply mismatch and may cause deflation which could be the worst scenario. Many of the followers of Freidman might not be in favor of government intervention but the need of the time is to send a strong message, a spark which could turn back the market sentiments and take the economy back to its track. It might cost trillion of greenbacks and but could save many times more in the future. Free market sound good in normal period and admired much during boom but intervention is essential during time of overheating and bad times. It becomes necessary for the government to leave relinquish their abode and take the rein of the market in their hand to save the broader mass.
-Nitin Kumar Dalmia
(to contribute for further discussions
Contact at nitin.k.dalmia@gmail.com)
The fact is that the so called free market i.e. the market which is exclusively driven by demand and supply and market finds its own equilibrium based upon some assumptions. In fact free market is just the myth as assumptions are purely non-applicable in the contemporary world. The proponents of free market have given no space to the sentiments in their theories and have created the concept on the assumption that all investors and players are rational which itself is the irrational notion. In the modern market, sentiments seems to be playing the most significant role deciding the ups and down in the market. “we have been dying because of sentiments and not because of sub-prime crisis”, statement given by Lehman Brothers at the time of filing bankruptcy just proves the point.
Everything has been changed in past few months and the financial world is no more the same. Wall Street giants are crumbling and Detroit based automakers are continuously banging government door to bailout. The companies across the globe finding it tough to raise the capital in any form because of bad sentiments. The firms are under immense pressure, investors are redeeming the funds. Global market has lost have of the valuation in stock markets. The circulation of liquidity is declining and it is all because of sentiments. Companies have lost all their trust and each other and the way business is being done has all changed. Credibility has declined and situation is getting worst , again as a result of sentiments. If the government doesn’t intervene at this stage and allow the existing sentiment to sustain, it could create havoc and would have unprecedented ripple effect across the globe that could send the world into another great depression, one like 1929.
The sentiments not only affect the financial economy but also the real economy. It reduces the demand for few specific sectors, which in turn response by cutting employment. This in turn affect demand for other sectors as well and they again response in the same manner causing vicious circle led to fall in overall demand as well as GDP. This also creates higher demand supply mismatch and may cause deflation which could be the worst scenario. Many of the followers of Freidman might not be in favor of government intervention but the need of the time is to send a strong message, a spark which could turn back the market sentiments and take the economy back to its track. It might cost trillion of greenbacks and but could save many times more in the future. Free market sound good in normal period and admired much during boom but intervention is essential during time of overheating and bad times. It becomes necessary for the government to leave relinquish their abode and take the rein of the market in their hand to save the broader mass.
-Nitin Kumar Dalmia
(to contribute for further discussions
Contact at nitin.k.dalmia@gmail.com)
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