The Hindu : Proper economic governance a must, says Swamy

Online edition of India's National Newspaper
Wednesday, Jan 14, 2004

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National

Proper economic governance a must, says Swamy

By Our Staff Reporter

MADURAI, JAN. 13. The Union Government was only complying with the requirements of the World Trade Organisation (WTO) by carrying out reforms on the tax front, the Janata Party president, Subramanian Swamy, said here on Monday.

Any government would be required to do it and the "media, ignorant of economic realities", was creating the impression that it was a populist move by the Bharatiya Janata Party, with an eye on the coming elections to the Lok Sabha, Dr. Swamy said, referring to the recent tax cuts in excise and customs duties announced by the Union Finance Ministry.

Dr. Swamy was speaking on the `impact of globalisation on Indian society', a UGC-sponsored lecture programme, organised by the Department of Sociology, Madura College, here.

Proper economic governance was imperative to reap the good effects of globalisation, he said, cautioning the Government against blindly following the diktat of the International Monetary Fund. He cited the economic disasters faced by countries such as Argentina and Indonesia.

The advantages were greater exports and foreign investments and the risk factor was the volatility of the market. Good governance was to make globalisation morally adequate and socially tolerable. There had to be an effective leadership to ensure that westernisation did not ruin the family system in the country, where social security was not in place.

Regional and religious divisions could be accentuated in the new economic scenario, he warned, and at the same time maintained that since globalisation was inevitable, irreversible and irresistible, Indian industry had to improve its marketing skills, he emphasised.

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