Re: Encounter with Rajiv Gandhi: On the Origins of the 1991

[Ashish Hanwadikar <ashish_hanwadikar@yahoo.com>]

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Please help make the Manifesto better, or accept it, and propagate it!
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IPI_Marker

Hi Srinu,

> Then why hasn't Subroto's paradigm of common markets worked with
> Israel and Palestine?

Before we make judgement about whether it worked or not I wonder
whether the idea of common market with Israel and Palestine tried at
all! As for as I know Israel is very Socialist in nature with lots of
import duties, subsidies and Govt. running most of the institutions.

If you have some information regarding the attempt to form common
market between Israel and Palestine and its results kindly share with
us!

Here is a good discussion on this subject:
Free Markets Would Enhance Peace, Prosperity in the New Middle East
http://www.cato.org/pubs/policy_report/pr-ma-me.html
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An emphasis on free markets would lead to dramatic economic growth in
the Middle East and advance the cause of peace, according to the
Israeli, Palestinian, and American participants in a Cato Institute
conference, "Arab-Israeli Peace: Prosperity or Politics?" held in New
York City on January 26.

Yakir Plessner, a scholar at the Institute for Advanced Strategic and
Political Studies in Jerusalem and a former deputy governor of the Bank
of Israel, said that although Israeli governments have recognized the
need for far-reaching economic reforms since 1985, the record has been
mixed at best, since many new developments, such as the increasing tax
burden, have actually hindered growth.

Ishac Diwan of World Development Report argued that "with a
well-educated population, large amounts of skills and capital abroad, a
strategic position between Israel and the Arab world, and a promising
tourism potential, the removal of old restrictions on supply and demand
can be expected to lead to fast growth [in the West Bank and Gaza]."

Economist Bruce Bartlett of the Alexis de Tocqueville Institution
reviewed the record of foreign assistance to Israel and Egypt and
suggested that those experiences "do not provide support for the idea
that foreign aid is the key to Palestinian prosperity." He suggested
that the region would benefit from a cutoff of aid since
government-to-government transfers have had long-term negative effects.

Arguing in favor of "self-determination through market orientation,"
Palestinian economist Hisham Awartani of the West Bank's An-Najah
National University said that Palestinians should avoid following the
statist economic examples set by both Israel and the neighboring Arab
states. He also warned against the danger of becoming dependent on
foreign aid.

Alvin Rabushka, a senior fellow at the Hoover Institution, suggested
that a return to the high economic growth of Israel's early years would
mean overcoming obstacles such as chronic inflation; high tax rates;
the unduly large public sector; and state ownership of land, industry,
commerce, and banking.

A luncheon audience heard renowned Wall Street investor Jim Rogers,
author of Investment Biker, tell how the inherently pacifying forces of
the market could end centuries of conflict in the Middle East. Rogers
pointed to contemporary and historical examples of markets subduing
conflicts among nations.

A panel on free trade examined the benefits of lifting trade
restrictions between Israel, Jordan, and the Occupied Territories.
Speakers included Ephraim Kleiman of the Hebrew University in
Jerusalem, Karim Nashashibi of the International Monetary Fund, and
Cato chairman William Niskanen. Sir Alan Walters, director of AIG
Trading, said that a currency board in Israel would create a stable
shekel, while David Malpass of Bear Stearns & Co. assessed the Middle
East investment climate.

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Regards,
Ashish

--- Srinu.Picasso@cine.net wrote:
> ---------------------------------------------------------------------
> Please help make the Manifesto better, or accept it, and propagate
> it!
> ---------------------------------------------------------------------
> IPI_Marker
>
> Then why hasn't Subroto's paradigm of common markets worked with
> Israel and Palestine?
>
>
> > Hi Srinupi,
> >
> > Try opening up India's borders to Pakistani goods (no or minimal
> import
> > duties) and then see how the trade happens!
> >
> > I will ask you to perform a simple thought experiment. Try
> imagining
> > two bitter enemies! Always fighting physically with each other.
> They
> > dislike each other so much that they will kill each other at a
> moment's
> > opportunity!
> >
> > Now tell them that they can trade with each other (but cannot
> > physically attack each other!). The trade happens because everybody
> is
> > ready to give up something which is less valuable to himself in
> return
> > for something which is more valuable! Offer such a deal to your
> enemy
> > (but first making sure that he cannot physically attack you) and
> > believe me he will trade with you!
> >
> > The reason trade is not happening between India and Pakistan is not
> > that people refuse to do trade with their enemies but because
> Govt's of
> > both countries find it political profitable to control the trade!
> >
> > > Another reason is that the two economies remain relatively
> > > "weak" in
> > > terms of GDP and export strength in the forseable future.  For
> > > example, Mexico
> > > is more likely to link its economy to US than to say with some
> other
> > > country
> > > south of its border.
> >
> > Amazing brilliance! The trade will not happen because two economies
> > remain relatively "weak" in terms of GDP and export strength! What
> the
> > heck do you mean? GDP of my family is terribly "weak" and our
> family do
> > not have "export strength" but still we trade with others! Try
> taking
> > an Economics 101 Class.
> >
> > > For
> > > example, Mexico
> > > is more likely to link its economy to US than to say with some
> other
> > > country
> > > south of its border.
> >
> > What do you mean link its economy with US? You don't have to link
> with
> > any economy to trade with that country! Just get the Govt. out of
> the
> > way and see the trades happen! Also, if Mexico is likely to trade
> with
> > powerful US rather than other weaker countries in the south, how
> come
> > US is ready to trade with "weaker" Mexico?! Trade happens because
> there
> > is something to gained by all the trading partners by exchanging!
> As
> > long as that condition exists the trade will continue and it will
> stop
> > when the condition stops existing (Although, that is nearly
> > impossible)!
> > Is this simple thing so hard to understand?
> >
> > Regards,
> > Ashish



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