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RE: trade liberalization
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Please help make the Manifesto better, or accept it, and propagate it!
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IPI_Marker
Sir,
Before rubbishing someone so rudely, perhaps you should slow down the
rate
at which you are shooting off mails. The economy of a country depends a
great deal on its energy resources, and its energy usage. Do you realize
what would happen to India's economy if the fuel we get from the Middle
East
stops flowing? or if the diesel and petrol prices went up by just 3
rupees?
You could not afford even butter. The economy is a complex system with
all
its components playing by "rules" that are yet to be understood. And
energy
is a very important component. Your are no economist, sir. I'd advise
you
stick to home economics.
-----Original Message-----
From: Ashish Hanwadikar [mailto:ashish_hanwadikar@yahoo.com]
Sent: Friday, November 30, 2001 10:28 AM
To: debate@indiapolicy.org
Subject: Re: trade liberalization
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Please help make the Manifesto better, or accept it, and propagate it!
---------------------------------------------------------------------
IPI_Marker
Hi MV,
After going through your email I didn't know whether to laugh or
cry. When I read your sentence numbered 1.) I was shocked with
disbelief! Where did you get the idea? Value of currency linked to
energy? Are you nuts! Take a chill pill and go see a shrink!
Regards,
Ashish
> 1. There is a universal currency system so that the value of
> currency is same across countries, and the value of currency
> is directly linked to energy.
> The above scenario will work only under certain conditions.
>
> 1. There is a universal currency system so that the value of
> currency is same across countries, and the value of currency
> is directly linked to energy. The only way we can define
> currency with any meaning is "representation potential to
> mobilize energy" which was true from the beginning of trade
> until fossil fuels, coal and petroleum (pre stored energy)
> were discovered.
>
> Today under the floating currency system the value of currency
> is determined by very complex equilibrium dependent on umpteen
> variables which can easily be manipulated by vested interests,
> and it is happening every day.
>
> Under a energy based universal currency system the hourly
> unskilled labour cost will become uniform across countries,
> and the scenario you described above may be possible.
>
> 2. People should be adaptable. Which again requires minimum
> education, i would say equivalent of Indian ICSE syllabus 10th
> standard that will equip people to absorb new agricultural or
> industrial production techniques and enable them to market
> the resulting products nationally and internationally.
>
> A good illustration is our traditional craftsmen who make
> products that have good market in India and abroad, but the
> craftsmen do not get to enjoy the benefit of that market
> since they do not have the marketing capability which
> requires decent command of english the language of Indian
> and international trade. What is happening today is the
> profits are suctioned by the middle men or traders and
> in the process the craft becomes non profitable for the
> craftsmen and they look to other avenues, in process the
> product and the market disappears and the skilled artisan
> becomes unskilled labourer.
--- MV <maxv@vsnl.com> wrote:
> ---------------------------------------------------------------------
> Please help make the Manifesto better, or accept it, and propagate
> it!
> ---------------------------------------------------------------------
> IPI_Marker
>
> > From: "Ashish Hanwadikar" <ashish_hanwadikar@yahoo.com>
> > Hi Prakash,
> > > How would that happen ? what changes would the unilateral
> droppping
> > > of
> > > indian (or develping country) tariff do to the US econmy to make
> them
> > > shake from its impact ? My guess is that they would prosper more.
> > > (and
> > > so would indian consumers - no denying that)
> >
> > Just imagine for a second we drop tariff on imported goods. Those
> goods
> > will be very cheaper. Not all goods are consumables. Some like
> > Computers, and other electronic equipments, heavy equipment like
> Cars
> > are both consumer as well as capital equipment. Depends on how you
> use
>
> > it. If you use Car for transporting goods then it is a capital good
> > (because it is used to produce other goods and services). Since
> cost
> of
> > such capital become less our productivity will increase. Since,
> those
> > items that can be produced efficiently by other nations can be
> easily
> > imported by Indians we will direct our resources to production of
> those
> > goods and services which are costlier to import (even after making
> > tarrifs negligible). This will again increase productivity of our
> > resources. I will give an concrete example. Let's take the example
> of
> > wheat. Let's say that imported wheat after removing high tarriffs
> will
>
> > cheaper compared to what can be domestically produced. Because
> wheat
> > now will be imported by Indians the Agricultural land that was used
> to
>
> > produce wheat before is now available for other purposes (building
> > factories, houses etc.). Thus because of increase in the supply of
> land
> > the cheaper land can be used to produce other goods and services
> for
> > which India has competitive advantages. Now because of increase in
> the
>
> > supply of land (because of import of wheat) the goods that were
> > exported by India earlier can be produced at a lower production
> cost.
> > That will allow India to capture the market for export of those
> goods
> > and services (for example Call Center, Software Development, maybe
> > Textile).
>
> The above scenario will work only under certain conditions.
>
> 1. There is a universal currency system so that the value of
> currency is same across countries, and the value of currency
> is directly linked to energy. The only way we can define
> currency with any meaning is "representation potential to
> mobilize energy" which was true from the beginning of trade
> until fossil fuels, coal and petroleum (pre stored energy)
> were discovered.
>
> Today under the floating currency system the value of currency
> is determined by very complex equilibrium dependent on umpteen
> variables which can easily be manipulated by vested interests,
> and it is happening every day.
>
> Under a energy based universal currency system the hourly
> unskilled labour cost will become uniform across countries,
> and the scenario you described above may be possible.
>
> 2. People should be adaptable. Which again requires minimum
> education, i would say equivalent of Indian ICSE syllabus 10th
> standard that will equip people to absorb new agricultural or
> industrial production techniques and enable them to market
> the resulting products nationally and internationally.
>
> A good illustration is our traditional craftsmen who make
> products that have good market in India and abroad, but the
> craftsmen do not get to enjoy the benefit of that market
> since they do not have the marketing capability which
> requires decent command of english the language of Indian
> and international trade. What is happening today is the
> profits are suctioned by the middle men or traders and
> in the process the craft becomes non profitable for the
> craftsmen and they look to other avenues, in process the
> product and the market disappears and the skilled artisan
> becomes unskilled labourer.
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