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Move away from US-centric global economy: Pitroda
Syed Amin Jafri in Hyderabad |
January 07, 2003 17:29 IST
WorldTel CEO Sam Pitroda on Tuesday said it was necessary for all nations to move away from the US-centric global economy and open up new avenues for attaining sustainable market and economic development.
Addressing a session on 'Business stability: Quest for a sustainable market' at the ongoing CII Ninth Partnership Summit in Hyderabad, Pitroda said the US dictates global policies and programmes to the extent that a mere sneeze in the US economy results in an epidemic in the world economy.
The answer to the question of attaining a sustainable market lies in changing the world systems, he said. Thus, it was important for nations and businesses to bring in a social transformation and open up new avenues for business.
He suggested three major reforms to achieve a sustainable market for India. First, India needs to go in for massive political reforms. India should come out of the 19th century political system to a more modern 21st century political system.
Secondly, administrative reforms should be expedited, especially since India still uses the administrative system followed by British India.
Third, judicial reforms are needed to facilitate speedy disposal of cases. "There is no point if cases dragged on for a decade or more. Once these changes take place, once new ideas for work are created, India would attain a sustainable market, free of the control of the US," he said.
On the question of how to create a better economy and create better jobs, he said India must first solve its basic problems, which did not relate to low level of FDI inflow or need for more foreign technology.
The problems plaguing India are population, illiteracy, water, sanitation, health and housing among others, he observed. These are the challenges to development that India must meet, he said.
India, he said, should work towards creating a model system that could bring growth for its one billion people coupled with global economy but at the same time, independent of any external control.
"India has the minimum critical mass to bring about the change, through its IT and knowledge base. What it needs is to change its focus from foreign exchange reserves to developing the economy."
He said it was also time to think about creating a new economic order where no country shall have control over the others.
Pitroda said that most of the latest technology in the world, during the last 50 years, had come from the US, once again giving it the position of dominance.
The American dominance on the world could be seen in yet another side of business life -- namely, the financial sector. IT is supposed to provide decentralisation in everything except the financial world, where dollar dominates, providing a perfect antithesis to the IT revolution.
The economic system that had evolved after the Second World War was also controlled by the US and everyone knows what happened to countries that took loans from the World Bank and International Monetary Fund, he added.
He said that trade zones had been set up with the aim of increasing trade between the countries in the zone. However, these countries were more concerned about their business with the US than among themselves, defeating the very purpose of creating such trade zones. This needs to change, he said.