ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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MNEs Are Adjusting Their Sights

MNEs Are Adjusting Their Sights D N Ghosh The MNEs have their own strategies for the highly competitive global marketplace and are impervious to the consequences of these strategies for the specific economies they happen to operate in. These consequences could be unpalatable for employment and for domestic industry and services.

Level Playing-Field A Mirage

Level Playing-Field: A Mirage D N Ghosh How can the so-called Bombay group hope to derive any advantages from what is vaguely referred Was a 'level playing-field'. What these businessmen are asking for are certain financial facilities to acquire and maintain undisputed control of what they claim to be their own corporate entities. They seem to feel that they would be safe with majority control and could keep off hostile take-overs by foreign investors, this is ah illusion, however THE Volvo-Renault merger deal has touched soft spots in the Swedish psyche. The Volvo board considers this link as strategic to the long-term survival of its car manufacturing activities. This business decision is also perfectly in tune with the Swedish overtures to join the European Community. Volvo regards the decision, as a spokesman of the company puts it, "normal, natural and fair" Nonetheless several questions have been raised. As Volvo has always been a symbol of national pride, many Swedes would not like it to be tarnished. Volvo shareholders too feel uncomfortable that the French government would step in as the owner of the merged company. Even a respected conservative newspaper, which is normally against state intervention, has called upon the prime minister to stop the deal. Just as Renault is important to France, so is Volvo for Sweden

Capital Market Reform Battle of Interests

Capital Market Reform: Battle of Interests DN Ghosh The crucial factors in the market-place are the behaviour of the operators, the attitude of the regulators and the quality of the interaction between the two.

Reserve Bank Autonomy-Facing the Issues

While independence from the government is a necessary condition for a strong and effective central bank it is not a sufficient condition. The degree of effective independence and public acceptance will depend on how well a central bank performs and defends its own role over time. The issue needs to be deliberated on by an independent commission-but not as a command performance.

Struggle for Reform

Struggle for Reform D N Ghosh M. I do not claim expertise in any particular area and perhaps that is my strength. The White Paper covers a wide gamut of issues and we may confine ourselves to its most sensitive aspects. I must confess I am confused as to what is the core element in the currentprocess of economic reform. R. The goals of reform are growth and productivity in all sectors. We must achieve productivity levels which make our economy cost-effective and competitive in a global context. We are laggards in all fcteas, be it utilisation of capital, labour, land or services.

Priorities for Financial Reform

Priorities for Financial Reform D N Ghosh It is only by taking the debate on financial reform to a wider forum that we can in the medium term hope to develop a financial structure which is efficient and institutionally capable of putting through the reform process and serving the diverse needs of the real sectors of the economy.

No Apology for Turning Inwards

No Apology for Turning Inwards D N Ghosh In the developed countries there is a great 'turning inwards'

Making Foreign Investment Flow

Making Foreign Investment Flow D N Ghosh Multinationals and international business houses may be interested in seeking a foothold in India but only on their terms and conditions in regard to the choice of sectors, the conditions of their operations and the rights they would like to enjoy Inflow of foreign investment on a massive scale, which many in our country talk of, can come only on these terms. Are we prepared politically for a complete turnabout in our policies?

Free Marketism Precept and Practice

Free Marketism: Precept and Practice D N Ghosh While developing countries are being relentlessly pressurised to embrace free market policies no matter what the consequences, government intervention in support of local industry is increasingly finding favour in both the UK and the US.

Bank Profitability and Priority Sector Lending-From Populism to Impressionism

The curtailment of the target of priority sector lending to 10 per cent, as urged by the Committee on the Financial System, will send an unfortunate signal to the dispensers of credit that the basic objective for which priority sector lending was developed two decades ago is being diluted. Policy-makers in developing countries will from time to time find that they have to reconcile conflicting objectives, but they cannot afford to let crucial economic agents, such as banks and financial institutions, choose the easy way out of such situations.

Bank Regulation and Free Market Orthodoxy

Bank Regulation and Free Market Orthodoxy D N Ghosh Notwithstanding the freedom and flexibility enjoyed by the private sector, the banking system in the US and the other developed countries has been facing several types of financial disruption. The lesson clearly is that the system can be kept on an even keel not by following blindly the dictates of the free market ideology but by striking a balance between market and regulation. Will the Narasimham Committee be able to adequately address the complexity of the problem in a matter of a few weeks?

Stealth Finance Thriving on Conflict of Interest

Do the startling revelations about the two largest Japanese securities houses revelling in conflict of interest situations hold any lessons for us at a time when we are grappling with the organisation and functioning of the securities market ?

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