Economy
Do oil prices still matter for the world economy?
The doubling of oil prices between 1998 and early 2000 has not had any significant negative impact on world output and trade, unlike earlier such increases. In this edition of Macroscan, C. P. Chandrasekhar and Jayati Ghosh consider the reasons for this
and assess the implication of oil price changes for oil exporters and importers in the new international economic context.
Fallacies in liberalisation policies
Consider the consequence of the reliance on external capital to promote India's development. Consider the recent Finance Ministry directive to the Central Board of Direct Taxes that any capital routed via Mauritius (even though not originating in Mauriti
us) would enjoy total exemption from direct taxation on its earnings in India. The above merely illustrates how we are becoming prisoners of our erroneous policies, says
Editorial
Insecurity about water
IT IS DISAPPOINTING that the conference of State Chief Ministers made little headway last week discussing the draft National Water Policy that seeks to evolve a mechanism to ensure a better distribution of water resources. Even the moderating presence of
the Prime Minister seemed to make no difference to the State ministers, who continued to speak with traditional, shrill voices on how the States must continue to control their water resources. Water is a State subject, but the Centre, in a paternal way,
has been showing a new keenness to take a more active role than in the past. The fruitless New Delhi meeting indicates that the States are unwilling to give the Centre much room.
Fertilisers
Why is Oman dithering now?
JUST a day before the Cabinet Committee for Economic Affairs approved the Oman-India joint venture, the Government was reported to have received a message from Oman Government that it was no longer interested in continuing with the project. Though the Om
anese cited delays (the MoU for the joint venture was signed in 1994), this is irrelevant now as the Government has given its approval. To get to the real reason, one has to look at the terms of the agreement.
Forex
Dollarisation: Panacea for all exchange regime woes
MANY RECENT happenings have renewed interest in dollarisation. The experience of Argentina's currency board-like system since 1991, the currency board's role in Bulgaria's stabilisation programme (1997) and Panama's successful running of official dollari
sation since 1904, have stirred debate, especially in Argentina, Ecuador and Mexico. The establishment of the monetary union in Western Europe and the willingness of other economic zones to follow suit has contributed to this debate.
