Kant calls for balanced economic management

By Our Special Correspondent

BANGALORE, AUG. 12. The Vice-President, Mr. Krishan Kant, has said that the ``IT-bust'' should remind everyone of the transient character of an economic boom and the need for a balanced approach to economic management.

Inaugurating the three-day Asia Pacific Enterprise Summit 2001 here on Sunday, Mr. Krishan Kant said the value of a balanced approach to economic management had never been more tellingly obvious as today. He observed that capitalism functioned best when it encouraged and rewarded economic creativity, but at the same time it required the tempering of consumption and an abundance of altruism. The Asian tradition rightly extolled the virtue of balance, the middle path, shunning of excess and the tempering of acquisitive greed with restraint. ``One definitive lesson we have learnt is that economic growth is not a constantly ascending curve, nor could any one sector of the economy boast of itself being the sole locomotive,'' he said.

The downturn in the world economy was becoming increasingly manifest. Despite strong growth in certain economies of the Asia Pacific, there were distinct signs of a slowdown. It is estimated that unemployment in the region would grow at rates between three and 12.5 per cent a year.

The Vice-President said the Asia-Pacific business community had to find solutions to the periodic problems, which would only get worse as the global economy integrated further. He cautioned that the solutions should not be of the selfish type to take advantage of the global economic integration, but to insulate the region from the pitfalls.

Mr. Krishan Kant dwelt on the positive and also the negative aspects of liberalisation. He noted that there was a stir in the country's economic sphere, and the economy was being progressively liberalised in order to benefit from the new developments in trade, investment, and technology transfers.

The country was sufficiently aware of the imperative need to liberalise its trade and register further improvements in productivity, production quality, competitiveness and employment generation.

About the debit side, the Vice-President noted that it could be argued that globalisation had unleashed tremendous opportunities, benefitting many economically, yet it had left many in penury.

Economic integration and material gains had been registered on a large scale, but at the same time, sizeable sections of the global population were getting increasingly pauperized. Globalisation had to address the overriding concerns of the poor by making available to them the advantages of modern technology and the merits of living in liberal economic and social environments.

On economic cooperation with the Asia Pacific region, Mr. Krishan Kant said the country's ``Look East'' policy was in full bloom. India was a dialogue partner with the ASEAN, and an ASEAN Indian Working Group on Trade and Investment had been set up.

He also said that economic relations were now a thrust area of India's international diplomacy, especially its relations with the Asia Pacific countries.

The Asia Pacific economies had benefited immensely from the free and open trade regimes, which had helped the expansion of investments and technology transfers.

They accounted for 60 per cent of the global GDP and almost half of world trade. It was the world's fastest growing region, he added.

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