In the forex market, which is dominated by four banks, the “fixing” of exchange rate benchmarks exposes a systemic fraud that delivers bonuses to the financial services industry at the expense of investors in assets whose returns are linked to these benchmarks.
Growth strategies of developing countries that give a greater role to domestic demand when pursued by all can spur more South-South trade, which in turn can stimulate more export growth.
The fact that the rupee has fluctuated in tandem with capital inflows despite the persistent current account deficit only highlights the extent to which the economy has made itself dependent on foreign finance.
Only the Open Access Movement can address the adverse impact of Western domination of the world of knowlege.
Liberalisation was supposed to reduce financial fraud, but the reality today is that the number of cases and the sums involved have risen to such an extent that fraud is considered systemic.
An RBI survey suggests that foreign firms that entered India in the era of liberalisation with the promise to produce for the world market are now targeting the domestic market and are reluctant to partner with Indian firms. The country’s balance of payments difficulties can be traced partly to this.
A proposal to fix a higher, uniform price for all domestically produced natural gas is put on hold after objections from the Power and Fertilizer Ministries over the crippling effect it can have on the public sector user industries. Reliance would have gained the most from the proposal.