Foresightedness Helps

Topics: Manmohan Singh, Bretton Woods system, Monetary policy Pages: 1 (394 words) Published: February 22, 2013
Foresight and quick decisiveness are very important qualities required in times of distress and uncertainty. Our nation, since its birth in 1947 faced various challenges, most of which have been overcome, while some still trouble us till date. By the end of the 1980s, a cloud of fiscal deficit was looming over India, casting its shadow over the nation's economy. Had it not been for some quick decisions and a strong foresight, the nation would have fallen into a ravine and perhaps would have never been able to come out of it. A very good example of foresightedness is when the government of India led by Prime Minister Chandra Shekhar pulled India back from the edge of this economic crisis. In 1991, India had almost depleted its foreign exchange reserves and had barely enough to last for about three weeks of essential imports. This is when, the government foresaw the trouble that loomed on India's future and averted it. They took a radical decision to loan money from the International Monetary Fund by pledging 67 tons of gold from the country's reserves. There was a huge public outcry and national sentiments were outraged but still the government went ahead with their decision and airlifted the gold in a chartered plane, sending it to England and thus jolting the country out of an economic slumber. However the Chandra Shekhar government collapsed soon after. Congress came into power with Dr. Manmohan Singh as its Finance Minister. He had to kickstart the economic reform process as per the conditions laid down by IMF while granting the loan. The pledging of gold in time and the economic reforms that followed helped India avoid this economic crisis. There are many more concerns that can become bigger problems if they are not foreseen and addressed today. One of these concerns is population growth. China has foreseen this problem and is taking strict measures which are getting a mixed response. Some are strongly criticising them while others are appreciating them. But...
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