-Exactly two decades ago, Dr. Manmohan Singh, then the finance minister, launched India on the course of liberalisation, privatisation and globalisation (LPG). On the event’s anniversary, all the cronyism, criminality and plunder of public wealth associated with neoliberalism is on full display.
-in present context of india,Neoliberalism’s is clearly visible in its link with scandals and frauds known as crony capitalism.they are *-Harshad Mehta-engineered stockmarket and Enron scams of the 1990s *-three great telecom scams of the 2000s
*-2G telecom scam
*-POSCO in kujanga of jagatsinghpur of orissa
*-Krishna-Godavari gas-pricing scandals
*-public sector selloffs (VSNL, Centaur Hotel, Modern Bakeries, and Balco) *-ISRO-Antrix agreement foe satellite telephone system
-Some neoliberalism thoery reminds us of Its LPG policies,which was drafted by the US government with the World Bank and the IMF, headquartered in Washington.
-as we know Neoliberalism and financial globalisation feed on each other. Since the liberalisation of trade and of the rules governing the cross-border,flows of capital result in a widening of *-the trade
*-current account in the balance of payments
*-access to foreign capital
*-finance the deficit
-On the other hand, foreign capital favours environments where markets and private capital are allowed free rein.
-But the Consensus is very much alive.as we can know it from *-debt crisis in Greece and Ireland
*-crisis in the eurozone adopting of policies such as bail-outs and austerity of neoliberal paradigm *-1997 economic crisis in East Asia
*-Great global Recession
-neoliberal theory and practice are taken as referring to:
(i)the use of the rhetoric of market fundamentalism, in which the market or ostensibly “free economic exchange” is presented as the most efficient mechanism to work the economic system, to pave the way for the increasingly unfettered functioning of private capital, both domestic and foreign; (ii)the use of the notion of a minimalist state, to be realised by dismantling its developmentalist version, to legitimise the shift of various terms of trade and mechanisms of distribution in favour of the owners of capital and their functionaries and conceal the conversion of segments of the state apparatus into sites for primitive accumulation; and (iii)the pursuit of a regime of accumulation where, the home market and deficit-financed state expenditure are replaced by exports and debt-financed private expenditure as the principal stimuli to growth. (*imf annual report*)
*-lets make the balance-sheet of neoliberalism in India. It reminds us that it produced high growth — in keeping with GDP, as well as Gross Domestic Product growth,but but but regardless of social-economic, political and environmental costs.Though “Emerging power” like India’s GDP has risen from the 12th position globally to 10th in absolute terms, and from the 9th to the 4th position in purchasing-power parity — although in per capita terms India still belongs to the bottom quarter of all nations.
-Yet, the connection between economic policy and GDP growth isn't straightforward. India's recent growth isn't entirely or largely attributable to the unleashing of the 'animal spirits' of entrepreneurs, which were supposedly locked up earlier under excessive regulation.
*-‘Neoliberalism’ is often used interchangeably with ‘globalisation’.The analysis here compares neoliberalism with its historical predecessors. Neoliberalism is not just economics: it is a social and moral philosophy, in some aspects qualitatively different from liberalism.
*-In 1991,when India was attacked with serious CRISIS of Balance of Payments in international trade...