17 Oct 2012

So we are all 'Hindu' now?

The "Hindu Rate of Growth" was coined by Indian economist, Raj Krishna. (Incidentally, Raj was from the virulent "Chicago School" of economic - just like the current Chief Economic Adviser to the Government of India, Raghuram Rajan.)

It was a disparaging reference to the low annual growth rate of India's economy - around 3.5% from the 1950s upto the time Manmohan Singh weaved his IMF-directed econo'magic' in 1991.

During his Raj Krishna Memorial Lecture in 1995, Montek Singh Ahluwalia - then, the Finance Secretary, Government of India - gleefully noted: "He (Raj Krishna) was one of the first to draw pointed attention to the inadequacy of our growth performance, when in the mid-seventies, he coined the much quoted phrase "the Hindu rate of growth" to describe India's disappointing trend growth, which at that time appeared stuck at 3.5 to 4% per year.

Today, the economies of almost all so-called "developed nations" of the world are growing, and only precariously so, at a less-than-blistering pace of 2 per cent and LESS. (But that does not discourage the Government of India in 2012 from trying hard to emulate their "successful" development model!)

Check out the latest Gross GDP Growth data from the IMF for France, Germany, Japan, the UK and the USA...

Could this all be just bitter irony - or could it be good ol' fashioned Karma? You decide.

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