Please tell us What "Maco-Economics'' Is?
Really!!!!!!!!!!!!!!!!!!!!!!!
Facing a grave economic crisis, the newly elected Indian Government has begun urgent talks with the International Monetary Fund seeking emergency aid of several billion dollars. Yet the conditions for such assistance are stirring anxiety in this nation, which historically prides itself on self-reliance.
At issue is not only the economy but also India's sensitivity to Western involvement. What makes the nation's plight especially delicate is the realization that, without bowing to Western conditions for economic change, India could slide into collapse.
The immediate issue is India's struggle to avoid defaulting on loans. It has never defaulted since independence 44 years ago. India's foreign debt has climbed to about $72 billion, making it the world's third largest debtor after Brazil and Mexico. In 1980, its foreign debt was $20.5 billion. At the moment, Western officials say, India has only $1.1 billion in its hard-currency reserves, enough for two weeks of imports. Policy Changes Required
Government officials and Western diplomats say that, to meet the emergency, India will seek anywhere from $5 billion to $7 billion from the International Monetary Fund. The I.M.F. pulls together packages of loans disbursed under conditions that often include altering policies viewed by the fund as mistaken or counterproductive.
The loan plan has been front-page news for several days, and the political opposition has responded with confusion. Essentially, parties on the right and left have expressed anxiety about India's perilous economic condition, but ask if there are other options besides going to an international agency that would attach firm strings to a huge loan. The Government says there are not.
https://www.nytimes.com/1991/06/29/...cing-once-self-reliant-india-to-seek-aid.html