World Bank places Pakistan 48 positions ahead of India for Ease of Doing Business

[Cheetah786]

Manmohan Singh, India's Economy and Free Trade
Posted by: Mehul Srivastava on November 09, 2009

After a long hibernation from the lecture circuit, India’s soft-spoken and carefully scripted Prime Minister, Manmohan Singh, stepped onto a dais and promised more of the same.

Well, not exactly, but pretty much.

At the India Economic Summit Nov. 8, one of the many speak-a-thons that mushroom in New Delhi once the weather improves, Singh came out for a little bit of applause, a little bit of politics and little bit of wishful thinking.

The state of the Indian economy? “The worst is behind us.”

The future of the Indian economy? “With a normal monsoon next year, we hope to achieve a growth rate of over 7 percent…Our medium term objective continues to achieve a growth rate of 9 per cent per annum.”

Eradication of poverty, hunger and disease? ” I am happy to say that we have delivered substantially on that promise. But the task is by no means (sic) unfinished.” (I think he meant finished )

But there is news in between the platitudes. For instance, India’s fiscal stimulus package, which measured anywhere between $50 and $80 billion, depending on how you count it, will be rolled back starting early next year. By most measures though, it was money well spent - government spending kept India’s economy afloat when the private sector all but retreated last year. The effort almost broke the bank, though, and as the deficit climbed to 12% of India’s $1.2. trillion GDP, it was clear there was no more where that came from.

Speaking of billions of dollars, Singh had just had a tete-a-tete with the Chairman of Wal-Mart’s board, S. Robson Walton, and India’s Commerce Minister, Anand Sharma, brought up Walton’s enthusiasm for India as he totaled up foreign investment (some $35 billion for the twelve months ending March 2010, he estimated). Wal-Mart runs one store in India in a tie-up with Bharti, where it is allowed to sell only to shop-owners, not to customers. But when I visited that store earlier this year, in Amritsar in North India, not far from the Pakistan border, the lines ran out the door, the shoppers ooh-ed and aaah-ed at the prices, and the cash registers, literally, jingled. And even though organized retail is a puny little part of India’s $450 billion retail industry, Wal-Mart has been lobbying India’s government to open up foreign investment rules so that it can sell directly to customers.

Sharma is the shyer and less boisterous heir to Kamal Nath, who was India’s last Commerce Minister, and is now relegated to drumming up foreign and state investment to build roads. It’s an interesting study in contrasts - Nath made his name by holding up the last set of the Doha round of talks for a WTO-led global free trade pact, questioning the true intent of western investors. Now he flies around the world asking the same investors, if they will, please, help build a road in rural India.

Sharma, meanwhile, is the new face of Indian trade politics - reticent to speak his mind, even when egged on by reporters - and his appearance this week on the coat-tails of the Prime Minister underscores how closely Singh is monitoring the informal talks that continue non-stop. India’s already signed a free trade agreement with South Korea, and with it’s neighbors in the ASEAN region. By 2010, it might sign one with the European Union. That’s a lot of ink in just a few months on the job.

But Singh speaks so rarely in public (the three public appearances in the last week notwithstanding) that any sense of direction from India’s perpetually smiling economist-in-chief is helpful guidance for the over-eager markets, at least. The benchmark 30-stock sensex was up 300 points for the day, almost 2%. Bonds fell, and given the headlines in Monday’s newspapers, Singh’s stock rose.

Manmohan Singh, India's Economy and Free Trade - BusinessWeek

 

[Cheetah786]

qsaark;714862]I do not think so

.

Luckily or otherwise, I am in the field of R&D and myself have three independent US patents. How R&D works, what are the IPR issues, how investment is recovered withing first 20 years etc. is all I am aware of in and out. Based on my own experience, and from what I have gained from meeting the big sharks and the small sharks (investors), I am repeating again, the prices in US are high because the manufacturers do not want to lower their profit and in US it is possible because of the ******* health care and extremely cruel insurance businesses, both patronized by the politicians. Now, you are free to disagree.

Its called free market thats why most companies invest heavily in USA as it gives them maximum Bang for there buck.

Good for you. Mureed ho jao Mastan saheb key. Aisi cheezein unhein bohat pasand hein

you can disagree with him all you like but taking cheap shots is just plain low.

 

[MastanKhan]

Hi,

Incidently what this post wanted to highlight has been lost in argumentaive presumption.

The post was simple---there is ease of doing business in pakistan---that is it period.

Now there are other issues that we have, like corruption and impurities and likewise. that has nothing to do with ease of doing business. Tat is more of a moral dillema---that is more of a moral issue----just to put these two together and lambast the poster or whomsoever shows a complete short sightedness and personal prejudices of posters.

People are asking where is the investment coming into pakistan then---what happened----.

Here is the problem---when the good times started coming to pakistan after 9/11, it brought other issues to pak as well---war in afg--taliban---al qaeda---Musharraf govt---Benazir---nawaz sharif---earthquake---world economic down turn---riots in the country---judge Chaudhry---etc etc etc.

Pakistan and pakistanis literally were clueless to what a great oppurtunity they had---the heavens had opened up---the coffers of the world were open---only the paks and pak politicians had to take steps and measures to take advantage of the situation. But tragically their vanity, personal prejudices, personal dislikes, lack of leadership qualities let the nation and the people down.

If Shahbaz sharif had taken Musharraf's offer for the premiership, pakistan would have been better off---Musharraf out of the picture pretty soon---but no---personal prejudice and love and favour of brother overcame service to the nation.

Next came amin Fahim---he again sold the nations interest for the party---again Musharraf would have been left after a while and Benazir come into power again.

Next came Imran Khan---the man is gutless when it counted the most.

Musharraf could not control the taliban---he coudnot stop this mullah in swat from operating his FM station.

Then this judge takes it upon himself to look into why the signals in karachi traffic are not working properly---the supreme court chief justice---the things are so bad in judiciary that for every ordinary action that needs to be taken by a lowly ranked officer, is being taken by the supreme court chief justice.

Nawaz didnot want to take out Musharraf just like that, he wanted to humiliate him---same with Benazir---Imran Khan didnot know what he wanted---the judge got involved in the petty disputes of the state---the climate of un-rest in the country---strikes and load shedding shut down the businesses---investors looked elsewhere to make profit.

That is the story in a nutshell---the oppurtunity was there to be had---we let it get away from us out of sheer ignorance.

 

[qsaark]

.Its called free market thats why most companies invest heavily in USA as it gives them maximum Bang for there buck.

Indeed, and when the burst of this free market bursts, people loose their jobs, their house, their investments, and their livelihoods. Ask this from an ordinary American and he'll tell you what he thinks about this so-called free market.

you can disagree with him all you like but taking cheap shots is just plain low.

Dude you reap what you sow; You brought Mastan in it, you got the answer.

 

[FlickerSingh]

pakistan's free market economy is not entirely 2 its benefit. i agree that it is easier 2 repatriate profits and establish legal business entities in pakistan compared 2 india. but compare the benefits of the host nation in doing business with foreign investors vis a vis pakistan and india ? india ensures that certain economic sectors such as banking is not prone 2 foreign manipulation. this conservative approach protects our banking sector and our working class banking consumers. india of course must open up certain other sectors such as company offices 2 attract more foreign sustainable investments. but the policy of allowing foreigners 2 make your money and run off with it is something that does not protect the host nation. or else we may as well go back 2 colonialism. if the honey does not trickle all the way 2 the worker bees then pakistan may as well not allow itself 2 be a hive 2 foreigners

 

[qsaark]

Q,

You are a grown up man---so talk like one---stop this silly insan musa and firoun stuff---this is so passe---this is so ghetto---this is so immature and childish. Talk like an educated man that you are.

YOU LET ANGER CLOUD YOUR REACTION

This is but a direct response to how you address to the members. Stop pretending god of some kind, things will come back to normal.

 

[Valiant_Soul]

I think the crux of the matter here is that Pakistanis need not compare with anyone at all. Pakistan should focus on what is important for its people, and do the needful. The debate went flying because the first post in the thread unnecessarily compared Pakistan with India and qsaark was correct to point out that it is not the healthy way to look upon things, although his reaction was emotional, and justifiably so.

 

[Adios Amigo]

It really cuts me deep, when I see senior and Most Respected Members Like Mastan Sahab and Qassark, fighting in every second thread. I never wanted to Make a comment on this issue, but guys Forced me to do so.


Please you guys are very senior and respected hare, I also believe the Most Civilized, then why this mud slinging at each other??? Junior members and most youngsters look up to you guys. They take you as a Role Model > And when this Battle of Bulls starts it send a very negative message. It not only destroys your own Image but Also of All Fellow Pakistanis>>> If the most respected, educated, experienced and well Qualified are this tolerant then what about the rest of lot??? the ordinary souls like us??? You very well know what i mean to say. So for the last time please stop it.


If you cant help it, then please avoid it, don't come in each others way.





Regards.

 

[Luftwaffe]

World Bank places Pakistan 48 positions ahead of India for Ease of Doing Business...

We forgot one thing we're pushing our economy on borrowed money loans our top industries are dead and dieing...oil, coal, shipping are almost nil by world's standards, IT industry is relatively small..
frankly not impressed we are still in debt 60 billion dollars atleast and we'll continue to beg world bank and imf and will have fake smiles on our faces wow wee we're doing great..

 

[dvk1982]

I understand what you're trying to say qsaark, but you're giving us way too much credit. Not all foreign investments made in our country benefit us. In fact, most end up hurting us. See Enron's investment in Maharashtra and the Bhopal Gas tragedy as examples.

THis is the socialist mindset at its best... why do u JUST blame those capitalist investments but not our govt. ? Those industrial mis-planning and accidents are a shame but how come our govt has no protection against environment pollution and have concrete industrial laws supporting public and other parties ? even after close 2 20 yrs, people who suffered bhopal gas tragedy cudn't be compensated...

And it's silly to think, every investment helps common man... we have to take a holistic view. When we lack funds, The best way to grow is encourage foreign investments but try to provide checks and balances. In short, FDIs are gud for us so far and they have a major role to spearhead our economy going forward.

 

[dvk1982]

Hi,


That is the story in a nutshell---the oppurtunity was there to be had---we let it get away from us out of sheer ignorance.

In a nutshell, u r correct, the reasons may be many or different from ur views but the conclusion is sound. But nothing is lost. Time and life are too long to cry on lost opportunities. At the hindsight, everything looks so simple but even at this moment as we speak there will be so many opportunties for pakistan and other nations to correct themselves and develop.

 

[TechLahore]

Explaining long and detailed concepts such as the flow of capital etc is too much to write in one post but let me

I asked you a simple question, and given what you wrote below, it appears you are not in disagreement:

loose out. You argument that people will not invest if the laws are tight is partially correct but its also depends on many variables. If the

With the qualification that I did not refer to "tight" laws. I referred specifically to the ability for an investor to repatriate 100% of his capital, no questions asked. This gives people confidence that they won't get "stuck" in a situation. Pakistan has instituted such laws and allows capital to move freely in both directions. I think that's a good thing and can only help the cause...

 

[Cheetah786]

qsaark;714882]Indeed, and when the burst of this free market bursts, people loose their jobs, their house, their investments, and their livelihoods. Ask this from an ordinary American and he'll tell you what he thinks about this so-called free market.

Wow dude you are all over the place make up your mind what you wanna discuss.

Dude you reap what you sow; You brought Mastan in it, you got the answer.

I Respect Mastan khan as he speaks his mind so if i am quoting him its out of respect for the respected member not to insult him if u wanna take shots at me More power to you.

 

[MastanKhan]

In a nutshell, u r correct, the reasons may be many or different from ur views but the conclusion is sound. But nothing is lost. Time and life are too long to cry on lost opportunities. At the hindsight, everything looks so simple but even at this moment as we speak there will be so many opportunties for pakistan and other nations to correct themselves and develop.

Hi,

I thankyou for your contribution. The problem over here is that the pakistanis are clueless to what happened to them. They cannot fathom out why we are back in the muck for the upteenth time. They are totally clueless---neither the leadership no what happened, nor does the educated class understand the causes---and you know why---because they are totally clueless as to what needs to be done.

Oppurtunites like this come once in a lifetime---that is when you grab the horse by the mane and sit firmly on its back and let it take you to the promised land. We had waited for that moment for the last 20 plus years---and we fluffed the chance---it was just like RICKY PONTING hooking the first ball to the leg side and the young fielder juggling the ball to the ground.

Pak had the oppurtunity of being extra ordinary but they chose to otherwise.

The world economioc situation was right in front of one and all in 2007---2008. All the politicians and leaders saw and knew what kind of financial crisis was in the making. That was the time to forget and forgive all personal differences and grudges and stand together to come out of this crisis in a stronger position.

It was the duty of the politicians to take the high road. They should have told the pakistani public what they were doing and why they were doing that---the public would have been more appreciative of what was happening---they should have kept the pressure on Musharraf but restrained themselves from these strikes and shutdowns.

 

[dvk1982]

Hi,

I thankyou for your contribution. The problem over here is that the pakistanis are clueless to what happened to them. They cannot fathom out why we are back in the muck for the upteenth time. They are totally clueless---neither the leadership no what happened, nor does the educated class understand the causes---and you know why---because they are totally clueless as to what needs to be done.

Oppurtunites like this come once in a lifetime---that is when you grab the horse by the mane and sit firmly on its back and let it take you to the promised land. We had waited for that moment for the last 20 plus years---and we fluffed the chance---it was just like RICKY PONTING hooking the first ball to the leg side and the young fielder juggling the ball to the ground.

Pak had the oppurtunity of being extra ordinary but they chose to otherwise.

The world economioc situation was right in front of one and all in 2007---2008. All the politicians and leaders saw and knew what kind of financial crisis was in the making. That was the time to forget and forgive all personal differences and grudges and stand together to come out of this crisis in a stronger position.

It was the duty of the politicians to take the high road. They should have told the pakistani public what they were doing and why they were doing that---the public would have been more appreciative of what was happening---they should have kept the pressure on Musharraf but restrained themselves from these strikes and shutdowns.

Well all i can say is - VICTOR HUGO -“You can resist an invading army; you cannot resist an idea whose time has come.”

Not to say india is doing wonders, but India was equally hopeless till 1980s... but when india came close to bankruptcy, people realized or better part of top leaders realized their governance was wrong. I know, we can't hope for sth to work out for pak but there is a need for educated leaders who understand economy and its importance to make a start....