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Friday, July 04, 2008

Focus-1: "Soaring Prices and Stifling Inflation"

I had been to a marriage about ten days back. After the ‘muhurat’, there was a time gap for the lunch. Some of us gathered in a corner and were having a casual chat to while away the time. Somebody brought the topic two-digit inflation after more than 13 years. The OPEC was to blame as they raised the crude oil prize, causing spiraling effect all over, remarked one friend. Before we knew, more people have joined us and everybody seemed to have strong views on the subject. Somebody started abusing the ‘three economic wizards of India’ and ended with a prayer to God to save India from them. Everybody was getting excited and a torrent of violent, vituperative language was heaped on the ‘wizards’. This gathering consisted of men and women of different ages and almost all of them had nothing good to say about the present government at the Center. They were all giving vent to their fury and this seemed quite natural as the price of everything had gone up and everybody was feeling the pinch; further, they feared what the future might hold in store for them. If this gathering represented the majority of the people of this country and if the people could sustain their fury till the elections, I felt that the Congress party was in for severe drubbing.

Then somebody suggested that instead of attacking persons, they could attack problems and come up with solutions. Immediately another remarked that who was going to care for our suggestions. The former persisted that at least it would be an exercise for the brain. After a minute’s silence, everybody started coming up with suggestions. As a silent observer, recorder and compiler, I here try to post at least some of the ideas, for whatever they are worth:

1. Scrap all direct and indirect, central and state taxes on petroleum, diesel and other petro-products.
2. Ration petrol and diesel.
3. Petrol bunks to be closed every 4th day.
4. Petrol bunks to work from 6 am to 9 pm only.
5. Dual pricing of petrol and diesel – cheaper rate for public transport and two-wheelers and higher rate for gas-guzzlers and costly cars.
6. Production of battery-operated cars and two-wheelers to be encourage by tax exemption and subsidy, if need be. (Pollution problem is also gets reduced).
7. More public transport.
8. Ban future trading of essential commodities.
9. Ban online trading of essential commodities.
10. Speculators to be stopped from entering the essential commodities market.
11. Ban MNCs from entering the essential commodities market.
12. Permanently ban export of food grains and other essential commodities.
13. Encourage farmers to produce more by offering them fair levy price and making good storage facilities all over the country.
14. Finance Ministry, Commerce Ministry and Planning Commission to be headed by people-friendly politicians and send home the so-called ‘economic wizards’ who always take sides with MNCs, big business and capitalist countries.
15. Appeal to people to avoid using vehicles for short distances.
16. Promote and popularize cycle.
17. Special lanes for cycles on the road in cities.

You may also have idea. If so, I shall be thankful if you could kindly send it to me. If it is good, I would like to post in my blog. Even otherwise, you can offer your comments, which are most welcome.

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