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Policy responses high on agenda

Non-planned expenditure, state and UT plan assistance in the budget must be diverted towards infrastructure development

he globallinanctal crisis is caus ing a ronsiderable slowdown in most developed countries. Gov ernments are trying to contain the crisis. but the worst is nut yet over. Stock markets arc down more than 40 0,.{, from their recent highs. Investment banks have .collapsed, rescue packages in volving more than a trillion dollars are be ing drawn up, and interest rates have been C1Jt around the world ill what looks like a coordinated response. India has been badly affel1ed by tbe financial contagion. trade and trade prices. reinitulllCeS. and aid in tbis recession period. This condition has led to weaker export revenues.lowerinvesunent and growth rates. loss of employment, hav ing social ellect of lower growth translating into higher poverty. more crime, weaker health systems and even more difficulties meeting th(~ MDGs. The currellt macro economic and social challenges posed by the global financial eri sis require appropriate policy responses for reviving industrialisation on one hand and responding to the impact of climate change

KC MALICK

Chairman,
BISWA

and pro-poor development on the other. The following measures can be taken to materialise this duo facto approach: Infrastructure development: The

other non-planned expenditure and state and UT plan assistance allocated in the budget. that is 17%, may be diverted to wards infra st ruet ure development through schemes like. construl1ion of roads. rail ways. houses, electric connections for creat ing a need for the products from the indus tries like steel u'ment and mining. River basin management: The min ing industries can extend their role in filling up the vacant places of mines by transport ing sands from the river beds, which will help control floods, earthquakes, generate job opportunities. redul'C migration. promote agro-based industries. increase forestry. fisheries development. eeo-con servation for control over climate change and sodo economic empowennent. Financial inclusion for pro-poor growth: Increasing the purcbasing power of the poor through financial inclusion at the grass roots level and promotion of COllage MSMBs in contributing ancillary products and services to the big induslfies. These efforts can playa contributory role in reviving the industries and achieving the MDGs ina su tainable manner.