DomYngBlk -> RE: Would you agree to tax incentives to bring jobs back to the US? (7/30/2010 11:20:11 AM)
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ORIGINAL: toxic66 quote:
Couldn't resist. But your facts are not facts. India's economy has not open or closed one iota. As has not China's. What has changed is the West's views of those economies and the inclusion of China as a full trading partner. WE changed. They did not. Go ask google about how much China has "opened". Again, the change was here and not there once Boards and CEO's figured the risk was worth it in investing in China and India to have a grab at even larger profits... I couldn't resist either. Just because you say something doesn't make it so. I worked for a company that employed lots of Indian subcontractors. They brought them over here for a year at a time. I worked closely with some of them and talked to them quite a bit. They asked me a lot of questions about America, and I asked them many questions about India. They talked a lot about the changes taking place there. But, what do they know they just live there. So, I followed your advice and did a search and guess what I found. Your assertion was flat wrong. Here is from Wikipedia (I think a pretty non-partisan source): quote:
India followed a socialist-inspired approach for most of its independent history, with strict government control over private sector participation, foreign trade, and foreign direct investment. However, since the early 1990s, India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment. The privatisation of publicly owned industries and the opening up of certain sectors to private and foreign interests has proceeded slowly amid political debate. <snip> In the late 80s, the government led by Rajiv Gandhi eased restrictions on capacity expansion for incumbents, removed price controls and reduced corporate taxes. While this increased the rate of growth, it also led to high fiscal deficits and a worsening current account. The collapse of the Soviet Union, which was India's major trading partner, and the first Gulf War, which caused a spike in oil prices, caused a major balance-of-payments crisis for India, which found itself facing the prospect of defaulting on its loans. In response, Prime Minister Narasimha Rao along with his finance minister Manmohan Singh initiated the economic liberalisation of 1991. The reforms did away with the Licence Raj (investment, industrial and import licensing) and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors. Since then, the overall direction of liberalisation has remained the same, irrespective of the ruling party, although no party has yet tried to take on powerful lobbies such as the trade unions and farmers, or contentious issues such as reforming labour laws and reducing agricultural subsidies. Link to full article: Wikipedia Wow, now are you sure they have not changed one iota? So you are telling me there was no direct western investment in India until the 90s or that there were no internal growth businesses till then? Is that what you are saying? There has always been the ability for the west to invest into India. British Companies have been there for many many years. The change came from US. Industrialists decided that it was ok to go against the interests of your own country and countrymen and move whole companies outside of the country. Economic treason is another name for it. But, I will bite. If it happened in the late 80's, why did it take to the new millenia for the full effects to be seen?
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