Monday, June 23, 2003
Re: Southern Econ Union

A more informative article is here: http://www.financialexpress.com/fe_full_story.php?content_id=34746

I agree that cooperation and not unreasonable competition is the answer to faster and more efficient econ development. Read the above article for many points.

To give a recent example of how inter-state political rivalry (unreasonable competition and political pettiness) can stymie much-needed economic reforms, take the VAT issue. One of the reasons its implementation is being delayed is that different states are vacilating, or demanding inordinate compensation, etc.

Putting in place a political and bureaucratic instution for cooperation and policy consultation will create a more conducive atmosphere for mutually beneficial co-operation, with regard to economic policy, infrastructure develpment, etc. Moreover, the politicians in constituent states will be accountable to their counterparts in other states too now, and so they will have to moderate their obstructionist demagoguery.

Not sure of Maharashtra and Gujarat will form a western econ union. I don't see why their econ union has to be "Western". I'm not sure why at least Maharashtra is not being courted in this Southern initiative. That does raise a question or two.

What was that about prejudice against "southerners"?? Absolute BS.

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