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The number crunching game of economics is the only thing at boom in this recessionary atmosphere around the globe. Data is being analyzed rigorously in order to get some positive outcome but the more the data come out and more the analysis done, we get more hopeless results every time. Recently I was going through the data released by the RBI and CSO, few renowned economists in India have predicted over the growth prospects of India in 2008-2009. Things are definitely not as bright as it had been in recent past.

Real growth of GDP(market prices) would fall to 7.1% in 2008-09 from 9.02% and GDP growth at factor cost too would remain at around 7.1% in 2008-09.

Growth of agriculture and allied activities would be at 3.3% this fiscal year when compared to last year’s 4.55% growth. Industry sector which was experiencing an average growth of above 10% in last 4 years would decline to dismal 5.7% growth. IIP figures of August showed manufacturing output growth to be at 1.15% which is lowest monthly figure reported since October 1998. Outputs of capital goods have slumped to 2.3% from 20.4% immediately previous month. Tertiary sector or services will grow at 9.0% this year after enjoying a growth of above 10% every year in past three years. Per capita real GDP growth was 7.49% last year and may fall to 5.60% this time round.

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Indian corporate world has been shaken miserably with the unfolding of the Satyam misgovernance case.This has set inquires by government over the bank accounts of other major business houses in India. Let me tell you what Raju did recently is being done all around the corporate world but only thing is Satyam was involved in multiple frauds and due to this investors lost all his confidence on Satyam.

If these inquiries are carried on properly then be sure of big big defaulters ahead. And the bigger than the biggest is also among one of them,Mr. Mukesh Ambani. Recently he acquired more shares of RIL and his share in RIL rose to 49.03%. Now in last two years he has bought shares of his own company worth $12 Billion(Rs.570 billion).

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Media is supposed to be the mirror of the society. It builds the consensus of a nation over which that nation grows and develops in its culture, dynamism and intellect. But in recent years Indian Television media has put forward such a agnostic picture of themselves that I fail to understand the reason for those channels being aired and concept of media seems to be in doldrums. Democratic system of Indian Republic gave birth to a free and independent media but media has very recently downgraded itself to a new version and its not media, its Entertania(Entertainment+Media).INDIA’S FREE AND INDEPENDENT ENTERTANIA.

Recently I was in Noida discussing about Indian Media with a businessman named Sajeev Mathur. He told me about a incident which happened recently in Noida. He said that in a house in nearby sector there lived a family of three. Husband and Wife ,aging around 40, with their niece.There was some quarrel between this girl and her local guardian who were the people with whom she was living in Noida. Girl went to police station and filed a complaint against her local guardian charging the man, who was living there, of molestation and attempt to rape.This news some how reached to media people. They made their own judgment and showed the story on TV and declared those local guardians as convicts while police was yet to take action.

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Fall of Russian communism may have sent a good signal to the world and the feel of triumph for the western countries because of their belief that this would bring much needed stability to the world, but the humiliation within the former USSR is becoming evident as it tries to gain back its lost supremacy. Best example to resurgence of Russian might in post Cold War era was war with Georgia. Mr. Vladimir Putin is said to be a man from that totalitarian system which ended with lowering flag above Kremlin. Mikhail Gorbachev, the last president of Soviet Union, said "The totalitarian system has been eliminated.. free election ,free press, freedom of worship, representative legislatures and the multi party system have all become reality." US were the first to recognize and welcome the new independent and democratic Russia.

10 Years after cold war era ended Russia started to grow its economy the high growth rate and sought to regain its lost glory. But in its attempt to strengthen itself it has constantly increased its pre-cold war era activities as it gain economic power. Russia has tried to show that it has always been at par with US even after its great demise in 1991.Russia’s war in Georgia and its unilateral recognition of South Ossetia and Abghazia copied the west’s recognition of Kosovo in the Balkans, Mr. Putin said unilateral recognition of Kosovo was "immoral and illegitimate". Russia very recently developed and tried to strike a defense deal with India providing Missile Defense System when US was trying to do that.

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This is not like my typical blog on economics rather its something related to it through my personal experience. I am in a train and 10 minutes ago was really getting bored so I decided to write a post because the constant murmuring of few people did not allow me to sleep even. I then decided to hear those murmur more seriously as the topic they discussing interested me a bit. They were discussing over the topic : The role of youth in education today. This train goes from Delhi to Mussfarnagar. Delhi is off course well known but Mussafarnagar is a small town in Bihar, I have never visited it though. Most of the people are from Bihar except few like me and my friend, a couple sitting above talking continuously as the time is really running short for them and a pretty girl sitting in front me and reading 5 point someone. These people will probably drop at the Lucknow Station. Same sense of looking the way people are talking and doing has made me to derive this logical conclusion and this demarcation is so big in India that one can easily reach such conclusions. Again back to the group discussion taking place in my fellow compartment and which has gained even more energy and participation of the people around. I said i have a bit of interest on such topic so I had my own view point over this.

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I might be questioning very fundamental on which current global exchange rate trading fraternity exists but the same economic crisis has made me to think that way. This New Year was not like the past ones. Credit crunched citizens did not spend and enjoy as they were doing in the past. The reason is very obvious, known and talked about in every corner of the world today. Many conclusions are being drafted every second and most of them pointing towards one solution and that being more regulations. Now again a question arises: How much regulation? Applying high level of regulation would question entire concept of free market and having low degree of regulation would lead to disasters like current economic crisis. So, regulation may only be the part of the solution, not the complete solution. Then what can be the other solution??

Euro has turned 10 this New Year eve.Though not much hype was created on this context but Euro has traveled a long way since its inception in 1999 when 11 nations of the Europe agreed to integrate their currency and form a common one.Current economic crisis has shown something good coming out of it. Countries using Euro as currency has  somewhat saved themselves from this meltdown and the reason is simple,they have a unified and integrated economic system between them so they are less exposed to the volatility of exchange. "The euro is sheltering businesses from the exchange rate volatility, which has battered them in previous downturns," Barroso said on Monday. "To put it simply, the euro works." Members in Euro community has increased  to 16 with the addition of its newest member Slovakia.

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It was called a prosperity regime and was thought to be the best one in the world: Western Capitalism.

Whichever nation adopted it, showed unrelentingly high economic growth trajectory. Last century not only saw world wars but also the war between the forms of governance. Industrial revolution made us to think of a good system which would lead to a sustained growth in future. Among the competitors were Socialism or Capitalism,Democracy or Communism. Post world war II saw upcoming of Socialists with Soviet Union leading the Socialist flag. But with the demise of Soviet Union socialist era ended all of a sudden. From that time onwards it was capitalism pronounced by the western world which was thought to be the most compatible system with economic growth and undoubtedly yes, Capitalism made the world economies to grow faster and faster. More and more goods and services were produced into this era and were serviced to the mankind.Capitalism was growing and spreading into the different corners of the world and capitalist nations became richer and more powerful day by day.

While all these developments were making the nations to be called as developed world Indian leaders were living into a hypothetically ideal world made up of Marxist ideologies. They failed to realize that they have lost industrial revolution by 50 years which meant being backward for long period ahead. So, instead of opting for a growth oriented capitalist structure they went for a socialistic approach. India got freedom after 200 years of colonial rule,may be that the fear of past did not allow them to go for a open path and rather opt act in a protectionist way. After losing everything we switched finally from Socialist to Capitalist economy. Results soon started pouring in as Capitalism started doing the same as it was doing to other nations for last one century. Growth was tremendous and soon it was confirm that CAPITALISM was the best for humanity to grow.

India was growing at furious pace.It seemed that after a wait of so many years we finally have got the right path and such a pace of growth will make India a superpower very soon. But as and when things started looking bright soon came a economic disaster which took away with it all the confidence and faith people had in Capitalism. Collapse of market worldwide,closing of big banks,interest rates lowest than ever,deflation due to plummeting demand,many economies getting into recession.Whole world is gripped into the problems which we owe it to capitalism. When the big banks faulted it was the government which came to rescue and took control of these big organizations. It seems world again is looking most socialist today. Private control is automatically going into the hands of government. Bankruptcy of Lehman Brother has same significance for capitalism as fall of Soviet Union had for Socialism in 1989. Both up to some extend signifies end of an era.Suddenly when capitalism was looking best for India now socialism is being said to be a better option. Does that mean that in time to come we will again have to follow the world and will again have to become socialist???

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