The spectacular debacle of the world financial order will resonate longer than we can imagine. Experts say India may not suffer beyond some deep cuts and bruises from the catastrophe precipitated by the greedy US financial institutes.
And that will be for the reason that India is not yet highly exposed to the global financial system.
In other words, since the foreign money – the FDI or the foreign direct investments – has restricted entry in India, the amount fleeing the land in the aftermath of the crisis has been less.
However, the FII or the foreign institutional investments that go to the bourses left in droves causing the severe stock market crash in India. Indeed the picture is the same at all the bourses across the globe.
The scenario is so dismal that no one is daring to make any forecast as to when the situation may turn good. No amount of learned guesswork seems to hold any water. It’s unprecedented to say the least. No living memory can recall if ever in the past such turmoil has happened from which no nation could insulate itself.
With that in perspective it’s no wonder that the left parties will attempt to reap electoral benefits by sowing doubts in the minds of the people about too much of liberalization. Here is an article in the Wall Street Journal.
In a way the coming general election in 2009 is unique because there have been so many vote-swinging issues that have come and gone in the past few months. Something like this has perhaps never happened in the past.
Thus, while the BJP feels the recent blasts are an issue for them, the Congress wants to crow about the success of the nuclear deal.
The left in their turn will try to bag the issue of economic turmoil, the latest to appear on the scene, to their kitty.
None of the three however is an issue the rural voter can be expected to be concerned with. These therefore are essentially urban issues and the poll watchers will keenly observe which of the three – or maybe some other…who knows – makes the maximum effect.