Globalization-enabled corruption

ARVIND SUBRAMANIAN of the Peterson Institute and DEVESH KAPUR of the University of Pennyslvania state that the skyrocketing corruption in India and the consequent money-laundering indicated the usage of discreet foreign jurisdictions as destinations for black money and India’s financial integration had facilitated these transfers.

In a Business Standard op-ed, "India: Fighting Imported Corruption", they also state that macroeconomic analysis showed that the laundered money came back to India as the much sought-after 'foreign' investment with additional implicit subsidies such as secrecy and avoided taxes, with the monies round-tripping back through the banking channel from countries such as Mauritius and Cyprus with lower financial transparency and low tax rates.

They call upon New Delhi to take the lead internationally in pressing for data-sharing between governments and global financial institutions on overseas assets of citizens, trade flows and remittances, and recommend an abolition of double-taxation avoidance agreements with states such as Mauritius who were not members of the Financial Agenda Tax Force.

Capital flood

ARVIND SUBRAMANIAN of the Peterson Institute argues against opening up the floodgates to the capital sloshing across the world in an environment of mercantilistic policies across the world with countries across the world doing their best to repel capital. In an op-ed in Business Standard, "Reserve Bank of India's Fateful, Fatal Action", he argues that improving governance and regulatory reform rather than access to foreign capital was the need and that the RBI may be trading away a bird in hand (the tradable sector) for the bird in the bush (infrastructure).

Bandung 55 comes to age!!

SHYAM SARAN, fellow at the Center for Policy Research and former Indian Foreign Secretary, calls upon India to make relations with Indonesia, a G-20 power and neighbor, the centrepiece of its Look East policy pointing to commonalities such as plural, diverse, secular democratic polity, cultural affinities buffeted by religious extremism. In an article in Business Standard, "Rising Indonesia", he states that it was incumbent upon India to upgrade its economic and security partnership with Indonesia beyond the current joint maritime patrols to grow naval capabilities and shape an open, inclusive and loosely structured security architecture in Asia.
 

Test of Effectiveness for the G-20

ARVIND SUBRAMANIAN, fellow at the Peterson Institute for International Economics states that while the monopoly on power and influence wielded by the west was being broken for real with the G20, what was most significant was the impact of the de-cartelization of power and influence on the role of ideas.  In an op-ed in The Business Standard, "The G-20, Power, and Ideas", he states that the fate of two bad ideas (i) western leadership of the IMF and the World Bank and (ii) indispensability of the Doha round to the health of the world economy, could serve as a testing ground for the proposition that the G-20 might be better for the marketplace of ideas than the G-7.

Lumbering out of policy inertia on India's Financial sector

ARVIND SUBRAMANIAN, fellow at the Peterson Institute for International Economics recommends greater interaction between the government and the Reserve Bank of India on strategic and long-term issues such as the liberalization of the financial sector and that of the capital account. In an op-ed in The Business Standard, "What Globalization Strategy for India?", he states that a combination of factors such as greater availability of foreign capital seeking higher returns in India and a domestic political economy that favored foreign capital would ensure that India moved to a model based on reliance to foreign capital by default and this called for a jolt out of policy inertia and a greater co-ordination between the key stakeholders on strategic issues.