The first article announces NYSE Euronext's decision to buy a 5% stake in the Multi Commodity Exchange (MCX), Indian's largest commodity trading platform for $55 million. Similar to NYSE Euronext's increased expression of interest in India is the press release from the second article discussing the International Finance Corporation's plan to double its investment in Indian infrastructure to about $1.1 billion by the middle of 2008. News of the ICF looking to develop infrastructure in rural areas of India demonstrates the new push to stabilizing and diversifying its strong service-based economy. So while I was perusing the blogosphere, I commented on two intriguing blogs related to these recent news events in India. The first blog called Building BRICs is a newly formed blog written by Grant, who is studying at the Graduate School of International Studies at the University of Denver. Having performed related past research and work within global economic issues, Grant has a highly credible background. I decided to comment on Indian Portfolio Investment Continues...FDI? because I was captivated by the analysis on these new economic trends in India. The second blog called Helloji: Chat & Chai is updated daily with new trends occurring in India written by two Indian bloggers Helloji and FabbyGabby. Although their credentials are indeterminable, their blog attracts many daily visitors. Despite this blog not being a highly reputable source, I commented on Of Cow and Consumerism relating to India's rise in consumerism because I considered this post to be more personal because it was actually written by Indians living in India that express their thoughts on the nation's economic situation. For convenience, my comments are posted below."Indian Portfolio Investment Continues...FDI?"
Comment:
I enjoyed your post about the increasing surge in portfolio investment in India. A trend with the BRIC countries is their explosive GDP growth. Without a strategic plan set in place to best handle a strong GDP in developing countries, the growth is not sustainable in the long run. As you mentioned, the International Finance Corporation's decision to double investment in Indian infrastructure is a complementary decision to the nation's economic prosperity. Nevertheless, I think your post could have benefited from discussing the utilitarian allocation of the funds. As developing nations such as India flourish, it is pertinent that policies be established to prevent the social gap from widening. I feel that it is economically sensible for the IFC to target infrastructure that will "benefit small and medium enterprises and the poor." Similarly, mentioning the IFC's recognition of Indian companies that have superior environmental practices would explain the IFC's strategy of encouraging growth in an environmentally friendly manner. Given the future world outlook of diminishing natural resources and serious environmental issues, it seems that a new business trend is having an environmentally friendly image. Emphasizing the IFC's focus on appearing to be a more e-friendly and humane corporation will help appease the tensions of its protesters. Your argument that makes the link between developing infrastructure in Indian's rural areas and the amount of future foreign direct investment is strongly justified. You gave accurate insight on how developing India's rural infrastructure will lead to increased productivity per unit of labor and will in effect make it an even more attractive destination for foreign capital. India has a long way to go before it can fully orchestrate improvements in infrastructure in a country with 1.1 billion people. However, a proper allocation of resources will hopefully result in social and economic stability across the nation. This type of stability in developing countries is what investors look for to make sure their investments carry less risk than they desire. Overall your post gave me a new perspective on India's growth and what measures need to be taken to accommodate it. Besides allocating money to develop infrastructure, what other forms of social investment do you think would help support the service driven economy of India?
"Of Cow and Consumerism"
Comment:
It was a delight to read your post "Of Cow and Consumerism." You successfully linked the story between Ramu and his uncle as a learning experience not only for Ramu, but also for the Indian people as a whole.
Effectively, the moral of the story leads to your main argument of attending to the 836 million people living on half a dollar a day who will determine the future of India. You successfully explained the effects of the new booming economy in India with many vivid examples of this new age of consumerism. I thought you did a good job at introducing your argument with concise and blunt statements such as, "That is the image of India: billions of buyers." You discussed the overwhelming omnipresence of consumerism in India, whether it be in the media, in the shopping malls, on the street corners, or at the IT call centers. I enjoyed reading your short and to the point style of writing, which contributes to the strategic shift in tone from more nostalgic and humorous in the beginning to a more serious tone towards the end. Your assertion that capitalistic democracy results in a nation of buyers is well supported with punctual sentences like the following, "No one is just a bystander in the new economy. Everyone is a participant. Everyone is a buyer." The opportunities for the Indian people to seek education, secure jobs at IT calling centers right after high school, and generate enough income to buy new cell phones and cars are all modern phenomena that few Indians could experience no more than a decade ago. You raise many good questions regarding the sustainability of India's consumerism while you metaphorically predict the milk will soon run out and that we will have to feed hay to the future generations. I feel your post would have benefited greatly if you provided solutions to this imminent problem instead of leaving these questions unanswered. Personally, I strongly propose that India develop its infrastructure and manufacturing industries so that it is not so reliant on the success of its service-based economy. What are your thoughts to closing the social gap in India?
2 comments:
I greatly enjoyed your insight on India's booming economy. Your provide informative links in your introduction that allowed me to gain a better understanding of international economic investments and practices. Your ability to locate two blogs that analyzed India's economics in very different ways provided variety in interpretations of India. While Grant's blog gave an academic analysis of India's economy, the two Indian bloggers' post added a personal and humanistic touch to your topic. In your first comment to Grant's post, you were able to intellectually propose your belief that while IFC's investment in India can help its economy, the investment should be directed so that it helps the environment and attempts to bridge the social gap by helping middle and lower class projects. While I feel your commentary was informative and interesting, the final question you pose is one I wish you attempted to expand on more yourself. It seems an appropriate topic you could have indulged in your comment because it would have expanded the realm in which you and Grant were discussing. In terms of your second comment, you introduce a very respectful and friendly tone to the bloggers as well as complimentary critique on their post. However, it seems that rather than add a different perspective on the subject of Indian consumerism, you re-iterate their points. Seeing as you have a background in the economic area of interest and in India, your personal insight on consumerism in India, specifically in relation to the recent news you post in your introduction referring to the increased investment in India's economy, would have been appropriate here. To repeat what I suggested earlier, your last couple of sentences in this post as well are sentences I wish you expanded on. As someone who is not as familiar with building infrastructure in developing countries, I would have liked to hear why you propose that India develop its infrastructure and manufacturing industries. Overall, your comments were very informative and your insight seems to be a perspective that I am interested in following up on.
"Redirecting India's Economy: Shifting Dependence from a Service-Based Economy"
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