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'India has avoided the worst'

November 26, 2008
Do you think more regulation by the American government would have helped resolve the financial crisis? If the Americans restore regulation, do you think things will get back to normal?

Don't play with words. Bringing back regulation will only be a cosmetic change. They say the regulation should be administered and monitored. My question is, by whom? The same oligopolists. I don't think things will change now.

I will give the example of India, when interest rates for providing cheap housing loan were falling in the US, the Reserve Bank of India started increasing interest rates, thus making sure that our banks don't give bad loans.

Of course, the State can regulate in a much stronger way, but the State should reflect other interests than that of oligopolists and this is not the case (in the US).

How far will India be affected by this financial crisis since it was not fully integrated with the global financial system?

Some years ago -- I don't know when exactly -- but India was only 50 percent involved with this global system. Then they started moving more into it. I don't know the details about hot money in India, but thanks to the Leftist parties, India has avoided the worst. They (the Leftists) were keeping a check on hot money. That is the reason perhaps India will suffer less compared to Brazil or South Africa.

Image: An investor watches share prices on the Bombay Stock Exchange's broadcast screen. Photograph: Pal Pillai/AFP/Getty Images

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