Its Bombing everywhere...

I don't know how many of you have read Shock Doctrine, but for those of you who has read it know how exactly how IMF, World Bank and other institutions are used by developed countries to gain access to markets within developing and under-developed countries in the guise of development loans. The loans come with severe conditions that the countries cannot meet and that leads to further requests for loan waivers or loan modification which come with even more conditions.

In any case, this piece raises a lot of valid questions. We all know India survived this economic crisis and came out a lot better than most countries and it was due to some sound regulations imposed by The Reserve Bank. Now, we might be seeing the liberalization lobby making a back door entry. From The Hindu

Central bank oversight has ensured that the Indian banking sector is in good shape. But in a strange policy twist, the government has approached the World Bank for a loan to recapitalise the nationalised banks that may well come with conditionalities for extensive financial deregulation.

A much more important piece from The Hindu again is a piece by Dr.Santhanam. It is too important for me to excerpt it here. Please read the full piece here.