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joseph stiglitz redefines capitalism as fear of fdi stares india

patna,(bihartimes): nobel laureate joseph stiglitz redefined capitalism for the who’s who of bihar at maurya hotel in patna as india fights the challenge of foreign direct investment (fdi) in the multi-brand retail sector.
speaking at the foundation lecture of asian development research institute (adri) he said that it would be wrong to ignore the contributions of the government in the development of the united states of america.

an essentially agrarian united states of 19th century grew on to become a global industrial power house not just because of the presence of private capitalists.

it was the government, which came to the rescue of farmers, especially in the years between 1929 and 1933. the more the productivity was increasing the less they were getting return.

similarly, the government’s role in transforming the country from manufacturing to service sector can not be under-estimated. for example, the growth of internet is very essential. so it is not just the market, which decides everything.

stating that capitalism is not infallible stiglitz said it had faced crisis over and over again––in the united states, east asia, russia and many other countries of the world.

he said that market-government relationship is very essential for the development of a country.
explaining the different shades of market economy he said scandinavian capitalism is different from that of the united states and that of japan much different from the us. similarly, the german capitalism is quite different. he cited that the german economy managed to survive because it adopted european social model of capitalism.

stiglitz said that there is a problem of governance in private sector too.he said that the united states, which is a big capitalist country, has the highest level of inequality.

talking about trickle down economy he said “i wish it succeeds.” the top in america has done really well. one per cent of people are controlling one-fourth of the wealth.

he said that the gdp is not a better yardstick to measure success. there are other benchmarks too to evaluate and rate the performance of any government.

highlighting the achievements of indian entrepreneurs he said that they know how to adopt and tackle the modern technology. he said that now opportunity in the united states is shrinking.

the renowned author and economists said that he is not against fdi as such, but in retail sector, of course. india has enough scope for the growth of its own entrepreneurs in this sector. in this context he referred to wal-mart and how it used bribe in mexico.

he said that telecom rates are more competitive in india than the united states and in the united states more than in mexico. this is because there is no monopoly of any one company.

to explain his point further he said in bihar too it is the government, which is becoming an engine of change. but he warned that there are are challenges in the success too.

earlier, chief minister nitish kumar, while speaking on the occasion urged joseph stiglitz to see to it that the ancient nalanda university is included in the world heritage site as mahabodhi temple of bodh gaya. he talked about growth with justice and said that the real development is that in which, what gandhiji used to say, the last man gets its fruit.

deputy chief minister sushil kumar modi recalled how in his earlier lectures in bangalore and elsewhere stiglitz had opposed the fdi in retail sector.

member secretary of adri shaibal gupta welcomed the guest while p p ghosh, director, adri delivered vote of thanks.

seventy year old prof joseph eugene stiglitz was accompanied by his wife anya schiffrin stiglitz in his three day first ever trip to bihar, in which he visited nalanda and bodh gaya too

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