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     Print Edition: November 30 2008

The fortnight’s burning question. Was the Left right in placing roadblocks in the path of economic reforms?

Nilotpal Basu, Member (Central Committee), CPI (M)
By allowing short-term speculative money to enter the country, the government has created problems for the economy. The situation would have been worse had the Left not raised objections to full capital account convertibility and the opening up of the financial services sector.

No. Manish Tewari, Spokesperson, Indian National Congress
Government-supported big-ticket reforms are not going to ravage our economy. Even after increasing the FDI inflow limit, the financial system will continue to remain well-regulated. Besides, the government is taking all the possible steps to curtail the impact of the current global financial meltdown on India.

No. Ajay Shah, Senior Fellow, NIPFP
The impact of the global meltdown can be minimised only by second generation financial sector reforms. The problem with financial institutions is directly linked to the malfunctioning system. The vulnerabilities have been exposed by the current crisis and suggest that India needs the reforms recommended by the Percy Mistry and Raghuram Rajan Committees.

Compiled by Manu Kaushik

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