America, world’s most powerful nation, managed to safeguard from sliding into bankruptcy by fending off its debt crisis, but the black cloud of economic slowdown is still hovering around and its repercussion is being felt across the globe. The way world stocks market tumbled down in the last few days, indicates that America alongwith world economy seems to be in a chaos. After the US drifted closer to the economic meltdown, both the Democratic and Republican parties of America agreed to push up the old debt ceiling USD 14 trillion. If the debt ceiling was not increased, the US economy would have stalled. Both the main parties of the US gave nod for adding USD 2.4 trillion to the debt ceiling. The period of taking debt has been extended to2013.

As per deal inked by the American political parties, about USD 2.1 trillion will have to be saved for the next ten years and during this period no tax would be levied. This could result in a new problem, which seems to be appearing about America’s credit rating being downgraded by Standard &Poor’s. In line with America, European countries are also facing economic crisis. After Greece, Spain and Italy are also gliding towards bankruptcy. The world’s stability is at stake as America alongwith European countries are coming under the grip of economic crisis. India is also facing the brunt, which is buttressed by Finance Minister Pranab Mukherjee’s statement that downgrading of the US credit reflects a grievous situation.
The crashing of world market has also hit the corporate sectors of India. If the economic situation of America and European countries does not improve, the problem of Indian economy will be aggravated. The current economic situation of the world may have impact on foodgrains and costs of minerals. If it happens, the growth rate of India will have adverse effect. Previously, when global recession crops up owing to economic slowdown in America and European countries, India faced the situation bravely, but since then the country has not come out of the quagmire of price hike.

India has been facing the problems of price hike for the last three years. The skyrocketing price has hit the growth rate of the country, this fact was revealed by the Prime Minister’s Economic Advisory Council. It is cause of concern that food inflation is around 10 percent. Sometime back it has reached at 13-14 percent. However the Central government has been claiming to contain inflation, but it proves empty. Common people feel that government’s claim to control price hike is pointless. As the government’s claim to bridle price hike has always proved false, no one is willing to rely on it. For this situation, only the government is responsible because it tries to evade the crisis by citing reason like economy of western countries or high price of crude oil in international market, or weak monsoon.   

It could not suffice that the monsoon session of the Parliament was rocked by the discussion on the price hike. During this discussion nothing tangible was made by the ruling party and the Opposition to curb rising inflation as well. In reply to questions hurled by the Opposition, the government gave hackneyed reply. During discussion in the House, it was clear the Centre is unable to bridle the surging inflation. It was disappointing that the ruling dispensation and the Opposition merely followed the formality in the name of debate on the price hike. The Opposition which was earlier claiming to corner the government on the issue of price rise was not even willing to censure it. It is sad that MPs are engaged in the cacophony of defeating one another rather than doing meaningful discussion on the issue of national significance and getting to the bottom of any issue. This is not the first time that the debate of the ruling party and the Opposition on a serious issue turned into a pandemonium. This has become a regular feature of the Parliament. Many times the din in the House has no business with the solution of the issue. It seems that our average leaders are neither keen to go to the bottom of the problem nor seek solution to the problem. Their conduct does not indicate that they are concerned with the present scenario of the country and adverse outlook of the global situation. Political parties are trying by hook or crook to grab power or safeguard it. They treat common people as a vote bank. They are of the belief that election could be easily won with political stunt. These leaders don’t have explanation about rampant corruption. Remarkably, corruption is also a potent cause of price rise. Leaders do not have solid explanation of unbridled prices.

In years to come, global economic situation can hit Indian economy. At present, the government’s stand on price rise has stalled the pace of improvement of infrastructure alongwith agriculture. Now, the Central government is engrossed in boosting its position. Owing to spate of scams, leaders of the ruling party are not able to understand how to tackle the situation and remove agony of people. The role of the Opposition is also doubtful. The top brass of the ruling and the Opposition who know the pulse of the nation, attach importance of settling political score in the turmoil situation of the country. That’s why there is a gloomy atmosphere in the country. If this approach of the country does not change, it will be difficult to prevent the country from sliding into the economic crisis.

(An original copy of the article published in Hindi on August 7, 2011 translated by the English Editorial. The author is Group Editor of Dainik Jagran)