Sunday, December 6, 2009

Financial mismanagement! Et tu, Dubai?

Hi friends, we are still in the process of recovery from the self created economic crisis but the recent shocking news from Dubai may hinder this process to some extent. As published on “The post.IE”, Dubai, once the poster child of global economic boom, looks like becoming the symbol of its collapse, with major question marks over its financial health. When I first read this story I remembered the famous quote from Julius Caesar, Et tu, Btute? and I never imagined that a country like Dubai with the blessings of our ancestors in the form of fossil fuel resources will lose its face on economic fronts. (Read my post written long back: “Are we enjoying on debris of our ancestors”) Can the already weaken world economy with stand another turbulence without sinking? And only time will give the real answer to this question because in economics contradictory answers are given by different experts keeping in mind their interest. One of the basic reasons for all economic crisis which we have seen in recent past either globally as a whole or in individual countries is the failure to assess our own economic strength and in India our moms use to call it as stretching legs beyond our bed. I have published a post “Remembering my mom and her proverb” long back about this subject and some people criticized my views. Dubai economic disaster is a fresh case of economic mismanagement which has given sudden shock to all of us. Since we are living in a global village, any blunder committed in one part of the village is bound to create problems in other parts. So it is necessary for the economists to observe some discipline that are planning and advising governments on day to day basis so as to keep the progress in a normal way. Whenever I hear the stories of economic mismanagement from the responsible Governments, I remember the most powerful historical personality of India Chanakya who is known for his practical approach in successfully dealing with any political situation. He was the most honest and shrewd politician ever seen and if you have a deep knowledge of world history including India, you will agree with my opinion. I think Chanakya is the most ideal kingmaker because he has chosen an ordinary person like Chnadragupta who was not having any sort of back ground either political or financial, established a kingdom from nothing and made him the king of Pataliputra. He has guided Chandragupta in all aspects of ruling and he became the most ideal emperor in the history of India. The book “Arthashastra” written by Chanakya is still considered as the best ancient Indian treatise on statecraft, economic policy and military strategy and the economic disciplines explained in the book if followed in letter and spirit with changes to present conditions will create a heaven for all of us in the earth itself. Those who have read this book have called Chanakya as Indian Machiavelli. According to Chanakya, country’s interest stands first and everything follows next and the book “Arthashastra” teaches how to rule and keep your citizen happy. Though this book was written in 350-283 BCE, Chanakya’s economic visions are relevant to present modern world and we can practice and get benefited from them which are unique in many ways.

Hi friends I will put a break to this post and continue tomorrow……….