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Economic crisis: 1998 worse than 1991, says Manmohan

Leader of the Opposition in the Rajya Sabha Manmohan Singh has said that the country needed leadership with vision and foresight to overcome the current economic crisis.

Addressing a seminar in New Delhi, the former finance minister said the present difficult situation was worse than the 1991 crisis.

He said the earlier situation was only an internal crisis but today's economic situation entails not only a difficult domestic scenario but also a highly adverse international business and economic environment. The seminar was organised under the auspices of the Confederation of Indian Industry.

Singh called for developing a wide entrepreneurial base as all power and wealth cannot be controlled by a few families.

Besides, a diversified base alone can ensure stable economic growth, he said, adding that the quality of entrepreneurship would decide the future economic prospects.

Singh said the country needed a government which was free from corruption and did not pander to sectarian interests.

He, however, said the situation on the political horizon was not very promising. The political system was not being able to reduce the external hardships and tackle the problem of poverty. There is the problem of ill-health and diseases which needed to be handled on a war-footing.

He said it was necessary to have an India free from hunger and exploitation. The country has achieved a great deal but there is still a large ''unfinished agenda'', he added.

The noted economist said a high growth of seven to eight per cent alone would be able to take care of poverty by absorbing those at the margin. The importance of creation of wealth and achieving high economic growth cannot be overemphasised, nonetheless equity was equally desirable.

Singh said widespread disease and poverty which afflicted millions of people could not be solved without the creation of wealth. Those who created wealth were worthy of ''our salutation'', he said.

He said it was entrepreneurs who took risks and thought of the future.

Quoting economist Lord Keynes, he said in the final analysis investment is an act of faith. ''Entrepreneurs perform a function of great societal value. A society which nurtures entrepreneurs develops great capability. The only constant about change is change itself. It is not possible to freeze intellectual, technological and other progress. The management of change is the hallmark of new India,'' he said.

''It is the mental make-up which decides where society is going,'' he said, quoting another economist Nicholas Kaldor.

Singh said trade unions, politicians, industrialists and intellectuals all participated in the process of development.

He said development of a society cannot be the monopoly of a few families. Every nook and corner has young entrepreneurs whose skills needed to be nurtured, he added.

Singh said regional imbalances posed a danger to national unity and integrity of the country. If these forces gained an upper hand, it would be difficult to establish a common market. There is need for commitment to the growth process and achievement of excellence if the country has to take its righful place in the comity of nations, he added.

UNI