Why an industrial policy is crucial

No major country has managed to reduce poverty or sustain economic growth without a robust manufacturing sector 

The contribution of manufacturing to GDP in 2017 was only about 16%, a stagnation since the economic reforms began in 1991. The contrast with the major Asian economies is significant. For example, Malaysia roughly tripled its share of manufacturing in GDP to 24%, while Thailand’s share increased from 13% to 33% (1960-2014). In India manufacturing has never been the leading sector in the economy other than during the Second and Third Plan periods.

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BRI. China’s Real Intentions


Almost two years after China hosted a well-attended and hugely touted conference to promote its One Belt, One Road (OBOR) initiative. it held the second summit last week. It is apparent that the grand design outlined at the first summit hasn’t quite shaped up as designed. Questions were asked about its real intentions, economic benefits and usurious tendencies. 

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Do-it-yourself and nirvana economics



Published with the kind permission of the author

Revisiting the academic contributions of P D Henderson and H Demsetz 

In the last few months, two old friends andeconomist colleagues, whose work deserves to bebetter known in India, died.

The first, P D (David) Henderson died at the end ofSeptember aged 91. In a varied career, he was an Oxforddon, economic advisor to the UK Treasury and chiefeconomist at the UK aviation ministry before becomingdirector of the World Bank’s Economics Departmentin 1971. That was when I first met him when he wasvisiting Nuffield College Oxford, where I was a researchfellow completing a book on a cost-benefit study ofsmall-scale irrigation in Maharashtra (Wells andWelfare, OECD, 1972).

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Russia and the Council of Europe


By 2019, the escalation of the crisis in relations between Russia and the Council of Europe (hereinafter referred to as CoE) reached its apogee. The question of Russia's withdrawal from this oldest authoritative European organization or about its exclusion from it rose to its full height. The long-awaited resolution of the CoE parliamentary body 2277 of April 10, 2019 does not remove it either. The resolution is full of self-praise and proposals for extending its influence to other international and national structures, but does not contain any constructive solutions. 

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Published with the kind permission of the author 


Dr. Hauke Ritz is a recognized German author who lives in Berlin and deals in particular with issues of geopolitics and the history of ideas. His dissertation in philosophy, read at the Free University of Berlin, was entitled The struggle for the interpretation of modern times. The historical-philosophical discussion in Germany from the First World War to the fall of the Berlin Wall (Der Kampf um die Deutung der Neuzeit. Die geschichtsphilosophische Diskussion in Deutschland vom Ersten Weltkrieg bis zum Mauerfall).It was published as a book in 2013 by the Wilhelm Fink Verlag, followed in 2015 by a second edition. He is a prolific author publishing in specialized magazines and is regularly interviewed by international mass media. Our contributor Augusto Soto has met with him and both had an interesting debate about Russia and the future of the West. 

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Dealing with Pakistan Needsa Grand Strategy


For the past few decades, Indiahas adopted a lopsided Pakistanpolicy with engagement asthe only means to reorientPakistan’s foreign policy. Indiamust transition to a realpolitikapproach backed by a rangeof power instruments, alongwith creatively leveraging theinternational environment.India should pursue culturaland commercial ties with liberalconstituencies inside Pakistan,and remain open to dialoguewith political forces that arereconsidering Pakistan’s rolein the region. 

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The disuniting of the United States?



There is a deep ideological economic divide between Democratsand Republicans for the first time since the Great Depression.

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Unemployment report: ‘India can hide data but not the truth,’ writes economist Kaushik Basu


The former chief economic advisor to the Indian government blamed the Centre’s ‘disproportionate focus’ on big firms for the crisis. 

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The Sino-US Trade War – Winner Takes it SmAll


Does our history only appear overheated, but is essentially calmly predetermined? Is it directional or conceivable, dialectic and eclectic or cyclical, and therefore cynical? Surely, our history warns. Does it also provide for a hope? Hence, what is in front of us: destiny or future? 

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Review of book ‘universal brotherhood through yoga”


Publisher: Somaiya Publications Pvt. Ltd.; Mumbai – New Delhi (2019) 

Editors: Dilip Karambelkar, Kala Acharya and Mariano Iturbe 

Pages: 742 

This monumental volume was released at Vigyan Bhavan on Jnuary 21st, 2019 by the Vice-President of India, Shri Venkaiah Naidu and Sri Mohan Bhagwat, RSS Sarsanghchalak in the presence of a numerous and distinguished public. The aim of the Somaiya Vidya Vihar editors was to produce a compendium of literature on yoga in all its aspects, historical, cultural, spiritual, physiological and social which all contribute to India’s intangible heritage and expanding soft power in the world. Samir Somaiya, the president of the Vidya Vihar alludes in his preface to the renaissance of yoga triggered by the proclamation of international yoga day by the UN General Assembly on June 21, 2015. 

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RIAC and the International Institute for Social and Economic Studies (Austria) Sign Cooperation Agreement


On February 18, 2019, in Vienna, Russian International Affairs Council and the International Institute for Social and Economic Studies (IISES) signed an Agreement on Cooperation.

The parties agreed on information exchange and on the implementation of joint projects in the area of European security and development. The Agreement was signed by Andrey Kortunov, RIAC Director General, and Walter Schwimmer, IISES President, Secretary General of the Council of Europe (1999–2004). 

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Forget Socialism Versus Capitalism. Here’s the Real Debate We Should Be Having


A specter is haunting business—the specter of millennial socialism. 

No I’m not channeling Karl Marx, Friedrich Engels, and the opening line of their Communist Manifesto, which appeared 170 years ago. I am channeling a cover story in The Economist, which appeared last week!

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Our global system has spun out of control. Here's how to rebalance it


The global system we are part of seems to be spinning out of control. Headlines around the world tell us something is amiss in many societies. I believe many of the developments we see today in individual countries and societies are part of an interconnected network of cause and effect. The entire global system is under stress. We must ensure it rebalances. 

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Heartland Reunion: Geopolitical Chimera or Historical Chance?


Anyone who has at least some idea about the theory of international relations should remember the oft-quoted formula put forward by the father of British geopolitics, Halford Mackinder: “Who rules the Heartland commands the World-Island; who rules the World-Island commands the world.” For those who are sceptical about geopolitical constructs and terminology, this logical chain may seem like a meaningless shamanic incantation. Over the course of a century, “Mackinder’s formula” was repeatedly criticized, corrected, repudiated, anathematized, parodied and ridiculed. And yet, strange as it may seem, not only has this formula survived an entire century, but it is also perhaps more relevant today than it was a hundred years ago.

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A Paris-Berlin axis: New Franco-German treaty a snub to other EU members


The two countries are actually forming an alliance of their own by setting up a Franco-German Defence and Security Council, independent of the EU and NATO.

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Battle cry, not a budget


The interim budget for 2019-20 is Narendra Modi’s bold gambit to win the perception war ahead of the Lok Sabha elections. If ever there was a pure Politically Correct budget, this is it. Designed as pro-poor, anti-corrupt and growth-oriented, it has something for every influential section of the society, and that too without any additional tax burden. There are only gainers, no losers. Adversaries may call it “aakhari jumla”, an “account for vote rather than a vote on account”, “bribe to the voters” or anything else, but they will find it tough to oppose any of the schemes or roll back any of the relief. 

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How American Economics Failed


How Macho, Patriarchal Ideas Created a Feedback Loop That Wrecked Prosperity — Instead of Enlarged It

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Accepting locality as a global trend: implications for Europe


Globalization, at least in its cultural dimension, brought the issue of self-identification to the forefront of public discourse in many regions and countries. It affected blocks, governments, institutions, individuals, even transnational corporations. As we all remember glocalization was to follow the process of globalization, but as some experts predicted it didn’t. Or only did partially. (For those interested in this kind of warning, I would recommend a book edited by Peter L. Burger and Samuel P. Huntington: “The Many Globalizations: Cultural Diversity in the Contemporary World” in 2002). 

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The Future of Europe


Many people are concerned about the state of Europe that is at a crossroads. The Europeans have to decide whether they want a strong Europe playing an important role in a fast changing world or to fall back to the outdated nationalism of the 19th century and being marginalized on our globe.

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The End of Economics?


Human beings are rarely rational—so it’s time we all stopped pretending they are. 

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