On the road to Liberty

Rather than focussing on reducing emissions, India can make a difference by liberalising its economy, improve efficiency, and thereby contribute to a cleaner and safer environment. On the eve of the Copenhagen climate conference, I look at the relationship between economic reforms and energy efficiency in this article, " Earth Story ", published in the Financial Chronicle, on 7 December 2009. With the opening of the climate conference in Copenhagen, India has an opportunity to change the climate of negotiations. Surprisingly, Jairam Ramesh, the minister for environment and forest, decided to play for a draw with his statement in Parliament last week proposing voluntary reduction in India’s carbon intensity. Despite his strong assertion that India will not accept any legally binding international commitment to reduce emission, he proposed to reduce the intensity of the economy by a modest 20 to 25 per cent. Just when the world of climate science was getting shaken by allegati...

Liberty Institute Briefing Paper on Trade and Development titled Costs of Protectionism:How Indian Consumers & Workers Lost Out was published in November 1999 In 1947, India's share of the world trade was 1.5%. In 1998, it was estimated to be 0.8%. Per capita income in 1998 was approximately $400 ($900 under PPP) Indian Economic Philosophy for the Past 50 years • National self-sufficiency • Import substitution • Trade is a zero-sum game Basic rationale for restricting trade: • Protecting domestic manufacturers • Encouraging domestic manufacturing and employment • Ensuring quality and safety for the benefit of consumers • Promoting indigenous growth of knowledge and technology Consequences of protectionism: • High price, low quality • Low levels of competition • Technological stagnation • Knowhow dependent on policy of subsidies • Smaller market, lower volumes • Perpetual Scarcity Loss to consumers - Choice, Price, Quality, Access Characteristics of the Protected Domestic Market...