On the road to Liberty

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...

My article titled Conquest Without Victims-Another look at Kashmir appeared in the newsletter of Liberty Institute, May 1999. War clouds are again gathering over Kashmir. While the political divide is obvious, effective steps towards open trade and travel in Kashmir and in South Asia, would go a long way in building a market based relationship. And this, in turn, could help ameliorate the political pressures. The specter of balkanisation on race, ethnic, religious or linguistic grounds around the world has generated the realisation that no society is immune to this pressure and “ethnic cleansing” is a completely unacceptable solution. This century is replete with instances of horrendous crimes committed in the name of defending one's community. For instance, Pakistan was created on the basis of a particular religious affinity, which claimed to be irreconcilably different from other major religions in the sub-continent. However, within two decades, it was clear that Pakistan’s rel...