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About Dr.VSR.Subramaniam
Expertise
Basically a B.Sc (Physics) from the University of Madras, India. Started the career in production engineering under German and Italian experts. MBA in Management from IIM, Ahmedabad (India). Ph.D (Management) from the University of Bomaby (the first ever awarded in this subject). Headed the computer centres of Multi nationals; "Data Processing expert" of the Commonwealth, London (To implement World Bank and UNDP Computer softwares); "Consultant Adviser" to the Caribbean Development Bank (CDB), Barbados. Associated with Nobel Laureate in Economic Science-1979, Arthur Lewis (Past President of CDB) & 4 more on his introduction. Visiting professor to many universities. A Trained ISO 9001:2000 Quality Auditor. Over 40 years of combined experience in Accounts, Computer Software, Economics, Engineering, Management, Science, Technology, Research & Development and Qulaity systems. Author of over 60 Application Research papers. Currently a free-lance consultant in ISO Quality Systems, Socio-Economic development acceleration, Innovative software designs. Can answer any question in Theoritical/Applied-economics with an in-depth and innovative dimension. I DO NOT ANSWER : 1. STATISTICAL data & analysis. 2. PRIVATE questions, as they do not appear for PUBLIC view & search 3. Examination & Project report oriented questions. Website http://www.drvsrs.com

Experience
Experience in the area Over 40 years in Industrial, Service and Economic development sectors. Socio-economic development oriented expertise (1982-86). With Commonwealth Fund for Technical Cooperation, London as a "Data Processing Expert". With Caribbean Development Bank, Barbados (UNDP,World bank set up) as a "Cnsultant Adviser". See "http://www.drvsrs.com/drvsrs.htm" and "http://www.drvsrs.com/publication.htm". National & International awards. R & D Author at http://ideas.repec.org/e/psu50.html and http://www.ssrn.com/author=360079
 
   

You are here:  Experts > Arts/Humanities > Social Science > Economics > Economic assistance

Topic: Economics



Expert: Dr.VSR.Subramaniam
Date: 7/8/2008
Subject: Economic assistance

Question
Recently US is showing extraordinary interest to finance the Indian government and private sectors. Some examples are –

(1) On July 18, 2005, President George W. Bush and Indian Prime Minister Manmohan Singh announced a far-reaching proposal for civilian nuclear cooperation. (2) Mumbai, Oct 30 (PTI) -- Export-Import bank of USA, America's official export-credit agency, is keen in financing Indian companies to avail US-goods and services, a top EXIM official has said.  (4) US-Exim can help in financing the sale of US exports by providing loan guarantees, export-credit insurance and direct loans, said US-Exim's chairman James H Lambright to the  reporters here. The lender had recently extended a USD 1.23-billion loan guarantee to Air India to buy 17 Boeing aircrafts and four spare engines in a 68-aircraft fleet renewal plan. In May this year, the bank had also extended a USD-500 million loan guarantee to Reliance Petroleum Ltd (RPL), to build USD-6 billion Oil refinery and Petrochemical complex in Jamnagar. The total credit-exposure of US-Exim bank to India is estimated to be over USD 3.1 billion, with nearly USD 1.13 billion financial commitments on pending.
Source : http://www.accessmylibrary.com/coms2/

Is there any special reason behind these US gestures to India ? Why such offers are not made to other countries in east or fareast ?


Answer
I welcome such meaningful and “eye opener” questions like this. All developing and under developed nations do not think like those who rule and monitor the economics of US. The take faster decisions, act, fail or succeed, learn by experience and immediately re-orient themselves  for the next optimum action.  It is like the learning capability of a computer from the data accumulation.  

A) HISTORY.

Experiences of the  World wars (First 1914-1918 and Second 1939-1945)  warranted the need for one or two super powers in east and west to protect and support  the developing and underdeveloped world  from the fear of war and economic depression. As a result, US (by their ability in research and development in warfare) emerged as the super of west,   UK (by their colonialist background) and USSR (by their mass appealing communist principles) jointly emerged as the super power of the east.

As time progressed,  the  politico-social scenario in the world changed. On 1st   January 1942, during the Second World War, the United Nations (UN) was formed with the unity of 26 nations. US and USSR in competition, were trying to gain a leap with more “veto (privileged voting)” powers on the UN decisions. The dwindling and ultimate closure of USSR in 1991 left a wide opening for many countries to fill the super power gap in the east.

China with the power of large population was making every efforts to capture the same.  But US strategically played and gained the control of UN and converted this peace setup into an army,   ammunition supported puppet. (peace keeping by force !!), and deployed to its own advantage. But it was not that effective for US to gain the title of eastern super power. Hence, in the camouflage of protecting and promoting peace   in the eastern poor nations, US directly initiated, promoted and maintained war bases in the east.  This activity, as a byproduct, provided large employment for the US citizens in the US army, navy and the airforce, in the positive side. But these war investments by US ended with no economic or political return as expected. They  not  only  added losses to the federal government, but gained a sizeable domestic and international non-popularity and dollar deteriorated in the internal exchange market etc...
(Examples – Wars in Korea, Vietnam, Afghanisthan, Iraq etc..).
[See “A Push to George (in) Bush” at http://www.drvsrs.sedsgo.htm].  

Hence, US is now left only with the strategy of “economic chocking” of the eastern world by over-funding and trapping them as their economic slaves.

B) US LEADERSHIP INTERESTS

The ultimate and expected end results to strengthen the stand of US as a super power in the world are as below (Extracts from authorised US declarations, with my appropriate comments) :-

01)  Preventing Asia from being dominated by any single power that has the capacity to crowd out others and which may use aggressive assertion of national self interest to threaten American presence, American alliances, and American ties with the regional states.

02) Eliminating the threats posed by state sponsors of terrorism who may seek to use violence against innocents (particularly in US !) to attain various political objectives, and more generally neutralising the dangers posed by terrorism and religious extremism to free societies.

03) Arresting the further spread of weapons of mass destruction and related technologies (not palatable by US !) to other countries and sub-national entities, including sub-state actors operating independently or in collusion with United states.

04) Promoting the spread of democracy not only as an end in itself but also as a strategic means of preventing illiberal polities from exporting their internal struggles over power abroad. (against the internal interests of US !).

05) Advancing the diffusion of economic development with the intent of spreading peace through prosperity through the expansion of a liberal international economic order that increases trade in goods, services, and technology worldwide. (So that all developing nations will not progress economically, without the assistance from US !).

06) Protecting the global commons, especially the sea lanes of communications, through which flow not only goods and services critical to the global economy but also undesirable commerce such as drug trading, human smuggling, and weapons of mass destruction technologies. ( In the past, US was the ultimate sufferer of these activities !).

07) Preserving energy security by enabling stable access to existing energy sources through efficient and transparent market mechanisms (both internationally and domestically), while collaborating to develop new sources of energy through innovative approaches that exploit science and technology.  (To create a captive market for US technology and experts !).

08) Exercising an effective control over Japan, South Korea, and China, who could jointly assume the role of a balancing “Eastern Super Power” against US. (By filling the vacuum left over by the late USSR !).

C) WHY INDIA ?

India is a pivotal country to control India and the  Far East as a package. This was realised and utilised by the British rulers in India as far back as 1600s. The East India company was established in India with Calcutta as its Head quarters, in 1608. (Culcutta is in the apex of Bay of Bengal with India in the west coast and all other far east nations in the east coast !). They ruled India and still extend their power by realising the following facts, as understood by US.

01) India has the cream of manpower, far exceeding the professional capability of any other nations in  far  east. Us has an eye on this human asset.  

02) India has the hi-tech and hi-quality educational institutions to produce top quality intelligentsia needed by US. Already a large volume of Indian intelligentsia has been captivated, settled and trapped at a point of no return  opportunities in India. These   cream of Indians will force Indian governments to take sides with US to protect their self interest, even if it leads to an economic loss to their mother land.

03) India has the largest population growth –  Ever increasing demand for essential items, never can be met by any economic plan or any wizard. So “poverty” is an ever chasing phenomena in India. “People who do not eat well  cannot think high, however great their skills are” – Quote by my Caribbean associate and Nobel Laureate in Economics (1979) Sir.Arthur Lewis. Hence people can be easily purchased and manipulated to any extent by the money power.

04) Indian politics is dominated by the leverage of “apartheid” (classes, quotas, reservations etc…).  Hence, the elected representatives in the parliament is always be physically (and notoriously) powerful and mentally inferior. (Support – Remarks of the First Prime Minister Jawaharlal Nehru in the first parliamentary  meeting,  just after the independence).

05) The   merger of East  and  West Germanies in 1989 and the subsequent  dwindling of the USSR (the  balancing Eastern power to US) in 1991, the “Communism” has died once far all in the world. These fortified and separated communist nations now support and look for assistance from  US ! But it is amazing that the communists still thrive, grow, get into (joint) power and rule India, as well as oppose any US proposal submitted to India  !! It is annoying the US policy makers.

06) India is an unique nation impregnated in philosophy which rules over the common sense and wisdom. The prime philosophy, advantageous for exploitation by all foreign  nation  is “Tolerance” (Formatted, propagated, trained and promoted by Mahathma Gandhi). Indians tolerate any nonsense, put up with it, grow and survive in it. Example – Indian national congress was formed by Mahathma Ganthi and native Indian leaders in 1885, to remove the foreign rule (British) from the Indian soil. The party slowly dwindled and the largest piece designated as “Indira Congress” elected an Italian born (foreigner) as their President in 1998. Also promoted the image of this Foreign born president (Sonia) with a “Gandhi” tag, to make believe the uneducated rural population in India, that their new leader is a family heir of Mahathma Gandhi, who got the Indian freedom !!  The naïve politicians in the Parliament even went to the extent to make her the “Prime minister of India” !!. But guided by her Italian philosophy and wisdom, she politely refused it !!  (From removal of the foreign rule to the acceptance of a foreign leadership !)  

07) India is country of “unity in diversity”. It means that India is made up of a diverse 42 nations (35 staes+7 territories) and in a “liquidated” unity.  Hence US cannot take over India by applying their tested “war” approaches in Vietnam, Korea, Afghanisthan, Iraq etc…, with the support and sanctions from the UN (an army and warfare  supported  peace  affiliate, in the hands of US !). According to Pascal’s law, any force applied at any point inside a “liquid” is propagated equally in all directions. It is impossible predict which point will explode under the distributed  hydraulic  pressure  and end in an uncontrollable damage to the originator of the force !!  

08) US can at any point of time take sides and pump money into the evil hands of  controversial linguistic, religious, caste groups and create a “civil war” situation. This could be easily kindled within a state or between states. This will provide  a  leverage for US with a powerful political advantage to take over the nation, and rule the splatted  groups as they wish. (This was the divide and rule strategy of the British in India, played between the Maharajas of different states, and people within a state).  

I hope, I have provided  sufficient support factors  for US  to  "love" and select India (and  India alone) for their power extension programs, through an “Economic trapping” package with aids and loans. (and not for any other far east nation). NOTE – AIDS is a dangerous disease.

D) REFERENCES.

a) http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=17693

On November 16, 2005, Carnegie Senior Associate Ashley J. Tellis testified before the House Committee on International Relations. His testimony was part of the hearing on "The US-India Global Partnership: How Significant for American Interests?" called by Chairman of the Committee Henry Hyde to examine the implications of the U.S.-India civilian nuclear cooperation.

b) http://www.drvsrs.com/drvsrs-store/books.htm

Books – “SED BY DRVSRS”, “SOMA BY DRVRS”, “COMMUNISM – A SURVIVAL  ANALYSIS”

With Regards.
DR.VSRS
Book store - http://www.drvsrs.com/drvsrs-store/books.htm
Website    – http://www.drvsrs.com  

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