Need for New World Economic Order
The global economic landscape will undergo major changes after COVID-19, which has taken a toll of more than 2.4 lacs precious human lives, and more than 35 lacs are suffering from Corona Virus, in more than 190 countries around Globe, apart from economic loss of minimum twelve $ trillion Globally. USA alone has lost more than one lakh lives so far. India is no exception where more than four thousands five hundred deaths have taken place, and more than 1.5 lacs struggling with lives as on date. G8 Nations which is highly Industrialised nations like United States, France, Germany, Italy, United Kingdom, Japan, Canada, and Russia are worst hit. The way, China is concealing facts about the spread of Corona virus, the World is forced to believe that this is the deliberate or negligent act of China, which has put mankind in to danger. The refusal of China to allow American team to visit Vuhan city makes the matter more suspicious. The role of China and World Health Organisation should also be thoroughly enquired by Inter Government agency to find out the truth. There seems to be a sinister design by China, that when most of the advance Countries will be suffering & fighting with COVID-19, and when the share market of those countries will dip then China will buy the shares in very low price and try to control most of the big companies of Europe, Australia, America, India etc.. But most of countries one after the other could sense the sinister design of China, and put restrictions through making changes in their FDI rule that without Govt permission no investments can be done in their Country. The people’s Bank of China could increase share from .8 % 10% in India’s Housing Development Finance Corporation (HDFC). After realising this, India also on 17th April 2020 put restrictions by amending in FDI rule that without Govt permission, no neighbouring countries, can make any investments in Indian organisations, later added Hong kong also. Immediately China reacted, saying this violates the WTO mandate, which India rejected vehemently.
All this has forced us to think that we need to develop a New World Economic order in which our dependency on China, as major manufacturing hub, supply of raw material, or Supply Chain, has to be reduced and has to be tapered off 60 to 70 % within a span of 7 to 10 years. This has already started, as Japan and South korea have already decided to move out of China. Other Countries sooner or later follow suit. Recently American President Mr Donald Trump has said, that what we have learnt from COVID-19 is that we do not have to be dependent on other Country, we have to develop our own Supply Chain for self reliance, and has announced special tax concessions for Medical equipments & products. Rest of the World minus China is capable of making a New World Economic Order. As you know India has got all the resources in the creation of New World Economic Order. India is not only Greatest Democracy & one of the fastest growing Economies has got highest no of qualified and none qualified manpower in the world. India has got sufficient amount of raw material one can name. India is the second largest producer of Steel & cement, third largest producer of Coal, fourth largest producer of Iron & Ore, is also 55 % providers of Global service in the world. All these will put India in a Competitive advantageously position to become the major manufacturing hub of the world. Recently our Prime Minister Mr Narendra Modi, has already expressed that India will soon be the Greatest supply Chain hub in the World. After COVID-19, we need to pay attention in the following areas
- Improving Health Care Organisations; In the present crisis of COVID-19, our Medical fraternity did a commendable job in taking care of people, even in spite of constrain, but we faced shortage of testing labs, Ventilators, PPE etc though we supplied medicines to many countries, which was appreciated by World Community, but we need to strengthen our Health Care system. Presently we are only spending 1.28% of our GDP, on Health care, which is very less in comparison to USA 17.7 % Japan 12.5%, UK 9.6 %, Brazil 4.4% etc. We need to increase the share at least to 4.5% of GDP in Health care expenditure. We should be prepared to accept more stringent challenges in the Health care in the future. Moreover, whatever budget we allocate should be properly utilised. We should emphasise more on the efforts of prevention of decease like, testing labs, Vaccination etc. than cure. The role of Ministry of Ayush should be reviewed. Our Primary Health Centre (PHC) & secondary Health Care Centres (SHC) should be strengthened. We should also promote traditional system of treatment like Ayurveda, Siddha medicine, naturopath, Yoga etc.
- Promoting Research work; In spite of having789 universities, 126 deemed Universities, 336 Private Universities and 37,204 colleges our research work has not made any significant progress, this is due to the fact our quality of education and its delivery system is not up to the mark. In the QS World University Ranking we stand nowhere. Endless numbers of Private Universities and colleges have become a commercial entity and churning out doctorates, Post Graduates and Graduates. The conditions of our Medical Universities and colleges are not different. These Universities and colleges have failed in their mandate in fulfilling public expectations. One of the factors of Chinese Economic growth is the contribution from Chinese universities & research Institutions, which produces maximum no’s of research paper in the World. The role & responsibilities of AICTE and UGC should be reviewed.
- Promoting Integrated Industrial Manufacturing Hub; Introduction of export processing zones (EPZ) in Kandla, Gujarat during 1965, with the objective to bring foreign investments, failed to make an impact. By 2005, all EPZs had been converted to Special Economic Zones (SEZs) which is a copycat of Chinese model of SEZ. The Ministry of Commerce and Industry data show that 230 out of the 373 Special Economic Zones (SEZs) in India are operational that too all are not productive. Now we need to have Integrated Industrial Manufacturing Hub where we can provide Excellence in Manufacturing facility of all type for International requirement so as to fulfil the requirements of World.
Creating a Climate of Positive Work Culture; The success of Asian Tiger economy is the dedicated Work Culture, which we need to develop in more letter & Sprit. We have taken for granted our services with some loopholes in our present system, like lack of accountability, manipulation of rule and ineffective performance appraisal system.etc. Even the Coveted Maharatna & Navaratna CPU there is a scope for improvement. Present Government has already working towards it.
In fact, by this transformation we shall be able to attract the World to come to us and work as partner for the Economic growth all around, which is the need of hour. Even most of the developed counties like, USA, UK, Germany, France, japan, Spain, etc must be developing strategy as to how to reduce dependency on China. This way, we will see within 3-4 years a New World Economic Order, will emerge which will be for the benefit of mankind.
(This is the personal opinion of writer)
By Dr. R. D. Mishra
Director,
Greater Noida Productivity Council
Frm Director & Head, National Productivity Council, GOI
rdmishra1234@gmail.com
