Saturday, October 20, 2012

Laughable Idea

One Pakistani Leader speculates to have a common currency between India and Pakistan! There cannot be any more laughable idea than that. It is like putting a cart before the horse.

Looks like this Pakistani Leader has lost what is happening in Euro, the ill fated experiment where few nations decided to use same currency. First of all, there are tremendous questions about whether any such common currency can be implemented faithfully between these two adversaries as anyone country can use it to sabotage the economy of the other. But beyond that even if these South Asian nations implement such a plan as honestly as Europe; how can we ignore what happened to Greece, Spain and other countries - that those countries experienced Capital Flood just to increase their debt? If Pakistan were to clutch to the strength of Indian Economy, whatever it is, by way of a common currency; how is Pakistani Economy supposed to support the Capital in-flight when hardly 1 or 2 percent of Pakistanis pay taxes? Pakistan is one of the worst countries in the world when it comes to collecting taxes.

Not to negate the potential of Indian Reserve Bank stream rolling all these other nations in South Asia, only because it is answerable to well being of more than a Billion People of India. Countries which tried to hitch the wagon to Greenback; those did not see any path to prosperity without internal reforms.

When there is unwillingness to bring to books those who undertook Mumbai Terrorist Attack, there is simply too much of business to be finished between these countries to race ahead to common currency and like that. If this honorable Pakistani Leader hopes to help South Asia in general, he needs to do the hard work - the hard work of moving public opinion in Pakistan to have normalized relations with India. That is the job of a politician. Everything else is like hoping for a magic without solving the core issues. 


ravi said...

One merit I see is that there may be fewer fake notes printed by ISI to jeopardise Indian economy.

Umesh Patil said...

That is so true!