This article was posted by Aspects of India’s Economy.
The New Great Depression and India
Over the last six months, a new Great Depression has enveloped the entire world. The ruling circles worldwide and the international media have been propagating that this Depression is the result of a mere financial crisis, caused by irresponsible lending by banks to poor people in the U.S.. Accordingly, they began by claiming that within six months to a year, the recovery would begin, thanks to government bail-outs and stimulus packages of unprecedented size.
So rapidly did the crisis advance, however, that within weeks these claims wore thin. Talk of a systemic breakdown now entered the language of the ruling establishment itself. Even as a defensive George Bush asserted at the G-20 summit that “The crisis was not a failure of the free market system”, his French and German counterparts were acid in their retorts. The German finance minister declared to the German parliament: “The world will never be as it was before the crisis. The United States will lose its superpower status in the world financial system.” “What we are seeing now”, said Raghuram Rajan, former chief economist of the IMF, “is capitalism in crisis… but I do not see an end to capitalism.”1
Revolution in South Asia 