In the name of Reform

Much water has flown under the bridge since my last post. There are signs of growth stabilization. Developing countries are recovering at a faster rate than the OECD countries. EU nations are again under a debt trap. Lot of stabilization measures have been initiated. We need to wait and watch the unfolding of this new debt ridden problems. There are lots of talks about REFORMS. It has become a buzz word. The latest being the cut of power of FSA (Financial Services Authority) of U.K. It has become a kind of subsidiary to the Bank of England. Seemingly impossible are now becoming possible. It reminds me of the view of the Austrian Economists - they view the economic calamities as Tuneup Cleaner - it cleans the unnecessary elements from your system. There is a lot of noise in India also to streamline the regulations (latest being the SEBI-IRDA spat and the Ordinance). Do we need to overhaul our system? I will continue to write on this subject.For the time being I would like you to go through a paper (I am not adding any adjective). The title of the paper is: Financial Sector Reform: Realities and Myths by R H Patil (Download the paper).