Friday, February 27, 2009

Because it has none in the informal sector

T. C. A. prescriptions for healing economy:

  • What is truly extraordinary is that the one thing that the government, as the largest buyer of goods and services can and must do, it is not doing. That is to place orders for steel, cement, computers, software, trucks, cars — you name it. Just fill the order books, if necessary with a proviso for later delivery, and see how the mood changes.
  • It is puzzling why this simple solution can’t be implemented. Instead of all this grandstanding, all that the different ministries had and have to do is to just get on with buying whatever they were going to buy this year and next year”.

This kind thinking has already implemented in the six pay commission by embossing the informal sector where the majority of people dwells. 

Just is the growth rate of different sector in the Q3 (October-December) 2008-09. The manufacturing and agriculture and allied sectors were shown negative growth but the community, social, and personal services were shown as high as 17.3%! 

Of course, people who are in the formal sector will defiantly do “orders for steel, cement, computers, software, trucks, cars”…..etc.

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