Economics and policy

Understanding economics is important, but only insofar as it advances the policy debate of the day.

Zandi on Krugman at The 2009 Time 100

Links of Interest (05/01/2009)

Developing countries not doing enough to fend off the global crisis

Very bad idea to impose email tax to bridge the fiscal gap

Promote local development to stimulate domestic economies

Rearming ADB to fight poverty in Asia

GDP growth rate for beginners

Nepal government to revise NDSP

After widespread criticism from the donor community, economists and policy analysts, the Maoists government has agreed to revise Nepal Development Strategy Paper (NDSP), which is a three year development strategy paper to be presented to donors at a donors conference on mid-May.

So, what is to be changed? The paper drafters say they will only revise the language, which is socialist oriented right now.

Despite criticism from various quarters of the targets that the development strategy paper has set for the next three years, the official said the government is not in a mood to revise those targets. He also refuted allegations that the targets are over-ambitious and stressed that many of them are achievable.

I was expecting them to actually revise (rather, down scale) the growth target for the agricultural and nonagricultural sectors. The Maoists government simply do not want to be real and keep on formulating unrealistic targets. Is this a way to dupe the public? Here is a reality check of GDP growth rate in Nepal. I guess when the Maoists fail to deliver these targets, which I think will happen, they will squarely blame the other parties for noncooperation and what not...