From the spinning wheel to the fiber optic wire Kelsey Zeitzer.
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Transcript of From the spinning wheel to the fiber optic wire Kelsey Zeitzer.
![Page 1: From the spinning wheel to the fiber optic wire Kelsey Zeitzer.](https://reader035.fdocuments.in/reader035/viewer/2022062717/56649e5d5503460f94b5666a/html5/thumbnails/1.jpg)
From the spinning wheel to the fiber optic wire
Kelsey Zeitzer
![Page 2: From the spinning wheel to the fiber optic wire Kelsey Zeitzer.](https://reader035.fdocuments.in/reader035/viewer/2022062717/56649e5d5503460f94b5666a/html5/thumbnails/2.jpg)
Postcolonial period
• British Raj: 1858 - 1947
• Freedom 1947
• Neocolonialism fear
• Socialism
• Economic self-sufficiency
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Mahatma Gandhi• National Hero
• Anti-industrialized west– Only natural medicines
•Wooden spinning wheel
•Revolt against economic ties to colonial power
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Jawaharlal Nehru
• Socialism
• Self-sufficiency
• Freedom movement = economic isolation
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Laws discouraging
foreign trade
Antimonopoly rules
High income taxes
Laws granting
lavish jobs
Stock Market run by
government
License Raj
Political corruption
Strong Government
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Rajiv Gandhi (1985)• Push reforms = nation’s economic growth doubled
– Exports grew dramatically – Companies began hiring
• Laws to allow more imports / exports • Cut taxes• Reduce number of industries requiring licenses • Raised antimonopoly limits • Problem: short-term borrowing form banks
Jawaharlal Nehru
Indira Nehru Gandhi Feroze Gandhi
Rajiv Gandhi
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Economy at it’s worst • Debt
– Banks cut off India’s borrowings
• Oil prices spiked – Gulf War
• Loss of trade– Collapse of the USSR
• Extreme poverty DEBT
OIL PRICES SPIKED
LOSS OFTRADE
EXTREMEPOVERTY
Mill in poverty
Inflation
Mill Bellow Poverty line
foreign exchange reserves fallen to levels that would pay for 2 weeks worth of oil
OIL
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Change in Power • Rajiv Gandi assassinated• Gandi’s congress party won power• P.V. Narasimha Rao as prime minister• Rao chooses Manmohan Singh as finance minister
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Economic reforms
• Nationwide emergency = economic reform
• IMF bail out if India agreed to reforms
Week of Reform:
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Less government control
Eliminating antimonopoly limits
Abolished license raj
Put stock market back in the hands of companies / investment banks
Lowered income taxes
Allowed for foreign economic interaction
Mutual funds & other investors can buy shares in Indian companies on the Bombay Stock Market
Importing easier
•Import duty free
•Imports at lower costs Companies in certain industries can be 100% owned by foreigners
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Dramatic Effect
Economy grew faster than it had in decades
More jobs
Inflation dropped
Debt paid
Foreign exchange reserves built back up
Economic incentives
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India today • Democracy
• Market economy
• Open trade
• Bangalore
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India Vs. China GrowthChina
-1978- people dissatisfied = seek reform - communism- faster
India-1991- less ready to challenge government-Democracy - slower
“…It will never have speed, but will always have stamina”
“We are the fastest-growing free-market democracy in the world”
“China is winning the sprint and, we are going to win the marathon”