He is unarguably one of the most brilliant economists of our time. And, most likely, the next Indian to be awarded the Nobel Prize.
Professor Jagdish N Bhagwati in an interaction with Rediff readers answers to queries ranging from the US recession to the possibility of India becoming a superpower.
Jagdish Bhagwati says, This is not the end of globalization. In 1972 when there was a similar food crisis, many countries used export controls. Gobalization continued thereafter. Under WTO rules, export taxes are freely permitted and even export controls can be imposed after using certain procedures jusitfying such controls. The world food crisis would begin to ease once evnironmentalists and governments accept the need to have genticially modified(GM)seeds and we will have to get away from bio-fuels and resort instead to nuclear power.
sunil asked, In view of Oil crisis looming large why not halt the plans of brining formula one racing in India which is nothing more than shameless and criminal wastage of fuel?
Jagdish Bhagwati answers, at 2008-05-09 15:00:02Small gestures are good to have but are no substitutes for substantial policy change. If you are going to bring down carbon emission from coal based fuel we need large scale measures like carbon tax or quantative caps.
irpb asked, Sir with US enonomy down all the currencies are appreciating against it. Will it reverse the current cycle? I mean whether chinese exports become costlier and india will loose its competitive edge over service exports?
Jagdish Bhagwati answers, The US current account deficit was becoming increasingly difficult to support, a decline in the dollor is a normal process by which deficit would come down. It's flip side is that the Chinese surpluses would diminish, as would the surpluses of other countries which have been accumlating reserves in the last few years.
sid asked, Can Mumbai become one of the financial centres of the globe?
Jagdish Bhagwati answers, Yes, we can but as long as we do not have full capital account convertibility we cannot do that. There are problems with full capital account converitibilty which I Professor Krugman and many others have noted. I do not believe that we can still go safely to full convertibility.
riteshn asked, Good Afternoon Sir...Do you think the change in the leadership in the US will bring about a bring diffrence in the world economy
Jagdish Bhagwati answers, The answer depends on who wins the democratic nomination and who wins the presidential election. John McCaim is likely to be continuing the wrong tax and war policies of President Bush. Senator
Obama offers a fresh prospect and a real alternative. As for the Clintons nobody(including themselves)what they may do. We can count them to do is to continuing enjoying chat and Chattwal.