April 27, 2010 ☼ economic freedom ☼ Economy ☼ Foreign Affairs ☼ geoeconomics ☼ Realism ☼ United States
This is an archived blog post from The Acorn.
There is much in Vikram Pandit’s speech that The Acorn agrees with:
Mr. Pandit argued that the world could create healthy and sustainable economic growth through completely open trade markets, flexible exchange rates, open capital markets and free labor markets.
“If this were the case, these imbalances would be corrected rather quickly, and the result would be a more broadly distributed sustainable growth rate around the world,” Mr. Pandit said, according to the text of his speech. “Let‘s be realistic: This is very unlikely to happen. We must find a robust self-help program for the interim.”
Mr. Pandit asserted that the American economic model is the best way to achieve that growth.
“Many of us of course are keenly aware that the U.S. model is not immune to periodic excesses, or to disheartening setbacks that impact the lives of millions of people,” Mr. Pandit said. “Yet it remains a viable model for creating economic growth and raising living standards.”
The elements to unleash this “magic formula,” in today‘s environment consist of six main themes, Mr. Pandit said. First is fostering talent through the creation of large, well-funded universities. Second is a globally competitive tax and industrial policy. Third is an energy policy that reduces inefficiencies and energy costs with limited environmental impact. Fourth is the formation of a public-private partnership to strengthen the nation’s infrastructure. Fifth is the will to address fiscal and savings imbalances with discipline.
And last is confidence in the financial markets — bringing Mr. Pandit’s speech back to some of the systemic problems that nearly pulled Citigroup down during the financial crisis in 2008. [NYT, emphasis added]Indian CEOs have a lot to learn from Mr Pandit—both in having the right convictions and the courage to express them.
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