Limited Globalisation Is A Concern For Some Economies, Including India
“The future economic progress requires quality of institutions and that can include a variety of things such as the issues of corruption. It is not hard to see that India needs a lot of institutional progress," said Nobel laureate Paul Krugman
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Limited Globalisation is a concern for some economies, it may be a concern for India at a certain point Nobel laureate Paul Krugman said at News18 Rising India Summit held in New Delhi on 17th February, 2017. The renowned economist further said institutional problems and failures that are taller when you are in poor wage countries start to become bigger obstacles when you are no longer producing competitively priced products.
It is to be mentioned that Paul Robin Krugman is an American economist who is currently a Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for The New York Times. In 2008, Krugman was awarded the Nobel Memorial Prize in Economic Sciences for his contributions to New Trade Theory and New Economic Geography.
“The future economic progress requires quality of institutions and that can include a variety of things such as the issues of corruption. It is not hard to see that India needs a lot of institutional progress and needs to go a long way to get up to the kind of performance that one sees in most advanced countries. That means India is potentially susceptible to much struggling middle-income trap,” revealed Krugman while addressing the occasion.
Krugman also stated, “Two things that may come as a surprise for you (in India) in terms of threats. One is Artificial Intelligence (AI). With increasing globalisation and AI, things like this could be a cause for worry for Indian services. For example, tests are performed on someone in New York, it could be interpreted by someone here (in India) at one third the wage someone gets in the US or it could be interpreted by some expert systems. Secondly, we are still very vulnerable in the advanced economies and this open growth trading system, that is been so crucial to the progress of developing countries, is obviously under threat. There is populism on the rise and political backlash and irrational policies (in the US).”