Economic Aspect

Apropos your report "The case for shock therapy" (August 2), Prem Shankar Jha has logically explained that subsidies which amount to Rs 1.80,000 crore annually, about 15 per cent of GDP, should be abolished immediately.

It seems, the author has simply seen the economic aspect as taught in schools and colleges. It is not only India but virtually all democracies of the world which are ruled by political-economy which is not taught. It changes frequently to the need of the ruling political parties.

For instance, the use of chemical fertilisers make the land barren and reduce output, resulting in high cost of produce. These poisoned foodgrains causes diseases and so there are subsidised medicines etc. These are the political advantages of subsidies -- if these are not there, what will be the fate of politicians who get into power only by offering such sops to the poor?