Export Strategy

LETTERS TO THE EDITOR

H N Ray has done well to stress the importance of port modernisation (January 31). Export is no longer only one of the two lanes of international trade. It has also replaced war as the instrument of bringing home the economic surpluses of other countries. With the advance of technology, land has ceased to be the principal source of wealth. Colonies are no longer necessary and therefore wars to conquer and control alien territory have become obsolete. Nevertheless, collective greed and national egos abound inexorably. And hence the endeavour of many a country to have its exports far exceed its imports.

 

A contemporary economy has to be geared to exports. China lured foreign manufacturers by the size of it domestic market. Ownership was allowed to be cent per cent foreign but all the investment including the entire working capital had to be imported. When domestic demand did not satisfy the manufacturer, he willy nilly resorted to exports. The result was export-oriented industrialisation of the foreigner, by the foreigner but substantially for the Chinese.

This strategy of the yellow giant may or may not suit India. But the appeal is for evolving some national strategy. A continual ding-dong between the swadeshis, the level playing fielders and globalisers will get us nowhere. It is an escapism.