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Accomplishment and Progress

Current Policy Proposals

POLICIES RECOMMENDED TO

RESULTS THAT FOLLOWED

U.S. President, January 31, 2005:

Define national economic goal

Restrict short-selling of financial securities

Conserve energy

Contain borrowing

Safe banking

Measure household net worth

Pending.

Energy bill passed, but stringent measures are needed

Federal Reserve research on national saving (March 05).

Pending.

Pending

U.S. Congress, August 2003:

Safe banking

U.S. Congress, March 1, 2005:

Restrict short-selling of financial securities

Federal Reserve testified on safe banking before Congress. Chicago FRB conducted a conference on safe banking. But serious problems are facing the mega mortgage banks, Fannie Mae and Freddie Mac.

Pending. But the U.S. Congress passed a resolution on April 26, 2005 to praise the contribution of graduates of Indian Institutes of Technology to U.S. prosperity.

Prime Minister of India (2001-2005):

Reform system of governance

Maintain social stability

Enhance competition in banking

Make Reserve Bank of India independent

Measure household net worth

Contain borrowing

Reform job quotas

Reform mineral policy

Partial reforms done in 2005. New committee formed.

Little progress in uniform civil codes or development.

Reserve Bank of India does not seem to bother.

Government still controls RBI.

Pending.

Government appears helpless.

Government has introduced new land quotas and job guarantees.

No one seems to care.

Chinese Government, August 14, 2003:

Revalue yuan to bring social and banking stability.

China vested new power on Bank Regulatory Authority to monitor non-performing bank loans on August 24, 2003.

Infused $45 billion in to banking sector in September 2003 and another $25 billion subsequently to recapitalize state banks.

Revalued yuan 2% in July 2005.

Government appears helpless about brewing latent social instability due to the gap between haves and have-nots.