Daniel Gros' article "In Europe, austerity works" (August 29) has sounded warning bells for us. The author has cited examples of several European countries that have faced economic constraints and had to look to external borrowings on stringent terms, hurting their citizens as a result of the austerity that followed. The conditions prevailing in those countries fit to our own country - unsustainable debt-to-GDP ratio, scary current account deficit and precariously poised foreign exchange reserves to service just five months' import requirements. It is not too late for our government to wake up and take credible measures to curb wasteful expenditure, without worrying much about the upcoming elections.
Secondly, political parties and citizens should resort to painful austerity measures voluntarily now, rather than later, such as limiting the use of fuel-driven vehicles to the minimum by greater use of pubic transport or pooling up. Likewise, political parties should curtail the long convoy of vehicles that follow a leader. Having lived and enjoyed the benefits of profligacy, this might be a tall order, but if the warning bells are stubbornly refused to be heard, the country and the public will pay dearly.
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Secondly, political parties and citizens should resort to painful austerity measures voluntarily now, rather than later, such as limiting the use of fuel-driven vehicles to the minimum by greater use of pubic transport or pooling up. Likewise, political parties should curtail the long convoy of vehicles that follow a leader. Having lived and enjoyed the benefits of profligacy, this might be a tall order, but if the warning bells are stubbornly refused to be heard, the country and the public will pay dearly.
S Ravindranath, Coimbatore
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone number