Wednesday, June 20, 2012

What Manou and Rama Agree On

That would be the crucial importance of savings for our economy. Read us. Makes kind of sense right? That's what left over after we make our purchases. The Governor's views are currently on display in the media for consumption so no need to repeat them here. What you may have forgotten are how close they are to those that Sithanen held when he became Finance Minister for the second time back in 2005. Here's what he said:

CSO is forecasting a very low savings rate of 19.5 per cent for 2005. Here again, we must be utterly concerned. Firstly, because as a nation we are consuming at a faster rate than we are producing. Secondly, because the savings rate is below the investment rate. This will exert demand pressures on prices and will have an adverse impact on the current account of the balance of payments [emphasis mine].

Which gives us a beautiful benchmark to evaluate the so-called reforms he initiated. I guess.

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