[lbo-talk] Is India Exploited by imperialism?

uvj at vsnl.com uvj at vsnl.com
Thu Jan 22 17:28:44 PST 2004


Alexandre Fenelon wrote:


> Good for you that are achieving high growth rates with so few FDI. Brazil,
> despite this massive inflows of FDI, had the following growth rates from
> 1996-2000 (approximate)
>
> 1996-2,5% 1997-3,6% 1998-0,4% 1999-1% 2000-4,5%

> Far from an economic boom, right? My point is that FDI is more or less like
> external loans. Can provide a boost to your economic development if
properly
> managed, but simply cannot replace local capital accumulation, and results
> in significant extra expenses latter as profits are repatriated.

Yes. I agree totally. This is particularly true for large nation-states like Brazil, China and Russia.


>The worst
> possible way to deal with FDI is selling local firms (private of public)
as
> you get all the disadvantages of FDI withouth anything being added to your
> productive capacity (privatization, btw, was one of the main sources of
FDI
> in Brazil in the mentioned period).

Yes. I agree.

Ulhas



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