Capitalism and it's fall

My Article got published on MSN . Please click the link below
http://content.msn.co.in/msncontribute/Story.aspx?PageID=2e47c06f-1143-4ce7-900a-8f756a91b94d

It's an eye opener for the east and the emerging economies. The free markets policy of the west has hit the road block and are on the downside. These are the lessons for the emerging economies of the world to take into consideration for their future policy makers.

Free markets are good for the development, competiveness provided they are in correct framework of financial regulations. United states have heavily deregulated the financial markets. Now it is facing a huge financial burden and mess, leading the world economy into the recession.

The world today is so interlinked that Sub-prime mortage crisis started in U.S and parts of European countries has hits the Banks, Stock Markets world wide. It has put whole world into a recession mode.

Now U.S is back into a Socialist model Nationalising the Banks, buying stake into the Banks. This is something india did when it was following a socialist model. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980.The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India.

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

Now the policy maker's have to protect the Banking regulations in india from the lessons learned from the West. India is not in a financial mess like western counter parts, because banking is still not fully deregulated. It's an eye opener for the policy makers to control the Banking regulations.
Banking and Financial markets are key for the economic growth and needs to be well protected.