New York: Viewing the economic crisis as just a “trailer to the real movie”, NRI industrialist S P Hinduja has said the billions in bailouts by governments were more like a stop-gap oxygen therapy, whereas the situation requires investments in emerging economies.
“Giving large sums of money to the very people who caused the problems in the first place seems very unwise, to put it mildly,” said Srichand P Hinduja, Chairman of the diversified Hinduja Group.
In a commentary written for US business publication Forbes ahead of next week’s G-20 leaders meeting in London, he said: “What we are witnessing is the trailer to the real movie.
“The recession could last anywhere between 3-5 years, possibly even longer. The worst pain is, I fear, yet to come.”
“What governments are offering by bailout of financial institutions and industrial manufacturers is temporary oxygen in an attempt to stave off the worst effects of the deepening recession. As nature seeks to correct the imbalance, we have to recognise that both socialism and capitalism have failed,” Hinduja wrote in the article.
In comparison, directing attention to the need of emerging economies would produce immediate results and “enable the developed world to enjoy the benefits of expanding economies to create a new consumer market share among the billions on low incomes and the unemployed throughout the world.”