Two bigwigs in the field of business were in Bangalore on Monday, sharing their insight on the current state of affairs in the world economy and the India-versus-China debate.
American investor and philanthropist George Soros, who was in the city on Monday, has warned that the current economic crisis shadowing Europe could prove more detrimental than the market meltdown that hit the US in 2008.
He said the downturn has affected not only Europe but also the US. “I feel during 2008, the authorities made a blunder by allowing Lehman Bros to go bankrupt. They did not address the underlying imbalances that led to the US crisis. However, the US had the right financial instruments to tide over the turmoil, which Europe does not have. Hence, the matter is more serious this time around,” he said, adding that if at all the European banks fail, the consequences would be worse and be felt worldwide.
He said the growth rate going forward might be negative for the developed world, though it is good for the growing economies.
Soros added that globalisation led to deregulation. “It is difficult to regulate a global economy. Though there has been tightening of regulation of late, the same has not been successful,” he said.
Soros added that globalisation led to deregulation. “It is difficult to regulate a global economy. Though there has been tightening of regulation of late, the same has not been successful,” he said.
Michael Dell, chairman & CEO, Dell Inc, on Monday said Indian government should have high-quality infrastructure and proper tax regime in place to challenge China’s might in the field of manufacturing.