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India's Prime Minister Speaks at Sanders

Rao Asks for U.S. Support for reforms

Prime Minister P.V. Narasimha Rao of India called for United States cooperation to facilitate his nation's ongoing economic reforms in a speech to a crowd of more than 1,000 at Sanders Theatre yesterday.

Rao, delivering the annual Jodidi lecture sponsored by the Center for International Affairs, spoke about the major strategies for making India's economy more friendly to domestic and foreign businesses.

Foreign investment in India, the world's largest democracy, has increased from $1 billion to $13 billion since Rao took over in 1991, according to The New York Times.

Since gaining independence in 1947, India's economy has generally been labeled socialist. Rao's reforms, which include privatization of many industries and reduction of tariffs, represent a new economic strategy for India.

In his speech, Rao said cooperation between India and other industrialized nations is needed to ensure the success of these reforms.

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"When populous countries work in tandem, it is the ideal form of a north-south interaction," Rao said. "I have come to extend my hand in partnership and cooperation."

Rao emphasized that he is reforming India with an eye to helping the poor. He said he plans to pump large amounts of money into the lower economic sectors of the population in an attempt to lesson the disparities between India's rich and poor.

"We need to invest massive resources for poorer sections and rural areas to ensure a smooth assimilation [towards a new economy]," he said.

In an attempt to dispel worries that overpopulation could ruin India's chances for development, Rao said predictions that his country's population will overtake China's are wrong. He said population estimates by the World Bank support his contention.

He said India is capable of meeting the needs of its growing population.

"We are making massive investments in agriculture," Rao said. "Our exports have risen over the last three years--there should be no doubts in this area."

"Rural development and empowerment is bound towake the sleeping giant that is rural India," headded.

Rao said technology development will be key tothe success of the reforms. For example, as TheTimes noted recently, many Indian softwarecompanies have already begun to enter the globalarena--offering large numbers of engineers andboasting high rates of productivity.

"We have no alternative but to developtechnology," Rao said.

At the same time, however, Rao said he did notwant machines to replace people who need jobs.

"History does not often present such a decisiveopportunity," Rao said. "I hope and pray thatIndia and the United States will prove themselvesas only they can."

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