It is sad to see that some economists are ridiculing the farm loan waver. Some go to the extend 'advising' the middle class not to repay there mortgage or loan, and to hope that one day it would be waved!
There are many problems with the present loan waver announcement. But what it does is, it acknowledges a serious problem in the farm sector (it took nearly a decade and lives of over 100,000 lives for that); that governments cannot eternally play to the tunes of the lending agencies and that of the corporations and need to face the realities of rural India; that, democracy is (still) good - it makes every Chidambaram to seek votes once in five years!
Inherent are some problems with the announcement that it may not really wipe the tears of all farmers as it is made to believe. Fundamental among them seem to be the absence of any measures to eliminate those factors which lead the farmers to take loans, leading them to a debt trap and eventually suicides. Unless those factors are addressed, the circumstances for the farmers to take loans would continue to be there, repeating what has been happening all these years, and even as I write this blog!
Then, after years, in an election year, loan waver package would be announced; and economists would continue to ridicule it!!
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