Iceland vs India: Globalization ‘resisters’ fairing better in current economic crisis

A Harvard economist attending the World Economic Form at Davos said that countries like India that have had been comparatively stringent with global capital flows have fared much better in this current era of global turmoil. One Indian businessman praised the strong regulatory approach to financial investment adopted by the Indian state. On the other hand, countries that fully deregulated their markets to entice global capital flows, have suffered the most. Iceland for example. As the article in the NYTs reports it: ‘Iceland was the wonder economy of the world; now it is broke.’ In a noteworthy shift of mind,  IMF economists appear to now be calling for a new global financial regulator. Read the full report in today’s NYT here.