Waiting for Private Investment

While the economic reforms appear to have had a positive effect on the trade balance their impact on production, reflected in the figures for industrial growth, is far from evident The budget reflects the government's concern for reviving this segment of the economy. However, the efficacy of the instruments chosen is not assured. The slow growth of capital goods production suggests that this is very likely due to slack investment outlay. The private sector appears to be waiting for recovery. In the absence of a strategy to precipitate private activity the government is going to be left waiting for private investment A simple measure that might have helped a little is recommended in this essay. But even this can only be a palliative. The most elementary analysis of events in the past three years points to the reason for the slow growth of industrial activity. This is the slow growth of capital spending by government.