Monday, 2 September 2013

Boosting Economy : Reducing CAD

Times of India ( 25 Aug 2013 ) presented following facts about USA prisons :


>    In 2010 , USA prison cost (  $ 80 billion as per Bureau of Justice Statistics )

>    Total Prisoners ...............  1.57 million

>    Average Cost / taxpayer ......................................    $  31,286

>    Ave Cost / prisoner ( in New York / 2010 )................$  60,000

>    Ave Cost / prisoner ( in New York / 2012 )............... $   167,731 ( Rs 115 lakhs / year )

>    Prisoner to Guard Ratio ..............................................2  :  1

>    No of prisoners in NY jails  .......................................12,287

>    Waiting time for case disposal  ...................................95  days


With these kinds of costs , our Commerce Minister should be able to persuade US of A , to " Outsource " their prison system to India , for an annual fee  of $ 40 billion and save 50 % of the cost ! Obama Administration will simply love this idea of cutting back on Government spending !

Here are a few benefits to India :

>   Construction of 10,00 prisons will give a huge boost to construction industry and generate employment for 10 million MNREGA beneficiaries ( creation of permanent capital assets )

>   1.57 million retired Jawans will get employment as prison guards ( personalized service ! )

>   CCTV / Electronic Surveilance industry will get a boost

>   Employment of millions of cooks / clerks / sweepers etc

>   A boom to " Prison-Supplies " industry

>   A huge foreign-exchange earning

>   If FDI in " Prison Industry " is allowed upto 100 % , that would make Foreign Institutional Investors to rush to India !

Clearly a win - win situation for both the countries !     



----  hemen 

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