Monday, January 13, 2020

Modi's Bad Economic Performance





Indian Prime Minister Modi's Lawless Reign of Terror Narendra Modi relies on private militants allied with his party to crack down on dissent. ...... recent events suggest that the real Gujarat Model that Modi had in mind was something else entirely: a government that looks the other way as private militants violently attack disfavored groups. ...... the growing youth resistance against his "papers, please" citizenship law. ...... On Sunday evening, January 5, 40 to 50 hoodlums, mostly men but also a few women, faces partially wrapped in scarfs, armed with clubs, iron rods, and sledgehammers, stormed the campus. Eyewitness accounts and video footage suggest that several of these people were members of Akhil Bharatiya Vidyarthi Parishad (ABVP), a student union associated with Modi's party. They approached a group of students protesting a sudden, massive fee hike and began thrashing them. They bloodied the student president, Aishe Ghosh, and many others.......... Then, chanting that the students were traitors who deserve to be shot for opposing the administration, the attackers barged into dorm rooms and went on a rampage, taking care to spare rooms that sported ABVP posters. Muslim students were of course fair game. And so was a blind Hindu student, a Sanskrit scholar and a student of Hinduism no less, whose wall sported a picture of Dr. B.R. Ambedkar, India's reformist founding father. (Ambedkar has fallen from grace in pro-Modi circles because he was a vigorous opponent of the caste system and other regressive Hindu practices and because his ideas are fueling the constitutional case against Modi's Hindu nationalism.) ....... JNU's vice-chancellor, who is appointed by the central government, failed to mobilize campus security to stop the mayhem. The Delhi police, which is under the command of the Modi government rather than local authorities, ignored the frantic calls of students for over an hour. A veritable battalion of cops was standing right outside the campus gates, but not a single one went in to stop the attack. The cops even stood by as ambulances were vandalized right in front of them. ......... law enforcement standing by as private militants allied with the ruling party go on a violent spree, criminalizing the victims, spreading disinformation to confuse the public—was Modi's modus operandi in Gujarat. .......... A few weeks ago, cops appeared to vandalize Jamia Millia University, a Muslim institution in New Delhi. Modi's comrade, Yogi Adityanath, the chief minister of Uttar Pradesh, went even further. His police showed up at Aligarh Muslim University and roughed up students protesting Modi's faith-cleansing policies that would strip an untold number of Indian Muslims of citizenship. ........... no one outside of Modi's band of merry brothers is safe in India anymore. All of India is Gujarat now. Dissent is out. Violence is in........ As one poster at a protest noted: "First AMU. Then JNU. Next You."

PM Modi, Amit Shah misled people on CAA, NRC: Sonia Gandhi The nation has watched in horror at the "BJP-orchestrated assault" on JNU after what happened in Jamia, BHU, Allahabad university and AMU

'Challenge PM To Tell Students Why Economy A Basket Case': Rahul Gandhi Congress MP Rahul Gandhi today said he challenges Prime Minister Narendra Modi to go to universities and tell students what he will do to improve the economy. ....... in a blow to opposition unity, six key parties - including the Trinamool Congress, BSP, Shiv Sena, DMK and the Samajwadi Party - are skipping the meet. Arvind Kejriwal's Aam Aadmi Party said it was not even invited for the meeting.

What Microsoft CEO Satya Nadella Said About Amended Citizenship Law Satya Nadella's comment was backed by noted historian Ramachandra Guha, who wished that big names in the Indian IT industry would summon the "courage" to make a similar statement. ....... "I think what is happening is sad... It's just bad....

I would love to see a Bangladeshi immigrant who comes to India and creates the next unicorn in India

or becomes the next CEO of Infosys" ....... A group of over 150 Indian-origin professionals employed with tech giants such as Google, Uber, Amazon and Facebook had earlier written an open letter against the Citizenship Amendment Act and a possible nationwide National Register of Citizens, dubbing both the initiatives as "fascist". ........ "The CAA 2019 combined with the NRC is a deeply anti-Muslim scheme that will create greater statelessness and global disparity for Muslims, growing worse with India's economic decline and climate change" ...... The United Nations Human Rights Office has also termed the amended law as "fundamentally discriminatory", saying that it "undermines" the commitment to equality enshrined in the Indian constitution....... BJP MP Tejasvi Surya has clamed that only "illiterates and puncture-wallahs" are opposed to the amended Citizenship Act.

The attacks on two Delhi universities reveal Modi’s targets: Muslims and their allies the police remained decorously outside the gates of

Jawaharlal Nehru University, India’s most well known, cordoning off the campus as masked goons armed with iron rods and improvised bludgeons ran riot inside.

They broke into a hostel reserved for women students, inflicted head injuries on the president of JNU’s student union, who is a woman, and attacked faculty members who tried to protect them. Some 20 students and teachers were hospitalised. After three hours of thuggery the police entered the university at the vice-chancellor’s belated invitation but made no arrests because the criminals had mysteriously slipped away despite the police cordon. ....... Jamia and JNU are centrally funded universities that have attracted the violent displeasure of Modi’s government for different but related reasons. Taken together, these reasons define the ruling Bharatiya Janata party’s majoritarian project – its reason for being. ......... The NRC is the citizenship act’s evil twin; those who aren’t able to document their claim to being Indian before the tribunals of the NRC will be cast into limbo – but non-Muslims among them can hope to be rescued by the CAA’s amnesty. ...... Jamia was brazenly attacked by the police of this would-be Hindu nation because the government was confident that making a violent example of a Muslim university would play well in public. ........ the assault galvanised Muslims all over the country into spontaneous and sustained resistance to the CAA and NRC ...... the police atrocities in Jamia led to huge demonstrations of solidarity in colleges and universities all over India and sparked a fire of resistance, against the furtive bigotry of the CAA, which continues to burn. .......... The BJP has long believed that its anti-Muslim project has two enemies: Muslims, and those non-Muslims who see Muslims as equal citizens under the constitution. The Delhi police made an example of Jamia as a warning to India’s Muslims. When that didn’t go according to plan, the same police travelled several miles across the city to help make an example of a university that the BJP sees as the institutional incarnation of the secularism that might yet thwart its dreams of a Hindu nation. Since majoritarian parties are constitutionally incapable of empathy, the BJP understands JNU’s brand of secular solidarity as a form of Hindu self-hatred. ......... the BJP’s loathing of the university is obsessive and wildly out of proportion to the threat that its students and teachers pose.



Is the Indian economy headed for a middle-income trap? Once promising economies like Mexico, Brazil, or Turkey could never attain the prosperity of western Europe or Japan, because they fell into what experts call the “middle-income trap.” ....... a sustained economic slowdown following a period of strong growth. ...... “We will be a Brazil, we will be a South Africa” but will never replicate the growth trajectories of China, or South Korea ....... “No country which has been in (a middle-income trap) has been able to come out of it.” ......

India’s economy is facing a structural slowdown.

....... India won’t even become an upper middle-income country (per capita income between $3,896-12,055) by the 2030s ......

Escaping the middle-income trap requires serious reforms such as flexible land and labour laws. The Narendra Modi government, on the other hand, is obsessed with furthering its political agenda

....... The economic reforms that India unleashed in 1991 led to a period of strong growth lifting millions out of poverty and increasing the size of the economy by almost nine times in about 30 years. ....... there was no mass shift from farm to factories. India failed to create a robust manufacturing sector, which today accounts for less than 17% of the economic output. ........ forcing a staggering 81% of the workforce to be employed in the informal sector. ....... The manufacturing sector, though, is most important because it is labour-intensive. ...... implementing

land and labour reforms

to bring capital costs down...... the primary fixes that would ensure India does not fall into the middle-income trap. ....... India’s declining investment rates, high levels of capital concentration in the corporate sector, and lack of good infrastructure access are deeply concerning indicators. ......... long-term structural reforms and provision of better social security to people ...... unequal income distribution is another key driver of the middle-income trap and suggests higher investments in human capital to escape it. ........ India at a lowly 115th out of 157 countries in its Global Human Capital Index rankings ..... “No country has moved to high-income category without taking care of these bottlenecks.”



After years of falling, poverty in India may have risen again since GST and demonetisation Poverty and malnutrition in India may have increased substantially in 2017-18, leading to a fall in consumer spending in the country for the first time in over four decades. ...... The fall in overall consumption (by 3.7%) in 2017-18 is the first since the 1972-73 global oil crisis ........ “In the last five decades at least, there has never been a period that consumption expenditure in real terms has declined. This data clearly shows that poverty levels would have gone up substantially. A back of the envelope calculation would suggest that the percentage of population in poverty would have gone up by at least 10 percentage points.” ........ In 2011-12, the share of India’s population living below the poverty line stood at 22%, much lower than the 30% recorded two years earlier, and 37% recorded in 2004-05 ...... NSO’s current findings suggest these gains may have been nearly offset by 2017-18. ........ consumers were penny-pinching on not only clothing, education, and rent but even food. ....... Rural consumers spent an average of Rs580 ($8) per month on food in 2017-18, down 10% from Rs643 in 2011-12. Urban consumers, on the other hand, spent Rs946 on average on food, nearly the same (Rs943) as in 2011-12. ........ The country’s GDP growth stood at a six-year low of 5% in April-June 2019. ......

these wounds may have been self-inflicted. The survey was conducted between July 2017 and June 2018, coinciding with the rollout of the goods and services tax (GST) and came a few months after demonetisation.

........ In 2017-18, India’s unemployment rate stood at a 45-year high of 6.1%

India’s economic slump is far too deep to be tackled with mere tinkering of interest rates
Modi inherits a troubled economy—all credit goes to him

India Has Worst Economy In 42 Years. Is Prime Minister Modi Watching?

The only real debate about India’s economy is exactly when things were as bad as they are in 2020.

...... Modi rose to power in 2014 promising to supersize the “Gujarat model” that brought him to national prominence. His 14 years running that western state morphed Modi into a folk hero. On his watch, Gujarat often produced growth faster than the national average, fewer regulations, better infrastructure and less corruption. Voters elected Modi to bring those policies to New Delhi. ....... The populist did put some wins on the scoreboard. Modi announced plans to cut bureaucracy and opened sectors like aviation, defense and insurance to increased foreign investment. Passing a national goods-and-services tax was no small feat. Then Modi largely rested on his laurels, shelving deeper reforms amid healthy global growth. ....... India would be growing faster if Modi had acted more boldly to upend vested interests. Modi, for example, punted on the truly epochal reforms India needs to compete and become more inclusive: changes to laws on labor, land and taxation. The government slow-walked efforts to clean up a banking system awash in bad loans. ....... Then there are the self-inflicted wounds. A poorly executed move to take all high-denomination banknotes from circulation to attack graft shoulder-checked the economy. A botched GST rollout confused corporate chieftains and actually depressed tax revenues. ........ Modi the populist rabble-rouser will dominate his second term, not the economic change agent most voters wanted. ....... Will that support be there, though, if Modi’s distraction delivers a “Hindu rate of growth” instead? The reference here is to the low annual growth rates India produced prior to a liberalization push in 1991. .......

India isn’t where Modi boosters thought it would be in 2020.

..... the political equivalent of human nature: it’s always easier to add liquidity than remove barriers to growth and efficiency. Look no further than the Philippines and South Korea these days. Yet all that largess takes the onus off India’s banks, particularly state-owned ones, to write down distressed assets.

Modi's Self-Destructive Behavior

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