All these days we knew that our political system is built on the foundation of corruption. Now we are realising something else: our economy is just like our politics - it is also built on a foundation of corruption. This is clear from the slowdown in the economy following two major measures against corruption: demonetisation and GST.
Last week the Prime Minister said he will not hurt the country's long-term economic interest for the sake of his short-term political interest. This sounds like a typical political statement. But its corollary is very true: the Prime Minister has hurt his party's short-term political interest for the sake of the country's long-term economic interest. In any democracy this is a bold gamble. In India it is suicide. (Forget the Uttar Pradesh election result: now it's a different ball-game altogether)
The Prime Minister has taken not one, but two big gambles. Most economists say both DeMo and GST will improve the economy over the long term. But 'long term' is an unaffordable luxury for a political party in a democracy. And this is not just any democracy - this is India. So cross your fingers and watch how the economy performs over the next several months. India-Pakistan cricket matches are just for time-pass. This is the real high-stakes edge-of-your-seat nail-biting cliffhanger . . .
PS: If this gamble works, it will be for two reasons:
1) The faith that crores of poor Indians have in the Prime Minister
2) The awesome quality of the alternative option.
Last week the Prime Minister said he will not hurt the country's long-term economic interest for the sake of his short-term political interest. This sounds like a typical political statement. But its corollary is very true: the Prime Minister has hurt his party's short-term political interest for the sake of the country's long-term economic interest. In any democracy this is a bold gamble. In India it is suicide. (Forget the Uttar Pradesh election result: now it's a different ball-game altogether)
The Prime Minister has taken not one, but two big gambles. Most economists say both DeMo and GST will improve the economy over the long term. But 'long term' is an unaffordable luxury for a political party in a democracy. And this is not just any democracy - this is India. So cross your fingers and watch how the economy performs over the next several months. India-Pakistan cricket matches are just for time-pass. This is the real high-stakes edge-of-your-seat nail-biting cliffhanger . . .
PS: If this gamble works, it will be for two reasons:
1) The faith that crores of poor Indians have in the Prime Minister
2) The awesome quality of the alternative option.
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