Monday, February 17, 2014

Some random questions

Thought for the day
“A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: we did it ourselves.”
-          Lao Tzu (Chinese)
Word for the day
Chirk (v)
To make a shrill, chirping noise.
(Source: Dictionary.com)
Teaser for the day
Instead of studio hopping, should Arvind Kejriwal take one week break and reflect back?

Some random questions

Sunday evening during presentation of our latest report on India’s current political landscape and outlook for 2014 elections to a group of Rotarians, some very interesting questions were raised. I find it worthwhile to share some of these questions with our regular readers.
A large part of the discussion was focused on the economic impact of the outcome of elections.
While most of the participants were enthusiastic about the prospects of a Modi led NDA government, the discussion was mostly focused on “fears” of a Non-Congress Non-BJP government.
Many questions were raised to test a hypothesis – “what would happen to the economy if AAP gets 50+ seats in next Lok Sabha, Rahul Gandhi puts his weight behind it and somehow Kejriwal gets to form the next government”.
Given the radical methods used by AAP during the 49day Delhi experiment, many were worried that this might completely derail the slithering economy. The participant debated whether the economic ideology of AAP is closer to communists or the Swadeshi Jagran Manch (a unit of RSS).
Some not so young participant recalled how the radical Industries Minister George Fernandez had forced IBM and Coca Cola out of India in 1977. The question was could we see BP (from KG basin) exiting, and RIL shifting focus to completely on shale gas in US rather than wasting time on E&P activities in India.
In my view, this is an extremely difficult hypothesis to test at once. I would like to break this in pieces and test each piece separately.
The major pieces could be as follows:
(a)   Modi forms a majority NDA government. (Our base case)
(b)   NDA form a government, not led by Modi, but with a much larger set of constituents. (Good probability)
(c)   A majority government is formed by Non BJP-Non Congress parties. (Less probable)
(d)   A minority Non BJP-Non Congress is formed with outside support of Congress. (Less probable)
(e)   A minority government Non BJP-Non Congress is formed led by an AAP leader. (Least likely)
During the course of this week we shall discuss the economic scenario in each of these scenarios.
We have received tremendous response to our “Mandate 2014: Decisively transformative” (14 February 2014) report. Most readers have found it thought provoking. Many readers have commented that it certainly does not match with the popular discourse and therefore needs to be debated more intensively.
We agree. Let’s do that.
In case you missed it, you can write to investrekk@gmail.com to obtain copy of the said report.

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