Showing posts with label Trump. Show all posts
Showing posts with label Trump. Show all posts

Friday, February 9, 2024

A summer of discontent

Earlier this week, Prime Minister Narendra Modi claimed that the incumbent ruling dispensation (NDA) shall return to power in 100 days with a much larger majority. The popular political debate is now getting narrowed to the question “whether NDA will return to power with 300/545 seats or 400/545 seats”.

Wednesday, November 16, 2022

Politico-economic ideologies slithering in obscurity

 In my view, we have entered a phase in world history where the politico-economic ideologies, e.g., free market, socialism, communism etc., have lost their theoretical context. In a significantly large number of countries the ruling parties and their leaders are not particular about adhering to their core ideologies. The voter base of the parties also appears to be divided on the basis of current issues rather than the core ideologies.

The sharp rise in socio-economic inequalities across the ‘democratic world’ has made the bulging bottom of the socio-economic pyramid even more attractive from ‘popular vote’ perspectives; and the thinnest ever top of the pyramid the most attractive from election funding and corruption purposes.

We are, therefore, witnessing (i) a larger role of governments in the economies; (ii) deeper influence of large corporates in the matters of economics and geopolitics; and (iii) preference for stronger (egotist; fascist; ultranationalist; hardliner whatever you prefer to call them) leaders who could be hailed as superhero – taxing the rich (mostly middle classes) and providing for the poor. It would be interesting to see what shape this opportunist politico-economic ideology finally acquires to become a legitimate widely acceptable political practice.

The Wikipedia page describing “Political Parties in the United States”, incidentally provides a good historical context to the latest transition in the global politico-economic order. It, inter alia, reads as follows:

“The first President of the United States, George Washington, was not a member of any political party at the time of his election or throughout his tenure as president. Furthermore, he hoped that political parties would not be formed, fearing conflict and stagnation, as outlined in his Farewell Address. The Founders “did not believe in parties as such, scorned those that they were conscious of as historical models, had a keen terror of party spirit and its evil consequences," but Richard Hofstadter wrote, "almost as soon as their national government was in operation, found it necessary to establish parties.”

In the past 150+ years the two dominant parties have changed their ideologies and base of support considerably but kept their names. The Democratic party, that in the aftermath of the Civil War was an agrarian pro-states-rights, anti-civil rights, pro-easy money, anti-tariff, anti-bank, coalition of Jim Crow "Solid South", Western small farmers, along with budding labor unions and Catholic immigrants; has evolved into what is as of 2020, a strongly pro-civil rights party, disproportionately composed of women, LGBT, union members, and urban, educated, younger, non-white voters. Over the same period the Republican Party has gone from being the dominant American "Grand Old Party" of business large and small, skilled craftsmen, clerks, professionals and freed African Americans, based especially in the industrial northeast; to a right-wing/conservative party loyal to Donald Trump, disproportionately composed of family businesses, less educated, older, rural, southern, religious, and white working class voters. Along with this realignment, political and ideological polarization has increased, norms have deteriorated, leading to greater tension and "deadlock" in attempts to pass ideologically controversial bills. (emphasis supplied)”

In the context of Indian politics, we see that all socialist parties have become feudal; BJP that started as a party of middle class upper caste businessmen and Hindu nationalists is winning elections on “social welfare program” agenda; the left of center Congress is striving hard to establish its Hindu credentials and Hardline Hindu Shiv Sena is preaching secularism.

The Indian National Congress which started with the Leninist concept of planned economy driven mainly through public sector; inserted the word “socialist” in the preamble of the Constitution of India”; curtailed free speech by imposing national emergency ended up as a strong votary of disinvestment of public sector; right to information; free trade and larger role for private sector.

BJP gained power on the promise of “less government” and is affording more power to the government; stifling transparency and free speech; has not pursued privatization in the past 8yrs of rule. ``Free ration”, “cheap (free) medicine” and cash subsidies have been its primary campaign slogans in most of the recent elections. The party with difference is now happy to be led by a strong leader who has vowed to destroy all its opponents.

Socialist parties like BSP, SP, RJD, LJP, TMC etc. have mostly become fiefdoms of leading families and appear more feudal in their conduct than anybody else.

The middle class people raised their voice against the rampant corruption of the Congress led UPA government leading to a nationwide movement that resulted in the birth of Aam Aadmi Party. The same party is now seen as a party of the poor financed by corrupt businessmen. Some of its leaders are facing allegations of serious corruption and communal rioting. Most professionals who enthusiastically joined the party have deserted it alleging lack of internal democracy and autocratic ways of the top leadership.

The traditional ideologies like free market, socialism, communism etc. have absolutely no role to play in the Indian politico-economic paradigm. The global transition might also have some reverberation in India also. However, insofar as the latest round of elections is concerned the results would hardly change anything in the broader context. Congress has nothing to lose in these elections; though stakes are high for both AAP and BJP. There could be some setbacks for both.

Thursday, November 5, 2020

POTUS Vs. Sushant Singh Rajput

 My dilemma this morning is whether I should be concerned about the internal politics of the United States of America, as most of my colleagues and financial market participants appear to be! In past 20yrs, we have seen George Bush Jr. (Republican, 8yrs), Barak Obama (Democrat, 8yrs) and Donald Trump (Republican, 4yrs) as presidents of United States. In these 20years, India witnessed Atal Bihari Vajpayee (NDA, 3.5yrs), Manmohan Singh (UPA, 10yrs) and Narendra Modi (BJP, 6.5yrs) as India’s prime minister.

Evidently, a Socialist India (UPA) has lived well with Republican US (Bush); and a free economy supporter India (BJP) has lived well with Democrat (Obama) US. In past two decades, we have achieved progress in our civil nuclear program and we have been able to materially enhance our relationship with key US allies like Japan, Australia, UAE, Saudi Arab, and France; while maintain our strong relationship with Russia and Iran. The relationship with China has been volatile all through these years; though US has supported us in the rough patches of Sino-India relationship.

The issue of VISA, especially H1B VISA, has frequently made news in these past two decades. The volume and profitability from US business of our IT companies has grown manifold in these two decades, despite all this noise. The issue of FDA being particularly strict on Indian pharmaceutical exporters to US has also made to the headlines frequently. The US business of our pharmaceutical industry has also grown multifold in these two decades. The number of USFDA approved facilities in India has grown exponentially in past two decades.

Of course we can debate that the trade could have been much higher; or we did not do as well as we could have due to VISA restrictions, FDA actions etc. But, then we will have to answer some tough questions like lack of ethics and discipline at some of our pharmaceutical manufacturers, protectionist policies of Indian government, misuse of H1B and L1 VISA by some of Indian IT services companies, etc. It is therefore better to go with the empirical evidence rather than dwelling upon some hypothetical outcomes. And the empirical evidence is that Indo-US trade and strategic relations have been widening and deepening consistently. George Bush had famously expressed his “respect” for Atal Bihari Vajpayee, and “Love” for Dr. Manmohan Singh. “Barak” visited India twice (most by any US president) and expressed his reverence to Gandhi, admiration for Prime Minister Modi and commitment to relationship with India. Trump has gone much ahead in showing bromance with Prime Minister Modi and expressing love for “Hindu”. Biden has chosen Kamala Harris as his running mate and has promised favorable H1B regime for Indian IT companies. Regardless of who gets to live in White House for next four years, 2020 election may end up with highest number of Indian American elected as federal and state law makers.

I feel, worrying about the outcome of US elections may be out of habit of worrying too much. I believe, in broader context, the question “Trump” or “Biden” may not be any different from “Suicide” or “Murder” (of SSR).