Why Capitalism could fail under Narendra Modi?

Bulk of the rhetoric about Narendra Modi’s becoming the PM of India has centered around the Gujarat Riots and whether he is culpable or not. Or related, the incorporation of Hindu Hardliners into the mainstream under his governance.

His proponents argue that he should be supported because his approach to governance fosters “development”.  By enabling a favorable business environment (getting speedy clearances, shortening the red tape etc. ).  And this they argue is reason enough to give him a change to replicate for the country , the wonders he has done to Gujarat.

Now two articles by very illustrious economists hint at why the development argument for Modi may not play out as expected.

First in this piece Mihir Shah, a member of the planning commission explains why the argument that capitalism initially creates wealth disparity but slowly reduces this disparity is flawed. It is flawed because the conditions for that to happen (honest relationships and transactions between business, focus on state provision of education, healthcare) are not met.

How does Mihir’s piece this apply to Narendra Modi? Fair question. Read  SIDDHARTH VARADARAJAN ‘s excellent piece to find out exactly why? Basically he argues that Modi in pursuing his pro-development capitalist agenda, violates the exact conditions under which capitalism fails to provide inclusive growth. 

Still want to vote for Mr Modi? Of course depends on what your idea of prosperity is.

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When Hindi Heartland Encounters India’s Deep South.

Is the Modi Wave a hype after all? 

April 20, 2014: This is a photo from today’s Hindu from an election rally by BJP (India’s Hindu Nationalist Party) strongman Rajnath Singh in Tamil Nadu

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Responding to Arvind Kejriwal: News Broadcasters Contradict Themselves

Arvind Kejriwal of the Aam Aadmi Party has a knack for hitting the headlines. Usually it is because media love to provide airtime and space to someone who can call others names and Arvind dosen’t mince his words, except when his cough takes over. And true to his style, his recent tirade was against the media themselves .This put the media in a fix.

Although a small “evolved” section of the media , saw nothing extraordinary or alarming in the allegations, the “rank and file” of the media took exception and has decided to react more strongly. In a statement, The News Broadcasters Association (NBA) has issued a warning to the Aam Aadmi Party to exercise restraint.  Here’s an excerpt from an article reporting on this:

NBA reminded Kejriwal and his associates that the electronic media is independent and discharging its responsibilities in a fair, transparent and balanced manner and asked the AAP not to hurl “unsubstantiated and unverified charges” on the electronic media

Curiously the statement goes on to say,

NBA requests the convenor of AAP to “immediately refrain” from making such preposterous allegations failing which NBA members would be forced to reconsider coverage of the activities of  the AAP (underline added).

The suggestion here implies that the decision to cover activities of a political party is based on the party’s favorable view of the news media in the first place. Doesn’t the media contradict itself, it’ s own core principles here? The News Broadcaster Association in other words has justified its own criticism.