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India: Domestic policy trends and development problems

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The impressive victory scored in last spring’s parliamentary elections in India by Prime Minister Narendra Modi inspired numerous comments about the start of a new stage in the development of one of the largest countries around. However, the spate of dramatic events that have since happened in India has drawn attention to the negative trends in the world’s second most populous nation.

Since its coming to power in May 2014, the current Indian leadership has set itself ambitious and long-term goals aimed at strengthening both the country’s authority in the world, its status as a “serious global player” and creating new opportunities for its accelerated development and economic growth.

“Over the past five years, Modi has sought to regain India’s lost strategic position in South Asia and ensure its recognition as a regional leader according to the country’s de facto role in the region,” said Dattesh Parulekar, vice president of the Forum for Integrated National Security (FINS). In its effort to overcome the growing imbalances in development, the Modi government launched a number of large-scale economic administrative, financial and social reforms. Moreover, authorities still declare their intention to bring the national GDP to $5 trillion by 2024.

Another important goal being pursued by the government is centralization of the state and national consolidation, which it considers vital for the country’s further development and sway, including in international affairs. From the standpoint of domestic policies, it is primarily about encouraging the growth of Hindu national and religious identity. Hence, as many foreign observers believe, the elimination by the Modi government in August 2018 of the special status of Jammu and Kashmir, then the country’s only predominantly Muslim administrative unit. The decision was fully in line with the ultimate goal pursued by the ruling Bharatiya Janata Party (BJP) and the forces supporting it, i.e. the proclamation of India as a Hindu nation. Playing to the sense of ethnic identity of most of the country’s inhabitants already brings political dividends with the BJP winning 37 percent of votes in the last  parliamentary elections, compared with 31 percent it had in the previous legislature. Narendra Modi’s party has also been quickly strengthening its hand in state power structures, including through “defections” from rival parties.

On the other hand, the government’s policy of centralization, above all consolidation of the state and society, is inevitably contributing to the radicalization of the country’s ethnic minorities, primarily Muslims, whose number, according to recent estimates, now exceeds 200 million. Last year saw a spate of Muslim protests. In the summer of 2019, the BJP-led government of the northeastern state of Assam established, under the pretext of combating illegal immigration, a National Register of Citizens. Of the state’s 32 million residents, 2 million, mainly Muslims, were recognized as “non-citizens.” In August 2019, the central government revoked the status of limited autonomy granted to the state of Jammu and Kashmir, with local media reports putting the number of protesters under lockdown at “thousands.”

Finally, a new version of the Indian Citizenship Act, which critics accused of discriminating against Muslims and of being an attempt to undermine the secular underpinnings of the Indian state, was adopted in December, 2019. The new-look Act raised a new wave of protests among the country’s Muslims. As a result, the ethno-religious issue can also become a convenient tool in the hands of Narendra Modi’s opponents.

Finally, with the government boosting the country’s national self-awareness, it becomes almost inevitable that it will take a tougher stand vis-à-vis India’s  traditional opponent, Pakistan, and its strong economic competitor, China. The escalation of military tensions with Pakistan that happened in February 2019, showed how quickly these two traditional foes can actually come to blows. Moreover, the dispute between Beijing and New Delhi over the ownership of the Aksai Chin Plateau, a region on the border with China, Pakistan and India, indirectly enmeshes Beijing in the territorial problems of Kashmir.

According to Indian observers, “unable to stand up to the inevitable large-scale industrial and infrastructure offensive by China through the Himalayas and the sea routes of South Asia, which are the traditional sphere of India’s influence,” New Delhi needs to implement “a counterbalance strategy.” However, despite its undoubted foreign policy and diplomatic achievements, which have contributed to Narendra Modi’s popularity inside the country, India has increasingly been lagging behind China in economic terms. Therefore, fundamental financial and economic problems threaten to become India’s Achilles heel.

The relatively slow pace of India’s socio-economic development remains the main obstacle to strengthening the country’s position in Asia and the world as a whole. The country is subject to all the standard “developmental diseases” that always come with accelerated economic and social transformations. The modernization of Indian society is also hampered by vestiges of traditionalism. Intense discussions continue “regarding the sustainability of the current models of socio-economic development.”

The Economist singles out environmental degradation, serious problems in the field of education and a crisis in public administration as the three main challenges to India’s development.

After he came to power in 2014, Narendra Modi had to tackle multiple problems that had remained unsolved for decades. His government is trying to combine federal programs to help the country’s poorest, who account for up to 22 percent of the country’s population, with initiatives such as “Make-in-India” and “Startup India” designed to stimulate economic and business development. Experts say that “although no special breakthroughs in these areas have yet occurred, the secret of Modi’s popularity is that he at least started these programs.”

They also point to the government’s traditional (and growing) appetite for playing a strong directive role in the economy.

In November 2016, the government took out a hefty 86 percent of all cash out of circulation as part of an experiment to root out corruption only to face a liquidity crisis. Combined with a campaign against “shadow economy,” the measure seriously undermined production and employment, slowed down the pace of economic growth, “and also reduced tax revenues.” A sweeping reform of the national tax system, undertaken in 2017, provoked a months-long “collapse” of the taxation sphere and sparked mass-scale protests.  According to HSBC, India’s GDP growth rate has been steadily declining since mid-2017. According to Bloomberg and the Center for Monitoring Indian Economy (CMIE), the volume of new investment projects in India has also been declining since 2015. The downturn began a year after Modi came to power. Amid the continuous growth of the Asian countries’ role in the global economy, finance and trade, the current slide of the region’s second largest economy appears very contradictory and illogical.

Narendra Modi and his opponents are fiercely arguing whether the current economic downturn is cyclical or structural. Economists are also debating on this issue. “The government apparently believes the recession is cyclical.” Modi’s critics argue that despite “consistent cuts in interest rates” and a budget deficit “of 102 percent in 2019,” the economic slowdown has been going on for several years now, Asia Times wrote.  Mounting problems in the economy even forced New Delhi to withdraw from negotiations on the Comprehensive Regional Economic Partnership (RCEP) after seven years of talks, “literally just a step away from signing the agreement.” According to Indian business publications, RCEP, which was negotiated between ASEAN and the bloc’s six free trade agreement partners, “will now be dominated by China. India’s membership in RCEP would have been tantamount to a trade agreement with China; something Indian industry is unprepared for now.”

Leading Indian economists believe, however, that pulling out of the RCEP agreement will benefit the Indian economy only if the government “immediately” starts to reform the land, labor and capital markets. New Delhi should also focus on encouraging competition, deregulating the economy and facilitating market access if it doesn’t want to see its regional commodity circulation seriously falling behind China’s, and its capital and technology exports, as well as state financing of domestic companies’ overseas projects, remaining significantly inferior to Chinese.

Russia’s chances of playing an important role in the positive transformation of its long-standing strategic partner look pretty good. In geopolitical terms, we are talking about the dialogue between the leaders of Russia, India and China, which resumed in December 2018. All three parties consistently emphasize the partnership nature of their relations as well as their shared interests and goals “in the field of development.”

Economy-wise, the Russian Council on Foreign Affairs believes that Moscow can do a lot in terms of helping its Indian partners on issues ranging “from high technology and defense, to building modern infrastructure and poverty reduction.” This, however, requires a qualitative improvement in the existing model of interaction to bring it fully in line with the realities of 21st century global politics, all the more so amid attempts being made by a number of countries, primarily the US, France and Israel, to sidestep Russia on the Indian track.

Right now, it looks like India could be one of the first major world powers to solve a super-complex dilemma of successfully dovetailing the priorities of security and national development. Despite all the shortfalls of his first term in office, Narendra Modi and his team have managed to even expand their support base among voters from across the country’s political spectrum.  The government now has to prove its ability to kick start the country’s long-term internal development, while simultaneously move toward making India a system forming power in South Asia.

From our partner International Affairs

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South Asia

Pakistan and Germany are keen to Sustain Multifaceted and Mutually beneficial Cooperation

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Pakistan has varied history of relationship and cooperation with other countries in international arena. Despite of proactive foreign policy Pakistan has been struggling to acquire global or regional status as a major power. Now in the age of globalization, the foreign relations between states have become more significant than before. Global and regional organizations, societies, economic zones and countries have network to attract and develop relationship among them. A major goal of Pakistan’s foreign policy is to develop good relations with international community and to handle global and regional issues. Activism of Pakistan‘s foreign policy reflects on the domestic socio-economic development. The national interest of Pakistan also support to regulate inputs from the external atmosphere into internal situation and to strive security and territorial integrity in the region and glob which always remained top concern of Pakistan. As bearing geo-strategic position, Pakistan seeks good relations with regional and global powers like America, China and European Union. Within European Union Germany has emergence as the developed economy in Europe. It is not only playing vital role within European Union but at the global level. Pakistan is also enjoying cordial relations with Germany on the base of common interest and perception on all international issues. Germany is also very keen to see sustainable development in Pakistan and acknowledges that the Pakistan is playing constructive role for regional peace. Germany greatly values Pakistan intense to strengthen multifaceted and mutual beneficial cooperation. Both the countries have been engaged on political, economic and socio-cultural partnership.

In past, East and West Germany had tilted towards forming alliance with India in 1950s but in 1960s, President Ayob Khan‘s visit to West Germany established economic relation between both the countries. Post Pak-India war 1971, East Germany was the first country of the Europe who recognized Bangladesh. During 1990s, Pakistan and Germany established Pakistan German Business Forum and Germany had become the fourth largest trade partner of Pakistan in 2000.  Germany also was ally of Pakistan in the war against terrorism in the north-west part of the country. Since the last few years, both the countries developed trade relations as well as Germany invested in the field of science and technology in Pakistan. On August 24, 2014, Germany built Pakistan Gate in Berlin to provide business and trade facilities to the businessmen of both the countries.

In November 2018, Pakistan offered Germany to join CPEC and to invest in the Special Economic Zone (SEZs). The mutual trade between both the countries enhanced to 3.0 billion euro in 2019.In 2021, Both Pakistan and Germany are celebrating 70th anniversary of establishment of bilateral relationship. Both the countries are planning to undertake several activities in this regard. Last month German Ambassador visited Karachi Chamber of Commerce and industries to call German companies, entrepreneurs and investors to earn from the potential and opportunities which are available in Pakistan and to bring business communities of both the countries more closer as well. Foreign minister of Pakistan has visited to Germany and meeting with business and members of Pakistani community. The foreign Minister held meetings with the leadership of Germany and repeated the desire of expansion of bilateral economic activities and exchange of technology. Both sides also discussed rapidly changing situation of Afghanistan and South Asian region. During the discussion, Pakistani Foreign Minister Shah Mehmood Qureshi and Foreign Minister of Germany Heiko Mass, Pakistan and Germany agreed to review the entire gamut of Pakistan-Germany relationship and tools of further deep bilateral cooperation in the field of trade, investment security and defense, health, education, tourism. The mass of both the countries want to utilize the potential of good relationship but it is observed that both sides have lack of political hierarchy, dedication and sincerity in past. The development and expansion of bilateral relationship lies on the path of peaceful coexistence and serious changes in the socio-economic structure is needed. Peace process with the neighboring countries like Afghanistan and India may attract Germany to invest in CPEC projects and other local project of education, vocational training, dam construction, tourism and economic activities in Pakistan. There is a need to organize a forum for the students and scholars of both the countries could interact and exchange their expertise for academic, economic and technology growth. There is potential of people to people interaction and development of cooperation between Pakistan and Germany. Pakistan may be more benefit from the relationship with Germany if the serious efforts be made on government level.

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Modi’s Illiberal Majoritarian Democracy: a Question Mark on the Future of Indian Minorities

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The word majoritarian is an adjective which relates to or constitutes a majority, majoritarian politics, or majoritarian democracy. It can be defined as a traditional political idea, philosophy or a practice according to which any decision whether political, social, or economic of an organized society should be made by a numerical majority of that society or it can be defined as a traditional political philosophy that stresses that a majority usually branded by religious, language, social class that also includes other recognizing factors of individuals in a society are subject to a level of superiority in a society because of which they have a say in every affair of a society. The concept of majoritarian dispensation in India under Narendra Modi has deep links with four other political philosophies i.e. Populism, Nationalism, Authoritarianism, and Sultanism. Before exploring Narendra Modi’s majoritarian policy of governance in India and its effects on the future of Indian minorities, I will first uncover the link of majoritarianism to political philosophies as mentioned.

A majoritarian leader is actually a populist leader who works hard for the concerns of people that who thinks are being ignored by the established elite groups in a society, and who always present himself as a new man mostly of a modest and plebeian background against old political establishment, in spite of the fact that who is a seasoned political figure, but usually not centre stage. This is exactly what Narendra Modi is, because in his 2014 election campaign, he presented himself as a new man against the Ghandi’s family’s old political system despite the fact he was CM Gujrat at that time. He also presented himself as someone who belongs to a very plebeian background that he had to work in his father’s tea shop when he was a child. Whereas, nationalism is a political idea or a philosophy that promotes and protects the interests of a particular nation, nationalism is the bedrock of most of the populists and NarendraModi is no exception. NarendraModi is a majoritarian national-populist leader who since his childhood has been the member of RSS, and now is a full time pracharak of RSS ideology that stresses that Hindu are the true and only sons of this Indian soil.

Majoritarian national- populist leaders like Narendra Modi are basically authoritarian leaders who reject political pluralism, and this is exactly what Modi is doing in India.Modi  and the BJP has made it clear that no other party should compete with it, or is even needed, as indicative from its slogan of a ‘Congress Mukt Bharat’ (a Congress-free India).Whereas, Sultanism is a form of authoritarian government and according to Max Weber NarendraModi is a new sultan of India who is pushing India towards illiberal democracy by rejecting all kind of civil liberties particularly of Indian Muslim minority.

Modi’s majoritarian policy of governance in India is basically the promotion of majoritarian democracy that asserts Hindus a special and superior status in India because they constitute 80.5% of total Indian population and that this majoritarian policy protests Hindutva ideology  that stresses that Hindus are the only sons of this soil and that strengthen the Hindu community. This majoritarian democracy is a big question mark on India as the world biggest liberal democracy because continuous violence, rejection of civil liberties, and crimes against the minorities that are Muslims, Sikhs, and Christians have been on the increase. About 1.8 million people who are minority communities are tortured in police custody every year. The word murder of minorities has been replaced by the term encounter killings. Torture have increased to such a huge extent that it questions the credibility of the rule of law and criminal justice. Hindu nationalists are revolting all around India especially against Muslims because they are the largest minority in India constituting 13.4% of total population and because Hindus have resentment toward their religion, Christians and Sikhs are no exception to their violence because they too constitute 2.3% and 1.9% of total Indian population.

Unfortunately, India under Narendra Modi is crawling from the world’s biggest liberal democracy to illiberal majoritarian democracy which is promoting and safeguarding only Hindu’s civil rights and liberties and that which is negating minority’s civil liberties and civil rights especially rights and liberties of Muslims of India. One such example of this is the Citizenship Amendment Bill (CAB).Under the act, for the first time in India, religion is a basis for granting citizenship. According to some this citizenship amendment bill by BJP is an intentional act in order to marginalize Muslims from mainstream politics. In addition to this, Muslims are not only being tortured at their religious places for their religious affiliations, but they are also being tortured at their educational institutions which is evident from a video of 15 December 2020, where Delhi police brutally tortured Muslims students of Jamia Millia Islamia university.

Keeping in mind Narendra Modi’s illiberal majoritarian democracy, the future of liberal democracy or pluralistic India appears to be gloomy, where the future of Indian minorities especially Muslims is a big question mark. 

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South Asia

CoVID-19 Control: Can Pakistan Learn From China?

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It has been over a year since the first case of CoVID-19 was confirmed in Pakistan. The tally has reached 721,018 confirmed cases, 15,443 have died and 4,143 critical cases by 11thApril2021. Across many countries, since January 2020, a massive surge of research into CoVID-19 had enabled the scientific and medical community to better understand how to manage and eliminate the virus through public health interventions. Today, we have learned, CoVID-19 causes acute symptoms and death. We have learned, immunity lasts at least eight months and we also have five licensed vaccines. We have learned, the long-term effects of CoVID-19 and the morbidity attached to having this virus. We have learned, virus transmission occurs through droplets and aerosols spread through coughing, sneezing, breathing and speaking. We also have learned, stopping the spread of CoVID-19 requires people to avoid mixing though restrictions on social life. We have learned, the virus can mutate into various strains that can be more transmissible – and we also have understand cat-and-mouse game between vaccine and variants.

To alleviate the destructive effects of CoVID-19 on the economy, Pakistan has sought debt relief of slightly around $2 billion from its G20 creditors. In addition to the G20 countries, China was the largest bilateral creditor with $9 billion, followed by Japan with $5 billion. By early April 2020, when there were just about 2,000 CoVID-19 positive cases in Pakistan, the World Bank approved $200 million package to help Pakistan. Likewise, the International Monetary Fund (IMF) had approved the payout of $1.386 billion as financial support to Pakistan to meet its urgent balance of payment needs halting from the CoVID-19 outbreak. Further, to support Pakistan’s public health response to the CoVID-19 and allow to meet the basic needs of the vulnerable and poor segment of society, the Asian Development Bank (ADB) approved $500 million emergency assistance loan to Pakistan. Similarly, The Islamic Development Bank (IDB) also provided a $650 million financial package to support Pakistan in its efforts against the CoVID-19. All these grants were provided to Government of Pakistan to assist in effective and timely action in response to the spread of the CoVID-19. The objective was to strengthen Pakistan’s public health infrastructure and to alleviate socioeconomic disruptions due to the pandemic. Despite huge grants and substantial endowments, Pakistan’s response to the CoVID-19 has been unsatisfactory. Lack of basic healthcare infrastructure, disease surveillance and management system,  and inconsistent implementation of policies and SOPs resulted in the rapid and incessant spread of third-wave of CoVID-19 throughout the county.

China’s extraordinary organized and preventive risk management approach, established on coalition between government officials, virologists, epidemiologists and public health experts, has demonstrated to be successful in containing and controlling CoVID-19.The experience in China emphasized the significance of listening to science and public health experts during pandemic event. Firstly, China’s response demonstrates the value of national research and public health capability. Huge investment in research and development rendered China much better prepared for CoVID-19. China’s experience indicates the value of investing in national health and research scheme to boost laboratory capacity along with workforce. They are essential to a rapid and effective national response to health emergencies and to national health security. Secondly, a strong foundation of research and development cannot ensure effective control without powerful top-level political dedication to use science to confront the outbreak. Government and leaders must respect science, understand its significance, and act on science-based advice in a way that is best for society. Thirdly, attaining speedy and successful implementation of control measures for CoVID-19 requires extensive community engagement. Public solidarity during the CoVID-19 outbreak in China had been unprecedented. Control measures that could sacrifice personal freedom were accepted readily by the nation.

To be brief, cricket is to South Asia and football is to Europe. In fighting CoVID-19, everyone is equal. Everyone has the identical liability and shares the equal threat. The effective implementation of prevention and control measures in China is a model for Pakistan other parts of world to follow. From the beginning, a science-based, risk-informed and phased approach was taken, with a clear appreciation and enthusiasm. Today, China has restarted its economy, reopened and almost returned to normality. The key of success story is to make everybody responsible, get every single division involved and held executives accountable. These are the most prominent lessons Pakistan could learn from China at national and local levels. After the failure of “Smart-Lockdown” strategy, Pakistan needs to choose a strict strategy, should follow the example of China and continue the lockdown until the number of CoVID-19 infections is brought close to zero; the strategy should then be to maintain infection rates at very low level until vaccination is done. China’s epidemic management provides an important experience from which countries such as Pakistan can learn. This applies in particular to Pakistan, which would risk to lose many of its achievements in case of a severe third wave of the epidemic. Government of Pakistan should involve not only public health experts, virologists and epidemiologists, but also scientist and respect science advice when making any decision that is required to keep the epidemic under control. The rest of the world can also learn from China’s success in bringing outbreak under control.

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