After a trip to India last week I thought it only fair to dedicate a post to the worlds largest democracy during a period of political, economic and social change. Following the election of Narendra Modi - leader of the BJP as Prime Minister, Indian citizens were promised ‘Ache Din’. Translation: 'Good Days'. September 2nd marked 100 days of Modi’s prime ministerial leadership. I will be looking at the changes already made, and the proposed plans to deliver ‘Ache Din’.
There are several key events that have marked Modi’s 100 days in office. Firstly and most importantly, the policy of Jan Dhan Yojana[1]. This is a key economic policy at the heart of the BJP’s government and aims to target the problems faced by impoverished Indians living on the margins of society. Through the implementation of Jan Dhan Yojana it will be easier to open bank accounts for the poor. Even the most basic forms of identification are accepted and in addition to this, incentives are being offered to join such as monetary rewards and overdraft facilities. With Jan Dhan Yojana Modi is attempting to achieve two key aims. Firstly he is trying to incorporate those who are ostracized from society as a result of their poor financial status. Secondly, India’s poor have suffered greatly as a result of usurious methods of money lending. The most basic form of credit among many in society is borrowing money from other members of the community and falling victim to paying back extortionate rates of interest – it has been a common cause of familial breakdowns and high rates of suicide in India for many years. Jan Dhan Yojana will aim to put an end to this informal money lending cycle by introducing regulated forms of money lending through the transparency of banks.
The second key event marking Modi’s 100 days in office was the decision to call off talks with Pakistan. Foreign Secretary level talks were called off after Pakistan breached an agreement of the talks. It had been a condition that pre-talks, neither side would communicate with separatists in the northern region of Jammu and Kashmir. Jammu and Kashmir has been a region dominated by conflict and controversy with both India and Pakistan laying claim to the state of Jammu and the city of Kashmir. The region has been tragically hit by the worst monsoon rainfall for 60 years, with death tolls rising on both sides. Despite Indo-Pak talks failing last week the two countries have both committed to providing humanitarian aid and relief where it is needed.
Thirdly, India’s refusal to sign the WTO deal reflects Modi’s determined and measured approach to governance. India refused to agree to the Trade Facilitation Agreement (TFA). India took up issue with the TFA primarily because through India’s Food Security Act, the government has committed to providing very cheap food to those most vulnerable at low costs. Alongside subsidizing the consumers, India subsidizes the producers of food grains. It buys food grains from farmers and subsidizes inputs like electricity and fertilizer[2]. The problem occurs whereby even for subsidizing food India will have to open up its own stockpiling to international monitoring. In addition to this, the TFA would require a 10% cap on subsidies which India would just not be able to achieve. The TFA clearly states that farm subsides cannot be more than 10% of the value of agricultural production. If the cap is breached other members can challenge it and further, sanctions could be imposed.
Although I have only looked at three key events that have marked Modi’s 100 days, they each say a lot about the direction India is heading in. There is no doubt who is in control, and Modi has been careful to set the tone of the legacy he wishes to leave. The policies each appear strong, and convention has been set aside; both by calling off Pakistan talks and by refusing to agree to the WTO deal. Despite this, one thing that Indian governments have all struggled with is alleviating poverty and taking clear cut measures to combat corruption. Sadly, for a country that is supposed to be at the heart of leading the way into the future of global politics and international relations, I witnessed the same reoccurring issues that have prevented India from achieving great things. Time and time again it seems that the basic issues fail Indian leadership. Clean water, toilets in schools, proper infrastructure to deal with monsoon conditions, and increasing levels of bureaucracy are all ailments that apparently are without cure for Indian governments. The challenges that a population of 1.27 billion bring are unquestionable, however I struggle to see how India can propel itself into the next generation of international relations unless it first deals with the basics. India cannot hope to match the rate of growth being set by the Chinese unless it addresses the worrying issues at home. Modi has set the agenda well in his first 100 days, Jan Dhan Yojana appears in theory to be inspired but the real test will be to see how Modi deals with these troubling domestic issues. Can his government set precedent and achieve the basics?
[1] Hindustan Times
[2] http://www.dnaindia.com/money/report-why-is-india-not-agreeing-to-the-wto-trade-facilitation-agreement-2005181
There are several key events that have marked Modi’s 100 days in office. Firstly and most importantly, the policy of Jan Dhan Yojana[1]. This is a key economic policy at the heart of the BJP’s government and aims to target the problems faced by impoverished Indians living on the margins of society. Through the implementation of Jan Dhan Yojana it will be easier to open bank accounts for the poor. Even the most basic forms of identification are accepted and in addition to this, incentives are being offered to join such as monetary rewards and overdraft facilities. With Jan Dhan Yojana Modi is attempting to achieve two key aims. Firstly he is trying to incorporate those who are ostracized from society as a result of their poor financial status. Secondly, India’s poor have suffered greatly as a result of usurious methods of money lending. The most basic form of credit among many in society is borrowing money from other members of the community and falling victim to paying back extortionate rates of interest – it has been a common cause of familial breakdowns and high rates of suicide in India for many years. Jan Dhan Yojana will aim to put an end to this informal money lending cycle by introducing regulated forms of money lending through the transparency of banks.
The second key event marking Modi’s 100 days in office was the decision to call off talks with Pakistan. Foreign Secretary level talks were called off after Pakistan breached an agreement of the talks. It had been a condition that pre-talks, neither side would communicate with separatists in the northern region of Jammu and Kashmir. Jammu and Kashmir has been a region dominated by conflict and controversy with both India and Pakistan laying claim to the state of Jammu and the city of Kashmir. The region has been tragically hit by the worst monsoon rainfall for 60 years, with death tolls rising on both sides. Despite Indo-Pak talks failing last week the two countries have both committed to providing humanitarian aid and relief where it is needed.
Thirdly, India’s refusal to sign the WTO deal reflects Modi’s determined and measured approach to governance. India refused to agree to the Trade Facilitation Agreement (TFA). India took up issue with the TFA primarily because through India’s Food Security Act, the government has committed to providing very cheap food to those most vulnerable at low costs. Alongside subsidizing the consumers, India subsidizes the producers of food grains. It buys food grains from farmers and subsidizes inputs like electricity and fertilizer[2]. The problem occurs whereby even for subsidizing food India will have to open up its own stockpiling to international monitoring. In addition to this, the TFA would require a 10% cap on subsidies which India would just not be able to achieve. The TFA clearly states that farm subsides cannot be more than 10% of the value of agricultural production. If the cap is breached other members can challenge it and further, sanctions could be imposed.
Although I have only looked at three key events that have marked Modi’s 100 days, they each say a lot about the direction India is heading in. There is no doubt who is in control, and Modi has been careful to set the tone of the legacy he wishes to leave. The policies each appear strong, and convention has been set aside; both by calling off Pakistan talks and by refusing to agree to the WTO deal. Despite this, one thing that Indian governments have all struggled with is alleviating poverty and taking clear cut measures to combat corruption. Sadly, for a country that is supposed to be at the heart of leading the way into the future of global politics and international relations, I witnessed the same reoccurring issues that have prevented India from achieving great things. Time and time again it seems that the basic issues fail Indian leadership. Clean water, toilets in schools, proper infrastructure to deal with monsoon conditions, and increasing levels of bureaucracy are all ailments that apparently are without cure for Indian governments. The challenges that a population of 1.27 billion bring are unquestionable, however I struggle to see how India can propel itself into the next generation of international relations unless it first deals with the basics. India cannot hope to match the rate of growth being set by the Chinese unless it addresses the worrying issues at home. Modi has set the agenda well in his first 100 days, Jan Dhan Yojana appears in theory to be inspired but the real test will be to see how Modi deals with these troubling domestic issues. Can his government set precedent and achieve the basics?
[1] Hindustan Times
[2] http://www.dnaindia.com/money/report-why-is-india-not-agreeing-to-the-wto-trade-facilitation-agreement-2005181