Two things happened in 1991:
1. Liberalization [Foundation for competent private sector]
2. Mandal Implementation [Loss of state competence]
Before 1991: Govt run state and colleges were damn good...but then the Social Justice movement killed the competence for good.
1. Liberalization [Foundation for competent private sector]
2. Mandal Implementation [Loss of state competence]
Before 1991: Govt run state and colleges were damn good...but then the Social Justice movement killed the competence for good.
2008-2013: Second big moment in recent history
Shameless crony capitalism
PSU Banks financed corruption
Massive Social Sector spending with incompetent state - Runaway inflation
Things became unaffordable for everyone
Shameless crony capitalism
PSU Banks financed corruption
Massive Social Sector spending with incompetent state - Runaway inflation
Things became unaffordable for everyone
It was a difficult choice when Modi Govt came to power. Now there was a deadly combination to deal with:
Corrupt Private sector
Incompetent State
India is blessed that Modi decided to disrupt status quo
Corrupt Private sector
Incompetent State
India is blessed that Modi decided to disrupt status quo
What Modi did:
Decided to take on the corrupt private sector. Just look at the magnitude of wealth destruction in real estate [corruption bank]
NPA crisis worsened because there was no escape route.
Upside: It's going to fundamentally change the Pvt sector behaviour for good
Decided to take on the corrupt private sector. Just look at the magnitude of wealth destruction in real estate [corruption bank]
NPA crisis worsened because there was no escape route.
Upside: It's going to fundamentally change the Pvt sector behaviour for good
Incompetent State is another issue. So there is an enormous focus on two things:
1. Building Basic Infra
2. Digitization of Services
He has stopped expanding Govt jobs
1. Building Basic Infra
2. Digitization of Services
He has stopped expanding Govt jobs
The economy is in a mess because he has literally put the current system on fire....and sooner than later things will turnaround and whenever the growth starts - the next phase of growth will be more sustainable.
All these Chetan Bhagat type gyaanis are super dangerous because they are so centered and obsessed. Yes, it's important to fix all the deep structural social problems too like illegal immigration and Kashmir while poison is being driven out of the system
There are times in history when you need a super courageous leader who is doing transformational change that will set the country on a sustainable prosperity path. In the life of a nation - these things matter a lot.
