May 20, 2014


China: Biggest Loser In India's 'Modislide' Election (Gordon G. Chang, 5/20/14, Forbes)

Gandhi is not the biggest loser overall, however.  That honor belongs to Beijing, because it's certain that in the coming years direct foreign investment will head to India instead of China.  For a Chinese economy needing outside cash, the redirection will not come at a worse time.

In India, times could not be better for the BJP.  Its win was the most decisive since 1984, when Congress's Rajiv Gandhi won after the assassination of Prime Minister Indira Gandhi, his mother and Rahul's grandmother. 

As a result of the landslide, the BJP's charismatic Narendra Modi formally takes over Wednesday as India's 14th prime minister. 

Modi ran on a platform of fundamental economic reform, promising to do for all of India what he accomplished as chief minister of the western state of Gujarat, where with liberal policies he engineered a boom.  "He provided Gujarat with India's first real free-market economy that led to new infrastructure and job creation," says Subrata Mukherjee, a retired political science professor at Delhi University. 

As the Wall Street Journal's Geeta Anand and Gordon Fairclough report, voters like Congress Party subsidies and giveaways but voted for Modi because they wanted India to become one big Gujarat.  The breath of the BJP victory, therefore, signals a change in the mentality of a country, a clear rejection of the socialism of its founders.

Posted by at May 20, 2014 2:42 PM

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