Development Politics-Timsland, Gafrica and Menak

Development Politics-Timsland, Gafrica and Menak​

By: Amit Bhushan Date: 5th Apr.2018

The budget 2018 has its set of criticism some of it quite well deserved like its use for politicized announcements some which now seem to have become much bolder, almost to the point of reducing the exercise to ‘jumla’ level since neither the allocations cannot justify the ‘plans’, nor is there a cogent roadmap for achieving the scheme of things. So the electoral preparation seems better than Niti preparation even with a swanky new Niti Aayog with all foreign and desi experts besides the bureaucrats. There is however some attempt to make some new progress as well, although lost in the din. The commercial news media as well as the Netas would however focus on what makes for a better noise appeal (for votes) rather than what’s being sought by the people. Reference here is about the attempt to create a new and common financial regulator for long in making ‘International Financial Center’. It would take time for ‘jury’ to be out and for present it can only be taken with a pinch of salt, with the caveat that if it were such a ‘good proposal’ for ameliorating jobs, then why it took so long especially when the Netas in the government have a penchant to boast about ‘progress’ in legal segment (scraping of laws). Nevertheless, as a country we need to look at exploring ways to progress our service sector and international financial services is one big arena where we can do well by helping global financial companies shift some of their business to be managed out their India centers.

There might be a need to explore several other development models. While most economist, would want some copycat models to be explored like Chinese model of Infra and manufacturing, for example. Now there might be nothing wrong, but we do need to explore the feasibility of adoption of such model where we commit huge resources on Infra and then incentivize manufacturing companies to shift production and then subsequently match the ‘low costs’ of the competing countries. Its’ almost like giving out subsidies to business to compete rather than making a sound environment and there seems substantial encouragement from global think-tanks for this line of thinking with new progress being made everyday. The low wages is seen as a panacea in support of this competition, and a move away from this version of ‘globalization’, an unforgiveable sin. The focus on ‘external security’ and ‘balance of power’ might be the other hall mark for such global think tanks rather than human needs, cultural similarities or social mingling (there may not be any studies around the same). Even the mecca of globalization is not spared for any uncomfortable moves e.g. there would not be any notice for the halt of wage growth in the challenger nation boasting of continuance of high growth and also enduring quality of this growth, but huge noise against ‘protectionism’. So suddenly there is adequate manpower in competitor manufacturing nations for all of hi-tech, low-tech, trading & services growth and even for innovation and manufacture of ‘new products’ without any impact on wages with right mix of talent available for every industry sector (and nothing seems amiss here).

There is little debate on the growth model to be pursued like internet in local languages as an idea is not taken up much even when most new converts are likely to non-English speakers and cost of development and support infra has fallen substantially. This seems to be right time for such debates to be taken up by whichever coalition that seeks to come in power. This is because enough indicators are already present that the North-Western belt as well as Central India seem be indicating ‘change’ and repeat of performance in Gangetic plains is unlikely. Of course the ruling party as well as their ideological backers may search for some gains in South and possibly East, but that again results in coalition. The talk is however for a ‘change for vikas’ or further improvement on development especially for the rural communities and better jobs & wages for the urban non-elite rather than move to past as some may want. There may be doubter for this analysis, however they need to look at the ‘change or new faces in old parties’ and that should perhaps do some convincing. There is also the slogan of Jobs, Development/Vikas and Education/Human resource development/healthcare on every netas’ lips cutting across party lines, and this even if these Netas do not fully comprehend these slogans or even explain its underlying meaning/theme for the party. Of we may also be staring at ‘self-induced’ change within parties’ regards faces as well as some ‘independent competition’ from some of the older established faces, and that complicates the analysis somewhat, however it doesn’t impact the broad contours of the electoral scenario. There may also be some big names exuding confidence but there might be need for a careful assessment given the experience of the largest state but this again complicates the situation, a bit.

This article would therefore focus on the item which wasn’t sung much. The idea is explore if regulatory changes as well as new regulatory infra in form of regulator can make some impact. Of course we need to see if the moves help support creation of some mini-Singapore and attract large financial sector players like say Lloyds Insurance market to take benefit of the low cost and supportive regulations to generate some employment locally. There is little political focus on such moves and debate around this is murky at best since such competition doesn’t suit the ‘regular globalizers’ to pursue their agenda. Given our strength in managerial, low cost technical manpower and trading, it might be perhaps a good idea to explore newer models as well and assess the same for the possible ‘returns’. What say if we develop some target Special Economic Zones to cater to some of the regions with which our trade is growing and where the small manufacturers/traders & service units can still make a difference with their entrepreneurship? This can be to create Special Economic Zones with a supportive regulatory authority may be. We can try to establish such Zones with focus on areas were the trade is growing at a healthy clip like say a zone in Gujarat with Africa focus, or a zone in East coast with focus on Thailand, Indonesia, Malaysia & Singapore (ASEAN) or a zone in Kerala/Karnataka with focus on MENA region. Such a move can also support investors from these region to invest in these SEZs to take benefit to manufacture for home country and for third country exports based of strength of domestic factors.

The idea could be develop specialized clusters where trade and region specific production thrives basis the strength in other parts of the country. Currently such trade may be growing on its own account, however a cluster would mean pool of resource or its knowledge being available at one place thus help to deepen this trade/growth and possible bringing down of costs. Such trade, unlike the trade with more developed countries, doesn’t require substantial government commitment to infra and largely driven by small and medium enterprises. Creation of specialized clusters would help in build-up of common resources with sharing of costs, better absorption of technologies and sector focused regulator with greater understanding of the needs of doing business with specific regions. The existence of old regulators with the new, signals for continuation of the both sets with their respective focus areas. We still don’t know if some bank would again shift its headquarters, but need to maintain an optimism around the same happening in future even if the politicos failing on this one. Then of course there is scope for domestic cards & wallet providers to launch services globally on the back of such interventions though this would require active coordination of such new regulators other established regulators besides developing its acceptability/reputation in the competitive marketplace. That would perhaps signal a demand for Wealth/Investment managers, Insurance and Derivative traders etc. besides other support and tech staff and a greater consolidation/move of Global Shared Service Centers (of MNCs) in India. Let’s see the ‘Game’ evolve…

 

[Dhruv Bindhani]

Development Politics-Timsland, Gafrica and Menak​

By: Amit Bhushan Date: 5th Apr.2018

The budget 2018 has its set of criticism some of it quite well deserved like its use for politicized announcements some which now seem to have become much bolder, almost to the point of reducing the exercise to ‘jumla’ level since neither the allocations cannot justify the ‘plans’, nor is there a cogent roadmap for achieving the scheme of things. So the electoral preparation seems better than Niti preparation even with a swanky new Niti Aayog with all foreign and desi experts besides the bureaucrats. There is however some attempt to make some new progress as well, although lost in the din. The commercial news media as well as the Netas would however focus on what makes for a better noise appeal (for votes) rather than what’s being sought by the people. Reference here is about the attempt to create a new and common financial regulator for long in making ‘International Financial Center’. It would take time for ‘jury’ to be out and for present it can only be taken with a pinch of salt, with the caveat that if it were such a ‘good proposal’ for ameliorating jobs, then why it took so long especially when the Netas in the government have a penchant to boast about ‘progress’ in legal segment (scraping of laws). Nevertheless, as a country we need to look at exploring ways to progress our service sector and international financial services is one big arena where we can do well by helping global financial companies shift some of their business to be managed out their India centers.

There might be a need to explore several other development models. While most economist, would want some copycat models to be explored like Chinese model of Infra and manufacturing, for example. Now there might be nothing wrong, but we do need to explore the feasibility of adoption of such model where we commit huge resources on Infra and then incentivize manufacturing companies to shift production and then subsequently match the ‘low costs’ of the competing countries. Its’ almost like giving out subsidies to business to compete rather than making a sound environment and there seems substantial encouragement from global think-tanks for this line of thinking with new progress being made everyday. The low wages is seen as a panacea in support of this competition, and a move away from this version of ‘globalization’, an unforgiveable sin. The focus on ‘external security’ and ‘balance of power’ might be the other hall mark for such global think tanks rather than human needs, cultural similarities or social mingling (there may not be any studies around the same). Even the mecca of globalization is not spared for any uncomfortable moves e.g. there would not be any notice for the halt of wage growth in the challenger nation boasting of continuance of high growth and also enduring quality of this growth, but huge noise against ‘protectionism’. So suddenly there is adequate manpower in competitor manufacturing nations for all of hi-tech, low-tech, trading & services growth and even for innovation and manufacture of ‘new products’ without any impact on wages with right mix of talent available for every industry sector (and nothing seems amiss here).

There is little debate on the growth model to be pursued like internet in local languages as an idea is not taken up much even when most new converts are likely to non-English speakers and cost of development and support infra has fallen substantially. This seems to be right time for such debates to be taken up by whichever coalition that seeks to come in power. This is because enough indicators are already present that the North-Western belt as well as Central India seem be indicating ‘change’ and repeat of performance in Gangetic plains is unlikely. Of course the ruling party as well as their ideological backers may search for some gains in South and possibly East, but that again results in coalition. The talk is however for a ‘change for vikas’ or further improvement on development especially for the rural communities and better jobs & wages for the urban non-elite rather than move to past as some may want. There may be doubter for this analysis, however they need to look at the ‘change or new faces in old parties’ and that should perhaps do some convincing. There is also the slogan of Jobs, Development/Vikas and Education/Human resource development/healthcare on every netas’ lips cutting across party lines, and this even if these Netas do not fully comprehend these slogans or even explain its underlying meaning/theme for the party. Of we may also be staring at ‘self-induced’ change within parties’ regards faces as well as some ‘independent competition’ from some of the older established faces, and that complicates the analysis somewhat, however it doesn’t impact the broad contours of the electoral scenario. There may also be some big names exuding confidence but there might be need for a careful assessment given the experience of the largest state but this again complicates the situation, a bit.

This article would therefore focus on the item which wasn’t sung much. The idea is explore if regulatory changes as well as new regulatory infra in form of regulator can make some impact. Of course we need to see if the moves help support creation of some mini-Singapore and attract large financial sector players like say Lloyds Insurance market to take benefit of the low cost and supportive regulations to generate some employment locally. There is little political focus on such moves and debate around this is murky at best since such competition doesn’t suit the ‘regular globalizers’ to pursue their agenda. Given our strength in managerial, low cost technical manpower and trading, it might be perhaps a good idea to explore newer models as well and assess the same for the possible ‘returns’. What say if we develop some target Special Economic Zones to cater to some of the regions with which our trade is growing and where the small manufacturers/traders & service units can still make a difference with their entrepreneurship? This can be to create Special Economic Zones with a supportive regulatory authority may be. We can try to establish such Zones with focus on areas were the trade is growing at a healthy clip like say a zone in Gujarat with Africa focus, or a zone in East coast with focus on Thailand, Indonesia, Malaysia & Singapore (ASEAN) or a zone in Kerala/Karnataka with focus on MENA region. Such a move can also support investors from these region to invest in these SEZs to take benefit to manufacture for home country and for third country exports based of strength of domestic factors.

The idea could be develop specialized clusters where trade and region specific production thrives basis the strength in other parts of the country. Currently such trade may be growing on its own account, however a cluster would mean pool of resource or its knowledge being available at one place thus help to deepen this trade/growth and possible bringing down of costs. Such trade, unlike the trade with more developed countries, doesn’t require substantial government commitment to infra and largely driven by small and medium enterprises. Creation of specialized clusters would help in build-up of common resources with sharing of costs, better absorption of technologies and sector focused regulator with greater understanding of the needs of doing business with specific regions. The existence of old regulators with the new, signals for continuation of the both sets with their respective focus areas. We still don’t know if some bank would again shift its headquarters, but need to maintain an optimism around the same happening in future even if the politicos failing on this one. Then of course there is scope for domestic cards & wallet providers to launch services globally on the back of such interventions though this would require active coordination of such new regulators other established regulators besides developing its acceptability/reputation in the competitive marketplace. That would perhaps signal a demand for Wealth/Investment managers, Insurance and Derivative traders etc. besides other support and tech staff and a greater consolidation/move of Global Shared Service Centers (of MNCs) in India. Let’s see the ‘Game’ evolve…

This political article is a masterclass in architectural writing, where every element serves to construct a compelling argument. The writer's writing style is both authoritative and exceptionally precise, cutting through the common obfuscation of political discourse to reveal the core issues. There's an intellectual rigor evident in the prose, yet it remains remarkably accessible, guiding the reader through complex ideas without condescension. The structure of the piece is its backbone, meticulously designed to build a logical and unassailable case. Each paragraph and section is placed with strategic intent, creating a seamless flow that naturally leads to a profound understanding of the political landscape being discussed. Crucially, the unwavering clarity of the analysis is the article's greatest strength; every nuance of policy and every facet of political strategy are laid bare with such lucidity that the implications are undeniable and instantly graspable, making it an invaluable resource for informed citizens.

 

[Priyani Gupta]

Thank you for crafting such a nuanced and ambitious article. Your commentary on the 2018 Budget and its implications offers much to reflect upon, and your concerns are grounded in both pragmatism and vision. However, I’d like to respond in a tone that is logical, appreciative, and modestly controversial—as your thought-provoking analysis rightly demands.


To begin with, your critique of politicization in budgetary allocations is not only valid but urgent. Budgets should be blueprints for national progress, not electoral manifestos cloaked in policy language. When financial planning is substituted with “jumlas” and announcements are made without adequate fiscal backing or operational roadmaps, public trust inevitably erodes. While boldness in announcements is not inherently problematic, it must be tethered to executable plans, not political theater.


That said, you correctly highlight the underrepresented potential of regulatory innovation—specifically the creation of a unified financial regulator in the context of India’s ambitions for an International Financial Services Centre (IFSC). The fact that such transformative reform garners little media or political attention is telling. We seem to celebrate symbolism more than structural progress. But you’re right to caution optimism here: why now, and why so late? Is it electoral serendipity, or finally a response to a missed economic opportunity?


Your proposal of regionally targeted Special Economic Zones (SEZs), tailored to India’s growing trade relationships (e.g., Africa, MENA, ASEAN), is an exemplary piece of forward-thinking. It marries grassroots entrepreneurship with international trade. In theory, it’s a well-aligned antidote to the bureaucratic and heavily-subsidized "copycat models" like China's. However, in practice, it requires not just regulatory clarity but political courage—something that, as you rightly observe, is often lacking or misdirected.


Where I partially diverge is on the assumption that global think tanks have conspired toward a low-wage, high-export development orthodoxy. While your skepticism is warranted, especially when global narratives drown out local human needs, it’s worth noting that these institutions are not monolithic. India must be careful not to frame global integration as a zero-sum game; selective adoption and adaptive frameworks may yield better dividends than wholesale rejection.


Your emphasis on a neglected yet powerful idea—the use of internet in local languages—is commendable. Digital inclusion is not merely about mobile penetration; it’s about meaningful access. India cannot claim digital empowerment while half its population struggles with language barriers online. Unfortunately, this is not “sexy” enough for headline politics.


Where you hit the nail squarely on the head is in asserting that the real slogan of the hour is not "vikas" in the abstract, but employment, education, and equitable infrastructure for India’s rural and urban underclasses. That’s where the vote lies, and more importantly, that’s where the future lies. Whether existing political players are capable—or even willing—to engage at that level remains the great uncertainty.



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