Martin Wolf and Raghuram Rajan on democracy’s year of peril
Jun 16, 2024
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Martin Wolf and Raghuram Rajan discuss the recent Indian election, analyzing authoritarian styles of government, financial disparities, challenges of financial inequality, and India's economic aspirations. They also reflect on the dangers of authoritarian leaders like Narendra Modi and the future of democracy.
Despite Modi's weak election victory, Indian democracy shows the demand for change and the significance of a strong opposition.
Financial transparency challenges in Indian democracy are highlighted by asymmetric political funding and ruling party's influence in securing financial support.
Deep dives
Raghuram Rajan on the Indian Election Results
Raghuram Rajan shares insights on the recent Indian election results, highlighting the significance of a strong opposition and the electorate's demand for change despite Modi's popularity. He emphasizes the importance of a balance in democracy, reflecting on the impact of asymmetrical election dynamics and voters' dissatisfaction despite the ruling party's influence.
Challenges in Indian Democracy's Financial Landscape
The discussion delves into the financial landscape of Indian democracy, focusing on the asymmetric nature of political funding and the influence of incumbents in securing financial support. The prevalence of undisclosed corporate donations, election bonds, and the misuse of power by the ruling party underscore the challenges faced in maintaining financial transparency and fair competition.
India's Constitutional Weaknesses and Authoritarian Tendencies
The conversation addresses India's constitutional challenges, accentuating historical power centralization and the impact on checks and balances. The misuse of legislation like the Prevention of Money Laundering Act reflects an erosion of institutional independence and the vulnerability to authoritarian practices, showcasing the struggle to balance governmental powers within the democratic framework.
Future Economic Trajectory of India
Exploring India's economic trajectory, the exchange highlights the need for a shift in economic vision towards higher skilled manufacturing and service sectors. Emphasizing the role of human capital development, the discussion underscores the potential for India's growth by leveraging skilled services and enhancing the quality of education and health systems to realize aspirations of a high-income economy by 2047.
Across the world, billions of citizens are being asked to cast their vote in elections taking place in more than 50 countries and in many places, populist, illiberal and far-right parties are either growing in support or consolidating gains they have already made. But India, the world’s biggest democracy, bucked the trend with Narendra Modi’s relatively weak election victory in June. In the third of this five-part series, the FT’s renowned economics commentator, Martin Wolf, and Raghuram Rajan, former governor of the Reserve Bank of India, discuss the Indian election results and inherent weaknesses of authoritarian styles of government.
This episode is presented by Martin Wolf. The producer is Sandra Kanthal. Production help from Sonja Hutson. The executive producer is Manuela Saragosa and the sound engineer is Nigel Appleton. The FT's global head of audio is Cheryl Brumley.