India & US: A Strikingly Similar Paralysis - Page 2
The second point to be observed is that the anaemia of paralysis also causes the government to start kicking a whole bunch of half-filled cans down the road. Its almost as if a government that has been given the mandate to govern by the people has lots its credibility to rule. In India, key differences on policy matters by different ministries (as stated above) have caused the country millions in the form of Foreign Investment. Crucial projects in the pipeline (such as Posco and Vedanta) remain clogged in the pipeline for lack of political will.
So how does one take on so crippling a paralysis of this nature? The 2 known approaches are already being used.
Firstly, Big Business or Business Councils could weigh in some of their urgency on the government. In the US, the iconic conglomerate head, Donald Trump has decided to conduct a republican debate on the 27th of December with all the presidential candidates (only a few have agreed). He has been for the past few months trying to bring his own list of issues to the forefront (one of which has been taking China on head-on). In India last week, the FICCI (a leading Business Council) rapped the government's knuckles hard for rolling back a critical reform it had already introduced on multi-brand retail that would have taken the country a step forward.
The other approach is clearly visible in makeshift tents in the cold winter outside Wall Street as self interest groups decide that working within the system has till date brought no form of change whatsoever to their lives. Next week, post Christmas, the Anna Hazare camp in India will enter its next phase of agitations against what it sees as the Government trying to frame
anti-corruption legislation that is as fierce as a paper tiger.
When policy paralysis begins to hit the front pages of tabloids frequently and becomes the subject of dinner table discussion, one does needs to worry. The impasse does more harm in many cases than good and often yields unintended advantage to opposition parties at the ballot box.
The onus is thus on the incumbent administration to crank the engines of growth (no matter how rusty they may be) and get the economy chugging along once again. When this happens, the smoke from the engines would bring many a welcome sneeze.