Institute for Business in the Global Context

Where the World of Business Meets the World

Tag: Narendra Modi (page 1 of 2)

Memo to the World Bank: India should be rated even higher in the ease of doing business rankings the next time

Pop the champagne and pass the mithai — for it is, indeed, the epoch of belief, the season of light in the world’s largest democracy. After languishing in the World Bank’s league tables, India is, finally, getting its due: It has been admitted to the top 100 nation club for Ease of Doing Business. Prime Minister Narendra Modi is one giant step closer to fulfilling every Indian’s dream.

It is now time to plot the next big move — to break into the top 80 nations club. With all the hard work already behind us, this next step should be a piece of cake. Here is how.

Read the full piece in The Indian Express

Beware the Trump Effect

This is a tale of two septuagenarians; I hope they never meet. One is the country of India as an independent democratic nation. The other is the American president, a reminder that independent democracy provides no guarantee for its product. When Prime Minister Narendra Modi visited Washington DC, he extended an invitation to the Trump parivaar to visit India. Ivanka Trump accepted right away and recently the details of her visit have been re-confirmed by the official medium of this White House — over a tweet. While Ivanka’s appearance would be harmless enough, it would be best if Daddy chooses to stay away.

Read the full piece from Dean Chakravorti at Brookings

When can we stop using cash?
by Kai Ryssdal & Maria Hollenhorst

Here’s a question: How much cash is in your wallet right now? If you answered not a whole lot, that’s not very surprising. It’s getting ever easier to operate in this economy without carrying cash. You tip your Lyft driver on your phone, you pay your dinner bill with a credit card and you Venmo your friends to split the check. Consider then, the future of cash. Bhaskar Charkravorti, the senior associate dean of international business and finance at The Fletcher School at Tufts, has done a number of studies on the subject, including the “Cost of Cash.”  Marketplace host Kai Ryssdal spoke to him about the future of bills and coins in this changing world. The following is an edited transcript of their conversation.

Listen to the interview with Dean Chakravorti on Marketplace

If Trump, Modi Talk Climate

All this makes for an awkward prelude to Prime Minister Narendra Modi’s visit to Washington — a pity, since the two headstrong heads of state have a lot in common. Diplomacy may demand that the climate kerfuffle be kept off the agenda. In the unlikely event that it does come up, though, here is a cheat sheet for the PM.

Read the full piece from Dean Chakravorti in The Indian Express

Planet Money: On Why India Made Most Of Its Money Worthless

India’s prime minister recently decided to make almost all of the cash in his country worthless. He said it was meant to stop corruption. It turns out, that idea came from a very surprising source.

“In many ways, people in India are actually quite comfortable, you know, going back and forth between science and spirituality. The lines are sometimes quite blurred.”

Listen to the full NPR piece, including comments from Dean Chakravorti

Evaluating India’s Radical Experiment In Eliminating High-Value Currency

Economist Bhaskar Chakravorti says even after all the drama, almost all of the cash in circulation in India made its way back into the banking system.

BHASKAR CHAKRAVORTI: Not all of that was legal cash. It just happened to be the case that India has – is extremely innovative in getting it on constraints.

STACEY VANEK SMITH: But the public loved it. Modi’s approval rating has continued to climb. It’s just amazing to me that people aren’t angry about this. Like, why do you think that people are supportive of this move?

CHAKRAVORTI: Because populism is a strange thing, right?

Listen to the full piece at NPR

The End of Money
by Emily Cashen

Bhaskar Chakravorti, an economics scholar and Executive Director of the Fletcher School’s Institute for Business in the Global Context, said: “The initial argument made by Modi was that these bank notes were demonetised to flush out the underground economy – known as the ‘black economy’ in India – or to flush out the illegal activities carried out by underground groups and terrorist groups.”

Read the full piece at World Finance

Early Lessons from India’s Demonetization Experiment

Did India just pull off a monetary and political miracle?

Consider the sequence of events in its demonetization saga. In November the government made a high-risk, high-stakes economic intervention in the world’s largest democracy, with an objective to reduce corruption. Overnight, 86% of cash in circulation was voided. In a country almost 90% cash reliant, chaos ensued. As I said at the time, it was a case study in poor policy and even poorer execution.

Read the full piece from Dean Chakravorti in Harvard Business Review

A New Abnormal

A little over two months has passed since the Narendra Modi government’s ambush on its own currency. In keeping with the unexpected nature of its launch, the manoeuvre has had some unexpected consequences. There are at least three ways in which the November 8 experiment has upended conventional wisdom.

Read the full piece from Dean Chakravorti in The Indian Express

India’s Botched War on Cash

[In the wake of demonetization], retail and wholesale markets have stalled around the country. Supply chain transactions, real estate deals, and even weddings and funerals have been frozen. Consumers are coping with lines that are frustrating even for Indians used to standing in lines or waiting for basic services. People up and down the income spectrum are dealing with changing cash withdrawal policies and empty ATMs. The nation’s status as the world’s fastest-growing big economy has been severely imperiled and its currency risks being further devalued, a situation made worse by prospects of a strengthening dollar after the U.S. election.

Sounds bad, right? But there is a question that hasn’t been asked: Is there a digital upside to this crisis?

Read the full piece from Dean Chakravorti in the Harvard Business Review

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