Indian voters in assertive mood

Indian voters in assertive mood

Shivraj Singh Chouhan (3rd R), chief minister of Madhya Pradesh, greets his Bharatiya Janata Party (BJP) supporters during his swearing-in ceremony in the central Indian city of Bhopal on December 14, 2013.

Saturday, December 21, 2013 – 09:00

The Straits Times

EDITORIAL

The results of the recent Indian state elections are a clear message to the ruling Indian National Congress that it should take the perils of incumbency seriously – when voters get jaded – as it prepares for the general election in May.True, the good showing by the opposition Bharatiya Janata Party (BJP) is tempered by the fact that it occurred in four states – Delhi, Rajasthan, Madhya Pradesh and Chhattisgarh – where the party is strong already.

The BJP might not be able to replicate its successes automatically in India’s southern states, for example. However, what the Congress party has to confront is the bitter truth that it fell far below public expectations of action on corruption and high inflation.

These are national, and not merely state, issues and are likely to feature heavily in choices that the electorate makes next year.

Congress is the party that led India to independence in 1947, has ruled the country for most of the time since then, and reflects the democratic and secular aspirations of a broad swathe of citizens.

All the more, it needs to look deep within itself to see where and how it went wrong. This is pressing because it is being challenged by a BJP rejuvenated by the charismatic leadership of Gujarat Chief Minister Narendra Modi.

His reputation for effective leadership and personal integrity has led many to see him as the face of a new, prosperous and confident India.

However, the BJP, too, cannot afford to take success for granted given the sensational victory of the Aam Aadmi (Common Man) Party in Delhi.

This party, which was set up last year and has set its sights on becoming a national player, could develop into a third force capable of keeping the BJP on its toes should the latter win next year.

Aam Aadmi’s platform against corruption and its stand on transparency and accountability have captured the imagination of Indians who prize clean politics as much as they do democracy.

In the final analysis, what all these and other parties will be judged by is their economic programmes.

Although the latest data speaks of a fragile recovery, the economy is marked by a combination of high inflation and low growth that requires careful policy calibration.

The economy expanded by only an annual 4.8 per cent in the quarter through September, and production at factories, mines and utilities decreased 1.8 per cent year on year in October after having grown by 2 per cent in September.

India needs sustained action, backed by political will, to resume its trajectory as an Asian success story. The party that can deliver the economic goods, and ensure the fruits of growth trickle down to the economically most vulnerable, will no doubt be the one that will appeal more to Indian voters next year.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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