A New Leader for India; It’s time for Rahul Gandhi to come up with an agenda

A New Leader for India

It’s time for Rahul Gandhi to come up with an agenda.

Updated Jan. 5, 2014 5:43 p.m. ET

Manmohan Singh on Friday confirmed long-running speculation that he will not seek a third term as India’s prime minister after elections due in May. The move shifts the focus to Rahul Gandhi, who will now lead the Congress Party into the polling—and potentially into defeat if he doesn’t start offering some serious ideas.When Mr. Singh came to office nine years ago, he was hailed as an economic reformer on the strength of his record as finance minister during the “big bang” liberalization of 1991. But he suffered for being more a technocrat than a politician. He lacked both the skills to build an electoral consensus behind bold reforms and the mandate such a consensus would have conferred.

Politicians and voters alike knew that real power resided with Congress Party President Sonia Gandhi, Rahul’s mother. Mr. Singh’s tenure has been dominated by Mrs. Gandhi’s agenda, including a dramatic expansion of a welfare state India can’t afford and near-stasis or outright backsliding on most liberalization. The past nine years also have been marred by corruption scandals. Little wonder that despite a brief spurt propelled by broader global growth, the rate of economic growth has slowed and the middle class has become ever more exasperated with New Delhi.

Mr. Gandhi already is the Congress Party’s vice-president, and despite a lackluster stump speech he at least makes a better show of drumming up broad support than Mr. Singh did. Both factors might allow him to rule with more authority than Mr. Singh wielded if he wins in May.

Yet Mr. Gandhi remains a cipher. He bears a powerful name as the scion of the Nehru-Gandhi clan whose great-grandfather, grandmother and father have all been prime ministers. But to the extent he has articulated any platform at all, it resembles his mother’s preference for rural populism over pro-growth reform.

And beyond the economy, he likely would perpetuate the drift that characterizes New Delhi’s political class. Mr. Singh reorganized some security services after the 2008 Mumbai hotel attack but otherwise has been listless in confronting violent Islamism at home and abroad. Mr. Gandhi gives little indication of being any different, and he has taken rhetorical swipes at Israel to pander to Muslim voters.

Frustration with the Congress Party helps explain why Narendra Modi of the opposition Bharatiya Janata Party is shaping up to be the candidate to beat. Mr. Modi is campaigning on a record of economic success and effective governance in his home state of Gujarat. Yet his Hindu nationalist background may make him too unpalatable to too many national voters and it’s not clear he’d have the chops to scale up his Gujarat successes.

Now Mr. Gandhi has to decide whether he’ll offer voters a real reform choice, or whether he’ll fall back on promises of handouts and appeals to nostalgia for his forebears. India can ill afford more of the same, and as voters grow more demanding perhaps neither can Mr. Gandhi.

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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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