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“We have made it so easier to and global governance architecture world”. “The global context has
invest in India, manufacture in India and deserve serious attention of leaders, changed dramatically: geostrategic
work in India. We have decided to governments, policy makers, fissures have re-emerged on multiple
uproot licence and permit Raj. We are corporates and civil societies around fronts with wide-ranging political,
replacing red tape with red carpet,” he the world. In recent years,India’s economic and social consequences.
added. Modi rued that countries have engagement with the outside world has Realpolitik is no longer just a relic of
failed to work together and to live up become truly and effectively multi- the Cold War. Economic prosperity and
to their environmental pledges. He dimensional covering the political, social cohesion are not one and the
urged them to come out of “our limited economic, people to people, security same. The global commons cannot
narrow confines” and demonstrate and other spheres.” protect or heal itself.
solidarity. “Glaciers are receding, ice SIGNIFICANCE OF WEF “Politically, new and divisive
caps are melting in the Arctic, many The WEF was established in 1971 as a narratives are transforming
islands are sinking… There can be not-for-profit foundation and is governance. Economically, policies are
floods, or there can be drought, we are headquartered in Geneva, Switzerland. being formulated to preserve the
seeing the impact of extreme weather It is independent, impartial and not tied benefits of global integration while
conditions,” he said. “Everyone talks to any special interests. The forum limiting shared obligations such as
about reducing carbon emissions but strives in all its efforts to demonstrate sustainable development, inclusive
there are very few people or countries entrepreneurship in the global public growth and managing the Fourth
who back their words with their interest while upholding the highest Industrial Revolution. Socially,
resources to help developing countries standards of governance. It is an citizens yearn for responsive
to adopt appropriate technology. Very international organisation for public- leadership; yet, a collective purpose
few of them come forward to help,” he private cooperation and strives to remains elusive despite ever-
added. model world-class corporate expanding social networks. All the
Prior to his departure for Davos, governance, where values are as while, the social contract between
Modi said, “I look forward to my first important as rules. Legitimacy, states and their citizens continues to
visit to the World Economic Forum at accountability, transparency and erode,” the WEF website says. HD
Davos, at the invitation of India’s good concerted action are the guiding Deve Gowda was the first Indian
friend and founder of the WEF, Prof principles of the forum. prime minister to address the WEF
Klaus Schwab. The theme of the Forum, This year, WEF is holding its 48th in 1997. Gowda, who was heading a
‘Creating a Shared Future in a Fractured annual meeting. The annual summit coalition government then, had
World’ is both thoughtful and apt. The aims to “rededicate leaders from all spoken about reforms and invited
existing and emerging challenges to walks of life to developing a shared investments.
the contemporary international system narrative to improve the state of the (PTI Feature)

(Contd from page 55) implementation of plan projects, which resolution of twin-balance sheet
were mostly for socio-economic problem. Private sector needed to be
SUGGESTIONS FOR A BETTER development of states. This misuse of nudged to invest.
SCENARIO freedom by the states should perhaps There is no doubt excess capacity
One area of concern is that State needed to be stopped. Also this gives but this can be tackled only if there is
governments are splurging the huge less head room for finance minister demand. Demand will pushed up by
flow of money from the centre with Jaitley to overshoot the fiscal deficit creating rural demand and this can
14th finance commission award of 42 target to step up public expenditure be done by incentivizing, not through
per cent share to states from the particularly when private investment is tax sops, private sector in creation
divisible of tax resources from the not forthcoming. of rural infrastructure like rural roads,
earlier level of around 30 per cent. With Jaitley’s hands tied on the cold storage and rural industries. The
This had made the state finances fiscal front, it is worthwhile for him to economic survey has highlighted the
healthy but many states are using the consider aggressive disinvestment problems and suggested some
money for wasteful expenditure like programme including strategic sale of policy prescriptions and it would be
subsidies, supply of free power and Air India, as recommended by the in the interest of the economy
so on. Economic Survey, to mop up government stuck to fiscal
This sort of fiscal profligacy is not additional resources for public consolidation path, even modest as
good for the economy. Earlier there expenditure to pump-prime the suggested by the Sur vey while
was some check because additional 12 economy. Also tough decisions are boosting growth, which is now on
per cent was devolved to states by needed to deal with unviable PSU recovery mode.
planning commission on banks as part of the effort of the (PTI Feature)
March 2018 Competition Wizard 57