tag:blogger.com,1999:blog-33693245.post4525683337810694161..comments2024-03-04T23:40:58.133+05:30Comments on The Big Picture: What difference can a Modi government make to economy?The Big Picturehttp://www.blogger.com/profile/06018983225756352176noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-33693245.post-9136610590821062342014-04-14T11:59:16.243+05:302014-04-14T11:59:16.243+05:30Interesting...
I will just zoom-out and focus on ...Interesting...<br /><br />I will just zoom-out and focus on theoretical debate of what is better - Centralization or De-centralization. Are they mutually exclusive or is it that both are appropriate in a given set of circumstances. <br /><br />According to me, de-centralization (and we can talk about businesses as well) enables to give a thrust in growth process - it gives a much required momentum. But, it is not so sustainable, as in long run, things start going out of control and operational management cost increases and wipes-off the benefits coming from greater flexibility. Also, one tends to oversee the benefit of Economies of Scale. <br /><br />De-centralization should be accompanied with more stringent regulations, checks & balances. In simple words - "I give you more power but I will also oversee you operations more often and review your performance more rigorously. This will tend to balance between Autonomy & Control'.<br /><br />Coming back to BJP vs Congress manifesto and zooming-in again - India today needs that "Push" or "Thrust" in growth process. And that can rightly come through de-centralization. So marks to BJP's manifesto, if it proposes to focus on making states more resilient. Will Modi be able to deliver - I would say "Yes". We should not be oblivion every time by the fact that because he did XYZ in Gujarat, he will tend to do the 'same' in Central. If that was the case, the manisfesto wouldn't be the way it is today.<br /><br />So best luck to Modi. Anonymousnoreply@blogger.com