'Middle-class' demands conflict with Modi policy

Subject Middle-class economic and political aspirations. Significance Prime Minister Narendra Modi's government came to power in 2014 with strong support from middle-class voters, drawn by his development and good governance rhetoric. This promised to move stalled middle-class aspirations forward, after the economy slowed from 2011. Whether Modi can deliver on his promises of a revived economy and middle-class employment opportunities will determine his government's political fortunes in the medium term. A secure middle class able to spend and invest is also key to reviving the economy. Impacts Manufacturing has the greatest job-creation potential, but the government has yet to advance a concrete strategy to achieve this. Growth of middle-class jobs in service industries is likely to become even more regionally skewed. Middle-class voters frustrated with national parties will switch allegiances, scuppering BJP hopes for one-party dominance.

Subject Outlook for the new government. Significance Despite opinion polls before the February 25 election indicating a victory for the incumbent People's National Party (PNP), the opposition Jamaica Labour Party (JLP) won a narrow one-seat victory and JLP leader Andrew Holness was sworn in as prime minister for a second time on March 3. The PNP ran a lacklustre campaign that failed to galvanise its core supporters. In contrast, the JLP offered a positive message of tax cuts and job creation. Impacts Absent rapid economic improvements, public opinion may turn against the new government. Juggling IMF targets and popular demands may prove beyond the JLP's capabilities. The government has only a narrow window of opportunity before the PNP recovers from its surprise defeat.


Subject Implementation of India's new Insolvency and Bankruptcy Code. Significance Shrinking bank credit is hindering India’s ability to finance spending. The Reserve Bank of India (RBI) is relying on the recently instituted Insolvency and Bankruptcy Code (IBC) as the principal instrument to address the problem of stressed assets in the banking system. Impacts The government may accelerate plans to merge stronger and weaker PSBs. Indian corporates may increase their issue of bonds denominated in domestic currency. Prime Minister Narendra Modi will emphasise job creation rather than investment until the next election.


Significance The pandemic has strengthened Prime Minister Viktor Orban’s position in the short term. However, the government has done little on the economic front; a conservative stimulus package raises doubts that a lasting downturn can be averted and is driving medium-term risks to ruling Fidesz’s position. Impacts Tensions within the European People’s Party over Fidesz will deepen, but probably not lead to the party’s exclusion. China’s soft power will be boosted as its role in combating the virus is contrasted with Western indecisiveness. Large multinational manufacturing and services firms could penetrate the economy further but may not be able to drive a quick rebound.


Subject Outlook for the Dutch government. Significance The popularity of Prime Minister Mark Rutte’s four-party government has decreased in recent months amid workers’ protests and controversy over parts of its new climate deal. Having lost its majority in both houses, the government will struggle to pass legislation in order to strengthen its track record ahead of the 2021 election unless it compromises with the opposition, which will likely alienate core supporters. Impacts The priority given to social spending will likely mean the Netherlands will not reach the NATO goal of 2% of GDP defence spending by 2025. Climate legislation is now far more likely to be contested and amended in parliament, as it cannot be passed without opposition parties. Rutte’s departure would be an important loss for the EU, given his strong support for EU cooperation and negotiating skills.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dadang Hartanto ◽  
Juhriyansyah Dalle ◽  
A. Akrim ◽  
Hastin Umi Anisah

Purpose This study aims to investigate the association of perceived accountability, perceived responsiveness and perceived transparency, and public trust in local government. Additionally, mediation of the perceived effectiveness of e-governance was also tested between these relationships. Design/methodology/approach Using a quantitative cross-sectional field survey, primary data was collected at local administration levels from two cities in Indonesia. The final data set of 355 respondents was then analyzed using SmartPls3 and the measurement and structural models were tested. Findings Positive results were obtained for all the hypothesized links (direct and indirect relationships). The study’s findings revealed useful insights for policymakers and researchers regarding the public’s perception of good governance and their expectations from the government, which further lead toward trust in local governments. Practical implications The study concluded that good governance practices develop and enhance the public’s trust in the government, thus provided key policy directions. Originality/value This study contributes to the body of knowledge related to good governance elements and their impact on public trust in the local government via the underlying mechanism of perceived e-governance effectiveness in developing countries in general and particularly the Indonesian context. Moreover, it is a unique study in the good governance domain while considering three good governance elements into a single theoretical framework. Previous studies have explored these elements individually with public trust, so this combined framework advances the body of knowledge. This research’s findings also contributed toward validating good governance theory with e-governance effectiveness and public trust integration in a single comprehensive framework. This research also helped answer the questions arising from past literature about declining public trust trends in local governments.


Significance As in 2020 and 2021, this projected growth will be driven by the ongoing expansion of the oil and gas sector, and related investment and state revenues. These rising revenues will support the government’s ambitious national development plans, which include both increased social and infrastructure spending. Impacts The government will prioritise enhancing the oil and gas investment framework. Investment into joint oil and gas infrastructure with Suriname will benefit the growing oil industry in both countries. The expansionary fiscal policy may lead to a rise in inflation, leading to further calls for wage increases. In the medium term, strong growth in the oil and gas sector could lead to increased climate change activism in the country.


Significance The government vows that freeports will represent “hubs of enterprise which will allow places to carry out business inside a country’s land border but where different customs rules apply”. The creation of freeports are a central component of Prime Minister Boris Johnson’s government to facilitate global trade and promote regional regeneration in the post-Brexit era. Impacts With Brexit, London will have more flexibility regarding the concessions it can offer businesses operating in freeports. The government vows to create freeports in the devolved regions but faces the difficult task of cooperating with the devolved governments. Some poorer regions will miss out on freeports, which could leave them even more deprived and stoke local resentment against London.


Significance He was elected on June 9 with a record majority of nearly 68%, after stepping down as prime minister in January. The MPP now holds all the highest offices: the presidency, the office of the prime minister and the office of the speaker of parliament. Impacts Development plans and government finances will rely on rising copper prices. Despite high vaccination levels, COVID-19 is spreading and calls for more lockdowns are growing; these would threaten economic recovery. Beijing will see Khurelsukh as friendlier than his predecessors, but significant concessions to China are unlikely.


Significance The five-party coalition enters office at a time of intense economic and social uncertainty resulting from the COVID-19 pandemic, rising debt and soaring energy prices. Prime Minister Petr Fiala's greatest challenges involve negotiating between the five coalition partners and restoring respectability to Czech politics. Impacts The new government will be less sceptical about closer EU integration, given the upcoming Czech EU presidency from mid-2022. The government will try to reopen EU Green Deal chapters to renegotiate compensation for highly industrialised member states. Former Prime Minister Andrej Babis may run for president in 2023. Babis will strive to avoid losing parliamentary immunity from prosecution relating to the Stork’s Nest affair and alleged EU subsidy fraud.


Significance The government led by the Slovenian Democratic Party (SDS) is under mounting pressure as Slovenia prepares to take over the European Council presidency. This is due mainly to hostility in parliament and society to Prime Minister Janez Jansa, who promotes a popular but divisive form of national conservatism. Impacts A successful no-confidence vote in the government followed by early elections would complicate Slovenia’s handling of its EU presidency. The fall of the current government and its replacement by the centre-left would improve Slovenia’s relations with the EU and United States. Hungarian Prime Minister Viktor Orban would lose an ally at EU level if Jansa lost office.


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