The cumulative money thus freed-up in the economy will provide a strong internal source for further business and other investments. This reduces the need and dependence on external investments, including FDI, whose cost of capital is often higher than that of internal investment sources.
Therefore, by anti-corruption-induced saving of business time and speeding up of supply chains and consequent release of latent capital and its use for further investment, the industrial economy as a whole will not only grow but also become more resilient. Certainly more resilient than the existing economic scenario where the growth is triggered primarily by external investment sources. An economy driven mainly by external investment is bound to become progressively vulnerable to various external events a lot of which are not in the control of our governments and businesses.
Therefore, among the three national parties, AAP offers the only hope to reform the business sector and the economy in the direction of honest and transparent business practice and greater internal generation of wealth for further investment. The effect of this on employment generation is evident. Once such a fundamental change in the value system of the economy is initiated, the specific policies like sector-wise priorities, taxation, subsidies, extent of competition, and estimation and pursuit of external investment will become matters of detail that could fall in place.
In Conclusion
In the final analysis, when one compares the mainstream parties on the integrity of senior leadership and the policy to address concerns of both the underprivileged and the business sections in an honest manner, AAP clearly stands out. The only visible weakness so far has been the ad-hoc way of approaching certain specific problems, as seen in Delhi. However this weakness is likely to go away as its senior leadership is expanding to include more persons from different backgrounds who come with significant credibility in their respective professional spheres as well as at the societal level in general.
Dr Rahul Pandey, Citizen News Service
(The author is a former faculty member of Indian Institute of Technology (IIT) Bombay and Indian Institute of Management (IIM) Lucknow; and is a senior columnist with Citizen News Service. At present he is an entrepreneur and an adjunct professor, with professional interests in operations strategy, supply chain management, mathematical modeling, energy and sustainable development.)
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