Modi's Nationalism Masks a Bad Economy | Canada News Media
Connect with us

Economy

Modi’s Nationalism Masks a Bad Economy

Published

 on

(Bloomberg) — Through some of the coldest nights in a century, the students of New Delhi gathered outside the city’s police headquarters. They chanted anti-government slogans, recited Pakistani resistance poets, and flashed witty posters to make a stand against a new citizenship law that excludes Muslims.

As the confrontations continue across the country, though, they’ve morphed into a wider protest against economic prospects and financial disparities. Violence flared at campuses as the authorities cracked down on the demonstrations that have become Prime Minister Narendra Modi’s biggest test since he won power more than five years ago.

“Their handling of the economy is disastrous,” said Akshay Bajaj, 29, a post-doctoral student who helped organize protests at the Indian Institute of Technology in Kanpur. “There are no jobs, falling growth and rocketing prices for vegetables.”

Like so many of the protests across the world that have defined the last 12 months, the contentious legislation in India was effectively just a tipping point for the under 30s. With tear gas clouds sweeping across Beirut again this week and regular clashes in Hong Kong, the students in New Delhi and Mumbai have added to the sense of global malaise.

The protests were triggered by a new law called the Citizenship Amendment Act that fast-tracks religious minorities from three neighboring countries, except for Muslims. They intensified after police stormed the Jamia Millia Islamia university in December to crush what it said were acts of vandalism.

In solidarity, students spilled out of colleges across the capital and even elite management and technology schools to protest against Modi and his confidante Amit Shah, India’s powerful minister for internal security.

“Nationalism, far from being reversed, made further headway,” billionaire philanthropist George Soros told the World Economic Forum in Davos last week, according to excerpts from his speech. The biggest and “most frightening setback,” he said, was in India.

Protesters say the law undermines India’s Constitution, which treats all religions equally. They fear it will be misused, together with a proposed National Citizens’ Register, to disenfranchise poor Muslims who lack the documents to prove their residency. The government instead should have expended its energy on reversing the worst economic slump in a decade and the highest unemployment rate in 45 years.

“The government doesn’t attempt to answer the grievances of the people, it is instead distracting us with these kind of issues,” said Mihir Jain, 26, a chartered accountant who last month participated in his first ever public protest. “If today we allow them to go ahead with this, we don’t know what will come next.”

Peaceful protests continued last week, with at least two dozen rallies and sit-ins in Mumbai and New Delhi and several others scattered across the country. The Supreme Court on Wednesday deferred a hearing on cases challenging the constitutional validity of the citizenship law. A human chain is planned for Jan. 30, the anniversary of the slaying of Mahatma Gandhi by a Hindu fundamentalist, according to messages being shared on college WhatsApp groups.

Economic anxiety served as the kindling for the protests while the new legislation was the spark, said Milan Vaishnav, director for the South Asia program at the Carnegie Endowment for International Peace. Then as food prices spiked, the demonstrations turned into a focal point for many strands of disenchantment with the government, he said.

Modi’s governing Bharatiya Janata Party says the new law will offer refuge to persecuted minorities from India’s neighboring countries and it won’t impact any Indian citizen. It sees the rebellion as a reflection of how the law is misunderstood.

Party member Baijayant Panda told Bloomberg Television on Thursday that the government has started an outreach program to explain it more clearly. “You’ve had TV bites where they aren’t able to say why exactly they are protesting,” said Panda. “Some think they are protesting against inflation.”

While India’s economy ballooned to about $3 trillion since the nation adopted its constitution in 1950, much of the population remains left behind. Modi swept to power in 2014 promising India’s poor and middle classes he’d restore their ” dignity” after years of inequality.

Yet Swiss bank Credit Suisse Group AG estimated the richest 10% of Indians held 74% of the country’s wealth in 2019, up from 62% in 2012. S. Subramanian, a member of the advisory board of the World Bank’s Commission on Global Poverty, said underlying data from a government report leaked in November indicate that an even larger share of Indians have slipped into poverty. The government says it has concerns about the quality of this database.

About 30% of Indian youth aged 15-29 are not in employment, education or training, according to data from the Organisation for Economic Cooperation and Development, more than double the average. India’s economy is forecast to grow 5% in the year ending March 2020, the slowest pace since 2009, and inflation accelerated last month to the fastest since 2014.

Modi’s administration will present its annual budget on Feb. 1 and analysts say it’s unlikely to have adequate tools to combat the economic slowdown as the deficit swells. Meanwhile the pushback is being led by the very people who were considered a potential new support base for Modi and are now disenchanted with the lurch toward Hindu nationalism.

His campaign in 2019 was fueled by a combination of Hindu nationalism, economic populism and air strikes against arch-rival Pakistan. The new citizenship laws were among Modi’s promises; he won the vote with a massive majority.

Shrishti Parihar, 19, said the legislation acts as a convenient smokescreen for the government. Until recently, she was discussing job security with her friends, but now Modi and Shah talk of nothing but religion, she said.

“The economy is in such bad shape–that should be our main concern,” said Parihar. “Instead, we are talking Hindu-Muslim.”

To contact the authors of this story: Jeanette Rodrigues in Mumbai at jrodrigues26@bloomberg.netArchana Chaudhary in New Delhi at achaudhary2@bloomberg.netRonojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.net

By Jeanette Rodrigues

Source link

Continue Reading

Economy

Canada’s unemployment rate holds steady at 6.5% in October, economy adds 15,000 jobs

Published

 on

 

OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.

Friday’s report also shed some light on the financial health of households.

According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.

That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.

People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.

That compares with just under a quarter of those living in an owned home by a household member.

Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.

That compares with about three in 10 more established immigrants and one in four of people born in Canada.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

Health-care spending expected to outpace economy and reach $372 billion in 2024: CIHI

Published

 on

 

The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.

The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.

CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.

This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.

While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.

Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.

The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.

This report by The Canadian Press was first published Nov. 7, 2024.

Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

Trump’s victory sparks concerns over ripple effect on Canadian economy

Published

 on

 

As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.

Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.

A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.

More than 77 per cent of Canadian exports go to the U.S.

Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.

“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.

“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”

American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.

It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.

“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.

“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”

A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.

Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.

“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.

Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.

With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”

“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.

“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending

Exit mobile version