THe Blog

October 02, 2015

Economic growth is now winning elections

This Mint article discusses the positive impact of economic growth on electoral outcomes. Cites IDFC institute research on the issue.


"Does good economics not translate into good politics? After all, chief ministers such as Narendra Modi, Shivraj Singh Chouhan and Naveen Patnaik have successfully used the growth plank to get re-elected into office time and again...


The period of 2000-12, unlike the previous decades of 1980-89 and 1990-99, showed significant positive electoral dividend for state governments delivering economic growth. This is a new phenomenon as the experience of the decade 1990-99 was exactly the obverse when the governments delivering higher growth were thrown out...


Sceptics will point out the failure of N. Chandrababu Naidu to get re-elected in 2004 as an obvious counter. The glitzy IT parks of Cyberabad, it was said, stood egregiously in contrast with the suffering farmers in rural hinterlands, thus bringing about the inevitable fall of the “CEO” of Andhra Pradesh. A recent study by the IDFC Institute, however, concluded that Naidu was also voted out by urban voters as much as by rural...


The lesson for political parties is clear. Economic growth matters, even wins them elections. One only hopes that the opposition does not take the wrong lesson of stalling the economic reforms in order to defeat the ruling party and seize power."


Read the full article here.

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