January 20, 2017

The New Right

Rajiv Lall, CEO of IDFC Bank, discusses the intellectual case for the new right in India. The economic ideology of the new right is a belief in markets along with a strong state that can create the necessary conditions for job creation and competition. He writes, 


"The New Right are not advocates for a minimalist state. Markets cannot substitute for the state. The state must enable entrepreneurship and private enterprise such that these become the primary engines of job creation. It cannot become the default provider of jobs for all that are disadvantaged; nor can it be allowed to become the fiefdom of a few cronies. The state must have robust regulatory capacity to keep markets competitive. It must be able to intervene for the public good where and when markets fail. It must have an administrative machinery capable of ensuring effective delivery of essential public goods to all citizens. And it must provide an adequate safety net, transparently, and efficiently, to those that fall behind. While subsidies and transfers should remain important instruments for redistribution, the state must surely pursue every opportunity to improve their design — such as by moving to a system of direct cash benefit transfers linked to Aadhaar-seeded bank accounts — in order that they target the deserving, while eliminating waste and corruption."


The new right also emphasises political reform in order to attract the right talent to politics. Finally, the new right stresses upon a shared heritage of Indian society that needs to be used for pressing for progressive social reform. 


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