4 January 2025 : Indian Express Editorial Analysis
1. Year of the Economy
(Source – Indian Express, Section – The Ideas Page – Page No. – 11)
| Topic: GS2 – International Relations |
| Context |
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A Super Year of Elections: Mixed Outcomes and Instability
- The year 2024 was marked by a flurry of elections, earning the title “super year,” with over 60 countries heading to the polls.
- However, it also became a challenging period for incumbent governments, many of which faced significant setbacks or outright defeats.
- From South Asia to Europe and the Americas, electoral upheavals reshaped political landscapes, often ushering in instability rather than clarity.
Political Upheavals in South Asia
- South Asia witnessed dramatic political developments. In Bangladesh, Sheikh Hasina’s return to power in January was short-lived as student-led protests forced her out by August.
- In neighboring India, Prime Minister Narendra Modi’s BJP lost its parliamentary majority in June but retained power through alliances, highlighting the fragility of political mandates.
- Meanwhile, Sri Lanka saw a paradigm shift as traditional parties were ousted, and the National People’s Power took charge, signaling a revolutionary turn in its politics.
Power Shifts in East Asia and Africa
- East Asia also experienced turbulence, with South Korea’s opposition Democratic Party unseating the ruling People Power Party in April, triggering emergency measures and calls for presidential impeachment by year’s end.
- In Japan, the long-dominant Liberal Democratic Party suffered historic losses, resulting in an unstable coalition government.
- South Africa, too, saw a political shakeup as the African National Congress lost its majority, marking the end of an era dominated by Nelson Mandela’s legacy and forcing the formation of its first coalition government.
Rising Right-Wing Politics in Europe
- Europe saw the ascendance of right-wing politics, most notably in France and Germany. French President Emmanuel Macron faced the political cost of calling snap elections to counter this rise, leaving the nation politically unstable.
- In the UK, the Labour Party returned to power after 14 years, following a historic Conservative defeat.
- The European Parliament elections further underlined the growing influence of right-wing factions across the continent, complicating efforts for political cohesion.
A Polarizing Victory in the US
- The political climax of 2024 unfolded in the United States, where Donald Trump’s Republican Party made a resounding comeback.
- Contrary to poll predictions, Trump secured a decisive victory over Kamala Harris, regaining a popular mandate and a Republican majority in Congress.
- This outcome has sparked debates about its implications for global stability, with many viewing Trump’s return as a potential destabilizing factor in international politics.
India’s Economic Resilience Amid Political Challenges
- While political challenges persisted, India demonstrated resilience in its economic trajectory.
- The Modi government achieved remarkable economic growth rates, with the World Bank projecting a 7% GDP growth for 2025.
- This positions India as the fastest-growing major economy, surpassing China’s 4.7% growth rate.
- Favorable metrics such as a declining debt-to-GDP ratio and a manageable current account deficit underscore India’s economic promise.
The Path to Economic Supremacy
- Despite positive indicators, India faces hurdles like unemployment, stagnant exports, and tepid private sector participation.
- Prime Minister Modi’s emphasis on fostering a conducive socio-political environment, including gestures promoting social harmony, highlights a strategic approach to attract private investment and bolster growth.
- India’s potential to cross the $5 trillion GDP milestone by 2027 is a realistic goal, provided political stability and economic reforms align effectively.
Lessons from Global Experience
- India’s economic aspirations call for sustained growth akin to China’s near 10% annual growth from 1980 to 2010 or Singapore’s stellar performance in the same period.
- However, India’s growth history reveals inconsistencies, rarely surpassing 9% since Independence.
- Global examples emphasize the importance of political stability and social harmony in achieving robust economic outcomes.
Declaring the Economy as a National Priority
- As 2025 begins, there is a compelling case for prioritizing economic growth as a national resolution.
- Setting aside divisive domestic disputes and fostering unity could unlock India’s potential to emerge as an economic powerhouse.
- Such a focus requires cooperation across political, social, and economic domains, reinforcing the idea that economic progress is a shared national endeavor.
- India stands at a crossroads, with an opportunity to harness its momentum for transformative growth.
- The new year offers a chance to declare the economy as the singular national resolve, paving the way for prosperity and stability in the years to come.
| Practice Question: The year 2024 witnessed significant political shifts and instability across the globe. Analyze the impact of these global political developments on international relations and governance, with a focus on India’s strategic positioning. (150 Words /10 marks) |
For more such UPSC related Current Affairs, Check Out: 3 January 2025 : Indian Express Editorial Analysis
