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Saturday, 25 February 2023
Tuesday, 21 February 2023
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Is India Copying Xi Jin Ping's Wolf Warrior Tactics?
Aakash Joshi in The Indian Express
For those familiar with American action films, there was nothing that remarkable — artistically and even as a propaganda device — about Wolf Warrior (2015) and its sequel, Wolf Warrior 2 (2017). But the impact of the films on foreign policy — or at least how it is discussed — has moved from China to the West and now, in a somewhat disturbing reflection of the former, to India.
In the Chinese blockbusters, Wu Jing, a sniper — kicked out of the PLA for being a moral renegade, a sort of John McClane and John Rambo combination — takes on smugglers, kidnappers and mercenaries with a Chinese special forces unit.
The films are not seminal for their slick action or predictable and plodding plot. In the contemporary foreign policy lexicon, “Wolf Warrior diplomacy” is the belligerent language used by Chinese diplomats since Xi Jinping’s authoritarian consolidation and centralisation of power. Any attack or criticism of China is met with strong words, often pointing out the history of western hypocrisy and imperialism. While extolling China’s foreign policy and political economy, the howl of the wolf warrior also tries to paint any questioning of China as interference in its internal affairs, an attack on its civilisational history and a plot by foreign powers unable to stomach the rise of a rival in Asia. Most often (and easily accessible to a lay reader), this insecurity is on display in the editorials and articles in state and party-controlled media such as Global Times and China Daily, which target not only foreign governments but also media houses and individuals for adverse comments and coverage.
Sample the following headlines from Global Times: “Facing Omicron, CNN shows sour grapes mentality as China’s Covid-19 control measures justified” (November 30, 2021); “BBC should show evidence [on Xinjiang human rights abuses] or admit to being a rumourmonger”; “’Defeating China’ is wishful thinking from Soros” (October 6, 2019).
Change the dates and a few words in the headlines for context, and they could be mistaken for recent statements by some of the most prominent members of the Indian government and spokespersons of the ruling party.
Take, for example, the Income Tax department’s “survey” of the BBC offices in Delhi and Mumbai. There are likely people who believe that the searches of journalists’ computers and phones were about irregularities in taxes and not a recent documentary. Even though India: The Modi Question wasn’t released in India, takedown orders were issued to social media companies.
As the offices were searched, the BBC was accused – with the BJP’s symbol proudly displayed in the back – by a party spokesperson of being “corrupt” and supporting “anti-national” forces. It is rare, even in an age of ED summons, IT surveys and NIA investigations, for the ruling party or government to comment on an ongoing investigation beyond the usual “let the law take its course” or “no one is above the Constitution and penal code” sort of statements. The BBC, remember, is the British state broadcaster, funded directly by the people and not the government per se. It is certainly not above bias. Equally, though, it is not a threat to the world’s largest and arguably most diverse democracy. The last time it was seen as such was during the Emergency: Ironically, the fact that Indira Gandhi’s government banned the BBC was used as a justification by the ruling party this time.
On the heels of the BBC controversy came the comments by George Soros, the hedge-fund billionaire-turned-liberal philanthropist. Speaking at the Munich Security Conference last week, the 92-year-old Soros brought up the Adani-Hindenburg controversy and stated that the report and its aftermath would “significantly weaken Modi’s stranglehold on India’s federal government and open the door to push for much-needed institutional reforms. I may be naïve, but I expect a democratic revival in India.”
The reaction from the government was swift and strong. Union Minister of Women and Child Development, Smriti Irani, said, “A foreign power at the centre of which is a man named George Soros has announced that he will hurt India’s democratic structure. He has announced that Prime Minister Narendra Modi will be his main target.”
External Affairs Minister S Jaishankar stated, “I could take the view that the individual in question, Mr Soros, is an old, rich, opinionated person, sitting in New York, who still thinks that his views should determine how the entire world works. Now if I could stop at old, rich and opinionated, I would put it away. But he is old, rich, opinionated and dangerous.”
Soros and his Open Society Foundations, across countries, do arguably engage in political work. Yet, the public and personal attack — from some of the most prominent and articulate faces of the government — against the perceived “foreign hand” indicates a prickliness about criticism that is reminiscent of Wolf Warriors rather than the secure, understated confidence of seasoned diplomats and leaders. It was seen earlier when Jaishankar refused to meet with a US Congressional Committee in 2019 because Congresswoman Pramila Jayapal had introduced a resolution about Kashmir in the US legislature.
Unfortunately, this mode of engagement with foreign actors — or journalists and media houses — is of a piece with the image of New India, just as it is a hallmark of Xi’s China. The latter, under its current leader, has abandoned Deng Xiaoping’s dictum of “hide your strength, bide your time”. Xi’s China is confident about its military prowess and economic might and believes that it is now its turn to lead the world. The insecurity about criticism and the strident diplomatic language is about saying to the international community that China now sits at the head of the table and that a “rules-based order” that doesn’t account for Beijing’s exceptionalism — as it does for the US — will not stand.
India is far behind China in economic terms. Yet, the size of its market and a growing economy does give it bargaining power: There was little to no official criticism of the actions of the BJP from Western capitals. Strategically, the West and Japan see India as an important bulwark against an aggressive and expansionist China. All of this, perhaps, makes it easy to deploy our very own Wolf Warriors without consequences.
Just two factors to consider: First, at least part of the reason the West and others are enamoured with India is its democratic credentials and openness. The Chinese model of engaging in a constant battle of narratives about every little documentary or stray comment may do more harm than good in this regard.
Second, and perhaps more importantly, the decency and openness to criticism of a confident society and polity should not be a matter of weakness or compulsion. That a ruling party acts as though criticism is an attack on the country is disturbing. After all, the difference between authoritarianism and democracy is about more than just GDP numbers and what each can get away with as a result. Or at least it should be.
For those familiar with American action films, there was nothing that remarkable — artistically and even as a propaganda device — about Wolf Warrior (2015) and its sequel, Wolf Warrior 2 (2017). But the impact of the films on foreign policy — or at least how it is discussed — has moved from China to the West and now, in a somewhat disturbing reflection of the former, to India.
In the Chinese blockbusters, Wu Jing, a sniper — kicked out of the PLA for being a moral renegade, a sort of John McClane and John Rambo combination — takes on smugglers, kidnappers and mercenaries with a Chinese special forces unit.
The films are not seminal for their slick action or predictable and plodding plot. In the contemporary foreign policy lexicon, “Wolf Warrior diplomacy” is the belligerent language used by Chinese diplomats since Xi Jinping’s authoritarian consolidation and centralisation of power. Any attack or criticism of China is met with strong words, often pointing out the history of western hypocrisy and imperialism. While extolling China’s foreign policy and political economy, the howl of the wolf warrior also tries to paint any questioning of China as interference in its internal affairs, an attack on its civilisational history and a plot by foreign powers unable to stomach the rise of a rival in Asia. Most often (and easily accessible to a lay reader), this insecurity is on display in the editorials and articles in state and party-controlled media such as Global Times and China Daily, which target not only foreign governments but also media houses and individuals for adverse comments and coverage.
Sample the following headlines from Global Times: “Facing Omicron, CNN shows sour grapes mentality as China’s Covid-19 control measures justified” (November 30, 2021); “BBC should show evidence [on Xinjiang human rights abuses] or admit to being a rumourmonger”; “’Defeating China’ is wishful thinking from Soros” (October 6, 2019).
Change the dates and a few words in the headlines for context, and they could be mistaken for recent statements by some of the most prominent members of the Indian government and spokespersons of the ruling party.
Take, for example, the Income Tax department’s “survey” of the BBC offices in Delhi and Mumbai. There are likely people who believe that the searches of journalists’ computers and phones were about irregularities in taxes and not a recent documentary. Even though India: The Modi Question wasn’t released in India, takedown orders were issued to social media companies.
As the offices were searched, the BBC was accused – with the BJP’s symbol proudly displayed in the back – by a party spokesperson of being “corrupt” and supporting “anti-national” forces. It is rare, even in an age of ED summons, IT surveys and NIA investigations, for the ruling party or government to comment on an ongoing investigation beyond the usual “let the law take its course” or “no one is above the Constitution and penal code” sort of statements. The BBC, remember, is the British state broadcaster, funded directly by the people and not the government per se. It is certainly not above bias. Equally, though, it is not a threat to the world’s largest and arguably most diverse democracy. The last time it was seen as such was during the Emergency: Ironically, the fact that Indira Gandhi’s government banned the BBC was used as a justification by the ruling party this time.
On the heels of the BBC controversy came the comments by George Soros, the hedge-fund billionaire-turned-liberal philanthropist. Speaking at the Munich Security Conference last week, the 92-year-old Soros brought up the Adani-Hindenburg controversy and stated that the report and its aftermath would “significantly weaken Modi’s stranglehold on India’s federal government and open the door to push for much-needed institutional reforms. I may be naïve, but I expect a democratic revival in India.”
The reaction from the government was swift and strong. Union Minister of Women and Child Development, Smriti Irani, said, “A foreign power at the centre of which is a man named George Soros has announced that he will hurt India’s democratic structure. He has announced that Prime Minister Narendra Modi will be his main target.”
External Affairs Minister S Jaishankar stated, “I could take the view that the individual in question, Mr Soros, is an old, rich, opinionated person, sitting in New York, who still thinks that his views should determine how the entire world works. Now if I could stop at old, rich and opinionated, I would put it away. But he is old, rich, opinionated and dangerous.”
Soros and his Open Society Foundations, across countries, do arguably engage in political work. Yet, the public and personal attack — from some of the most prominent and articulate faces of the government — against the perceived “foreign hand” indicates a prickliness about criticism that is reminiscent of Wolf Warriors rather than the secure, understated confidence of seasoned diplomats and leaders. It was seen earlier when Jaishankar refused to meet with a US Congressional Committee in 2019 because Congresswoman Pramila Jayapal had introduced a resolution about Kashmir in the US legislature.
Unfortunately, this mode of engagement with foreign actors — or journalists and media houses — is of a piece with the image of New India, just as it is a hallmark of Xi’s China. The latter, under its current leader, has abandoned Deng Xiaoping’s dictum of “hide your strength, bide your time”. Xi’s China is confident about its military prowess and economic might and believes that it is now its turn to lead the world. The insecurity about criticism and the strident diplomatic language is about saying to the international community that China now sits at the head of the table and that a “rules-based order” that doesn’t account for Beijing’s exceptionalism — as it does for the US — will not stand.
India is far behind China in economic terms. Yet, the size of its market and a growing economy does give it bargaining power: There was little to no official criticism of the actions of the BJP from Western capitals. Strategically, the West and Japan see India as an important bulwark against an aggressive and expansionist China. All of this, perhaps, makes it easy to deploy our very own Wolf Warriors without consequences.
Just two factors to consider: First, at least part of the reason the West and others are enamoured with India is its democratic credentials and openness. The Chinese model of engaging in a constant battle of narratives about every little documentary or stray comment may do more harm than good in this regard.
Second, and perhaps more importantly, the decency and openness to criticism of a confident society and polity should not be a matter of weakness or compulsion. That a ruling party acts as though criticism is an attack on the country is disturbing. After all, the difference between authoritarianism and democracy is about more than just GDP numbers and what each can get away with as a result. Or at least it should be.
Friday, 17 February 2023
Unreliable Macroeconomic Forecasts and Corporate Business Plans
Anne-Sylvaine Chassany in The FT
Top Ikea executive Jesper Brodin says he is not usually one to indulge in nostalgia. But at a pre-Christmas gathering for senior managers that used to work at the Swedish furniture group, he could not help but join with the chorus of those who said they missed the old times — when the world seemed relatively stable, trends were predictable and this could be translated into a more or less credible multiyear business plan.
“We always debate whether it was better before. I used to always argue it is better now. This time we tended to agree it was better before,” he said. “The risks, the uncertainty, everything that used to be in a ‘risk matrix file’ is more or less happening . . . We laugh about the time when we were doing one-year budgets, and how we would be right or wrong by 0.3 per cent.”
Brodin’s reflections resonate across the corporate world. CEOs are struggling to make sense of confusing macroeconomic signals. In Europe and the US, an economic downturn is combined with record low unemployment and labour shortages. Consumer behaviour is a mystery: up until recently people have kept spending even though the price of almost everything has gone up.
The worst predictions of economic crisis and energy shortages from last year have not materialised. But it feels uniquely hard to predict the path ahead at the moment. On both sides of the Atlantic, little consensus is heard about where the economy is going, and for listed businesses, delivering guidance to the market is more difficult than ever. In the UK, auditing firms worry that the forecasts their corporate clients submit to them for sign-off are impossible to assess.
In the game of adjusting to these new forms of chaos, some are better placed than others. Generally pressure is less on privately owned companies that do not have to publish profit targets.
Ikea, for instance, has changed tack. Instead of setting out specific goals for the year, it has a set of “scenarios” to give the business wiggle room as the outlook changes. It means acknowledging that widely different outcomes are possible. “It’s teaching us agility in how we operate,” said Brodin.
A year ago, the 54-year-old firm expected customers to cut spending because of high energy bills and mortgage rates. That did not happen. Meanwhile, supply chain disruptions improved more quickly than anticipated, leaving the group with more inventory and, in turn, the need to lower the prices of some of its products.
“We are celebrating that things are going in the right direction,” said Brodin, “but we have no concept of predicting with precision what’s going to happen in 6 to 12 months.”
For Ikea, input costs are the trickiest to forecast. Transport prices have fallen. But Brodin did not expect that greater demand for wood to burn as fuel would make some of the company’s materials more expensive.
It is not just the traditional variables of financial modelling such as inflation and consumer spending that have become harder to predict. The past few years have also provided some unexpected lessons on how business and society cope with shocks and uncertainty.
“Look at what people have gone through: the pandemic, the economic damage, the tragedy of war, energy prices,” Brodin said. “What people might have underestimated is human resilience.”
Wednesday, 15 February 2023
Tuesday, 14 February 2023
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