What We Read Today 13 May 2014

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary “reading list” which will include very brief summaries of why each item has gotten our attention. Suggestions from readers for “reading list” items are gratefully reviewed, although sometimes space limits the number included.

• Modi on course to be India’s next leader, exit polls show (Shyamantha Asokan, Reuters) Four different exit polling organizations all predict a solid sweep for Modi to become India’s next Prime Minister and his Bharatiya Janata Party (BJP) and allied parties likely to gain the parliamentary majority. However, India has a notorious record of poor results for exit polls and parliamentary election results so little will be certain until official results are announced Friday. If the BJP does not get a majority and form a stable government Modi will have difficulty implementing of of the reforms he campaigned for.

• World Bank: India Overtakes Japan as World’s Third Largest Economy (Ankit Panda, The Diplomat) Hat tip to Sanjeev Kulkarni. Just a week after if was announced that China was on track to surpass the U.S. for the world’s argest GDP on a Purchasing Power Parity (PPP) basis, India has passed Japan for the third spot on the same basis. Note: Some are critical of those who place a great deal of significance on PPP adjusted GDP. This is discussed ‘behind the wall’.

• Beijing to the US by train: China outlines plans to connect world by high speed rail network (Tomas Jivada, The Independent) China plans to connect most of the globe by high speed rail. Continents not yet in the “connection plan” are Australia, South America and Antarctica.  For more details see GEI Analysis today:  China Plans Railroad to Seattle, and More.
  

• Does National Climate Assessment lack necessary nuance? (Jason Samenow, The Washington Post) This article hits at the same concerns as climate economist Sig Silber did on GEI Opinion Sunday. Here is a good summary from Samenow:

Oversimplified statements and projections that seem over the top can do damage to an otherwise outstanding body of work – which is beautifully and innovatively presented. Over 300 excellent scientists contributed to this report.

• Samantha Power’s brazen hypocrisy: Media swallows propaganda, but here’s the truth about Ukraine (Patrick L. Smith, Salon) Smith asserts that the progression of events in Ukraine bear an eerie similarity to those in Egypt in 2011-2012. Smith attributes the driving force behind the Ukraine crisis to American foreign policy which he says is “[o]ften disrespectful, often unlawful, purposefully destructive of order, possessing no idea of limits.” See also Behind the Masks in Ukraine, Many Faces of Rebellion (C.J. Chivers and Noah Sneider, The New York Times)

• Surging inflows post Narendra Modi win could create twin problems for Raghuram Rajan (Saikat Das and MC Govardhana Rangan, The Economic Times) Hat tip to Sanjeev Kulkarni. If the election of Modi results in a surge of foreign money coming into India the resulting appreciation of the rupee could damage India’s export prospects.

What’s good for investors and industrialists need not necessarily be good for Raghuram Rajan. The Reserve Bank of India governor, who battled shrinking foreign exchange reserves when he took on the job last year, may soon face a problem of plenty.

A possible victory for Narendra Modi of the Bharatiya Janata Party in the race for the country’s top job has fired up domestic and overseas investors alike. The rush of money that the improved sentiment will bring, should expectations be met, could challenge Rajan’s goal of taming inflation and narrowing the current account deficit through better trade.

Today there are 18 articles discussed ‘behind the wall’.

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