India’s Prime Minister Modi and US-President Trump at the WEF 2018 in Davos

The leaders of two large economies at the World Economic Forum in Davos were invited to open
resp. to close the debate. Stark contrast between the statements of India’s Prime Minister Modi
and of US President Trump

PM Modi was this year’s opening key note speaker at the WEF in Davos. You would have to
go back 21 years to see the Indian Prime Minister come to Davos with a big government and business
delegation. For this year’s closing speech the organisers had invited US President Trump; he came,
met fifteen of the biggest business leaders for dinner (“I have now fifteen new friends, great!”), spoke
and left. What he said was articulate and coherent, sort of “decent version” of otherwise erratic
statements about ill-conceived economic policies, and it was one big and one-dimensional
“commercial” inviting the world to bring all the money to America for investments in the greatest
place and the most thriving economy of the world. Upon Professor Schwab’s prepared question,
President Trump did not hesitate to state that all his life he had been best at making money, a lot of
money. So much for the closing highlight of the informal summit of world leaders.

But what about the message of the opening address, by PM Modi? That was more
philosophical, when he elaborated on fractures of the world, starting with fracture at the individual
level, at the level of human mind and heart. According to PM Modi, India has learnt to work on the
level of mind: “India is the land which has the solution for this all pervasive problem of fracture”. For
philosophers, historians and other academics, this can be understood as a reference to India’s perennial
religious foundations. But did international business leaders trying to make sense of economic
involvement in India understand the challenges this way? At least, PM Modi believes that control over
mind is India’s soft power, in fact India’s real power, and: “The whole world has started recognizing
it.” Continuing on fracture and violence, he stated that “we do not venture or advocate violence even
through words or mind leave alone deliberate action.” Probably, the Muslim community regularly
victim of Hindu persecution until today, sees it differently. Be it reminded that ten years ago, Narendra
Modi, then Gujarati Chief Minister, was barred from coming to Davos because of his responsibility in
the violent persecution of Muslims in Gujarat six years earlier. And when hearing Modi saying that
India rushed to help people in need whether in neighbourhood or faraway locations and “ we have
fought wars when no strategic interests of our own were involved”, one remembers India’s wars with
China or Pakistan, its intervention which led to the creation of Bangladesh or the intervention in Sri
Lanka’s civil war. They were all fought for strategic interests. Speaking with well-deserved pride of
India’s democracy, he couldn’t help but stating that India as largest Democracy on earth “is also the
fastest growing major economy”. It is not; among the very big it is still China. But the reference to his
confidence that “Democracies can, will and must work in the years and decades to come” is a clear
political statement which should be supported by democratic leaders in other countries. This must be
highlighted since there is a contrast between this assertion and a growing admiration among leaders in
the democratic West for undemocratic China and for the pretended ease with which one can do
business with that China.

What is the message of this short analysis? PM Modi has a strong case when speaking of the
challenges to reform India’s inherited inertia, when speaking of his courage to do the right things in
the right directions, or when redefining India’s foreign relations on the basis of a fresh look at strategic
interests. But his key note speech addressed to world leaders gathered in Davos 2018 was certainly not
the appropriate “commercial” for bringing foreign business and investment capital to India. Too much
of his assertions of what is going to happen in India in the way of reforms is still at the stage of
wishful thinking. On this, the US President’s promises for those who consider bringing their money
(back) to America were certainly more convincing, at least for those who do not care about
governance style and who do not fear that this president may not survive his first term in office.
Indians, and the rest of the world, should hope that Modi’s genuine concept for India’s future goes
beyond his Davos speech.

Picture: World Economic Forum