Blaming Political Instability

Sunday’s Economic Time’s carries an article on the downard trend of the Karnataka State’s GDP. What leaves me wondering is, the GDP of the state has grown up from the figure’s they themselves have shown in the exhibits, it looks like the economy has actually taken a U turn. Agree that from a 10+ GDP it came down to six, but over the last two years, it has again gone up to 8.6. And, yes ET calls it due to political instability. What about the financial crisis in between?

May be a part of it is due to the political instability, but however conducive the government is trying to make the atmosphere why are the opposition ruining the chances of the state. The flowers of Karnataka’s success bloomed during SM Krishna’s tenure, however while the Governemnt had planned to target other grown Tier-2 cities as the next IT/ Bio destinations, the father-son duo in between changed the landscape.

I remember having read an article which promoted Ram Nagar near Bangalore as an Investment destination. With almost zero infrastructure, who would go there? Was this done to serve the political ambitions of a few? If it is so, the state’s loss has been other states’ gains. If someone has blocked a pre-planned agenda, to get their plans actioned, probably that cannot be termed as political instability.

Mohandas Pai has rightly quoted that “There is a big disconnect between potential and actual action… this gap has only widened.” So how can someone blame political instability as the reason for this GDP fall and how can one ignore the now rising GDP again?