India's Prime Minister Narendra Modi is a fan of the grand gesture. He abolished 86% of the country's currency without warning, sending the economy into a spiral, and announced a nationwide lockdown last year with just hours' notice. His televised speech last night was similarly vaulting, but pushed a surprising message to states overwhelmed by Covid-19 (Delhi's health minister said some hospitals had just four hours of oxygen left). "Avoid lockdown," Modi said. Fresh from drawing vast crowds to election rallies in West Bengal as he seeks the defeat of a powerful local leader, Modi risks tying the hands of the states by insisting they remain open for business even as India adds almost 300,000 new virus cases a day. Like Modi, Brazilian President Jair Bolsonaro opposes lockdowns and has clashed with local authorities after they imposed restrictions on commerce. Both are betting that voters will support them for keeping the economy open and people in work. That's even as their respective nations are the world's second- and third-worst hit by the number of infections. Bolsonaro is struggling to steady his cabinet after a string of high profile departures and his popularity ratings have fallen. Still, his government has struck a deal on a budget bill that could allow it to recreate a job protection program and give financial support to small companies hammered by the pandemic. In India, citizens are clearly frightened by the ferocity of the outbreak and angry at the government for not using a lull earlier this year to strengthen the health system. But Modi has, until now, remained consistently popular with voters. Both countries lack a strong political opposition, so these two populists may yet survive their handling of the pandemic. — Ruth Pollard People refill medical oxygen tanks for Covid patients in Allahabad. Photographer: Sanjay Kanojia/AFP/Getty Images Check out all our biggest stories on the Bloomberg Politics web page here and tell us how we're doing or what we're missing at balancepower@bloomberg.net. |
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