#179 The Flesh is Willing but the Mind is Weak

<strong>Global Policy Watch:&#160;Energy Is Flagging </strong><br/><br/><em>Insights on burning policy issues from an Indian lens</em><br/><br/><em>&#8212; RSJ</em><br/><br/>Who do you think has a better long-term view of the world? An administration struggling to control inflation and rising oil prices, one that&#8217;s facing midterm elections with the lowest approval ratings, or large institutional investors <a target="_blank" href="https://financialpost.com/investing/a-20-trillion-blackrock-vanguard-duopoly-is-investings-future">projected to own about 20 per cent </a>of all US listed companies by 2028? <br/><br/>I don&#8217;t know. <br/><br/>I mean, it is conventional wisdom that all that the likes of Blackrock, Vanguard and State Street care about is making profits on their investments. On the other hand, the government is expected to take long-term decisions in the interest of society. But when you own 20 per cent of everything, I would suspect you will conclude there&#8217;s no other way to maximise profits except trying to do good for everyone. I mean, there won&#8217;t be a lot of arbitrage left anymore in choosing specific industries or sectors. You will have to do &#8216;<em>sabka saath, sabka vikaas</em>&#8217;. No wonder ESG (Environment, Social and Governance) investing has been important for these large institutional investors. That ESG is now a critical agenda tracked by the board of every company because of these investors' efforts. <br/><br/>All good. <br/><br/>Now, let&#8217;s look at the incentives of political parties. It is to win elections. Everything else follows only after you have the keys to power. And elections in democracies are a permanent affair. There&#8217;s a key election of some kind happening every other year. Will a political party craft a policy that&#8217;s painful in the short run but good in the long run? They do, but it requires a combination of inspiring leadership or ideology, a looming crisis and a powerful communication strategy to walk on this difficult path. That&#