On May 23 we will know if the Indian electorate has decided to rely on Prime Minister Narendra Modi for another five years. And if, as it seems very possible that Modi will remain at the helm of India, we will see the take-off of one of the most revolutionary and modern measures of wealth of nations, the GDKP (Gross Domestic Knowledge Product), which thanks to India’s Statistical office, will have an impact on a world level.
Indian wealth based on the production of Knowledge, the most important immaterial goods produced in a country, will be added to the GDP the measure of wealth based on material goods (and services) and this connection will provide to governments new powerful tools to modernize their policies. We should notice immediately that that measure of GDKP uses techniques that we must define from the Bottom Up and that is a notation extremely important for a country of over a billion people.
Why is GDKP revolutionary? There is no doubt that from an economic point of view the decade we are about to live will be dominated by the K factor, namely the Knowledge impact on wealth, politics and security, and therefore quantifying the wealth K of a country in global economic terms — that never was done before — is a decisive functional tool of government.
There is a critical aspect that GDKP-India captures, and that makes it a unique item in line with Modi’s philosophy of economic development: GDKP India calculates the Knowledge production from below, Bottom Up, which is the inspiring element of the NITI Aayog institution wanted by Modi to renovate the country.
But this aspect of GDKP India is revolutionary, as Modi’s approach is revolutionary, because the 5KR, the fifth revolution of knowledge dominated by the collapse of the prices of computer equipment, of access to the communication of billions of individuals, and of the circulation of knowledge to planetary level, will be soon, very soon integrated by the 6KR, the age dominated by the implication of artificial intelligence, which vice versa comes from above.
And here the gains of the future economic country will be based on the management of the K-dreamer with K Massive utilizers, again, over a billion people. And that is why the intersection caught by the GDKP India constitutes a potentially explosive cocktail of economic development for the country.
In the face of this revolution that starts from the Bottom Up, which radically changes the notion of knowledge, India is therefore the first country in the world that has decided to quantitatively measure its wealth Knowledge (GDKP), with a process similar to that of quantification of one’s material wealth (GDP).
The calculation of the GDKP India which, elections and some bureaucratic slowness permitting, is planned in 2019 to be launched, and will have enormous theoretical and pragmatic implications for Modi’s ambition of modernizing the economy that ranges from the revision of the deficit budget spending, favoring private choice and selection of the Portfolio investment on the stock market, to promote international reviewing of the rating risk for companies and countries, and finally arriving to the potential of the most spectacular government modernization tool promoted by GDKP India: identifying the cost of learning for rural or urban areas, geographical areas and age brackets.
The cost of learning will make government able to push forward really in terms of global international competition on K factor.
GDKP India, will favor a significant quantitative jump in the GDP of 2 or 3 percentage points, in addition to the ordinary results, and could make India conquer that 2 digits growth in GDP that constitutes a dream.
If, therefore Modi will be confirmed (and his personal past government has all the credits to be confirm him for five more years), in India the economy will be possible to open a special period of mixing innovation and renewal. We know that the operational results of the Modi government are very remarkable to say the least. An average GDP growth rate of 7%, a reduction in inflation to 2.5%, and a deficit reduced from 6% to 3.4% are some of the most relevant macro data — but in addition there are social achievements that have and impact on economy, rural roads, public toilet, assistance to women, insurance and medical assistance that Modi has substantially improved everywhere.
Now the future. The next five years will see a strong tightening of international monetary competition, a trade quasi-war USA China, a aggressive strong Chinese push to conquer the Western and Asian markets with OBOR, and a possible revision in terms of greater aggressiveness of European Union.
But the next five years will also see a huge international competition based on the K factor production in all markets. And this is perhaps the ground on which India can play the most decisive game thanks to GDKP and to the very special team that has worked for its introduction.
This includes the dazzling both theoretical and operative economist Rajiv Kumar, Vice Chairman of NITI, who adapted to India the general model studied for the calculation of the GDKP. Then another Kumar, (Ashish) first GD of the Central Statistic Office, and now head of the Asian statistics of the UN that made some crucial experiments and finally the head of the highest Indian statistical body Chief of Statistic Office, Pravin Srivastava, who has officially decided to calculate this form of strategic wealth.
Modi, if he is re-elected, will therefore be able to count on the consistent and secure management of the maximum economic structure for Indian renewal, NITI Aayog, and on the revolutionary new data introduction of Indian statistical office.
But in any case from May 23, GDKP India, thanks to the Chief of Indian Statistics Pravin Shrivastava is in the offing for providing to the government a new, very special tool for meeting the challenge of the Knowledge revolution. It will be NITI Aayog’s responsibility to properly develop the business and budget implications involved — but Modi will surely look at them to be properly implemented.