Emerging Markets

Very Different Protests in India and Brazil

By EM Bits

(A stranger in the city asks questions no one has asked before. Known only by his initials, P.K.’s innocent questions and childlike curiosity will take him on a journey of love, laughter and letting-go.)

India is facing two very different protests. First, the coal unions will start a 5-day strike against a move by PM Modi to open up the sector for foreign investment. The idea is to break the monopoly of the state-owned Coal India, which accounts for 82% of domestic output. Some have already said it could cause problems for the country’s power supply. This is just another taste of the challenges Modi will face in trying to modernize the country.

The second protest was against the blockbuster Bollywood film PK which is set to be the biggest grossing film in the industry’s history, with close to $100 mln in revenues. Protesters vandalised theatres in the western Indian state of Gujarat (amongst others) for exhibiting the film which many saw as making fun of Hindu Gods. The film stared Aamir Khan (of course), a Muslim actor. Dealing with religious tensions will be another challenge for PM Modi, who was often accused of repressing religious communities and minorities in his home state.

In Brazil, the protests are more of a déjà vu: social groups are organizing to fight against an increase in bus fares. The proposed measure will see prices for Sao Paulo buses rise from R$3.00 to R$3.50. This protest (and similar ones in other cities) was minor, incomparable to the ones seen last year. But the political and social dynamics in Brazil have changed dramatically since the elections. This is now a vastly more polarized society and it is not hard to see discontent with the government escalating quickly. And there will be plenty of reasons to protest if the new economic team lead by Levy takes the fiscal tightening measures proposed.

Courtesy of EM Bits

ETFs: EPI, INDY, INDA, EWZ, BRF

About ETFalpha

Chief ETF Strategist & Co-Founder at EMerging Equity

Discussion

One thought on “Very Different Protests in India and Brazil

  1. Reblogged this on msamba.

    Like

    Posted by agogo22 | January 20, 2015, 1:32 pm

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