TIME Economy

Europe’s Economic Band-Aid Won’t Cure What Really Ails It

Prime Minister David Cameron Tries To Take A Harder Line with Europe
E.U. flags are pictured outside the European Commission building in Brussels on Oct. 24, 2014 Carl Court—Getty Images

Quantitative easing is a good start, but it won't fix the Continent's underlying wounds

Markets always love a money dump, which is why European stocks are now rallying on news that the European Central Bank will purchase 1.1 trillion worth of euro-denominated bonds between now and September 2016. Bond yields are dropping, implying less risk in the European debt markets. And the value of the euro itself is falling, which should make European exports more competitive, which could in turn bolster the European economy over all.

All good, right? For now, yes, it is all good.

But let’s remember that central bank quantitative easing (QE) of the kind that Europe is now embarking on is always just a Band-Aid on economic troubles, not a solution to underlying structural issues in a country (or in this case, a region). Just as the Fed’s $4 trillion QE money dump bolstered the markets but didn’t fix the core problems in our economy—growing inequality, a high/low job market without enough work in the middle, flat wages, historically low workforce participation—so the ECB QE will excite markets for a while, but it won’t mend the problems that led Europe to need this program to begin with.

Those consist primarily of a debt crisis stemming from the lack of real political integration within the EU. Right now, Europe has a currency and an economic union that exists in a kind of fantasy land, with no underlying political unity. Until the Germans start acting more European (meaning creating a consumption society and realizing that they’ll have to do some fiscal transfers to struggling peripheral nations in exchange for the huge export benefits they get from the euro), and countries like Spain, Italy, Portugal and France start making the changes they really need (all the usual stuff—labor market reforms, cutting red tape, fighting corruption, opening up service markets), the debt crisis won’t go away.

Indeed, the challenge now is for countries is to use the breathing room that the ECB has given them to really come together over the next 18 months and make those reforms happen while committing to a truly integrated Europe. Germany should say it will unequivocally back peripheral nations financially in exchange for a promise of real reforms in those nations. (There should also be tough penalties for failure on both sides of the bargain.)

That will be tough for sure, but Europe will find itself in an even worse place come September 2016 if it doesn’t take action now. Post QE, without any real structural reform, the EU will simply have an even more bloated balance sheet, and the market will exact punishment for it. For a historical lesson on this, look to the many emerging market crises of the past where countries tried to spend themselves out of their problems without doing underlying reforms; it always ends in a stock market crash, a financial crisis, and plenty of tears.

The buck has stopped for Europe. The ECB has called policy makers’ bluff. It’s time to create a real United States of Europe to match the common currency.

TIME Careers & Workplace

Here’s How You Can Make One Million Dollars

one-hundred-dollar-bills-stacked
Getty Images

These steps are neither fast nor easy. But they're more likely to work than the quick and easy path

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This post is in partnership with Inc., which offers useful advice, resources and insights to entrepreneurs and business owners. The article below was originally published at Inc.com.

Say you want to become a millionaire. Or a multimillionaire.

Or hey, even a billionaire. (Why not?)

The goal is clear…but the path can be anything but.

But not to Dharmesh Shah, co-founder of HubSpot (No. 1,100 on the 2014 Inc. 5000 and a company that recently went public). Dharmesh sees a clear, if slow and difficult, path to becoming a millionaire–or to reaching whatever level of financial success you aspire to.

Here’s Dharmesh:

Money of course isn’t everything. Not by a long shot. Where your definition of success is concerned, money may rank far down the list. Everyone’s definition of “success” is different.

Here’s my definition: Success is making the people that believed in you look brilliant.

For me, money doesn’t matter all that much, but I’ll confess it did at one time (probably because I didn’t have very much).

So let’s say money is on your list. And let’s say, like millions of other people, that you’d like to be a millionaire. What kinds of things should you do to increase your chances of joining the millionaire’s club?

Here are the steps I’d suggest. They’re neither fast nor easy. But they’re more likely to work than the quick and easy path.

1. Stop obsessing about money

While it sounds counterintuitive, maintaining a laser-like focus on how much you make distracts you from doing the things that truly contribute to building and growing wealth.

So shift your perspective. See money not as the primary goal but as a byproduct of doing the right things.

2. Start tracking how many people you help, even if in a very small way

The most successful people I know—both financially and in other ways—are shockingly helpful. They’re incredibly good at understanding other people and helping them achieve their goals. They know their success is ultimately based on the success of the people around them.

So they work hard to make other people successful: their employees, their customers, their vendors and suppliers…because they know, if they can do that, then their own success will surely follow.

And they will have built a business—or a career—they can be truly proud of.

3. Stop thinking about making a million dollars and start thinking about serving a million people

When you only have a few customers and your goal is to make a lot of money, you’re incented to find ways to wring every last dollar out of those customers.

But when you find a way to serve a million people, many other benefits follow. The effect of word of mouth is greatly magnified. The feedback you receive is exponentially greater—and so are your opportunities to improve your products and services. You get to hire more employees and benefit from their experience, their skills, and their overall awesomeness.

And in time, your business becomes something you never dreamed of—because your customers and your employees have taken you to places you couldn’t even imagine.

Serve a million people—and serve them incredibly well—and the money will follow.

4. See making money as a way to make more things

Generally speaking, there are two types of people.

One makes things because they want to make money; the more things they make, the more money they make. What they make doesn’t really matter that much to them–they’ll make anything as long as it pays.

The other wants to make money because it allows them to make more things. They want to improve their product. They want to extend their line. They want to create another book, another song, another movie. They love what they make and they see making money as a way to do even more of what they love. They dream of building a company that makes the best things possible…and making money is the way to fuel that dream and build that company they love.

While it is certainly possible to find that one product that everyone wants and grow rich by selling that product, most successful businesses evolve and grow and, as they make money, reinvest that money in a relentless pursuit of excellence.

“We don’t make movies to make money, we make money to make more movies.” — Walt Disney

5. Do one thing better

Pick one thing you’re already better at than most people. Just. One. Thing. Become maniacally focused at doing that one thing. Work. Train. Learn. Practice. Evaluate. Refine. Be ruthlessly self-critical, not in a masochistic way but to ensure you continue to work to improve every aspect of that one thing.

Financially successful people do at least one thing better than just about everyone around them. (Of course it helps if you pick something to be great at that the world also values—and will pay for.)

Excellence is its own reward, but excellence also commands higher pay—and greater respect, greater feelings of self-worth, greater fulfillment, a greater sense of achievement…all of which make you rich in non-monetary terms.

Win-win.

6. Make a list of the world’s 10 best people at that one thing

How did you pick those 10? How did you determine who was the best? How did you measure their success?

Use those criteria to track your own progress towards becoming the best.

If you’re an author, it could be Amazon rankings. If you’re a musician, it could be iTunes downloads. If you’re a programmer, it could be the number of people that use your software. If you’re a leader, it could be the number of people you train and develop who move on to bigger and better things. If you’re an online retailer, it could be purchases per visitor, or on-time shipping, or conversion rate…

Don’t just admire successful people. Take a close look at what makes them successful. Then use those criteria to help create your own measures of success. And then…

7. Consistently track your progress

We tend to become what we measure, so track your progress at least once a week against your key measures.

Maybe you’ll measure how many people you’ve helped. Maybe you’ll measure how many customers you’ve served. Maybe you’ll evaluate the key steps on your journey to becoming the world’s best at one thing.

Maybe it’s a combination of those things, and more.

8. Build routines that ensure progress

Never forget that achieving a goal is based on creating routines. Say you want to write a 200-page book. That’s your goal. Your system to achieve that goal could be to write four pages a day; that’s your routine. Wishing and hoping won’t get you to a finished manuscript, but sticking faithfully to your routine ensures you reach your goal.

Or say you want to land 100 new customers through inbound marketing. That’s your goal; your routine is to create new content, new videos, new podcasts, new white papers, etc., on whatever schedule you set. Stick to that routine and meet your deadlines, and if your content is great, you will land those new customers.

Wishing and hoping won’t get you there—sticking faithfully to your routine will.

Set goals, create routines that support those goals, and then ruthlessly track your progress. Fix what doesn’t work. Improve and repeat what does work. Refine and revise and adapt and work hard every day to be better than you were yesterday.

Soon you’ll be good. Then you’ll be great. And one day you’ll be world-class.

And then, probably without even noticing, you’ll also be a millionaire. You know, if you like that sort of thing.

TIME Economy

Minimum-Wage Increases Go Into Effect Across the Country

The wage hikes in several states and D.C. are expected to affect 3.1 million people

Roughly 3.1 million workers across the United States woke up to a little New Year’s Day present on Thursday, January 1, when increases in the minimum wage took effect in 20 states and the District of Columbia.

The recent bumps brought the total number of states with a minimum wage above the federal wage floor to 29, the New York Times reports. The federal minimum wage is $7.25 an hour.

Some of the increases are relatively tiny—a few cents—while some, of a dollar or more, could have a more significant impact on the economy. Minimum wage hikes in more states are set to take effect later in the year, according to the NYT.

The minimum wage hike is expected to impact 3.1 million of the 3.3 million Americans who earn the minimum wage.

[NYT]

TIME ebola

Ebola-Stricken Families to Receive Cash Payments

Hawa Musa with her mother and children. Of 25 people living in the house, 17 have died from ebola, including her husband.
Hawa Musa (blue) with her mother and children. Musa used to rent rooms for income, but no one wants to rent her rooms anymore. She previously had 25 people living in her house, but 17 died of Ebola including her husband and a few of her children. She's taken in 10 more kids. Carly Learson—Carly Learson / UNDP

In 2015, the three Ebola-affected countries will start offering cash payments for families hit by Ebola, as well as survivors having trouble re-acclimating to society out of stigma for the disease.

Every aspect of Guinea, Liberia and Sierra Leone’s societies have taken a hit from Ebola, and the disease has shocked what were once fragile but growing economies. Public spaces are now forbidden, so markets are empty, tourists are no longer traveling into the countries and international companies have largely pulled out, including large industries like mining. The World Bank estimates the aftershock of Ebola to already weakened economies will be “devastating.”

“We are seeing a backwards slide of development of about 10 years,” says Boaz Paldi, chief of media and advocacy at the United Nations Development Programme (UNDP). “The outlook is not good. We are fearful for these countries.” That’s why instead of waiting for caseloads to reach manageable numbers, the three countries, with the help of UNDP and other partners, are laying the groundwork now for rebuilding the damaged economies. One of the first major initiatives to be rolled out in the new year are cash transfers and payments to families who no longer have breadwinners and survivors out of work. Many women in the Ebola-affected countries have taken in orphaned children of their family members or neighbors, despite having no steady income.

Dudu Kromah's husband died recently from ebola. She is looking after ten children, many of them orphans including a 3-month-old baby.
Dudu Kromah’s husband died from Ebola. She is looking after ten children, many of them orphans including a 3-month-old baby. She has no income. Carly Learson—Carly Learson / UNDP

According to UNDP leaders, plans for the payment process are still being refined. Lists of names of affected families and survivors are being collected and coordinated for small pilot programs, starting early next year, to test the effectiveness of the payments in preparation for widespread efforts. UNDP has calculated that around $50 will keep a family of five going in the three countries with essential needs for one month, with some variations by country. The group is anticipating making monthly payments to 150-200,000 people in each of the countries.

Ultimately, the payment program may develop into a cash-for-work model, with payments in exchange for work rebuilding communities in an effort to inject cash into the local economy and enable people to earn a living.

Ideas for how to get youth involved are also being considered. In Sierra Leone, Ruby Sandhu-Rojon, the deputy director of the UNDP Regional Bureau for Africa, spoke to young people concerned that since residents can no longer go to their local markets, they are unable to buy the food they need. “So why not start a delivery company to have food delivered to the different communities? How can we provide the start-up capital for young people who want to initiative those types of activities?” says Sandhu-Rojon.

The three countries and the U.N., which launched the U.N. Mission for Ebola Emergency Response (UNMEER) earlier this year, are also looking to the private sector. On Dec. 11 the U.N. held a U.N.-Business Collaboration for Global Ebola Response meeting as a way to get the private sector involved in both the response and recovery. A panel of high-level representatives from U.N. Missions in the affected countries, the U.S., U.K., and France put out a call for help from companies in areas major like logistics. Ultimately, the greatest plea was for companies to return to the countries and invest.

Sadly, all three countries were experiencing high growth rates before the start of Ebola, after coming out of conflicts like civil war. Sierra Leone had only recently launched its “Agenda for Prosperity,” a high-level initiative to become a middle-income country by 2035. High growth rates could largely be attributed to extractive industries like mining, which have now largely decreased their production or shut down, causing a government shortfall in revenue and massive loss of employment. Remaining national resources have been reallocated to the Ebola fight.

“It’s very disheartening, because all three of these countries were on their way up,” says Sandhu-Rojon.

The hope is cash payments will be a boost to help people get by. But increasingly more support and funding will be needed from the international community and private sector to get the countries back on their feet. Whether the countries will make it back to pre-Ebola growth may be a much greater, and longer battle.

TIME Retail

Inside Starbucks’ Radical New Plan for Luxury Lattes

An employee pours milk into a cardboard coffee cup inside a Starbucks Corp. coffee shop in London on June 9, 2014.
An employee pours milk into a cardboard coffee cup inside a Starbucks Corp. coffee shop in London on June 9, 2014. Bloomberg/Getty Images

Your Starbucks is about to change radically—get ready for $6 coffee

If there is a retail proxy for America, it must be Starbucks. The company has 12,000 stores in the US, doing 47 million transactions per week, serving 70 million unique customers. One in eight people found a Starbucks card in their Christmas stocking last year. So when Starbucks founder and CEO Howard Schultz says something about consumers, people tend to listen. (Indeed, everyone from President Obama to the heads of major investment banks have been known to ring him for a cup by cup read on the state of the economy.)

At the company’s biannual investor conference this week, Schultz gave his take on the state of the recovery in the US. While Schultz is bullish, laying out some robust growth targets for his company, he also said, “We are living at a time when the world is very fragile, and that effects consumer confidence.” Just like the overall economy, Starbucks is bifurcated—stores in some affluent cities are doing more business than ever, while others have yet to spring back from the last several years of crisis and recession.

What’s more, the way people are shopping is changing profoundly. According to Schultz, the “seismic shift” in consumer spending from bricks and mortar retail outlets to online shopping that the company first noted last year has become “a tidal wave.” That’s going to change the entire nature of retail and public spaces. As Schultz put it, “I wouldn’t want to be a mall operator five to ten years from today,” referencing the fact that foot traffic in malls and in Main Street shopping areas throughout the country is way down from last year.

The problem is, that’s where most Starbucks today are located. Solution: a whole new approach to stores that mirrors this new economy. Just as fashion brands have “haute” couture and mass market lines, Starbucks will now have luxury “reserve” stores, and many more express kiosks, mobile coffee trucks and all kinds of specialized retail outlets purpose built for specific spaces. Think luxe roadside coffee pit-stops, or “hammerhead” shaped drive through outlets made out of used cargo containers that will sit in the entrance to highways or on small silvers of land near a bowling alley or another local attraction.

The idea will be to make Starbucks a destination in and of itself, one that’s not so dependent on foot traffic. “People are still longing for connection, and a sense of community, perhaps more so now that they are spending more time at their computers, or working from home,” says Schultz. But in order to preserve the “third place,” Schultz says the company will increasingly have to offer “experience, rather than just a product.”

On Dec. 5, Schultz debuted part of the new strategy—his first flagship “Roastery,” a 15,000 square foot space in Capitol Hill, Seattle that is both a coffee roasting facility, and a consumer retail outlet. The place is to coffee what FAO Schwartz is to toys or Dover Street Market is to fashion—retail theatre. You can watch beans being roasted, talk to master grinders, have your drink brewed in front of you in multiple ways, lounge in a coffee library, order a selection of gourmet brews and locally prepared foods. (The entire store is crafted from Made in America materials, by regional artisans.) The architecture says “niche” not mass, as does the merchandise—copies of the New Yorker are scattered alongside top of the line espresso machines and bags of reserve beans marked with their crop year.

Schultz calls it his “Willy Wonka factory of coffee,” and it speaks to the fact that in retail, as in nearly every aspect of the economy these days, there seems to be two directions—up, or down. At the Roastery, a latte made from beans cut and roasted in front of you only minutes before can cost more than $6 bucks. And the truth is that they could probably charge a lot more. There’s little price sensitivity for the upscale consumer these stores—and the smaller “Reserve” stores inspired by the flagship, which will be coming to a town near you in 2015—will target.

In America these days, there are two kinds of people: those that can buy lattes, and those who make them. Schultz is endeavoring to change both their lives.

Read next: How to Win Free Starbucks for Life

TIME Research

Study Suggests Banking Industry Breeds Dishonesty

Bank industry culture “seems to make [employees] more dishonest,” a study author says

Bank employees are more likely to exhibit dishonesty when discussing their jobs, a new study found.

Researchers out of Switzerland tested employees from several industries during a coin-toss game that offered money if their coins matched researcher’s. According to Reuters, there was “a considerable incentive to cheat” given the maximum pay-off of $200. One hundred and twenty-eight employees from one bank were tested and were found to be generally as honest as everyone else when asked questions about their personal lives prior to flipping the coin, the Associated Press reports. But when they were asked about work before the toss, they were more inclined toward giving false answers, the study determined.

The author of the study says bankers are not any more dishonest than other people, but that the culture of the industry “seems to make them more dishonest.”

The American Bankers Association rebuffed the study’s findings to the AP.

“While this study looks at one bank, America’s 6,000 banks set a very high bar when it comes to the honesty and integrity of their employees. Banks take the fiduciary responsibility they have for their customers very seriously,” the Association said.

[AP]

TIME Japan

Japan Sinks Into Recession (Again)

A man holding a shopping bag walks on a street at Tokyo's Ginza shopping district
A man holding a shopping bag walks on a street at Tokyo's Ginza shopping district on Nov. 16, 2014 Yuya Shino—Reuters

An unexpected contraction in quarterly GDP shows that Prime Minister Shinzo Abe’s radical economic program is badly broken

If anyone is still holding out hope that Abenomics — the unorthodox slate of economic policies named after their inspiration, Japanese Prime Minister Shinzo Abe — could rescue Japan from its two-decade slump, the news on Monday should dash it. The troubled economy surprised analysts by (once again) tumbling into recession. GDP in the quarter ended September shrank by an annualized 1.6% — far, far worse than the consensus forecasts. That followed a disastrous 7.3% contraction in the previous quarter. Speculation in Japan is that the bad results will push Abe to call a snap election only two years after taking office.

What’s going on in Japan is important for all of us. Since the economy is still the world’s third largest (after the U.S. and China), a healthy Japan could provide a much needed pillar to growth in a struggling global economy.

The current downturn is being blamed on a hike in the consumption tax, implemented in April to try to stabilize the government’s feeble finances, which slammed consumer spending. It is now expected that Abe will delay a further increase in that tax scheduled for next October. But the real causes lie much deeper — in the failings of Abe’s economic agenda.

The idea behind Abenomics was to boost the economy with massive stimulus from the Bank of Japan (BOJ) and the government combined with structural reform of the economy, or what has been called the third arrow. The problem is that we got the first two arrows, but not the third. While the BOJ kept its printing presses rolling, dramatically weakening the value of the yen, badly needed deregulation and market-opening has come extremely slowly. Some critical changes, like a loosening of labor laws, seem to be off the menu entirely. The result is that the actual potential of the economy has not been enhanced. Meanwhile, the welfare of the average Japanese family hasn’t improved either. Wages haven’t advanced much, while prices have increased.

If Japan’s situation proves anything, it is the limits of central bank policy to fix economies. Despite a torrent of cash infused into the economy through the BOJ’s “quantitative easing” or QE, Japan’s economy remains mired in slow growth and stagnant household welfare. That’s why it is hard to imagine that the BOJ’s October decision to increase its QE program will make a major difference. So that’s the takeaway for policymakers in the U.S. and especially a stumbling Europe: If you’re going to rely too much on central bankers to revive growth, you’re going to fail.

The question facing Abe is whether he can press ahead more quickly with important reforms, either in his current administration or after a fresh election, which his party will still mostly likely win. Based on his recent track record, we don’t have reason to be confident. But maybe one day Japan will give us a surprise — in a good way.

Read next: It May Be Too Late for Japan’s PM to Fix the World’s Third Largest Economy

TIME China

China Stock-Market Link Shows Promise and Frustration of Beijing’s Reforms

A banner introducing the Shanghai-Hong Kong Stock Connect is displayed in front of a panel showing the closing blue-chip Hang Seng Index at the Hong Kong Stock Exchange in Hong Kong
A banner introducing the Shanghai–Hong Kong Stock Connect is displayed in front of a panel showing the closing blue-chip Hang Seng Index at the Hong Kong Stock Exchange in Hong Kong on Nov. 10, 2014 Bobby Yip—Reuters

The new connection between the exchanges in Shanghai and Hong Kong is another small step toward prying open China’s financial system to the world

When Great Britain handed Hong Kong back to China in 1997, it did so under the formula of “one country, two systems.” Though officially controlled by Beijing, Hong Kong maintained a separate governing, legal and financial system from the mainland. Starting Monday, however, the relationship is changing to something more like “one country, two a-bit-more-connected systems.”

That’s because of Shanghai–Hong Kong Stock Connect, a pilot program that is linking the stock exchanges of the two metropolises together. For the first time, investors in Hong Kong and China will be able to directly trade shares on each other’s stock markets.

This may sound like an arcane event in the heady world of global finance, of interest only to a few local traders. But it’s not. Even though China is the world’s second largest economy, its financial system and capital markets remain fairly closed off. Controls limit flows of money in and out of the country, while foreign investors can buy Chinese shares only on a highly restricted basis. The Connect program is a step in a much bigger process with much bigger implications for the global economy — opening China up to international finance and upgrading its financial markets. The Stock Connect scheme “should increase the scale and relevance of these markets and also improve market efficiency and the robustness of China’s financial system in general,” HSBC equity strategists noted in a recent report. “We also believe the co-operation between Hong Kong and Shanghai shows the way forward for other markets in China — i.e. a coordinated and controlled approach to opening markets.”

If Beijing continues to reform its financial system — as its top leaders have pledged — the consequences could be huge. Already a titan in manufacturing, a China with a more open, professional and market-oriented financial sector could also become a major player in international banking and other services. Just as newly wealthy Chinese shoppers are reshaping global consumer markets, Chinese investors, once able to more freely take their money out of the country, would become much more important on the world stage too. HSBC, in its report, pointed out that if the Hong Kong exchange was integrated with China’s bourses (in Shanghai and Shenzhen), it would be the second largest stock market in the world, based on the combined value of their listed companies.

That is, of course, in theory only. China never employs the big-bang strategy when it comes to reform, and the Connect program is no different. At the start, the amount of money flowing through the scheme in either direction has been capped, to about $49 billion into China and $41 billion into Hong Kong. That may sound like a lot, but in fact, each figure is the equivalent of only 1% of the total capitalization of the markets in China and Hong Kong. Many investors may dither on the sidelines for the moment since there is some remaining uncertainty over how the scheme will actually operate.

Most analysts also doubt the scheme will be expanded quickly. “The Connect scheme has the potential over the medium term to become an important conduit for flows into and out of China,” commented Mark Williams, chief Asia economist at research firm Capital Economics. However, “most likely, the Connect scheme will be scaled up only slowly. And it has been devised so that flows will be monitored and could be curtailed if they threatened market or economic instability.”

So like much of China’s recent reform efforts, the promise of what could be and the reality of what actually is differ greatly. On a certain level, that makes sense. If China threw its unsophisticated and ill-prepared financial system to the trials of global money flows, disaster could result. At the same time, Beijing’s policymakers introduce change in such tiny steps it’s hard to tell when they might actually get somewhere.

TIME India

Indian PM Narendra Modi Greatly Expands His Cabinet

India's President Mukherjee, PM Modi, new cabinet ministers Manohar Parrikar and Suresh Prabhu pose after a swearing-in ceremony in New Delhi
India's President Pranab Mukherjee, Prime Minister Narendra Modi, new cabinet ministers Manohar Parrikar and Suresh Prabhu pose after a swearing-in ceremony at the presidential palace in New Delhi November 9, 2014. Prakash Singh—Pool/Reuters

The dividing of the defense and finance portfolios, previously united in the person of Arun Jaitley, is the main change

Indian Prime Minister Narendra Modi moved to give fresh focus to the country’s economic growth on Sunday, with a cabinet reshuffle that added 21 new ministers to his government.

The major change came in the portfolios of finance and defense, both previously held by Arun Jaitley — a senior leader in Modi’s Bharatiya Janata Party (BJP). Modi’s original decision to place Jaitley at the helm of the two vital ministries had been slammed by critics and opponents, who said Jaitley wouldn’t be able to do justice to either.

Jaitley has now been relieved of the defense portfolio, enabling him to devote more time to the Finance Ministry and help fulfill Modi’s planned economic turnaround.

Former Goa chief minister Manohar Parrikar, a 58-year-old widower with a no-nonsense reputation, has been named India’s new defense minister.

The cabinet expansion now means Modi’s council of ministers numbers 65 instead of 44, according to Reuters.

During his election campaign, Modi laid an emphasis on a more streamlined decision-making machinery at the top in order to function more efficiently and effectively, in a strategy called “minimum government, maximum governance.” But some media point out that the new council of ministers is not that much smaller than that of the previous government.

Nevertheless, India’s business leaders by-and-large expressed their approval at the changes.

“The cabinet expansion sends out a strong signal that the government under Prime Minister Modi is serious about accelerating the reforms process,” said Ajay Shriram, president of the Confederation of Indian Industry.

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