The thing about politics is that you are damned if you do and still damned if you do not do. Take the case of Prime Minister Manmohan Singh, who has been under fire for his government’s ‘policy paralysis’ and further attacked personally by the opposition parties with all sorts of names and description. A few months back even the media, in this case Time magazine, called him as an “underachiever”. In fact following the report carried by Time magazine, this column had actually suggested that it was time for Manmohan Singh to move on from the job he was assigned to by the Congress President and UPA Chairperson Sonia Gandhi. However the Morung Express commented that “if he continues to remain in office, which presumably he will, he should at least stand up to lead—be proactive and bold. Show some muscle”. And this is exactly what has happened—the Prime Minister has introduced the boldest reforms yet in his current term - foreign super-market chains can now enter India and foreign airlines can buy stake in Indian carriers. The Manmohan Singh government finally muscled its way into taking key policy decisions to bolster economic growth and make India a more attractive destination for foreign investment. This may be bad politics but as mentioned the “economic imperatives far outweigh political expediency”. The dramatic announcements came a day after the government took the politically tough decision to hike the price of diesel by Rs. 5 per litre and also capped the supply of subsidized liquefied petroleum gas (LPG) cylinders to six per household.
Given that politics is about elections, vote banks and populism, it takes courage to take such hard decisions. Populist measures and unnecessary wasteful expenditure (subsidy bill) must be cut. It is not surprising that a political offensive has been launched by political parties of all hue and colour to capitalize politically on what can be taken as good economics but bad politics. In fact the latest decisions have finally brought cheer to Industry and the markets, which surged in anticipation of reforms. While this column does not necessarily trumpet unconditional support for economic reforms, the elected government of the day should be given the leeway to take decisions that is in the overall interest of the country and not necessarily for a particular section only. The government is answerable to the people through Parliament and can be voted out of office. And even if one argues that such reforms will hit the amm admi (common man), there are already a slew of government measures in place that cater to this section—to act as safety net for the poor. Yes in a country that still struggles to fight poverty, economic reforms must have a human face to it. What is required is an even handed approach to solving the country’s economic problems. The political opposition should not remain backward-looking or ‘anti-reforms’ just for the sake of making a loud political statement. The way forward should be about meeting the needs of the new economy while continuing with the bigger concern for inclusive growth and social equity.
