M K Dhar
Amid the prevailing economic gloom, Prime Minister Manmohan Singh was right in highlighting the link between development and national security and stressing the need to develop a political consensus on crucial issues. Indian economy can not escape the adverse consequences of global meltdown and there is very little that can be done to check its fallout. The rupee has been under pressure for months and has devalued vis-à-vis hard currencies by nearly 20 percent in one year. Exports are stagnant, industrial growth is showing signs of decline and projects of Gross Domestic Product have been revised downward to 6.7 per cent during the current fiscal year from 7.1 per cent last year, though some insist that growth may not exceed 5.3 per cent.
It is a bleak scenario because decelerating growth has adverse social consequences as well, such as, fall in employment and investment in the economy, urban unrest, scarcity of resources and failure to meet the Government’s revenue targets due to shortfall in tax collections. While the Government must share part of the blame for not treating the opposition more seriously and involving it in decision-making on crucial reforms, the role of UPA’s adversaries too has been much below expectation. Desperate to return to power, it is exhibiting undue haste to demolish the Government, whose tenure lasts till 2014, and the BJP’s bagful of prime ministerial candidates would stop short of nothing to win the coveted trophy, which may not come handy despite the predictions of many saffronite soothsayers. Already the names Nitin Gadkari has announced of BJP’s aspirants for the plum post has led to a rat race among them, with each exhibiting unprecedented hostility to the Government and outdoing the other in vehemence and vituperation.
In a democracy, transition should be smooth and orderly and not chaotic and destabilizing through unleashing extremist and communal forces, promoting unrest and street-level politics. Today’s opposition could be in power tomorrow and it will not escape the consequences of chaos and anarchy it might create to further its interests. The nation’s interests should always be considered supreme, and not that of any party or individual, however venerated or frustrated he or she may be. The game of politics should be played by its rules and not with the help of undemocratic forces camouflaged as social reformers and religious preachers, playing religion-based politics has cost the BJP dearly and it may continue to reap its unsavoury consequences for many years to come.
Corruption, both administrative and political, is an important issue and must be tackled with full force. The reports of the C&AG have done well to highlight wrong doings in the matter of allotment of 2G spectrum and coal blocks. The Government has the right to defend its action taken in good faith, but it must realize that the general public is not satisfied with any alibis. The rot must be stemmed forthwith and procedures for allocation of national assets made completely transparent and profitable. No umbrage should be taken to such reports, however inconvenient the Government finds them, because it is the professional duty of an auditor to point out faults in the working of a administration that causes losses to the national exchequer, and not to praise it. The only logical follow-up can be to amend procedures that leave loopholes for favouring select corporate and to ensure optimal utilization of resources for the nation’s benefit. The UPA Government should lose no time in applying the correctives and changing rules and procedures. By doing so it will benefit at the polls if people are convinced that mistakes have been corrected and corruption seriously tackled. It can continue to defened what is defenceless only at great cost in political terms.
It should not get distracted from the task of attending to economic management because growth, which is essential for political stability, must continue and be accelerated to avoid paying costs. Past year’s developments in Europe have shown economic malaise cannot be cured by changing Governments, which some countries have done, but the situation remained the same, calling for drastic austerity measures and bailout packages. It is unpopular to cut subsidies on fertiliser, petrol, diesel, LPG etc but such action has to be moderated with lessening the burden of the poorer sections through other ameliorative measures. To an extent such subsidies are unavoidable, for which the Government must raise resources to balance its budget and provide for large allocations on the social sector. This calls for rigorous enforcement of tax laws to check evasion and a thorough overhaul of the tax collection machinery, which has become corrupt to the core. Better compliance and enforcement alone could nearly double the Government’s revenue and there would be little need for additional taxation at least for some time.
Investment in atomic power generation has come to a halt because the opposition would not allow the Government to provide them certain guarantees. Foreign investment is needed to modernize some Indian industries to enhance their competitiveness. The Government is unable to bust the myth spread by some interested quarters that allowing global retail chains to set up stores in India will drive all small retailers out of business and ruin farmers; while the truth is otherwise.
The suggestion is resisted by some corporates, who have their own plans of opening mega stores, and the established institution of middlemen in agricultural and horticultural business. In countries where Wallmart and others have opened stores, they have not taken even one per cent of the retail business – the rest is still in the hands of small retailers who do flourishing business in any modern city. Such retailing would benefit both the farmer — who would get a better price for his produce – and the consumer, who would pay lower prices for his purchases. But the anti-lobby, of which some political parties are captive, would not allow this. These parties are also opposing reform in the mining sector whose unscientific exploitation in the hands of unscrupulous businessmen have led to losses in production and to the national exchequer. Infusion of technology would not only enhance production but also prolong the life of the precious resources. Political parties are hand in glove with the mines mafia which finances their huge election budgets.
The situation being what it is the Government, which is duty-bound to govern, must start an across-the-board dialogue with the opposition on reforms and evolve a consensus on what is doable in the nation’s interest. The BJP, in particular, may be in desperate hurry to demolish the Government even before 2014, but it also owes a duty to the nation not to do anything which militates against its interests. Even according to Mr. L K Advani, it has little chance of returning to power: hence the need to enhance its credibility and image and being seen as doing what helps the nation’s interests and not harm them. One might recall the time when VAT was first introduced and the States were given the option to introduce it, or not. All BJP-ruled states opposed VAT tooth and nail, only to realize after a couple of years that they were harming their and their states’ interests by not introducing it, which they did, one after another, in a matter of months making VAT universally applicable.
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