Outdated postures of politicians disappoint PM

Almost as if he were talking to himself in a fireside chat, Prime Minister Manmohan Singh spelt out the economic reforms that were incomplete, partially complete and the areas that needed attention.

The PM was addressing a jury of his peers, economists who had gathered from all round the world to attend the 25th anniversary of the Indian Council for Research on International Economic Relations (ICRIER).

Gently ruing some colleagues, presumably the Left parties, for their antediluvian attitudes and their tendency to "live in the distant past" Singh said there was a new world out there, research about which was just waiting to be done.

This list was long. He wanted ICRIER to actively participate in the public debate on India's place in the world and the consequences of increased global interdependence.

"I have not seen adequately informed discussion at home on the pros and cons of the recent restructuring of voting rights within the IMF. Nor on the Asian Monetary Union that is being discussed in some circles. Nor, even more importantly, on India's place in the new world order," he said.

Singh said expertise was needed on economic trends in East and South-east Asia, West and Central Asia, Africa, Latin America, Europe and North America.

"We need to look at the effects of an Asian Economic Community or a Pan-Asian Free Trade Area. We need to examine the effects of the larger number of Free Trade Agreements we are entering or planning to enter into," he said, adding that their cost and benefits need to be compared to those of a simpler multilateral system.

Underscoring the need to develop expertise in the region, Singh said there was a need to have a sharper focus on development trends in China and their consequences.

The PM pointed out that trade in services was another area which was less researched considering its growing importance in India.

"In the last decade, services trade and inward remittances, have not only outperformed merchandise trade, but have kept our balance of payments in a comfortable zone. We cannot underestimate the importance of this for our macro economic management," he said.

He said researchers should also focus their attention on the reverse brain drain or reverse migration of talent which would happen as Indian economy modernises. He said questions about what policies were needed to encourage this, the implication for various sector and regions should be explored.

But lack of appreciation among political leaders of the changing nature of India's relationship with the world and postures adopted by them was "out of line with our current interests," he said.

"Very often, we adopt political postures that are based in the distant past and are out of line with our current interests as an increasingly globalised and globally integrated economy," he said without naming any party.

India, he said, was destined to be more globally engaged and more integrated with its own region.

"Even today, our energy security is closely intertwined with our political relations with a wide range of countries around the globe. Our food security, indeed our national security, are closely linked to developments around the world," he said.

Lamenting the political impediments coming in the way of economic policies, he warned of adverse consequences in India's global integration.

He said congested ports and other creaky infrastructure were more of a threat to India sustaining a high pace of growth than a slowdown in the global economy.