Is this the end of economic reforms?

DEBATE

The Congress invokes the West Bengal example to suggest the Left will come around, but other allies are proving even more embarrassing.

ARUN JAITLEY,
Former Minister of Disinvestment

It is not the end of reforms, but the end of Manmohan Singh's claim to be a reformist

It is not the end of reforms, but the end of Prime Minister Manmohan Singh's legitimacy to lead and the end of his claim to be a reformist. To say whether it is the end of reforms, we must see what reforms have done. They have unleashed an energy, hugely increased the GDP, brought the country out of shortages, created a surplus, and provided a plurality of choice. Reforms have brought down prices, whether they are telephones, education, automobiles or other goods and services.

If we see the Indian graph, services are growing at 9 per cent, inspite of the government, simply because the services sector does not require it. Manufacturing needs government in terms of creating infrastructure and reasonable taxation and trade. This government has failed to deliver on three grounds. From 1994 to 2004, taxes gradually came down. From 2004 onwards,

P Chidambaram has proven to be a high-taxation finance minister. You can't even blame him because he has to foot the bill of Sonia Gandhi's NGO-driven agenda!

Reform is the art of the possible. If the prime minister takes many decisions, of which a few are unimplementable, it is not a matter of concern, but one should not adopt a do-nothing approach.

The current set of events only prove that Manmohan Singh is not a natural leader, therefore, the party does not stand by him. He is a safe defensive player with careerist aims. He believes that the only way to avoid mistakes is to do nothing. Neither his ministers nor his allies hold him in awe. They set the agenda and he caves in.

The Indian prime minister must be held in awe, he cannot be a sheep in sheep's clothing. The basic premise on which reformists function is like the Nike slogan "Just do it", and others will rally around you. Leadership is the art of deciding and implementing decisions. It is not the art of postponing decisions by waiting for consensus.

Manmohan Singh's ability to lead is highly doubtful. If status quo preserves his job, he will be a status quoist. But then global experience has shown that there is only one road to growth, that of liberalisation. India needs economic activity, which is generated by investment, both domestic and foreign. We have to create an environment for profitability, since that creates jobs, provides government with revenue, with which the government creates infrastructure.

It is only a government with revenue that can undertake social sector schemes. This is the only road to growth. Those who block this are wasting a historical opportunity. The difference between Sonia Gandhi and Manmohan Singh is that while she hasn't realised that this is the only way to growth, he does, but unfortunately can do nothing. Those who create obstacles in the path of reform look for leaders who are willing to blink. Manmohan Singh has proven to be too willing to blink.

As told to Nistula Hebbar

ASHWANI KUMAR,
Minister of State for Industry

Challenges to reforms are inherent in a coalition, and dialogue offers the way forward

Economic reforms are here to stay and this process will continue. The announcement to put on hold the process of disinvestment in response to the felt sensitivities of the constituents/allies of the UPA is, as always, in keeping with both the challenges and the convention of a coalition government.

The PM is expected to engage with our allies to find a way forward so that economic prudence and political perceptions converge to make a win-win situation for India. I think the time has come to collectively ensure that fundamental economic policies are not negated at the altar of political exigencies.

The sagacious UPA leadership and the prime minister can be expected to find a meeting ground between different perspectives so as to enable India to achieve its full potential. Challenges (to reforms programmes) are inherent in a coalition government, which includes the challenges of consensus-building. I do believe that through dialogue and regular communications between allies, including the Left parties, a way forward is possible. After all, West Bengal is a classic example of the successful implementation of economic policies, which are not different from what the Centre (UPA regime) seeks to follow.

In my personal view, the letter and spirit of the National Common Minimum Programme (NCMP) permits partial divestment (as against privatisation of profit-making non-navaratna PSUs) as long as the government retains majority control over their management. In my personal view, flexibility in labour policy that does not necessarily mean a hire-and-fire policy will lead to greater avenues for employment and in all such areas the government will seek to build the widest possible consensus. Further reforms in insurance and banking sector will also have to be based on the widest possible political consensus. It is possible through dialogue and discussion to proceed further on this course of economic reforms as mandated by and endorsed in the NCMP.

All governments seek to build the widest possible consensus on economic policies so as to make them enduring and sustainable on a long-term basis. This is particularly true in a democratic polity where governments are committed to responsive and accountable governance. The Congress president and the UPA government remain totally committed to an inclusivist growth of the Indian economy and to the common man who is the centre of its primary concern. Our ultimate objective is to encourage employment generation capacities in the country both in private and public sectors. The Congress as the premier political party of the country has always encouraged freedom of thought and ideological preferences to be expressed within the party. Eventually, however, the decision of the leadership is final and invariably respected. The only non-negotiable premise of the Congress Party remains the welfare of aam aadmi.

As told to Deepak Kumar Singh