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Thursday, May 21, 2009

From The Times of India, May 21, 2009

TOP ARTICLE The Decency Option
Election Result Is Key Step in India’s Political Evolution

21 May 2009, 0010 hrs IST, RAJIV DESAI

On Sunday, television viewers witnessed the denouement of the media's noisy and often distorted coverage of the elections to the 15th Lok Sabha.

Just an hour or so after counting began, it became clear the Congress was on its way to a renewed and enhanced mandate. Some saw this coming; indeed, it was there for all to see. The election had taken place under the most extraordinary circumstances: an acute global financial crisis and the aftermath of terror attacks in Mumbai late last year. It was fairly obvious that voters would plump for stability by providing a decisive verdict as they had in 1977 and 1984.

Like the one in 2009, those two elections were held at a time India felt its future was at stake. In 1977, voters decisively rejected Indira Gandhi after she suspended the Constitution, jailed political opponents and muzzled the press during her two-year Emergency. Seven years later, after she fell victim to the bullets of her Sikh bodyguards, the electorate gave her son Rajiv the biggest-ever mandate. These two extraordinary outcomes were useful in predicting the result of the most recent parliamentary election.

One of the most stirring moments in the post-result euphoria was when Prime Minister Manmohan Singh told reporters assembled at 10 Janpath, Sonia Gandhi's residence, "I urge all the political parties to forget their past disputes...We should stand one as a nation." The comment is important because it represents the return of civility in pairs. Unlike the triumphal note the BJP, the Left and various regional formations customarily sound on their various victories, Singh's sober tone signalled his intention to steer a conciliatory course in his next term. Under the new dispensation, public discourse would move beyond matters of probity to decency in public life. This is a major step in the evolution of the political system.

Sadly though, various self-important Congress factotums hit the high registers of arrogance in their dealings with former allies like Lalu Prasad and Mulayam Singh Yadav and with current supporters like the DMK.

This acrimonious beginning raises troubling questions about the future. The vindictive elements need to be reined in swiftly. Unchecked, their arrogance could undermine the new credibility the Grand Old Party has won. If the Congress is to implement what P Chidambaram called its "crisp" manifesto, it will need broad support from the non-Left, non-BJP members of Parliament.

So what's on tap? Take monetary policy. With the resurgence of investor confidence, the Reserve Bank is likely to cut interest rates to facilitate the flow of credit into the domestic economy. In the event, it must also provide incentives to banks to lend to businesses, especially cash-starved small and medium enterprises.

Concerning fiscal policy, huge investments are needed in surface and mass transport, civil aviation, sanitation, water supply, power generation and what have you. One obvious way to raise funds is to sell public sector assets. The railways, ports trusts and various other agencies own vast tracts of prized real estate that could fetch princely sums. The telecom department is widely known to have the biggest network of auto repair shops in India. The tourism ministry's crumbling hotels are obvious targets of divestment as are government-run airlines.

Hobbled by the Left and its fellow travellers in the Congress and its allies, the government hedged its bets on attracting foreign investment. Complex bureaucratic hurdles made FDI dwindle in sector after sector. In retail, insurance, pensions, civil aviation, you name it, opening up remained at best an unfulfilled promise. Ominously, the commerce ministry's Kamal Nath breezily told a television channel, "We already have a liberalised (FDI) regime." He followed that up with a clear no on retail sector reform.

On higher education, despite the National Knowledge Commission's recommendations, policy remained confused and corrupt, dominated by a venal bureaucracy (the All India Council on Technical Education comes to mind) and obtuse politicians. The sluggish human resources development ministry, by its acts of omission and commission, spawned the paradox of growing unemployment despite a huge demand for qualified personnel.

With trade, India adopted the spoiler's role at World Trade Organisation conferences, playing the victim of rapacious developed countries. The rhetoric employed was from another era, when India played a prominent role in the Group of 77, the commercial foil of the Non-aligned Movement. Without the Left calling the shots, its acolytes in the Congress-led ruling coalition will find themselves adrift. It is likely that India will pursue a more reasonable line.

On foreign policy, the strategic alliance with the US, embodied in the nuclear deal, achieved a long-standing objective: to overturn the discriminatory non-proliferation regime. In the neighbourhood, South Block welcomed US pressure on Pakistan seeking to curb its military's anti-India fixation and focus attention on domestic problems caused by a resurgent Taliban. In Sri Lanka, India supported Colombo's final assault on the LTTE ridding the region of a major terrorist force. In Bangladesh and Nepal, the approach has been somewhat mixed, lacking strategic focus.

Despite the show of hubris by vindictive apparatchiks in the Congress and nagging doubts about its leftist bloc, the overall message is that the election results are a game changer.



copyright rajiv desai 2009

Tuesday, April 14, 2009

Cutting Through the Election Noise


Confusion Has Made its Masterpiece


A burgeoning middle class, a slowing economy, a creeping intolerance, a terrorist challenge, and a growing voice in the world: these are the challenges and the opportunities that face the country as it prepares for the next general election. Yet the issues being raised in the campaign are largely about caste and religion; the debate is about yesterday, not even today.


The BJP is floundering over Varun Gandhi’s intemperate outburst against Muslims, afraid to alienate its communal “base” and worried about losing the new middle class support it has gained in the past decade. It went ballistic over the shoe-throwing incident at a Congress press conference and sought to revive, after 25 years, anger over the anti-Sikh riots that followed the assassination Prime Minister Indira Gandhi in 1984.


Perhaps the worst case of the BJP’s growing irrelevance is Gujarat chief minister Narendra Modi, who, in a recent campaign speech, pejoratively called the Congress Party a 125-year-old woman. Modi is not just the fascist shame of Gujarat; he is obviously prejudiced towards women and old people. We know that like Shakespeare’s pathetic Macbeth, he harbors ambitions of being Prime Minister.


Given his intemperate ways, Modi is a poor player like bloody Macbeth, who “struts and frets his hour upon the stage …full of sound and fury, signifying nothing.” Meanwhile, Gujarat, like Macbeth’s Scotland, “sinks beneath (his) yoke. It weeps. It bleeds and each new day a gash is added to her wounds.”


Commissars of the Left and bosses of various regional factions are pushing aggressively for a “Third Front” government that excludes both the Congress and the BJP. Chieftains of the various caste formations in the Hindi heartland are busy posturing over the prospect that their “Fourth Front” could emerge as a key power broker in the event of a hung Parliament. Neither front has a coherent strategy except to fish in troubled waters.


As always, the Congress maintains a stoic silence amid the din of its rivals; its game plan is to emerge as the single largest party and then gain adherents from the various fronts. Amazingly, it has never been forced to defend its record of governance in the past five years. Its economic policies have included questionable populist giveaways and timid monetary policies. Its foreign policy has been reactive and tactical in the face of challenges from all around the neighborhood including Pakistan, Bangladesh, Sri Lanka and Nepal.


More than at any other time, there seems to be a complete disconnect between politics and the new reality. The nearly 20 million new voters of 1991 vintage have grown up in an India where possibilities are endless. More important, they believe that tomorrow has to be better than today. This is in stark contrast to the generation of “Midnight’s Children.” We were wracked by uncertainty so we voted with our feet and pushed off overseas, ostensibly to study but truly to make our fortune.


Today’s children want to go to America like we did. The difference is they want to gain skills and expertise and come back home to lucrative jobs. Their worldview is different. Never mind if they are rural poor, urban slum dwellers or middle class youth. They have no patience; they want it all and they want it now. The political class simply doesn’t understand this driving force largely because it runs on a feudal ethic.


Also in evidence is a curiously cynical lethargy: not a single party has outlined a plan to deal with the rapidly growing middle class and the concomitant demands for good governance. Mindsets of yesteryear preclude the recognition of the middle class. The focus is exclusively on the poor, one segment of the population that is declining in number. This particular quirk is the single most powerful sign that the political class is out of touch with the rapidly changing demography.


Consequently, voters must decide without the benefit of an informed debate on the issues. This election is the first one in which men and women born in 1991 will cast their votes. This is a brand new generation that has grown up in an era of liberalization and globalization. Seen against the rise of a 300-million-strong middle class, it is clear that a consumer economy is taking root.


What’s worse, the media simply don’t get it. Thus we are told that Mayawati is a candidate for the top office. This is simply incredible. With the 30 or 40 odd seats she may garner, mostly in Uttar Pradesh, it is difficult to imagine such an outcome. Yes, V P Singh, Chandra Shekhar, H D Deve Gowda and I K Gujral did make it. All of them were supported on the outside by the Congress or the BJP. They ran rump governments that lasted few months.


It ain’t gonna happen with Mayawati, who wins sympathy as a Dalit woman but is nevertheless accused of milking her supporters to build statues of herself. Shamelessly, she has built herself a Xanadu-like palace called BSP House on Delhi’s pricey Sardar Patel Marg. Just because you happen to be a Dalit woman doesn’t mean you cannot be questioned on ethical considerations. It’s all very well to say that everyone’s corrupt in the political domain. But why should the same scrutiny not apply to her?


Whatever the pundits say, it is clear that neither Advani nor Mayawati, never mind the other pretenders, is about to become the next Prime Minister.


A Version of This Column Appeared in The Times of India, April 14, 2009

copyright rajiv desai 2009