Halfway Point for the UPA

The Way Things Are Going…

When the Congress Party came to power nearly three years ago, middle class hearts were gladdened. Having supported the Neanderthal Democratic Alliance led by the BJP, many were dismayed by the 1998 nuclear tests, following which India became a pariah of the international community. In 2004, the Congress-led UPA won a mandate. Tragically, the Congress think tank, which consisted largely of people who played the role of the palace guard for 10 Janpath, interpreted the result as a vote against the BJP’s “India Shining” campaign.

The Congress continues to believe that Indira Gandhi was their talisman with her garibi hatao and her 20-point program. They see in Sonia Gandhi glimpses of Indira, when really she represents a continuation of her husband Rajiv Gandhi’s vision of ushering India into the 21^st century. Many of us who worked closely with him remember when he met Jack Welch, the head of GE, who started the first BPO operation. The rest is history. Today, we are not just the world’s back office; we are solving complex business problems on the basis of our information technology expertise.

Yet the Congress rank-and-file believes that the socialist nostrum is the way forward. They now talk about “inclusive growth.” There can be no denying that the fruits of India’s screaming economic success, led by the BPO industry, should also include the poor and that the government must play an active role in ensuring that they are equally distributed. But that’s not why the BJP-led NDA coalition was defeated. The middle class that voted it into power in 1998 deserted them, frightened by the communal agenda and more so by their incompetence in governance.

The BJP sees things in black-and-white: they propagate that the Congress is an anti-Hindu party and seek votes by raising the basest communal passions that were tweaked by the Partition. The Congress also takes a similar zero-sum view and pits the rich against the poor, stoking the fires of class conflict. It is unable to shake the Soviet mindset of state control over all aspects of human endeavor.

Both parties tend to ignore the middle class. In the old days, the middle class was small and easily forgotten; today it is a substantial, creative force that chose to oust the communal die hards of the BJP. And this is the very group against which the Congress seems to have taken up cudgels, with its divisive agenda of class and caste differences. It has increased taxes, squeezed credit and supported irrational quotas based on caste.

Neither party has taken into account the aspirations of this fastest growing segment of the population. There is something abroad in the world; it’s called the India story. No political party seems to understand it. After Manmohan Singh, as finance minister, scrapped Soviet-style controls on private enterprise in 1991, the economy boomed. Unfortunately, the sacking of the Babri Mosque derailed the reforms the very next year. The economy began to drift and that saw the comprehensive defeat of the Congress in 1996 and the emergence of carpetbagger politicians, who slept in different political tents every night.

In 1996-1997, there were two weak Congress-backed governments under whose dispensation the bureaucracy was able to stall any further reforms. In 1997, when it was clear that the Gujral-Deve Gowda regime had run it course, the bureaucracy unleashed a series of demand management measures including a rise in interest rates that reined in the growing economy. The recession that followed lasted until 2003. In the interim, BJP-led coalitions came to power but proved unequal to task of reigning in the demand managers. It resorted to ad hoc measures such as the poorly designed national highway program. In the event, the BJP-led NDA crashed to defeat in the 2004 election.

For two years, the UPA government focused on setting things right. But the internal contradictions in the Congress and the nihilism of the Left saw its goodwill erode. The Congress is losing elections everywhere but its sycophantic leaders believe that Rahul Gandhi will deliver them from the morass of ignorance and intrigue that is sapping the party. Such complacency will cost them dearly.

from daily news and analysis april 18 2007