Congress’ bogey of economic reforms




VIEWPOINT
AMITABH SHUKLA



After a Cabinet reshuffle and a brainstorming session called samvad baithak, Congress believes it is battle ready for 2014 even though the next agenda on card is the Assembly election of Gujarat, barely a month from now.

If Congress wins Gujarat then barring any serious political accident, no party can prevent UPA from coming to power at the Centre for the third consecutive term in 2014. The grand old party would be on a roll. On the other hand, even if the ruling BJP is returned to power in the Narendra Modi led State, it cannot be assured of leading a coalition Government of the NDA in New Delhi. BJP, in any case, takes the support of the voters in the State for granted.

The results of Himachal Pradesh and Gujarat would be announced at the same time, in the third week of December. Leave Gujarat, even in Himachal Pradesh, BJP has an edge given the fact that no one is ready to accept the logic of so called economic reforms —hike in the prices of diesel, putting a cap on subsidised LPG cylinders FDI in retail or whatever is there in store for the people. Even die-hard Congress supporters won’t support the Government on LPG cylinders as the entire move looks so illogical from the outset. It cannot bury the charges of corruption simply because it is too big an issue to be brushed under the carpet.

So it appears that the Congress wants the two elections of Himachal and Gujarat to become a referendum on the economic policies of the Centre, sort of laboratory experiment for the party for the future course of action. It wants the voters to forget scams of Commonwealth Games, 2G spectrum, Robert Vadra’s questionable land deals and diverting party funds for National Herald newspaper.  If Congress loses both the States, it can safely abandon the economic reforms, which primarily means removal of subsidies. Politically, both the states don’t matter to the Congress as of now for the simple reason that it hardly has any ambitions in Gujarat which is in the stranglehold of Modi and in Himachal, it can always camouflage its loss by inventing a series of reasons.

I am surprised the way Congress is pushing for the so called economic agenda which in electoral terms are potential disasters. On November 4, it organised a rally in New Delhi not to counter the serial allegations of corruption, wrong doing and irregularities but to support FDI. I don’t think any person would understand the logic of reforms if he is asked to pay around `980 for a LPG cylinder, two and half times the existing rate. What were you doing in the last 8 and half years, people would ask. You could have increased the prices of LPG by `50 every year and this wouldn’t have pinched the pockets of the people the way it would now. But simply, you did not have the guts to do so. Similarly, you turned a blind eye to diesel all these years. You could have increased the prices by `2-3 every year if indeed the oil companies are not passing on their inefficiency to the consumers of LPG and petroleum products.

At the end of the day, all economic policies are aimed to benefit the people and the voters would ask how a particular decision would benefit them. No one would understand the jargons of fiscal deficit, growth rate, subsidies etc unless they see something concrete in front of them helping them get more employment, access to resources and bringing down the rate of inflation. Can you tell a hungry person that he should bear with his hunger as he will get cake and sweets to eat after five years?

Lackluster performance notwithstanding in the last over 8 years, Manmohan Singh is clearly dominating the policy making decision and is influencing the party as well as the Congress president. My suspicion is that the so-called economic reforms would have the same impact as the Indo-US nuclear deal in 2008. Singh staked his government for that deal, the Left withdrew support and we were told that once the deal gets through, there would be power all around for every village, every person. Four years down the line, no one even talks about the deal any more. It has ceased to become an issue at all. No Government or Congress spokesperson ever mentions the thousands of megawatt of power we were supposed to get through nuclear energy. I find both the Indo-US nuclear deal and the economic reforms in the same league — far removed from the issues at the grassroots level politics which helps the party consolidate its base.

Then what could be the reason of the nuclear deal in 2008 and the economic reforms in 2012. The answer perhaps could be diversionary politics, an art which the ruling party has mastered. In 2008, the nuclear deal was not important but getting rid of the Left was. Getting the support of Samajwadi Party and the BSP too was important then as the country was heading for the 2009 elections. The Congress Government at Centre was not bothered about the so-called benefits of the nuclear deal but was certainly interested in realignment of the political forces ahead of the general elections.

A similar situation prevails in 2012 when elections are a year and half away and the government is facing a crisis of credibility, rocked as it has been by a series of allegations, some of which were directed right at the doors of 10 Janpath. You need something to divert the attention of the people. And it was in such a situation that the bogey of economic reforms came handy for the Government and the Congress. The UPA will abandon it the moment the voters forget the mega scams. This is what history suggests. (November 12, 2012)

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