Politics over Economics — putting reforms in backseat

Politics over Economics

We may praise them, we may criticize them...but it's a fact that India's eco-politics has had its share of successes and blunders on its way to where we stand now. Time to time political stands attracted bitter criticism on whether protection of the economy was in fact truly based on long-run comparative advantage, or whether it was determined by other, more political motives.

India's political system has, on many occasions, been unable to grab the given opportunities either due to lack of knowledge or because of political motivation. In the early 1990s when firms like Motorola approached us for facilities to set up manufacturing operations in India, we declined. China welcomed them and the fruits of this association is evident today.

The need of the hour is reforms, the need of the hour is innovation. There is a difference between keeping an elephant and carrying an elephant on the shoulders.

I strongly believe that instead of subsidies and free wares we need to engage them in sectors like biofuels, bamboo cultivation and products, and medicinal plants. Each of these can engage millions. These are policies that will not hurt the economy and all the same provide them the much-needed regular flow of income. Similarly, projects that entail huge earthworks including gram sadak projects, the linking of rivers will be able to absorb millions who may be dislocated and at the same time unleash the country’s productive potential. They are the real social security that will take the nation's economy to unscaled heights.

Political parties need to rise above political equations and vote-banks. We can't defer reforms for the forthcoming elections.

Having said that however, politics is also not without economics. The government-run railways are running in profit, the navaratnas are running in profit, many other sectors too are. Why? I would say they have brought in place reforms and innovative ways to become profitable.

Recently when I was in Gujarat, I saw a new trend emerging there. With a view to attracting several overseas companies to set up base in the state and to provide job opportunities to locals, the State government has taken up an ambitious project called SCOPE (Society for Creation of Opportunity through Proficiency in English) to empower the masses to acquire basic communication skills. The government has understood and recognized the fact that manpower is its strongest area and for that they need to possess good communication skills. This is innovation!

Economic strength is itself power. We need added thrust to reforms and that too without delay. The more we delay the process, the greater the lead that others will get over us.

So will our policy-makers play their old game in keeping a part of the society handicapped and play vote-bank politics or will they bring in reforms, all the same including the larger section of the society? The answers we will have to seek within ourselves!

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