The economist in Dr. Manmohan Singh, Prime Minister of India, has finally
decided to take control of the country’s economy and growth, and end the nearly
one-year-long policy plus reforms paralysis politically enforced by the
opportunist opposition parties as well as the allies of the ruling coalition. Undaunted
by the countywide rallies and protests against the diesel price hike on
September 13, 2012 Dr. Singh captained his government along to push through the
reforms further the very next day. Goodness for the country’s economy and
future growth prospects in a global perspective must be kept beyond politics
and political fortunes of the government; he seemed to have decided upon.
In a landmark decision on the evening of September 14, 2012 the
Government of India approved the much opposed 51% FDI (Foreign Direct
Investment) in the over $500 billion Indian multi-brand retail market and 49%
FDI in the misery-ridden Indian aviation sector. The FDI cap for the
Broadcasting sector has also been raised from the current 49% to 74%. Prime
Minister Dr. Manmohan Singh has justified this decision and the diesel price
hike as much needed reforms to rescue the country’s economy from stagnating
growth and the fears of being termed junk by the international credit rating
agencies. But still the reforms were not imposed on all states leaving the
governments free to allow FDI or not in their respective states.
The markets immediately responded to the diesel price hike buoyantly. The
industrialists, business experts and the economists hailed both of the courageous
steps as the much awaited policy reforms to sail the economy out of the present
crisis. Many of the experts dismissed common perceptions that marginal and
small retailers will go out of business, global giants will make profits at the
expense of indigenous entrepreneurs and farmers will be adversely affected as
completely unfounded. They pointed out that in various advanced countries where
the multi-brand giants opened shops the small retailers continued to exist,
that in a global economy no country could afford to go back to self-reliant
policies and that the farmers in fact stand to benefit getting better prices
for their crops in the absence of the middlemen.
But unfortunately the opposition political parties and allies do not want anything good happen to the country at the moment, because at the moment they
only want to capitalize on the crisis-ridden government and want to come to
power forcing early elections. They are not ready even to debate the
possibilities as was corroborated by their tactics to stall the entire monsoon
session of the Indian Parliament. They are sure of victory, because they
represent the middlemen and moneylenders who exploit and loot the farmers often
driving them to suicides; because they represent all the unscrupulous traders who adulterate
our food serving poison on our plates; because they represent all the apathetic
and comfort loving middle classes who spend thousands at restaurants and bars
but grimacing at the 20 bucks to be paid as taxes and who swoop down on the
cinema multiplexes or most expensive shopping complexes spending dirty sums and
yet bargaining with the local vegetable vendors for a buck and because they
represent all the gullible masses, their largest vote banks and divided on
caste or religion or language or whatever lines, who know little politics and
much less economics.
Of course, one cannot be damn sure about all possible benefits or losses of
reforms at the moment and therefore befitting a perfect democracy the people
can elect their beloved leaders like Mulayam Singh Yadav, Mamata Bannerji and a
whole lot of aspiring others into power. Their beloved leaders will never let them
down, because they will oblige by never raising the fuel prices again or will try
even reducing; because they will oblige by never allowing foreign investors enter
the country; because they will oblige all their vested interest groups and
protect them viciously. If finally, the worst economic crisis of the millennium
engulfs the country and threatens the very existence of the masses they will
simply pass on the blame to their predecessors and lead the masses again on
protests.
At the moment if a political leader says that going back to the good old
days of the barter system would be beneficial for all the democratic people would
hardly get the difference!
