Tuesday, April 30, 2013

Mandate 2014 – Reforms ain’t mean same for Delhi and Sangli



Scooty (e.g. Activa) and mobile phone have empowered women more than any policy initiative or legislation.

People were least sure as to how reform in power sector, insurance, banking, financial markets, FDI in retail trade, Direct Tax Code, sugar decontrol, highways development, disinvestment etc. would impact their lives. 

Most traders in all states except Goa were quite wary of the GST.


During our road trip to six states including the poll bound states of Karnataka and Delhi, we tried to assess the views of the common people about economic reforms – relevance, need, direction, perceived benefits etc.

We discussed with numerous people to find out (a) what has happened in past decade or so that has made difference to their lives (for good or worse); and (b) what would they want the government to do immediately to improve their lives.

Without leading them to any specific direction, we kept the discussions primarily centered around their day to day life and future of their children.

The key highlights of the feedback we received from people were quite reassuring, though not surprisingly.
Key highlights:

(a)   We found that the social sector schemes have impacted the people lives more than the economic reforms, especially in rural areas.

Despite frequent news of irregularities, people overwhelmingly suggested that schemes like mid day meal, girl child education, NRHM and MNREGA have positively impacted more lives in almost all the states.

Financial inclusion (SHG, MFI, Banking Correspondents) was the only economic initiative they could cite as having impacted their lives directly.

(b)   Most in Maharashtra, Karnataka, and Punjab believed that the infrastructure situation has worsened over past decade. People in Haryana, Delhi and Goa suggested that infrastructure has improved in past decade.

Delhites however felt that it is still inadequate. Public health and education was commonly suggested as the “Worst in the world”.

(c)   PMGSY (the flagship rural roads scheme) was widely suggested as the game changer in Maharashtra and Karnataka. (From our past experience we know that same is the case with a majority of the states.)

(d)   Mobile connectivity was expectedly cited as the best technological evolution that impacted the rural lives.

(e)   In Delhi most of the people we spoke to cited metro rail as the boon that has improved their life significantly.

(f)     In rural Maharashtra and Karnataka, obtaining drinking water consumes 6-8 man hours. Electricity is still inadequate. We estimate focusing on these two could enhance productivity and income potential in rural and semi-urban areas substantially.

(g)   We felt that strictly implemented prohibition legislation would bring more prosperity to Haryana and Punjab than any economic reform.

(h)   Most urban residents felt that education and health reforms are more critical than economic reforms.

In the next phase of our journey we shall be covering Gujarat, Rajasthan, UP, MP, Chhattisgarh, Bihar, Jharkhand and some parts of Maharashtra.

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