Thursday, April 4, 2013

A midway diversion to nowhere


A midway diversion to nowhere

The desperation shown by the government functionaries especially by PM and FM in past 7-8months is exemplary. The “whatever it takes” façade presented by the duo did indeed enthused everyone for a while.
However, a conspicuous lack of vision, leadership and commitment that had in fact been the key weakness of most Indian governments since mid 1980’s has exposed the reality quite early in the day. The enthusiasm has given way to frustration and dejection all over once again.

In our view, the current socio-economic mess in the country is outcome of total adhocism in policy and program formulation & implementation, non compliance with the comprehensive socio-economic structure conceived in the Constitution, and lack of committed leadership, especially in past three decades.
The political establishment has so far mostly failed in justifying the midway diversion from the prescribed socialist framework taken in mid 1980’s. The obduracy shown by successive governments in relinquishing enormous amount of discretions enjoyed by political establishment has been a consistent obstruction in the way to evolve the intended quasi capitalist or neo-socialist policy framework that would lead to sustainable and faster growth.

A brief spell of high growth, which many may find accidental in hindsight, has probably misplaced the popular aspirations and thus added to the complexity of the problem.

The following are some of the glaring examples of lack of vision leading to ad hoc policy and program formulation leading to faulty implementation and avoidable strain on the fiscal balance.

(a)   Lack of vision and commitment on public sector investment policy, especially public sector enterprises.

(b)   Completely adhoc policy framework on foreign capital, through FDI, portfolio investment in equity and debt.

(c)   Failure in implementing an integrated energy policy.

(d)   Misdirected sustainability program – reflected in incongruent environment protection norms, inequitable resource allocation, imbalanced agri pricing, marketing and input subsidy policies.

(e)   Attempt to implement massive social security and inclusion programs, like MNREGA, PDS, RTE, no-frill banking etc., without developing a conceptual framework and adequate delivery mechanism.

We shall be discussing these in some details in coming days.

We feel that the country needs to comprehensively review the constitutional framework for evolving a wider consensus on the policy direction for sustainable socio-economic development in the current context. Leaving many things to the discretion of the government of day may not serve much purpose.

To be continued…

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