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Tuesday, December 14, 2010

The focus is on inclusive growth

IIPM Prof Rajita Chaudhuri's Snaps

Tom VadakkanTom Vadakkan
Secretary, All India India Congress Committee

UPA-II is breathing more comfortably without the Left as an ally. They had the habit of putting up obstacles on every issue. This time the main focus is on high growth rate of GDP and social reforms like education, equal rights to everybody, promotional schemes for the economically backward and minorities. The will to give equal power to women was clearly seen in the tabling of the Women's Reservation Bill and Right to Education. Also attempts have been made to control inflationary trends on food items and to ensure adequate supply of essential goods through PDS or other methods.

PM Manmohan Singh and home minister P. Chidambaram have always said that the Naxal problem is the main concern for the country. What the party and the government are saying is essentially the same thing, especially demanding focus on development while taking action to counter the Maoists. Both the Centre and state governments need to work in complete harmony to ensure peace. The blame game should be stopped.

In my view, UPA-II has completed its first year on a high note. Having said that, I want to make it clear that it does not mean that UPA-I did not perform well. If it had not performed well, it would never have returned to power. UPA-II got a clear mandate and now we don't have to abide by the tantrums of the Left. Clearly, the electorate voted for UPA's pro-people policies. The vote was also against such partners of ours, like the Left, who people saw as someone who is posing a hindrance in the path of development. Their opposition-for-the-sake-of-opposition sunk them completely. It is in that sense that UPA-II is performing well in comparison to its last tenure. The Manmohan Singh-led government has full power vested in it and they are free to take decisions as they wish. It was because of this that the government was able to focus on economic policies more pragmatically and managed to bring in better GDP growth rate although the world was reeling under recession. And that is not all. Nearly all the ministries and departments are performing well and showing great results. It was the government's political will that helped the Women's Reservation Bill sail through the Upper House despite widespread opposition. NREGA is a great success story and the government is committed to improving and expanding it further. The Right to Education Bill has been introduced and is under discussion. On his part, Prime Minister Manmohan Singh has committed that the benefits of all the social programmes will reach each and every individual in even the remotest corners of the country.

As far as challenges are concerned, the government itself agrees that increase in food prices, rise in inflation, and the Naxal threat to internal security are major areas of concern. Economists are satisfied that GDP growth rate will cross 8 per cent next year as the government has taken essential steps. On his part, Agriculture Minister Sharad Pawar has maintained that by the end of the year, prices will cool down. Another thing that is worth mentioning is the difference between WPI and actual retail prices. It shows that hoarding is rampant in states and the respective state governments are unable to enforce the relevant acts and laws effectively. State governments, on their part, should place their trust in the steps taken by the Centre and should not question its intent.

As far as the Naxal problem is concerned, both Manmohan Singh and Chidambaram have spoken on record that it is the biggest threat to the internal security of the country. Dr Singh, on his part, also made it clear during his Kashmir tour that he is willing to talk to people from all factions. The Congress as well as UPA partners agree on the modus operandi that needs to be followed while tackling the Maoist issue: economic development in the region coupled with strong-arm policing and policies. Overall, I can vouchsafe that UPA-II's start has been good and it is poised to do even better in the years ahead.


An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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