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Delhi fails the Nation
The great betrayal

The holy epic Ramayana tells of amnesia caused by worldly pleasures. The Lord Almighty Himself is the victim. After His divine nuptials, the Lord was taking it easy. Or so thought the folk in outer space. The Lord forgetful? Of his mission? To bump off the ogre. Who stopped their free lunch. 

Taking no chance, they sent sage Narada to the Lord. With a gentle reminder. Narada did his job. And the Lord set forth on His odyssey the following day.

The ruling parties in Delhi do a Lord Ram. Whether or not they swear by Him. The tall promises of clean rule remain just so. Rolled in capital comforts, amnesia (here something more) takes hold. The law and its rigid
ways are there. As a handy excuse. For inaction.

Luckily scribes are scribes. Assuring a ring-side view. Within rules. A couple of
feature articles (in THE INDIAN EXPRESS and OUTLOOK) are tell-tale. Unlocking the sub-culture of the ruling elite. Even those intoning the 'dalit' mantra are in the trap. Night clubs and all. One hired a copter to reach Delhi in time. For a sip of tamarind water.

Dr.Mahathir Mohamad, Malaysia's prime minister, called US democracy a sham. Ignore the White House. And the political parties. He said. For the shots are called by lobbies. With a more durable mechanism in place.

The Delhi work style is the same. Vested interests design, re-design and bend economic policies. To give the scoff-laws a soft touch. VDIS (take three) is just one example. We all saw power coming out of the gun barrel. In Delhi's economic lexicon empty stomachs are a must for growth.

For the J&K move, handcuff the centre. Delhi has lost the feel of the masses. And that emboldens all. Its spokesmen defend the indefensible. Rogue FIIs cart money out. But are sacred cows. Match-fixing drains a cool $12 billion. Every year. Even so, dismissed as minor crime. By a minister who knows the law.

The pattern is set. Delhi gets away with its 30 pieces of silver. The state governments face the mob fury. Often without notice. Time for a change. As it is, the autonomy demand has its fearsome echo. 

Delhi has fallen from the pedestal. And the rulers, past and present, owe the people of the Republic of India a word of explanation. For their dereliction of duty. To put it mildly.

The old slogans are back. Regional autonomy, re-drawn boundaries etc. With a shrillness rare earlier. As an echo of the failings of the central governments. And not a product of unschooled politics. Or cheap regionalism.

To be sure, they sound jarring. Coming while every other country warms up for a borderless world. True, the Eeelam demand spills blood in Sri Lanka. But far off Europe is a melting pot.

The Czech Republic and Slovakia, just out of divorce court, are on flight to the European Union. Germany and France, bitter enemies for generations, have a single currency. Sweden and Denmark, age-old rivals, are now reunited, thanks to a 16 km bridge. Wales and Scotland gained regional autonomy. But Great Britain, on the whole, is fast forward to Brussels. On the train are a host of countries including a few from the old redbloc.

The US is high and mighty. But in a hurry to cut trade deals. With countries far and near. Beijing spits fire. While on its toes to sign up for the WTO. Asean, Latam and ACP (African, Caribbean and Pacific) countries are also on way to shedding their identity.

Why then does sub-nationalism snake up in India? Blame Delhi. It let the nation down. Only the rulers are elected? Otherwise the government is under the thumb of tax evaders and commission agents. Fixers in modern parlance. Who script economic policies. Like cricket matches. For several years now. 

Let us be fair. The BJP-led government is not alone in the dock. The rot set in much earlier. Post-independence, Delhi evolved into a state within a state. With imperial trappings. No concern for the miseries outside.

It can't be different. So long as the rulers are willing to play Judas. For a few pieces of silver. Paid directly or to kith or kin. Proof aplenty. It works even after two millennia.

What did we all hear recently? An IT official puts the government (in Delhi) to shame. We learn that VDIS was a fraud perpetrated on the people. A finance secretary was out to please a brood of criminals.

The government had a fair idea of the black money volume. The VDIS accruals came up to the expectations of P Chidambaram. Who launched it. Revenue intelligence did not fail. Only, the political will was not there for drastic action. And they chose the easy way out. As usual. That was to flog and re-flog the silent majority. 

Worse. The government can't release the list of people who took refuge in the VDIS. The law comes in the way. But extortionists have the list. On a platter. And how is also known. The criminals do a roaring business. And they benefit both ways.

The present finance minister also comes out in dim light. Defending FIIs that pay no tax anywhere in the world. Most of them collect their pabulum from laundered cash. Even the OECD is worried. Not Mr.Yashwant Sinha. The treasury's loss is personal gain. What if the masses suffer?

Often, major policy decisions reflect that attitude. The amount lost in each of the two lapses is mind-boggling. More in the VDIS. A fraction of it was enough to bail out subsidised food and fuel. But nobody thought on those lines. The examples are only illustrative. Not exhaustive.

Instead, Delhi declared war on the rest of the nation. On these issues. Calling it all a must. In the name of tight budgets. The state governments were at the receiving end. Being more exposed to the starving millions. Some of them covered for the subsidy cuts. At the cost of development work.

Of late the central ministers were indulging in bluff and bluster too. As if everyone else had low IQ. Yashwant Sinha again is exhibit No. 1.

This was before the FII paymasters skewered him. Sinha was on the offensive. On the food subsidy cut. He made the claim that new pricing was beneficial. To families taking more than 60 kg a month. How many need so much grain? Outside Sinha's heavy-weight family?

An X-ray reading of the new PDS policy came from Kerala's food minister. Was there a sinister bias for an imperfect market? And so another fraud on the people? Sending the BPL numbers to the slaughter house? Perhaps Mr.Sinha never thought that his IAS arithmetic could be so easily decoded.

Delhi is prone to corruption at policy-making levels. The craft fine-turned over the years. As Mr.Kuldip Nayar noted (in The Hindu Business Line) it was institutionalised in the emergency days. Those who followed were happy with such a ready-made outfit. Which is also fool-proof.

Liberalisation (and globalisation) is unstoppable. Trouble arises only when it is insisted that privation is its route. The leading proponent of this view is Dr.Manmohan Singh. He sees the subsidies as the key to economic disaster. His less viscous economic theory is silent on how the deficits came.

Dr.Singh was with the government, the RBI and the planning commission. Before he became Narasimha Rao's paid employee in the cabinet. Total insensitivity to political compulsions is his hall-mark and armour. Even so, he should know better. Given his long stints in senior posts. How came so much hidden wealth in Delhi's own vineyard? Dr.Singh owes the nation a word of explanation. His party was in power for a long time.

After all, he was also rehearsing for the prime minister's role. Till his party realised his real weight as a liability. Throughout, Dr.Singh, however, was lucky. He never had to account for starvation deaths. And suicides. His berth in the upper house is safe. Though he was rejected by the voters. The economic reforms missed the bus. A clean slate would have ensured a flying start. Dr.Singh was against factoring in concealed income. Like others. Before and after him.

States suffer in more ways. The RBI destroys the banking system. Setting the stage for low regional growth. Such vandalism is knowingly rewarded by Delhi. Promotion, extension of service or highly paid post-retirement jobs reserved for favours received. Yet another way of mocking at the federal set-up.

For years, Delhi had everyone as a captive audience. Including the state governments. Confusing their loyalty to constitution for abject surrender.

Tolerance has its limits. The tocsin of revolt rung in J&K tells of the overdue change. And there is a favourable echo everywhere. In question is not the unity of the Union. But Delhi's misrule.


Paswan effect
Populism redefined
It has been the standard practice. To brand as populist. Any relief to the disabled. The negative basket is pretty large. Cane/grain prices, PDS, old-age pension and even village roads. Not to speak of wage increases and bonus. A firestorm breaks out everytime. Spewing shrapnel of advanced economic theory. Putting back the developmental clock.

On the other side or the divide, it is soft metric. Relief = incentive. For investments/growth. Every penny counts. From personal computers to flashy automobiles. How the government (willingly) was short changed by the telecom imbroglio?. Even hidden wealth is sacrosanct. Less attention to multiplier effect.

Second thoughts now. On the shape and content of populism. Thank Ramvilas Paswan for that. A section of the media took up the cudgels. Calling the bluff. And stressing that the boot is on the other leg. The lion's share of the exchequer munificence goes to the one per cent. That owns/controls 75 per cent of the wealth. 

Hell broke loose when Paswan offered free phones to 0.32 million P & T staff. Most outraged was the finance ministry. That winked at the accumulation of concealed income and wealth over the years. While the masses were suspended from piano wire. And asked to pay up for the budget gaps. In typical Nazi style.

It was a disinformation campaign by MoF. The media was fed with inflated figures. First Paswan was crucified for throwing away $300 million. But the media refused to swallow it in full. Then the figures were scaled back. As the first round failed MoF dredged up Paswan's earlier gifts as railway minister. To show him up as an enemy of fiscal prudence.

The plot soon unravelled. The newsmen raised a slew of embarrassing queries. The telecom scam was too early to be forgotten. Licences saved $2 billion in contracted fees. Just on the eve of the last Lok Sabha polls. Sinha's tenderness for Mauritius based FIIs also came in question. Also his hide and seek with steel companies. Paswan's profligacy pales in comparison. Even bracketed with Esops. The road to bankruptcy lies elsewhere.

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