The Hindu Business Line : Is politics costing economy dear?

Recent political developments raise innumerable questions. A political alliance at the Centre created by compulsions of keeping a common political foe out of power. A Common Minimum Programme that looks logical for the country has different meaning for the various coalition partners.

More than a decade after a near-bankrupt India pledged its gold, many are still questioning the validity of reforms. Political gamesmanship has throttled the process of economic growth and wealth creation.

Yet, much is sought to be made of Brand India. But the just-concluded SBI staff strike and the messier Airports Authority of India employees stir exposed its hollowness. Telecast across the country, perhaps the world, surely the pictures of messy airports are hardly the images the country would want to broadcast.

Holding people to ransom

Why should the people be blackmailed at every step? Whatever the pros and cons of privatisation, no political party has the right to take the tax paying people to ransom. The withdrawal of the strike on the pretext of a face-saving assurance confirmed its very lack of purpose. There is growing discontent amongst the citizens of the country against such political exploitation and opportunism.

Political interference in foreign affairs, slowing economic actions, pitching for subsidies, reversal of tax policy, propagating taxation policies as against growth options for raising revenues are affecting the government.

On a global orbit

On the economic front all indices seem to indicate the emergence of strong and sustainable growth. Economic partnerships with likeminded nations are putting the country in a global orbit. The focus on the vast rural and semi-urban regions will bring benefits to a large number.

The United Progressive Alliance, as a non-ideological coalition, can perhaps deliver a superlative performance. The UPA is finding it difficult to implement its economic model because of certain partners diametrically opposed to the stance of the coalition leader. The latter favours economic liberalisation that will create wealth for the good of all, whereas the former group wants a socialistic approach.

It is time to ponder. The world has changed, shouldn't we?

(The author is Chairman All India Resort Development Association, Industry Analyst & Advisor. He can be contacted at anil_rathor@vsnl.net)