Congress and UPA is not pro- or anti-reform. They are for reform only if it fetches votes, not otherwise. Only one bit of evidence is needed to prove this. In 2012, the Congress party enthusiastically embraced subsidy reforms in the form of direct cash transfers to the poor. This is why Chidambaram and Jairam Ramesh even coined the slogan “Aapka paisa, aapke haath” in a joint press conference. However, direct cash transfers using UID numbers carry an inherent political risk: if it weeds out potential beneficiaries, it will also bring voter angst. This is why the scheme is being soft-pedalled and Congress has opted for the Food Security Bill that will cover the non-poor. Wooing the voters means not differentiating between the poor and non-poor. The 2G and Coalgate scams – one by the DMK’s A Raja and the other under the sleepy eyes of Manmohan Singh himself – are further indicative of Congress not being pro- or anti-reform. Congress is motivated purely by political interests, You can see the gifting of spectrum and coal blocks as pro- or anti-reform, depending on whether you are for growth or against growth. However, not having a proper process to give these things away free is indicative of a feudal mindset – where concessions are given for political reasons and not economic ones. Put all these factors together, and you should know why Congress and UPA economics is not about the poor, why it is not about inclusiveness, and why it is only about electoral math. The rupee is falling because everyone now knows this. The penny has dropped with investors; which is why the markets crashed.
Posted on: Thu, 22 Aug 2013 07:45:23 +0000