Editorial

Restoring Economic Health

The Congress-led UPA Government at the Centre is well-set to fulfil the tasks it has set for itself. The main task is to restore order in the economy that moved in a lopsided manner during the BJP-led NDA regime. The pro-private sector tilt of the NDA leaders had severely disturbed the social equilibrium the Congress governments had maintained for decades through equitable economic instruments. The Socialistic Pattern of Society which Pandit Jawaharlal Nehru envisaged and initiated had enormous socio-political relevance for India. It was not a mere political slogan, but was a charter for growth with human values.

The public sector that came into existence as a result of Pandit NehruÕs political philosophy was meant to be a leveller in a society where apart from diverse caste and religious classifications shocking economic disparities divided the people. He foresaw the political implications of this demographic disorder which moved him to act decisively giving the poor an extra edge in the theory and practice of the Congress Party. Pandit NehruÕs vision was shared and followed up by Indira Gandhi energetically promising and achieving Ôcommanding heightsÕ for the public sector. Her legendary land reforms, nationalization of banks and other core sectors like coal and steel strengthened Indian democracy more than anything during one of the crucial phases of our history. It is true that not all public sector units functioned well. But no one can deny that but for the Congress governmentsÕ intervention several core sectors of Indian economy would not have had any investment at all. Today this much-maligned public sector provides the base for alround growth.

If the BJP and its NDA partners did not share Pandit NehruÕs vision and Indira GandhiÕs zeal regarding the public sector it is understandable as they lacked the foresight of these great leaders. But what was truly appalling was that they even failed to comprehend the realities. They were simply obsessed by their own pro-private sector psyche. That explains the giving away the PSUs on a platter that were making profits to the private sector. The very fact that the NDA regime chose only to ÔsellÕ cash cows of the PSUs clearly exposed the regime that promised a Ôgovernment that deliversÕ but ended up as a Ôgovernment that demolishesÕ. Before the NDA came to power the profits earned by nearly half of the PSUs used to result in a net profit for all the PSUs. Consequently, the net outflow of budget funds into this vital sector was minimal. By its mindless actions and motivated measures the NDA disturbed this equilibrium. It had plans to inflict much more damage. But the timely and wise intervention of the voters check-mated it. By voting the Congress Party and its allies to power, the mature Indian voter had not only saved the countryÕs economy but its people too. But for his historic and bold electoral verdict the best of the public sector units would have gone into private hands. The voter has rightly done his job. Now, it is for the UPA coalition and the Prime Minister, Dr. Manmohan Singh to repair the damage caused by the BJP-NDA and set the economy on proper path.

It is not that the voter in particular and the population in general are against economic reforms. All they ask for is that reforms must take into account the people, their needs and their fears. The Congress and its allies are going to do just that. The Common Minimum Programme had given a solemn assurance. Assuring Òreforms with a human faceÓ it promised Òspreading and deepening rural prosperityÓ. Echoing this sentiment the President, Dr. APJ Abdul Kalam assured both Houses of Parliament in his address that the Òbenefits flowing from such reforms reach the urban poor and rural areas where majority of population livesÓ. Reforms are surely needed since the country cannot afford to remain backward. But reform, as the President said, must spread the benefits equitably and suitably. This is not an easy task. There will certainly be hurdles on the way. Powerful vested interests will not find the UPA agenda palatable.

The UPA will have to be on guard and protect and preserve its unity. The strange reaction of the domestic stock market to the election results must not be taken lightly. Stock markets reflect the sentiment of investors who are moved by factors ranging from financial profitability to political stability. The stock market had got used to a regime that promised it a pampering attitude. New rules have to be written and shall be written keeping in mind the people as a whole and not just some sections of them. The UPA has made a commitment and it will live up to it. As the Chairperson of the National Advisory Council for implementation of the CMP, Smt. Sonia Gandhi will spare no effort to keep these promises.