.JPG)
A Good riddance
Finally, the Leftists are out of the government. I am of the opinion that this is probably the best thing that could have happened to Manmohan Singh. For too long have the Left held his policies at ransom, for too long have the reforms been stalled by the lousy agenda of the Left. In short, for too long have they had power without responsibility.
The time has come to show the world what Manmohan Singh is capable of. And now, it is not too difficult to go ahead with the reforms, since government has more than six months at hand, and none of the allies will make too much noise, since they will have extracted their pound of flesh. Experience shows, 100 days are sufficient for full-fledged reforms, and our PM thankfully has much more than that. Plus none of the allies have ideological commitments like the communists. So let the government get its act right for once, and start on the reforms in earnest.
It is a known fact that most development schemes like the NREG and the JNURM haven't really shown results, while there has been no tangible progress on major infrastructural projects like the DFCs. Whether by a political master-stroke by our PM, or a blunder by Mr Karat, or by plain coincidence, here is a chance, for the Congress, for the PM, for Sonia, and for India. We should not let it go.
PS : I am also of the opinion that the communists would have deserted the government anyway before the elections, to beat off anti-incumbency. The N-deal was just an excuse, price rise could also have served the same purpose, only that parties like SP would not have come forward to support a government rendered minority by inflation. So again, if at all, the Left got its calculations wrong.
The time has come to show the world what Manmohan Singh is capable of. And now, it is not too difficult to go ahead with the reforms, since government has more than six months at hand, and none of the allies will make too much noise, since they will have extracted their pound of flesh. Experience shows, 100 days are sufficient for full-fledged reforms, and our PM thankfully has much more than that. Plus none of the allies have ideological commitments like the communists. So let the government get its act right for once, and start on the reforms in earnest.
It is a known fact that most development schemes like the NREG and the JNURM haven't really shown results, while there has been no tangible progress on major infrastructural projects like the DFCs. Whether by a political master-stroke by our PM, or a blunder by Mr Karat, or by plain coincidence, here is a chance, for the Congress, for the PM, for Sonia, and for India. We should not let it go.
PS : I am also of the opinion that the communists would have deserted the government anyway before the elections, to beat off anti-incumbency. The N-deal was just an excuse, price rise could also have served the same purpose, only that parties like SP would not have come forward to support a government rendered minority by inflation. So again, if at all, the Left got its calculations wrong.
4 comments:
You're right, the newfound ally, the SP, has no 'ideological' hangups. As long as their gang's monetary interests are taken care of, things will be fine. That might mean significant damage being done in the petroleum and telcom sectors, though. How a UP-focussed rural 'socialist' party can develop such an interest in the details of GSM spectrum pricing is one of the ironies of Indian politics.
The impact of socialist SP may be minimal on the telecom-oil policies : first, the remaining term is too short for them to do any real damage. All MMS needs to do is keep these demands at bay for about 8 weeks.
Secondly, his oil policies does not seem unreasonable to me, and even though I consider myself a liberal, I cannot imagine that while some oil companies reap windfall profits and avail tax-exemptions, while the oil PSUs bleed to death. Its just a coincidence that Amar Singh happens to be on the other side of such oil companies.
All said and done, the congress needs to show that its skill at the game of political manoeuvring, and prove why its the GOP of Indian politics.
A "windfall" profit tax is usually a bad idea.
The Oil PSU situation is bad, and I support petrol price decontrol. It doesn't help to tax refineries to compensate, they're just going to invest less as a consequence. You'll end up effectively subsidising foreign refineries against Indian ones, since they are good substitutes.
Companies should be free to reap windfall profits *and* losses. There shouldn't be government confiscation in good times, or subsidies in bad times.
And btw, I put socialist in quotes. SPs policies are driven by Anil Ambani's interests, and not socialism.
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