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How Congress has failed Manmohan Singh in order to appease crown prince Rahul Gandhi

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ManMohan

By Amulya Ganguli 

The Narendra Modi government’s chief economic advisor, Arvind Subramanian, has said that the rate of poverty reduction from 2005-06 to 2011-12 was the fastest in the country’s history. The reason, according to him, was “fast GDP growth”.

Rarely before has the Manmohan Singh government received such a handsome compliment on its performance. Although it has been known that an estimated 138 million people were lifted from below the poverty line when the Congress-led United Progressive Alliance (UPA) was in power, Subramanian’s praise is the first by someone not associated with the present government.

What is worth examining, however, is why the Congress itself has been reticent about this achievement although the party’s senior general secretary, Digvijay Singh, a “loose cannon” in his own words, did acknowledge once that millions of the “poorest of the poor” had been elevated into the lower middle class category because of Manmohan Singh’s “right” policies.

Notwithstanding this realization, the Congress has generally been silent about its own government’s excellent record in the matter of poverty reduction whereas one would have thought that it would have been trumpeted by the party during and after the election campaign.

The reason for this quietness cannot be unrelated to the party’s first family’s fear that an acknowledgment of this remarkable feat will, first, turn the former prime minister into a hero at the expense of the crown prince, Rahul Gandhi, and, secondly, that it will underline the success of the reforms process.

The exaltation of the putative “regent” over the heir-apparent was evidently unacceptable to the Congress. After all, the former was only expected to keep the seat warm for the dauphin and not put up an admirable show of governance.

Moreover, the fact that the poverty reduction tapered off from 2011-12 would point to the period when Congress president Sonia Gandhi’s aggressive espousal of costly welfare programmes led to the government taking its foot off the accelerator of reforms, as the former finance minister, P. Chidambaram, has said.

It will not be besides the point, therefore, to speculate that if Sonia Gandhi hadn’t opted for the various populist measures on the advice of the left-of-centre National Advisory Council headed by her, the high growth rates would have led to further poverty reduction and, perhaps, enabled the UPA to return to power for the third time.

Yet, sadly for the party, the left-leaning ideological inclinations of the first family, and also of a sizable section of its members, led to its worst-ever defeat.

What is strange, however, is that like the proverbial Bourbons of France, the Congress seems to have learnt nothing and forgotten nothing. Not only has it refused to recognize the root cause of its defeat – the folly of junking reforms – the party is now determinedly turning even more to the left in a manner which has made finance minister Arun Jaitley mock it for positioning itself on the “left of Marx”.

But the Congress will do well to remind itself that the poverty reduction began within a year of its return to power in 2004 not because it was pursuing socialistic policies, but had restarted the reforms process under its original promoter of 1991, Manmohan Singh.

What is more, the process took off although the communists, who are dead against pro-market policies, were then an ally of the government. As a result, the reforms proceeded haltingly, as when another ally, the DMK, rejected the move to disinvest the Neyvelli Lignite plant in Tamil Nadu, and subsequently when there was firm opposition by the Trinamool Congress and others to allow foreign investment in the retail sector.

Even then, notwithstanding the slow pace of reforms, the lives of the “poorest of the poor” were gradually improving as they moved up into what Modi once called the “neo-middle class” with aspirations to rise further.

The Congress, however, still appears to believe that poverty alleviation is best achieved not through economic growth, but by the distribution of doles and subsidies. Behind this belief is probably the calculation that the largesse will be seen as the bounty of the munificent dynasty which presides over the party’s destiny and that gratitude for the benevolence will translate into votes for the Congress.

It is this feudal mindset which baulked at the possibility of Manmohan Singh receiving all the applause for lowering poverty rates, thereby making it nearly impossible for Rahul Gandhi to step into his shoes, as was being speculated at the time.

It is obvious enough that the party cannot but suffer if the interests of a family are put above those of the organization. Its travails will be all the greater if the family members lack the intellectual acuity required at a time of economic change, which is reflected in the expansion of the middle class to accommodate social sections which were earlier outside its fold.

The BJP has understood the change that is taking place, which is why its government has continued to allow foreign investment in the retail sector although the party is against it. This is the difference between a political approach and one based on feudal subservience.

While Modi had the gumption to go against his party, Sitaram Yechury of the Communist Party of India-Marxist (CPI-M) had the honesty to admit that his party erred in opposing the nuclear deal in 2009.

The Congress, however, has only said that its defeat was the result of its failure to communicate its achievements. It is a half-truth because it is still unwilling to do so lest it should hurt Rahul Gandhi’s prospects. (IANS)

(Amulya Ganguli is a political analyst. The views expressed are personal. He can be reached at amulyaganguli@gmail.com)

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Karnataka Polls: BJP On The Way to Win, Congress May Get Hard Defeat

Any party or grouping will need 113 of the total 224 seats to secure a majority in the Assembly. Polling did not take place in two constituencies on Saturday.

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A state of 60 million people, Karnataka is home to the Information Technology hub of Benguluru and was ruled by the BJP once before.
Congress may have to taste defeat in Karnataka, VOA

The BJP was on Tuesday set to return to power in its southern bastion Karnataka as its candidates crossed the half-way mark in vote count, stunning and ousting the ruling Congress and leaving the JD-S at the third spot.

Noisy celebrations broke out in party offices in Bengaluru, New Delhi and across Karnataka as Bharatiya Janata Party nominees were on the victory lap in 118 of the 222 constituencies which voted on Saturday.

This was a dramatic jump from the 40 seats the BJP won five years ago.

The Congress, desperate to retain power in the state amid shrinking appeal nationally, suffered major blows and was ahead only in 62 seats, with Chief Minister Siddaramaiah trailing in both the constituencies he contested: Badami and Chamundeshwari.

The Congress leader was way behind G.T Deve Gowda of the Janata Dal-Secular in Chamundeshwari, Election Commission officials said. And after leading initially, Siddaramaiah fell behind B.R. Sriramulu of the BJP in Badami.

In contrast, the BJP’s Chief Ministerial face B.S. Yeddyurappa was ahead of his Congress rival by more than 11,000 votes in Shikaripura.

Energy Minister and Congress leader D.K. Shivakumar said that the numbers indicated that his party was on the way out after five years in power.

Any party or grouping will need 113 of the total 224 seats to secure a majority in the Assembly. Polling did not take place in two constituencies on Saturday.

The BJP was overjoyed. “We are in a jubilant mood because we have crossed the half-way mark. We are confident of winning,” spokesman S. Shantharam told IANS.

BJP activists and leaders celebrated noisily in both Bengaluru and New Delhi, waving party flags and shouting slogans hailing Prime Minister Narendra Modi, their main vote-getter, and party President Amit Shah.

There were also celebrations outside the residence of Yeddyurappa, who has been Chief Minister earlier too.

Of the 2,654 candidates in the fray for the May 12 Karnataka Assembly elections, at least 883 are crorepatis and 645 have criminal cases against them, said two watchdogs after analysing their affidavits filed with the Election Commission (EC).
Karnataka Polls counting suggests big win for BJP, wikimedia commons

The Janata Dal-Secular of former Prime Minister H.D. Dewe Gowda, which has been expected to play the role of a kingmaker in the event of a hung Assembly, was leading in 40 seats — the same number it won five years ago.

As the vote count progressed, BJP leaders became assertive, saying they were confident of taking power again in Karnataka while Congress leaders began to speak about the possibility of an alliance with the JD-S.

BJP leader and Union Minister Sadanand Gowda said that there was no question of any alliance.
Union minister Prakash Javadekar, who is in charge of Karnataka, met BJP President Amit Shah in New Delhi.

Analysts said the BJP was leading in Lingayat dominated seats and the JD-S in Vokkaliga dominated areas.

Expectations of a BJP victory in Karnataka lifted the key Indian equity indices during the mid-morning trade session on Tuesday.

Modi’s Performance: Survey Reports That Significant Number of People Rate Performance of Modi Government as Below Expectations

According to market observers, broadly subdued Asian indices and disappointing macro-economic inflation data points released on Monday capped some gains.

Sector-wise, healthy buying was witnessed in banking, capital goods, metals, consumer durables and automobile stocks.

The Sensex has so far touched a high of 35,993.53 points and a low of 35,498.83 points during the intra-day trade. (IANS)