The year 2013 and 2014 are the years of election. And as election season comes, announcement of sops is in full swing. Most of the sops that are declared have no economic logic behind them and the most unfortunate part is that even after 6 decades of independence, the common man falls into this trap and then ultimately curses the political system.
Narendra Modi has been declared as the Prime Ministerial candidate of the BJP and he is being marketed as the man who delivers good governance and has excellent economic model which would catapult the economy to double growth figures overnight. However one thing that is missing is this very economic model that he talks about from various platforms. Is it only based on the dictum of privatisation where the state will decide on its economic policies on the basis of the needs of the corporate sector. Or the need of the common man will be given priority. The recent recommendation coming from his camp are absurd to say it politely. Scrapping income tax, opening up of all the sectors to private players, supporting and then opposing FDI in retail, taking away land from farmers in the name of industralisation, building a tall statute of Vallabhbhai Patel on the banks of Narmada and diverting the attention from Sardar Sarovar Dam, giving away government land at throw away prices to private players, building roads on PPP model and charging exorbitant toll tax are some of the economic policies of the various BJP led state governments and PM in waiting.
In the past 10 years, the Congress led UPA government has been targeted for corruption especially in the distribution of telecom spectrum and coal. Crony capitalism has been highlighted by the opponents and to a certain degree it is true. But crony capitalism is just not the character of central government, it is very much evident in BJP ruled states too. In my state of Madhya Pradesh, ironically all the road contracts go to the same builder and all the mines go selected few. As a result corruption is at its highest in the state.
Coming back to the economics of populism, the common man has to understand that the sops declared by whichever party are mere allurements for getting votes. They do not lead to capital formation and therefore do not aid in economic development. Moreover the cacophony over growth figures is misleading. The real test for any economy is its performace on developmental parameters. While we exercise our democratic right of casting our vote, we have to think about the policy measures declared by a party and its past record. I firmly believe that we are having too rightist mindset which is not helping the cause of the common man. The role of the state needs to be increased especially in sectors of mass connect.
Narendra Modi has been declared as the Prime Ministerial candidate of the BJP and he is being marketed as the man who delivers good governance and has excellent economic model which would catapult the economy to double growth figures overnight. However one thing that is missing is this very economic model that he talks about from various platforms. Is it only based on the dictum of privatisation where the state will decide on its economic policies on the basis of the needs of the corporate sector. Or the need of the common man will be given priority. The recent recommendation coming from his camp are absurd to say it politely. Scrapping income tax, opening up of all the sectors to private players, supporting and then opposing FDI in retail, taking away land from farmers in the name of industralisation, building a tall statute of Vallabhbhai Patel on the banks of Narmada and diverting the attention from Sardar Sarovar Dam, giving away government land at throw away prices to private players, building roads on PPP model and charging exorbitant toll tax are some of the economic policies of the various BJP led state governments and PM in waiting.
In the past 10 years, the Congress led UPA government has been targeted for corruption especially in the distribution of telecom spectrum and coal. Crony capitalism has been highlighted by the opponents and to a certain degree it is true. But crony capitalism is just not the character of central government, it is very much evident in BJP ruled states too. In my state of Madhya Pradesh, ironically all the road contracts go to the same builder and all the mines go selected few. As a result corruption is at its highest in the state.
Coming back to the economics of populism, the common man has to understand that the sops declared by whichever party are mere allurements for getting votes. They do not lead to capital formation and therefore do not aid in economic development. Moreover the cacophony over growth figures is misleading. The real test for any economy is its performace on developmental parameters. While we exercise our democratic right of casting our vote, we have to think about the policy measures declared by a party and its past record. I firmly believe that we are having too rightist mindset which is not helping the cause of the common man. The role of the state needs to be increased especially in sectors of mass connect.
