Geography Reference
In-Depth Information
domestic companies push for changes, supported by their governments, especially in the
case of the US. That is then resisted by rival companies inside and outside India, supported
by political parties that often reflect vested interests as much as their own policies. Minis-
ters and bureaucrats are persuaded to tilt one way or another, sometimes nudged by various
inducements and sometimes by legal action. Eventually someone wins and reforms are in-
troduced - or aren't.
'Consensus for Weak Reforms'
policy, which applies even more today than it did then: 'Critics often blame the delays in
implementation and failure to act in certain areas to the choice of gradualism as a strategy.
However, gradualism implies a clear definition of the goal and a deliberate choice of ex-
tending the time taken to reach it, in order to ease the pain of transition. This is not what
happened in all areas. The goals were often indicated only as a broad direction, with the
precise end point and the pace of transition left unstated to minimize opposition - and pos-
sibly also to allow room to retreat if necessary. This reduced politically divisive contro-
versy, and enabled a consensus of sorts to evolve, but it also meant that the consensus at
each point represented a compromise, with many interested groups joining only because
they believed that reforms would not go “too far”. The result was a process of change that
was not so much gradualist as fitful and opportunistic. Progress was made as and when
politically feasible, but since the end point was not always clearly indicated, many parti-
cipants were unclear about how much change would have to be accepted, and this may
have led to less adjustment than was otherwise feasible.'
The alternative to that scenario would, of course, have been to have real debates so that
everyone realized the full extent of what was needed and signed up to their implement-
ation. However, that would probably have created a gridlock in the complex and corrupt
democracy so, with a mixture of jugaad and chalta hai India has muddled on with political
parties pushing reforms when they are in government and blatantly opposing them when
in opposition. 'The process can be aptly described as creating a strong consensus for weak
reforms!' says Ahluwalia.
What is required is political leadership. This need not necessarily be loud and vocal like
that of Narendra Modi, the controversial chief minister of Gujarat who became the BJP's
prime ministerial candidate with the backing of businessmen desperate for a strong gov-
ernment. The leadership could be quiet but firm, as Narasimha Rao's was in 1991, though
he had the advantage of a financial crisis that gave him the reason to act. Manmohan Singh
made the point in a speech in August 2013 when he said, 'reforms don't happen just be-