Geography Reference
In-Depth Information
Court issued a ruling that the courts were not the appropriate venues for judging
the valuation of public assets, and that the courts were not the proper authority to
weigh the merits of the government's economic policies. The Court also
condemned the role played by the Chhatisgarh's Chief Minister and the state
government.
By the end of the two-month strike Chief Minister Jogi had reversed his
stance, and actively encouraged the workers from the plant to return to their
posts. Jogi's abrupt about-face on the issue of BALCO's privatization ceases to
be puzzling when viewed in the context of his contradictory needs as a
politician. On the one hand, Jogi was able to bolster his image as a pro-labor and
pro-tribal politician by supporting the BALCO workers' strike. On the other
hand, the development needs of his state required that he attract foreign and
domestic private capital, a task to which Jogi seemed committed.
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Indeed, since taking office in 2000, Jogi's government established a strategic
management group to encourage and facilitate foreign investment in the state,
particularly in infrastructure development. The Supreme Court, after taking up
the case filed by Jogi, inquired why his government simultaneously accused the
BALCO sale of trampling on the rights of Chhatisgarh's tribal citizens, but
negotiated the establishment of plants by Daewoo Power and Essar Steel on
formerly-tribal lands.
Although the BALCO disinvestment was ultimately realized, and the judiciary
endorsed the manner in which the central government proceeded, the BALCO
controversy revealed the extent of the cracks in the political and social landscape
on the sensitive issue of privatization. Popular discontent with privatization
enabled politicians from rival parties to leverage the issue for their political
advantage, a phenomenon that characterizes much of the political posturing over
other second-generation reforms.
Nevertheless, as in the case of BALCO, there seem to be equally vital forces
curtailing the extent of political opposition. For example, Congress leaders at the
center, where the party represent the largest opposition party, are voluble in their
criticism of the government's market-reform agenda. However, various
Congress-led state governments, like those of Karnataka, Maharashtra, and even
Chhatisgarh, have been active in endorsing and initiating economic reforms at
the state level, and aggressively seeking domestic and international investment.
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In the case of BALCO, this need to attract investment is what ultimately
constrained the political opposition and allowed the sale to proceed.
The publicly owned international airline, Air India, was also put up for sale in
2001, and may have suffered some of the consequences of BALCO. For several
reasons Air India represents an ideal candidate for privatization. It has been
losing money for six years and due to capital scarcity, does not have adequate
aircraft to take advantage of all of the air routes to which it has rights.
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Tata Sons
and Singapore Airlines had jointly bid for the airline in 2001, but the latter
