A reformer’s plight

http://www.thehindu.com/business/Economy/article3696875.ece

A reformer’s plight

These are tough times. These are different times, too. However, there is this irresistible temptation to compare different time zones. Two decades have gone by since the unassuming Manmohan Singh put the country on a mission mode. Brand Manmohan was synonymous with change. Deservedly, he was hailed as the architect of the economic reforms in the country. But the brand has undergone a major metamorphosis. In the process, it stands a largely belittled one! Brand Manmohan has in it so many things — an economist, a central banker, a bureaucrat, a minister and a Prime Minister. Such a wholesome brand is finding it difficult to deliver now. So much so, the Asian edition of Time has put him on the cover with a caption “The underachiever-India needs a reboot”. What has gone horribly wrong for Brand Manmohan in these two decades? If the brand delivered when Manmohan Singh was the Finance Minister, why it couldn’t when Manmohan Singh is the Prime Minister? Well, the contrast is sharp.

Considered apolitical, Finance Minister Dr. Singh had the blanket backing of his Prime Minister Narasimha Rao as he singularly pursued the reform agenda without any let up or hindrance. The government of the day at the Centre then was in minority. It was a single party rule. Luckily, there weren’t coalition partners for Rao then to worry. The two combined well to take to the reform road. Much water has flowed under the bridge since then. Coalition government has become the rule at the Centre. With it, the game of the rule has changed considerably. This appears to have hit Brand Manmohan very hard.

During the first innings of UPA (United Progressive Alliance), Brand Manmohan managed to hold on to its image and reputation. So much so, Prime Minister Dr. Singh was showered praise from various quarters for the way he held on to his ground in the face of aggressive opposition from the Left parties, and pushed the passage of the nuclear bill in Parliament. Always seen to be reticent, he played a high-stake game — risking his personal reputation and the government, in the process — to secure the Bill.

But the brand has come under considerable assault only under UPA-II. The reasons are not far to seek. A series of scandals — from 2G to Adarsh and what not — has undone the brand image. As though these aren’t enough, the Manmohan Singh-led Government has to contend with coalition partners who are refusing to rise above narrow considerations. With many pulling in different directions, Dr. Singh appears to stand still. Dr. Singh, the Prime Minister, perhaps, requires a Rao-like mentor to regather his reform agenda!

It is ironical that the original reformer Dr. Singh-led UPA-II Government has to be constantly reminded by none other than the Reserve Bank of India (RBI) on the need to keep “the fiscal house” in order. Control fiscal deficit, go for market-led fuel price so on and so forth. The governor of the central bank has been continuously pleading with fiscal mandarins, even as critical macro numbers (be it inflation or industrial output and trade figures) have begun to show disconcerting signs. Surprisingly, every one — from common man to the industry and the politician — has berated the RBI for playing the ‘spoilsport’ and painted it as a villain! .

Often times, perception can play havoc. The widely-held belief is that Brand Manmohan has long gone into ‘inactive mode’. As pressure mounts from within and without, time appears to be running out for Dr. Singh to regain the reformist tag. The biggest challenge for him now lies in getting the reform agenda back on track. A positive action in letting foreign direct investment (FDI) in multi-brand retail and aviation can have a huge effect on rejuvenating Brand Manmohan. It is easier said than done, however.