Splendor of the King & Grandeur of aam-admi

Suddenly in late 2012 some Intellectuals are worried about aam-admi. Inflation, unemployment and deteriorating Law and Order situation has made life miserable for this aam-admi. Corruption has just gotten bigger, mind boggling and leaving much larger holes in his pockets. But, hey wait, how come this man who had always made ‘matured’ and 'wise' choices election after elections, now landed in this bottomless pit? And again? 

Aam-admi’s wisdom was greatly applauded in 2004 and later in 2009.  UPA government was born with ‘stamp’ of approval from this aam-admi. It is very important to understand the UPA I to understand the characteristics of UPA II. And to understand the UPA I you need to understand the era of Rajiv and Indira Gandhi. 

For the beginners, UPA I government began with a cracker: “Bhaad Me gaya Sensex” (To be hell with Sensex). Most of the Foreign Investors got their message LOUD and CLEAR. There was NO ambiguity in the message.   

First casualty was the Disinvestment Ministry itself. Second important casualty was the reversal deregulation of Administrative Pricing Mechanism of petroleum products by NDA government in 2002. Even though that was not complete deregulation, but based on 3 committees: the Rangarajan Committee, the Chaturvedi Committee and finally the Kirit Parikh Committee recommendations it retained some restrictions and regulations. However, it was a major step forward in eliminating the colossal subsidies resulting in spiraling fiscal deficit.

Guess who was the Minister (Petroleum and Natural Gas) who presided over reversal of that deregulation step? You may not have guessed!! The only original leftist in Congress and ‘staunch loyalist’: Mani Shankar Iyer. 

PM Manmohan Singh on March 10th 2005 stated his government's emphasis on “Self-Reliance”. Take a pause. Doesn’t this phrase remind you of Indira Gandhi's lexicon? “Garibi Hatao” of 1971 was combined with this phrase.  In that statement Manmohan Singh had also expressed concerns on the increasing fiscal deficit, unemployment rate, Inflation and hold your breath “National Political Consensus” to deal with “National Fiscal Problem”.  What followed instead? NREGA and whooping Rupees 65,000 Crore farmer loan waiver. There was another mammoth subsidy went unnoticed through the years. And it was Rupee 1 Lakh crore subsidy to manufacturers of fertilizers. 

During these years, Infrastructure development took direct hit. Golden Quadrilateral project initiated by NDA government took major hit (3).  Railway Ministry was handed over to Lalu Prasad Yadav. Every year Manmohan Singh was seen thumping desks during Railway budget speeches seeing Lalu cracking a cheap joke spitting  'massaged’ data on Railway’s Financial Health. Does anyone now recall "Lalu Halts" in many parts of Bihar during UPA I regime?

 Add  the subject of Energy/Fuel to the UPA I paradigm of governance and you will get much better picture on shape of things to come.

Energy? Fuel? Sound familiar again in 2012?  I thought, we had left this word successfully behind in 2008 itself after epic Nuclear Deal. But, UPA I had far deeper insight into the problem related to energy and fuel than nodding and endorsing editorial boards. It knew that without coal, not enough fuel electricity/energy can be generated! :--)  Allotments of Coal mines were made at lightening speed to match the speed of electricity itself! By-product of this exercise was tonnes of 'cash' and 'inflated equity'! But off-course, it was Not 'intended' outcome! :--)

Though, in 2007 GDP growth rate touched 9% deriving the momentum generated from the policies of the previous government, the impact of adoption of slogans thrown up by UPA I beginning to show. For example, the Economic Survey of 2006-07 mentioned "slowing down of the growth of agriculture could be one of the main reasons for the growth in the unemployment rate”.

By 2007, 2008 some scams begin to surface. Inflation was not at comfortable level either. Naxals were capturing more and more territory under their red flag. Country had experienced 26/11 too.

Finally, UPA I closed its innings with cracker again -- Cash for Vote...


And in 2009 the wisdom of aam-admi 'prevailed' over his own empty stomach senses, the Singh was made the King....  This newly anointed King created history of new type with in-numerable ZEROs and his 'explanations' over each!! :--)

Post 2012 Singh will retire with his "Kingdom", and the real Queen is still globe trottring with impunity preaching more 'reforms' for aam-admi like "Right to Food", and the aam-admi is lining up in the queues in neighborhood Fare Price Shops for his quota of adulterated groceries and Kerosene...

 The same Aam-admi is again going to be assigned same task as was given in 2008/09 and earlier in 2004.  Would aam-admi make something out of a 42 year adolescent? Or would put his 'wisdom' to rest for a while and would choose a stellar performer from western border state? 


Billion dollar (non FDI ) question indeed! 

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(1) http://articles.timesofindia.indiatimes.com/2004-07-15/india-business/27148343_1_oil-companies-pricing-policy-petroleum

(2) http://articles.economictimes.indiatimes.com/2005-03-10/news/27509314_1_high-growth-growth-rate-indian-economy

(3) http://www.financialexpress.com/news/golden-quadrilateral-at-snail-s-pace/236865/