Economics Theories and Governance

India is now divided into four distinct classes of people.

  1. As Mr. KPS Gill pointed out last year speaking at a seminar on national security at the Constitution Club, New Delhi - "There is a class of people in this nation who have their wealth stashed in Swiss Banks, Cayman Islands etc and hence have no stake in the nation". This class comprises a fair sprinkling of politicians (ruling party as well as the oppositions), senior bureaucrats and industrialists. They comprise roughly between 0.02%- 0.03% of the population of India. This is the class that rules India.
  2. They are followed by another class who have benefitted form the closeness to the above class and they may be called the facilitators or the subedars (Industrialists, bureaucrats and godmen) They are around 2% of the population.
  3. In the third category fall the professionals, academics, scientists, small businessmen and the endless tribe of government servants (civil and defence) all of who have distanced themselves from the first two categories and who are absorbed in promoting their careers, families and are mere spectators. They are the middle class and who now comprise of around 27% of the population.
  4.  The last is the mass of humanity comprising of about 70% or so of the population and for whom making two ends meet is a daily grind.

The rise of the IT industry paved the way for fat salaries in the private sector and the govt. under pressure from its own bureaucrats was compelled to loosen its purse strings for its countless employees recruited during the years of misguided socialism.

Disposable incomes grew for the bulk of people comprising the third category. But the government was ill prepared to cope with the rising aspirations.

Theories of economics are good for academic purposes. The test of brilliance of any economist lies in the successful implement theories in a practical and changing set of circumstances.

Dr.. Manmohan Singh has failed miserably. The pot of discontent is boiling hard and loud. It is another thing that the sound is not reaching his ears. But he has his own compulsions; compulsions of being a non entity in the party and the eyes of the first category of people, to be blamed and cast away in the near future; though the Congress has a history of rewarding incompetent people! Besides the regional satraps aka subedars are too strong to understand economic theories that benefit the nation. Dr. Manmohan Singh neither has the charisma or national standing or political vision or ability to implement economic theories and and stem the rot and provide good governance, having been appointed, not elected.

These satraps are the strongmen of the Congress or their supporting parties who do as they wish, knowing that Mrs. Sonia Gandhi or the PM can do them no harm without harming themselves and the Congress party.

Under such conditions, good governance, or reforms or economic theories be damned. If Sugar is lying at the ports, or food prices going through the roof it's nobody's business. The public can shout themselves hoarse and the fragmented opposition may stall proceedings of the house for all they care.

They satraps are the cancer cells of the nation. The nation will have to wait for them to pass away in a couple of years. It took almost 80 years, after the Bolshevik revolution, for a beginning to be made in Russia.


More by :  Ravinder Malhotra

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