‘No scenario to take reforms forward’

Lord Desai of London School of Economics feels third world will gain from globalisation

Our Corporate Bureau

Mumbai, April 11: THE much-hyped reforms process of the last 10 years has been a very halting one. There has been no worthwhile disinvestment policy, no investment policy and no planned infrastructure spending. In fact, the government of India has failed in terms of political governance.

“There is simply no scenario to take reforms forward,” Lord Meghnad Desai, professor of economics at the London School of Economics emphatically summed up. Known to speak his mind, Lord Desai did not disappoint while delivering a speech on ‘India: Vision 2011’ in Mumbai on Wednesday. He said: “The government does not have a single mind to put to.”

Globalisation is not anybody’s prerogative, neither does the US or the western world run it. It runs itself by millions of individuals taking decisions, Lord Desai opined.

Contrary to popular belief, the third world stands to gain from globalisation as more and more job opportunities shift to cheap labour countries like China.

In fact most of the protesters at the Seattle ministerial were white collared American workers fearing a job loss, according to Lord Desai.

The real competition and threat to India comes not from the developed nations but from its immediate neighbours like Bangladesh, Mauritius and Vietnam who equally have the potential to offer cheap labour.

Contrary to popular perception, Indian business thrived under the colonial rule and was a successful example of capitalism.

But, all that had been lost in course of the last 50 years. Indian industry has to look beyond the state to be successful in today’s environment. Indian business needs to have a more hands off policy, that of free trade and market based interest rates. With the dismantling of agreements like the multi fibre agreement (MFA), India would have had a great chance in world markets, had it not been for the downslide of the last 50 years.
He envisaged two scenarios 10 years from now, one where India regains its previous heritage in business and the other where nothing dramatic happens—India just wobbling along due to political compulsions. Thus the onus lies on the Indian people, to take decisions independent of the state. The choice, as he put it, should belong to civic society.