India is at a crossroads. ?Over a period of time, certain fundamentals have emerged that have created a disjuncture between the economic power that India holds and the political reality that India is,? avers former RBI Governor Bimal Jalan. What the man who has observed politics from close quarters, having served as the nominated member of the Rajya Sabha during 2003-2009, highlights in his latest book, Emerging India: Economics, Politics and Reforms, is the urgent need to undertake simple political reforms to reflect the current reality of India, which is an emerging power full of regional parties. ?Economically, India is unstoppable, but for its politics.? He says that India is on the right economic track, with high saving rates, good investments, a technology edge and ever-improving skill sets. But the political environment has to catch up with the economics. He draws a simple analogy, ?All of us may have the best cars, but if the traffic lights don?t work, how can one drive? There will be a jam.? Jalan tells Sarika Malhotra that if government takes care of the politics, people will take care of the economics.
You have pointed out how India?s reputation has swung from a land of great opportunity to that of a country with an uncertain future. Where do you think India has lost the plot?
A life of a nation has cycles and undercurrents. Two years ago India?s reputation both as a democracy and a global emerging power was at its peak. Things were going very well, there was exuberance in the system, FDI and FII flows were up, and the Sensex was booming. Backed by a strong financial system, India emerged from the global financial crisis almost unscratched. But in the last two years, people are getting dismayed with the way things are. Governance problems, corruption cases coming to the fore, plus scams of all kinds and magnitude have led to this feeling of great discomfort. There is a growing disjuncture between economics and politics, and the emergence of a public-private dichotomy. The government is talking in different voices. Some of the basic premises of the functioning of the government are being questioned because of people?s lack of confidence in the governments? ability to deliver. And it?s not just about the people in government but about systemic issues that have led to corruption, policy paralysis and declining growth. In a sense, all the positives have turned into negatives.
You suggest that for India to seize the opportunities that lie ahead, it is essential to bring about reforms in the working of politics and administration. What should these reforms address and entail?
In recent years, as the economy has become more vibrant, politics has become more fragmented and messier. There is diminishing accountability of the executive to Parliament, predominance of criminals in politics, rising corruption, and the rising power of small regional parties in multi-party coalitions, threatening to withdraw support on the slightest trigger. Where do you see collective responsibility?
In view of the short life expectancy of remaining in power, governments have become largely non-accountable for their performance, inner-party democracy has virtually disappeared, and political corruption seems to have become a precondition for a coalition government to remain in power. With the huge powers that the ministries have on account of allocation of resources, you use discretionary powers to make the most of the time you are in power. There is a systemic crisis, which is leading to fragmentation of parties, exploitation of discretionary powers and attractiveness of politics for criminals. These are new developments, seeding for sometime but taking definite shape in the last few years. The government always had power with respect to natural resources, allocations, etc. The differentiator now is the fragmentation of parties. The general view is that you don?t know for how long you will last so make the most of it, as long as you are in power.
There is a definite need to create an effective and transparent administrative mechanism at arm?s-length from the government, to simplify procedures, to make ministries accountable for implementing public programmes, and to use electoral reforms to reduce political corruption. There is a line that divides what can be reformed and what cannot. This line is politically determined and controls the direction and pace of reforms. In view of the so-called ?compulsion of coalition politics?, reforms may continue to take a backseat.
Do you favour the civil society movement that the county witnessed during the Anna Hazare agitation?
It?s not about a particular movement, or about Mr X or Ms Y. It?s a good thing for democracy that people can show their frustration and voice their concerns. The point is that the government has to be responsible to the people. That?s fundamental. The greatest strength of India is freedom. With the media raising issues, the government has to respond, and something is happening that requires immediate resolution.
You point out that although corruption has always existed in India, it has now reached a point where it poses a serious threat to the security, freedom and well-being of the ordinary citizen and democratic values. What measures do you suggest to combat this growing menace?
In recent years politics has become a profession of choice for persons with criminal antecedents. Thus, currently over 100 members in the Lok Sabha are ?well-established? criminals, cutting across political parties. The same holds true for state legislatures. And this is not all. Many of the elected leaders, with long-pending corruption cases against them, are members of state or union cabinets, with enormous powers to allocate public resources and run public enterprises. I believe someone will have to bell the cat. We will have to reduce the attractiveness of politics for criminals and tackle the problem at its source, rather than dealing with each case after it is highlighted by the media.
I suggest a three-pronged approach. It?s of the utmost importance to withdraw discretionary powers available to the ministers to allocate public resources. Also, it is imperative to amend the anti-defection law, making it mandatory for all parties, small and large, which opt to join a coalition government, to back the government through its term and policies. If they leave the government mid-way, the anti-defection law will apply to them, they will lose ministerial powers, and fresh elections will be called. Third, let?s reverse the incentives for criminals to join politics, by expediting the investigation and prosecution against them. All pending cases should be decided within six months after members? election to the Parliament or state legislatures. If found guilty, action should be taken and fresh election on the seat should be sought.