|
|
|
|
METRO TODAY | DAILY NEWS | ASTROLOGY | ARCHIVES | INDIA TODAY | HOME |
|
|
PM'S
BUSINESS COUNCIL Tell me How The prime minister invites 11 industry bigwings to suggest ways to revitalise the economy further. But is there a death of advice on economic reforms ? By Rohit Saran Where there is a will, there is a way.
Where there is no will, there is a survey.
That confidence was belied, at least partially, when Vajpayee decided to take fresh lessons on basic economic reforms. In his first meeting with the reconstituted Prime Minister's Council on Trade and Industry (PMCTI) on December 11, Vajpayee set up not one, not two, but eight committees (called subject groups) to "recommend implementable action points". The committees will suggest policy reforms in areas ranging from good governance in the private sector, to public-sector disinvestment, to power-sector reforms (see box). Last year too, the trade and industry council was split into six sub-groups, each of which had given recommendations on specific areas of reforms. Says a Mumbai-based member of the council: "The last thing the Government needs is more advice on reforms. Dozens of reports have already detailed what needs to be done and how it could be done." The cynicism over the prime minister's move stems from two factors. The recommendations of the six sub-groups constituted last year are yet to be implemented. In fact, some of the new committees will be replicating the work that last year's committees have done. For instance, last year's sub-group on infrastructure headed by Tata Group Chairman Ratan Tata had given detailed recommendations on power-sector reforms. Yet a new committee has been set up for suggesting power-sector reforms. Similarly, the work of the newly appointed committee on administrative reforms will overlap with last year's committee on administrative and legal simplifications. In the absence of anything new to say, the new committees may end up reinventing the wheel. That's exactly what happened last year. The 1998 committee on administrative and legal simplifications endorsed the suggestions of a prior commission on administrative reforms which was set up in May 1998. The commission had listed 1,300 Central laws for outright abolition and amendments to another 110. Similarly, last year's subject group on infrastructure had drawn heavily from the 1997 Rakesh Mohan Committee's report on infrastructure. The PMO, however, hopes that the new committees will be able to make a break from the past. "Most of the subject groups set up this year will deal with the issues either not dealt with by earlier committees, or the issues on which the recommendations given were not very practical," clarifies N.K. Singh, secretary to the prime minister. For instance, the committee on administrative reforms will focus on the problems of red tape in the post-industrial delicensing era. That's because industrialists have been complaining that a series of new clearances introduced by different government departments have nullified the benefits of delicensing. In addition, the panel will also suggest ways to revive India's traditional industries like textile and leather. But for them to be of any worth, these recommendations have to be implemented. Council members are betting on Vajpayee's firm resolve to ensure speedier implementation. Even before he appointed the eight sub-groups, the prime minister had announced an Implementation Review Committee with Finance Minister Yashwant Sinha, Industry and Commerce Minister Murasoli Maran and Planning Commission Deputy Chairman K.C. Pant as its members. The committee's brief is to take "urgent steps to put into action the recommendations that are worthy of acceptance". Vajpayee reassured the sceptics in the council by stating that "implementation and accountability must become the hallmark for assessing the success of our reform strategy".
Many industrialists feel that the importance of the PMCTI is not restricted to just what the sub-groups do. Says G.P. Goenka, president of FICCI and a PMCTI member: "Consultations with the industry - which is the real practitioner of economic reforms - helps government fine tune its policy." This is especially true since the private sector is playing an increasingly larger role in the economy. Agrees Singh: "The council was created to develop a lasting partnership and trust with the industry. That, to me, is the more important than any set of recommendations." There are other benefits of the prime minister's direct interaction with the industry. An obvious one is the positive effect on business sentiments. Points out Sanjeev Goenka, vice-chairman, RPG Enterprises and a member of the council: "Regular interactions with the prime minister and his team instil confidence in industry." In some ways, the bureaucracy too gets more serious about reforms. Says Jagdish Shettigar, a BJP economic ideologue and a member of the prime minister's economic advisory council: "With the prime minister becoming the prime mover of the reforms, the administrative machinery down the line get more active." Observers also feel that the debates such meetings generate could help achieve consensus on the next generation of reforms. Says G.P. Goenka: "Interactions with the Government lead to wrestling of minds over future policies." Hopefully, actions will soon speak louder than words. |
||||||||
| Top |
 BUSINESS TODAY | INDIA TODAY PLUS | COMPUTERS TODAY Write to us | Subscriptions | Advertise with
us |
