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THE NATION: PM'S COUNCILS
... And All The Prime Minister's Men
could not put the economy together again. Because
political polemics and bureaucratic sloth ensures that the recommendations
of the councils on trade, industry and economy gather dust
By Rohit Saran
We will be taken
seriously if people perceive that we not merely produce 'good reports'
but also take action on them-quickly and comprehensively." So said
Prime Minister A.B. Vajpayee in his address to the second meeting of the
Prime Minister's Council on Trade and Industry on December 14, 1998.
By his own criterion, Vajpayee shouldn't be taken
seriously when he meets with the council again on September 7. The only
progress between December 1998 and now has been the preparation of a few
more "good reports". Action is distressingly dismal.
In the three years of its existence the council,
which comprises some of the biggest and best names in Indian industry,
has prepared a dozen reports (see boxes). In depth and coverage most reports
are outstanding and contain some vital nuggets of wisdom on what's wrong
with the economy and how precisely to put it right. "If these reports
are implemented, most of the current economic problems will be solved,"
claims Duncan Group Chairman G.P. Goenka, who has authored the council's
reports on disinvestment and power.
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A. B. Vajpayee
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In December 1999, Vajpayee had taken a bold step
to convince the council of his determination to speed up execution. He
had set up an Implementation Review Committee consisting of Finance Minister
Yashwant Sinha, Commerce and Industry Minister Murasoli Maran and Planning
Commission Deputy Chairman K.C. Pant. The committee was to evaluate the
reports of the council and ensure their implementation. But even this
heavyweight committee has not been able to deliver. "We have run
out of words to emphasise the importance of implementation, and so probably
has the prime minister," comments a member of the council.
Sure, some key recommendations of the council,
such as enacting a fiscal responsibility act, amendment to labour laws
and speedier disinvestment in PSUs have found mention in Sinha's past
two budget speeches. But all these proposals still remain on paper. Some
recommendations on power, ports and communications have been implemented
in the past three years, but such accomplishments have been too few, too
ad hoc.
Given the dismal follow up, cynics have begun
to question the purpose of the council. But the prime minister sees merit
in seeking more advice. After meeting with the trade and industry council,
Vajpayee will meet his Economic Advisory Council on September 10. The
13-member economic council was reconstituted on July 26 this year by dropping
N.K. Singh, former secretary in the Prime Minister's Office, former Planning
Commission member Montek Singh Ahluwalia and economist Ashok Gulati and
adding five members.
There are those who see good in prime minister
seeking advice, even if he can't guarantee implementation. "The Government
should not stop getting reasonable advice. Besides, Vajpayee has always
spoken the language of reforms. If implementation is poor, it is because
reforms aren't politically acceptable yet," argues Kirit Parikh,
economist and a member of all economic advisory councils since 1988. I.G.
Patel, former RBI chairman and a member of the Economic Advisory Council,
also feels Vajpayee shouldn't stop meeting the councils. "We have
to be realistic. Other than the two-year period from 1991 and 1993, reforms
have never been easy," he says.
So it is now accepted: words will continue to
speak louder than action.
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