Stagnation survey

Almost every bit of empirical data in the government8217;s very own Economic Survey 2002-03 highlights the stark reality of the economic ch...

Almost every bit of empirical data in the government8217;s very own Economic Survey 2002-03 highlights the stark reality of the economic challenges India is facing. Growth has fallen by more than 20 per cent compared to the previous year8217;s modest growth of 5.6 per cent; and to the second lowest figure since the crisis of 1991. Surely all of it cannot be attributed to the drought factor. Employment growth has been dropping during the past decade as compared to the previous one. Yet, over 100 million would enter the age bracket of 15-34 years during the next decade for whom gainful employment would have to be created if they are to be dissuaded from swelling the ranks of the violence-prone.

But the political leadership, in general, and the ruling party, in particular, seem oblivious of these trends. Their central pre-occupation is with issues that should have no legitimate place in an honest democracy based on a Constitution like ours. Ayodhya may satisfy emotional and psychological needs, if not the political fortunes of many people, but it can hardly be considered a factor affecting the economy except in the negative direction. Other issues, however important in the social and psychological domain, seem to attract greater attention than the issue of good economic governance, especially one that supports domestic peace and social engineering in an environment free of polarisation and conflict.

Urgent attention needs to be given to the better management of government finance, reforms in economic management, and reducing growing economic and social disparities. The case of the delays and internal disagreements on disinvestments demonstrated the drift and skewed priorities of some in grasping the essence of dealing with the economic challenges that the country seems to be increasingly sliding into. With 23 per cent of our urban population living in slums, we need to remember that the country is passing through a critical period where rising prosperity itself poses a set of challenges which can be successfully addressed only through enhancing economic growth with social justice. Stagnation 8212; leave alone failure 8212; would make it impossible to effect a sustainable turnaround in the future.