On Tuesday,the Congress Working Committee (CWC) declared clear support for the Manmohan Singh governments newly announced reforms. The partys endorsement of its prime ministers decisions should not ordinarily be remarkable. But years of a damaging dynamic between the Congress party and the UPA government,where welfare programmes are owned and trumpeted by the party and tough economic decisions are ascribed to,if not blamed on,the head of government,means that this support cannot be taken for granted. It is no secret that many senior Congress leaders and ministers were not on board with the decision to hike diesel prices or even to allow FDI in retail. So this show of collective endorsement was necessary. The prime ministers speech,which flatly asserted that money doesnt grow on trees,might as well have been directed at sections of his own party. The Congresss flagship programmes and the NACs expansive plans for the social sector depend on a solid,humming economy. While the costs of this disagreement between party and government may have been less visible in UPA 1 and it could even be argued that it served a useful political purpose it is unsustainable now in the more strained economic circumstances. This is a moment to ignore ideological reflexes and look at the concrete choices facing the nation. As the finance minister told the CWC,there is no option but to manage inflation,sharpen productivity,moderate subsidies and take action that will encourage investment. This is a commonsensical premise,shared by all those with a stake in the countrys future,whatever be the political postures of the moment. The government has only just started resisting the slide. As Planning Commission Deputy Chairman Montek Singh Ahluwalia has acknowledged,some of its decisions,like the diesel hike,are merely good economic governance,while others,like FDI in retail and aviation,extend the logic of reforms. Much more remains to be accomplished in the immediate term,from honing land acquisition legislation to ensuring easier,more systematic environmental clearances. The Congress seems to realise that it is no longer tenable to carry on the not-in-my-name approach not only does it corrode the PMs political capital at a time when it is needed,it also risks making the party seem oblivious to the economic situation. But it must strengthen that solidarity. The Congress must realise that there is no more profit in maintaining the impression that the government is at odds with the party,and should instead try and make sure that some of the shine from Manmohan Singhs new decisiveness rubs off on the party.
