PM Narendra Modi must run an unconventional Govt (Part 2)

Many an economic right winger is taking the Modi Govt to task for continuing with UPA’s economic policies and programs.  Off with the left wing slush, in with the Right wing renaissance.

But theories tend to work best in classrooms and at academic seminars.  Where the rubber meets the road aka electoral battlefield, a more pragmatic approach is called for.  While the Modi Administration is showing just this pragmatic approach towards addressing India’s economic woes, they may not be going far enough.

One program from Gujarat which the central Government has failed to adopt is “Garib Kalyan Mela”.

As explained here, poverty ridden Indians lack the time and resources to educate themselves on nuances of Govt. policies.

Moreover, spoils of a growing economic pie take time to trickle down to the neediest beneficiaries.  This dynamic is even more pronounced in a highly inefficient economy such as India’s.  By the time Infrastructure is built, services that exploit the new infrastructure are launched and these services benefit the common man, precious time is lost in engaging voters.

With limited time and resources beneficiaries of right wing policies may not connect the dots and assign credit where credit is due i.e. the Modi Administration.

Right wing purists will no doubt challenge this argument.  Handout happy, leftist policies have failed the world over with India being one of its prime examples.  My fellow Right wingers wants to jettison 60 years of Nehruvian nonsense and replace it with a strong Right-of-center, free enterprise model.

In theory this approach should work wonders.  But India is a diverse and difficult country to govern.  Layer upon layer of vested interests now dot India’s economic landscape.  Any attempt at challenging this economic behemoth (no matter how rotten it may be) is fraught with short term political risk.

Job #1 for the Modi Administration is to win an equally robust majority in 2019.  It is this victory which will put India on a longer term right wing political and economic trajectory.  A redux of ABV circa 2004 will constitute a huge set back.  With the potential to usher in a defacto Islamic Republic in large parts of India by 2030.

In many ways 2019 is shaping up to be an even more critical test than 2014.

Given these challenges, PM Modi must implement a policy/program which closely mirrors the wildly successful ‘Garib Kalyan Melas’.

But how would he implement the program.  Most subjects related to economic policy are state controlled.  The center can propose schemes but their implementation lies in the hands of State satraps.  Most of whom are non-BJP entities.  A further rise in PM Modi’s popularity will most certainly author political obituaries of these satraps.

Given this dynamic, most central schemes implemented through non-NDA state governments are likely to fall short of reaching the intended beneficiaries.  Either due to active sabotage or a lackadaisical attitude from local administrations. Sonia’s favorite scheme NREGA is just the most recent and most glaring example of this inherent contradiction.  Even where these schemes were implemented successfully (Gujarat, MP), the state govt. received lion’s share of the credit with Congress being viewed as a non-starter given their abysmal performance in Congress ruled states.

Another critical variable for the 2019 political equation is timing.  As explained in Part 1 of this post, the Modi Administration has 30-36 months to implement various programs and policies so that they can bear a large enough fruit to energize voters to give the PM another clear mandate.

Right wing policies take much longer to implement with implementation being uneven.

PM Narendra Modi must have both time and a clear track record of implementing his programs to bring a message of hope to 2019.

So the question remains. How? How does NDA circumvent all these factors and implement a blend of right and left hand programs that ensure a victory in 2019.

The answer is simple:  Indian Railways

The Prime Minister recognizes the importance of Indian Railways, hence the emphasis on its modernization and expansion.

Implementing Garib Kalyan Melas through Railways would achieve the following:

1. Eliminate local intermediaries who breed and nurture corruption
2. Take benefits directly to the intended beneficiaries
3. Bring credit exclusively to the Modi Government
4. Circumvent objections from State governments
5. Address a host of everyday challenges faced by the poor
6. Channel a wide range of services to the lowest rung of India’s economic ladder
   1. Mobile health clinics, Pharmacies, eye care clinics, food rations, water, etc.
7. With its large, albeit inefficient network, Railways can reach every corner of India

This is not to suggest that Right wing policies should not be implemented or put on hold.  Infact the opposite is true.  We can walk and chew gum at the same time.  Long term Rightist policies and programs are the only answer for India’s economic woes.  But an electorate in survival mode seeks tangible benefits in real-time.

Easing their burden through direct action should be at the core of the new govt’s economic policies.

"Handouts Trains" would eliminate hardships in the interim as much needed policies and programs are being implemented to bring about a sustainable course correction.

Only this will ensure a repeat of 2014.