Saturday, February 15, 2014

Kejriwal's Resignation - Nautanki, Naivete or Nicely Done?

The established political parties, media and the glitterati are somewhat confounded by the abrupt resignation of the AAP Government in Delhi. It is probably the first instance of an en mass resignation by an elected government in India on a point of principle. The twittering classes typified by the likes of Suhel Seth are basically saying 'good riddance to bad rubbish' Their delicate sensibilities have been overwhelmed by the odour of the Aam Aadmi up close and personal and it's high time that politics was reclaimed by their own class even if they wear designer Khadi rather than Gucci or Armani. This type of response has been building up ever since Somnath Bharti had his run in with the Delhi Police some time ago. In essence, the elite may profess to want changes in the body politic but are unwilling to soil their lily white hands with the rather messy process of achieving it. Frankly, this response coming from the people that it does is irrelevant. Firstly because these people are are in a microscopic minority even though they wield disproportionate power in India today. Secondly they are not the AAPs constituency. The real Aam Aadmi is quite happy with the turn of events as they unfold. The 'Nautanki' response to the activities of the AAP is therefore highly visible as it's played out on National TV everyday but it's largely irrelevant even as the people who participate in the charade are irrelevant too. Their real fear is that the nation is finally waking up to an understanding of its own strength. When that happens it will be a revolution in the true sense of the word.

The second response is a trifle more charitable. In this scenario, the AAP is perceived to be well meaning but naive. Kejriwal is regarded as a simple minded idealist who came to power in a groundswell of public activism starting with Anna Hazare's movement. The party is seen as a bunch of novices who are unable to govern as they should. Rakhi Birla's midnight rounds were seen as sincere but childish attempts to improve matters for the homeless poor and people questioned whether Kejriwal could read and sign files while sleeping on the pavement.

Nothing could be further from the truth!

Kejriwal and his supporters have been planning their foray into politics for a long time. They realised that the association with Anna Hazare was ultimately leading nowhere and it was important to sharpen their focus by jettisoning some of their more simple minded colleagues from that movement. As of now, every move of the AAP has been carefully planned and orchestrated keeping in mind their main constituency, the Aam Aadmi. They decided to ally with the Congress as it was the lesser of the two evils. If they had refused to form a government, they would have lost out in two ways. One, that they would have disappointed a large section of their followers who had great hopes pinned on their victory. Secondly, they wanted to give a taste to the electorate about what exactly does it mean to have a government of the AAP. In this they have succeeded in no small measure. They have proved conclusively that their brand of 'active' politics is a hit with the Aam Aadmi. They will not sit in their offices and issue esoteric orders that on one follows. 'Management by Walking Around' was a phrase coined for a management style that mirrors the AAPs approach. For better of for worse the other parties have had to pick up some cues from the AAPs style. Hopefully this impact itself will be positive for the country.

Finally the resignation of the government was inevitable given the restrictions on the state of Delhi and the uneasy relationship that the AAP has with the political establishment. In my view it will achieve two very important objectives:

  1. The established parties are terrified of a re-election before the Lok Sabha polls. The Congress less so as it has curled up and died in any case. However the BJP is really scared that if the AAP gets a thumping majority in Delhi in a re-election it will have a significantly negative impact on their chances in the Lok Sabha elections. This impact will be negated if the Delhi assembly elections are held along with or after the Lok Sabha elections.
  2. Kejriwal is now free to concentrate on the Lok Sabha Elections. There are already rumours surfacing that he may decide to contest against Mr. Modi. Whether they are true or not they add to the larger than life picture that he already has (Muffler and perennial cough notwithstanding) and they add to the confusion and uncertainty in the BJP ranks. On a more serious note, the prospect of the AAP getting 50-60 seats has been significantly enhanced by the resignation of the AAP from the Delhi assembly. If that does happen it will open up some distinctly new possibilities!
All in all, it is fair to say that the AAP has remained true to its constituency and its principles. They are hardly naive and certainly not there for entertaining the public with their antics. They have now time and freedom to concentrate on the Lok Sabha elections and it will be interesting to the see the outcome of their efforts.  

Friday, February 7, 2014

Amartya Sen and the Aam Aadmi Party

The debate between two of the most famous Indian born Economists made for fascinating reading a few months ago. Jagdish Bhagwati was strongly in favour of growth as the key measure of economic success. It almost sounded like 'Growth at any Cost'. Amartya Sen, on the other hand, argued that growth has to be balanced and  inclusive. If it is not, rapid economic growth can actually widen disparities and create social tension between the haves and the have nots. The debate was very intense and often acerbic.

This debate, in a sense, is also being played out in the political arena as of now. One may argue that Mr. Modi clearly represents the Bhagwati faction. His mantra is all about growth and development and the Gujarat model is held up as the shining example of what Modinomics can do for the country. Amartya Sen, on the other hand is supported by a more motley crew. The Congress presents a somewhat muddled picture. There are times when they appear to be doing what it takes to uplift the masses. MNERGA and the Food Security Bill are examples of such activity. However, they falter when it comes to implementation and many of these measures actually create a feeling of dependence and complacency amongst the recipients. The Left and confused centre such as Trinamool Congress, AIDMK and the like largely tilt towards Sen, perhaps because he unwittingly provides a justification for populist, vote catching schemes so beloved of our political class.

Perhaps the strongest supporter of Amartya Sen and his inclusive economics is Arvind Kejriwal and the Aam Aadmi Party. The raison de etre for the AAP's existence is the uplift of the Aam Aadmi. As such the policies of the AAP should resonate strongly with Sen's arguments. The purpose of this blog is to analyse some of the strategic decisions that it is leading to and to look at their pros and cons.

  1. The AAP's approach to removing corruption is interesting. One, they are approaching the problem from the ground upwards to start with. Most of the other political parties are oblivious of this. In a recent visit to Gujarat, for example, my taxi driver had a pay a bribe at the point of entry to the state for getting an entry permit. He did not think it was unusual but that is the state of affairs in Modi's Gujarat. Many people have praised Gujarat for the ease of doing business and I am sure that that is indeed the case, but 'transactional corruption' continues unabated. The AAP believes that the eradication of corruption must start with the common man. In other words it is an 'inclusive' process. Two, they are gunning for visibly corrupt figures. Their 'hit list' may be controversial and unproven but it does make a specific point. Until Kejriwal took on Shiela Dixit in her own constituency and defeated her, the thought of specifically targeting individuals deemed to be corrupt and keeping them out of public office had not occurred to anyone.
  2. The strategy behind the redistribution of the cost burden for the power and water charges is again based on inclusive thinking. There is considerable outrage on the subsidies that have been provided for the common man by the Delhi Government but the AAPs thinking is consistent. They are focusing on delivering a benefit to the Aam Aadmi even if it means that more affluent consumers have to pay more. There is also a view that access to clean water is almost a fundamental right and it is the duty of a responsible government to provide for it. The other related point is about the somewhat questionable benefits that have arisen due to privatization. The purpose of this blog is not to make a case for Government control and operation of public utilities but there is certainly a case for maintaining a close check on their operations. Accusations such as gold plating of assets for getting a larger return on investment and sale of power at throw away rates during the lean season abound. These matters are of grave concern especially as the Delhi consumer of power is paying far more than he used to before privatization. Private companies involved with the Gurgaon Expressway and the Airport Express Metro Line have also not exactly covered themselves with glory.

    There is a clear difference between populism and inclusive growth. By definition, populism has a a negative, short term connotation (somewhat like the proposed bifurcation of AP where the long term benefits, if any, are lost in short term vote mathematics). Populism creates a feeling of dependency on the part of the recipient and does not result in a long term benefit. Inclusive growth, on the other hand, strives to create sustainable development. It strives to minimize inequality. The US also realized that they could not wipe out generations of ill usage of the black community by normal means. Affirmative Action is what they came up with and whatever one may say otherwise, racial prejudice is less in the US than in most other white majority counties. It is the duty of any right thinking Government to put the interests of its weakest sections first and ensure that the poorest of the poor also occupy their rightful place in the India of the future. Perhaps the AAP can show the way to the more established political parties in this regard.