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.