BW Communities

Who Is Talking To The People?

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[The sense of gloom deepens. Employees and employers are seriously worried about the future. Almost everyone seems to be resigned to the fact that nothing will change in India till general elections. The Greek crisis may have made matters worse for India, but even the optimists are openly talking about "incompetent political leadership." Expect nothing till 2014 elections. In many ways the economic crisis of India is a result of political crisis. Economic reforms can be pushed through only if they deliver political benefit. Political bargaining that underlines benefits to the people can ensure that critical reforms are accepted by not just the Opposition parties but also the ranks of a ruling alliance. Even today - 20 years of reforms later - nobody is telling the people why reforms are important. As a result, even the citizens who have benefited are fearful of economic change. The industry and the political parties have failed to excite voters about the benefits of economic reforms. The solution is two pronged. Industry has to begin meaningful conversations with civil society and not just business media. And the ruling political group has to create political space for economic change. Let us deal with the ruling party's role first. As Finance Minister in the 90s, Dr Manmohan Singh could drive reforms since the then Prime Minister Narasimha Rao backed him. Mr Rao managed the political atmosphere even as Dr Singh went ahead with important changes like delicensing of industry. Allowing FDI in India met with a furore from the business and political class. But the government pushed ahead. More than 15 years after these reforms, India and its citizens are the better for it. From telecoms to insurance to automobiles, Indian consumers have world class service and choice. The UPA government led by Sonia Gandhi must now give political cover for its Cabinet to take strong decisions. It has to take opposition along it for economic issues. Leading opposition party BJP is not anti-reforms. But it is also seeking a political answer to economic challenges. Now let's look at the role of industry bodies. The chambers of commerce have little or no connection with the civil society. None of the domestic or foreign chambers have tried to have a direct conversation with civil society. Industry bodies like the Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce of India (FICCI) spend most of their time closeted with bureaucrats and ministers seeking policy changes. Even global chambers of commerce like the Confederation of British Industry and American Chamber of Commerce are looking at the narrow sectoral picture. They only seek changes that benefit their projects and sectors. Often they hold grand conferences for fostering dialogue between industry and government. Then they trot over to business media. Even here they indulge in corporatespeak. They try to criticize government without offending anyone. It's a tough task. In the end, nobody is impressed. The government does not take them too seriously, the business media makes the most of the spectacle, but in the end little changes. What the people see is a murky alliance between government and industry and justified anger towards crony capitalism. So what is needed to create the pressure for economic change? The answer lies in politics and people. Industry leaders and business bodies need to create architecture of conversation with citizens and consumers. And not just in metros, but in small towns and villages. They have to tell the story of how industry is helping create jobs, products and technology that is enriching the lives of millions. The opposition to new projects and land acquisition is partly because people see only the losses but not the gains from a factory coming up in their neighbourhood. It is a rare business leader or corporation that takes people into confidence. Industry bodies have to start sharing their thoughts and plans with regional media, local voluntary bodies and civil society bodies. This has to be an ongoing campaign, if the industry really wants people to support its wealth creation activities. Cozying up to ministers and business media will not create the public pressure to seek a change. Unless the people and voters demand a more robust role for industry, the political class will continue to treat business as a necessary evil. An evil that has to be used for monetary gains, but discarded when policy change is sought. It's time to move from "Deliberation to Transformation," As the World Economic Forum has identified as its theme for its annual India meet. But this transformation has to be driven from the bottom. This change has to be driven by taking the people into confidence. Talk to the people and political hurdles will start lowering. (Pranjal Sharma is a senior business writer. He can be contacted at pranjalx@gmail.com)