On governance: Act swiftly & decisively
Wipro chairman Azim Premji’s concern over the absence of decision-making among leaders of the government, and a foreboding that if “prompt corrective action” is not taken there would be a “setback to economic growth”, has once again raised issues that have been greatly worrying large sections of the population. It is not the first time that a corporate boss has said this: in fact he only echoed what he and several other leading figures from business, the judiciary, academia and different walks of life had written twice in letters to the country’s top leadership, including to Prime Minister Manmohan Singh. Interestingly, a government spokesman has responded promptly to Mr Premji’s concerns, and said “if he flags the issues concerned, they would be taken care of”. But information and broadcasting minister Ambika Soni went on to deny that there was any lack of governance — which is not heartening. She also went on to say that the government was sensitive to people’s views and that the Prime Minister himself had responded to some of these issues. It is true that Dr Singh has of late started to speak up, and the government has even announced steps against businessmen and politicians who have stashed money in overseas banks. It even declared that they should be prosecuted, not just penalised.
But the government needs to go still further. Corruption and lack of governance have not only hurt the image of the government, but have also derailed the economy — which was one of the best performing among emerging market economies till recently. This is not to say that the economy is now doing badly, but its tremendous potential, and that of the country, is being allowed to be squandered away. Lack of decision-making has already led to a slowdown in core sectors like mining, power, transport, ports, etc. The coal shortage, for instance, is disastrous for the power sector, as 70 per cent of plants depend on coal. There are a few important ministries that appear to be taking decisions independently, and sometimes at cross purposes with each other. There is little sign of collective responsibility or accountability, as is mandated by the Indian Constitution. In the absence of a central authority, there is a cacophony of noises — which creates a climate of uncertainty, confusion and despondency. India’s entrepreneurial class feels the frustration of delays and corruption: many are thinking of moving abroad to set up businesses. What has worsened matters is the coming together of several disturbing issues: inflation, high interest rates, and the uncertainty and weakness in global economies. The government has no option but to come out of its rigor mortis and tackle the lack of governance and collective responsibility.
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