Wednesday, July 25, 2012

Avenging national shame


It all started at home. The opposition accused the Congress lead UPA government of policy paralysis when it failed to come up with a worthy policy reform in its second stint. Inflation was riding high, foreign investment was slowing down and a string of corruption scandals battered the government. A home grown middle class movement against corruption and the government’s poor handling of the whole movement further damaged its image. The government’s inability to perform and slowing down of the economy brought the corporate India to the front-line. Corporate India openly blamed the government of failing to live up to the expectation and deliver long promised reforms. All was bearable till this point. But suddenly the matter started to get international attention.

It was The Economist which published first of the series of the “damning” articles against the Indian prime minister. In its December 17th, 2011 edition (India’s political paralysis – Gasping for breath) the newspaper started the article saying, “A LESSER man might have quit by now. Even Manmohan Singh's fabled ability to endure humiliation is being tested”. The reference was made to Mr. Singh being undercut by his colleagues including Mrs Sonia Gandhi. If this was not enough, the same newspaper yet again in its April 14th 2012 blog called Banyan, accused Mr. Singh of leaving a job half done (referring to the economic reforms). The matters became worse with the Time magazine branding the prime minister an underachiever in its mid July edition. Quickly after the report, The Independent of the UK branded him a poodle of Mrs. Sonia Gandhi.

Will the real underachiever please stand up
This generated a huge uproar in the country; the politicians first ignored it but later lashed out at the foreign media and accused them of spreading false information and insulting the head of the state. The opposition parties took the opportunity and the BJP (the main opposition party) said the Time magazine is late to the party (implying that the prime minister was always an underachiever). Public opinion rode high on patriotism and social media buzzed less with support for the prime minister and more with, “how dare you say something about my prime minister?” The common man took it too personally and eventually The Outlook, a weekly Indian newspaper came up with its own version of Mr. Obama being the real underachiever.

No one can deny that Mr. Singh has failed to deliver in his second stint. There was no big ticket reforms pushed through parliament. The only policy decision worth remembering was to allow foreign direct investment (FDI) into multi brand retail, which sadly was reversed within a fortnight. The Indian middle class loathes the ruling UPA due to high inflation and a consistent inflow of corruption scandals. However, the moment criticism comes from foreign countries it’s not welcome.

In all this madness, what comes out clearly is the relevance of India to rest of the world. How many times does The Economist or the Time magazine talk about the head of the state of Lesotho, or Estonia, that too on their cover? All the attention that Mr. Singh and India is attracting now is because India is too big to be ignored. Indian economy is now linked to the world economy. Stung by domestic slowdown western companies are looking towards the untapped markets in India. Policy paralysis or underachievement by Indian government is as much a worry to the west as it is to Indians.

The Outlook can always launch a counter attack, which at its best was juvenile, given the usual scope of coverage by the magazine. The masses can pour their anger on the Internet, politicians can use the situation for personal gains, industry can feel vindicated, but in all this cacophony there is a subtle message which says India is becoming important in world affairs. Someone in the government should read this message. Stand still too long and others will overtake. There are many of them by the way.