Singh in top gear, reforms in reverse

The Congress party positioned itself squarely on the “middle path” in its manifesto for the 2009 polls, released on Tuesday by Sonia Gandhi. With economists the world over pondering the future of capitalism in the wake of the worst financial crisis since the Great Depression, the Congress invoked the legacies of Nehru and Indira Gandhi as the lifeline for the Indian economy in these troubled times.

Although the shadow of a slowdown looms large on the horizon, the document contained no recipe for rescue. Instead, it unfurled a range of social welfare measures and rededicated the party to the protection of public sector enterprises in the manufacturing and financial sectors. This virtually shuts the door on the Manmohan Singh government’s efforts to privatise banks and insurance companies and to pursue divestment of government equity in major PSUs.

Some of the schemes on offer in the work programme outlined for five years of the Congress rule are ambitious. They include measures like a National Food Security Act, health security for all, comprehensive social security for those at special risk and a nation-wide skill development programme.

Many of the social sector schemes seem to have been drafted keeping in mind new international thinking after the global meltdown put government intervention back on the agenda.

The document also attempts to bring the party in line with 21st century concerns like climate change, energy security and heritage protection. However, it is ambiguous on the burning issue of regional aspirations, which is reflected in the growth of regional parties. The document merely promises that the Congress will “continue to be sensitive” to such aspirations.

The nuclear deal, on which the Congress staked its government, is described as a foreign policy achievement. However, the special relationship with the US that the Manmohan Singh government attempted to build finds no mention.

The document contains criticism of the BJP. But the special sting is reserved for the Congress’ erstwhile ally, the Left. Slamming the Marxists for attempting to “exercise authority without taking on any responsibility”, the Congress blamed them for the electoral growth of the BJP because of past alignments with the saffron party.

The harsh words for the Left were at variance with Sonia Gandhi’s diplomatic evasion when she was asked whether the Congress and the Marxists could join hands again after the polls. The dissonance raises questions about possible post-poll alignments when the aspirants for government start adding the numbers.