Tuesday, March 15, 2016

New Movement On Structural Reforms In Parliament



New Movement On Structural Reforms In Parliament

Just when most analysts and India observers had given up, resigned to the Modi government’s boring economic incrementalism, far from good enough to deliver the goods - along comes a surprise.  

There has appeared, with the breakthrough of two important structural reform laws, a gap in the hedge. A clear passage, through the perpetual battle royale in parliament, it comes like a breath of fresh air, and not a moment too soon.

The long impasse, practically throughout the 21 plus months of this government’s existence, was holding up, not only the government’s reform and legislative agenda, but also wilfully retarding the nation’s rate of GDP growth. Some observers have said that the potential to achieve double-digit growth was being stymied by a tragic lack of consensus.

Not all the regional parties have been comfortable with the Congress brand of confrontational and ‘beggar thy neighbour’ politics. Particularly, as the non-passage of GST, Labour, Bankruptcy, Land and other important reform oriented laws, was, and is, adversely affecting several of the states. 

With an unprecedented and perilous figure of PSU bank NPA’s, the implementation of the Bankruptcy Code for example, has progressed from being a desirable to a dire necessity.

However, with many of the operational controls being state subjects, some have cut loose, to make progress on their own. This is making for uneven development and wasted opportunity in those states who insist on partisan politics trumping all else. That this methodology is self-defeating over the medium term, is starting to dawn, even on the stick-in-the-mud Congress. 

Besides, it shows it the limitations of its obstructionism that cannot sustain.
The BJP too is now like a thing transformed. Gone is its inexplicable diffidence in the face of opposition attack. From being a good facsimilie of “Congress plus cow”, as senior BJP member and author/journalist Arun Shourie had it, it is showing signs of the Modi stamp of conviction politics at last.

It has thrown over its failed strategy of trying to curry favour with the  belligerent Congress, and begun to kick back. The RSS too is taking on an unapologetically positivist and modernist role within its socially transformational space.

Congress, trapped in its mandir-masjid mindset and its corrupt image, finds itself slipping off the bully pulpit. Lost and unmoored, it is desperately making common cause with separatists, maoists, communists, convicted terrorists- being depicted as  martyrs, other anti-national elements, even amongst students and professors; and all this in the quest for political traction. It has even gone so far as to compare ISIS to RSS, if in a diabolical and roundabout way.

Besides, this kind of divisive propaganda politics may be short-lived yet, particularly within parliament, if a certain private member’s bill, recently introduced, becomes law. This quiet proposal has the potential to change the complexion of parliamentary functioning once and for all.

This bill, let us call it the Anti-Disruption Bill, was introduced recently, in the Lok Sabha by MP Jayadev Galla of the TDP, one amongst the 32 private members’ bills admitted. It may well be the next big idea after Rajiv Gandhi’s Anti-Defection Bill became law.  

This would-be law seeks to effect the disentitlement of daily allowance to members for disrupting the House, and further the “termination of membership of a member or group of members who disrupt proceedings of the House”.  It would throw an elected MP out of office, privileges and perquisites, for the remaining duration of his term for disruption of parliament.

In one fell swoop this bill, if it becomes law, will return parliament to discussion, debate, decorum and democratic voting as envisaged by the founding fathers of the Indian constitution.

In the context of constant mayhem, the washout of two consecutive parliamentary sessions, the colossal waste of public funds, Galla’s bill has come at a most opportune time and could create history.

While we will have to wait and see how this highly significant bill progresses, for now, the long-awaited Real Estate Regulation & Development Bill 2015, that empowers and protects the interests of home-buyers was passed into law on December  10th.  It will go a long way to revive the confidence of buyers’ in the residential housing sector.  The builders will not be able to delay projects with impunity in future, nor can they divert investor funds into multiple projects, or indeed siphon off monies into private aggrandisement.

Another most welcome development was the introduction of the Aadhar Bill as a Money Bill in the Lok Sabha. As  a money bill, it cannot be blocked, even as Congress, true to form, is protesting its very introduction as a money bill.
Once passed, the implementation of the Aadhar Bill will go a long way to accurately target subsidies for the poor, and prevent their misappropriation by unscrupulous and corrupt middle-men. 

At first, it is intended to be used for the LPG and food subsidies. Later on, it may well be the preferred conduit for all forms of government assistance direct into the bank account of the recipient.  Already the fertilizer subsidy for farmers is intended to be streamed through Aadhar.

In conjunction with millions of bank accounts recently opened under the Modi government’s early initiative in this regard, and others expected to follow suit, not only will millions of the ‘unbanked’ join the organised sector, but with help reaching the deserving without ‘leakages’, the Aadhar Law plus the individual bank accounts has true transformative potential. The Aadhar Card’s parent, Nandan Nilekani, suggests that it can be used not just for subsidies, but to “democratise credit”.

On the back of these two laws, the government seems far more confident of passing other sorely needed bills in the second half of this budget session itself.
The weakening of the Congress strength of numbers in the Rajya Sabha, with members routinely retiring and so on, has had a part to play in the new developments. 

Some reports suggest that it too does not want to fly in the face of opposition unity. Getting ensnared in an increasing number of probes, investigations, and prosecutions, is also putting on the requisite pressure to persuade cooperation.

This, even as the Modi government is apparently doing much better at coordinating its initiatives with the less obdurate sections of the opposition.
The large number of state assembly elections coming up makes it difficult for Congress to continue with its role of spoiler, particularly when others in the nominal opposition outside the NDA, want to take a more proactive and positive stance to their voters.

At this rate, the second half of this government’s term promises to do much better than the first.


For: The Pioneer
(1,099 words)
March 15th, 2016

Gautam Mukherjee

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