Framework of thought for the new government

The advent of Narendra Modi as Prime Minister marks a significant change in 3 aspects:

• It signifies a break (if not a complete turn) from the fragmentation we have witnessed over the last 25 years with the rise of regional parties. This five year gap from power may impact the survival of few of them like the NCP or RJD;
• Congress Party adopted the politics of the British with regard to managing different religions and caste sub-groups to occupy the centre of Indian politics and allowing it to combine with the left and marginal right as long as it never threatened its existence significantly to govern. This will change as first time we have nationalist party at helm and depending on the change one may the Congress being forced to re-invent or destruct. Vajpayee government was in many ways a continuation of the Congress paradigm;
• The third will be the likely manner of governance where accountability of ministries, technical support teams being attached to key ministries and once again the Prime Minister’s Office becoming supreme.

The rise of Narendra Modi is also identified by young aspirational India which does not have the patience or desire of understanding the subtleties of religion or caste, independence movement or remorse of partition, they seek out an India which provides them opportunities, choices and one that can surpass the benchmarks formed via their open access to information and shared beliefs created on social platforms.

In August last year I had written about the 3 conditions that will bring him front and centre - current social contract frays (high inflation, corruption, lack of employment etc), building aspiration, developing a local franchise in the states of UP & Bihar where people can associate with his world view. I will let the reader judge what transpired in these elections.

In this backdrop, getting the economy back on the rails becomes the key focal part of the incoming government. A lot has written about resolving environmental clearance, reworking power PPA’s, dismantling APMCs, rationalizing subsidies etc so I will not delve into them. This is what the public voted for, while delivering this it is the statesman’s responsibility to think long-term. I had written last year in October – “In effect the 4 key tenets of the state – security, governance, economics and unity - have been undermined, corrupting the functioning of the state.”

As Narendra Modi pursues the public agenda he will needs to start creating a long-range plan to address the 3 other tenets. The package will in essence define whether he leaves an indelible mark in Indian history. As a broad framework I would suggest the following in order:

• Buy or suffer peace as long as it does not threaten core Indian interests in the short-term with the neighbours;
• Accelerate the delayed defence plans and enhance intelligence capability in key states like Afghanistan / Pakistan;
• Get the economy back on its rails in the next 12-18 months with the functioning of key ministries and expert groups in place to guide growth;
• Bring economic interest and with it political capital of key players US, EU and Japan in play;
• Invest massively in building (not over-building) infrastructure especially rail and sea based links while generating resources in parallel through divestment;
• Address in earnest the naxalite / internal security problem;
• Make long range changes in governance – changes in incentives to the states based on achievements from central contributions, move to a system of regulators than ministries, judicial and police reforms (difficult one I guess);
• Finally, remove various quotas with a parallel push towards enhancing government contribution to health and education.

While this is a very ambitious agenda but I would address as more of a framework to work on to create a new India. I am sure the man at the center of this all has many pulls and pressures but withstanding that is what greatness is all about. He has to also overcome what Tocqueville wrote in 1945,”But a democracy can only with great difficulty regulate the details of important undertaking, persevere in a fixed design, and work out its execution in spite serious obstacles. It cannot combine its measure with secrecy or await their consequence with patience.”