BackOpinion | The unlock India mantra: Not just reopen, reimagine
India’s is no longer an economy that will work on command and control
PremiumOn 15 April, the Union ministry of home affairs (MHA) initiated the promised unlocking of the Indian economy, which also allowed e-commerce companies to expand their offering beyond the existing list of essential commodities. This was in alignment with the government’s earlier decision to begin calibrated unlocking from 20 April.
Just as e-tailers began to resurrect their logistics network, suspended ever since the lockdown commenced on 25 March, to service new consumer demand, a fresh clarification from the MHA on 19 April reversed the relaxation. It is the most open secret that the flip-flop was influenced by the powerful lobby of domestic traders.
This is not about whether the Union government was right in playing favourites. And neither does this take anything away from the scores of personnel of various arms of both state and Union governments working (in some instances 24x7) to keep us safe from the ravages of a virus that originated in Wuhan, China.
Instead it is about the underlying political economy, which holds up a mirror to the dangers of reviving an ecosystem encouraging bureaucratic overreach. It is precisely this mindset, reminiscent of the licence raj, that shackled the Indian economy in the first few decades after Independence; it is a way of thinking that inherently believes that individuals are not capable of making rational choices without a bureaucratic nudge.
Let us not forget that it required a national dialogue for most of the 1970s to provide the intellectual foundation for a rethink. It resulted in the initial phase of reforms by stealth in the 1980s that culminated in the big burst of bold economic reforms in 1991, including the abolition of the licence raj.
It is ironic that on the eve of the 30th anniversary of this big break for the Indian economy, we are once again revisiting the very bureaucratic overreach that often misses the woods for the trees.
Take for example the MHA order on 21 April ordaining further relaxation in lockdown norms but restricting it to opening of shops selling “educational books" and “electric fans". On the face of it this is laudable, as it takes into account the beginning of the academic year and the onset of the scorching summer. But then when it comes to implementation, assuming a person manages to obtain a curfew pass, we tie ourselves in bureaucratic knots answering the following:
--Are there enough shops across the country selling only educational books;
--Will fiction, standard course material for any literature course, qualify;
--Similarly, are there electrical shops that only sell fans; not to forget the various classifications for fans;
--Finally, who will monitor the fine print of this notification and penalise violators; hopefully not the already overburdened and understaffed police.
Those of us who are survivors from the pre-licence raj can well recall (others can read the tomes written on it) that this is exactly the mindset that created a bureaucratic juggernaut that not only hobbled enterprise and the associated power of discretion but also created the basis for crony capitalism.
The Indian economy has come a long way in the last three decades. Its size is no longer measured in billions, but trillions of dollars. It has acquired a complexity and depth (in some sectors) that are world class. Large segments such as telecom and aviation are now part of market play. This is no longer an economy that will work on command and control.
What the lockdown has demonstrated is that the world in general and India in particular will embrace a new-normal; the populace has already signalled (by its compliance to the lockdown norms) that it is more than willing to be a stakeholder in this impending transformation. Like everything else the current crisis is both a challenge and an opportunity. If it is to be the latter then those at the helm of policymaking need to do much more than just reopen the economy. They have to reimagine India; curbing the basic instinct of the bureaucracy can be an ideal starting point.
Anil Padmanabhan is managing editor of Mint and writes every week on the intersection of politics and economics.
Comments are welcome at anil.p@livemint.com
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
