Author: Uday Mahurkar
Publication: India Today
Date: June 6, 2005
Introduction: A recent survey, which
ranks Gujarat as the No. 1 state on its economic freedom index, is a pointer
to the visible progress in vital sectors achieved by the programmes of
the Modi Government
There's one Narendra Modi, the one
whom the secularists and human-rights activists love to hate. The
state's communal record continues to haunt the BJP. But there is
also another Narendra Modi, the tough, efficient administrator who is clearly
making headway in his crusade to turn the state into a symbol of Gujarati
pride. A recent survey, conducted by two leading Indian economists
who have excellent reputations as academics, Bibek Debroy and Laveesh Bhandari,
for a German foundation, has ranked Gujarat as India's No. 1 state on its
economic freedom index based on a series of parameters. Debroy is
director of the Rajiv Gandhi Institute for Contemporary Studies, which
has created some confusion as the report is being mistakenly attributed
to the Rajiv Gandhi Foundation.
The report is the best possible
news for Mod! weighed down as he is by party rebels. The parameters
on which the study ranked Gujarat are difficult to contest, even though
Modi has also inherited much of what's right with the state from earlier
regimes. He can, however, claim credit for some crucial aspects:
Gujarat boasts of the lowest power subsidy, has a better than average power
situation, low levels of corruption compared with other states and a business-friendly
environment.
As always, there is the flip side.
A section of Gujarat BJP MLAs has been up in arms against Modi for his
"dictatorial style" while the RSS-backed Bharatiya Kisan Sangh has targeted
Modi for his "anti-farmer" stance. In fact, it may be his dictatorial
style that helped him push through vital programmes that led to progress
in every sector. To Modi's credit, he has resisted earning populism
through doles and subsidies.
Modi's main contribution has been
his five-point programme: Jal Shakti (conservation and distribution of
water resources), Jan Shakti (harnessing and coordination of human resources),
Urja Shakti (development and conservation of energy resources), Gyan Shakti
(emphasis on learning and education) and Raksha Shakti (emphasis on physical
and social security). The results of these and other initiatives
have been noticeable. For example, the Jyotirgram power scheme provides
24-hour power supply to domestic and cottage industry users in 9,600 of
18,000 villages so far. The Rs 1,500 crore Gujarat Green Revolution
company is popularising modern irrigation techniques like drip and sprinkler
among farmers. Modi, along with Urban Development Minister I.K. Jadeja,
motivated municipal employees through video conference meetings.
Now a large number of the 200-odd municipalities have come out of the red.
The water situation has also improved with the Narmada waters reaching
distant Kutch. Besides, for the first time in the history of Gujarat,
the Modi Government presented a revenue surplus budget this year.
Modi has achieved what he has through
the effective use of technology. Recently, while interacting with government
employees through a video conference, he said, "When people call me a corporate
CEO I don't like it. The first aim of corporate houses is profit.
If we hand over everything to corporate houses, who will look after the
common man? Government employees have an important role to play."
Modi's similar motivation of public-sector
employees seems to have paid dividends. Part of the reason is his
decision to appoint efficient bureaucrats to run them rather than political
appointees. Loss-making companies like Gujarat State Fertiliser Company
and Gujarat Alkalies and Chemicals Ltd have started making profits again.
Modi's ability to involve people in government programmes is also responsible
for Gujarat's economic performance.
All this suggests that Modi may
be accused of bad politics, but it is good economics that is helping him
enhance his image and, by extension, that of the state. Whether his
economics succeeds in obscuring his politics is a question that will await
a later report card.
