HVK Archives: A pragmatic approach
A pragmatic approach - The Observer
Editorial
()
6 June 1996
Title : A pragmatic approach
Author : Editorial
Publication : The Observer
Date : June 6, 1996
To a large measure, the 'minimum programme' released by
the United Front is wrapped in generalities and
populist promises. Yet, it is significant for the
renewed thrust towards federalism and a more
pragmatic approach towards economic liberalisation.
That the Front has been able to put together such a
programme, despite the diverse interests and ideologies
of its dozen-odd constituents, is laudable. In fact,
the planned decentralisation of administrative and
financial powers reflects not only the aspiration of the
United Front but also the commitments made by other
major political parties. It is a pity that even those
recommendations of the Sarkaria Commission on which a
broad consensus was reached have not been implemented so
far. The Front would do well to initiate action in this
regard. The economic policies outlined by the United
Front broadly conform to those followed by the
erstwhile Narasimha Rao government, with certain
modifications that emanate from a more realistic
assessment of the current socioeconomic situation. They
seek to continue the process of deregulation and
decontrol, with greater stress on labour-intensive
industrialisation, along with massive induction of
capital and modern technology. Similarly, while
recognising the importance of both public and private
investment the Front favours a level playing field for
domestic industry to enable it to face external
competition, a measure industry will welcome.
It is on foreign direct Investment and the public sector
that the Front has broken fresh ground. While it is
eager to step up the FDI flow to $ 10 billion a year, it
favours suitable credit and taxation policies to ensure
that the bulk of the View investment flows into the core
and infrastructural sectors. This will, not retard the
FDI flow now, since 80 per cent of such investment is
taking place in these sectors. But sooner or later, the
Front's perception must change in tune with the demands
of globalisation. As regards the public Sector, the UF
proposals do make more sense than the erratic and
infructuous policies of the former regime. But we must
await the presentation of the next budget to know how
exactly the new government is going to realise its
objectives.
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