Author:
Publication: The Economic Times
Date: May 20, 2005
The Narendra Modi brand of governance
has got an unexpected endorsement. The Rajiv Gandhi Foundation, headed
by Sonia Gandhi, has adjudged Modi's Gujarat as the Number 1 state in economic
freedom index.
A study 'Economic Freedom for States
of India' carried out by the Rajiv Gandhi Institute for Contemporary Studies,
the foundation's think-tank, has come to this conclusion after analysing
"economic freedom" in different states of India.
The study has defined economic freedom
as "absence of goverment coercion or constraint in the production, distribution
or consumption of goods and services beyond the extent necessary for citizens
to protect and maintain liberty by itself".
In other words, the foundation does
not agree that individual liberty is under threat in Mr Modi's Gujarat.
The study is all praise for Gujarat,
as it grades state governments on its political decision-making; the extent
to which justice is served; levels of corruption; and the extent of regulation
in the labour market.
The study, which has taken into
account the size of government, security of property rights and regulation
of credit and business has said that Gujarat comes on top. On the size
of goverment, Gujarat comes in the first position. For, only a small share
of the GSDP is accounted for by government services. Here, the government
has a small role as subsidiser. Power subsidies are among the lowest in
Gujarat.
In what could be a discomforting
finding for the Congress and the Left, the RGF study says: "Safety of life
is an essential component (of economic freedom). Gujarat, AP, Tamil Nadu,
Haryana and MP have a very small share of the total crimes being accounted
for by violent crimes. This share is much higher in J&K, UP, Jharkhand,
Bihar and Assam, where murder, rape, kidnapping, abduction, riots, arson
and dowry deaths are more rampant".
The findings do not end here. "In
Gujarat, Chattisgarh, Rajasthan and MP (all BJP ruled) a large share of
the cases that are taken up by the police are ensured complete investigation,
unlike in West Bengal, Punjab, Bihar, Jharkhand and Assam".
Also,"in Gujarat, least number of
mandays are lost as a result of strikes and lockout as a ratio of total
industrial workers in the state".
Gujarat's liberal licence regime
has also come for praise in the report. "Constraints on trade imposed by
market and license fees were also included in economic freedom. Corruption
is also seen to be relatively low in Modi's Gujarat. "In Gujarat, AP, Maharashtra,
a smaller share of the total cases resgistered are pending investigation."
"Gujarat, AP, Maharashtra and Haryana
exhibited low minimum license fee for traders".
"Corruption is measured in terms
of cases pending investigation as a ratio of total cases registered under
Prevention of Corruption and related acts. In Gujarat, AP, Maharashtra,
a smaller share of the total cases resgistered are pending investigation.
The situation, however, is bleak in West Bengal, J&K, HP, Jharkhand
and Bihar".
