All in the name of reform

People around the world are realising that in the name of “reform” many governments are initiating policy changes. Such reforms have benefited only the rich and powerful. The recent wave of reforms have led to the emergence of crony capitalism and looting of the resources of the nations and marginalisation of the downtrodden sections. Of course, there is little disagreement as to the need for reforms, economic or other, in a dynamic society.  Reform, in fact, is an essential element in a dynamic economy, an economy which is able to usher in sustained economic growth and rise in living standards. Historical and cross-country evidences indicate that failure to bring about timely changes or adjustments in the structure and functioning of an economy has been marked by distortions.  History is replete with such distortions both in the traditional and modern societies.  But the impression of equating reform with liberalisation or privatisation is rather groundless. In short,   reform should bring benefit to the people at large; and not to a small section of crony capitalists or foreign enterprises. However, in India, the term “reform” is often used in a loose sense to justify the illogical and anti-people measures initiated by the government.  Moreover, during the last decade, reform has become a byword primarily for facilitating the foreigner. It is rightly said that India is the “only country in the world which thinks that the foreigner is better for us than a local! For a country that has experienced colonial rule, this is bizarre. “ The classic example is the government’s recent ill-advised decision to allow 51 percent FDI in multi-brand retail trade, much against the sentiments and wishes of almost the entire spectrum of political parties, the entire trading community, and, of course, the vast majority of the people of the country. The government claims that FDI in multi-brand retail will bring modern technology to the country, improve rural infrastructure, reduce wastage of agricultural produce and enable the farmers to get better prices for their crops, besides generating employment and bring down prices. That is, the government is trying to pose that FDI in multi-brand retail is an essential reform to boost growth rate. It is   nothing but a deceptive propaganda, which is not supported by facts. This commentator has done extensive research on the pros and cons of FDI in retail trade in India. The results have been published in the form of a book entitled, “FDI in Retail Trade in India: a Retrograde Step” by M/s RAC Publications, No. 38 (Old No. 76-A) Choolaimedu, Chennai-60094. The study concludes as followers: “Evidences from various parts of the world indicate that   widespread   emergence of big format retail super stores have lead to extensive ruin of retail stores/shops thereby resulting in the loss of employment and livelihood to millions of persons involved in retail trade.… FDI in retail trade will not serve any purpose. It will do more harm than benefit the people.”The general perception is that the government has resorted to the recent measures with a view to divert attention of the public  from various scams, sandals, frauds and other such shadow activities perpetuated during the past few years.

Dr.C.Murukadas, The Times of India, Nov. 13, 2012