Manmohan Singh: The uncharismatic leader who transformed India's economy

Manmohan Singh had no power base or interest in building one, yet his legacy speaks for itself

Charisma. The late Manmohan Singh had many gifts, but charisma was not one of them. That lack of charisma was actually foundational to his political career and his remarkable achievements.

 

He would, on the basis of his concrete achievements, be considered India’s best-ever finance minister and, arguably, the best Prime Minister. As a lifelong policy wonk, his combination of intellectual ability and hard work allowed him to acquire the skills required to handle difficult economic situations on a vast scale. 

 

Politicians found him unthreatening due to his lack of charisma. He had no power base, and no apparent interest in building one. Hence, others were willing to let him go through the hard grind of actually pulling India out of a monumental balance of payment (BoP) crisis, and rebooting the economy in the early 1990s. The unthreatening personality of the man was also why later, he was an effective Prime Minister. As PM, he delivered another growth spurt and, just incidentally, steered India carefully through the worst global financial crisis in decades.

 

Charisma wins elections, and along with associated qualities like effective demagoguery, personal charm, and the ability to lie fluently, it is an attribute much prized by politicians. But charisma is not necessarily associated with the qualities required of a competent administrator, or a good policymaker. Just as an example, think of Adolf Hitler and Angela Merkel. One had oodles of charisma. The other turned Germany into an economic and geopolitcal powerhouse.

 

Singh would have struggled to win an election. He was in Parliament, courtesy the Rajya Sabha. But he did successfully reboot an economy mired in trouble, and later managed another financial crisis on an even larger scale, all while working within coalitions.

 

The monumental nature of his achievements is best understood if you look at alternative futures — the might-have-beens for India. In mid-1991, India was facing a BoP crisis that could easily have spiralled into years of default and misery. Indeed, a lot of people thought it would. In similar circumstances, Argentina, Brazil, Jamaica, Mexico, Russia, even the Asian tigers suffered years of hyper-inflation, currency collapse, and ruin, or near-ruin.

 

India could well have ended up a basket case and a cautionary tale like Argentina. In 1991, India had a BoP crisis, near-zero economic growth, terrible infrastructure, insane red tape, and high unemployment. It had to live with energy imports, which it could barely cover. India also lacked the basic intellectual capital needed to skill up, due to its under-educated workforce. 

 

Singh’s recipe of a New Economic Policy that removed the worst aspects of the Licence Raj helped accelerate growth to over 6 per cent, from almost zero. A calibrated currency depreciation helped with the trade balance. In retrospect, Singh wrought an economic miracle. Five years after the BoP crisis, India was not only better off compared to 1991; Indians were better off than they had ever been, period.

 

Singh also does not get full credit for managing the subprime crisis and the subsequent “second wave” through 2008-12. His early years as PM coincided with a period of global prosperity, which he capitalised on. India had never enjoyed growth at the rates achieved during that period.

 

When the subprime crisis blew up, he managed to continue delivering growth. Again, you need to think of the might-have-beens to understand the magnitude of his achievement. The knock-on effects of the US mortgage crisis led to a second global crisis, which nearly crippled the European Union and left the global economy shaken for years. India survived almost unscathed.

 

Through it all, a man who understood money and its uses better than most remained untouched by personal scandal, which is also incredible. There were all sorts of scandals associated with the two United Progressive Alliance regimes. But nobody ever questioned Singh’s probity — at best, he has been mocked for his lack of oratorical skills. 

 

Uniquely among Indian politicians of the 21st century, Singh wasn’t interested in self-aggrandisement, or lining his pockets, or enriching his family. His children are highly-educated professionals who have made their own way.

 

There will be all sorts of platitudes written about him now, but they are unnecessary. He would have found them embarrassing. His legacy speaks for itself.