No Committee Set Up To Review Reforms: Cong Panel To Review

Ignoring competing tendencies in the party, the Congress yesterday officially clarified yet again that it has not set up any panel to review economic reforms.

Over the last few days, although the spokesman of the party has repeatedly said there was no proposal to set up a committee to study economic reforms, several newspapers have reported that pressure is building up to review reforms.

The clarification only serves to highlight the lack of consensus on reforms. The debate on the exact contours economic reforms should take was at its most intense during the budget session of Parliament. One group, led by Vayalar Ravi, went so far as to suggest that the Indian State should revert to its traditional role in a command economy. This group was particularly vociferous on the issue of retaining food subsidies.

 

At the heart of the debate however, was also the keen desire of one group, led by Arjun Singh, to establish control over the party using the economic reforms route to discredit other possible rivals. Supporters of Dr. Manmohan Singh argue that there can be no debate on economic reforms that is tantamount to questioning Congress I's commitment to liberalisation from 1991.

However, that there is a crisis of beliefs in the party is evident from the fact that even PV Narasimha Rao, the only Congress Prime Minister since 1989, has sharply criticised the concept of disinvestments, especially in core or `strategic' areas. In a paper written some months ago which Rao offered as a treatise for discussion at a meeting recently, he said that reforms must follow a `middle' path. The meeting was hosted by former Prime Minister Chandra Shekhar and the theme was `Vikalp Hai' (There Is an Alternative). Congress MPs argue that the support to the reforms program is badly undermining their standing as the opposition because they find themselves in agreement with the government on a number of issues. They would like a sharply focused criticism of the BJP's economic policies, for which some of their own past commitment to liberalisation must be jettisoned.

On disinvestment, for instance, the Congress manifesto has just two lines, arguing for more disinvestment. So Narasimha Rao says the state must continue to run entities like airlines and under no circumstances should these be given to foreigners to run.

because these are of strategic importance.

It was during the Congress government regime, with Dr. Manmohan Singh as the finance minister that set up the disinvestment commission which recommended strategies for divestment.

MP from Maharashtra, Prithviraj Chauhan agreed readily to this, but said that in strategic areas, the Congress was not in favor of disinvesting.