Subsidies Must Go To History Books

It is believed that the man speaks his mind. As a Finance Minister, it was believed that he is the only Finance Minister in independent India who knows what he does and he does what he knows. But those were the golden moments of this man when he was sheltered and protected by Narshimha Rao as Prime Minister. Gone were the days. He speaks less now because of his orphanism but even today, whenever, he gets free hand, he speaks his mind.

He spoke again without getting noticed by many especially media experts when he shouted openly against all who are saviors of poverty. I call them saviors of poverty because they make policies which are helping poor to remain poor. Popular policies are keeping the poor deprived for centuries. This has to be understood by the policy makers as well as citizens. West Bengal is very right example. So Manmohan Singh, Indian Prime Minister spoke in clear terms. He said what is hurting Indian growth. He said what is needed.

"Subsidies not reaching the poor": Manmohan Singh said.

I think we spend far too much subsidies in the name of equity, with neither equity objectives nor efficiency objectives being met," Singh said while speaking at the golden jubilee celebrations of the Institute of Economic Growth (IEG).

Conveying the clear message of unlearning past, he said, "I think we need a new wave of creative thinking on these issues. Old ways of thinking have run their course." As a Prime Minister, he may not have time and support to carry out administrative and policy reforms, but he feels these needs for the development of the nation.

Singh regretted that "mixed economy' often becomes "mixed-up economy" and called for adopting new middle path for development that combines the efficiency consideration of the market with the equity considerations of the liberal economy." It is an open education for all communist way of thinkers that old ways are not going to serve humanity in 21st century. We have to find new ways.

Manmohan Singh admitted that the experiment with "mixed economy" in the early decades of independence had been disappointing. The country was unable to achieve growth more than 4% for decades. This happened when Industrialization and Automation through Electronics were at the peak all over the world. The nations which followed competitive and capitalist policies were the winners. India remained the losers and was satisfied to maintain its poverty.

Today we are spending 1 lac crores on subsidies and if they are not serving purpose, we must find the ways and means to divert this wastage. Manmohan Singh proposes to give focused attention in agriculture sector and energy sector issues. Energy sector is still worth talking but he wastes the time of the nation and its people when he tries to convince that such an approach was also necessary to address the major concerns pertaining to rural-urban divide and interregional imbalance. For that we need to focus on many other important issues.

Government needs to take some hard stand on issues pertaining to eradication of poverty. The careless talking and exposition of frustration by government agencies and that too Prime Minister is demoralizing for the people of this great nation. Prime Minister must do things which he can do. And certainly he would like to see subsidies disappearing from developed India.

We need to unlearn old ways fast to catch up with the new things are being developed everyday.


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