Sunday, October 29, 2017






BIBEK DEBROY
                                Inline image 1                           India @70 Modi@3.5 Capturing India’s Transformation  under Narendra Modi  ; Edited by Bibek Debroy and Ashok Malik ; published by Wisdom Tree ; Pages 211 . Price Rs.590/-
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The book under review has two Editors. Bibek Debroy is a Member of Niti Aayog, an economist who has worked in several research institutions and authored a number of books and articles. Ashok Malik wrote for a number of newspapers and authored a book on the Indian Private Sector. He is the President’s Press Secretary. This book brings together acclaimed economists, scholars and diplomats  who critically  analyse India’s growth story under the Modi regime.

The period before Narendra Mondi assumed power has been divided into three neat ‘Twenty Two Year’ phases. The first phase from 1947 to 1969 was dominated by the Congress Party and ended in a split of the Congress. The year 1969 witnessed the nationalisation of banks followed by a calculated throttling of the private enterprise.The  twenty-two year period—1969-1991—were ‘ a lost age for the Indian economy’. India tread a lonely path of socialism, cronyism and Indira Gandhi thought—‘India is Indira…..Indira is India’. The third set of twenty-two years was a roller-coaster when India experienced high  growth and dizzying optimism till the UPA Government squandered the hard-won gains and let down India.

Then came Narendra Modi as a response to a call for profound change and genuine governance. Upon Modi fell the responsibility to conceive and accelerate and manage the modernisation of the Indian society.The new Government sensed the potential and laid down plans and shaped policies for broader national transformation which has run parallel with day-to-day governance. The Modi government has taken a long view of several challenges it has set out to meet. It has crafted connectivity links and economic linkages with neighbouring countries—balancing it with terrorism concerns. The battle against food inflation has been waged alongside ensuring farmer productivity; market access are taken care of. Investment policies have been liberalised and this has been rewarded by robust FDI figures.

The book is an attempt to analyse the entire exercise of nation building. Eighteen essays furnish an answer to the question—‘What has the Modi government done in its three and a half years in office?’

Swapan Dasgupta in a masterly analysis of the politics of governance points out how Modi was viewed by voters differently. He was seen as a strong leader who would undo the policy paralysis and the sense of drift India experienced under UPA  when Manmohan Singh was the Prime Minister Some thought he would restore Hindu pride. Still others saw in him a Dalit leader—from a  ‘Chaiwala’ to the occupant of 7RCR. Finally those who believed Modi would provide purposeful governance he had given in Gujarat. His slogan ‘Achche Din’“ captured the public imagination.

However, the slogan ‘Good Governance’ does not always translate into ‘Good Politics’. There were stunning defeats in Bihar and Delhi. Today there are some features of the Modi government. ‘Rapid transformation’. Modi is a man in a tearing hurry.
Popular Participation is on a massive scale---‘Jan Dhan Yojana’—‘Swacha Bharat’—‘Linking Cooking Gas with Bank Accounts’; ’Increased use of technology ‘; ‘Full Rural Electrification by 2019’; ‘Controlling corruption’ which has restored peoples’ trust. Modi has mobilised the Diaspora through his frequent trips abroad. People have started believing “Modi is not there to Manage India but to Change India”.

Among things done in a tearing hurry was  ‘Demontisation’. On the night of November  8, Modi announced the withdrawal of Rs 500 and Rs.1000 as a part of the moves to curb a grey economy. Modi was prepared to take a risk on account of his unwavering belief that demonetisation would win the approval of the electorate.

Bibek Debroy expatiates on how Modi has brought in elements of governance for the first time since 1947. For example,’ The Smart Cities Mission’, ‘Voluntary opting out of LPG subsidies’. Many of the changes introduced by Modi are institutional in nature. The pay-offs are not always in the short-term but they will make India a better governed economy.

Arvind Virmani has analysed thoroughly the tax reforms which have been ushered in by the Finance Minister and records that it is imperative to simplify tax laws, rules and procedures, eliminate deductions and exemptions and  reduce marginal rates in a revenue neutral manner. This will improve voluntary compliance, reduce corruption and result in improvement of the economy.

Mukul Asher reviews the integrated and innovative approach to social protection which was treated as an integral part of India’s economic programme. Considerable progress has been made in laying solid foundations for a sustainable social protection system. India ranked in the Global Competitive Index 39 among 138 countries in 2016-17. It was 55 in the previous year.

Geo-political problems have also been covered. Sino-Indian relations have been under considerable strain. China and India both have strong decisive rulers who have articulated bold visions for their respective countries with economic development as centre-piece. Jayadevaa presents a refreshing review of this perplexing problem faced by two giants.

Other subjects covered in the book are Water sector, Transport infrastructure, Energy sector and Defence preparedness,

This is a very thought provoking book useful for laymen and experts. It captures the incremental changes combined with a sense of inherent hope and optimism that India is witnessing today—an essential reading to understand the working of the Modi government and the nation's unique growth story under this charismatic leader.


P.P.Ramachandran.
29 / 10 / 2017.

Wednesday, October 25, 2017


SHYAM  SARAN


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How India Sees The World   From Kautilya to the 21st Century by Shyam Saran ; Published by Juggernaut ; Pages 332 ; Price Rs 599/-

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Shyam Saran was  India’s former foreign secretary and  Special Envoy for Nuclear Affairs and Climate Change selected by Manmohan Singh .He became  Chairman of the National Security Advisory Board. Thus, he had a ringside view on some of the crucial  decisions taken by New Delhi. 

India is heir to a very rich and sophisticated tradition of statecraft and diplomatic practice and this legacy continues. Technological change is driving globalisation and there are new activities such as those relating to cyberspace and outerspace which lie beyond the control of nation states.

Saran’s book is in four sections. Section One --  “Traditions and History” explores the origins of India’s world view and explains how they evolved into the template through which Indians look at the world around them.

The Second Section “Neighbours” focuses on our complex and troubled relationship with three of our neighbours—Pakistan, China and Nepal. According to  Saran Indian sub-continent is a single inter-connected geo-political entity and ecological space with a shared history, strong cultural affinities and dense economic inter-dependencies. The eventual integration of this space transcending national boundaries will remain an enduring objective of India’s foreign policy.

Section Three explores the borderless world that is emerging driven by technological change and globalisation. Energy security and climate change are twin challenges requiring negotiations spanning national, regional and international concerns. The Indo-US nuclear deal is an example of how India enhanced its energy security and expanded its strategic space.

The Epilogue -- the last Section surveys future trends and their impact on India, Three cross-national domains are examined—the maritime, cyber and space worlds. These domains call for new international institutions and government processes.  

 This book of essays are written as part-memoir and part of  the Secretary’s own critical analysis of India’s foreign policy at eventful junctures, based on  his four decades experience in the foreign service. The chapters on the US-India nuclear deal and the Copenhagen climate change negotiations are significant since he recounts  the story of how India negotiated these two pacts.

  The book begins by elaborating on India’s traditional and rich sources of literature on statecraft – from Kautilya’s  Arthashastra to Nitisara of Kamandaki. Saran advises how India can draw inferences from them to navigate today’s complex world . Challenges in the South Asian subcontinent have  to be met  by using  an approach that goes beyond the traditional and narrow confines of sovereignty and national boundaries.

Saran has discussed in-depth the complicated domestic and foreign policy dynamics that influenced  the conclusion of the civil nuclear cooperation agreement with the US in 2008, and the Paris climate change agreement in 2015.

 The claims that the world is hurtling towards Chinese unipolarity are overblown; international borders are becoming irrelevant as climate change and cyber terror bypass them.

 This book also takes the reader behind the closed doors of the most nail-biting negotiations and top-level interactions from Barack Obama at the Copenhagen climate change.

 The  “search for strategic autonomy” marks the running thread that binds India’s diplomatic initiatives. Saran feels our  diplomacy needs greater finesse and skill. He sees the Indian subcontinent as a single geopolitical and ecological space with a shared history and economic interdependencies and its eventual integration, transcending national boundaries, as the ultimate objective of India’s foreign policy.

This explains India’s proposals for South Asia Customs Union, Common Currency and even South Asian Parliament though the hangover of colonialism also makes us see borders as walls to protect us against hostile neighbours. Saran believes that India will emerge as a powerful engine of growth for all its neighbours.

 Saran sees a pattern in  Pakistani behaviour — of each major terrorist attack resulting in the suspension of dialogue, and then, after an interval, the resumption of dialogue, mostly on India’s initiatives. Pakistan therefore has no reason to abandon this low-cost yet “successful strategy” while India has no credible option between extremes of military retaliation and appeasement; and, the latter appears to be India’s destiny.

Successive leaders have been  reluctant in raising issues like Balochistan which ought to have been  part of India’s “counter-constraint” strategy since  the objective is to manage this adversarial relationship and not arrange any grand reconciliation or friendship.

Poor understanding of China, where Saran was posted in two stints, has cost India dearly. The use of Indian soldiers in the British assaults may have led to a negative attitude among the Chinese towards India. The British empire was seen as a threat to Chinese control over Xinjiang and its “suzerainty in Tibet.”Later, the government of independent India was suspected of inheriting similar motives. Right up to 1985, explains Saran, China suggested the border dispute be settled on the “package proposal” put forward by Zhou Enlai in 1960: that China would accept the alignment as defined by the McMahon Line in the east, while India should accept the Chinese alignment in the west.

Saran recalls how China’s “package proposal” disappeared from the mid-1980s when  the then Ambassador to China A.P. Venkateswaran rejected it saying “it would legitimise the territorial gains achieved by China through force of arms. Relations normalised only in the early 1990s under P.V. Narasimha Rao who, according to  Saran best represented the Kautilyan mind. Since then, China has galloped ahead and is least interested in resolving issues with New Delhi. He concludes his China chapter by suggesting that not only is it imperative to build India’s comprehensive national power but also that “India must seek to align with other powerful states to countervail the main adversary .”

 Saran also talks of China’s inroads in Nepal where he was posted during 2002-04 when Indian agencies had facilitated dialogue between a seven-party alliance and Maoists laying the ground for them to join the mainstream and the fall of monarchy. In the face of China’s expanding economic engagement leading to its increased involvement in Nepal’s domestic politics, Saran sees India’s Nepal policy continuing to be “episodic and crisis-driven” and weak.

As his greatest contribution to expanding India’s foreign policy choices, Saran outlines his role in negotiating the Indo-U.S. deal: first as India’s foreign secretary anointed to be the “secure and confidential channel between the U.S.President and our Prime Minister” and later as the Special Envoy for Nuclear Diplomacy. However Saran did succeed in  stopping  India from agreeing to a weak Climate Paris Agreement of 2015 that shrunk our policy choices.

Saran sees India’s historical evolution at the intersection of major caravan and maritime routes providing it a certain innate cosmopolitan outlook.  Today  networking and not hegemony provides the power to influence global trends and such an outlook holds promise.

 Saran comes across as a great champion of multilateralism. It is of course a big question whether his optimism on multilateralism is borne out by historical record. Saran also argues that a multipolar world and a multipolar Asia would be the best bet for India. This has been the Indian establishment’s well-known position for a long time. But it is also true that India’s best years—after the economic liberalisation of 1991—have coincided with the period of US hegemony after the end of Cold War.

 Saran  adds much to our understanding of Indian foreign policy making and the larger worldview shaping Indian diplomats. Written with an engaging flow, the book is an enjoyable read, and provides a perceptive account of the compulsions and motivations driving India’s foreign policy. A must read for those interested in an authentic yet quick reference on contemporary trends in India’s foreign policy.

PPR
22/ 10 / 2017

Monday, October 16, 2017


YOGI  ADITYANATH


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The Monk Who Became The Chief Minister by Shantanu Gupta ; Published by Bloomsbury ; Pages 133 ; Price Rs. 299/-
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U. P is actually Uttar Pradesh but often called  “Ulta Pradesh”. We have a Saint who is the Chief Minister—Mahant  Yogi Adityanath who absents himself for full five days spending it as Mahant of Goraknath Panth. Who is this gentleman?.

An attempt has been made to unravel the mystery by Shantanu Gupta who is the Founder of a leading youth-based organisation “Yuva Foundation” working with youth on several subjects. Earlier he was a Management Consultant in Switzerland, Cyprus, Hungary and Israel.

The book under review is  the first definitive biography of a monk who has become the Chief Minister of the most populous state of India. It captures the journey of a shy and introvert boy from the hills of Uttarakhand to the post of  Chief Minister of Uttar Pradesh. It is a journey of one  who had a modern education in the faculties of science from Kotdwar, later took sanyas and went through rigorous training in vedic education. He has emerged as a man of consensus . This book explores how a Nathpanthi monk, learnt the nuances of politics from his Guru, Mahant Avaidyanath, and rose to take the highest position in Uttar Pradesh’s politics.



Adityanath contested and became a member of the Lok Sabha from Gorakhpur at the age of 26, the youngest person ever elected to the Lok Sabha. He took over the seat from his own Guru Mahant Avaidyanath. His Mutt has many upliftment programmes for all segments of society, including women,  youth and  poor.


 The author has conducted  extensive research and  accumulated rare pictures, held  first-time interviews, with people close to the Yogi. It is replete with extensive factual data and illuminating comments. U P has  22 crore people and 80 Lok Sabha seats and  is  crucial in India’s political map. It has given  many Prime Ministers . U P has a population of over 200 million people ---more than five countries of the world. Misrule and nepotism has kept it as one of the most backward States of India. The State faces  issues in every sphere of life-- Communal harmony, industrial development, employment opportunities, poverty, illiteracy, corruption and criminal activities gone beyond control coupled with decades of family/clan/caste-based governments. It will take several lifetimes of cleansing  Is Yogi Adityanath that kind of leader?


 This biography has four sections. The first section is about the current role of Yogi Adityanath as the Chief Minister of Uttar Pradesh and his first days in office. The second section discusses his tenure as parliamentarian from the Gorakhpur constituency. It elaborates on his electoral victories, interventions in parliament, controversial speeches, and his thoughts on Love Jihad, religious conversion, Hindu Yuva Vahini, and his relationship with the Bharatiya Janata Party The third section discusses Yogi's life as Mahant of Gorakhpur Mutt and his yogic routine. It deals with  “Nath Pant”’, the “Mahant Tradition” and the welfare activities of the “Goraknath Mutt’ .We are furnished a history of Gorakhpur and the role of the Mutt in its development. The last section discusses Adityanath's youth and his upbringing as Ajay Kumar Bisht in the hinterlands of  Uttarakhand among cows, farms and mountains.

Narendra  Modi’s team scored an incredible 325 out of 403 seats in the most populous state of India—U P - which has 9 different dialects of Hindi, has an average population density of 828 persons per km², has more caste groups than one can count and is a mini country in itself. This was no mean feat. On 19 March 2017, Yogi Adityanath took oath as  Chief Minister of Uttar Pradesh. He had won the Gorakhpur seat 5 times and proved his  invincibility. Yogi Adityanath has a remarkable hold on  the 60 Vidhan Sabha seats in Poorvanchal.

Yogi Adityanath was Ajay Singh Bisht, who left his family at the age of 21 and became a disciple of Mahant Avaidyanath, the then Mahanth of Gorakhnath Mutt. Bisht, then went on to become the Mahant of the Shrine following the death of Mahant Aavaidyanath .

The Chief Minister  has great faith in Janta Darbars which helped him to keep a tab on the pulse of the people and know the performance of public office and Officers.Gupta’s strenuous efforts to justify Ghar Wapsi, Anti-Romeo Squads and Hindu Yuva Vahini are not exactly acceptable.

The book largely seems to be an exercise in veneration, as the author offers a painstaking defence of Adityanath’s role in controversial ‘Love Jihad’ and Hindu Yuva Vahini campaigns. It praises him for injecting discipline into Lucknow’s bureaucracy, waiving farm loans and cracking down on crime.

The book begins on  a promising note, but does not provide an unbiased portrait  of the leader. The Foreword  is from Dr. David Frawley, founder-director of the American Institute of Vedic Studies, New Mexico – who is also known as Vamdeva Shastri.

P.P.Ramachandran.
15 / 10 / 2017

Tuesday, October 10, 2017



UMA KAPILA

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India’s Economy—Pre-Liberalisation to GST ; Edited by Dr.Uma Kapila ; Published by Academic Foundation; Pages 737 ; Price Rs 1295/-

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The book under review is a magnificent tribute to Shri.Raj Kapila. He had an excellent training in the Delhi School of Economics under the guidance of some of the leading economists of India. His intellectual interests were wide-ranging but his interest in economic policy issues was uppermost.  He was independent minded in his thinking as well as in articulation. He got into economic journalism as it gave him full freedom of thought and expression. This conjoined to his academic attainments led to the creation of the Academic Foundation which under his leadership and the diligent work of his family has grown to become India’s premier publisher of books on social studies, especially economics. Kapila’s Himalayan efforts along with Dr.Uma Kapila and their sons met with extraordinary success. Leading economists vied with each other to get their books published by Academic Foundation. Uma Kapila is a revered teacher of economics, author of a number of books and currently Editorial Director of Academic Foundation.

This book is a tribute to Raj Kapila and is edited by his wife Uma Kapila who has spent 55 years together. Raj’s first book  “The Time Demands-A Politico-Economic Analysis of Present Day India” was published in 1966. Six years later he brought out “India at Cross—After 25 years of Independence”. Both books were based on extensive interviews with personalities from many fields. He always stressed that we cannot lose sight of the persisting poverty, unemployment, inequality, illiteracy and poor health of our population. He firmly believed that integrity, honesty and hard work should be the foundation of our society, politicians and policy makers.

This book, which has a “Foreword” by Dr.Manmohan Singh, has 31 chapters spread over three parts. The “Prologue” has two chapters and an Introduction by the Editor. Since Raj Kapila was from DSE we have a delightful assessment of the “Saga of Delhi School of Economics” by K.L. Krishna which is a treat for all the students and teachers of DSE. We have vivid pen portraits of the “Great Ones”—V.K.R.V.Rao, K.N.Raj,Sukhamoy Chakravarty, A.L.Nagar, M.N. Chaudhri,Suresh Tendulkar and Raj Krishna.
  
Nineteen chapters of Part Two of the book are dedicated to the macro-issues of India’s economic development and cover a number of important topics. We have a graphic assessment  of India’s economic development from the beginning and a detailed account of the 25 years of economic reforms. What was its impact on poverty, inequality, growth and social opportunity and also regional inequality in development . A close analysis follows of the challenges posed by new features such as digitisation, demonetisation, conditional cash transfer, goods and services tax. The other important subjects covered thoroughly are monetary and fiscal policies, federalism, policy regulations,demographic dividend and ecology issues and the rationale of specific economic theories.

Ten chapters in Part Three are devoted to sectoral issues and challenges and tackle subjects like agriculture, industry, banking and the external sector.

In a brief review it will be difficult to cover all chapters.

C.Rangarajan covering the journey of India’s economic reforms analyses market failures and the State’s role. The severe economic crisis, triggered by a serious BoPs problem in the year 1991 was converted into an opportunity to effect some fundamental  changes in the content and approach to economic policy. Manmohan Singh spearheaded the economic reforms for which political support was provided by Narasimha Rao.

Mahendra Dev skillfully assesses the dimensions and trends in inequality at the global level and Indian as well. While policies have been implemented resulting in India’s tremendous growth potential, we have to take care to begin a process of social transformation that ends discrimination on the basis of caste, class and gender. We need strong movements to reduce social exclusion. The agenda of inclusiveness and equality has to be given highest priority for broad-based social and economic development.

According to Y.V.Reddy,  there was an attempt at the recent demonetisation programme to accelerate significantly “digitalisation of payment transactions". However, he points out to the downsides to digitalisation, its direct and immediate impact on black money and corruption is negligible.
    
A.Vasudevan  notes the welcome development of the emergence of a number of challenges—the cost of use of different modes—the regulatory framework and how quickly disputes could be settled and safety costs and loss of privacy. He points out that the costs involved for developing a robust infra-structure including the required skills and innovations in technology as well as sufficient number of sound application and solutions are phenomenal.

C.H.Hanumantha Rao tackles the problem of growing inequality in regional development. Inter-state inequality of gross state domestic product(gsdp) has increased in the post-economic reforms period from the early 1990s. Richer states have grown faster than the poorer states. The regional inequality in per capita gsdp growth is even greater since the poorer states have experienced faster population growth.

M.Govinda Rao in a scintillating chapter on GST analyses it as a “Game Changer  and reform of the century ". He warns, "There are concerns about the rates of tax, mandated compliance and glitches in transition and investment activity which is virtually at a standstill”.

Vijay Kelkar mourns that the approach adopted by the authorities robs the GST of its efficiency enhancing potential because of multiple rates ; different rates for goods and services ; high rates for retail level and leaving out infra-structure sector such as construction, unworkable assets.

Deepak Mohanty has written a brilliant analysis of how monetary policy evolved over eight decades since the RBI  was established in 1935. Formulating monetary policy is an ever-evolving process in response to and as a consequence of changes in financial markets and the real economy.

There are a number of crucial parameters discussed by eminent authorities and as the Editor concludes  “ Development is multi-dimensional. It has to be inclusive. We cannot take pride in being the fastest growing economy if we are not able to ensure a more human and just world for all Indians”.

Mention must be made of the cornucopia of references appended to each of the chapters. We have an impressive number of tables and figures which add value to the narration.

No better tribute could be given to Raj Kapila than this volume of rich contributions by the great teachers of the country.

P.P.Ramachandran.
​​08 / 10 / 2017

Sunday, October 1, 2017

BIMAL JALAN

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India   Priorities for the Future by Bimal Jalan ; Published by Penguin / Viking ; Pages 184 ; Price Rs 499/-

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The country is presently embroiled in a political “star war” of a virulent type. Yashwant Sinha, who presented seven budgets as Finance Minister, asserts that India is teetering on the precipice of a collapse. Pitted against him is his son Jayant Sinha ,who was a M o S in the Ministry. He claims critics are not aware of full facts. Arun Jaitley ,the Finance Minister stoutly defends and points out that these are regular movements in the economy which is inherently strong. In all this cosmic confusion one welcomes sane assessment by independent thinkers like Bimal Jalan who has brought out a new book.

Dr.Bimal Jalan was the Governor of the Reserve Bank of India from 1997 to 2003. He has held exalted positions in the Government having served as Finance Secretary and Chairman of the Economic Advisory Council to the Prime Minister. For six years he was a member of the Rajya Sabha. He was Chairman of the Expenditure Management Commission. He served with distinction on the Boards of the I M F and the I B R D.

His academic attainments are impressive. He was Chairman of the World renowned “ Centre for Development Studies” in Thiruvananthapuram. He has close links with NCAER, Delhi and the ISI, Kolkata.

In the over three decades till 2014 there were twelve different governments. Of these four were multi-party coalitions and survived their five year terms. The remaining eight governments lasted less than two years. This resulted in the inevitable  absence of feasibility for any Government to initiate political reforms that would result in reduction of discretionary powers of ministers or reduce the role of the Central Government in the allocation of financial resources across the States.

There has been a dramatic change since the installation of the Modi government. It has become completely feasible  now for the Government to launch reforms to reduce the discretionary powers of independent ministers hailing from different parties  and introduce political changes that can surely reduce corruption and banish administrative bottlenecks in the delivery of services.

Jalan identifies some priorities for the future that can be implemented in a short-term of 2-3 years till the Modi government completes its first term in 2019.

While looking at the economic side, the book also consistently looks at the political side as well, taking pains to analyse the impact of the political situation and the political aspect of economic decisions.

The Congress party was at the helm of the affairs for about thirty years after Independence till 1980.The First Section of the book entitled “India Then (1980—2)" highlights certain economic developments during this period. Rajiv Gandhi as Prime Minister initiated a process of loosening the direct controls and regulatory framework for industries by the private sector as well as enabling the freer movement of foreign direct investment in the country. However, no change was noticed in the role of the Government or the public sector in the economy. In the 1980s the country suffered a persistent balance of payments problem and the foreign exchange reserves touched rock-bottom. Our capacity to meet import requirement became grossly inadequate. There arose an imperative and crying need for evolving a new development strategy and for revision of financial reforms that would lead to higher growth.

Section Two is  entitled “India Now—(2000-15)" and considers the economic and political situation pervading since the commencement of the 21st century. It highlights the important priorities for the future that will lead to India’s realisation of its full potential as one of the fastest growing emerging economies of the world. 

This Section also analyses issues relating to the separation of powers among the three wings of the State—the legislature, the executive and the judiciary. This discussion will be of special interest to those fighting for ensuring that no schism mars the unity of the three wings of the government.

Seventy years of Free India has proved that a democratic system has survived and India is regarded as  a role model for the peaceful transition of power from one Government to another after periodical well-conducted elections. However, the process of governance, the distribution of power among the different agencies of the state, the functioning of political parties and the work of Parliament must be periodically reviewed.

In the light of India’s highly disappointing record of organising the economy before 1990 Jalan outlines a  programme of action which is valid even today and will lay the foundation of sustainable growth and can be implemented quickly. Some of these are given below.
1.Early action to remove revenue deficit altogether; 2.Reorganisation of public sector enterprises; 3.Replacement of direct physical controls by fiscal,                         credit and financial regulations;                             4.Decentralised planning ;                                             5.Higher priority for full literacy ;                           6.Reduction of administrative costs;               7.Administrative system to be made accountable.

Jalan analyses the slow progress of reducing the role of the State. He outlines the priorities needed to sustain growth with stability. He also tackles the problem of finance and development. There is a need to take early preventive action and build firewalls and keep safety nets.

 The book  is a very thought provoking and deep analysis of this intersection of  Politics and Economics of our nation, concerning itself with the Economy of the country, its performance through the years in numbers as well as Macro Factors; and the political aspects of this, that is – the decisions, involved decision makers, systemic weaknesses and plus points as they exist and what needs to be done.

 The  chapter on – “Politics and Governance “ is the most crucial one in  the book. It is an in-depth study of  the system of governance--- analysing  the Judiciary and its link with the Executive, and Legislature; the gross deterioration of  the political class, accountability of the Cabinet – the myth versus the reality, noting with candid clarity that the Parliament and the Legislatures generally do what the Government wants them to do. 

Jalan analyses thoroughly  the myth of the separation of powers. He studies  Centre-Judiciary Relations, Collective Responsibility,  Lack of Accountability, Problems in Parliament and its functioning, and the Politicisation of Administration.This book is compulsory reading for all students of economics,banking, polity and laymen interested in the progress of India.

P.P.Ramachandran.
1 / 10 / 2017