Tuesday, November 24, 2020

Backstage by Montek Singh Ahluwalia ; Published by Rupa ; Pages 434 ; Price Rs.595/- *************************** Montek Singh Ahluwalia strode like a Colossus the Indian Economic Scene for over 30 years. He was held in respect and struck fear in equal measure. In him was an uncommon amalgam of intellectual brilliance, vision and propriety . Sans doubt Montek emerged as a world renowned economic policy maker. Only one of the two non--I A S Officers to become Finance Secretary, he dictated the contours of India’s fiscal liberalisation programme under Dr. Manmohan Singh and P.Chidambaram. Montek had many feathers in his Turban—always Blue---- Finance Secretary, Ministry of Finance, Secretary, Department of Economic Affairs, Commerce Secretary, Special Secretary to the Prime Minister and Economic Adviser, Ministry of Finance. He was Deputy Chairman of the Planning Commission. He has been involved with economic policymaking in India at senior levels from 1979 till 2014, except for a few years of the Vajpayee regime.Montek was the architect of the country's 11th and 12th Five Year Plans and witnessed the economy's deep issues during the tumultuous years of 2009--14 when the Global Economic Crisis derailed the Indian economy and caused the NPA crisis which continues to haunt to this day. He was awarded the Padma Vibhushan and the Skoch challenger Award for Lifetime achievement, both in 2011. The book under review is an uncluttered chronicle of one legendary, brilliant, self-assured and suave economist participating in the momentous changes in India that mirrored his own career. It portrays the story of the Indian economy being catapulted from a middling performer to a growth dynamo post the reforms. The book gives a clear, step by step account of the key moments in that reform process and is particularly useful on the build-up to 1991. It provides for the researcher a preliminary draft that describes the transformation of the economy from a state-run mixed economy to a market-led structure. The book is utterly free of malice and is an object lesson in being nice and a successful effort in not making enemies. The book does not say a single negative thing about anyone. There is a mild indirect criticism of the Gandhi family for constraining Manmohan Singh. The Gandhis frittered away the party’s talents. The chronicle has several laudable achievements . One observes admirable consistency and clarity of intellectual outlook. Montek emerges as a truly detached stoic. The only occasion when Montek becomes emotional is when he recounts the anti-Sikh riots of 1984, when Arun Shourie had to drive Montek’s parents to safety amidst the carnage. Expectedly Montek has many heroes the most favourite being Manmohan Singh. However,the towering personality is Montek Singh’s father who was a clerk in the Defence Accounts Service. His commitment to his children’s education was remarkable. After Montek got a double promotion in primary school, and was just beginning class in the new school year, young Montek’s mother took him away for a week for a wedding in the family, and the father sat in his son’s maths class for that week, so as to be able to fill his son in on what he had missed. Before his last posting, he had a choice, either become a promotee officer in his service and take up a posting in some remote part of the country or decline the promotion and relocate to Delhi. So that his children might get a better education, the elder Ahluwalia chose Delhi over becoming an officer. The third hero is the author himself--- Montek who studies hard, wins scholarships and friends, puts behind himself, in succession, DPS , St Stephens, Oxford, the World Bank, India’s finance ministry, the Prime Minister’s Office, the Planning Commission, the IMF’s global evaluation office and finally the post of deputy chairman of the Planning Commission . Montek accords to Manmohan Singh credit for pushing through the initial set of economic reforms in 1991, in a manner that would make Singh blush. Montek says Singh once described himself as an appointed prime minister. Without Rao’s backing and political guidance, it is open to doubt if Finance Minister Singh would not have been booed out of Parliament in one day. The path-breaking industrial policy that did away with licences and permits and clearances from the Monopolies and Restrictive Trade Practices Commission was not part of Singh’s reform budget. Reorienting India’s foreign policy away from its Westward bias and post-Soviet recalibration towards the East was Rao’s contribution, as was the decision to carry on with India’s nuclear programme.Ahluwalia stands squarely in Singh’s corner and even tries to recalibrate the historical weightage allotted to him. Montek is unwilling to locate UPA II’s unwinding in Singh’s own lack of control over the narrative. Montek has no hard answers.The charitable explanation is diplomatic restraint. Ahluwalia is unable—or unwilling—to pull his punches for the Left parties which had often publicly articulated their distaste for his policies. There is a side-swipe at the BJP’s duplicity in, first, opposing multiple strands of the reforms programme, then implementing the same agenda when in power and claiming credit for it. It is disappointing when Ahluwalia strenuously side-steps Singh’s inaction when corruption allegations and policy stasis undermined the United Progressive Alliance’s second term in Parliament, from 2009-14. One is surprised to note pretty little of Montek’s interactions with Narendra Modi, especially when he visited the Planning Commission as Gujarat’s chief minister, imploring the Soviet-style organisation for a higher allocation of Central funds and development grants. The book has a high autobiographical content, with either his role or his views invariably recorded for every major economic development in this period. Montek’s account is particularly valuable for its historical span, meticulous documentation and deft analysis. It is the first insider account of the United Progressive Alliance (UPA)’s decade in power, written by someone who served at the very heart of that government. There was a belief that Manmohan Singh was a weak leader and the country was yearning for a more decisive prime minister. “The performance of this government in the first seven of its 10 years was outstanding. The economy clocked an average growth of 8.4% in this period, the fastest growth rate ever”, writes Ahluwalia. “Pulling 138 million persons above poverty was hailed internationally as a major achievement.” The first problem was that the UPA responded inadequately, even incorrectly, to the 2G and “Coalgate” controversies. In the process, it allowed them to become scandals that shrouded its successes. Ahluwalia ends by revealing, “I have often urged Dr Manmohan Singh to write his memoirs but have had no luck so far.” The former PM is waiting for history’s verdict, confident it will be kinder than that of his contemporaries. Yet, that could be hampered by his refusal to leave behind his side of the story. One does look forward to the tale told by Manmohan Singh. P.P.Ramachandran. 11/10/2020.

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