JIP Special
finally, out…arvind panagariya behind enervating, inspiring, untiring, on-point-relevant, out-n-out Pro-Indian in-every-way MODI(NOMICS)…When thus Panagariya talks on Modi, this is how it is. This despite wide array of attacks (easily predictable on predictable verbose, voluble, cantankerous, lines without any ‘outcome-of-any-kind’ since decades) on him from the so-called anti-US, pro-Soviet economists, strategists, planners…They of course shout hoarse without any accountability on those whom they castigate.
Factually, how do U see Modi as PM ?
Narendra Modi is best positioned to deliver growth.During the last 10 years, political discourse in India has moved far away from the growth imperative. Sadly, discourse has moved to the left and politics of entitlement and sops with no focus on the core policy reform issue. …Modi as PM, notice it wide-eyed, has fully geared up India, delivering Economic Upliftment to take India in the highest strata of Global Economy.
You have studied the Gujarat growth model at length. Why is Narendra Modi silent on the core economic agenda?
Even he feels, at this point, what is the purpose of discussion of reforms? Why get into any needless controversy? He has been keen to restrict himself to talk of building infrastructure (that connects directly with the masses, their economic upliftement). Modi, however, is careful not to talk of entitlements and sops. He talks about the need for 24-hour electricity but does not either say it is going to be free or to be subsidised.
So is economy not going to be an important issue ?
The narrative surely has change. it (economy) may not be at the forefront as in the campaign. But yes, Comfortable economy for all Indians of all hues everywhere in the country is being assiduously worked out by Modi.
You are said to be assisting the BJP in building its economic manifesto. What is your advice to Modi?
This is not correct. Occasionally, friends in the BJP ask my advice and I pass my advice; like, (chartered accountant, now Union Minister) Piyush (Goyal) came to New York and we had a chat. That’s it.
Why Modi and the BJP are not pitching economic reform agenda as part of their (governance) strategy?
The apparent current lack of interest in economy by Narendra Modi is a strategic move and not a symptom to come. He is best positioned to deliver the growth story in the PM slot.
How come Modi bought your economic prescription to dismantle the Planning Commission and MNREGA and promote privatisation and usher in labour reforms?
Modi has to be judged on his successful governance track record in Gujarat. Going forward, he must pick up his learning from the likes of Narasimha Rao and A B Vajpayee who religiously pursued the reforms agenda. The Manmohan Singh-led government abandoned the path totally during the last ten years.
How can Modi move forward at a pace you would love him to do?
You have got to see Modi as distanced from traditional BJP leadership. But indeed there could have been pressure on Modi if he got less than 200. Since the BJP got much, much more than that, he is now worryless. Now Modi is truly implementing reforms. My own sense is, had he not got required number of MPs to govern freely, he would let his government fall and seek a fresh mandate like Vajpayee did in 1999, that is if he was not
free to act on his own. But now its OK for him and he will do as and when required.
Do you assume Modi will dismantle politically sensitive schemes like MNREGA?
As an economist, I would like him to do so, but I know no politician would actually do that. Hence, my recommendation is to give an option to people to choose between a direct cash subsidy and PDS (public distribution system) and indirect sops. I am all for being pro-poor but the mechanism has to be sound, leakage-free, and pro-asset creation.
State-Centre relationships have come under strain, especially on issues of jurisdiction, financial empowerment and delivery. Going forward, what should be the agenda for the present PM?
States and the Centre need to work more closely. There are interesting models of growth across states in India. Learning from one another has to be institutionalised. The entire action is in states where the projects are located: You need water, electricity, infrastructure, land, so on, so some partnerships there are necessary.