UP elections and economic reforms

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January 18th, 2012 Tarun Chaturvedi

The economic reforms are stuck. The government at the centre (UPA) has been jammed since long. Some of the major reforms have gone to the backburner manily because of the electoral politics being played by the major alliance partners. Mamata Banerjee has suddenly become the villan for having opposed FDI in retail and then again putting her foot down at the time of the Rajya Sabha voting for the Lokpal. Rumours tell us she has been instrumental in opposing a large number of reform oriented bills the UPA has wanted to introduce.

If the above is true, then has the UPA decided upon a strategy to tackle the Kolkata Lady or has it resigned itself to time? The outcome of the elections in Uttar Pradesh may throw up some light on the future course of the economic policies of the UPA. Going by the current trends, it is clear that the BJP and the Congress are fighting for the third and the fourth place. That leaves BSP and SP in the race for the top slot. Anybody who has been following the trend in UP will clearly agree that the gap between the second and third in the UP outcome will be huge.

Given the above scenario, both BJP and Congress will be happy to play king makers. This is where the future of the UPA’s economic reforms comes into play. If SP manages a close second and is able to form a government in the state with some support, Congress will be the first to spring up and help. Of course, in return it will expect the 23 MPs of the SP to become a part of the UPA in the centre. This will ensure the UPA does not have to depend on Mamata, who controls only 19 MPs. If this scenario becomes a reality, the UPA may be in a position to take a strong stand on certain economic reforms without bothering about the noise created by Mamata Banerjee. Hence all hopes of economic reforms (much needed) now depend upon whether the SP can cycle (its election symbol) its way to power in UP.

But hold on, weren’t we taught economic reforms are dependent upon the state of the economy and not on the election outcomes of a particular state? Well, it seems times have changed since we were taught this, so let’s adjust to the new reality. So the UP election results hold the key to the future of the economic reforms in India. Let’s all wait for them.

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One Response to “UP elections and economic reforms”

  1. K,VITTAL SHETTY Says:

    For the media both print and electronic THE ECONOMIC REFORM MEANS removing all constitutional road blocks for the rich and greedy industrialists to exploit the public without any restrictions.Whatever constitutional guarantees given to the poor and middle class families and particularly to the salaries class and labor to be removed to facilitate rich to become richer and figure in the global rich list. WHAT BETTER WAY TO INDIA GO NEPAL WAY AND FOR GROWTH OF NAXALISM AND MAOISM

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