Liberalisation 2.0
The British have left. They have gone. It is nice to keep using there language. But it is a pain to keep following the rules they made to control the natives.
While the British left India more than six decades ago; we follow outdated rules & regulations written by the British (to control the Slaves). Our Bureaucrats truly follow the dictum, “Hum Angrez ke zamane ke afsar hai.!” We have inherited from our former colonial masters an edifice of “prior approvals” required from the state for too many economic activities. We are also burdened with a tradition of opaque rules with the caveat that “notwithstanding anything contained in these rules, the collector/commissioner/secretary/minister can provide an approval if he…thinks it proper”. And there’s the rub! Opacity and discretion! Our erstwhile rulers found it a useful tool to ‘control’ us and to make sure their favorites (usually British companies) got the coveted approvals. It is high time we as free citizens change the system. Otherwise we will be doomed to low growth, increasing inequity that favors’ crony capitalists and endless moral corrosion of our society.
While Economic reforms initiated in 1989 by P V Narasimnha Rao (oops Manmohansinghji !) Were relatively easy to implement & very easy for the general public to understand, we need a large number of Structural reforms. These Structural reforms have long term implications, are difficult for the general public to comprehend and hence agitate and demand for them. Since there is no demand from the ‘Civil Society” it is difficult for the Political Masters (The Legislative) to implement these structural reforms in the true spirit. The new Laws will have to limit the power of the State and not expand it. Regulations that don’t care for its people or for the rule of the law need to be systematically and urgently weeded out.
While Liberalization 1.0 was designed by an Economist; Liberalization 2.0 will need visionary administrator with legal knowledge
Structural reforms:
1. Taxation reforms ( Direct tax: DTC; Indirect Tax: GST
2. Land (Title and Survey) reforms,
3. Land acquisitions and rehabilitation
4. Education reforms
5. Agri marketing: Procurement, Ware housing and distribution
6. Labour reforms
7. Mining reforms
8. Judiciary accountability bill
9. Police reforms
10. Revamp of PDS ( Public distribution system)
11. Revamp of Fuel /Food/ Fertiliser Subsides.
Guiding Principles for Structural reforms:
1. Transparency, minimum discretionary powers to executive
2. Reduction of Bureaucratic interpretation and intervention.
3. Minimum interaction between Bureaucrat and public ( e-auctions / computerization)
4. Accountability
Every time there is a problem a Gandhi, a Jai Prakash Narayan and a Anna Hazare cannot be pulled out of the woodwork. Systems must be strengthened – Systems or redress and systems of appraisal. Hope we get someone as shrewd as P V Narasimha Rao to lead us through liberalization 2.0. Someone who rises above petty politics for personal gains and takes actions that are right for the country.
While the British left India more than six decades ago; we follow outdated rules & regulations written by the British (to control the Slaves). Our Bureaucrats truly follow the dictum, “Hum Angrez ke zamane ke afsar hai.!” We have inherited from our former colonial masters an edifice of “prior approvals” required from the state for too many economic activities. We are also burdened with a tradition of opaque rules with the caveat that “notwithstanding anything contained in these rules, the collector/commissioner/secretary/minister can provide an approval if he…thinks it proper”. And there’s the rub! Opacity and discretion! Our erstwhile rulers found it a useful tool to ‘control’ us and to make sure their favorites (usually British companies) got the coveted approvals. It is high time we as free citizens change the system. Otherwise we will be doomed to low growth, increasing inequity that favors’ crony capitalists and endless moral corrosion of our society.
While Economic reforms initiated in 1989 by P V Narasimnha Rao (oops Manmohansinghji !) Were relatively easy to implement & very easy for the general public to understand, we need a large number of Structural reforms. These Structural reforms have long term implications, are difficult for the general public to comprehend and hence agitate and demand for them. Since there is no demand from the ‘Civil Society” it is difficult for the Political Masters (The Legislative) to implement these structural reforms in the true spirit. The new Laws will have to limit the power of the State and not expand it. Regulations that don’t care for its people or for the rule of the law need to be systematically and urgently weeded out.
While Liberalization 1.0 was designed by an Economist; Liberalization 2.0 will need visionary administrator with legal knowledge
Structural reforms:
1. Taxation reforms ( Direct tax: DTC; Indirect Tax: GST
2. Land (Title and Survey) reforms,
3. Land acquisitions and rehabilitation
4. Education reforms
5. Agri marketing: Procurement, Ware housing and distribution
6. Labour reforms
7. Mining reforms
8. Judiciary accountability bill
9. Police reforms
10. Revamp of PDS ( Public distribution system)
11. Revamp of Fuel /Food/ Fertiliser Subsides.
Guiding Principles for Structural reforms:
1. Transparency, minimum discretionary powers to executive
2. Reduction of Bureaucratic interpretation and intervention.
3. Minimum interaction between Bureaucrat and public ( e-auctions / computerization)
4. Accountability
Every time there is a problem a Gandhi, a Jai Prakash Narayan and a Anna Hazare cannot be pulled out of the woodwork. Systems must be strengthened – Systems or redress and systems of appraisal. Hope we get someone as shrewd as P V Narasimha Rao to lead us through liberalization 2.0. Someone who rises above petty politics for personal gains and takes actions that are right for the country.
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