LOGJAM IN THE PARLIAMENT CAN ONLY BE OVERCOME BY DEBATING

It was the last straw on the camels back for the logjam in Parliament when the cabinet cleared a proposal to allow multinationals like Walmart and Tesco to acquire 51 per cent stake in multi-brand retails and also raised FDI cap to 100 per cent from 51 per cent for single-brand retail operations like Gucci, Nokia and Reebok, to avoid opposition´s privilege motion on inflation and black money pending in the Parliament.

The move of the UPA government to moot FDI in retail is premature because it has a large number of Bills lined up for passing in the winter session of Parliament for the well being of the countrymen and for good governance. The untimely folly on the part of the UPA for taking such an important cabinet decision without taking its strong and trusted allies like TMC and DMK into confidence especially when the Parliament session is in progress has given a whip in the hands of the opposition for lashing.

Coming on the back of disruptions that crippled the previous monsoon session as well, the country has reached a situation where Parliament functions sporadically and there is a dangerous alienation of people from their elected representatives. The political grandstanding by both Treasury and Opposition benches has led to the principal business of Parliament being put on the back burner. Discussion and debate, too, have moved out of Parliament into the streets and television studios, with parliamentarians increasingly ceding space to unelected ´civil society' representatives, who seem to be carrying more conviction and authority with the public.

This is not only a poor substitute for the democratic process but also a mockery of the Constitution. The will of the people coming from the ballot is taken for a ride. The blame for it lies with the parliamentarians themselves.

The bellicose intransigence of the Opposition on the issue of FDI in retail also raises another key issue: where does executive authority end, and where does democratic accountability begin? The democratically elected government gets the power to take executive decisions and make policies for good governance for the well-being of the people who elected them. Hence the Government is to be blamed for the current standoff, since it only used its executive authority to decide on opening up retail?

Power has to be exercised responsibly and judiciously in the democracy. It is the Government's responsibility to ensure that the plurality of views in society is adequately represented at the highest lawmaking forum, and any decision affecting the society at large adequately taken into account. Had it adequately assessed the mood of the political class, or worked towards creating some sort of consensus, the Government would not have faced the embarrassment of seeing some of its own party representatives opposing the decision.

Unfortunately, some of the MPs in the treasury benches do not understand the implications of FDI in retail. They need to be educated and briefed about its advantages with reference to the environment outside the world. For example – Thailand has experienced tremendous growth in the agro-processing industry Indonesia, even after several years of emergence of supermarkets, 90 per cent of fresh food and 70 per cent of all food is still controlled by traditional retailers.

However, the Opposition needs to shoulder more of the blame. Not for opposing the Government's decision, which it has a right to, but for not allowing Parliament to function at all. The Government should be given an opportunity to defend its action in Parliament. The Congress should also not blame the Opposition if it is not sure of mustering adequate support within the House. The impasse, if prolonged, will only weaken Parliament as an instrument of accountability, and set back other pressing reform measures.

Both Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi will do well to remember that the economy in the country is in a perilous economic state. It is also clear that the global economic downturn as well as the lack of appetite for domestic reform has begun to seriously hurt India´s growth, which slumped to 6.9 per cent last quarter. It is high time for the Congress to implement second-generation reforms and end economic policy paralysis. The forecast on financial reforms is gloomy so far; hence UPA government needs to show more resilience that it is firmly in command.

The government is well within its rights to take executive decisions and need to seek the consent of the Parliament on every contentious policy. Any reversal of this decision will reduce UPA to a mere figurehead, given the present obstructive mood of the opposition.

With proper political management Congress can certainly ride out of the present FDI crisis because it has to bring awareness to masses especially to parliamentarians that FDI will help farmers secure remunerative prices by eliminating exploitative middlemen; foreign retail majors will ensure supply chain efficiencies; policy mandates a minimum investment of $100 million with at least half the amount to be invested in back-end infrastructure, including cold chains, refrigeration, transportation, packing, sorting and processing; sourcing of a minimum of 30% from Indian micro and small industry is mandatory; and a strong legal framework in the form of the Competition Commission is available to deal with any anti-competitive practices, including predatory pricing.

The author is former senior Professor Icfai Business School, Chandigarh. He can be contacted at –

E-mail: vasu022@gmail.com

Dr. P. K. Vasudeva,

H. No. 59, Sector-8,

Panchkula 134 109.

INDIA.