The book is a collection of Rajiv Kumar’s widely read and appreciated columns in some of India’s leading newspapers over the last two years.
[alert type=”e.g. warning, danger, success, info” title=””]Exploding Aspirations
Rajiv Kumar
Publisher: Academic Foundation
Pages: 259; Price: Rs 895[/alert]
Rajiv Kumar is a D Phil in Economics from Oxford and Ph D from Lucknow University. He was Head of the economic “Think Tank” of the Government of India and connected with two large national apex business associations in the country. For decades he has been educating the nation through his widely circulated columns about the challenges faced by the nation. He displays a thorough grasp of the problems confronting India. We had reviewed in these columns his earlier work “Many Futures of India”.
The book under review is a collection of essays that portray his critical approach to the performances during the second term of Manmohan Singh and presents a proposal to again achieve the high growth rates of his first term. Kumar has prepared a special introduction for this collection of 55 essays.
The Indian economy recorded an average growth rate of 7.28 per cent during 1999 to 2010. However, growth rate has slumped to below 5 per cent in 2012 and 2013. A sense of despondency and despair descended on the nation with a tsunami of scams and systemic corruption. Refusal to undertake the necessary structural reforms for sustaining investment brought down the GDP growth and intensified inflationary pressures. Kumar squarely blames the Trinity — Dr. Manmohan Singh, Dr. Montek Singh Ahluwalia and the PM’s Economic Adviser, Dr. Rangarajan for the sorry pass we are in.
Kumar suggest five major initiatives to emerge out of the slough of despondency. First is to provide the people an even-handed, norm based effective governance. Second, to re-instate investors’ confidence and give a fresh start to the investment cycle. Third, to re-assure the senior bureaucracy and encourage it to be innovative in policy formulation and decisive implementation. Fourth, to act firmly against corru
tion and ensure transparency. Fifth, to initiate steps to control inflation and act firmly to step up food output.
The book is divided into five sections. The first section “Macroeconomic Issues” has 28 articles and tackles the trauma of the economy. Kumar expatiates on the continued “Slowflation” which will lead to drying up of employment opportunities resulting in growth of extremist and lumpen violence. He calls on the RBI to declare whether it prefers monetary policy to be exclusively targeted on controlling inflation or will it continue to include growth and employment in its set of policy objectives. There is a stirring call for building Indian “Think Tanks”. Providing good Indian brands in the knowledge sector will help India emerge as a leader on the global scene.
Section Two is on “Structural Issues” with seven articles. For India to achieve strategic and development objectives it is imperative that we must implement a reform agenda to increase competition, reduce dualism and ensure transparency. Kumar advocates vigorous business activism that reconciles business interests with the broader national interest.
The third section has nine articles on “Reforms and the Political Process”. A critical analysis is made of the role of politicians and the crying need for our leaders to focus only and solely on development, good government and employment generation. India should be an example for other emerging and developing economies by rigorously stamping out rampant corruption and achieving rapid and inclusive growth. There is an acute analysis of the AAP movement and the significance of Anna Hazare in evolving a dynamic “middle class” expressing its frustrations vigorously.
“South Asia” is the subject of the fourth section with seven articles. Major issues are harnessing of the region’s massive hydro-power resources, tackling issues of climate change and environment and dealing with cross — border human and drug trafficking. South-Asian regional co-operation is an indispensable agent of progress. There is an imperative need to improve India-Pakistan relations. Our national security will be achieved when we can influence decisions in our neighbourhood and by ceasing to be re-active and defensive.
The fifth and final section is on “India and the Global Economy” with four essays. India will have to push forward on its reform agenda to sustain near double-digit growth and generate sufficient employment for enabling us to play a useful global role. In fine, an incisive and lucid analysis of the government’s policies and a do-able plan for reform.
[alert type=”e.g. warning, danger, success, info” title=””]This book portrays Kumar’s critical approach to the performances during the second term of Manmohan Singh and presents a proposal to again achieve the high growth rates of his first term.[/alert]
P.P. Ramachandran
