With FDI victory, UPA govt loses ruse for inaction

It was the magic of numbers which played out in both houses of parliament when the minority UPA government, shedding its timidity, adroitly managed to sail through debate and voting over foreign direct investment (FDI) in multi-brand retail last week in spite of the overwhelming political opinion against the move. Through a confrontation, what the opposition in effect presented the regime, riddled with scandals and policy paralysis, was a golden opportunity to look like a force of reform.

The opposition’s reckoning was that a mishmash campaign of the Left and the Right, aided by the Trinamool Congress, would be able to generate enough ruckus across the country against the FDI issue and embarrass the government at least in the Rajya Sabha. But that did not happen although the tone and tenor of the debate gave a clear indication that the majority of parliamentarians had strong reservations about the government’s controversial policy.

When it was generally thought the UPA government has almost lost the plot, the Congress leading the coalition was able to spring a surprise by managing a majority to defeat the opposition motions with the help of Mayawati’s Bahujan Samaj Party and Mulayam Singh Yadav’s Samajwadi Party. Displaying classic examples of political opportunism, both parties took a stance at variance with their earlier rhetoric and staged a walkout in the Lok Sabha to hand the government the advantage in numbers. During the Rajya Sabha debate the BSP went one step further to vote for the government on the issue.

While the Congress has excelled in the fine art of coalition politics with its deft political management, the party’s overt dependence on the SP and BSP is likely to prove a double-edged sword for the government in the long-run. Both leaders can be intractable and are sure to extract their pound of flesh whenever they bail out the government in similar situations.

What was also clearly projected on the national stage was the underlying BSP-SP tussle. The message of Mayawati’s overtures to the government was that she is a more reliable ally as it sails into more choppy waters while bringing forward other economic reforms. The Congress knows pretty well that it’s a troublesome twosome to deal with as there’s no love lost between them. But managing a live-in relationship with both isn’t beyond Congress’s considerable courting skills if its most recent feat is any indication.

The political drama that was played at the highest level, however, must leave one with a feeling of disgust. The inner contradiction between the members’ proclaimed political beliefs and their behaviour in the house has underlined the fault lines in coalition politics. The BJP, itself an erstwhile champion of the FDI idea, appeared either hypocritical, or suddenly seized with misgiving about the very nature of economic liberalisation and globalisation.

Under the shroud of the debate, what all parties focused more was for playing to the gallery. The voting was inspired by politics rather than policy merit. The deliberation on the issue was not free, given that MPs were constrained by party whips. Some political parties opposed it to pick up votes from select constituencies and for others it provided an opportunity to embarrass the Congress. It was, however, a robust demonstration of politics in action.

This might be a debate forced upon the government with the threat of persistent parliamentary obstruction. While UPA’s victory may pave the way for more purposive policy action, what was more reassuring from the recent debate was the return of normal business in parliament. It is a sad reflection of recent wasted sessions that the outcome of the debate and voting was perhaps less important than the fact that it took place at long last.

As far as the role of the principal opposition party is concerned, it’s time it does a rethink on what purpose it has achieved by indulging in politicking and wasting the two houses’ time on an executive decision which did not require any parliamentary approval in the first place. By insisting on a debate with a vote, the BJP had hoped to put the government in a difficult situation. But now the egg is on its face.

The BJP must ask itself why its political instincts fail it at critical moments, making it seize upon the wrong cause. Whether it was obstructing parliamentary debate over an entire session for a 2G JPC, making common cause with Team Anna or Baba Ramdev, or refusing to discuss coal allocation in parliament but making a big commotion outside, the party has repeatedly wasted its many chances to seriously embarrass the UPA. The party definitely needs a more mature leadership which upholds the nation’s interest above that of the party.

FDI in retail marks the first of a series of policy decisions where the states will have to decide how they want to run with the issues. Hitherto, on major policy measures having national implications, the character of India’s federal structure has almost always thrust the onus on the central government to take a final stand, with states largely staying out of the operative decision-making process.

But FDI in retail, however, marks a clear exception and throws the spotlight on states. The policy decision, by putting the veto power in the hands of the state governments, forces each ruling dispensation to decide if it wants to allow it in its fiefdom. The option of an ambiguous stand is not available any more, thereby accounting for the discomfort of a number of state governments, especially those in the northern hinterland.

Politically, the minority UPA government has won the first round. But how long this can be sustained and carried on is open to question. The government has many more challenges before it such as inflation, sluggish growth and a weak rupee, besides important pending legislations which have a far more significant impact on the lives of millions. The victory has robbed it of any further excuse for inaction in facing these challenges.