Why would economic reforms be a bone of contention for the opposition NDA while the ruling UPA trots it as the only way to revive the economy? The maverick Trinamul Chief Mamata Banerjee has resisted reforms with a stubbornness bordering on paranoia, even while demanding a huge recovery package of Rs 9000 crore from the Centre to re deem the economy of her state whose coffers had been bled by the Left Rule. Economic reforms have their downside because ordinary people hardly understand what they mean. What’s more, the only views we get to hear on the proposed reforms are those of industry honchos who hail it as the need of the hour for India. For the common person the present economic reforms have been linked to a hike in diesel prices, withdrawal of subsidies in LPG and the entry of FDI in retail. All three are manifestly anti-poor and will hit the common man. Hike in diesel prices will result in high cost of transportation of essential commodities especially in states like the North East where trains have limited access. Withdrawal of subsidy on LPG even partially will hit those who are already poor. FDI in retail has the potential to kill small and medium sized enterprises that used to exist as next door kirana shops. Also there is a feeling that FDI in retail will result in contract farming as the retailers will decide what farmers should grow. And that would depend largely on what the consumer wants, not only in India but for export as well. Hence farmers will have to conform with markets demands and go in for monoculture cropping. This may have long term effects on our soil and might even impact climate as we begin to introduce exotic crops and the necessary soil nutrients and pesticides.
A section of India’s agricultural scientists and micro-biologists have been trying to resist genetically modified crops on the plea that not enough studies have been carried out about the impact of such crops on the human body. But India is also a huge consumer market and the burgeoning population will force a demand for food crops that need to be grown and harvested quickly. These will be the spin offs of the new reforms agenda. The common person needs to be educated so that he/she can take an informed decision. A bandh is hardly a good method of protest. It is populist and the instrument of choice of political parties who use a bandh to revive their flagging image. What the country needs to do today is to engage in an informed discussion on the issue of economic reforms and for citizens to give their informed views.