UPA: No time to lose

When the reward for poor performance is as generous as it has turned out to be for the UPA government, a moment to ponder over the mandate is essential. This is what the former UPA government presided over: Massive job losses, across-the-board wealth erosion, continuing high food prices and mounting wasteful expenditure. In essence, this was what a voter would see as the Manmohan Singh administration’s economic record during the Lok Sabha elections.

Now that the UPA is voted back to power with even greater numbers than before, it can draw one of two conclusions: It can sit back and replicate the past five years’ approach for the next five years—which will do very little to help the economy do better. Or it can be honest and admit, even if not declare, that the cause of its return to office was probably due to something other than its own economic management—and then pledge to do whatever it didn’t during its last term.

Singh, the intelligent man that he is, with his new-found political savvy, knows the score. Since the poll results came out, he has, on more than one occasion said the right words, demonstrated the correct body language and radiated confidence and self-assurance. “We have to work harder and better to secure a wholesome mandate entirely in our favour,” he told his party’s Members of Parliament on May 19. “Our first priority will have to be to re-energise government and improve governance.”

It helps that Congress President Sonia Gandhi thinks the same way, for Singh is still nobody without the latter—not in the Congress party. At the same meeting, Sonia Gandhi said: “We have won an election but also undertaken a serious obligation…. We have an opportunity to rebuild the eroded faith in some of our political and public institutions, indeed in us politicians as well.”

Ultimately, the people of India have cast a decisive vote that proves to Manmohan Singh’s detractors that he is, in fact, not India’s weakest Prime Minister. It is now up to Singh to prove in his second term that he is indeed a strong Prime Minister. In the following pages, we present the 3-R formula that Singh and his UPA government needs to adopt to transform itself. We also suggest how its electoral trump card —NREGS—can be turned into a true economic force.

Finally, we size up Rahul Gandhi’s possible footprints in the future economic landscape.

UPA 1.0 Rode on high growth, which was mostly not of its own making Lacked resolve and strategy to undertake reforms Almost wasted a sound legacy of reforms momentum and growth UPA 2.0 Has the opportunity and ability to make a new mark Seems willing and ready to undo its past record Can use global crisis to its advantage for selling tough decisions