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Mid-term appraisals of Five-Year Plans
have traditionally been a dreary exercise.
Nothing much is achieved, the report is
consigned to the dustbin, and the media
lets out one big yawn. But this year has
seen a marvellous exception: even before
the exercise is underway in earnest, reams
of newsprint and hours of airtime have been
dedicated to the cause.
It began simply enough. This year, as
usual, 19 consultative committees were set
up to see how far the first three years
of the Tenth Plan have taken the country
in areas like education, water resources,
industry, agriculture, etc. People from
all over were invited to join the committees.
But the issue took a turn for the extraordinary
when, in a strongly worded letter dated
21 September 2004, five economists threatened
to quit and deprive the country of their
advice. Their grouse: they wouldn't participate
in the process unless Planning Commission
deputy chairman Montek Singh Ahluwalia throws
out some individuals who work for agencies
like the World Bank, Asian Development Bank
(ADB) and McKinsey from these committees.
They argue that their inclusion on the committee
is "undermining the autonomy and sovereignty"
of the Indian state and they simply cannot
bear to "sit together" in the
same room with them.
How can some little piece of advice
from John Briscoe, senior advisor on water
at the World Bank, hurt India's sovereignty?
Or how can one Dr Sudipto Mundle, deputy
country director at ADB, influence the government
- if he is at all heard over the commotion
caused by 32 members of the Group on Transport
- into some intractable scheme in which
India finds itself dominated by powerful
foreign states. Senior economist and professor
at the Jawaharlal Nehru University, Prabhat
Patnaik, explains:
- The tone of
your letter sounds like Dr Ahluwalia has
inducted foreign agencies into the Cabinet
.
We are talking about the government. We
are very strong about drawing a distinction
between those who are included in bodies
constituted as part of state organs and
those outside. We cannot prevent Montek
talking to people from the World Bank.
There is a big difference between that
and having these persons on organs of
the Indian state. It is a symbolic difference
perhaps, but even these symbolic differences
are very important because they set precedents.
By themselves, what are these groups?
They are of no great consequence. But
once you have done this, you have opened
the way for involving them in further
activities of the government. In that
sense, the Planning Commission is as much
a part of the state as the Cabinet.
- But this is
just a mere review and not an exercise
that gets much attention or action.
For that matter, even the Planning Commission
has not been getting much attention for
the last ten years. Rajiv Gandhi referred
to the members as a bunch of jokers. Does
that mean one can just take anyone onto
these bodies? This is a matter of principle
and is unrelated to how important the
groups are.
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He
[Montek] has said that
World Bank is a stakeholder
and thats why
we have invited
them Prabhat
Patnaik |
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- How can some
little piece of advice from a water specialist
of the World Bank hurt the country's sovereignty?
We are not talking about hurting the country.
But the precedent of involving persons
from these organisations in official bodies
of the government is something that would
certainly affect the sovereignty. It is
what typically happens in banana republics.
We don't want India to become like that.
- But there
are limits to things - this makes sense
if it is an issue of defence or national
security, or even if the advice is binding
in any way.
The state includes everything, including
very important decisions relating to economic
ministries. The state is much bigger -
it is not confined to the armed forces.
We do not want - we just do not want -
these bodies to be associated with the
Indian state. No matter how much de facto
influence they may have. The fact that
the recommendations are not binding is
again not the point. It is quite possible
that these agencies are having a very
deep influence on policy, whether they
are associated with such committees or
not. It is quite possible that the US
State Department influences our foreign
policy, but that does not mean we invite
a US government official to a Cabinet
meeting. There is an important difference
of principle.
- What is the
basic fear? What will happen if we listen
to advice?
There is no fear. It is a matter
of objection on principle. There is no
question of fear. Most of these people
are our personal friends. I knew Arun
Maira in college; Sudipto Mundle is a
person friend of mine. We are simply objecting
to a process.
- But take,
for instance, cases where Indians like
NCAER director general Dr Suman Bery have
worked for the World Bank. He advised
and assisted in Brazil's privatisation
- an issue far more sensitive than, say,
water.
If I had been in Brazil at the time, I
would have raised the same objection.
This is precisely what we don't want India
to become. Countries in Latin America
that are heavily in debt are not in a
position to protect their sovereignty.
Countries in Africa that are in deep crisis
can't either. But that's no reason why
we shouldn't.
- Some other
economists argue that it is very unprofessional
of the five of you to allow the Left to
influence you to further their cause.
I can't respond to that. The fact is that
our political views are irrelevant. The
term 'Left economists' is coined by the
press. We didn't mention Left or Right
in our letter
We are not politicians.
We are not going out to make trouble.
- But very
few will believe you.
Well, if people carry a particular impression,
they are free to do so. We want this issue
to be discussed. If someone refuses to
confront these issues by dismissing our
position, saying that it is part of some
conspiracy, what can we do? I can't hold
a gun to your head and say please think
about this. But many people are responding
to these issues - we get emails supporting
our stand.
- But you can't
deny your leanings.
That is not the point. In our letter,
we have taken a position. When you come
and ask me questions, do I ask you your
political views? I don't. By attributing
that position to political views, attributing
motives, they are trying to escape confronting
these positions. It's a matter of escapism
- accusing us of unprofessionalism.
- I understand
that these experts have been invited in
their personal capacities and not as representatives
of these agencies.
They have not been invited in their personal
capacities. They are representatives of
these organisations.
- They were
not nominated by the agency in question,
but asked for by name.
I don't know why these consultants think
they are there, but the deputy chairman
of the Planning Commission has never said
- in all his communications with us -
that these individuals have been invited
in their personal capacities. On the contrary,
he has said that World Bank is a stakeholder
and that's why we have invited them. He
has said that these are organisations
financing state governments, they are
donor agencies.
- But even members
like Abhijit Sen have said that they have
been invited for their individual expertise
I am telling you what Dr Montek Singh
Ahluwalia has said. He is defending the
principle of associating these organisations
with such committees.
- Many will
argue if we had all the expertise we needed,
we wouldn't be where we are today
What is this expertise you are talking
about? The World Bank has ruined Third
World countries by its advice. The Congress
chief minister of Andhra Pradesh has said
that the disastrous rural situation in
his state is a result of following World
Bank advice. Their expertise is responsible
for a lost decade in Africa, a financial
crisis in East Asia
. if by following
their advice you are doing badly, this
expertise is bogus.
By the way, you involve McKinsey in Planning
Commission today, tomorrow they will go
and claim in Latin America: "Look
at our expertise, we are part of the Indian
Planning Commission."
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