Finally, the government of the day was able to get parliament to approve foreign investment in multi brand retail. It is indeed a sad reflection of Indian democracy that while most speakers and parties in Parliament were opposed to the policy, fear of CBI and perhaps their own party calculations forced some to stage either a walkout, or as in the case of BSP, to actually vote in favour of the government.
MJ Akbar's latest article summarises the issues well.
Some related issues get highlighted -
1. Power of the central government to manipulate the smaller parties through a threat of CBI action. The "lokpal" proponents had long argued that an "independent" CBI, which does not require government approval to investigate and pursue the corrupt is needed to weed out the evil of corruption. The current vote shows the dangers of a CBI that is handmaiden of the centre.
2. The need for a "bipartisan" body that investigates and prepares the background paper for financial impact of government decisions - along the line of the CBO in the US Congress. Debates on policy in India are rarely backed by a common set of assumptions and figures. Consequently, there is little that the public is able to get out of debates - with most speakers talking AT each other rather with each other. Another by-product of this would be to restrict the discretion that the Centre has to offer largess to "compliant" states while holding back financial assistance to those who dont agree with them.
And for those who continue to treat all foreign investment "liberalization" proposals as "reform" a shift is happening in economic thinking - a slow move away from the extreme right. As always, when there is a stress in society, "left" leaning thinking becomes more acceptable. Read Krugman here.
MJ Akbar's latest article summarises the issues well.
Some related issues get highlighted -
1. Power of the central government to manipulate the smaller parties through a threat of CBI action. The "lokpal" proponents had long argued that an "independent" CBI, which does not require government approval to investigate and pursue the corrupt is needed to weed out the evil of corruption. The current vote shows the dangers of a CBI that is handmaiden of the centre.
2. The need for a "bipartisan" body that investigates and prepares the background paper for financial impact of government decisions - along the line of the CBO in the US Congress. Debates on policy in India are rarely backed by a common set of assumptions and figures. Consequently, there is little that the public is able to get out of debates - with most speakers talking AT each other rather with each other. Another by-product of this would be to restrict the discretion that the Centre has to offer largess to "compliant" states while holding back financial assistance to those who dont agree with them.
And for those who continue to treat all foreign investment "liberalization" proposals as "reform" a shift is happening in economic thinking - a slow move away from the extreme right. As always, when there is a stress in society, "left" leaning thinking becomes more acceptable. Read Krugman here.
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