Why Narendra Modi needs to take a class on economy from Manmohan Singh

Modi often used to complain that his predecessor speaks not. Well, when Manmohan Singh finally decided to speak, everybody could see the light on it

Countless times Narendra Modi has ridiculed Manmohan Singh for not speaking up. Once while speaking at a public rally, amidst much applaud and fanfare, he said that he talked to (then) Prime Minister Manmohan Singh. And then after a little pause he remarked, well, I didn’t say that Prime Minister Manmohan Singh talked to me, as the laugh-riot broke loose among his swooning supporters.

Well, on Thursday, in Rajya Sabha, this same Manmohan Singh rose up and spoke. And everybody could see the difference. Manmohan’s was sheer gravity and the eloquence of utterance and in barely six or seven minutes, he tore through the flawed philosophical principles of much-maligned demonetization drive of the Union Government. It wasn’t without a tinge of nostalgia too, as we could see that this man was the Prime Minister of India for a full decade and never once lost his dignity as a statesman on public platforms. If Indians haven’t already started missing him, then they soon will, I am afraid.

Manmohan Singh hit all the right notes in his speech. It was short, precise, prudent, eloquent and he launched a scathing attack on Narendra Modi’s demonetization drive without even raising his pitch for once, contrary he even managed to sound little apologetic about it, in his own humble manner. Manmohan Singh categorically said that though he shares the spirit of curbing the black money, it would be only flawed to assume that even a well-meaning policy can’t have disastrous consequences for the common people if not implemented properly. He correctly termed the demonetization scheme as “monumental management failure” and even went on to call it “a case of organised loot and legalised plunder” much to the applause of his fellow Congressmen.

He asked one simple question : “Name me a country where people have deposited their money in the banks, but they are not allowed to withdraw their money.” And this was a very fundamental inquiry. On Prime Minister’s rhetoric of giving 50 days for national service, his take was clear and precise that in fragile economic conditions as todays, 50 days is a hell lot of time and this is capable of having some very disastrous effects. He categorically pointed out that if people’s confidence in the currency system and banking system is shaken then it is not going to bode well for the days to come. And as we can see, the fortnight of demonetization has already made people feeling insecure and has driven protectionist impulses out of them, never a good sign for an economy which wants to thrive and flourish.

He thrashed the set of rules imposed upon the people of India to withdraw their own money. He further insisted that the way in which the scheme of demonetisation has been implemented, will hurt agricultural growth, small industry, it will hurt all those people who are in the informal sectors of the economy. And the GDP may decline by about two percentage points as a result of it. Manmohan Singh only highlighted the paranoia and confusion of Narendra Modi’s financial policies. The previous Union Budget of the Government was centered on agriculture and small industry sector. And the provisions of Seventh Pay Commision as well as of GST were supposed to give a boost to GDP growth rate numbers. With demonetization policy, Modi government has seemed to take a step back on both accounts. And now, to be honest, nobody knows precisely what this government wants to do with economy and what are its priorities.

Manmohan Singh was instrumental in the 1991’s historic economic reforms. As Finance Minister of India, he presided over the advent of open economy era in India. As Prime Minister, he tried his best to keep the pace of economy high and flying, despite reservations from the socialist and populist Congress leadership. No other man could have suggested better on demonetization than Manmohan Singh, if only Narendra Modi had cared to take a lesson in economy from him. On Thursday, after his predecessor’s speech, Modi went all the way to shake hands with him. Well, he could have done better by not ridiculing him in the first place. Now he knows what it takes to run a messy nation like India and decisions with massive implications and consequences can’t be taken on whims and impulse, even if they seem to make you popular among your swooning fan-following on social media.