NEW DELHI : The Prime Minister and Congress (I) president P.V. Narasimha Rao is seriously considering holding a “Narora type meeting” soon to counter the  growing criticism of the economic package and deal with the dissent in the ruling party on this account.

Many senior Congress (I) Leaders including Dinesh Singh and V.N. Gadgil have suggested to the Congress president that he involve the party leadership in a brainstorming session on different aspects of the structural adjustments which have caused confusion in the party.

Party sources said that Rao has accepted this in principle. The meeting is likely to be held soon most probably during the budget session of Parliament over a weekend either in Delhi or somewhere nearby. The conclave is likely to be an extended meeting of the Congress (I) working committee as in Narora 18 years ago.

Indira Gandhi had called a two-day meeting of around 100 party leaders in Narora in Uttar Pradesh from November 22-24-1974 at a time when the JP movement was at its peak and the dissent in the Congress (I) party had sharpened on a number issues.

Calling for a “Narora” kind of meeting now to go into the basics of the new economic policy in an environment of change both national and international Dinesh Singh who was in the cabinet of Indira Gandhi said: ”There should be serious consultations within the party involving the recognized leadership of the Congress (I) and not only in government.”

The idea of such a meet Gadgil said is “to thrash out issues among ourselves first”. The Congress(I) would most likely produce a document which could be the basis of holding camps in various states with a view to educating the party’s rank and file Gadgil said “We shouldn’t make the mistakes that Gorbachev committed of going for glasnost and perestroika without preparing the people and the party sufficiently”.

“There was confusion in the rank and file of the party on whether the new policy constituted a deviation from the traditional Nehruvian approach. The party leadership had to counter the “propaganda” that the package was a sell out to the IMF World Bank Gadgil said.

Like many in the party though only a few have so far come out publicly and the others are biding their time till after the completion Of the organizational elections Dinesh Singh expressed his un case not so much with the policy of liberalization as with the speed and manner in which it was being implemented This seems 10 be without any thought to its political fallout or preparation to contain it Gadgil on the other hand feels that the party’s “PR” is not adequate.

Dinesh Singh who is the latest to join the band of critics of the policy package apprehends that India may go the “Soviet way” recruiting in “total economic chaos” if structural changes are brought about too quickly.

Besides the time factor Indi being a democracy had to contend with social discontent Countries where these policies had succeeded were not democracies and. they had also had more time to implement them. “The danger is that we may go the Soviet way where the policies of liberalization desirable as they are have resulted in total economic chaos. With all their faults the old policies at least provided food and bread to the people” Dinesh Singh said. The former commerce minister expressed his disquiet at the government’s decision to import wheat when India had so far not only been self-sufficient in wheat and rice but had been exporting these items.

Dinesh Singh also hinted at outside pressure. “What I am concerned about is the absence of a package in which you take into account your national needs. And the national needs of two countries are not the same. Dependence on outside advice is dangerous the senior leader warned

Speaking about the aphorism which surrounded the new policy measures. Singh lamented “there is no visible conscious policy which will avoid social tension and promote growth.” There was devaluation for instance but no-body had assessed whether it would really boost exports. Instead exports had declined. “What has been the gain?” he asked.

Singh said he was unhappy with the price rise but also with the impression which had been given that the new policies were “geared to the urban rich at the cost of the rural poor”. Subsidies had been withdrawn which benefited the poor and concessions had been given which helped the rich. “Its fine for America to say that subsidies should be withdrawn from the farm sector but they (Americans) have not been able to persuade their European allies.

Referring to the finance minister Dr. Manmohan Singh’s declaration on Friday that an exit policy was around the comer and that a renewal fund would take care of the workers in the sick public sector units the former commerce minister said “today the question is of job creation and not layoffs.

Closures would mean a further drain on the rural economy for the workers would have to return to their villagers and add to the unemployment problem there”.

In America large industries could afford to lay off people because of social securities. There were also facilities for restraining and reemploying them elsewhere. But this was not the case in India. The result would be “tremendous social conflict” with serious implications for the Congress party.

Article extracted from this publication >> January 31, 1992