Tuesday, August 26, 2008

It was Moditva, not just development

Despite all odds, Narendra Modi won the state elections in Gujarat. What was projected as a neck-and-neck fight turned out to be a kind of a sweep for the incumbent Chief Minister. According to some experts, Modi won on the development plank. Others, who hate him, contend he fought on the Hindutva issue. There is the third set of experts, who claim Modi evolved his own brand of ‘Moditva’, which won him the elections. So, what was it really that helped him?

Well, as far as development is concerned, Gujarat has always been a prosperous state. The reason behind this is the remarkable success of the co-operative movement in the state. The successful example of Anand Co-operative (famous for the Amul brand) is there for everyone to see. Gujarat has also boasted of several economic sobriquets before Modi became a full-time politician. In the old days, it has been called the Manchester of India, Diamond Capital, Milk Capital, and Ice Cream Capital. “The roads have always been good and so was the power supply,” adds Ahmedabad based social scientist, Tridip Suhrud.

What Modi managed was to amalgamate his personal charisma with both Hindutva and development, and presented a cocktail that was drunk by the majority of the voters in Gujarat. The man who gets the crowds worked up enough to shout ‘kill, kill’ during riots easily identified with the CM, as did the suave, pin-striped investor who attends conferences in five-star hotels and talks about investment and infrastructure. Modi’s packaging hooked the media, especially pink newspapers.

In addition, CM Narendra Modi turned out to be the man of the masses, the one who was in touch with the grassroots. “It’s pure theatre. He is a versatile performer,” says Tarak Mehta, distinguished Gujarati humour writer and playwright. His clean image also worked wonders for him. “The remarkable personal honesty and integrity displayed by Modi as an incorruptible politician has been one of the major factors for his high popularity ratings,” adds Suhrud.

But let’s not digress too much from the development debate. Let’s rate the economic report card of Gujarat during Modi’s tenure as the CM. On the face of it, it can be argued that Gujarat has continued its growth momentum in the past decade or so. The growth in state domestic product is remarkable. Newer employment opportunities have been generated and poverty levels have gone down dramatically in urban areas. Moreover, his corporate-style of governance – doesn’t it remind you of the former CM of Andhra Pradesh, Chandrababu naidu, who was possibly the first CEO-politician in the country – and the steps he took to abolish middlemen made non-resident Gujaratis quite happy. It was the NRGs who flooded the state with huge investments.

Modi has also done a great job with the state-sponsored project, Jyotigram, which aims to provide 24-hour electricity to all homes in the state. The same is true for the much-talked-about Sujlam Suflam project. Nevertheless, there are still several economic and social indicators, where Gujarat does not seem to have performed satisfactorily. “As far as overall development in the state is concerned, yes, Gujarat has developed. But if you talk about the trickle-down effect, it is missing completely,” says Indira Hirawe, noted Gujarati economist, and Director of the Centre for Development Alternatives.

According to data provided by the National Family Health Survey and other central agencies, Gujarat doesn’t fare too well. “Gujarat has done horribly bad on HDI parameters. Gross enrolment ratio is among the worst and dropout rate is high. On the employment front, it has increased slightly, but the quality of employment has deteriorated. Most of the employment generated are of casual contractual type,” explains Hirway.
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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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