R Jagannathan
Bringing back the halcyon days of 2004-08 is a pipedream for now, especially when the whole world is going down the tubes. But if anyone can bring some optimism back to the economy, it is P Chidambaram. The market has no doubts about his reformist credentials. He knows how to get his bureaucrats to think straight, and no one can pull wool over his eyes by proffering flaky policy options. After Manmohan Singh’s flop show over the last month, Chidambaram’s re-entry will thus send the right message. Given that so many things went wrong during the hapless Pranab Mukherjee’s stewardship of the finance ministry, Chidambaram’s first job is to reverse the pessimism and fix the bad legislation that we have been witness to. He is the best man for the job. Moreover, unlike Mukherjee, Chidambaram is not one to shrink from bold decision. His 1990s dream budget turned into an economic nightmare, but this time we are already in a nightmare of epic proportions – with inflation running riot and growth heading south. There may be better finance ministers out there, but if anybody can bring better economic management back in UPA-2, it is Palaniappan Chidambaram.read less read more
Arun George
P Chidambaram may have a reputation that precedes him as a Finance Minister but even he may not be the most eager to take charge of the ministry. With the Indian ‘growth story’ quickly turning into a horror one, his mere words of confidence and optimism will not be enough to alleviate the nation’s economic woes. Even if he does become the Finance Minister, he will still be a part of the UPA coalition, one that still has political allies that are perhaps less yielding than even the Opposition. He is unlikely to be able to reduce the fiscal deficit with the UPA relying on government-funded schemes to reach out to the aam aadmi. He is unlikely to be able to bring the Trinamool Congress on board for any kind of price hike, no matter how essential. A drought looms across India, threatening to disrupt any hopes for high economic growth. And to top it all off, Chidambaram comes with a target sign on his head as far as the Opposition in Parliament is concerned. Chidambaram is unlikely to make any difference as the Finance Minister, Manmohan Singh might as well have continued trying to awaken the economy’s ‘animal spirits’ instead of planning to pass on the responsibilty.read less read more
