Raghuram Rajan is right: Allowing intolerance to thrive will only stifle economic progress

The voices speaking against the ideological ‘intolerance’ in the country no longer confines to a group of writers and free-thinkers, but have grown to bigger circles comprising scientists, global agencies, industry captains and even the Reserve Bank of India (RBI). Speaking at the IIT Delhi convocation ceremony on Saturday, RBI governor Raghuram Rajan said the idea of anyone imposing a particular view or ideology because of their power shouldn’t be the way. Instead, all ideas should be scrutinised critically, Rajan said. [caption id=“attachment_2408524” align=“alignleft” width=“380”] Raghuram Rajan[/caption] Rajan said a quick resort to bans (of ideas or behaviour that hurt a particular intellectual position or group) will chill all debate as everyone will be anguished by ideas they dislike. It is far better to improve the environment for ideas through tolerance and mutual respect. Why did the RBI governor, whose job is to manage monetary policy and price stability in the economy, speak on ideological intolerance? To be sure, there is no evidence to conclusively state that what the governor has said pertains to the current wave of intolerance by self-proclaimed Hindu groups or on more specific issues such as beef ban or attempts to suppress those with differing ideological views. But, Rajan’s comments are certainly significant since one can draw correlations to the larger issues of freedom of speech and right to differ on opinion. “India has always protected debate and the right to have different views…excessive political correctness stifles progress as much as excessive license and disrespect,” Rajan said. Rising intolerance Instances of intolerance and religious hostility have indeed risen in the recent past in Asia’s third largest economy. One person was killed in Dadri in Uttar Pradesh by a group of intruders over rumors that he consumed and stored beef at home. There have been protests and attacks in different parts of the country similar beef-related issues, drawing wider debates on issue of individual freedom and tolerance. The Kerala House in Delhi had to even stop serving buffalo meat briefly after a Hindu group and the police raided the canteen there alleging that the meat served was beef. This incidence drew protests. Inflammatory comments by some of the BJP leaders over the Dadri lynching only worsened the situation. The protesters are also highlighting the fact that free-thinkers and rationalist writers like Kannada writer K S Bhagwan are getting death threats from Hindu right wing groups for his views on Hindu religious texts. It was not too long back when another Kannada author M M Kalburgi was shot dead for his comments on idol worship. Earlier, Govind Pansare and Narendra Dabholkar, both Maharashtra-based rationalists, had also been attacked and killed. As many as 37 writers and 12 film directors across the country have returned the awards they had earlier received, protesting against the killings and rising intolerance. Apart from them, 100 top scientists have also joined the chorus to raise voice against the ‘climate of intolerance’. In short, Rajan’s comments should not be seen in isolation. Industry captains such as NR Narayana Murthy too had said that there is considerable fear in the minds of minority in the country and the government needs to bring back a sense of confidence to these segments. Recently, a report by economic research and analysis firm, Moody’s Analytics, a division of Moody’s Corporation, had warned the Narendra Modi government about the potential consequences of letting ‘intolerance’ thrive in the country, citing that this can stall the much-needed reform process. Modi will risk losing his ‘domestic and global credibility’ unless he keeps his party members in check, Moody’s Analytics said besides raising doubts over the Modi government’s ability to push critical reforms in the economy in the face of rising intolerance and its political repercussions in Parliament. “While Modi has largely distanced himself from the nationalist gibes, the belligerent provocation of various Indian minorities has raised ethnic tensions. Along with a possible increase in violence, the government will face stiffer opposition in the Upper House as debate turns away from economic policy. Modi must keep his members in check or risk losing domestic and global credibility,” the firm said. The BJP, however, seems to have taken a defensive approach to the criticism on ‘intolerance’ and feels Modi is the biggest victim of ideological intolerance. “While the government led by Prime Minister Shri Narendra Modi is trying to accelerate India’s growth, there are many who have never intellectually accepted the idea of the BJP being in power,” said finance minister and senior BJP-leader Arun Jaitley . “This obviously includes the Congress, many left thinkers and activists. Over decades they have practised ideological intolerance towards BJP and since 2002, the Prime Minister himself has been the worst victim of ideological intolerance.” Further, Jaitely says the wellwishers of India must make sure that no action or statement on their part provides a tool in the hands of those who want to obstruct the India growth story. Jaitley’s argument, however, is completely misplaced because the real question is not who spoke against intolerance and on what ground. The Indian constitution provides the freedom of expression to all its citizens and everyone has a right to differ. As Rajan said all ideas should be subject to scrutiny and debate and cannot be blindly imposed by the powerful on the weak. Threat to reform Beyond the ‘intolerance debate’, what is critical to note here is that the Modi government, which at present does not have a majority in the upper house of Parliament, is running a huge risk of inflating the problem if it is unable to bring back confidence among the people. The ‘intolerance’ episode gives enough ammunition for the Congress and other opposition parties to stall the functioning of the house, where many critical reforms such as the GST and labour law are stuck. For a country, which aspires to grow at 9 percent it is paramount to focus on reform process that brings economic progress and not give room to politics ruin the precious time of Parliament over other issues. The outcome of the Bihar elections will be crucial to Modi since a victory there would help the BJP gain the much-need political control in Rajya Sabha to push ahead the reform juggernaut. According to Bloomberg , Moody’s Analytics projects India’s growth at 7.6 percent in the current fiscal year, below its potential of 9-10 percent. Closing this gap, according to the agency, will be tough as the global environment is weak and the Modi government has failed to deliver key promised reforms. As Fistpost has noted before, in a slowing world, India has the potential to take the central stage among other emerging economies, but the country does not have the luxury to waste its precious time for reforms any further. The government should take serious note of the warnings from Rajan and Moody’s Analytics and address them. The task at hands is to bring back the confidence and not let Opposition utilise the situation to stall the growth-inducing reforms.