MMS - my own tribute to the nation-builder

A lot has been said about the legacy of Manmohan Singh, both as Finance Minister of India in 1991 when he announced the opening up of the Indian economy, and as Prime Minister of India from 2004 to 2014. As a lifelong champagne socialist, this note is to offer my thoughts on THAT Union Budget of 1991 that proved to be the turning point for India in myriad ways.

In 1991, India was a country that followed Soviet-style five-year plans. From an ideological perspective, the Cold War had just ended, American capitalism had triumphed, the USSR had fallen, and as Francis Fukuyama boasted, "It was the end of history". 

From a realism perspective, the Indian economy was in tatters. India had a few weeks worth of forex left. With the perceived end of socialism and a weakened Russia (its main international ally then), only the institutions of the Washington Consensus (IMF, WB, US Treasury) could have bailed India out. That bail-out came with conditionalities. 

What followed has been studied, analysed, cited, praised and lamented endlessly - the turnaround of the Indian economy.

So -

• Did India have a choice? I don't believe so.
• Did India benefit from the opening up of the economy? Yes, of course. Without consulting official/formal measures like the Gini co-efficient, I am sure I can safely say India was no egalitarian society even pre-1991. And any increased income and social disparities since 1991 can be attributed to corruption and mismanagement rather than opening up of the economy. India's grassroots education system, PDS, basic infra, income tax collection, electoral politics, all leave too much to be desired. And yet, on aggregate terms, India has also pulled more people out of poverty, created a manufacturing and services hub where none existed, moved up to become a middle-income country, reduced its dependence on agriculture, created disposable income and better life opportunities at least for a section? (And of course, I'll be the first to concede the country tinkers with goalposts on all of these.)
• In hindsight, did India make virtue of necessity? Yes, absolutely.
• Where does this leave the legacy of MMS? In my view, among the last of the generation of upstanding political leaders in India alongside A.B. Vajpayee, Sitaram Yechury and others to rise above divisive and power-hungry electoral politics, retain their academic bent, and command respect across parties. A stalwart who deserves to be remembered as having been far, far more than the sum of his policies.

(Pic credit: internet)