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Wednesday, February 16, 2011

Coalition Dharma is Compromise: PM

Doc counters perception of drift in scam-scarred govt, says reforms are on

Prime Minister Manmohan Singh on Wednesday confessed that coalition compulsions had forced him to make compromises, as he sought to counter the perception of a drift in his government battered by a succession of corruption scandals. "Some compromises have to be made in managing a coalition," Singh told senior television editors in a televised interaction, his first since the scandals started hobbling the UPA-II coalition since late last year.
But he also declared that the government, whose coming to power in 2009 had triggered hopes of major reforms, had not given up on them, would last its full term and that he was not against a Joint Parliamentary Committee probe into the 2G scandal.
The government has been on the back foot after A Raja, the telecom minister from coalition ally DMK, was forced to resign and subsequently arrested amid allegations of massive irregularities in allocating airwaves for mobile phones.
Singh admitted that despite being the prime minister, he did not feel empowered to choose his team of ministers.

"You cannot suggest your preferences and you have to go by the choice of the leader of the party. Raja and Dayanidhi Maran were the choice of DMK and I had no reason to feel that anything seriously wrong has been done. I did not feel that I had the authority to object to Raja's entry although complaints were coming from some companies who were not benefited and some who had not benefited adequate
ly. I was not in a position to make up my mind about Raja," he said.
During the 70-minute interaction, the prime minister faced questions on abuse of power by his ministers and his inability to act firmly against the wrongdoers. He sounded defensive when he was repeatedly told that the government was attracting attention only for the wrong reasons.
Business leaders felt Singh spoke openly and honestly, but were disappointed that he missed an opportunity to provide a new direction when the mood in the country is downbeat.
"The mood of the country is down, budget expectations are extremely low and this would have been an opportunity for him to speak about a second wave of economic reforms. It would have been a pleasant surprise," said Hero Corporate Services Chairman Sunil Munjal.

    Singh's Dilemma
Manmohan Singh had to make a bunch of "compromises" to run the coalition. Here's a look at policy paralysis that have precipitated the crisis, and what lies ahead for the PM


DENTED IMAGE: While Singh has all along blamed the Opposition for "stalling" reforms, the excesses of his ministers seem to have put him in a spot

CHARGES FLY: For his part, Singh has claimed he has been trying to work with the Opposition. But the Opposition says that there has been no back-channel communication from the PM.

UNCOOPERATIVE PARTY: PM has also disputed the view that his government was reluctant to rock the boat with big-bang reforms. However, the fact is that his party hasn't been very keen on key reforms.

HANDS TIED: He has asserted that his government was not lame-duck, but he had admitted that he didn't have the elbow room to select many of his ministers.
"Raja and Maran were the DMK's choice" This explanation by the PM has invited angry responses such as "managing coalitions does not mean making compromises that impoverish the nation."
The Road Ahead CHOICES BEFORE THE PM
CABINET RESHUFFLE: Easier said than done. The previous one ended up rewarding the not-so-worthy ones. GRAFT PROBE: A prompt investigation into graft charges could widen the emotional distance between his party and the allies as well as a section of industry. LADY LUCK: Corruption and inflation could be the big themes in assembly polls. A defeat in TN will be seen as a public rebuff. But a good show could help the UPA to reassert itself.
Controversies Harming Nation
On the controversial 2G spectrum allocation, Singh said that he went with Raja's decision as he was told the policy had the approval of all relevant departments — the finance ministry and telecom regulator Trai.
But it has since emerged that RBI Governor D Subbarao, who was the finance secretary when the licences were allotted, had questioned the process in a letter to the then DoT secretary DS Mathur. Subbarao had asked how the price of airwaves determined in 2001 could be applied for licences in 2007. The then finance secretary had also asked for the stalling of the process. Subbarao last week told a parliamentary panel that the finance ministry did not follow up its opposition to
Raja's decision. The prime minister said the controversies were harming the nation and spoiling its image. "This sort of atmosphere is not good. It saps our own self-confidence," Singh said.
The series of scandals - from the Commonwealth Games scam to the Adarsh housing scandal to the telecom scam - have put the government on the defensive, creating an impression of paralysis in decision-making and triggered talk that the prime minister is leading a lame duck government just two years into its five-year term. But Singh refuted the suggestion.
"Whatever some people may say - that we are a lame duck government, that I am a lame duck prime minister - we take our job very seriously," Singh said, adding that he had no intention of resigning. "I nev
er felt like resigning because I have a job to do ... I will stay the course."
The prime minister asserted that all those involved in corruption scandals would be punished. "I wish to assure you, and I wish to assure the country as a whole that our government is dead serious in bringing to book all the wrongdoers, regardless of the positions they may occupy," he said.
The prime minister also rejected suggestions that UPAII has not been successful in policy initiatives as there was a marked reluctance to undertake big-ticket reforms. "We have not given up, we will persist. There are difficulties, particularly when the government is not allowed to function."
Singh laid the blame for the lack of legislative momen
tum on the opposition, particularly the BJP, saying that the party was not allowing the goods & services tax (GST) to pass legislative muster as it wanted the government to stop action against former Gujarat home minister Amit Shah.
The BJP disputed this, saying the GST was being opposed as some of its key elements went against the interests of state governments. "These statements cannot explain the legislative and governance paralysis," said BJP leader Arun Jaitley. Left parties also criticised the prime minister for blaming problems in governance on coalition politics. CPM politburo member Sitaram Yechury said Singh should refrain from running a government if coalition politics was limiting his effectiveness.



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