23 - Left Politics and Modern Economics

Summary

When Manmohan Singh was Finance Minister of India, his critics pointed out that (a) his early writings had given the impression of his being a left-oriented economist who would wield his pen in favour of the underdog in any context, be it international politics or domestic policy debate; whereas, (b) once he became Finance Minister, he tried to liberalize the economy, encourage free trade, and make more room for market-based policies. To many, especially to the Indian Left, these facts seemed contradictory. They criticized Singh for not living up to his writings.

This was a mis-assessment. There is no real contradiction between (a) and (b). In fact, I supported Singh's reforms precisely because he combined both (a) and (b). Economic liberalization without concern for the disadvantaged gives rise to right-wing policies of the kind seen in Ronald Reagan's America and Margaret Thatcher's Britain—and to a certain extent even in India in the 1980s. I have no sympathy for it.

On the other hand, compassion without the ability to conduct clear-headed analysis can prove to be very costly. The world economy today is extremely complex; but there is also a large amount of analysis and statistical information available on this intricate organism. To ignore this information and to live by slogans and rhetoric is to court disaster. By failing to distinguish between Singh's reforms and rightwing economics, which ought to be abhorred, the Left has done us a great disservice.