Aam Aadmi Party (AAP) And The Lure Of Populism
Because Aam Aadmi postured moral high ground and flaunted a leaning towards a clean image, it received a remarkable confidence vote to be elected the second largest party in Delhi, the National Capital Region. However its first infraction of principle was brought about by the party itself. Its claim to election was its portrayal of Congress as a party perceived to be tainted. Yet, after the Congress was rejected on that score it forged an alliance with that very party in order to be in the seat of power. Birth marks are difficult to conceal and when they are on the face, visibility is high. When the beginning is squeered, everything becomes so, goes a Tamil saying. AAP has enlisted that disability. When it is ever conscious of that, it has to seek votes by other means. Herein comes ubiquitous populism, to edge out economic principles as the sheet anchor of good governance. This has already happened.
“Creating, Consolidating, conserving and distributing wealth, are four tasks in governance” – Thirukkural.
To what degree do we see them in the announcements made by AAP since its placement in authority in Delhi? Part subsidy in water use to a segment of the Delhi population at an estimated cost of Rs. 3.5 billion is already announced. Also announced is a similar payment waiver for consumption of electricity. Were such measures unknown to previous Delhi administrations? The announcement of land titles for illicit occupation has only to take precise form. Regularisation of encroachments is a term for extending legality to default of non-removal by earlier regimes. It’s a stamp of permanency for slums as a legitimate part of the nation’s metropolis. If so much in so short a time, won’t there be a cascade in the months to come?
FDI And MNCs
A major policy decision on Foreign Direct Investment (FDI) has also been announced in rejecting it for retail trade. The first fault was to have declared it without the concurrence of the alliance partner though AAP is a minority government. A 40% seat win is not a clear mandate for a unilateral policy declaration. The decision is on weak ground since the alliance partner is opposed to this policy and had decided in favour while in power.
The more serious aspect to it is that as the Indian economy gets modernized, FDI becoming an integral part of India’s economic philosophy and programme is inescapable. Playing the ‘Luddite’ role of breaking up or opposing it can only delay its foray. Retail was only MM Singh’s accommodation for a while till India is ready for the full flush of FDI and MNCs. About three years back the Prime Minister spoke about the importance of foreign capital in trade. He said that modernizing trade would imply cold chains, refrigerated transport and a retail network. Half a billion dollars are needed in investment and neither the govt. nor the private sector had it. Foreign capital alone commanded it. Read More

