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    South Asia
     Sep 25, 2012


UPA enters into risky alliance
By Priyanka Bhardwaj

NEW DELHI - A 10-day-long political soap opera in India has come to an end.

By confirming its support for the governing United Progressive Alliance, the Samajwadi Party has eased threats to the existence of Prime Minister Manmohan Singh's governing United Progressive Alliance (UPA) raised by the exit of key member the Trinamool Congress (TMC).

TMC Chief Mamata Banerjee, aka Didi, last week withdrew her support for the coalition over planned petroleum price hikes, legislation that will allow foreign direct investment in retail and corruption scandals, likely concerned these would impact on her pro-poor, anti-globalization image. Didi's move was perhaps

 

predictable considering the maverick leader earlier pressurized Singh to sack the railways minister, Mukul Roy, for daring to introduce a controversial railway fare hike.

The TMC's withdrawal of its 19 parliamentarians left the UPA two seats short of a 273-seat majority, leading to talk of a snap election. However, the support of the Samajwadi Party with its 22 parliamentarians has saved the alliance - for now.

Questions have been raised over the future political survival of the UPA, and Singh, as opposition parties will not ease up on the ruling alliance over the Commonwealth games, 2-G mobile phone "Coal-gate" scandals. Inflation also rose more than expected to 7.55% in August, driven by higher prices of food and manufactured items.

Detractors liken the government's reform efforts as desperate attempt to arrest Singh's image as a "non-performer" in the eyes of Western media, pointing to him allowing FDI in retail, and improving Indian risk to foreign capital with a slew of measures like reducing taxation on foreign borrowings from 20% to 5%.

Singh's second tenure has been a tale of economic disappointments and policy paralysis as growth declined to 5.5% (in April-June quarter) from an average of 8.5 % an annum from 2003 to 2011.

With no electoral capital of his own, Singh merely appears to be filling a prime ministerial berth as Rahul Ghandi, son of the ruling Congress Party President Sonia Ghandi, is groomed for the role.

Though Rahul has never talked openly on the issue, the Congress had historically been unwilling to abandon a socialist and protectionist stance. Congress' declining popularity with the aam-aadmi (common man) is another reason why Singh's liberalization drive may be compromised.

It was Singh who supported the Indo-US nuclear deal, while Sonia was the initiator of pro-poor public spending under "UPA 2", which has been in power for three years.

Coupled with a non-conducive political environment, especially as the Samajwadi Party's chief, Singh Yadav, has promised to support a motion against FDI in retail, the road to reform does not appear smooth.

Singh Yadav's opportunism also underscore the likelihood he could pull the plug on UPA 2, particularly as he mentioned the prospect of an early national election last year and has spoken of the need for a "third front" of regional parties to counter the dominance of Congress and the opposition Bharatiya Janata Party.

His alliance with UPA 2 could well be a check on his staunch rival, Mayawati of the Bahujan Samaj Party (BSP), which the SP trounced in March's Uttar Pradesh assembly elections. SP spokesperson Rajendra Chaudhary said his party had aligned with the UPA to "keep away the communal forces".

For its part, the UPA is not unaware of its dependence on the Uttar Pradesh behemoths, the SP and the BSP, without which it would stand discredited in leading a majority government from New Delhi.

Too many prime ministerial aspirants among those lending support to the UPA could translate into an unwarranted pressure on the center for a rollback of reforms that could well push Congress over the edge.

With the Gujarat and Himachal Pradesh Assembly elections scheduled for November and December the coming winter may turn into a season of re-firming up of political lines as the fairweather friend of the Congress, Singh Yadav, goads regional satraps.

Priyanka Bhardwaj is a New Delhi-based freelance journalist. She can be reached at priyanka2508@yahoo.co.in.

(Copyright 2012 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)





India's politics rule - economy be damned (Sep 20, '12)

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