BJP retreats, backs Vajpayee on reforms

Calling Vajpayee the seniormost leader in the party, Thakre said: “It’s not the party but those in the Government who are answerable to Parliament and to Opposition leaders…. When we talk of prior consultations with theparty, that does not mean we are backseat drivers.”

He claimed there were no differences among party leaders or between the party and the Government although there were several instances of such differences cropping up at the national executive. “Of course, there are some misgivings sometimes,” he said. “It is always better to consult the party. Otherwise, it causes embarrassment.”

To ensure this, he said, the party had decided to form a committee comprising the Prime Minister, other Union ministers, party president and general secretaries, for regular consultations, as per the Jana Krishnamoorti committee report. “The committee co-ordinated by Venkaiah Naidu will meet regularly for better co-ordination,” said Thakre.Meanwhile, the economic resolution adopted at the national executive okays the 26 per cent foreign equity participation in the insurance sector while remaining silent over the provision allowing 14 per cent equity to NRIs and foreign institutions, an issue strongly opposed by theswadeshi lobby within the party.

The executive dealt another blow to the swadeshi lobby by recommending that disinvestment of Pubic Sector Undertakings(PSUs) be hastened so as to generate funds for social and infrastructure areas. “The Government must accord the highest priority to turning these huge industrial assets into productive units that will spur industrial growth to a new level,” the resolution said.

Except for some minor issues such as rural development, small-scale and cottage industries, pro-poor employment generation scheme included in the three-page resolution apparently to keep the Sangh Parivar in good humour, the national executive has virtually given its consent to economic reforms.According to the resolution, the executive agrees to amendments to the Patents Bill as per World Trade Organisation (WTO) specifications. It has virtually ratified the Insurance Bill introduced by Finance Minister Yashwant Sinha last session. The suggestions made by the BJP on the IRA Bill are understood tobe of not much significance. Though it expresses concern that foreign participation in the insurance sector should not result in foreign monopoly and control over companies, it remains silent over the 14 per cent participation by NRIs and foreign institutions. The dominant control on insurance sector must be of Indian companies. Foreign Direct Investment should not exceed 26 per cent of equity and a foreign investor should not be the single largest shareholder in such an insurance company, the resolution says. The executive also recommended that insurance companies with foreign equity must comply with all the guidelines issued to LIC and GIC from time to time and the premia funds should not be allowed tom go out of country under any circumstances.

The resolution congratulates the Union Finance Ministers for various steps initiated by him to boost the sagging economy like $4 billion plus funds generated through Resurgent India Bonds. It also congratulates the Government on standing up to the sanctionsapplied against India in wake of nuclear tests in May last year which is why the sanctions were being lifted now.

“The need to amend the Patents Act arises out of India’s obligations under the WTO treaty. In consonance with the thinking in the party, the Government has adopted the necessary safeguards to ensure that the changes do not affect the areas of agriculture, drugs, chemicals, medicines and bio-diversity,” the resolution said.

While admitting that the results could not match the efforts being made by the Government to boost the economy due to subdued market sentiments, the executive tried to lay the entire blame for poor economic situation of the country on previous Governments.

The resolution expressed concern over non-participation of small investors in the market due to its exploitation by “unscrupulous elements” and urged the Government to take urgent steps to restore confidence of people in markets and punish the guilty.

It has suggested the Government to short-list its economicpolicies to manageable areas within available resources, give priority to resource mobilisation and give urgency to Prime Minister’s scheme of a 7,000 Kms expressway as this will generate employment.

The resolution also suggested that importers of consumer goods and luxury items be made to earn the foreign exchange through appropriate exports in order to maintain import-export balance.

Ironically, the resolution concludes by saying, “Let the interests of the common man be the centre-piece of our economic policy, in true spirit of Swadeshi.”