The UPA government’s National Common Minimum Programme advocates a national health insurance scheme to help poor tide over the economic crises resulting from costs of illhealth. Is such insurance a viable option? This requires detailed examination, and a serious national debate. Several states are toying with such an idea of health insurance in recent months. Any hasty decisions without careful evaluation of costs and benefits will land the nation in a potentially no-win situation.

In the midst of robust growth indicators, one issue which is causing concern is the black economy and the role of real estate in that. Some estimates put this parallel economy between 25 and 50% of the accounted GDP.

The union government’s announcement of the Rs.17,000 crore rehabilitation package for farmers in the 31 suicide-prone districts of AP, Karnataka, Kerala and Maharashtra focuses attention on the plight of agricultural sector in a fast-growing economy. Emphasis on irrigation, interest waiver, watershed development, seed replacement and dairy industry is welcome.

The impact of economic liberalization on poverty levels in the country has been vigorously debated by economists and politicians over the years. The data seems inconclusive, and scholars often seem to arrive at conclusions suspiciously close to their own ideological proclivities. The broad consensus appears to be that poverty is declining; it is difficult to conclude that all the decline in poverty is attributable to liberalization and rapid growth; and the decline in poverty is less than what the free market enthusiasts hoped.

The spate of brutal killings of Salva Judem members by Maoists in Chattisgarh and encounter deaths of Maoists in Andhra Pradesh expose the fault lines of our society and polity. These are not acts of violence inspired by extra-territorial terrorist agencies to destabilize our nation. These are the products of anguish, despair and bitterness resulting from decades of misgovernance and an economic growth process which relegates millions to the margins.

Once again, cowardly and murderous terrorist groups attacked India’s financial capital.  Once again, the citizens of Mumbai, in the midst of the shock and grief, have exhibited uncommon courage, resilience and tolerance.  As in April 1993, in July 2006, all of India showed how a great nation could transcend prejudice and bigotry, and uphold its liberal, humane traditions.

One of the great challenges in any society is increasing administered prices, or reducing subsidies in a politically palatable manner. All democracies wrestle with the problem of reconciling the clash between the short-term political price a government has to pay for temporarily unpopular decisions, and the long-term social good which results from such decisions. Political parties and governments are always mindful of the fact that unpopular decisions, even if they are in the long-term interest of the people, may cost them their power.

The redoubtable Economist (June 3rd – 9th, 2006), in a special report on Indian business, asks the provocative question: “Can India fly?”.  The answer is that it has taken off; but its people could fly much higher without the fetters imposed by poor policies and incompetent government.  Most objective observers share this cautious optimism.

The policy issues are mired in politics and populism.  But Indian entrepreneurs and workers have a way of boosting production and productivity despite policy errors.  The real problem areas are infrastructure, education and healthcare.

It is said that the way to hell is paved with good intentions. Well- intentioned, but unwise policies can devastate local economics.

The recent CBI raids and allegations of disproportionate assets of a prominent Haryana politician to a tune of Rs. 1500 crore have barely evoked any interest among political pundits and media. There is such cynicism prevailing about politicians, that most people tend to believe the worst about ‘them’.