For over half a century, economic prosperity has been the goal of post-war world. Even by 1939, the United States emerged as an economic giant, and the war only enhanced its economic strength and global power.  Western Europe was devastated by war, but with American support in the form of Marshall plan, there was rapid reconstruction and recovery. Japan too resumed its place among the prosperous nations quickly, thanks to the high levels of human development achieved even by late 19th century.

In our country the more things change, the more they remain the same! We have had interminable debates on the merits and demerits of public sector vs private sector for two decades now. Meanwhile global economy has changed beyond recognition. Most countries, which subscribed to state monopolies and government ownership altered their policies radically. USSR collapsed, and east Europe has been liberated. China is almost entirely market driven, and state is retreating from business functions rapidly. And yet, our Union cabinet dithers on disinvestments! Let us examine a few facts.

All democracies are prone to a healthy dose of skepticism about their politicians. Once the distinguished chaplain of the US Senate Reverend Everett Hale was asked, “Reverend, do you pray for the Senators every morning?”. He replied calmly, “ No; I look at the Senators, and pray for the country”.

For observers of Indian political and public scene, life does seem to imitate art.  Just when you think things will settle down, and the nation will focus on the key goals, there is a new scandal or scam or sensation or drama. Like in a soap opera, week after week we are subjected to titillation, suspense and excitement, sans good sense or clear direction. This week’s theme is oil dealerships, and the nepotism and corruption associated with selections. Once again, legislators are up in arms, parliament is paralysed, grave statements have been issued, and speeches have been made.

The recent political controversy surrounding the bifurcation of Eastern Railway and the creation of East Central Railway with its headquarters at Hajipur once again raises two questions: the role of government in running enterprises, and the plight of infrastructure sector. It is by now well-recognized that public sector is often a euphenism for political patronage and private aggrandizement. Politicians in power or out of it, and career bureaucrats as a rule have no respect for economic logic or wealth creation.

The government and political parties have acted with uncharacteristic speed and dynamism to thwart the disclosure provisions ordered by the Election Commission (EC). The chain of events starting with the Supreme Court judgment on May 2, and culminating with a draft bill circulated by government on July 15 is revealing. Suddenly, the political consensus, which eludes the nation even in testing times, resurfaced! All parties seem to be more or less unanimous that candidates for elective office must not be forced to disclose their criminal record and financial details.

On June 28, the Election Commission gave effect to an earlier judgement of the Supreme Court by making candidates’ disclosure of criminal record, educational qualifications and financial details mandatory. This was based on the Supreme Court’s decision that the electors have a right to know about the candidate whom they choose for public office. As the Court pointed out, the Commission has the authority to act under Article 324 of the Constitution, and wherever there is void in legislation, it ought to step in.

The events of the past one month in Maharashtra hold a mirror to the crisis in our democratic polity.  Once again, the nation witnessed buying and selling of legislators, party hopping, back room deals, political instability, holding MLAs captive in tourist resorts in other states, a vote of confidence, and the usual scramble for loaves of office in the impending cabinet expansion.  This has been seen in several states all over the country over the years.  Now this culture of ayarams and gayarams has inflicted a grievous blow to India’s most prosperous state.

The Gujarat carnage over the past few weeks and the continual Kashmir imbroglio deflected national attention from a momentous event in the evolution of our democracy. On May 12, we have successfully completed 50 years of our parliament. This is a rare achievement among post-war democracies. There is a lot to celebrate. We are a robust and cheerful democracy. Our people treasure the freedoms guaranteed to us under the Constitution. Elections have been held to Lok Sabha under the Constitution of our new republic without break since 1952.

An efficient market economy needs effective and independent regulators, speedy justice and mechanisms to enact laws to protect the investors and citizens. These are the lessons we in India need to learn from the US response to the collapse of Enron. It soon became the world's largest electricity and natural gas trading company.