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 devastation caused by Hurricane Katrina has once again brought into sharp focus the world’s energy vulnerability. Global over dependence on oil is now possibly the single biggest risk to economies everywhere.

The recent oil price hike and India’s frenetic efforts to leverage its diplomatic strength for oil security raise important questions about our future energy needs. Do we have a viable and coherent energy strategy, or are we merely responding in a knee-jerk manner disregarding our long-term interests? A serious debate is necessary on these vital issues.