There is a subtle debate currently on in the corridors of the Prime Minister's Office (PMO) over who will usher in what the newly-elected NDA terms second-generation reforms. Insiders agree that a rejuvenated prime minister has already defined his course: Atal Behari Vajpayee wants to play a proactive role in charting economic policies which, otherwise, would have been handled by the finance ministry.
"The government's intentions on reforms are clear. The President's address to Parliament was essentially proving the same point, that reforms will get utmost priority," says Sudheendra Kulkarni, a senior aide in the PMO.
Vajpayee's group is aptly called the Cabinet Committee on Economic Reforms (CCER) and is distinct in its approach from the Cabinet Committee on Economic Affairs. Others on this team are finance minister Yashwant Sinha, foreign minister Jaswant Singh, commerce and industry minister Murasoli Maran and Planning Commission deputy chairman K.C. Pant. Besides, in an apparent move to soothe possible frayed tempers among coalition members, the PMO has indicated that it will accommodate other ministers when the CCER discusses issues pertaining to their ministries.
Insiders claim the waiting list includes power minister P.R. Kumaramangalam, petroleum minister Ram Naik, communications minister Ram Vilas Paswan, surface transport minister Nitish Kumar and aviation minister Sharad Yadav. These ministers have already been intimated that they could be called to almost all CCER meetings.
"The prime minister had remained focused on a whole lot of economic issues during the previous 18-month regime," says Kulkarni, adding that the idea behind setting up the CCER was to take quick decisions and ensure a speedy implementation process.
Vajpayee, in fact, had started taking active interest in economic affairs towards the end of Ô98 and made his intentions clear by setting up two advisory councils - one made up of corporate captains and another of senior economists. Besides, the prime minister and his aides had taken significant decisions on matters pertaining to the telecom sector and infrastructure projects, especially those relating to construction of huge expressway networks, airports and seaports.
But then, the tensions between the PMO and ministries are there for all to see. Insiders allege the tensions remained throughout the bjp-led government's previous regime and, in all probability, will continue this time too. After all, it's common knowledge that the finance ministry has not taken lightly to Vajpayee's confidants meddling. It has even refused to hand over the mantle totally to the PMO mandarins. Addressing ficci last week, Sinha talked of the government's intentions to speedily implement the second-generation reforms. But not many were aware that a week before, his ministry had turned down recommendations made in the Nitish Sengupta report on reforms in the oil sector and refused any intervention from the PMO on the issue.
"It seems there's a mad rush in the NDA government to take credit for the reforms process started by the Congress. The bjp's gone haywire in its decisions. It remains to be seen if the nation can withstand such shocks," quips Congress leader and former finance minister Pranab Mukherjee, pointing out as an example the recent tension between a handful of ministers and the prime minister over the way the PMO (apparently at the behest of PMO mandarins Brajesh Mishra and Ashok Saikia) reshuffled secretaries without their consent.
What are the other tensions? Insiders claim the proposal to split the finance ministry is still hanging fire as Vajpayee has sought more time on the issue, ostensibly because Sinha expressed his reservations on the idea to club the departments of budget, revenue and expenditure under Sinha and find a new face for the dual responsibility of handling the Department of Economic Affairs and issues relating to reforms. Furthermore, the CCER is yet to start functioning as a cohesive team because the finance ministry and a section of the PMO feel that the prime minister should not be seen as the main architect of the reforms as projected by some officials of the PMO and that such a move would be detrimental to the efforts made by the finance minister and his team.
"Over the years, the PMO has emerged as a strong power centre. Tensions will remain between it and the ministries. This is because not many allies of the NDA will agree to the bjp's neo-liberal economic policies which do not benefit the vast majority of the toiling people," says cpi national secretary D. Raja.
Observers say that over the decades, different prime ministers have had different styles of functioning. During Indira Gandhi's days, many recall the influence of her two aides - R.K. Dhawan and M.L. Fotedar - and her principal secretary, P.N. Haksar, who wielded tremendous power in the corridors of the PMO. The troika ran the show in a manner never replicated. The three could summon any cabinet minister at any given time and make them wait outside their offices.
In short, the three were seen as having the complete authority of Mrs Gandhi to handle issues of national and international importance on her behalf. A similar role was managed deftly by Narasimha Rao's principal secretary, A.N. Verma. Besides Verma, many also agree that Rao's media advisor, P.V.R.K. Prasad, wielded tremendous power and could pick up the phone and issue orders to almost anyone and everyone. "As many realised during that time, the two acted as representatives of the prime minister and had his total permission in handling almost all issues," says a source.
The scenario changed during the governments led by H.D. Deve Gowda and I.K. Gujral. Observers felt there was a situation of decentralisation in the PMO then because not many were seen calling the shots. "For example, not many were aware of the role Satish Chandra played as the principal secretary during Gowda's time because he kept an extremely low profile. Besides, it was known that officials in the PMO could not get work done just like that. For example, it was not possible for the PMO officials to speak to home minister Indrajit Gupta and get some particular work or favour done," says one observer.
Interestingly, many feel that with the emergence of a more confident Vajpayee, the PMO may run roughshod over everyone. And those interacting with the PMO unanimously agree that after the PM, the most powerful person remains Mishra, the national security advisor, who can talk to any minister to get anything done. Observers felt that Mishra's style in the last regime was considered abrasive and many resented his sharp instructions. "But over the months, he has acquired the art of PR and ministers now speak well of him and his views on a host of issues, ranging from defence, WTO, ctbt and reforms and for the mandarins in the mea, he is the real foreign minister and finance minister," says an observer.
Another extremely powerful person in the PMO is the soft-spoken N.K. Singh, the principal advisor on economic affairs. Many claim that Singh, the former revenue secretary, has over the last one-and-a-half years acquired the implicit trust of the prime minister. Of late, insiders feel that he seems to have called off his war against Sinha and there appears to be a truce between the two, which only augers well for the economy.
Besides Singh, Saikia is also emerging as a key figure for all issues relating to economic affairs. Saikia, whose father was a close friend of Vajpayee, also handles contentious issues other than the economy. "He is instrumental in a lot of decisions pertaining to appointments of bureaucrats at the level of secretaries and joint secretaries," says an insider.
During its previous 18-month reign, the bjp-led government had turned the PMO into an all-powerful institution, with the exception of the home ministry. The two continued to be at loggerheads on several issues throughout the government's term. Under this regime, it's not clear whether the other house (home ministry) will again assert itself when necessary or whether it will take a backseat and allow the PMO to handle things in its own fashion. What is clear, however, is that on many economic matters, the PMO will be the moving force in the months to come.
