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 | Maya for poor: Quotas may lead to de-industrialisation Our Correspondent The road to hell is paved with good intentions. Uttar Pradesh Chief Minister Mayawati should have remembered this adage. Even if it is assumed that her move to offer incentives and concession to the private sector 30 per cent quota voluntarily is the result of her solicitude for the poor, the move is fraught with dire consequences for the largest state of the country. Industry associations have already expressed their skepticism to the "voluntary" quota, alleging that it is a pretense to strengthen government control over business. They are not widely off the mark, for many politicians excel in finding such pretenses; and Mayawati's past record does not suggest that she is a champion of market economy or human liberty. When she won the state elections a few months ago, it appeared that she was gradually shedding the baggage of casteist politics, that she might be able to adapt herself to the realities of post-liberalisation India. Alas, all hopes have been dashed to the ground! For she seems to resemble the Bourbons of yore: she has learnt nothing, and she has forgotten nothing. She has not learnt that controls are bad for the economy; and she has not forgotten the rotten casteist rhetoric. According to the new policy, the state Government would give sops to the private units that give 10 per cent job reservation to scheduled castes and tribes (SCs and STs), 10 per cent to other backward classes (OBCs) and minorities, and 10 per cent to the poor among upper castes. The Federation of Indian Chambers of Commerce & Industry (Ficci), in a guarded criticism of the Mayawati Government, has pointed out that her state is already a laggard as far as industrial development is concerned. The last available for the period of 2004-2005 with the Annual Survey of Industries data show that UP is ranked 7th among states in net value added. UP has half the number of factories as Maharashtra and even less than half the number of factories in Tamil Nadu. In other industrial indices too the state compares badly with the more developed ones. Ficci "wonders as to how the current initiative of the State Government of 'voluntary' reservation of 30 per cent of jobs in the private sector for fresh investment into the state, would make the state more competitive vis-à-vis its competitor six states which rank higher than UP." Other industry associations have been quoted in the media saying that Mayawati's move may force business units to migrate from the state, as entrepreneurs and industrialists hate quotas. Would she listen to commonsense, or continue with ruinous policies? Posted on : 8/17/2007 Mail this article to your friend |