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May 24, 2000

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Congress in a dilemma over shift in its economic policy

Tara Shankar Sahay in New Delhi

Email this report to a friend The tug-of-war between the protagonists and the antagonists of the Congress's economic review policy has forced party president Sonia Gandhi to indefinitely defer the setting up of its panel.

"I don't know about any economic policy review panel of our party. However, it is a fact that our partymen are divided into those who endorse Dr Manmohan Singh's economic polices and those who want these policies to have a pro-poor image," said a party general secretary, wishing to remain anonymous.

Predictably, however, party spokesman Ajit Jogi denied that there was any move to set up such a panel.

"I don't have any knowledge of an economic policy review panel in our party," Jogi said, in spite of media reports that the prevalent situation between the pro- and anti-panel lobbies had forced the party high command to defer a decision on it.

It was at the behest of senior party leader Arjun Singh that the Congress chief sought to give a pro-poor tinge to the party's economic policies at the expense of former Finance Minister Manmohan Singh's economic liberalisation approach, party sources informed rediff.com.

The sources underlined that it was Arjun Singh who convinced Sonia that in order to embarrass the Vajpayee government over the hike in prices of essential commodities and subsidy-cuts, Dr Singh's liberal outlook on the economic policies should be dropped in favour of a pro-poor outlook.

However, Singh recently sought to underline his belief in his economic policies, which he had set in motion under the prime ministership of P V Narasimha Rao, by calling for the review of what he termed as 'non-merit' subsidies.

The Bharatiya Janata Party, or BJP, spokesman Venkaiah Naidu was quick to latch on to Dr Singh's assertion questioning non-merit subsidies leaving Congress members red-faced.

Remarkably, the Congress top guns supporting Dr Singh's economic policies have stopped short of coming out in the open lest they be branded as dissidents by the leadership, which continues to take the pro-poor line.

Sonia Gandhi, along with party leaders and workers, recently marched to Prime Minister Atal Bihari Vajpayee's residence to present a memorandum protesting against the hike in prices of essential commodities. Vajpayee, however, rejected the Congress demand for a rollback in the price-hike and subsidy-cuts.

Even during the recent Budget session of Parliament, the Congress and the other opposition parties staged walkouts over the price-hike, subsidy-cut issue.

According to sources, Congress members have seen Arjun Singh's aggressive posture ever since he became a Rajya Sabha (upper house of Parliament) member. It is as if Arjun Singh does not want any other party member to be close to Sonia, barring himself. Thus, important decisions -- like the Congress becoming the Rashtriya Janata Dal's, or RJD, partner in the Bihar government -- have fructified following Sonia's consultations with Arjun Singh, the sources contended.

Dr Singh's assertion pertaining to the non-merit subsidies immediately elicited a strong reaction from the Congress leadership with the party spokesman emphasising that it was his " personal opinion." It was apparent that the party members were divided over but the party spokesman behaved as if everything was hunky-dory.

Despite the tug-of-war between the Congress members on the party's economic policies, the high command is aware that a financial 'wizard' like Dr Singh cannot be treated shabbily. This is why most party big guns prefer to remain tight-lipped on the issue of an economic policy review panel.

Congressmen have denied outright that there was any move to set up the panel, dismissing media reports to this effect as figment of imagination.

The party leadership is aware that Congress members like Jairam Ramesh, V N Gadgil, Vasant Sathe and Rajesh Pilot have been criticising the party's economic policies. That is why party leaders like Buta Singh, Digvijay Singh and Ram Niwas reaffirmed their faith in Sonia's leadership, asserting that nobody could replace her.

Be that as it may, the Congress chief and her supporters continue to remain in a dilemma over what is to be done with Manmohan Singh despite the party's avowed objective of having a pro-poor image.

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