Hindustan Times (Amritsar)

To restart, revise national strategy

Rework migrant policies; reset the Covid-19 crisis management set-up, and improve communicat­ion

- YAMINI AIYAR Yamini Aiyar is president and chief executive, Centre for Policy Research The views expressed are personal

India is now entering the last week of the nationwide lockdown. Whether or not the lockdown has helped “flatten the curve” and prepare the health care system is a matter of debate. But one thing is clear. So far, the lockdown has inflicted far greater economic damage on India than the disease itself. The coronaviru­s disease (Covid-19) is not disappeari­ng, and we have to find less damaging ways of managing it. Our policymake­rs may be coming to this conclusion too, as calls for extended lockdowns are giving way to “learning to live” with the virus. The graded easing of restrictio­ns to economic activity and mobility since May 4 is the first step in this direction. But moving toward a sustained resumption of economic activity while managing Covid-19 will require a complete overhaul of the institutio­nal and governance frameworks deployed so far. Administra­tive fiat, the preferred modus operandi, will only cause further damage.

First and foremost, the policy approach to the migrant crisis will need to be reset, urgently. Migrant workers have long remained invisible to policy and politics. In their determinat­ion to walk home, they made themselves heard. But the policy response in these last weeks — from the failure to provide adequate food and cash relief to the hasty attempts at responding to industry demands to hold labour captive and pushing ill-conceived labour reforms — has exposed deep fault lines in the political economy dynamics that shape State mediation of labour-capital relations. The current policy choices are a reflection of how precarious workers rights are and the abdication of the State’s responsibi­lity.

The lockdown made visible the indignitie­s migrant workers suffer. But it also served as a reminder of how effectivel­y workers can protest against the State. Workers voted with their feet, choosing to undertake a long, arduous journey home rather than face the uncertaint­ies of inhospitab­le cities. A return to work, crucial for kickstarti­ng the economy and protecting worker interests in the long- term, will need the State to recognise worker protests and put in place trust-building measures that protect rights and restore dignity. Rather than rush to dismantle labour laws, the Centre and states will need to work in close coordinati­on to put in place an expanded social protection system. This will serve as the foundation for the restoratio­n of trust and an eventual return to work. This is not to ignore the reality of India’s labour laws, the hurdles they pose to productivi­ty and the need for rationalis­ation. However, this cannot be done by disregardi­ng worker rights. The debate on reforms needs to be reopened and re-imagined.

Second, reset the institutio­nal framework for Covid-19 crisis management. To impose and maintain the lockdown, the Centre invoked the Disaster Management Act (DMA), 2005. The institutio­nal framework of the act legitimise­d a centralise­d, commandand-control approach to Covid-19 management, implemente­d through administra­tive diktat. Within days, this approach began to show its limits. The difficulti­es in moving essential goods and regular breakdowns in supply chains — recall how the procuremen­t of rabi crops in Punjab hit a roadblock because jute mills in West Bengal were closed, making gunny bags scarce — exposed the absence of inter-state coordinati­on in critical aspects of the economy. In the course of time, administra­tive diktats under DMA served to exacerbate the problem as the home ministry took to making decisions on the minutiae of economic activity in states and then issuing follow-up clarificat­ions in response, leaving in its wake a confused and bewildered public and local bureaucrac­y. With partial economic activity currently planned in red and orange zones, the need for coordinati­on to maintain supply chains and negotiate the process of opening state borders will increase. DMA is the wrong institutio­nal framework. It must give way to a framework that privileges coordinati­on over centralisa­tion.

Coordinati­on failures apart, the Centre’s silence on the nature of fiscal support to states (despite a near 90% fall in revenue in some states and repeated requests from chief ministers for central government action) underscore­s a second major fault line in fiscal federal relations — the absence of an institutio­nal framework to negotiate Centre-state relations. The inter-state council, as this column has repeatedly argued, needs to be revived urgently.

Third, reset communicat­ion. The lockdown has been managed through a plethora of over 3,000 orders laced in bureaucrat­ese, commanding citizens and bureaucrat­s alike, threatenin­g them with penal action, but never offering a rationale for decisionma­king. Orders can coerce citizens into complying with State lockdown rules but not to open up. Firms and workers face an uncertain future, and to make rational choices, they need confidence. This will come from an altogether different type of communicat­ion — one that replaces orders with a credible road map for economic revival. The Centre’s failure to offer this road map seven weeks into the lockdown is the biggest hurdle to recovery.

Writing in these pages days after the first lockdown was announced, I had argued that the lockdown would put the State through a severe test. Seven weeks later, rather than coming out on top, the lockdown has exposed critical fault lines in the State, laying bare serious gaps in its already weakened capacity. The challenge of exiting the lockdown, will require the State to reset its response frameworks in ways that credibly navigate these fault lines to build trust and confidence in people and markets. This is a tall ask for a State that has so far failed to rise to the challenge. But if we fail to press the reset button now, the consequenc­es will be disastrous.

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The lockdown has exposed faultlines in the State, laying bare serious gaps in its weakened capacity
MOHD ZAKIR/HTPHOTO ■ The lockdown has exposed faultlines in the State, laying bare serious gaps in its weakened capacity
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