Hindustan Times ST (Mumbai)

To restart, revise national strategy

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

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.

 ?? MOHD ZAKIR/HTPHOTO ?? 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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