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Saturday, March 16, 2019

Maharashtra (Part 1)

Reforms are dismantling the four pillars of entrenched, self-serving, corrupt nexus between politicians & middlemen. Author does not delve into reform benefits, though these are accepted by all. What is portrayed is the shock- horror, feeling of being out-smarted and resentments. One co-op functionary wants govt help to cover his losses!

Nexus consists of: NCP & Congress politicians, middlemen (APMC), rich farmers (sugarcane), contractors (irrigation, PWD) and well-connected businessmen (co-op banks with crooked directors, mill owners).

Reform benefits:
1. Removal of APMC control allows higher prices for farmers AND lower price for consumers.
2. Removal of sugar lobby reduces manipulation of govt sugar policy to benefit crony capitalists; and, allows policies such as mandatory drip-irrigation for sugarcane and water transfer projects.
3. Removal of corrupt co-op bank directors and contractors increases bank credit to deserving borrowers, reduces outright theft and helps to improve quality, cost and fairness in Govt procurement.


BJP game plan in Maharashtra: Squeeze out NCP from its stronghold

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