New Government Must Overhaul Economic Policies, Prioritize Citizens' Welfare

In a hard-hitting analysis, former IAS officer V.S. Pandey has urged the incoming government at the center to undertake a comprehensive overhaul of economic policies that have been "mindlessly followed for decades." According to Pandey, the current state of affairs, where 80 crore (800 million) people require free ration quotas to survive, is a direct outcome of "unprincipled politics" and "neo-liberal economic policies being followed blindly."

Pandey argues that the new government must prioritize tackling the pressing issues of unemployment, inflation, rising consumer prices, and the widening chasm between the rich and poor – issues that were at the forefront of the recent parliamentary elections.

"Democracy is all about people, and their collective voices must be the sole guiding force behind economic policy formulations by democratically elected governments," Pandey states. He emphasizes the need for policies that balance the interests of every section of the populace, without showing bias towards enterprises, corporations, or the wealthy.

Pointing to historical data, Pandey highlights the importance of fully educating and skilling the population, as well as ensuring a robust healthcare system, as critical factors for economic prosperity. He warns that the increasing inequality in the country is a "grave problem," with India rapidly becoming akin to a "feudal society where the uber-rich are ruling the roost with impunity."

"If the incoming government doesn't do something immediately to fix the glaring inequities in our economy, it will be perilous," Pandey cautions, citing the potential for revolutionary consequences when wealth accumulation goes unchecked.

Pandey calls for a time-bound blueprint to address the "appalling" state of the health and education systems, as well as changes to existing economic policies to make them more employment-oriented, self-reliant, and redistributive in character.

Rejecting the "trickle-down economics" worldview, Pandey advocates for economic policies that prioritize job creation, empowering the middle class as "job creators" and the source of the country's prosperity.

"The new government needs to revisit the economic paradigm and reorient it to make it people-friendly," Pandey concludes, emphasizing the urgent need for radical changes to address the growing inequalities and ensure the welfare of all citizens.

(Vijay Shankar Pandey is former Secretary Government of India)