Animating the economy

A nation's economy is driven by entrepreneurship of two kinds ; business and political.The  90's saw the beginning of their convergence under extreme economic stress. From an inward looking nation we decided to take a global view.After just two decades of lift off from a ' Hindu rate '  to enviable  growth levels,the  view now appears to be  misting  .Political economy undoubtedly remains important. Without a clear understanding of who gains and who loses from the nation's collective economic endeavours,it is difficult to analyse our existing policies.  One thing can be said,that today we have managed to suppress business spirits even as the political class is getting less imaginative and dependent on rhetoric. Political systems transform to bazaars when votes and political influence are traded for economic benefits. Minister Jairam Ramesh observed recently that efforts to revive "animal spirits" in industry should be done with caution,while bringing back  enthusiasm in the economy.He is right only in parts.Undue focus on vested interests and their attendant ' animal spirits ',can divert us from the critical contribution that policy analysis and political entrepreneurship can make. The possibilities of economic change , then tend to get limited  by the poverty of our ideas. True economic change will come not when  vested interests are  hounded and spurned , but when our political acumen designs and facilitates  newer  strategies  to gainfully channelise those interests.The famed private entrepreneurship of this nation  awaits rediscovery of this  political genius.    ( published Fin Chronicle Mar 14 )