Kerala - Thiruvananthapuram   

`UDF has put State on the road to development'

Special Correspondent

State failed to capitalise on reforms:Chidambaram

Thiruvananthapuram: Union Finance Minister P. Chidambaram on Wednesday said that Kerala had rediscovered the rhythm of development under the UDF rule.

Addressing a press conference here, Mr. Chidambaram said Kerala had failed to capitalise on the economic reforms that was introduced in 1991 unlike several other States. It rediscovered the rhythm of development only during the last five years and it required a pro-development Government to help Kerala return to the national mainstream of economic growth. He hoped that the people of Kerala would not disturb this rhythm and break the habit of alternating between two coalitions.

Replying to questions on the CPI (M)-led Left Front and the roadblocks it was putting to some of his administrative measures, Mr. Chidambaram said the Left Front was fully entitled to its opinions. "In a coalition system, all parties have to make adjustments to carry on with the administration." The Congress, he felt, was implementing the Common Minimum Programme in letter and spirit. He was disinclined to make personal attacks against the Left Front leaders and felt that highlighting development issues was the correct approach for an election campaign.

He said the people of Kerala should understand the quality differences between the Congress and other political parties and respond to a mature and rational election campaign. In reply to a question about the stability of the UPA Government, Mr. Chidambaram recalled how the BJP had come to power just because the former Congress president Sitaram Kesri decided to withdraw support to the United Front Government. As a result of this, the secular parties were pushed to the Opposition, giving the BJP a six year-long reign.

Asked about the differences in West Bengal and Kerala's development, Mr. Chidambaram said he was happy that the West Bengal Chief Minister had made a tentative beginning with regard to development and reforms. "I hope he would stick to his policies and continue to be a reformer," he remarked.

In reply to a question, he said that West Bengal and Kerala should follow the economic reforms in Delhi and other parts of the country. "If any political party has fundamental objections to foreign investment, capital markets, more rupee convertibility, free trade, and globalisation, I am afraid that party is not in touch with the world. And such a party, if elected to power, would upset the rhythm of development.

To a question on subsidies, he felt there was nothing wrong in extending subsidies for investors provided the priorities were right. However, announcements of such subsidies such a free power and water should be backed by resources. He said the increase in Kerala's public debt did not matter. As long as there was fiscal deficit, public debt is bound to increase. Besides, the next Government will have to increase public debt. These are attractive slogans, but not sound policies," he said.

Asked about the crisis in Kerala's farm and traditional sectors, Mr. Chidambaram said Kerala should look for new opportunities with competitive advantages.

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