Prime Minister Manmohan Singh delivers his opening speech at the 11th Asean-India Summit in Bandar Seri Begawan, Brunei, on October 10, 2013. Ahim Rani / Reuters
Prime Minister Manmohan Singh delivers his opening speech at the 11th Asean-India Summit in Bandar Seri Begawan, Brunei, on October 10, 2013. Ahim Rani / Reuters

Manmohan Singh leaves office amid storm of criticism



NEW DELHI // After 10 years as India’s prime minister, Manmohan Singh will leave office in just over a week with the first assessments of his legacy proving critical and dismal.

For a man who once said “history will judge me more kindly than the contemporary media”, a slew of books and media commentary, as well as analyses by experts and voters, have faulted Mr Singh for letting the economy slide, for failing to combat corruption, and for being a weak prime minister.

Perhaps the most severe indictment came from Mr Singh’s friend and fellow economist, the Nobel laureate Amartya Sen.

Mr Singh would be remembered "by those who know him well as a sad figure, in the sense that he wanted to do much more about eliminating corruption. He did not have the political power to achieve this," Dr Sen told the Hindustan Times newspaper.

Mr Singh’s legacy appears particularly tragic given his glittering achievements and his reputation for integrity when he took office in 2004 for the first of the Congress Party’s two terms.

With degrees in economics from Cambridge and Oxford, he occupied a series of prestigious positions in the Indian government in the 1980s. Most notably, as the finance minister in 1991, he jump-started the Indian economy, liberalising import regimes, cutting tariffs and encouraging foreign investment.

When he started his first term as prime minister, the Congress had to form a coalition with the socialist parties of the Left, who oppose further economic reform. For this reason, said John Samuel Raja, a co-founder of How India Lives, a company that analyses government data, “people knew that it would be difficult for Mr Singh’s government to do much by way of reform”.

But at the beginning of Mr Singh’s second term, in 2009, the Congress won enough seats in parliament that it could form the government without the support of leftist parties. This raised hopes that Mr Singh, freed from the constraint of having to appease the left, would be able to undertake more reforms.

However, Mr Singh presided over a government that spent far more money than it earned, even as it failed to boost the economy’s productivity, Mr Raja said.

“They also misread the [global] economic crisis. Trying to keep growth high, they pumped too much money into the economy, which led to high inflation,”he said.

The economy overheated. Growth slowed anyway, to 4.5 per cent in the 2012-13 financial year, the lowest in a decade.

Simultaneously, Mr Singh’s government was rocked by controversy after controversy, as a string of corruption scandals were revealed. Nobody has been tried and sentenced in any of the scams thus far, but India’s auditor general has estimated that corruption has deprived the national treasury of billions of dollars in revenue.

In his new book The Accidental Prime Minister, Sanjaya Baru, Mr Singh’s former media adviser, remarked upon his peculiar stance on corruption.

Mr Singh “was himself incorruptible … but he did not feel answerable for the misdemeanours of his colleagues and subordinates,” Mr Baru wrote. “In practice, this meant that he turned a blind eye to the misdeeds of his ministers.”

In the midst of such a decline, Mr Singh compounded the situation by being uncommunicative with his public, said Navin Rajaram, a Bangalore-based entrepreneur. “As an informed voter, the biggest disappointment for me has been the lack of dialogue with me, the voter,” he said.

Several Indian governments have been plagued by scandals and poor records, but “I have felt let down by the prime minister not talking to the nation about these issues or being transparent about what the government is doing to address these wrongs,” Mr Rajaram said.

Even at the best of times, or when he had news of success to relay, Mr Singh proved to be too silent. “Many welfare schemes actually did penetrate and marginally improve the lives of the underprivileged,” Mr Rajaram said. But here too, Mr Singh refused to “maintain an ongoing conversation” with his country.

Mr Singh’s inability to assert himself or to govern according to his own moral code has been explained in different ways, even as commentators have been prompt to acknowledge the prime minister’s personal integrity and dignity.

In a column in the Business Standard newspaper on Saturday, TN Ninan, the paper's former editor, was warm about Mr Singh as a person, praising his "basic decency" and his commitment "to the old-fashioned notion of public service".

But often, Mr Ninan wrote, Mr Singh made too many expedient decisions that would simply ensure the survival of his government, rather than doing the right thing.

“Singh has said often that politics is the art of the possible,” Mr Ninan wrote. “The criticism would be that he did little to expand the range of possibilities. More often than not, he was willing to play along with whatever idea had political legs.”

In his book, Mr Baru argued that the very nature of Mr Singh’s position was problematic. Although he should have been, in theory, the most powerful man in the country, the real power resided with Sonia Gandhi, the head of the Congress party, who named Mr Singh to his post.

ssubramanian@thenational.ae

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Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press

Red Joan

Director: Trevor Nunn

Starring: Judi Dench, Sophie Cookson, Tereza Srbova

Rating: 3/5 stars

The bio

Who inspires you?

I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist

How do you relax?

Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.

What is favourite book?

The Perks of Being a Wallflower - I think I've read it more than 7 times

What is your favourite Arabic film?

Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki

What is favourite English film?

Mamma Mia

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If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.  

 

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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Mina Cup winners

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”