Posted by: John Elliott | January 4, 2011

Jairam Ramesh wins in 2010 for tackling India’s corrupted environment

“Truth”, a top opposition politician said yesterday, “is very inconvenient – the more you suppress it, at some stage it comes out”. Arun Jaitley, one of India’s top lawyers and a former Bharatiya Janata Party (BJP) minister, was referring to a verdict from India’s appellate tax tribunal that bribes were paid 25 years ago to an Italian businessman on a Bofors gun deal. That businessman was (and may still be) close to the Gandhi family that ran the Congress government in the 1980s and still does so today.

Mr Jaitley’s remark has a wider resonance for the Congress Party and government, which was hit in 2010 by a series of corruption scandals that dwarf the $50m bribes believed to have been paid in the 1980s on India’s Bofors gun deal when Rajiv Gandhi was the prime minister.

Jairam Ramesh

It neatly provides me with a new intro to a blog post that I had started writing about who made the most difference in India in 2010.

Certainly, I was suggesting, not prime minister Manmohan Singh nor his lady boss, Sonia Gandhi (Rajiv’s widow) and her heir-apparent son Rahul.

They have stood aside allowing messes like the Commonwealth Games preparations and a host of corruption scams to go ahead. They have won international applause for hosting the leaders of the US, China, Russia, France and the UK in Delhi during the past few months, but banquets, trade deals and investment memoranda do not run countries.

Now, sensing the political price they might have to pay later this year in five state assembly elections for allowing such rampant sleaze, they are proposing new regulations and procedures that look good but are likely to have little effect in the current state of Indian society and politics.

Pranab Mukherjee, the veteran finance minister, does not qualify either. Aside from the finance job, his political skills have kept Mrs Gandhi’s undisciplined and often corrupt coalition government in business, thus allowing offending politicians and officials to get richer and remain free.

In a negative sense, the biggest achiever could be Niira Radia, a lobbyist and public relations consultant, whose wheeler-dealing has flooded across media headlines in a “truth comes out” torrent of leaked audio tapes. This has exposed a massive telecoms-based scandal and revealed networks of politicians, officials, fixers – and a few journalists. It has personally embarrassed Ratan Tata, India’s top businessman and one of Ms Radia‘s main employers, as well as various contacts and associates such as N.K.Singh, a rich and controversial former top Finance Ministry and Prime Minister’s Office bureaucrat, Tarun Das, creator and former head of the Confederation of Indian Industry, and Pradip Baijal, a proud former senior telecoms bureaucrat.

Some observers suggest that Nitish Kumar, recently returned after state elections for a second term as chief minister of Bihar, made the most difference by turning round that beleaguered state. Or maybe it should be Kapil Sibal, the human resources minister who is tackling the country’s grossly inadequate education system and is now also cleaning up the telecoms administration. But these are still works in progress – Mr Kumar has to embed change in Bihar, and Mr Sibal has to implement good intentions and plans.

Jairam Ramesh – economic reformer

My choice is Jairam Ramesh, minister for the environment, who has used more than two decades of personal experience as an economic reforms adviser to bring some order and ethics to a previously policy-starved and corrupt area of government.

He has, to return to Mr Jaitley’s words, showed that “truth comes out”, not by directly accusing those involved of evading and bending environmental laws and administration, but simply by rigorously implementing those laws and personally reforming the administration.

Consequently, the truth has come out about how Vedanta, a London-based mining and metals group headed by India-born Anil Agarwal, has breached environmental regulations with bauxite mining and other projects, and a proposed university in Orissa. A long-delayed $12bn iron and steelworks project planned by Posco of Korea has come unstuck, also in Orissa, because of possibly faulty environmental and land-use approvals. A politically influential branch of the Jindal business family has been told it has ignored requirements on another Orissa steelworks. A partially built “hill station” (a romantic euphemism for lucrative urbanisation of rolling hills) called Lavasa in Maharashtra, which is promoted by powerful political and business interests, is also (as the Indian media terms it) “under the scanner”.

Mr Ramesh’s approach has also helped the truth to come out about massive illegal mining in other states such as Karnataka and Jharkhand, tied in most cases to corrupt politicians.

His success can be measured by looking at who he has upset – Sharad Pawar and Praful Patel, both powerful politicians and fixers from Maharashtra and currently ministers (respectively) for agriculture and aviation, Kamal Nath, minister for highways, the coal and steel ministries, chief ministers of various states, and the companies named above plus dozens of smaller mining operators.

Montek Singh Ahluwalia (right) and Jairam Ramesh – PTI photo

He also has more respectable critics, notably Montek Singh Ahluwalia, who runs the Planning Commission, works closely with the prime minister, and has been a government economic adviser since the 1980s. Mr Ahluwalia objects to Mr Ramesh’s plans for “no go” coal mining areas, suggesting this would hit economic growth.

The two men have been rubbing shoulders professionally for over 20 years (seen together, left, this week laughing at their first public meeting since Mr Ahluwalia’s remarks). They know that neither is anti-growth and that both are committed economic reformers. “We cannot deforest our way to prosperity and we cannot pollute our way to prosperity,” says Mr Ramesh.

Mr Ahluwalia’s remarks do however reflect the opposition that Mr Ramesh has stirred up. There are rumours that this has triggered a campaign to have him removed from the environment ministry in a cabinet reshuffle that might happen in the next few weeks, but that seems unlikely to be successful, given his high-level backing. “I am not doing something that is alien to what the prime minister and the Congress president [Mrs Gandhi] want me to do,” he said recently.

In the first year as minister, Mr Ramesh (below) seemed to be blocking every dubious project, courting controversy, secure in the support of Mrs Gandhi and, usually, the prime minister. I assumed then that, once he had established his new approach, he would start to be more accommodating and that now appears to be happening, forced maybe partly by the force of opposition.

 

.

He did for example compromise last month with Mr Patel about a new airport for Mumbai, achieving he says 80% of what he wanted. He might also let at least part of the Posco’s plans go ahead later this month. He has approved an environmentally controversial Indo-French nuclear power project in Maharashtra, and is reviewing coastal development zoning to allow some development while protecting vulnerable coastlines.

Overall he says, projects are divided into “yes”, “yes but” and “no” categories, with 95% being approved, which is “down from 99.99% earlier”. Only 5% receive a “no”. In addition to less controversial work he has done on wildlife conservation, he is planning two new environmental assessment authorities and tribunals. He also plans to amend forest laws to benefit tribal communities that have been driven by bullying officialdom into the hands of Naxalite rebels.

’Ultimate strategic maverick’

So I have no doubt that he is the public figure who has made the most difference in the past year. Perhaps the best tribute came last week from Lumumba Di-Aping, Sudan’s United Nations representative and a leading climate change negotiator. Having clashed with Mr Ramesh, who has also been courting controversy over climate change, he said he is “the ultimate strategic maverick”.

“He is a leftie on the right, he is a global nationalist and at the same time, he is unaccountable to anyone but to the pursuit of the national economic interests of India. That is the only thing that shapes his ultimate strategy”.

Mr Ramesh doesn’t like being called a maverick because, he says, all he is doing is implementing the laws. Nevertheless, it is a good tribute and surely puts his powerful political and business opponents in their place, which can only be for the country’s good.

About these ads

Responses

  1. Great write up. I agree, wholeheartedly! Mr. Jairam Ramesh has brought ‘environment’ to the front burner of many people’s consciousness….which has got to be a first. While I feel disappointed at his giving in on some of the more major projects such as Posco, Navi Mumbai, Jaitapur, he has steered/is steering the environment ministry in the right direction.

  2. [...] no-one in the government dares speak up for Ramesh because he has trodden on so many powerful toes, as I wrote in an earlier article when I voted him India’s most significant ministerial achiever in [...]

  3. I do not think Jairam Ramesh is making arbitrary decisions. He has the entire team of his Env Ministry, hopefully a good bunch of the IAS folks. It is after sufficient deliberation, this Ministry has issued an order on Lavasa, after inspecting the Lavasa. I agree that development of a country should also be addressed with foreign investment, but finally one should look at what we finally depend on…the mother earth for food, water and sunlight. Excessive sunglight, less food, less water.

  4. Got to hand it Mr. Ramesh John, just demolish Adarsh he says. On the one hand that seems at the very least a tad excessive on the part of his ministry and an over reach, whilst my other hand is being used to applaud the decision. He really is one of the few people I have ever come across over whom I really cannot make up my mind.

  5. Great piece again John, and whilst I am in favour of a strong environmental policy and minister, I have serious reservations about how Mr. Ramesh is doling out his approvals and patronage, they seem arbitrary, noting approval for an airport, a nuclear power plant, that Posco in all likelihood will receive approval at the end of this month for its mega project in the same region as Vedanta has been blocked.

    I am puzzled by his decision making.

    Perhaps it is my ignorance, and I am simply unaware of how Mr. Ramesh runs a cost benefit analysis, hence the reason I see policy being set arbitrarily because I do not understand his reasoning. I do not doubt his integrity, but from my limited understanding the Environmental Ministry has not done a very good job of communicating it’s process to the general public through the media, and this has resulted in my perception that it lacks transparency and its behaviour arbitrary.

    In the end, my feeling is that Mr. Ramesh is clearly principled, and for that I can only applaud, but if a man in this country can single handedly decide for himself the fate of as much a $50 billion in foreign direct investment, the kind of investment that is most critical to a countries development, and cannot be moved out of the country once sunk, then that man needs a set of checks and balances, which I see distinctly lacking, lest he become a law unto himself, and establish the license raj 2.0, and encourages yet more rent seeking behaviour in a country that has been devastated by it.

  6. Good choice. It is difficult not to be impressed by a Congressman who is willing to put his head so far above the parapet. It is equally easy to be cynical about his long term impact, but it is certainly good to have a benchmark against whom the “seniors” look positively apathetic.

  7. Well Done Jairam Ramesh.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

Follow

Get every new post delivered to your Inbox.

Join 251 other followers

%d bloggers like this: