Why is Chidambaram being accused by the corporate world of bowing down to the pressures of politics in announcing the waiver of loans to farmers? Yes, it is a political move. But how different is it from giving tax holidays to the industry. By not taxing sections of the industry but still investing in infrastructure, does the Government not dole out freebies to the industry also? The industry, which, continously clamours for less taxes or no taxes, now cannot digest a similar gesture being made to the farmers. This reeks of collective selfishness.
The very foundation of democracy lies in the fact the politicians need to worry about winning elections and therefore bring about policies which will benefit a larger mass of people. This somewhat counterbalances the capitalist tilt towards merciless meritocracy. Capitalism is about survival (and prosperity) of the fittest. A capitalist democracy not only ensures survival of the fittest but also facilitates expanding the base of the fitness pyramid.
Loan waiver is indeed a short term measure but is a small step in the right direction towards a more inclusive growth.