Impact of Coalition Governments on Governance

Source: The post impact of coalition governments on governance has been created, based on the article “Coalition governments serve the economy well” published in “Live mints” on 6th June 2024.

UPSC Syllabus Topic: GS Paper2- Polity

Context: The article discusses how coalition governments in India, despite their complexity, have effectively governed and advanced significant economic reforms. It contrasts this with the recent single-party rule, which avoided difficult decisions and suggests that political skill, not just majority, is key to effective governance.

What is the impact of coalition governments on governance?

1. Coalition governments have managed to effectively govern India and push forward major economic reforms.
2. Despite concerns about their potential for conflict and compromise, these governments have often been more productive than single-party rule.
3. For instance, significant reforms in trade, taxation, and digital infrastructure were all initiated or advanced under coalition governments

How have different governments contributed to economic reforms?

1. Narasimha Rao Government (1991): Initiated economic liberalization, including industrial deregulation, opening of trade, and overhauling the securities market.
2. United Front Government (1996-1998): Introduced policies like dematerialization of shares and reduced income tax rates.
3. Atal Bihari Vajpayee’s NDA: Continued economic reforms, developed national highways, and reformed telecommunications.
4. United Progressive Alliance (UPA): Further liberalized telecom, initiated digital infrastructure projects like Aadhaar and UPI, and implemented inclusive policies like the Right to Information.

What are the achievements of the recent single-party rule?

1. The single-party rule of the last decade focused less on major reforms and more on incremental changes like bankruptcy easing and inflation targeting.
2. The significant reform under this regime was the implementation of the Goods and Services Tax (GST), which required a coalition-style consensus to be enacted.

Conclusion

Coalition governments, despite their perceived fractiousness, excel in negotiating and incorporating diverse perspectives, resulting in effective governance and substantial economic reforms. This underscores the importance of political acumen over a simple majority in achieving successful governance outcomes.

Question for practice:

Discuss how coalition governments in India have been able to effectively govern and advance significant economic reforms, contrasting with the approach of recent single-party rule.