Semi-finals and the many Confusing Signals! Part – 1

What has been touted as the semi-finals before the Grand finals in May 2019 just got over in India and the results from the 5 state elections are finally out. Though there have been surprises, more than the eventual result, the extent of the win or the loss from whichever side you look at it, has been more surprising. While in 3 states the margin of victory to the victor has been phenomenal, in the other 2 states, it’s been quite small. There has been many analyses and take aways of the verdict from pundits in the last few days but, to me, there is an important one. Which is, never before in recent times you have such confusing signals emanating from the voter from the heartland states. Before I go on to elaborate my hypothesis, honest disclosure. I am not from these states. I had not travelled to theses states in the run up to the elections. I have not had “elections on my plate” to gauge the mood of the voter. So my take aways are nothing more than armchair punditry based on what I gather.  So please keep a container of salt ready by your side as you read this.

This week, let me dwell on Rajasthan which according to me is quite interesting.

  • From BJP’s point of view, though they would like to spin the defeat in Rajasthan as extremely close and well fought out contest, in reality it has been a huge defeat. One cannot and should not gauge the extent of defeat based on opinion poll predictions or exit poll results and conclude that the fight was closer than expected. In reality, there has been a swing of 6.2% away from BJP resulting in a loss of 90 seats in an assembly of 200 compared to the last elections in 2013! This is not a narrow loss.
  • As per most of the commentariat, there have been very few plausible reasons to explain such a big defeat for the BJP.
    • First up, one of the reasons attributed was the outgoing Chief Minister Vasundhara Raje’s arrogance/attitude! Really? Raje is not new to the voters of Rajasthan. Before this term, she served the state as a Chief Minister for 5 years from 2003-08. She has been a MP and MLA from Rajasthan many times. She came to power in 2008 with a massive mandate defeating the Congress! So did people come to realise about her arrogant attitude only now? Or is it that she started behaving arrogantly only in the last few years?
    • The second reason attributed is – Rajasthan voters have the habit of throwing out the incumbent government and opt for a change if one goes by the trend in the last 20 years! Hence it is said that BJP giving way to Congress was on expected lines. Does it mean that people don’t care about governance and just throw out the incumbent government for the heck of it?
    • Coming to governance, Raje in the last 5 years, presided over the most reformist government among most of the states in India. Soon after she took over, Raje did the unthinkable in India of initiating labour reforms – a long-standing request from entrepreneurs and India Inc. What should have helped in attracting investments and aid economic growth, apparently has not worked, it looks like.
    • If I am not mistaken, under the support and supervision of economist Bibek Debroy, Rajasthan Government passed a bill to repeal whole lot of archaic state laws to make governance simpler.
    • In the context of UP, we are often told that people are no longer interested in Mandir politics but in development. But in Rajasthan we are told that people were unhappy with the Raje government when it decided to re-locate a few Hindu temples to give way for Metro in Jaipur!
    • Agrarian Distress – is the other reason attributed for BJP’s loss in Rajasthan. In most of states today including Rajasthan, agrarian crisis is not arising out of shortages (supply side) but due to a problem of plenty. In the sense, farmers do not get the right prices for their produce due to the excess supply. Hence the demand for higher MSPs. I don’t think higher MSPs will solve the problem in the long run, as it will shortly fuel very high food inflation which is again a bigger monster to handle, for the Government. The solution lies in raising farm income without raising MSPs beyond a point. For that, the issue to fix is the demand side bottle necks.  As I understand, some of the reforms undertaken by the Raje Government like creation of one agriculture market,… were supposed to take care of rationalising the licensing of mandis,… Have they not worked??? May be more ground needs to be covered here.
    • As you can see from the above points, Good Economics has not yielded Good political returns.
    • At the same time, it appears that the Raje Government’s waiver of farm loans of up to Rs. 50000 hasn’t worked either! So Good Populism has not yielded results also!

If you are an election strategist for the BJP, you many tend to conclude that these reforms or populism are of no use to win elections may decide to have a strategy to just pander to emotive issues. In Rajasthan have the emotive issues worked?

  • While the Raje Government started off well with the above focussed development agenda, I do believe that it lost its away trying to pander to extreme elements within the BJP. The government was practically silent during the entire Padmaavat episode when lumpen elements were running amuck.
  • In Alwar, there were violence due to cow vigilantism which the government was guilty of promoting. However cow vigilantism failed to come to the rescue of BJP in this region, where the party lost 16 of the 18 assembly seats!
  • So raising the pitch on emotive issues hasn’t worked either.

In the final count, the difference in vote share of just 0.5% may also indicate that while there has been a 6.2% erosion of vote share for the BJP, the anti-incumbency has not been strong enough to significantly dent the voter base of BJP. Hence, one will extrapolate the state election results and predict that BJP will face a rout in 2019 Lok Sabha elections at his own peril.

But in this state elections, what have the voters voted for or against? Was it

A positive vote for the Congress? Or

A Negative vote against the BJP? Or

Negative against the BJP at the Centre or State? Or

Neither a positive vote for the Congress nor a negative vote against the BJP?

Hence, my hypothesis that the voters while booting out BJP have also sent confusing signals as to why they have done so!

Post Script: When you know that he has been a CM twice over before and failed to win a second term in Rajasthan why would you again make Ashok Gehlot the CM for the 3rd time? This was a great opportunity for Rahul Gandhi to put his stamp and I guess, he let it go!

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