Mumbai: As the State begins to take steps to “unlock” its economy there are several factors that are coming into play which have both national and international implications as well. That is inevitable in these modern times where you integrate your domestic economy with that of the global economy. It is here certain aspects of central and state government’s need to be understood. The framers of our constitution have clearly laid down the framework for the existence of a symbiotic relationship between the Central and the State Government. And the marvelous thing about the framework is that it still holds true in this modern day globalized economy.
In times of the global pandemic like the COVID-19, our constitution although entrusts subjects like – law and order, public health, public distribution of essential supplies and other subjects with the State, it expects the Center as well as the State to do hand-holding in such times and not spar with each other. There are enough of checks and balances in place so as to ensure that neither of the two governments act independently of each other or against each other, but act together in the spirit of federalism and mutual cooperation.
Hence, when the world in now coming down hard on China over its dubious role in the entire spread of the Coronavirus, its implications are bound to be felt domestically as well. As Multi-National Companies (MNCs) begin to pull-out their production facilities out of China, nationally as well as domestically governments are vying with each other to woo them to set up shop in there state. It is here getting control over the pandemic is proving to be as crucial as your loss may become somebody’s gain.
The dangerous and serious fall out of the pandemic is that the global economy in certain aspects it is turning inwards, protectionist when it comes to dealing with an aggressive China. The prime example of ratcheting up of trade barriers and investor scrutiny to stop predatory hostile takeover bids is the government action after China tried to pick up stake in the HDFC Bank.
Another example of protectionism is US President Donald Trump imposing restrictions on admission of Chinese students in some high end academia and research. Not only that he has pulled the US out of the World Health Organisation (WHO) and slapped punitive sanctions against China over its national security law regarding Hong Kong.
It is little wonder then that the Chinese dragon after breathing fire at the Indian army at the borders and instigating neighbors like Nepal against India, is trying to be reconciliatory with India over Hong Kong issue. It is also mindful of the fact that India’s Health Minister Dr Harsh Vardhan has taken over as executive board chairman of WHO. The world health body is under intense scrutiny over its role in alerting the world to the outbreak of the pandemic. Given the piquant situation it finds itself in now, China can ill afford to escalate tensions on the border with India.
Another crucial aspect that both the Center and the state governments as well need to address on an urgent basis is the labour problem, especially the migrant labourers. As the economy unlocks itself and MNCs come calling availability of the labour force is going to become a major issue. Besides the migrant labourers, small business enterprises and the informal street economy need to survive in order to support and sustain the larger economy and revive it.
And hence, it is all the more imperative that both the national and state government instead of quarreling with each other joins hands with each other so that the economy and everybody survives. Many times local issues often have national and international implications as well and we cannot miss out.
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