The decision of the PHD Chamber of Commerce and Industry (PHDCCI) to hold a meeting of the Chief Ministers of northern states in August is sensible. However, the fact that a similar meeting organised by CII some time back came a cropper will not enthuse many. With all the political parties spending most of their time and energy to cope with the unprecedented political crisis, PHDCCI must have needed a lot of courage to go for a summit to evolve a long-term strategy to bring about uniformity in industrial and trade policies in the northern region. The idea is to create a common market by reducing unhealthy competition. It is not, however, for the first time that efforts are being made for economic unification with political support. Way back In 1834, the Zollverein, or Customs Union, including most of the States of the German Confederation, came into being.

It not only laid the economic foundation for unification of Germany in 1871, thus facilitating the task of Bismarck, but also set the country on the path of industrialisation which was to make it a major power within a span of half a century. More recently, prospective economic gains have brought the sovereign nations of Europe together. The European community of today moving fast towards the goal of a single Europe underscores how with political will it is possible to achieve economic integration cutting across national barriers.

CII and PHDCCI, no doubt, have been influenced by unification of Europe. Yet, the role of politics can hardly be over-emphasised. Even if the initiative has not come from politicians, their meaningful involvement is a must to galvanise economic activity in the northern region. Otherwise, the whole exercise will degenerate into an orgy of platitudes and inanities. This can only be averted if it is realised at the highest levels that in the present context administrative reforms are imperative. For, even today, after six years of economic reforms, there are a plethora of rules and regulations which benefit only the corrupt official and the lawyer. The need of the hour is to identify whatever that is obsolete in the economic regime and to do away with it.

The involvement of politicians is also unavoidable because only a government responsive to the requirements and problems of citizens can provide conditions conducive to growth of industry, commerce, and trade. If a state government is able to maintain law and order and provide the basic facilities like water, electricity, and roads, industrialists make a beeline to invest in that state; but if ``anarchy, chaos, and destruction'' prevail, and trains are robbed with an alarming frequency, not even divine intervention can get rid of stagnation and frustration.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.