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UNCLAS SECTION 01 OF 02 NEW DELHI 002069 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM KWMN KDEM IN
SUBJECT: The UPA's Austerity Drive: Cynical or Brilliant? 
 
¶1. (SBU) Summary:  India's Congress Party has committed to an 
"austerity drive" as a gesture of solidarity with India's "aam admi" 
or the common man.  VIPS are traveling in economy class on trains 
and aircraft, foregoing chartered helicopters or private planes. 
Critics attack these gestures as purely symbolic, meant to distract 
the common man ("aam admi"), of which there are hundreds of millions 
living on less than two USD a day, from noticing the skyrocketing 
prices of essential food items, poor infrastructure, and a severe 
drought affecting almost a third of the country.  Congress Party 
strategists, however, appear convinced that the political message 
inherent in the austerity drive -- that the Congress Party is with 
the "aam admi" - will help boost the party's appeal as it gears up 
to fight key state elections in Maharashtra and Haryana on October 
¶13. 
End Summary. 
 
Drive to Nowhere? 
----------------- 
 
¶2. (U) Before his swearing-in in May, Prime Minister Manmohan Singh 
promised a more responsive and efficient government.  As part of 
this commitment the Congress Party launched an "austerity drive" to 
make symbolic gestures of solidarity with India's common man.  On 
August 19, the drive began in earnest when Sonia Gandhi proposed 
that party MPs, legislators, and ministers voluntarily contribute 20 
percent of their salaries towards relief measures undertaken by the 
central and state governments.  Gandhi also suggested that party 
workers adopt "austerity measures" since much of the population has 
been impacted by a severe drought and weak economy.   Current steps 
being taken include a ban on staying in five-star hotels and 
traveling business class and a reduction in the security cover of 
some ministers who, until recently, were protected by armed security 
officials. 
 
But Security Sacrifice? 
----------------------- 
 
¶3. (U) Some local security specialists are concerned that the 
austerity drive may undermine the protection for India's lawmakers. 
As part of the drive, Rahul Gandhi, heir to the Nehru-Gandhi 
dynasty, opted to take a scheduled train for a round trip journey 
between New Delhi and Ludhiana in Punjab.  The train was stoned near 
Panipat, 100 km from New Delhi.  Three train compartments were hit 
and several windows were damaged.  Haryana police arrested two 
teenage boys, who admitted to stoning the train for fun, without any 
criminal intent. 
 
¶4. (U) Some security concerns may be unfounded, as air travelers in 
economy undergo the same security checks as travelers in business 
class.  However, there are inherent security risks when traveling by 
train.  Luggage is often shared in the same compartment, and 
passengers at rail stations do not undergo the same strict security 
checks as air travelers.  Investigations into the stone-throwing 
incident revealed that the perpetrators were not aware that a VIP 
was on the train they targeted.  Still, many touted austerity 
measures are strictly symbolic - the Shatabdi Express that Rahul 
took to Ludhiana is an air-conditioned, high speed train used by 
India's wealthy upper-middle class travelers. 
 
¶5. (U) The Congress Party hopes that its austerity drive will help 
mobilize support among the rural population ahead of elections in 
the key states of Maharashtra and Haryana.  Elections are also up 
coming in the northeastern state of Arunachal Pradesh.  Critics of 
the Congress initiative counter that the benefits of the austerity 
drive are only incidental and the real motivation is to divert focus 
from the rising prices of essential foods such as lentils and sugar. 
  These price rises have been evident for over a year, long before 
the effects of the drought on the coming crop. The drive has managed 
to refocus the public's attention to discussions about austerity 
rather than substantive issues.  Minister of State in the External 
Affairs Ministry Shashi Tharoor stirred up more controversy after a 
"tweet" that he would travel in "cattle class out of solidarity with 
the holy cows."  While cattle class is a well-recognized idiom for 
economy class, Tharoor was reprimanded by the Congress Party, which 
labeled his comment, "absolutely insensitive."  Congress Party Chief 
Minister of Rajasthan Ashok Gehlot called for Tharoor's resignation. 
 
NEW DELHI 00002069  002 OF 002 
 
 
While the Prime Minister downplayed the incident, recriminations 
within the party were strong enough that Tharoor was hauled up 
before Sonia Gandhi, who reportedly told him to watch his ways. 
Lawmakers may save a few thousand rupees traveling in economy class, 
but they are still wasting millions more due to corruption, 
bureaucratic lethargy, and poor governance. 
 
Five Star Hotels Need Not Apply 
------------------------------- 
 
¶6. (U) On September 9, Finance Minister Pranab Mukherjee publicly 
rebuked External Affairs Minister S.M. Krishna and Minister of State 
in the External Affairs Ministry Shashi Tharoor for staying in 
five-star hotels for months pending renovations of their official 
accommodation.  Mukherjee chastised both ministers for their 
ostentation when the government was advocating frugality, and asked 
them to return to their respective official residences. The irony is 
that in being forced to move, both Ministers, who were earlier 
paying for their own room and board at the hotels, will now use 
taxpayer money.  Since the official residences are not yet to their 
satisfaction, Mr. Krishna will be residing at the Foreign Service 
Institute campus guest house, and Mr. Tharoor will reside at the 
Naval Officers Mess.  Both establishments are funded by taxpayers. 
The austerity drive apparently does not factor in to wasteful 
spending outside of the public eye.  The Central Public Works 
Department leaked that it has received a flood of expensive 
renovation requests from Cabinet ministers - including requests for 
Spanish tiles, Italian porcelain, American walnut flooring, and in 
one case, a private architect.  Moreover, no one seriously questions 
the reason why the heart of downtown New Delhi is occupied by single 
family residences surrounded by acres of lawns that are assigned to 
government officials and members of Parliament at nominal rents. 
 
Comment:  Image Is Everything 
-------------------------------- 
 
¶7. (SBU) In many parts of India today, cash drives politics and 
elections to an unprecedented extent, with politicians doling out 
substantial amounts of money indiscriminately to buy votes.  Most 
successful state and national level politicians have access to large 
amounts of cash, travel ostentatiously with large entourages in 
expensive cars, and distribute money and largesse freely.  As a 
result politicians are closely linked to wealth and money in the 
eyes of their constituents, millions of whom still live in poverty. 
It's hard to imagine, therefore, that Indian voters do not see the 
austerity drive as cynical and superficial.  However, as we have 
learned time and again, it is almost impossible to predict or 
explain the motivations of Indian voters.  Perhaps the strategists 
who were responsible for the Congress Party's runaway success in the 
April-May parliamentary elections are onto another brilliant idea 
that will help them mobilize support for the party in the coming 
state assembly elections. 
 
ROEMER