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Tuesday, July 26, 2011

Indira Gandhi

Indira Priyadarshini Gandhi, इंदिरा प्रियदर्शिनी गांधी; 19 November 1917 – 31 October 1984) was an Indian politician and the leader of the Indian National Congress. She was the third Prime Minister of the Republic of India for three consecutive terms from 1966 to 1977 and for a fourth term from 1980 until her assassination in 1984, a total of fifteen years. Gandhi was the first female prime minister to hold the office and remained as the world's longest serving female Prime Minister as of 2011.
Noted for her charismatic authority and political astuteness, Gandhi adhered to the quasi-socialist policies of industrial development that were begun by her father. She was also the only Indian Prime Minister to have declared a state of emergency in order to 'rule by decree' and the only Indian Prime Minister to have been imprisoned after holding that office.

Early life and career
Indira Gandhi was born on 19 November 1917 into the politically influential Nehru Family. Indira Gandhi's father was Jawaharlal Nehru and her mother was Kamala Nehru. Indira gained the surname "Gandhi" by her marriage to Feroze Gandhi. She had no relation to Mahatma Gandhi, either by blood or marriage. Her grandfather, Motilal Nehru, was a prominent Indian nationalist leader. Her father, Jawaharlal Nehru, was a pivotal figure in the Indian independence movement and the first Prime Minister of Independent India.
In 1934–35, after finishing school, Indira joined Shantiniketan, a school set up by Rabindranath Tagore, who gave her the name Priyadarshini (priya=pleasing, darshini=to look at). Subsequently, she went to England and sat for the University of Oxford entrance examination, but she failed, and spent a few months at Badminton School in Bristol, before passing the exam in 1937 and enrolling at Somerville College, Oxford. During this time, she frequently met Feroze Gandhi, whom she knew from Allahabad, and who was studying at the London School of Economics. She married him in 1942.

She returned to India in 1941. In the 1950s, she served her father unofficially as a personal assistant during his tenure as the first Prime Minister of India. After her father's death in 1964 she was appointed as a member of the Rajya Sabha (upper house) and became a member of Lal Bahadur Shastri's cabinet as Minister of Information and Broadcasting.

The then Congress Party President K. Kamaraj was instrumental in making Indira Gandhi the Prime Minister after the sudden demise of Shastri. Gandhi soon showed an ability to win elections and outmaneuver opponents. She introduced more left-wing economic policies and promoted agricultural productivity. She led India as Prime Minister during the decisive victory of East Pakistan over Pakistan in 1971 war and creation of an independent Bangladesh. She imposed a state of emergency in 1975. Congress Party and Indira Gandhi herself lost the next general election for the first time in 1977. Indira Gandhi led the Congress back to victory in 1980 elections and Gandhi resumed the office of the Prime Minister. In June 1984, under Gandhi's order, the Indian army forcefully entered the Golden Temple, the most sacred Sikh Gurdwara, to remove armed insurgents present inside the temple. She was assassinated on 31 October 1984 in retaliation for this operation by her bodyguards.

Indira Gandhi: Pro-economic liberalization
Generally, Indira Gandhi is believed to be socialist. But there is no empirical evidence to prove her to be so. However, there is a systematic evidence to prove that she was a pro-liberal. In a recent path breaking article published in India review (Taylor and Francis, U. K.), the author (Chanchal Kumar Sharma) collects an impressive set of empirical evidence to demonstrate that India Gandhi had no love for socialism. She was basically convinced that Nehruvian socialism had exhausted its utility for India 

Indeed, economists do believe that command economy with all its controls and protectionism is required for first 10-15 years but it becomes quite harmful if it is retained after this time period.
Indira Gandhi demonstrated her conviction through her actions in 1966 when she worked secretly out devaluation of Indian currency and decided to fix the rupee at Rs. 7.50 to a US dollar, though the IMF wanted a rate of Rs 6 against the prevailing rate of Rs. 4.76 (Sharma, 2011, p. 140).She however aborted liberalization policies after 1969, in the face of strong public opposition to her policies. However, she again began an economic liberalization program in 1975 when she was virtually a dictator (due to emergency in India). She again resumed her work in the direction of economic liberalization after she assumed power in 1981. (for details on India Gandhi's economic policies, see Sharma, 2011)

Legislative career
When Gandhi became Prime Minister in 1966, the Congress was split in two factions, the socialists led by Gandhi, and the conservatives led by Morarji Desai. Rammanohar Lohia called her Gungi Gudiya which means 'Dumb Doll'.The internal problems showed in the 1967 election where the Congress lost nearly 60 seats winning 297 seats in the 545 seat Lok Sabha. She had to accommodate Desai as Deputy Prime Minister of India and Minister of Finance. In 1969 after many disagreements with Desai, the Indian National Congress split. She ruled with support from Socialist and Communist Parties for the next two years. In the same year, in July 1969 she nationalized banks.

War with Pakistan in 1971
The Pakistan army conducted widespread atrocities against the civilian populations of East Pakistan. An estimated 10 million refugees fled to India, causing financial hardship and instability in the country. The United States under Richard Nixon supported Pakistan, and mooted a UN resolution warning India against going to war. Nixon apparently disliked Indira personally, referring to her as a "witch" and "clever fox" in his private communication with Secretary of State Henry Kissinger (now released by the State Department). Indira signed the Treaty of Friendship and Cooperation, resulting in political support and a Soviet veto at the UN. India was victorious in the 1971 war, and Bangladesh was born.

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