The Magic Show of Money: How Investor Summits Turn Public Funds into Private Gains

In recent years, the spectacle of investor summits across India has transformed from a regional affair, pioneered by Gujarat, into a nationwide carnival. Ostensibly, these summits are designed to attract investments, foster economic growth, and put regions on the global map. However, beneath the veneer of development and prosperity lies a stark reality that merits scrutiny.

The Beneficiaries of the Tamasha

At the heart of these events lie the Big 4 consulting firms, often acting not just as advisors but as middlemen or 'dalaals' in Hindi parlance. These firms, along with industry bodies like CII and FICCI, which are registered under Section 8 as non-profit entities, rake in substantial profits from the planning, execution, and post-event evaluations of these summits. The irony is palpable; these organizations earn hefty sums even though they operate under the banner of non-profits, designed ostensibly for public welfare.

The political cronies and bureaucrats are not far behind in this lucrative game. Logistics, catering, and various other services are outsourced to entities linked with political figures or those in the administrative corridors, ensuring that crores of rupees flow into private pockets with little to no accountability. This diversion of public funds into what can be seen as personal enrichment is a travesty of the democratic process.

Media: The Unseen Benefactor

The media, too, plays its role, both as a participant and beneficiary. Coverage of these events, often uncritical and glowing, ensures that media houses secure advertising revenue and maintain good relations with those in power. This symbiosis between media, politics, and business further muddies the waters of transparency and accountability.

Investment: The Mirage

One might ask, amidst all this fanfare, what tangible benefits in terms of actual investment do these summits bring? The conversion rate from MoUs (Memoranda of Understanding) signed at these summits to actual investments is notoriously low. Many of these agreements remain on paper, with only a fraction ever seeing the light of day in terms of real economic activity. This discrepancy raises questions about whether these summits are more about optics and less about economics.

Foreign Trips on Taxpayers' Money

Adding to the saga of misplaced priorities is the frequent foreign trips undertaken by state and central government officials. These trips, justified under the guise of investment promotion or international diplomacy, are often funded by taxpayers' money. While some trips do yield results, many are criticized for being excessively lavish or inadequately productive. The costs associated with travel, accommodations, and entertainment can run into crores, with little transparency or accountability about the real outcomes in terms of investment or partnerships.

What Officers Are Doing the Rest 360 Days of the Year

Beyond the spotlight of investor summits and foreign jaunts, what do these officers do for the rest of the year? There's a growing concern about the productivity and focus of government officials. While some engage in policy-making, project implementation, and administrative duties, there are allegations of:

• Lack of Follow-Through: After summits, the follow-up on investment commitments is often poor. Officials might spend the year in meetings, attending workshops, or on other official duties but with little visible progress on the ground.
• Bureaucratic Inertia: The day-to-day governance can fall into routine with delays in decision-making, red tape, and a lack of innovative solutions to pressing issues.
• Corruption and Favoritism: There are instances where officers are accused of using their positions to favor certain businesses or individuals, often linked to political connections, leading to inefficiency and misallocation of resources.
• Public Engagement: While some officials actively engage with the public, others might spend significant time away from their core responsibilities, attending to political obligations or personal business.

A Case Study: Uttar Pradesh

Uttar Pradesh provides a poignant example of this national trend. The UP Global Investors Summit held in February 2023 attracted investment proposals worth an astounding Rs 32.92 lakh crore, promising to generate 92.50 lakh job opportunities. However, the reality post-summit has been less impressive. According to various reports and analyses on the web, only about half of the investment proposals from the 2018 summit had materialized into actual investments over five years, leading to 3.24 lakh jobs. This stark contrast between pledged and realized investments underscores the issue of conversion efficiency.

Moreover, the 2023 summit's proposals, while grand, face similar skepticism regarding their implementation. The state's focus on showcasing these summits as grand successes often masks the logistical and bureaucratic hurdles that prevent many of these investments from materializing. The involvement of the same network of consultants, industry bodies, and political figures in UP mirrors the national scenario, with significant funds being spent on the event itself rather than on ensuring follow-through on investment promises.

A Diversion of Taxpayers' Money

Critics argue that these summits, along with the foreign trips and the daily activities of officials, are more of a clever ruse to funnel taxpayers' money towards the elite, often from upper-caste backgrounds who hold significant sway in political and bureaucratic circles. The narrative of development is thus hijacked to serve a select few, while the broader populace sees little to no direct benefit. The lack of accountability, the opulence of the events, and the selective enrichment they foster paint a grim picture of economic disparity rather than equality.

Conclusion

The investor summits in India, while appearing as grand celebrations of economic potential, reveal upon closer inspection a more sinister side. They are less about genuine economic growth and more about a systemic mechanism for siphoning public funds into private hands, often under the guise of national interest. With the addition of costly foreign trips and the questionable daily activities of officials, the actual work towards real economic development seems to be lost in a labyrinth of bureaucracy, corruption, and favoritism. It's high time that these events and activities are evaluated not just by their glitzy launches or the glamour of international trips but by the real, measurable impacts they have on the ground. Until then, these summits and the broader activities of officials might just continue to be the grand illusions they are accused of being.