The Congress manifesto for the current elections talks of the middle path, and balance between government regulation and private sector enterprise, between the public and private sector, urban and rural areas, building a modern economy and thrust to traditional industries.

This balance it says has helped the country weather the current slowdown.

Despite ushering in economic reforms, and steering the country in the direction of greater liberalisation, privatisation and globalisation, the Congress does not want to be seen a party that favours the market.

The 2004 manifesto did not fight shy of the "P" word. Selective privatisation of state enterprises would be pursued, it said, and money raised from sale of public sector equity would be spent on social progammes. It had a detailed economic programme. It spoke of giving incentives to boost private investment. While the public sector was useful in establishing projects, the private sector was good at managing them, and the Congress would leverage their synergies. The public sector would be favoured in strategic areas, including infrastructure, and it would be given managerial autonomy. The emphasis would be on increased competition to enhance consumer welfare. A modern world-class financial sector was the goal, to be achieved through increased competition, presumably from foreign firms. Foreign direct investment approvals would be made transparent, and regulators would be put in place to improve competition and efficiency.

The 2009 version rules out privatisation of state enterprises. It does not mention disinvestment explicitly. The public would be allowed to hold shares in public sector enterprises, but the government would retrain control, especially in telecom, energy, transport, banking and insurance. That still allows the government to shed up to 49 per cent in companies like BSNL, Coal India, Air India, and Life Insurance Corporation.

Some of the balance is necessary. Compassion cannot go out of fashion. We cannot quibble about wheat and rice at Rs 3 a kilo for the down-and-out, manual work in rural areas for the asking, and community kitchens in towns and cities for migrants and the homeless.

The context has changed and it seems to have changed the Congress as well. But the economy will have to grow handsomely to make possible the many subsidies and concessions it promises to give. That would mean more privatisation, not less. And less also of the kind of crony capitalism that we have seen in the telecom, aviation, power, highway and port sectors. Balancing need and greed would be the middle path that the Congress should follow.