NEW DELHI—In his boyhood, long before Lalu Yadav became India’s most unlikely management guru, he sometimes strayed from his cows and scampered barefoot to the railroad tracks. Dodging crowds and porters, he made his way to the first-class cars and, for a few glorious moments, basked in the air conditioning that blasted from the open door. Then the police would spot him and shoo him away, into the moist trackside cowflap where he belonged.
The boy has grown up, but when I meet him in his New Delhi office, he’s still barefoot, and a headache for train conductors everywhere. Lalu Yadav, 61, is now the boss of all 2.4 million Indian Railways employees. When he wants air conditioning, he nods, and a railway employee hops up to twist the dial. As minister of railways, he rules India’s largest employer—one with annual revenues in the tens of billions—from a fine leather sofa, his sandals and a silver spittoon on the floor nearby and a clump of tobacco in his cheek.
Lalu is a happy man: happy to have risen to become rich, beloved, and reviled all over India; happy that a grateful nation credits him with whipping its beleaguered rail system into profitability; and happy that he’s managed to do all this and somehow stay out of jail. Under his leadership, Indian Railways has gone from bankruptcy to billions in just a few years. When Lalu presented his latest budget to Parliament on February 13, he bragged, "Hathi ko cheetah bana diya" ("I have turned an elephant into a cheetah"). What’s his secret?
“Cow dung,” he says. “I have 350 cows, including bulls. Cow dung—no need of gas.” Everyone tells me about Lalu’s “rustic common sense,” though I’m unsure how burning manure for fuel has made Indian trains suddenly run profitably. But his point is a broad one, about systems efficiency and country wisdom and resourcefulness. “Railways is like a Jersey cow. If you do not milk it fully, it gets tenail,” a swollen and infected udder. Milk every last drop out of Indian Railways, Lalu told his subordinates, and it will prosper.
Only Bollywood does more to unite India than its railways.
The folksiness is no pose. Lalu really did begin as a cow-boy, and he has spent (or misspent) a 40-year career in politics exploiting his bovine roots. Since he became nationally famous in the 1980s, Lalu has been known throughout India as a corrupt and unapologetic yokel, eerily canny in his political maneuvering and cleverer than he looks and sounds.
In his home state of Bihar, where he first rose to power, the common touch served him well. Bihar is India’s poorest and most backward state. In the 1980s and 1990s, Lalu knitted together a coalition of poor Biharis that elected him chief minister. The Lalu years wrecked Bihar further. When corruption allegations surfaced, critics demanded that Lalu resign on moral grounds. The scandal that brought him down, known as the “Fodder Scam,” effectively amounted to a government-wide ruse under which taxpayers paid for nonexistent hay. But Lalu held on for a long time. “I have heard of football grounds and cricket grounds, but not moral grounds,” he said. When the pressure became too great for him to stay in office, he responded with a nepotistic masterstroke, bold even by his standards, and appointed his wife, Rabri Devi, to rule in his place. (“Who do you want me to appoint?” Lalu asked. “Your wife?”)
Lalu may have been corrupt, but he was also a laugh riot. He speaks in an outrageously backwoods Hindi dialect, full of barnyard metaphor and hick wisdom. Even his detractors admit his speech is often charming. “He’s a hugely charismatic man,” says Sankarshan Thakur, a Bihari journalist and Lalu critic. “His ability to reach out beyond language barriers is amazing. He charmed the pants off the Pakistanis,” Thakur says, during government-to-government talks in 2006. On any given day on India’s flourishing array of cable channels, the chances are high of seeing Lalu’s face on a news show, or even on an entertainment show. I clicked randomly to see him guest-judging what looked like an Indian knock-off of “American Idol.” In 2005, a popular Indian film based on “A Fish Called Wanda” took Lalu’s name for its title—“Padmashree Laloo Prasad Yadav”—even though it had nothing to do with Lalu, other than having main characters with his names.
The rest of India chuckled at Lalu, and more often with him. But Bihar remained the most lawless state in the country. “He never tried to do serious business in Bihar regarding development,” says Sushil Kumar Modi, Bihar’s current deputy chief minister, and a Lalu acquaintance for nearly 40 years. “Lalu Yadav is not a serious man. Not a single state-sponsored scheme happened under his rule. He thought, ‘If I can rig the elections, there is no need to do any work.’” Thakur is more damning: “He arrived promising to dismantle the Establishment, an anti-hero out to snatch power from Patna’s bungalows and deliver it to the people, but he ended up a creature of the Establishment himself.” By the time Rabri—a semiliterate buffalo herder who did Lalu’s bidding, and whose name, incidentally, means “Custard Goddess”—left office in 2005, everyone in India knew Lalu, and his name was a byword for incompetence, cronyism, and the abject failure of government.
Even then, Lalu commanded enough of a following among his coalition of “extremely backward castes” (or, in the wonderful semiofficial abbreviation, “EBCs”) and desperately poor Muslims to secure a role for himself in India’s 2004 Congress Party government. He wanted the interior ministry, but the new government wasn’t ready to have a rube in charge of such a powerful portfolio. They gave him the railways ministry, and many expected the same pitiful misrule that had characterized his time in Bihar.
Indian Railways was in trouble: in 2001, a report by the BJP—a government dominated by the Brahmins who are Lalu’s permanent foes—predicted it would hemorrhage cash at a rate of $12 billion annually by 2015. (The whole budget of the Indian government, by comparison, is $128 billion.) Indian Railways was barely managing to cover its daily operating costs, to say nothing of paying for the new equipment and strengthening bridges. The report concluded: “It is very likely that Indian Railways would be a heavily-loss-making entity—in fact one well on the path toward bankruptcy, if it were not state owned.” Outsiders whispered the word “privatization” but were hushed: Indian Railways has been a source of national pride since before independence, and statist sentimentalists could never let it fail.
Lalu’s term as railways minister has been shockingly successful. Instead of turning India’s most prized national institution into a basketcase and a ruin, Lalu has led one of most spectacular economic turnarounds in a country bursting with economic miracles. Indian Railways began raking in cash and posting surpluses in the billions. And the intelligentsia and technocracy, at first shocked and dismayed that a shameless populist had seized a fragile and unwieldy national institution, have largely come around to acknowledging that India Railways has been transformed into a respected institution—and so, possibly, has Lalu.
Only Bollywood does more to unite India than its railways. The statistics beggar belief: every year, Indians take 5.4 billion train trips, 7 million per day in suburban Mumbai alone. New Delhi Station sees daily transit of 350,000 passengers, which is roughly five times more than New York’s LaGuardia Airport, and enough to make Grand Central look like Mayberry Junction. The railways’ total track mileage rivals the length of the entire U.S. Interstate Highway system, even though the United States is three times the size of India. Among human resource problems, the railways of India are an Everest. Its employees outnumber Wal-Mart’s by a figure comparable to the population of Pittsburgh. The world’s only larger employer is the People’s Liberation Army of China. (The third-largest employer is the British National Health Service.)
The cerebral cortex of the whole system is the Rail Bhavan, a pinkish monolith near Parliament in New Delhi. The Rail Bhavan is, in a way, surrounded by its own competition: its street is permanently filled with the traffic of taxis, trucks, buses, and rickshaws that for a time seemed poised to steal away the rails’ business altogether. Outside, a decommissioned green locomotive and the railways’ mascot, Bholu the Elephant, announce to the mess of traffic that the railways are not to be counted out.
Inside, the conditions do not inspire confidence. The building is big, disordered, and honeycombed with offices that bear stultifying bureaucratic titles (“Manager, Zonal Railways, Deputy”). The hallways all have torn-up ceilings. Some are so dark that I have to use a pocket flashlight to read names on the doors, and inside the offices the level of technology is shockingly low. Employees’ business cards have Yahoo! addresses. P.K. Sharma, the bright and competent director of personnel, has on his desk a foot-high pile of green folders bound together with shoelaces. From that desk, 2.5 million lives are managed, and there is not a computer in sight.
The world has few centrally managed organizations as large as Indian Railways, and surely none maintains the same level of performance.
Indian Railways is a government enterprise, and it has the dead weight characteristic of state organs. Employees live in housing provided by the Railways, send their kids to Railways schools, and visit Railways doctors when sick. Nearly a million are pensioners, and therefore provide no value to the ministry at all. Those who do work encounter predictable bureaucratic headaches: the ministry’s departments (six in total, for electrical, staff, engineering, mechanical, traffic, and financial concerns) operate in a stovepipe fashion, with minimal cross-pollination and little effort to coordinate and ensure that the railways as a whole run well. And ultimately Indian Railways has to answer to the taxpayers and citizens who support it, and who quite understandably want assurances that their train set will keep its fares low enough for them to afford.
Somehow it all works out. The world has few centrally managed organizations as large as Indian Railways, and surely none maintains the same level of performance. Delays are inevitable. But even when disaster strikes—as when terrorists bombed tracks in Mumbai in 2006—the railway heals itself quickly, usually within days, like a starfish growing back its arm. To grasp the difficulty of the operation, just imagine running a much bigger version of Wal-Mart, and then add a few wild cards, such as an employee literacy rate of 60 percent and terrorists trying to blow up your stores.
As chief minister of Bihar, Lalu may have been a buffoon and a grifter, but he didn’t fail entirely. And the ways in which he courted failure, but didn’t quite succumb to it, offer a clue as to how Lalu has succeeded at the railways ministry.
He plundered Bihar like every Bihari leader before him. Lalu’s great innovation was to entertain the masses, and to dignify their suffering with a show of attention. He held court at the chief minister’s residence and listened to common people’s grievances. Even if he ultimately did nothing to ease their pain, they left knowing that they had spoken to the most powerful man in the state, and he had responded in the same dialect they spoke to their own friends and family. When his children fell sick, Lalu himself stood in line with them at the public clinic. Never mind that the lines were long, and the treatment horrifying, because kleptocrats had looted the public coffers: Biharis saw their chief minister waiting like a poor, ordinary man, so they forgave him for being rich and extraordinary.
At Indian Railways, Lalu retained that popular touch and remade the passenger experience accordingly. A key feature of train travel, even in the cheap seats, is tea service. Lalu banned plastic teacups, which had been littering the countryside, and replaced them with peasant-made kullhars—earthen mugs that after a single use can be smashed on the ground, where they then return to the mud from which they are fired. He employed weavers to make bedding out of khadi (homespun cloth). And to avenge his childhood eviction from the air-conditioned cars, he introduced a new class of service: garib rath, “the poor man’s chariot,” on which the single frill is air conditioning. Despite boasting this once unimaginable luxury, garib rath is extremely cheap, within reach of even the backward castes from which Lalu himself hails.
But his single most important innovation at Indian Railways was not a populist move at all. It was an elite one: the hiring of a prodigiously talented civil servant named Sudhir Kumar. Kumar, 50, is from a Gujarati family in Punjab. The family knows business: “If there is money lying around, we can smell it,” Kumar says. His father was a clothing wholesaler, and his brothers and sisters have, according to Sudhir, made a fortune in business for themselves. Sudhir takes pride in having given up the joys of free enterprise to work for the government, a calling he regards as nobler and more satisfying than work done for personal gain. He clambered over thousands of competitors to land in his current job as a member of the Indian Administrative Service (IAS), a sort of Delta Force for Indian civil servants. Every year, out of 300,000 aspirants, no more than 60 make the grade. They fan out all over India to solve the subcontinent’s most intractable problems, before heading back to New Delhi to regroup and take their next assignment.
Kumar’s first big assignment was Bihar. Bihar broke up into two smaller states in 2000: Jharkhand, which contained rich mineral and coal deposits, and Bihar, which had the larger population by far. Bihar stood to lose over half its tax revenue. (When Japanese businessmen expressed interest in the mineral wealth and promised to bring prosperity to the stricken region, a joke circulated: “Give us mineral rights,” the businessmen told Lalu, “and within six months, Bihar will be like Japan.” “That’s nothing,” Lalu said. “Give me Japan for six weeks, and it will be like Bihar.” It’s a testament to Lalu’s brazenness that this exchange seems plausible.) Kumar’s job had been to separate the two states in a way that allowed each to establish a sufficient tax base within seven years. He did it in 30 months by closing loopholes in the tax code, cutting deals with tax cheats, and in general collecting taxes with an intensity most Indians would reserve for a cricket match or a ground war.
Lalu noticed. When he ascended to the railways ministry in 2005, he requested Kumar as his deputy. Kumar had risen to an IAS position so elite that his move required parliamentary approval, which quickly arrived. The Congress Party’s coalition government, now led by the Oxford-trained economist Manmohan Singh, prized technical competence and was happy to appoint a shrewd bureaucrat to watch over its most unlettered cabinet member.
Lalu plundered Bihar like every Bihari leader before him. His great innovation was to entertain the masses, and to dignify their suffering with a show of attention.
Since then, Kumar has labored in an office immediately opposite Lalu’s, but completely unlike the minister’s opulent, wood-paneled lair. The minister lounges on his sofa, watching NDTV, a TV news network. Kumar’s two flat-screens show real-time data on the country’s main routes. Periodically, a minion walks into Kumar’s command center to present a 20-page stack of papers that represent the day’s statistics on passengers, freight, and on-time arrivals. “Like Jack keeps a daily tab, I also keep a daily tab,” Kumar says, referring to Jack Welch, one of his idols. The contrast with Lalu’s own listless inattention is jarring. When Lalu tells me about his success, mumbling vaguely about winning “the confidence of the business classes,” Kumar shouts from the back of the room, citing revenue figures from memory. And when Lalu drifts off on earthy tangents about dung or latrine systems (“urine—it fall all over the platform”), Kumar winces.
Lalu and Kumar rule the railways ministry as twin consuls, and they rule it well. Officers snap to attention and salute when they pass in the corridors. In his relatively spartan office, Kumar’s sole concessions to luxury are a private bathroom, an attendant who refreshes his tea constantly, and an unshakeable air of dry superiority that would be less tolerable, were he not the brains behind several industry-changing decisions.
None of the innovations was original. All sound, in retrospect, like no-brainers: make the trains faster, heavier, and longer. Kumar wrinkled his nose when I pointed this out. “A five-billion-dollar no-brainer!”
Political considerations precluded hiking fares, which in any event were often so low that a huge increase would bring in only a little more revenue. (With unlimited-travel passes in Mumbai costing as little as $2 per month, it’s a mystery why Indian Railways collects passenger fares on some routes at all.) And none of the standard remedies for weak businesses—selling off under-performing assets, or laying off employees—could happen, because Lalu forbade anything that could make him look unfriendly to the poor. “People used to say about Jack that he will nuke every damn thing which is not profit-making,” Kumar complains. “But I can’t nuke anything, because of the political imperatives. I had to serve an omelet to the nation without breaking any eggs whatsoever.”
The first and most crucial change was born from the minister’s own whimsy. In his first month as railways chief, Lalu visited a railway stop in Danapur, Bihar, for a spot inspection of the freight. The demand was ridiculous: since the station lacked an in-motion weigh bridge, railwaymen had to remove every item from a train and weigh it on a small industrial scale. Lalu lounged nearby, supervising the workmen from his chair, like a zamindar in the days of the Raj. The scale pinned at just a couple hundred kilos, and the train was rated for a thousand tons of freight. “My minister was new,” Kumar says, “and no one had the courage to tell him that this wasn’t the way it could be done.” Eventually, the station manager mustered the courage to inform Lalu that he would have to sit for a full week watching the operation, and that he should give up, go home, and rest. Lalu, showing the stubbornness of a newcomer, instead demanded that the whole train re-route to Muri, roughly 250 miles away, whose station had a larger scale.
When the workers weighed the car and found it overloaded, Lalu demanded that every train in India be weighed at once, at one of the 30 weigh bridges. Overloading turned out to be rife, and the minister, incensed at the possibility that employees and customers were defrauding the railways, visited Kumar. “If you are carrying this load in any case, and I haven’t seen your tracks damaged, why are you not charging for it? If your locomotives are in any case carrying this load, why the hell you can’t increase the axle load?”
“The only disgruntled element in this exercise was the employees and customers who were part of this hanky-panky,” Kumar says. (Lalu himself is more triumphant: “Some mafias were working in this business. I caught them and punished them!”) The spot inspection served as a pivot from which Indian Railways as a whole could reform itself. The change ultimately became a billion-dollar improvement in the revenues of the railways.
The decision did entail some risk: heavier axle loads mean greater wear on tracks and bridges, and therefore greater need to replace infrastructure. If a train derailed, the public would blame heavier axle loads, and the minister would have to resign. But Kumar says Lalu’s friendly relationship with his public gave him more room to accept risk. “My mother has taught me to take the bull by the horns,” Lalu said. “If you try to take it by the tail, it will kick you in the ass.” “No other minister could summon the courage to do this,” Kumar explains.
His single most important innovation at Indian Railways was not a populist move at all. It was an elite one: the hiring of a prodigiously talented civil servant named Sudhir Kumar.
The move to heavier axle loads looks like an obvious move in retrospect, but similar actions at other railways have required years of study and bureaucratic maneuvering, says Steve Ditmeyer, an American railroad expert who has studied the Indian Railways turnaround. To move to heavier loads means making sure the part of the surge in revenue from the extra freight—really the same amount of freight, just more paid freight—needs to be set aside for a faster rate of track replacement. Lalu demanded from on high that axle loads increase. Kumar studied the problem and implemented the order, coordinating with department heads and India’s independent safety commissioner.
“The Railways was struggling with this problem for the last 25 years, but they didn’t have the consensus” necessary to make the change, Kumar says. “This one small inspection brought about that consensus.”
In addition, Kumar and his team began examining the competition more closely. In the 1990s, Indian Railways had so exasperated customers that even cement manufacturers, whose dense product is perfect for rail travel, had shifted their share of the logistics market to trucking. Indian Railways’s share of their business fell from 71 percent in 1991 to 30 percent in 2004—even though Indian roads are terrible, and unlike trains, trucks must clear customs, pay taxes, and pay off tax inspectors at the borders between each of India’s 33 mainland states and union territories.
The system had been rigged to handicap trucks by imposing bureaucratic requirements at borders. But in most other respects, trucks were simpler: Indian Railways maintained a complex tariff card, which the British drafted in the 1860s and which still included a range of archaic commodities. With corrigenda, it fattened to the size of a phone book.
“If you have to hire a truck driver, he’ll just ask, ‘If you want to hire my truck, I’ll charge 40 thousand rupees,’” Kumar says. “Even if you’re carrying an empty box, you have to pay full charge. So we said, ‘Why the hell Railways are getting into this mess?’” The tariff card shrunk to the size of a postcard (even though it still specifies rates for jute and “edible salts”). With that reform Kumar and Lalu began working closely with industry to recapture market share, and to outsource the difficulty of filling freight cars efficiently to their customers. “Whatever you carry,” Kumar says, using a favorite phrase, “it’s your funeral.”
In previous regimes, Indian Railways assumed a monopoly position. “We are not in the business of railways,” Kumar says. “We are in the business of transportation. And we have competitors.” Industry members echoed the position. One told me that the previous leadership of the ministry had rationed out the railways’ services, whereas now close attention is paid to customer demand. A logistics manager at a Calcutta manufacturing giant likened the succession of business-friendly measures to the succession of record-setting pole vaults by the Soviet athlete Sergei Bubka—an endless series of efforts to outdo oneself.
At the same time, Kumar engineered a system under which inspections of trains took place after a fixed number of kilometers of service, rather than after every trip. Trains languished for shorter times in railyards. And increased freight and passenger business—in part the result of cozier relations with industry and passenger enthusiasm for innovations such as Lalu’s garib rath—meant that each train could add several extra cars, and unit cost plummeted by as much as 50 percent. Adding cars generated plenty of bottom-line revenue: the trains were already going, so the cost of adding an extra car was marginal.
Underlying all this, Kumar tells me with undisguised pride, working off a PowerPoint presentation seemingly designed to show up the BJP committee that predicted doom for Indian Railways seven years ago, is an insight borrowed from India’s telecom boom: bigger is better. “Which is a bigger play on scale or volume?” he asks. “If you were to build Indian Railways today, it would cost you not less than a trillion dollars. But once the network is laid”—like the initial outlay for India’s mobile towers—“the less one unit costs. What applies to telecom equally applies to me.”
Lalu’s success owes everything to Kumar, but Kumar deflects the praise back to the minister—most of it, anyway. “This is a democracy. I have only the power and clout that he gives me, and I am a big zero without him. The day he decides he does not need the services of Sudhir Kumar, within hours I am gone.”
But there’s glory in the turnaround for Kumar, too. During our conversations, a bespectacled young doctoral student from Columbia University interrupts us to show Kumar manuscript pages from a book they are coauthoring about the turnaround. And Kumar’s agenda included a meeting with a major commercial publisher. Kumar has brought in American and French experts on railway management—including Ditmeyer—and solicited reports from them that invariably mention his own role in the transformation.
‘Boys and girls from Harvard, they come to me,’ Lalu bragged, slapping the soft sole of his bare foot with a crack to stress the irony.
I asked Kumar whether the temptation of private-sector work would eventually draw him out of the IAS. His response was curt. “There is no temptation, sir. The kind of satisfaction you get there is nothing compared to the satisfaction of serving my country.” He put down his papers, and his offended expression melted into a look of pain. “My father,” the prosperous clothier, “said, ‘Go to serve the people.’ He uttered these words, and within four hours, he was no more. I am living with that every single day.” He put down his stack of papers. “When you are giving shape to the dream of your father—what better way to self-actualize?” Even in the language of Tony Robbins, the speech is affecting. At this the tears welled up, and the prince of the railways wept into his tea.
Bringing in Kumar clearly helped Lalu instill professionalism in the ministry. But it was equally vital that he did not bring the crew his critics expected. Lalu’s first acts included an outright ban on his own cronies and family members in the Rail Bhavan. In Bihar, they had lurked on the sidelines, awaiting patronage from the chief minister. The corruption reached ridiculous levels: when I visited in 2001, media murmured about malfeasance in the state’s smallpox eradication program. It was regarded as suspect that the state employed several people to guard against a disease that since the 1970s had existed only in heavily guarded vials in Atlanta, Georgia. Bandits (“dacoits,” in Indian English) plagued the countryside and kidnapped anyone with money. Sometime, they put obstacles on the train tracks, so they could plunder the cars, each a curry-scented movable feast of defenseless passengers and freight.
In 2008, I returned to see how Bihar had fared under three years of rule by Nitish Kumar, a longtime Lalu foe and, not coincidentally, the minister of railways who preceded Lalu. I mentioned to Lalu that I planned to visit Bihar. He seemed unconcerned about dirt I might dig up, and said I should greet the manager of the Maurya Patna, the city’s only international-standard hotel. “They buy my milk.” When I added that I would not fly, but would take his “poor man’s chariot,” he jerked to attention and warned me gravely, with a wag of the finger, to hold my belongings tightly and to avoid accepting food from strangers on the train, lest I be poisoned and robbed.
I arrived in Patna safely. In Lalu’s absence, everything had improved—even the railway station itself. It is still no Grand Central, and if it had an Oyster Bar I’d probably skip the raw ones. But its third-class waiting room can no longer be described (in the words of my old guidebook) as “an underground car-park for human bodies.” The city of Patna had once resembled a medieval warren. Now, in the busy streets, pissy stenches singe the nose not constantly, but only in a few informally designated areas. The hotels have sold out their rooms for wedding parties. And at night, the Mayfair Ice Cream Parlor is packed with kids, and the ice cream probably won’t give you the runs.
Years after Biharis voted him out, Lalu’s picture is still everywhere—in shops, on banners over the road, and even, I am told, on bathroom doors (in lieu of men’s and women’s stick figures, they sometimes use portraits of Lalu and Rabri). But the people who speak to me do not remember Lalu fondly. In the years since Nitish Kumar came to power, the city has flourished, and the state government has fought against the gangsterism that pervaded the countryside. Eight years ago, in Patna and the rural areas alike, murders and kidnappings were common. Now, as in most Indian cities, the greatest safety risk is the traffic. On the train back to New Delhi, a man in my railway berth offered me raisins, and I felt safe enough to try one.
Lalu mismanaged Patna terribly. So how has he managed a gargantuan state organ so well that students from Kellogg and Wharton are taking notice?
Part of the answer lies in India’s recent economic growth spurt: Lalu stood on the shoulders of an economy that never grew by less than 6 percent per year during his whole tenure as railways minister. (India’s economy has slowed considerably since the global downturn began.) With a boom like that to fuel demand, how could he fail? All he had to do was sit back and let the market propel him forward. Indeed, Sushil Kumar Modi, the politician who claims to be picking up after Lalu’s mess in Bihar, notes that Lalu still spends all his time in Bihar, and rarely visits his own New Delhi office. The railway turnaround began before he took over the ministry, during Nitish Kumar’s reign, although few predicted that it would continue as it has. The most cynical of his critics expect to discover after Lalu has left the ministry that safety corners have been cut, and that his successor will have to deal with a series of derailments and bridge collapses. But outsiders such as Ditmeyer say that Lalu’s management has been fundamentally sound, assuming he’s making the proper investments in maintenance.
‘If he is held responsible for failure,’ Kumar complained, ‘he should be responsible for success as well.’
The other half of the explanation, though, seems to be a simple case of democracy and markets working. One of the salutary effects of India’s recent boom is that people such as Lalu have more opportunities to be measured, and even civil servants such as Kumar are eventually subjected to the same pitiless bottom-line scrutiny that businesses face. Only recently did India really begin to shake off its penchant for state-owned enterprise. By the time Lalu took over, it was no longer possible for Indian Railways to run as if it were a monopoly in the transportation sector, or as if it were a Lalu fiefdom, as Bihar was for so long.
Sankarshan Thakur, the journalistic gadfly who wrote a caustic account of Lalu’s failure in Bihar, says Lalu is managing the railroads competently as penance for his mismanagement of Bihar. “Lalu got insecure,” Thakur says. “He was sorely wounded by defeat in Bihar, and he needed to recover.” The railways ministry is a constituency-building ministry, one that allows a politician to be observed succeeding. He had failed in Bihar, and if he hoped ever to recover the leadership he once enjoyed, he had to run the railways ministry with exemplary competence. Everyone is watching, including the peasants. Lalu’s constituents are now not only voters but customers. Biharis kicked him out once already, and he’s acting responsibly so they don't do it again.
Lalu is aware of his new publicity, and he courts it. David Blair, a railways expert from Washington, D.C., brought a delegation of students to meet Lalu and was shocked to discover that a camera crew lay waiting to record their visit. “Boys and girls from Harvard, they come to me,” Lalu bragged, slapping the soft sole of his bare foot with a crack to stress the irony.
After our conversation, Kumar joined me for lunch at the Shangri-La Hotel. The Shangri-La competes with Imperial and the Oberoi for New Delhi’s business visitors, and on that summer day, foreigners in navy and black suits waited with us for the buffet to open. To wear a suit in India during the summer bespeaks either total ignorance of the oppressive humidity, or—surely the case with these men—an expectation of door-to-door travel from one four-star air-conditioned paradise to the next. These men lived the life Kumar passed up when he joined the civil service, and which his brothers and sisters apparently still enjoy.
While a waiter filled our glasses with ice water, Sudhir kept making the case for his boss. Be wary of Lalu’s critics, he said. They’re a jealous bunch, and hypocrites to boot. They criticize him for his Bihar failures, but then overlook his railway success. “When Lalu presented his first budget to Parliament, everyone said Lalu had been busy campaigning in Bihar, so Dr. Manmohan Singh”—India’s current prime minister and former finance minister—“had drafted this budget. They could not internalize that it came from Lalu-ji, because he’s a shepherd or farmer or whatever.”
“If he is held responsible for failure,” Kumar complained, “he should be responsible for success as well.” Kumar was pleased with that line, and nodded across the table to the Columbia economist, as if to remind him to save it for their book. And as for Lalu’s successors, Kumar warned, they’ll be subjected to a higher standard than before. “If they revert back to two-percent growth, Parliament will not accept it. A democracy will not accept it.”
Lalu, in all his rustic ignorance, had chosen not only a shrewd businessman but a political philosopher, self-actualized equally by his business savvy and patriotic self-abnegation. Kumar stood up grandly, strode to the vegetarian entrees, inserted his shoulder firmly amid the businessmen, and triumphantly spooned out some korma.
Graeme Wood is a staff editor at The Atlantic.