The losses are easy to tot up. The greatest has been the blow to the Congress’ credibility as a responsible alternative to the BJP. India can’t have a two-party system because the federal structure that has stabilised two parties or groups in all but one or two states has yielded as many as 35 parties in the Lok Sabha. But it has been moving towards a binodal system in which stable coalitions are emerging a round the BJP and the Congress. This process was almost complete on the BJP dominated Right. But it had still to jell on the Congress-dominated Centre-Left. For that, the Congress needed not only numbers, which it had, but also a certain moral ascendancy. After its Pachmarhi decision not to pull down governments capriciously, it had gained in stature, and this was re flected in its victories in Delhi, Rajasthan and Madhya Pradesh. That moral ascendancy has taken a beating. Today, few in the party contest the view that opposing President’s rule in Bihar was a big mistake. But was it necessary for the party’s leaders to be propelled by that mistake into making several more, till they became objects of derision in the country? The second loss has been the setback to governance. The Vajpayee government now is like a champion steeplechaser who has hit a fence halfway a round the track. The government stumbled just when it was hitting top speed. The talks with the US on India’s future nuclear status were almost complete. A breakthrough had been achieved in relations with Pakistan but needed to be followed up urgently if the Doubting Thomases in the Pakistani establishment were not to gain the upper hand again. The government had grasped the nettle of the fiscal deficit in right earnest, and promised a second generation of structural reforms to attract foreign investment.