World Notes India

Hobbled by internal divisions, lack of direction and a leadership vacuum brought on by the May assassination of Rajiv Gandhi, India's Congress Party took the path of least resistance last week: it tapped an uncontroversial party stalwart to serve as the nation's Prime Minister. P.V. Narasimha Rao, 70, who has a heart condition, became the unanimous choice of party legislators after his main rival, Bombay politician Sharad Pawar, 50, withdrew his candidacy for the nation's top post in the name of party unity.

Pawar's unexpected capitulation forestalled a looming power struggle, but the Congress Party's problems are far from over. Incomplete returns from the interrupted parliamentary election indicate that while the party will return to power after a 19-month hiatus, its hold on the lower house's 545 seats will fall short of a majority.

Rao's first tasks will be to contain separatist violence and address a thicket of economic problems, including an $80 billion foreign debt and a 17% inflation rate. After that, Rao will need to restore cohesion to his party's fragmented ranks.