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POLITICAL
RESOLUTION
Adopted
at the 19th Party Congress
I
The
19th Congress of the
Communist Party of India meets in a political situation which is
essentially different from the one that prevailed only a year
back. There has been a momentous change in the political scene.
This
was mainly due to the people’s desire to put on end to the
communal politics of the NDA regime which caused revulsion among
the vast majority of our secular minded people and a feeling of
insecurity and apprehension among minorities, coupled with the
mounting anger of different sections of the toiling masses
against the anti-people economic and other policies of the NDA
government.
The
result was that the BJP and its NDA allies were voted out of
power. The country
was saved from advancing along the road to a fascistic order.
A
secular majority was elected to Parliament, so that a secular
coalition government could come to power, led by the Congress
which got the largest number of seats, though only a little more
than a half of what is required for a majority.
Money-Power, muscle power, rigging and mafia influenced
the results here and there.
But taken together, it was the political maturity of the
voters that prevailed.
Left
Parties emerged with the largest representation so far in
parliament. This enabled the Left not only to act as a unifying
and motivating factor in the formation of a secular government,
but also to ensure it has a stable majority and a credible
progressive programme. Initially our view was that the entire
Left should join the government. However, the Left parties
together decided to stay out of the government and support it
from outside. This arrangement today enables the Left to keep a
vigilant eye over the functioning of the government.
The
people’s vote has brought about not only a change of
government, but also the possibility of a change of direction.
The political tactics pursued since the Chennai and
Thiruvananthapuram Party Congress had borne fruit. The defeat of
the BJP/NDA government, the installation of a secular
government, the increase in Left representation, and the
formulation of the Common Minimum Programme vindicates the
political and tactical line of the CPI. Today the background is
vastly different from the earlier congress at Chennai and
Trivandrum. We have now opportunities to forge ahead.
The
Common Minimum Programme (CMP) drawn up with the active
participation of the Left reflects the change of direction of
policy. The CMP reflects the common measure of agreement on the
urgent immediate needs and problems of the country and its
people, and indicates the way by which the country is to come
out of the communal alienation and the economic and social
disaster brought about by the NDA regime. At the same time it
shows the way to overcome the international isolation of our
country from the developing world to which the previous
government had led it. The CMP is a political and practical
document, setting forth the tasks of this government. It forms
the basis of the Left’s support to the government. As long as
the UPA Government implements the CMP and take scare of its
priorities, so long it will continue to enjoy the Left’s
support and positive cooperation. Any departure from it is bound
to result in conflicts. The formation of the
UPA
government, the Left support to it and the formulation of the
CMP constitute a
tactical response to the prevailing situation.
As
a supporting party the need arose for coordination with the
government. To serve this purpose a UPA-Left Coordination
Committee has been set up. By keeping out of the Government and
yet supporting it from outside and with the UPA-Left
Coordination Committee in place, the Left is in an unique
position where it can openly spell out its concerns, voice its
distinct opinion on policies and keep a vigilant eye on the
general performance of the government. At the same time it can
mobilise the masses against all deviations, and for enforcing
its implementation. This is an unusual and unique situation,
which provides opportunity for the Left.
If
whatever the Left is voicing has to become effective, there has
to be mass backing, a people’s movement on specific issues.
It is not a dormant mass that will ensure the
implementation of the CMP or guarantee the stability of the UPA-Government.
It is people’s active involvement that alone will
overcome all obstacles, opposition, hesitation, or attempts at
sabotage from reaction and vested interests both from within and
without the UPA. Coordination between the UPA and the Left is
necessary but is not enough in itself. Mass mobilization and
mass intervention are essential. Implementation of the CMP can
give a certain measure of relief to the suffering masses. Such a
movement led by the Left has necessarily to demarcate itself
from the movements launched by the BJP-led opposition whose sole
aim is to defame and destabilize the government.
The
verdict of the Indian voters conveys the message that basic
agricultural development and necessities like food, shelter,
drinking water, power, education for all children, access to
health services and security of life are the priority areas that
have to be tackled. It is the task of the Party to make these
felt needs into real demands backed by mass movement.
The
focus of discussion and action by the Left has to be on these
issues. They have
to concentrate mainly on issues concerning agriculture and rural
development which are the keys to India’s democratic advance.
Issues such as distribution of all ceiling land and government
waste-land among the landless, completing all pending
irrigations projects, water harvesting and provision of drinking
water, watershed programming, providing easy credit to kisans,
remunerative prices for their produce and arrangements for state
purchase, subsidised ration for BPL families and expansion of
PDS so as to keep prices under control, comprehensive law for
agricultural workers, national employment guarantee act which
undertakes public works and provides work to the unemployed,
extension of primary education and
health centres, encouragement and protection of all
traditional and employment generating industries in the rural
areas, etc. – these should
be in the forefront of the Left’s
agenda. At
the same time the Left must defend all trade union rights won
through struggles and sacrifices, including the right to strike.
The
Left should appear as a positive factor for India’s
development, even while opposing moves which are meant to serve
the interests of foreign and domestic monopolies to the
detriment of our economy. Propaganda
deliberately spread by the bourgeoisie, as if the Left is an
obstacle to growth and development must be dispelled.
The Left stands for India as a prosperous, developed
country, with a resurgent agriculture and vibrant economy which
generates jobs, and where social justice prevails.
Tsunami:
The
tsunami disaster which devastated our South-eastern coastline
and took an immense toll of life and property evoked a
tremendous response from all sections of the Indian people.
India has also extended a helping hand to other affected
countries. This has earned a lot of good will for India.
Tremendous effort require to be made for rehabilitation and
reconstruction, both by government and private agencies. Certain
permanent arrangements have to be made for early information
about such natural disasters. Unfortunately an unhealthy trend
of discrimination has been displayed in the matter of relief to
the dalits. This must be strictly corrected at the stage of
rehabilitation. The tribal people in the Andaman and Nicobar
Islands have been the worst hit. Prompt steps have to be taken
for restoring their habitat and ensuring their survival.
Fishermen
all along our coast, who have lost everything, have to be fully
rehabilitated, so that they can once again pursue their
livelihood. The Party units that are their should devote their
energies to this purpose.
II
The Character of
the UPA Government and the Congress
The
UPA government is a bourgeois government.
The Left support to it is
a specific response to the existing
situation. The aim and tendency of the government is to
pursue the neo-liberal policies which are primarily aimed at
creating a “Free
Market” economy, an unrestricted capitalist economy. Repeated
statements by the leading party of the coalition, viz. the
Congress about going ahead with ‘economic reforms’,
upholding policies of liberalisation, privatisation (disinvestment)
and globalisation point in that direction.
Their allies in the UPA acquiesce with these policies.
This is their economic outlook and policy. They are at present somewhat restrained and hampered in this,
firstly due to the opposition from the Left; secondly, due to a
certain degree of popular resistance; and thirdly, due to the
defeat that overtook the BJP/NDA regime which brazenly pursued
these policies. This
has made the Congress a bit wary and cautious, and speak about
‘reforms with a human face’. This is the basis of the
contradiction in the situation.
Congress
leaders have not fully learnt a lesson from the defeat of the
previous Narsimha Rao-Manmohan Singh Government. Nor have they
learnt fully from the collapse of the Vajpayee government.
Indeed, the pressures from the IMF, World Bank and WTO
have increased though the present world order and the Indian
political set-up curbs their efforts to some extent.
The
UPA Government is amenable to pressure from both sides in the
coalition set-up. Its policies are the result of both yielding to and resisting
International Finance Capital.
It depends upon the Left’s strength to drive it in the
direction that the Left wants to in the given situation.
Therefore this is a transitional period. Much depends
upon the Left’s ability to influence its policies and
practices on the one side, and on the other side the capacity of
the Congress to consolidate its own position even while working
within the coalition framework.
After
touching the lowest depth in the terms of number of seats in
Parliament in three elections, the Congress has accepted the
inevitability of both pre-poll and post-poll coalitions with
other secular forces. Its attitude towards the two Communist
Parties however remains one of trying to marginalize them as
much as possible.
The
pre-poll alliances with regional parties in some states enabled
it to improve its seats. But in states where the Congress alone
had to fight with the BJP or the Left, its poll performance was
dismal. Even so, most of its second-rung and state leaders
continue to think that they can come to power on their own
strength and hesitate to have any adjustment with other secular
parties. At the Centre, while accepting the inevitability of a
coalition to share power, many of its leaders and ministers do
not accept the ‘coalition dharma’ of consulting other
partners and the supporting parties. Their mindsets remain tied
to the old understanding and style of work. They function
unilaterally and pursue their own policies. All this is
contributing to the rise of conflicts and contradictions.
In
states like West Bengal where the Left is strong, the Congress
has not hesitated to enter into opportunist alliance with the
‘Trinamool Congress’ – an ally of the BJP, in panchayats,
and municipal bodies, with a view to counter the Left. Similarly
in Kerala, they entered into clandestine arrangements with RSS/BJP
elements.
As
the leader of the coalition the Congress today feels that it is
on an upcoming trail. It has come to think that it can dictate
terms to other parties who are influential in those states. This
too is giving rise to unwarranted tension among secular forces
and parties.
It
is this attitude of the Congress which led to its ignoring the
other partners of the UPA as well as the Left, while sharing out
seats and putting up candidates for the assembly polls in Bihar
and Jharkhand. The
strength of the BJP and its NDA ally viz, the JD(U) was
underestimated, and the results were disastrous, for the secular
parties, the Left and the Congress. In Jharkhand the BJP has
been able to return to power, and Bihar has to undergo a period
of Presidents rule. Our Party’s electoral tactics in Bihar and Jharkhand also
need to be reviewed.
III
The BJP and its
Allies: The Struggle against it:
The
NDA led by the BJP pursued a thoroughly anti-people economic
policy, combined with its aggressive communalism, and its brazen
arrogance while carrying out these policies. It rode roughshod
over the common people and completely ignored the rural mass.
The Gujarat genocide in 2002 carried out with satanic furry by
the BJP/VHP, which took the toll of more than 2000 people,
destroyed houses and shops belonging to Muslims, exposed the
ugly face of its communal agenda. The BJP’s communal
propaganda and practices was its weapon to divide the people and
carry through its economic programme of serving the interests of
monopoly capital and other vested interests. There is a link
between communalism and reactionary political, economic and
social policies. To fight effectively against BJP’s
communalism we have also to
expose its links with reactionary policies, its disregard
for the unemployed, the farmers, the workers and so on. Its sham pretence of patriotism and nationalism can be
rubbished by exposing the anti-national character of all its
policies. People cannot be inspired to fight communalism only
through lectures on the virtues and necessity of secularism.
This should be closely combined with economic, social and
cultural issues, as pursued in a communally surcharged
atmosphere.
In
the Parliamentary and the state assembly elections held
thereafter, the BJP has been beaten but not broken. Its cadres
are frustrated and demoralized. Its leadership circles are plagued with squabbles.
Gone is the boastful claim that it is a disciplined
party, - a party with a difference. But it would be a blunder to
underestimate its strength and its potential to stir up divisive
and communal tension. It has large presence in parliament and in
several state assemblies. It
rules in four states. Apart
from this it has made deep ideological and physical inroads in
vital organs of the state and civil society. To meet the new
situation and rally its cadres, it has once again made Advani
its President by carrying out a coup at the top. Under him the
BJP has been latching itself on to any issue that comes its way,
building it up into a confrontation with the government and
paralyzing parliament on several occasions.
It gives every issue a communal twist and tries to whip
up a communal frenzy. The most vile instance was the haste with
which BJP leaders jumped into the fray when distorted and
mischievous census figures were published, intended to show that
the muslim population had suddenly jumped up.
They loudly cried that at this growth rate muslims would
soon outnumber the Hindus in India! The recent criminal case
launched against the Kanchi Shankaracharya is another glaring
example. Abandoning all vestiges of respect for law, the entire
Sangh Parivar came out on the streets virtually challenging the
applicability of criminal law on religious leaders, and
demanding that the Kanchi Seer be set free. The demand boils
down to the view that Hindu religious leaders should be
regarded, as above the law and to arrest any of them constitutes
an attack on Hindu religion.
The
BJP has now openly gone back to its old aggressive Hindutva,
talking about Hindu ethos and culture.
Even God has been dragged in, with Advani claiming
that his Party is the ‘chosen instrument of Divinity
for protecting the Hindus’.
Vajpayee’s
laboured attempt to equate this ‘Hindutva’ with
‘Bharatiyata’ is
only to camouflage its ugly essence, its real face.
The Sangh Parivar would act at the ground level, while at the top Vajpayee will
dress it up as the embodiment of ‘Bharatiyata’ and
‘cultural nationalism’!
‘Hinduism’
and ‘Hindutva’ are two entirely different concepts.
Hinduism is a religion which more than 82% of our
people belong to while Hindutva is politics – the
politics of a group, a party, of the Sangh Parivar and its
constituents who have political aims up their sleeve. Its
aggressive communal character, its fundamentalism of hate and
hostility towards other religions, its quick attempt at picking
up any issue that comes up and of giving it a communal twist,
its complete abandon of any moral values or ethics, its fascist
aims and objectives have to be recognised. It is the core of the
Sangh Parivar’s fascist ideology, its driving force, its
cutting edge. There is nothing religious about it.
The
overwhelming majority of our people are secular-minded. That is
the biggest guarantor of our secular polity. The rise of Hindu
fundamentalism in certain section in the name of Hindutva has
given rice to Muslim fundamentalism in some sections. The one
fuels the other, and both tear the fabric of secularism in the
country. Both have to be countered.
BJP’s Allies:
The
allies of the BJP are now in a quandary.
They were battered even worse than the BJP in the last
election. Not all
of them were communal in outlook, nor do they accept the BJP’s
commitment to Hindutva. But
opportunism and the greed for a share of power drew them towards
the BJP at the time. They
satisfied their flexible conscience by having a so-called
National Democratic Agenda of Governance, though the partners of
the BJP in the Sangh Parivar were free to continue in their way.
In
course of time, even this veil was torn asunder. The NDA
remained nothing more than a signboard while the BJP virtually
took over. Today
with the opposition BJP’s strident advocacy of Hindutva, and
with Vajpayee competing with Advani in advocating it, and
standing up for Narendra Modi, the allies do not know which way
to turn. For the
time being, BJP leaders are not worried about their allies
except to keep them as props in the coming assembly elections.
They are more concerned about rallying their own
frustrated and mutually quarrelling cadres.
The allies have little options left.
However, political wisdom demands that all of them should
not be considered as lost forever.
In the rapid twists and turns of politics, one or the
other may break out sooner or later of the bondage to the BJP,
and range itself against the BJP and the Sangh Parivar. The break-up of the NDA would be a major development in
Indian politics.
The Sangh
Parivar’s All-out Attack Against Communists:
The
Sangh Parivar has picked on the Communist Parties as their
special targets. It
attributes the hands of the Communists behind every happening.
It has launched a virulent campaign against the
Communists, resorting to all sorts of lies and provocations.
It has declared its intention to take on ‘Marxism’ in
an ideological fight.
Behind
this anti-Communist campaign is the realization that the
Communists and Left are the most consistent and relentless
fighters against the Sangh Parivar’s ideology of communal
fascism, its demagogy on religion and Hindutva, its reactionary
politics of serving the interests of the landlords and
monopolists and its alliance with imperialists and reaction all
over the world. It
considers that the Left is the most formidable obstacle in
realizing its ambitions.
The
CPI and the Left have to return the compliment of the RSS by
stepping up their attack on the Sangh Parivar in the
ideological, political, social, cultural, economic and other
fields. Ideological
guards cannot and should not be let down. This battle can be
missed only at the Left’s peril.
IV
Regional Parties
and their Role
Regional
parties have acquired an important role in India’s political
scenario. They represent and voice the urges and demands of vital
sections of the people in the particular state/region.
They also articulate the urge for empowerment of the
people of that region. Their
rise has partly to be attributed to the failures of the main
national parties in voicing and fulfilling the legitimate urges
and demands of various sections of the people. Disparity in
development also contributes to this.
There
is the Akali Dal which while voicing the urges of the Sikh
masses, especially the peasantry, openly mixes religion with
politics. There is
the Shiv Sena which like the BJP is committed to Hindutva.
There are others who while being broadly secular, were
driven by opportunism and a lure for power to gang up with the
BJP during the NDA regime.
Some of them do not know how to come out of the NDA
though they would like to. There are the Dravidian Parties in
the South, who have a history of their own but have interacted
with national politics for quite some time.
The TDP came up as a reaction to the ‘Telegu pride’
hurt by the Congress leadership of the day, and as an
alternative to the Congress which had lost support among the
people then.
The
Left should closely watch the developments among these regional
parties and have a positive attitude towards those who are
breaking away from the NDA. We should also watch their approach
towards economic policies.
With
the large mass of OBCs, dalits and tribals being drawn into
politics, and into the vortex of the political struggle for
empowerment, regional parties basing themselves on large
regional caste groupings have also come up.
These parties have one or two numerically powerful castes
at the core, and are able to rally round them other scattered
castes. The
minorities in some states who have felt neglected and only used
so far by the major national parties, have also rallied behind
them in some states and regions.
These parties have been able to dominate the political
scene in a number of states, and brought a sense of pride and
self-respect, a feeling of empowerment among the castes and
other sections, whatever little benefit this has brought to
them. They have
good grass-root base. They
have been able to rally that mass, which is the potential mass
of the Left. Not
having a specific ideology of their own, they are influenced by
the prevalent bourgeois ideology.
It
should not be an attitude of hostility but an attitude of
understanding which can enable the CPI to reach out to the
sections behind them, and eventually draw them towards the
Party. We have to
reckon with the urges of these sections.
This does not preclude criticism of any specific failure
or misdeed wherever these caste-based parties are in power. Our
failure to fight against any manifestation of misrule, and to
lead class struggles as against their caste appeal has cost us
in states where they are in power.
The masses behind the regional parties can be drawn
towards the Party through class and mass struggles, along with
struggle for social justice and upliftment.
We should at the same time take precaution to see that
our ranks and cadres are not infected by caste-based policies of
these parties. For
this their class consciousness and ideological level have to be
raised.
The
regional parties cannot be ignored. They are ruling parties in
some states, and no coalition governments at the Centre can be
formed without their help and cooperation. Some of them can play
a positive role in politics.
The CPI and the Left must assess each regional party with
care. It is true;
initially the CPI has suffered the most with the advent of these
caste-based parties in terms of losing a part of its base.
However we should adjust our attitude towards them looking to
the present and future, and keeping the peoples’ and Party’s interests in mind.
V
Economic
Policies: BJP: Congress: Their Effect
The
economic policy of the BJP/NDA government was one of complete
subordination to the neo-liberal policy of liberalisation,
privatisation and globalisation. It pursued this with total commitment and zeal in the garb of
carrying through ‘economic reforms’.
This philosophy fought for no restrictions on capital,
and on dismantling government control over resources and on
doing business. It
stood for free flow of capital across borders with no tariffs,
unfettered foreign investments, deregulation, privatisation of
state – owned enterprises, tax concessions to big business and
so forth. This was
enthusiastically hailed by Big Business at home and abroad.
It is customary with the Sangh Parivar to talk in two and
more tongues and thus fill both the ruling and opposition space.
They set up at the same time a ‘Swadeshi Jagaran Manch’
which voiced opposition to these policies.
The BJP Government ignored the protest from the ‘Manch’.
Profit-making PSUs were sold for a song and disinvestment of
every Blue-Chip undertaking was very much in the air. They did not even hesitate to sell off water sources
and biodiversity. While old public assets were disposed off,
hardly any new assets were being created.
Neo-liberal theories about the glories of ‘Free
Market’ economy had their enthusiastic converts among
economists, journalists, business circles and political
associates during the BJP regime.
Employees were sent out through VRS, closures,
retrenchments, down sizing and so on.
Unemployment soared to new heights.
The
opposition Congress generally acquiesced with most of these
policies, under the influence of the very same philosophy, of
which it was the initiator. But being in the opposition there
were occasional ‘feeble noises’ about the BJP-NDA rulers not
doing it the ‘right way’.
The
Left alone put up a stiff resistance.
They were branded as ‘out of date’ fellows,
‘conservatives’ who have not learnt to ‘move with the
times’.
In
this economic regime, agriculture and the kisans, traditional
industries and self-employed artisans especially in the rural
areas, were grossly neglected even though an overwhelming 69% of
India’s population depends on agriculture for sustenance.
The states’ investment in agriculture sharply declined.
With it, the share of agriculture in total Gross Capital
Formation (GCF) also sharply declined.
The share of irrigation in total plan outlays came down
to a mere 6.77% in the Tenth Plan, and much of the funds
allocated went to major and medium irrigation while minor
irrigation schemes were not taken up.
Affluent
and well-to-do farmers and also government agencies resorted to
irrigating their fields through tube wells and wells, in an
unplanned way, which resulted in fall in the water-table and
depletion of subterranean water resources. Conjunctive use of
surface water and ground water is the correct alternative.
Droughts took over in many regions with uncertain monsoons, and
the rate of growth in agriculture became negative.
Only in the last year of BJP rule, a very good monsoon
led to a high growth rate, particularly in the background of no
growth in the previous year.
This was torn out of context and tom-tomed as a great
achievement of the BJP government.
Lack
of proper government purchase to assure fair price for local
produce and reduction of subsidies for agriculture, while
opening doors to subsidised imports from abroad led to heavy
distress and indebtedness of farmers and consequent suicide
deaths of thousands.
Small
and traditional industries were also treated in a similar
cavalier fashion, and self-employed artisans were left to their
fate.
Experience
shows that there is a strong link between the lack of road
connectivity and poverty in India.
40% of rural habitations are not connected to all weather
roads. The BJP regime forgot this and only went in for the
grandiloquent ‘golden quadrilateral’ scheme.
Internally,
these policies served the interests of monopoly capital,
bureaucrats, a section of the upper middle class, whose
affluence created among them an attitude of ‘rank
consumerism’. The
gulf between the top layers, - 10 to 20 percent of India’s
population, and the rest 80 to 90 percent grew wide. The BJP saw only the top, and launched their ‘India
Shining’ propaganda blitz, never knowing the misery affecting
the broad masses below.
Externally,
This
was reflected in India’s foreign policy, its subservience to
American Imperialist moves, and downgrading the Non-Aligned
Movement.
The
Indian voter incensed by these policies and their effect on
their livelihood just as much as by the BJP’s communalism,
handed out a defeat to the BJP and its allies. One can see the
opposite of this in the case of Left Front governments.
Achievements of
the Left Front:
The
performance of the Left Front Government in West Bengal,
especially in the sphere of land reforms, ‘Operation Barga’
and panchayat raj has ensured its victory in consecutive 6
elections, at every level. Despite a step-motherly attitude by
the Centre for long, it is at present taking significant steps
for industrial development. There is a concerted attack by
bourgeois sources to slander it, and to bring about its defeat.
These have to be rebuffed. Of course there are shortcomings. But
there is no alternative to Left Front Government in West Bengal
than a “Better Left Front Government”.
In
Kerala and Tripura too, successive governments, led by the Left
have contributed to establishing the credibility of the Left and
their powerful hold on the people.
VI
The Common
Minimum Programme: Its Character
The
new UPA government which has come to power after the polls, had
to work out a Common Minimum Programme, which strengthens the
country’s secular polity, and would undo some of the mess left
behind by the previous regime, correct the distortions and
change the priorities of development. As long as the UPA government implements the CMP and works
within its framework, it will continue to have the full support
and cooperation of the CPI. There shall be no comfort provided
to the BJP by any conflict between the UPA and the Left.
But while stressing and ensuring the implementation of
the CMP as the immediate task in the present situation, there is
need to go ahead with the campaign for a more far reaching Left
Democratic Alterative both in the economic and political
spheres, so as to lay the ground for advance in the coming
period. The CMP is not a Left programme.
The change in direction does not seek to alter the
socio-economic system in any way. There are quite a few gray
areas in the CMP which can be interpreted and utilized by the
champions of neo-liberalism.
Even without that they are at their jobs. On the other
hand there are numerous provisions which are of benefit to the
people. Thus the
fight for the implementation of the CMP is an arena of mass
struggle, of class struggle, for bringing relief to the masses
and for advancing along a democratic path of development, by
even going beyond the parameters of the CMP. It is a struggle
for strengthening the country’s sovereignty and independence
in conducting its domestic and foreign affairs.
VII
India’s
Economy: The Reality
While
speaking about India’s economy ruling circles draw attention
to the figures about foreign exchange reserves, extent of FDI
and FII that have poured in, the point which the Sensex mark has
reached and so on. Foreign exchange reserves have crossed $123 billion; Sensex
have long since crossed the 6000 point; FII will have reached 8
billion dollars by the end of 2004; exports have risen by 24 per
cent, though imports have grown
at a bigger pace; G.D.P is expected to grow at 5.8 per
cent (lower than what was expected); inflation has soared to
nearly 7.5 to 8 per cent mainly due to oil prices.
But these figures do not give the real picture about how
our people live. Official spokesmen continue to speak about
‘economic fundamentals’, claiming they are sound and
healthy. But one
must also speak about the ‘human fundamentals’, which happen
to be grim and gloomy.
In
India, 260.3 million people are still below the official poverty
line. The unofficial figure is quite higher.
These millions go to bed hungry every day.
They do not have sufficient income to meet their daily
food requirement. Having
food stocks or producing more foodgrains will not mitigate their
misery. They need
work, jobs that would put money in their pockets, with which to
buy food on their plates.
This
is not the full extent of poverty in the country. In the first
place, the criteria determining the poverty line is itself
faulty. There are an equal number of people who are supposed to
have risen above the poverty line, but only just above it! They
are to be counted among the poor.
There
is talk of India having achieved self-sufficiency in food. That
is misleading. With
more purchasing power in the hands of these people, and higher
per capita consumption of cereals and livestock products, food
availability will fall short.
Agricultural growth rate has therefore to accelerate a
good deal more, if ‘food security’ for the people is to be
assured.
Actually
there has been a decline in the annual growth rates of both food
and non-food crops over the last two decades. Almost in all
countries, agriculture is subsidised. This is more so in
developed countries than in a developing country like India.
The OECD countries (i.e. the 24 developed countries taken
together) spent a huge $327 billion on agricultural subsidies in
2001. For a
commodity like rice, the support is 80 per cent of the gross
price in the OECD countries.
In the USA alone, the average subsidy per farmer was
30,655 dollar. In
all, an amount of 97.3 billion dollar or Rs. 4,18,400 crores was
paid as subsidy. This was well over the total value of all farm
products in India taken together. Recently, the Bush
Administration further hiked the subsidy by as much as 80 per
cent over the next few years.
This has resulted in a further downward push in the
prices in the international markets. And yet, pressure is being
brought in the WTO on India for reducing the meagre (by these
standards) subsidy that is paid to agriculture, while the
developed world firmly resists doing so in their own countries,
and demands a quid pro quo for even reducing it a bit.
Naturally, our farm products face a devastating competition in
our own domestic market.
Both
public and private investment in agriculture as a percentage of
GDP has come down from 2.2 per cent in the beginning of the
nineties, to less than 1.4 at the end, and has declined further
thereafter.
Agricultural
rate of growth has naturally declined, and became even negative
in the year 2002-2003.The failure of monsoons made it acute.
Agricultural
workers have access to wage employment only for 137 days each
year and the average non-agricultural employment in rural India
is 152 days. There
is a strong co-relation between poverty, wage labour and
feminization of the rural wageworker.
The average wage employment for female is about 15 per
cent lower than for males in agricultural and 18 per cent less
in the non-agricultural employment in rural India. The average wage employment in the countryside is only for
160 days a year. Women are the worst sufferers during drought,
flood or any natural calamity.
Lack of ‘food security’, health security, poverty and
unemployment hit them the most.
These
facts emphasise over again the need for prompt and effective
implementation of the ‘Food For Work’ scheme, and for
passing the ‘National Employment Guarantee Act’ and the
comprehensive Legislation for Agricultural Labour, which find
place in the CMP. In implementing these, the female section of
the population must have their proper share.
Half
the rural population in the country is illiterate. About
40 per cent has extremely low incomes. Only 8 per cent of rural
incomes is spent on health and basic education. No more than 43
per cent of the households have domestic lighting. Only 25 per
cent have access to tap water and a shocking 15 per cent has
access to private toilets. A mere 33 per cent has the
wherewithal to access even the public distribution system, where
it exists.
The
incidence of diseases and ill health, with such grinding poverty
is truly alarming. Four
mothers out of every thousand die during pregnancy, and 67 out
of every thousand newborn babies do not survive birth. Lack of
basic medical facility and primary childcare, totally inadequate
maternity care are responsible for this sorry state of affairs.
The Primary Health Centres haves been ruined.
The mass of poor, especially the rural poor are thus
deprived of any easy access to health care. Private hospitals
and nursing homes are proliferating, while government and
municipal hospitals are in bad shape.
The
Union and state governments together spent only 3.7 per cent of
GDP on education, and 1.01 per cent on health in 2001-02 and
went below 1 per cent in 2002-2003. Commercialisation of
education and health services have made them totally
inaccessible to the mass of our people. The target that has been
fixed in the CMP is to raise expenditure on education to 6 per
cent of GDP and on health to 2 to 3 per cent.
The
issuing of the Patent (Third Amendment) Ordinance, which will be
replaced by an Act in the next session of Parliament, in the
name of meeting the WTO obligations (but actually going much
beyond it), will enable the MNCs to take advantage, and
considerably raise the prices of drugs and pharmaceuticals,
seeds and plants. It
harms our national interests. The Left Parties have vigorously
opposed it, and intend to oppose the Bill in Parliament, unless
suitable amendments are carried out.
Likewise, the ‘Seed Bill’ introduced in Parliament
favours the traders of spurious seed, instead of protecting the
farmers. It
requires change.
VIII
Unemployment, the
Single Big Factor
Unemployment
is the single major factor in India’s poverty and distress.
The measure of its extent can be seen from the report and
study conducted by official bodies some time back.
The composite incidence of unemployment and
under-employment as captured by the current daily status basis,
stood at nearly 9 per cent of the labour force and at almost 13
per cent for the youths. On the basis of past trends, it was projected the composite
measure of unemployment is likely to rise to an average of 11
per cent by the end of the Tenth Plan and 15 to 16 per cent for
the youth.
Rural
employment which was stagnant for a while, is now declining.
The share of the farm sector in total employment has
reduced from 60 per cent to 57 per cent.
Employment growth in public sector and government
departments has sharply fallen, what with VRS, retrenchment,
down-sizing and so on. Private
Sector has failed to compensate this job loss.
While employment in the public sector has gone down by
0.9 per cent during the period 1991-92 and 2000, employment in
the private sector has improved by 0.1 per cent. Public sector
undertakings had off-loaded 20 per cent of the manpower during
this period. Quite clearly, ‘economic reforms’ have meant
loss of jobs, increasing income inequality, and consequent
aggravation of poverty at one pole.
There
is a link between growing unemployment, and increase in the
incidence of child labour in many sectors.
The more the unemployment, the more is the utilization of
child labour. This
is a matter that requires to be addressed from several ends.
Jobless
growth is the new mantra of the liberalisers and globalisers.
They hold out no hopes in the present, leaving it to the
‘trickle down’ theory to promise a better day ‘in the long
run’, i.e. in the
remote future!
Small-scale
sector is a significant source of employment generation.
Government policies aimed against this sector as well as
the self-employed have seriously affected employment, and
brought distress among the large mass of artisans.
It
is admitted that “the trend of a slow down in employment
growth and increase in the incidence of unemployment is of
greater concern, especially if one considers the backward
regions, scheduled castes and scheduled tribes, other weaker
sections of the population including women, as also the youth
and the educated”.
There
is lot of interest shown on ‘outsourcing’.
This can only provide casual jobs to a few lakhs who have
special qualifications. It
is not a substitute for general employment growth in the
country. It should
be noted that ‘outsourcing’ is one way of allowing MNCs to
make super-profits by transferring some jobs to lower-paid
areas. It is export
of ‘jobs-from high-paid areas to low-paid areas.
The
effect of Globalisation has been bad not only for India, but in
most countries the world over.
Not only has it not touched the fringes of the problems
affecting the poor, it has led to greater disparity in incomes,
and an aggravation of poverty. The Human Development Report 2002 of the United Nations says
that 2.8 billion people lived on less than $2 a day, with 1.2
billion eking out a marginal existence at $1 a day. On the other
side, the assets of the top three billionaires are more than the
combined GDP of all the least developed countries and their 600
million people.
The
Human Development report has assessed that India occupies the
124th
place in the global comity of nations.
This is a stark reminder of the low level of various
human indices in India.
Globalisation
is a phenomenon that cannot be warded off.
However steps can and should be taken to prevent the ill
effects of imperialist globalisation. This is an attempt by
imperialist and developed countries to economically dominate the
developing countries and also at the cost of their own working
class. A government that has the interests of the people at
heart has to take appropriate measures for this purpose. There
should be attempts to reach bilateral and zonal agreements on
trade, commerce and other spheres of economic development.
For instance by strengthening SAARC, building good
relation with ASEAN and so on.
A
welcome sign is the growing worldwide movement against
globalisation,— a movement that has brought millions out on
the streets. Rallying
together people of different ideologies, from all continents,
they have spoken out against the evil of imperialist
globalisation, and against the inevitability of what that brings
to the people. Out
of their life experience they have come up with the optimistic
idea: Another world is possible! We have to align
ourselves with this idea, and try to give it a clearer
perspective,— a scientific basis, with our Marxist world view.
Imperialist-driven
globalisation benefits the few, against the many, who are cast
aside, marginalized. It
is aggravating disparities between people, and between
countries. With each day, it is sowing the seeds of tension and
conflicts, which may burst out in acute form in the future.
Unemployment
and inequality has grown in all regions of the world during this
period. It shows
that the present much-vaunted ‘capitalist order’ is
incapable of solving people’s basic problems.
IX
The Rosy Picture
Painted by Official Sources: Its Critique
Official
spokesmen ignore all these microeconomic indicators which show
how our people live. They
give reports which invariably paint a rosy picture of the
national economy. They
feed us with some macroeconomic figures. Thus, we have been told by the Finance Minister that the
economy is buoyant with only fiscal stress and with revenue and
fiscal deficit not measuring up to the stated targets.
They flaunt the so-called mandate imposed by the Fiscal
Responsibility and Budget Management (FRBM) Act, which can serve
as a ground for cutting down on necessary subsidies and
social security funds, as well as restricting and even
denying funds for measures like employment guarantee etc.
This is an attitude of fiscal fundamentalism.
The
Government review takes credit for a GDP growth of 7.4 per cent
in the first quarter of the current fiscal against 5.3 per cent
in the same period of last year, agricultural growth in the
first quarter at 3.4 per cent against 0.1 per cent, the index of
industrial production (April-September 2004) at 7.9 per cent
against 6.2 per cent in the comparable period of last year,
export growth at 24.4 per cent in dollar terms against 8.8 per
cent and import growth at 34.3 per cent against 21.4 per cent,
and so forth.
However,
these bright figures are not reflected in the common man’s
life. Prices are
running high – inflation being in the range of 7 to 7.5 per
cent, and all manner of deprivations continue.
Even though inflation rate is going down, prices of
essential commodities continue to rule high, - sugar price being
as high as Rs. 20 to 22 per kg. Such a demand as 9.5% interest
on GPF, which will benefit 3 to 4 crores of subscribers and
their families and which will be only 2 to 3 per cent more than
the inflation rate is not accepted by government.
To
achieve a GDP growth rate of 8 per cent in India, it is
necessary to ensure a growth rate of 3 to 4 per cent in
agriculture, an industrial growth rate of about 10 per cent, and
a growth rate of 8 to 10 per cent in the services. This calls
for appropriate policies and mobilization of resources.
Priority
has to be given to Agriculture and Rural Development. The CMP
has indicated specific proposals for this sector. They need to
be sincerely implemented. This requires that
kisans and agricultural labour
are organized and mobilized for struggle on each of the
proposals. The
momentum of the movement must take it beyond the parameters laid
down in the CMP. Focus on agriculture, rural development and
elimination of poverty and funds spent on them, is not an
obstacle to growth, as this will help to increase demand in this
vast sector (70 per cent of our population) which in turn will
raise industrial demand.
Industry
has to take the lead in development. The public sector has
played a significant role in India’s industrial development.
Certain faults and shortcomings have crept into it.
They undoubtedly call for serious corrective measures and
reforms. But the
liberalisers and privatisers are using the failures to launch a slanderous attack against the PSUs as a whole.
They want to do away with them.
The bourgeois government must be forced to take a proper
view on the public sector.
According
to the Department of Public Enterprise, the 230 PSUs in 2001-02
made a net profit of Rs. 26,045 crores, registering a return on
investment of 16.21 per cent. Investment
in that year was Rs.324,632 crores and their net worth was Rs.
232,265 crores. Their foreign exchange earnings by export of
goods and services were Rs. 20,866 crores. Contribution to Central Exchequer by way of excise, customs
and tax etc. was Rs. 62,753 crores.
A 77 per cent increase in net profit was shown by 166
PSUs during the first half of the fiscal 2002-03.
In that period 150 PSUs made a loss of over Rs. 10,000
crores. Such are
the facts. The
public sector in India retains the potential of motivating and
driving the over-all industrial development.
Therefore, moves which are meant to emasculate them, to
transfer ownership through direct sale or disinvestment, or
diluting equity to dangerous limits, to deliberately make them
sick, and so forth have to be rebuffed.
Growth
in services is a positive factor. But one cannot ignore
industrial growth and hope to ride on the back of the service
economy.
At
the same time, in order to accelerate development, and build up
and expand the productive forces of society, every step has to
be taken for expansion of the private sector, the cooperative
sector, the self-employed sector, the FDI sector and so on.
We
are not opposed to FDI and invitation to foreign capital per se.
We require it for our development. But this should be in
spheres of our choice, our needs, for fresh investments rather
than for acquiring control over existing undertakings and in
sensitive and core sectors, which can jeoparadise our own
economy and our security. They
should add to our productive sources, and create new job
opportunities, rather than take them away.
It
is mainly by increasing our domestic savings, by
mobilizing our rich domestic resources, that we can basically
advance our development. FDI,
Foreign Capital can only supplement these efforts.
This has to be done, by raising our revenues by raising
taxes on corporate houses, on affluent institutions and
individuals, on unearthing black money, realizing the so-called
Non-performing Assets, the income tax arrears and defaults etc.
There is enough resources
available if we tap them, and not allow the defrauding of public
exchequer by certain corporate houses.
There cannot be a policy of ‘sops for the corporate
sector, and higher impositions on the common man’.
Further,
both in the interest of employment generation and export, it is
necessary to recognise that the small-scale and self-employed
sectors have an important role to play in the country’s
development. A move
is afoot to invite MNCs and foreign capital in the retail trade
sector. This is a
harmful step. It
will destroy the chain of retail shops etc. that serve the
people, and deprive millions of their jobs and source of
livelihood. Retailers
and those in the small scale sector are our potential allies in
the democratic revolution.
We have to stand up for them.
It
is not enough to talk of development without its social
objectives. It is
necessary that the less privileged and disadvantaged sections of
our people benefit out of the development.
They must be involved and drawn into the development
process. It must
touch and improve their lives.
Only then it is growth with social justice. It is at the
grass root that the impact of development must be seen and felt.
In
this context there has arisen the justified demand for
reservation of jobs for scheduled caste and tribes in the
private sector, — firstly, to ensure it in those undertakings
which have been privatised from their earlier public sector
status, and secondly, to explore juridical means to introduce it
also in the private sector.
For this a dialogue should be initiated in right earnest
with the captains of industry and their various organisations.
As the main productive force of society, the contribution
and place of these sections in moving the wheels of economic
development should be recognised.
There
is frequent talk of ‘labour reforms’ as a concomitant of
‘economic reforms’. The
talk of labour reforms precisely means that development should
be at the cost of labour, by depriving labour of elementary job
security, and so forth. It
is good that the CMP has taken a stand against it.
But nevertheless it is taking place in various ways.
There is a sword hanging on employees in the ‘Special
Economic Zones’ where no labour laws will apply. Vigilance has
to be exercised by workers’ organisations, so that the workers
are protected.
X
The Alternative
Path
There
has been a growing demand for an Alternate Path of self-reliant
and sustainable development and growth with justice based on
India’s specific situation. The CPI at its 18th
Congress had boldly indicated in its Political Resolution what
should be the elements of such an Alternative Path. The Common
Minimum Programme has included some of the provisions, which if
sincerely implemented can bring about a certain departure from
the disastrous path followed by the NDA regime.
But it obviously does not go far enough.
The Alternative Path suggested by the Party in the
interest of the democratic development of India’s society
should stress certain features.
A few of these are:
*
Land reforms, which implies distribution of all
ceiling lands, bhoodan land and government waste land to the
landless must have top priority.
The possibility of lowering ceiling in areas which are
coming under irrigation should be explored. Suitable
legislations, if necessary be enacted to achieve this.
But the main thing is to struggle for it by mobilizing
the landless. All attempts to do away with ceiling laws or
bypass them through lease and contract, corporatisation, farm
houses transgressing into agricultural lands etc. should be
firmly opposed.
Capitalist
relations have largely penetrated into agriculture.
But there are vast regions, especially in the Hindi belt,
where the old feudal relations, landlordism, and religious
institutions continue to exist and hold the peasants in bondage.
They have large landholdings in their possession. It is land
redistribution which will strike a blow at the social, economic
and ideological base of landlordism of the old type. It would rouse the potential of the basic rural masses and
revitalize our rural scene.
Minimum
wages and social security to agricultural workers and poor
peasants have to be assured.
They have to be freed from usury and indebtedness,
through comprehensive legislation. For this a national drive
must be launched against money lenders for enforcing the legal
rate of interest. Simultaneously
a social security law for the vast mass of unorganised labour
has to be worked out.
Attempts
to oust and evict the tribal people and other forest dwellers
from so-called forestland should be militantly resisted.
In fact they are not the destroyers but ‘protectors’
of the forest. They can be relied upon for afforestation and for guarding
it. Land pattas
should be given to the adivasis and dalits, the landless who are
tilling the land in such areas.
Based
on land reforms, agricultural development should be
undertaken through increased public and private investment and
more budgetary provision for agriculture, completion of all
existing irrigation projects, utilization and expansion of water
resources, water harvesting and repair of nearly 500,000 water
bodies which are in disuse; road connectivity and creating
assets through an expanding rural employment guarantee; assuring
remunerative prices for produce by fixing minimum support prices
and providing for government purchase; taking steps for raising
agricultural production and productivity through application of
research and experience in use of seeds, bio-fertilisers, use of
power, consolidation of holdings giving preference to small and
marginal farmers, grant of subsidy where necessary and ensuring
that it reaches the peasants.
The
overall objective should be to improve the quality of life of
our rural masses and increase the purchasing power of our
toiling peasantry, so as to reverse the trend of demand fall
which is affecting our industries and other sectors as well.
This will considerably expand our domestic market and
enhance our domestic resources. It will help reduce the
migration from the rural areas to urban centres.
The
benefits of all welfare and development programmes should reach
all sections of our people, especially those at the bottom,
development cannot be at their expense.
Water
management
is a key issue in agricultural and rural development.
Flood prevention-cum-irrigation-cum power generation
schemes, digging and desilting of ponds and rivers, harvesting
of rain water, recharging underground water, provision of
drinking water in all villages, etc. have to be undertaken.
For this urgent job thousands of workers have to be
mobilized. Facilities
and permission given to MNCs. to take hold of our water
resources, which are commercializing these for profits, should
be forthwith terminated.
The
job of the kisan sabhas, khet majdoor unions, youth and
women’s organisations in the rural areas is thus well cut out.
A
crucial task in democratic development is to take urgent steps
for universal elementary education as also scientific and
technical education, secular in content and form and which will
inculcate a scientific temper without which it is foolish to
think of a modern, developed India competing with other
developed countries.
A
comprehensive health and education programme, mobilizing
tens of thousands of doctors, nurses, health workers and
teachers for the job, is a necessity.
Education and health care are not costs or a drag on the
budget, but investments for development.
A
system of subsidies has to be introduced which protects
the livelihood of the poor, especially those below the poverty
line, encourages productions, reduces cost to the producers, and
helps competition with other countries.
Development
implies that the contribution of industry, of manufacturing
followed by services should relatively increase in the GDP.
This implies that the public sector should be reformed,
and consolidated, while all help and encouragement is given to
the private sector to grow and expand. While stressing every means to generate domestic resources,
foreign capital and necessary high tech has an important
supplementary role to play in India’s development, in building
its productive forces. FDI
should be in fields that are needed in our national interests.
We need FDI and do not shut our doors to its entry,
except in sectors essential to our security and economic
sovereignty.
All
encouragement has to be given to small-scale,
self-employed, traditional industries, and independent artisans,
as these generate vast employment opportunities.
Employment generation has to be a priority task in
adopting an alternative path of development.
Rural Employment Guarantee does not solve the issue of
employment, though it has to be so modeled as to create assets
while giving employment to those who are without employment.
To generate employment there has to be a vast expansion
of education and health services, absorbing several hundred
thousand teachers and health workers.
The artisans, the self-employeds have to be given loans,
access to raw materials and markets etc.
The problems of the urban poor have also to be attended
to.
All
facilities should be provided to the slums in cities and urban
conglomeration. They
should not be demolished without first rehabilitating them on
alternate land.
Serious
attempts should be made to curb wasteful expenditure, and
enhance revenues, by enhancing the tax base, raising these on
the affluent and corporate houses, recovering the huge
Non-performing Assets, and Income Tax arrears, checking black
money etc. Corruption must be fought.
State
cannot abdicate its responsibilities in all these spheres, as
the liberalisers and ‘free marketeers’ would want it to.
State intervention in developing infrastructure,
in allocating resources, and in regulating the marker forces, is
very important.
A
necessary condition for development is to develop our foreign
trade. Today
India has less than 1 per cent of world trade.
Stress has to be given to diversify our trade, mainly in
the Asian, Latin American and African countries.
At the same time we must concentrate on our regional
groupings. India is
at the centre of the SAARC and a very close associate of the
ASEAN. All
political and economic obstacles to develop trade in the SAARC
region, which continues to be the area of greatest poverty and
backwardness with only relative differences in level between
countries have to be removed.
For this, there should be frank dialogues with the
countries of the region. The SAARC and ASEAN regions contain the
greatest resources and potential for growth.
They also contain the largest land mass and the biggest
concentration of population.
The SAAFTA needs to be activated.
Within
the WTO, every step should be taken to consolidate the G-20,
led by India, China, Brazil and South Africa.
To deal separately with the European Union and the USA
within the WTO is to lose out in the bargain. The need is for
these developing countries to unite, and if a country of more
than 100 crores like India stands firm and takes the lead the
other countries will also stand up together.
The
alternate path we propose will conserve and rejuvenate the
environment and eco-system, protect and enrich our cultural and
social diversity, generate employment and above all keep man in
the centre of the development process.
These
are the main spheres for striking out on an Alternate Path for
Development. Implementation of the CMP is the beginning.
The above economic tasks indicate the path of further
advance, beyond the CMP.
A
turn towards this direction is only possible through mass
struggles of workers, kisans and agricultural labours, engineers
and technicians, youth and students, women, teachers and
professional sections of the population, through their
organisations. It
is necessary to raise these struggles to a political level,
through an ideological-political campaign.
This will become the battlefield of change and
transformation, with the perspective of a change in the
correlation of class forces.
Campaigns, movements and struggles by the toiling masses
are the keys to advancing towards an alternate path.
XI
The International
Situation
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