Tactical Retreat?

THE Left parties upped the ante, literally forced the United Front (UF) Steering Committee meet on November 20, and went the whole hog for four hours, saying exactly what the Government, and in particular Union Ministers P. Chidambaram and Murasoli Maran, were doing wrong. Yet, it was the Left leaders, and not the pro-reformers within the Government, who came away from the meet looking like losers. Or what could be worse, spoilers.

Notwithstanding the ‘satisfaction’ expressed by the CPI(M)’s H.K.S. Surjeet and the CPI’s A.B. Bardhan after the meet, the lack of specific assurances on the economic issues which the Left had raised was only one aspect of the jostle by the Left to distance itself from the UF on the economic front. The meet was simply a high-profile manifestation of this attempt. The issues of contention were plans to open up the insurance sector to private and foreign investors, raising the foreign equity limit, the disinvestment in public sector undertakings (PSUs) and the alleged non-compliance of the Government to the aims of the Common Minimum Programme (CMP) to reform PSUs.

Meanwhile, by agreeing to fall into what some Left supporters were convinced was a grand plan to expose the pro-reformers, Industry Minister Maran, Finance Minister Chidambaram and Prime Minister H.D. Deve Gowda redeemed themselves as mature coalition politicians. "There has been no deviation from the CMP and we were able to convince our Left allies of it to a large extent," a senior Janata Dal leader who participated in the meet told Outlook.

All the UF constituents are aware that the dispute is as much over political issues as over economic ones. While Chidambaram has since denied it, the Tamil Maanila Congress (TMC) "mini mahanadu" on November 19 at Erode did send out the clear message that if the Left continues to criticise all aspects of economic reforms, the party may review its support. And with the return of the G.K. Moopanar-led TMC (and maybe, by extension, the DMK) being the final aim of Sitaram Kesri’s Congress unity efforts, some UF leaders feel that the TMC may be preparing for an eventual parting of ways.

The Left leaders have their own rationalisation. "It is not a question of being completely satisfied; this is not a communist government," asserts CPI National Secretary D. Raja. "But the point is that the Government reiterated its adherence to the CMP and clarified its stand on a number of issues shrouded in ambiguity. And the people were assured that there would be no reforms through the backdoor." But was it worth it? For all the denials and explanations, the Left parties made sure that the Steering Committee meet was attended by their top brass—ranging from West Bengal Chief Minister Jyoti Basu and Union Home Minister Indrajit Gupta to the general secretaries of the CPI and CPI(M), Bardhan and Surjeet, respectively. Even Kerala was represented by its finance minister.

Says a CPI(M) politburo member: "Our intention was to show that we are serious about these economic issues and that our support to the UF is on the question of secularism and not for the continuance of the policies of the Narasimha Rao government. Our ‘upping the ante’ was only a political expression of our strong belief that mindless liberalisation is not the answer to India’s economic woes." Other Left MPs such as M.A. Baby of the CPI(M)and Gurudas Dasgupta of the CPI were adamant that issues such as the alleged FERA violations by ITC and other blue-chip companies and attempts to open up the insurance sector would be raised by them in Parliament.

But the specific issues raised by the Left at the meet and the responses to them were eye-openers. Perhaps nothing symbolises the predicament of the Left more than Chidambaram’s criticism of the perception that foreign investment swamping India would threaten the nation’s sovereignty. And his insistence that, however marginal, foreign investment was essential for the growth of the Indian economy. "Once Chidambaram had politely explained this to the Leftists, they calmed down. Though it was a bit surprising that Surjeet still mentioned the fact that our reforms had not attracted foreign investors. A bit of a contradiction," said a participant in the meeting. To which Chidambaram replied that, in fact, the investment had been marginally more this year as compared to the corresponding period last year.

Maran clarified that his approach to strengthening the PSUs was in accordance with the CMP and that all proposals for disinvestment would be referred to the Disinvestment Commission. As for Government plans to open up the insurance sector, the finance minister promised a regulatory body along the lines of the Telecom Regulatory Authority of India.

The Left was said to have been offered the sop of a Rs 1,000-crore subsidy on the Public Distribution System to enable rice and wheat to be supplied at half price to those below the poverty line, but this was a concession that Gowda himself was reportedly keen on. As for the longstanding demand of the Left parties that the Steering Committee form a sub-committee to monitor economic issues, all Surjeet said was: "It was not possible to raise this demand because we were concentrating on Government policy deviations." On other issues, all the CPI(M) general secretary stated was: "There is no point in raking up the past." 

But then these "tactical retreats" are essential for the Left, which has carved out a pivotal role for itself since the last parliamentary polls were announced, as it does not want to rock the boat too much. Otherwise, the aim to contain the BJP will lie in a shambles. But the Left has to address the concerns of its constituency. According to a senior Left leader: "Our aim is not proselytisation but consolidation. While ensuring that a secular and a pro-Left group (at least compared to the others) remains in power." In which case, the Left can be sure that there will be more retreats, tactical or otherwise, that it will have to make.