Why is the Left opposed to economic reforms?
Why is the Left opposed to economic reforms?
Reform is the new liberal economic philosophy worked out by the IMF and the World Bank which is imposed on countries irrespective of their socio-economic condition. Those opposed to it are termed conservative and status-quoist. We want India to develop fast, solve problems of poverty, unemployment, illiteracy and health, and compete with the rest of the world. But 50 years of Independence has not solved any of these problems. This includes five years of radical reforms.
What, then, should be the approach of the reforms?
Reforms are necessary. But development or growth should be with social justice and deprived sections should be the subject and not merely the object of such a process. We stand for a model of development based on self-reliance and mobilisation of the tremendous natural and human resources of India. We don't oppose foreign investment or even multinational cor porations, provided they are only supplementary to our efforts in fields where we lack technology and resources.
Reforms have to conform to both planning at the Centre, state and district levels as well as the play of market forces. The market won't decide development though it has a role to play in balancing demand and supply, determining consumer choices and fixing price levels. There has to be state intervention in removing poverty, creating jobs, eradicating illiteracy, and developing health care. Thus, a different reform model has to be designed.
What kind of consensus is there within the UF on reforms?
Within the Front, the Left and the other constituents do not share the same view on economic policies. There is a consensus that the old economic policies were pro-rich and there should be a change in the direction to make them pro-farmer and pro-poor. But on the details concerning PSUs, foreign investment and taxation policies, there are differences with the Left and, sometimes, conflicting perceptions. The Left doesn't see eye-to-eye on the Disinvestment Commission or bringing in private/foreign companies in the insurance sector or equity participation norms.
What happens if the Government does not change its policies?
We think eventually the Government will alter its policies or else we will be forced to agitate. The right to mobilise, agitate and build up public pressure is a fundamental right of mass organisations and political parties, irrespective of their participation in the government.
What is wrong with disinvestment and closure of sick PSUs?
Emphasis has to be on reviving and mod-ernising the PSUs rather than disinvesting or dismantling them. Certain PSUs might have to be closed down because they cannot become viable. But in that case, the Government should identify such PSUs and discuss the cases with the trade unions and financial institutions on its implications before taking any decision.
Why is the Common Minimum Pro-gramme, especially its economic points, a contentious issue?
The CMP is a response to the situation and the correlation of prevailing forces to it. It's not a Left programme. Though the CPI is an important constituent of the Front and two of its leaders hold key portfolios in the Government, it has the freedom to express its views and agitate on what it doesn't agree with. This is because we have a separate entity and our policies and responses are not decided by the Deve Gowda Cabinet.
Are the Left parties united on the contentious issues?
The four Left parties share a common view regarding their stand on the reforms and will continue to do so inside or out of the Government. We have opposed privatisation of insurance and disinvestment of profit-making PSUs and we have a consensus on this.
How are the Gowda-led reforms different from the Rao-led reforms?
The UF's reforms are different from the Congress-led reforms primarily in its target. The earlier reforms were targeted at the elite, the present have the poor in mind. Though the mindset of several ministers with economic portfolios are rooted in the old regime, they, being signatories, are committed to the CMP.
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