Post-Independence Developments
2.1 During the British rule Indian economy remained backward; it was dependent and colonial in character. But imperial interests dictated the need for a certain measure of capitalist development though superimposed on a feudal-landlord base in the country. An industrial bourgeoisie thus came into being by the end of the Second World War. There was concentration of capital in some spheres, and certain growth in banking. A few influential monopoly groups also grew in the ranks of the Indian bourgeoisie. A number of undertakings belonging to the British groups were bought out by this section of the bourgeoisie from the profits made from war supplies to Britain. The Indian Railway system which the British government had already taken over from private British investors came into the hands of the government of India after Independence with the sterling reserves that had accumulated to the credit of India. Nationalized railways became the first item to mark the beginning of the state sector in Independent India.
2.2 During the national liberation movement democratic elements, inside the Congress and far-sighted representatives of the bourgeoisie; as well as leaders of the Communist movement and the working class movement had advocated a broad policy of industrialization in order to overcome the colonial backwardness of India. The struggle for development of economic independence was necessary to strengthen the political independence that India had won. This was against the interests of imperialism. In order to expand the internal market and to mobilize capital resources it was also vitally necessary to carry out a certain measures of land reforms and restrict feudal relations in agriculture. This came in conflict with the interests of the landlords and princely houses. It had to be anti-feudal in its direction. The demand had emerged during the national liberation movement itself. However the bourgeois leadership was not prepared to carry this out to its logical conclusion. It displayed strong vacillations and compromising policies on vital aspects which signified a retreat from the programme of the national liberation movement.
2.3 Encouraged by the vacillations and compromising policies, the imperialists tried to keep the Indian economy tied up to imperialist finance capital through offers of "aids" and schemes like the Colombo Plan. This proved illusory. In the meanwhile the socialist world had made tremendous advance and was prepared to give selfless help to India's aim of independent economic development. The growth of the democratic movement and its demand of economic advance made the government to mute its vacillations and establish contacts with the socialist countries and to formulate policies accordingly. Measures which reserved certain strategic industries for the state sector, and undertake certain measures of nationalization helped to mobilize internal resources for planning growth and gave government a grip over the finance. This initiated the establishment of state sector industries. These measures obviously did not concur with the policy of the imperialists. They were also not to the liking of the top monopoly groups of the Indian bourgeoisie who shortsightedly wanted the state sector to be restricted to defence industry, transport and public utilities, leaving the whole field of industries free for the private sector. Actually the growth of the public sector helped the growth of the private sector.
2.4 The Soviet Union and other socialist countries extended a helping hand to India in building heavy and strategic industries. Such help was without any strings, was efficient and cheaper and the know-how and technical training were given to our workers without reservation. New branches of industry and projects which emerged as a result of socialist aid have gone a long way to eliminate the legacy of the colonial past and reduce India's dependence on the capitalist world market for trained manpower, materials and machinery. All this was however within the limitations of the capitalist path of development, and with government policies which were inhibited by the narrow class interest of the bourgeoisie. Development has been a slow, halting process, extremely painful for the masses in terms of their sufferings and resulting in a measurably low rate of economic growth. Land reforms were also sabotaged due to bourgeois government's compromising with landlord elements in the country. Therefore the internal market did not expand to the desired extent. The obstacles that stand in the way are precisely because of the capitalist path pursued by the bourgeois - landlord dispensation at the helm of the state, which in addition to its compromise with semi-feudal elements, also has links with foreign monopoly capital.
2.5 The public sector in the country's economy is nothing else but state capitalism. This development of capitalism since independence suffers from all inherent and inevitable contradictions, crisis and serious limitations of the capitalist system and its basic laws.
2.6. The bourgeoisie draws the resources for industrial and economic development of India by laying increasing burden on the common people, mainly in the form of growing indirect taxation, inflation, fleecing the peasantry through the market, intensifying exploitation of wage labour etc. In particular, the failure to unleash the initiative of the peasant masses for an upsurge in agricultural production through radical land reforms and all-round 'agrarian reform is one of the major factors contributing to the low rate of growth of national economy. Therefore there is increasing contradiction between growing industrial production and low purchasing power due to impoverishment of people. It tried to expand by inviting foreign private monopoly capital in partnership with itself. Through such collaboration agreement foreign monopoly capital seeks to penetrate and influence India's national economy including the state sector.
2.7 One of the most striking result of the path of capitalist development is the concentration of capital with economic power in the hands of a few big monopolies who enrich themselves at the expense of the people and even the other broad sections of the Indian bourgeoisie. These monopolies represent a combination of industrial, banking and marketing companies. The big monopolies who have grown into specific corporate entities not only hold strong positions in their own private sector but also have infiltrated into the state sector and use "public money" for their own aggrandisement and maximum profits. They aggravate the economic crisis by fostering price rise, corruption, hoarding and black marketing.
2.8 In the political sphere they seek to consolidate right reactionary forces in the country, encourage the communal parties, influence the ruling party for their narrow class interest, unleash an offensive against all progressive policies and mount offensives to disrupt and defeat the democratic forces.
Driven by the big bourgeois interests the government even discriminates against and neglects the small-scale and tiny industries, and repeatedly withdraws several items from the list reserved for the Small Scale Sector. It repeatedly redefines the criteria for SSI with a view to accommodate the interests of the big sector. The small-scale and tiny industries play an important role. They claim to contribute 40% of industrial output and about 35% share in exports. They employ about 20 million workers. Government has also lifted the cap on the FDI in the SSI sector. This will enable foreign capital to take over many small-scale units, particularly those which are hi-tech, in the name of technology transfer. There is a growing contradiction between this section of the bourgeoisie and the corporate and big bourgeoisie.
They seek to subvert the foreign policy of Non-Alignment and Peace and give it a pronounced pro-imperialist, specifically pro-US orientation.
2.9 From the late eighties and nineties, a new set of policies of economic liberalization is being increasingly pursued. They have now crystallized into the policy of 'neo- liberalism' boosted as 'economic reform'. Following the demise of the Soviet Union and the collapse of the socialist countries in East Europe imperialism headed by US and their international agencies such as IMF, WB and newly established WTO have stepped up their offensive for a "Free Market Economy," for carrying through Liberalization, Privatization and Globalization.
2.10 The constant refrain that is heard today is 'privatization' in all spheres of economic and even cultural and social life. It has become a dogma, an article of faith with the ideologues of 'free market'. In pursuance of this policy several public sector undertakings have been dismantled and privatized by selling government equity in them. Even the equity in nationalized banks is sought to be brought down, as a prelude to their ultimate privatization. Corporate Houses and Big Businesses are being invited to open new banking concerns. It has come up against serious obstacles, first and foremost due to the bank employees' determined resistance and the Left parties' vigorous opposition. They are now touting a new concept, viz. 'Public Private Partnership' which is actually a public mask for private aggrandisement. In their craze for privatizing the financial sector the government has failed to recall the bitter lessons of bank failures in the US, Germany, England, and other developed capitalist countries. A serious financial crisis overtook the capitalist world from 2008, which brought on a deep economic depression that continues to this day. If India's financial sector survived this onslaught, it was primarily due to the financial sector in the country remaining in the public sector. However the bourgeois government in India persists in its drive for privatization. While in the West they are talking of state regulation and even buying up of equity, government talks of giving licenses to Business Houses for launching private banks. India and China escaped the severity of the world capitalist financial and economic crisis because they were in a way uncoupled from the US financial empire. But now with huge exports tied to the western markets which are not showing healthy signs of recovery, they are liable to be affected.
2.11 Liberalization has meant 'free trade' under the WTO regime. While the imperialist and developed capitalist countries have forcibly prised open our markets for their goods and for acquiring a grip over our raw material resources they have themselves taken care not to reciprocate by opening their markets by brazenly mounting several non-tariff barriers against the developing countries. In its eagerness to woo foreign capital, the government is even discriminating against our own industrial structure particularly in the public sector. This is a process of guaranteeing private profits at public risks.
The people are treated to a lot of propaganda about "Free Market' and 'Competition' as the desirable goals of modern economic and social life. It is true developing capitalism in the earlier phase fought vigorously for free market so as to remove all obstacles to the free flow of capital and commodities. But experience shows that competition gave rise to the gradual concentration of production on a large scale, which at a certain stage of development led on to monopolies and corporate entities. It continues further through a series of mergers and acquisitions, pirating of equity shares in order to gain effective control, cartel arrangements for sharing the market, collaboration agreements between MNC's and local monopolies. The rise of the MNC's is a feature of monopoly growth based in the most advanced capitalist countries.
2.12 There is a virtual competition among the developing countries including India for attracting FDI. With the 'open door' policy and the red carpet treatment meted out to foreign investors specially the MNC's, what is missed is that the bulk of FDI is determined by the search for natural resources and markets, such that the labour cost -differential makes it more profitable to invest rather than export commodities from the home country. Some sections of the local bourgeoisie in the developing countries whose interests are hurt have no choice but to cry out for a "level playing ground", that is to say, ask for similar concession and facilities for themselves. This is sowing the seeds of contradictions between the local bourgeoisie and the bourgeoisie of the advanced capitalist countries notwithstanding the collaborationist role played by the monopoly sections aided and abetted by the government. There are some Indian corporate houses which have grown to such an extent that they are aspiring to become world players, and have even managed to become so.
The CPI does not oppose FDI under all circumstances. To make up the need for capital investment, foreign capital, whether from the U.S. or any other country is welcome if it helps the growth of productive forces, brings in new and advanced technology and opens up fresh avenues of employment. But moves by government to invite FDI in retail trade has to be firmly opposed as it will cause large scale displacement of more than 4 crores of people (along with their dependents), throwing them out of their livelihood, nor will it bring worthwhile new technology. We oppose FDI in banking and insurance, as it will mean foreign control over our financial sector.
2.13 The inclusion of agriculture and food in WTO negotiations has specially hit hard the Indian farmers. The impact of Dunkel on our agriculture, specially on the poor-resource farmers is extremely harsh. Its impact on the food market due to obligatory imports and exports, and the control which the developed capitalist countries exercise on the gene sequences, micro-biological resources and genetic engineering, or on the preservation, sale and free exchange of seeds etc will have far more significance here and can prove disastrous for the whole country. For a vast country like India attaining self-sufficiency in food is of utmost importance. Drawing food into the world market and allowing the food MNC's to acquire a strangle-hold over this market has serious consequences.
2.14 The monopolizing of innovations and technology has reached a stage that "Intellectual Property Rights" (TRIPs) has been mandated to an international treaty. Hitherto in our patent laws we had tried to balance the interest of patent holders with public interest. But under the new patent regime it will be difficult to ensure the primacy of the public interest. Patent holders are often the multinational corporations.
2.15 The Structural Adjustment Programme, the Dunkel treaty were both latest ploys of imperialism. "Market fundamentalism", monopoly of high technology, grip over communication and media, international trade dictated by the WTO regime are all weapons pressed to that end. This is imperialism in the epoch of the scientific and technological revolution and the rise of International Finance Capital. It is nothing but an attempt to prolong the crisis-ridden world capitalist system through an offensive against the working people in each country and against the people of the Third World in general.
Times have changed indeed but imperialism continues to be a threat no less than before. The task is done in more sophisticated form, making the task of fighting them many times more difficult than before. However the task of fighting imperialism remains a priority for carrying forward the democratic revolution.
2.16 This neo-liberal globalisation is widening economic inequality, generating poverty, debt and unemployment. The US and the IMF are pushing India for capital market liberalization. It has been shown by the experience of the 'East Asia Crisis" more than a decade back that capital market liberalization brings instability and a crippling financial crisis. India should rebuff such pressure. The Indian people have to participate actively in the growing worldwide movement against "globalisation'. This movement had correctly highlighted that with 'globalisation' poverty does not decrease. Inequality actually rises. Disparities among and within countries continue to grow. The richest people in the world and in each country corner the wealth and the vast mass of people are left without means for their bare existence. This state of affairs cannot be accepted. We have to fight to change it.
2.17 Following the demise of the Soviet Union the capitalist powers led by the U.S. pronounced that "socialism is dead; It is the 'end of history; Capitalism is the only viable social and economic system". Actually capitalism including its latest variant of neo-liberal capitalism, so-called 'crisis-free capitalism' has not only sunk into a deeper crisis than ever, but has also failed to solve the problems of poverty and unemployment. Rather, these problems have been further aggravated, both in relative and absolute terms, as can be seen from these facts:
2.18 The world capitalist system is now gripped by a deep financial and economic crisis. Despite all bailout packages liberally handed out by bourgeois governments to the corporates, recovery is very slow and tardy. It is a crisis of the capitalist system, and not a manifestation of any mismanagement, or aberration of the system in this or that country. Capitalism can no longer find a solution to the main contradiction that afflicts it, - the sharpening contradiction between the social character of production and the private nature of capitalist appropriation.
2.19 The competitiveness between the most advanced capitalist economy, the USA first and foremost, and the emerging economic powers, such as China, India, Brazil, is intensifying. The correlation of forces is changing and new realignments are coming up. With deepening crisis the political system of capitalist countries becomes more reactionary and more repressive.
2.20 Faced by growing unemployment corporate greed and widening inequalities, masses of people in many countries are corning out on the streets, abominating capitalism and demanding a change even though many are not yet clear what or how.
2.21 Economic growth measured in terms of rise in the GDP, in national income, in per capita income hides the actual economic inequality that exists within the country, the yawing gap between those at the top who are rolling in wealth, and the vast majority at the bottom that is wallowing in poverty. To calculate the per capita income among such unequal incomes and suggest a rise in general prosperity is to mock at poverty and divert attention from it.
Bourgeois governments, repeatedly speak of development as their goal. But economic development implies that along with growth there are positive changes in the distribution of the fruits of that growth, as well as changes in the economic structure itself. Development must mean growth with equity and justice. It must mean satisfaction of the basic needs of the mass of people as a matter of priority. Those who sidetrack this issue are the votaries of the notorious 'trickle down' strategy.
The total number of people in India belonging to the poor and vulnerable group having a daily per capita consumption of less than Rs. 20in 2004-05 is 836 million, constituting about 78 per cent of our population. Since then the number has grown.
About 88 per cent of India's SCs/STs belong to this group of poor and vulnerable. Similarly about 85 per cent of all Muslims other than the SC/ST and 80 per cent of all OBCs except Muslims are poor and vulnerable living below per capita consumption of Rs. 20 per day.
Those who are poor are also illiterate and poorly educated. They also account for 79 per cent of the unorganized workers with informal and casual employment with no job security, social protection or minimum wages and working in abysmal physical conditions. Poverty, unemployment, illiteracy or poor education go together.
2.22 Economic growth is certainly necessary for development. But economic growth perse does not mean development which should bring general improvement in the living conditions of the vast masses. The harsh reality is that under neo-liberal capitalism high economic growth and social development are moving divergently. Even the bourgeois rulers are aware of this. In their relatively frank moments, when faced with peoples' disconte-nt they talk of the need for' inclusive growth'. The steps they suggest is to announce some welfare measures, some efforts at poverty alleviation, some targeted relief schemes for specific sections, - most of them with an eye towards embellishing the image of the ruling circles. However these are palliatives which do not alter or touch the basic flaws of the system. This has resulted in India being placed 134th among 187 countries in the Human Development Index Report, 2010.
2.23 Real inclusiveness will mean that it encompasses the workers and peasants, the dalits, adivasis and minorities, the most backward sections among the OBCs, not merely as objects, as beneficiaries but as subjects involved in the process of economic growth and development. This is possible only in a new dispensation with changed class forces at the helm. It can come about only through political action and mass movements of these sections of people, for the overthrow of capitalism.
2.24. India has only 1.3% of the world GDP but 17% of world population. It is almost at the bottom of 'Human Development Index' in world reckoning, despite the claim that the rate of growth is 8 to 9%. Over 2.5 million children die in India every year, accounting for one in five child's death in the world. Poverty and inequality is glaring yet the government pursues the neo-liberal economic policies, which benefit the rich and hit the poor.
The WHO in its report squarely blamed the World Bank policy of health privatization and pointed out that poor are the casualty for such health reforms. Yet the bourgeois governments in India persist in implementing a policy of health privatization.
2.25 The Communist Party of India is the political party of the Indian workers, peasants, toiling people in general, youth, students, men and women, intelligentsia and others devoted to the cause of overcoming imperialism and capitalism, and of ushering in socialism. It has equipped itself with the scientific ideology of Marxism-Leninism, which is a tool for understanding and analyzing the complex reality of Indian society and its evolution through decades of pre and post independence periods. It is the guide to action for transforming this reality through the course of struggles for completing the tasks of the new democratic revolution and its transition to socialism.
The CPI presents this programme before the Indian people. It is not a manifesto for any particular election. It is a long-term programme that charts the strategy and tactics for basic revolutionary change in India, for its socialist future.
2.1 During the British rule Indian economy remained backward; it was dependent and colonial in character. But imperial interests dictated the need for a certain measure of capitalist development though superimposed on a feudal-landlord base in the country. An industrial bourgeoisie thus came into being by the end of the Second World War. There was concentration of capital in some spheres, and certain growth in banking. A few influential monopoly groups also grew in the ranks of the Indian bourgeoisie. A number of undertakings belonging to the British groups were bought out by this section of the bourgeoisie from the profits made from war supplies to Britain. The Indian Railway system which the British government had already taken over from private British investors came into the hands of the government of India after Independence with the sterling reserves that had accumulated to the credit of India. Nationalized railways became the first item to mark the beginning of the state sector in Independent India.
2.2 During the national liberation movement democratic elements, inside the Congress and far-sighted representatives of the bourgeoisie; as well as leaders of the Communist movement and the working class movement had advocated a broad policy of industrialization in order to overcome the colonial backwardness of India. The struggle for development of economic independence was necessary to strengthen the political independence that India had won. This was against the interests of imperialism. In order to expand the internal market and to mobilize capital resources it was also vitally necessary to carry out a certain measures of land reforms and restrict feudal relations in agriculture. This came in conflict with the interests of the landlords and princely houses. It had to be anti-feudal in its direction. The demand had emerged during the national liberation movement itself. However the bourgeois leadership was not prepared to carry this out to its logical conclusion. It displayed strong vacillations and compromising policies on vital aspects which signified a retreat from the programme of the national liberation movement.
2.3 Encouraged by the vacillations and compromising policies, the imperialists tried to keep the Indian economy tied up to imperialist finance capital through offers of "aids" and schemes like the Colombo Plan. This proved illusory. In the meanwhile the socialist world had made tremendous advance and was prepared to give selfless help to India's aim of independent economic development. The growth of the democratic movement and its demand of economic advance made the government to mute its vacillations and establish contacts with the socialist countries and to formulate policies accordingly. Measures which reserved certain strategic industries for the state sector, and undertake certain measures of nationalization helped to mobilize internal resources for planning growth and gave government a grip over the finance. This initiated the establishment of state sector industries. These measures obviously did not concur with the policy of the imperialists. They were also not to the liking of the top monopoly groups of the Indian bourgeoisie who shortsightedly wanted the state sector to be restricted to defence industry, transport and public utilities, leaving the whole field of industries free for the private sector. Actually the growth of the public sector helped the growth of the private sector.
2.4 The Soviet Union and other socialist countries extended a helping hand to India in building heavy and strategic industries. Such help was without any strings, was efficient and cheaper and the know-how and technical training were given to our workers without reservation. New branches of industry and projects which emerged as a result of socialist aid have gone a long way to eliminate the legacy of the colonial past and reduce India's dependence on the capitalist world market for trained manpower, materials and machinery. All this was however within the limitations of the capitalist path of development, and with government policies which were inhibited by the narrow class interest of the bourgeoisie. Development has been a slow, halting process, extremely painful for the masses in terms of their sufferings and resulting in a measurably low rate of economic growth. Land reforms were also sabotaged due to bourgeois government's compromising with landlord elements in the country. Therefore the internal market did not expand to the desired extent. The obstacles that stand in the way are precisely because of the capitalist path pursued by the bourgeois - landlord dispensation at the helm of the state, which in addition to its compromise with semi-feudal elements, also has links with foreign monopoly capital.
2.5 The public sector in the country's economy is nothing else but state capitalism. This development of capitalism since independence suffers from all inherent and inevitable contradictions, crisis and serious limitations of the capitalist system and its basic laws.
2.6. The bourgeoisie draws the resources for industrial and economic development of India by laying increasing burden on the common people, mainly in the form of growing indirect taxation, inflation, fleecing the peasantry through the market, intensifying exploitation of wage labour etc. In particular, the failure to unleash the initiative of the peasant masses for an upsurge in agricultural production through radical land reforms and all-round 'agrarian reform is one of the major factors contributing to the low rate of growth of national economy. Therefore there is increasing contradiction between growing industrial production and low purchasing power due to impoverishment of people. It tried to expand by inviting foreign private monopoly capital in partnership with itself. Through such collaboration agreement foreign monopoly capital seeks to penetrate and influence India's national economy including the state sector.
2.7 One of the most striking result of the path of capitalist development is the concentration of capital with economic power in the hands of a few big monopolies who enrich themselves at the expense of the people and even the other broad sections of the Indian bourgeoisie. These monopolies represent a combination of industrial, banking and marketing companies. The big monopolies who have grown into specific corporate entities not only hold strong positions in their own private sector but also have infiltrated into the state sector and use "public money" for their own aggrandisement and maximum profits. They aggravate the economic crisis by fostering price rise, corruption, hoarding and black marketing.
2.8 In the political sphere they seek to consolidate right reactionary forces in the country, encourage the communal parties, influence the ruling party for their narrow class interest, unleash an offensive against all progressive policies and mount offensives to disrupt and defeat the democratic forces.
Driven by the big bourgeois interests the government even discriminates against and neglects the small-scale and tiny industries, and repeatedly withdraws several items from the list reserved for the Small Scale Sector. It repeatedly redefines the criteria for SSI with a view to accommodate the interests of the big sector. The small-scale and tiny industries play an important role. They claim to contribute 40% of industrial output and about 35% share in exports. They employ about 20 million workers. Government has also lifted the cap on the FDI in the SSI sector. This will enable foreign capital to take over many small-scale units, particularly those which are hi-tech, in the name of technology transfer. There is a growing contradiction between this section of the bourgeoisie and the corporate and big bourgeoisie.
They seek to subvert the foreign policy of Non-Alignment and Peace and give it a pronounced pro-imperialist, specifically pro-US orientation.
2.9 From the late eighties and nineties, a new set of policies of economic liberalization is being increasingly pursued. They have now crystallized into the policy of 'neo- liberalism' boosted as 'economic reform'. Following the demise of the Soviet Union and the collapse of the socialist countries in East Europe imperialism headed by US and their international agencies such as IMF, WB and newly established WTO have stepped up their offensive for a "Free Market Economy," for carrying through Liberalization, Privatization and Globalization.
2.10 The constant refrain that is heard today is 'privatization' in all spheres of economic and even cultural and social life. It has become a dogma, an article of faith with the ideologues of 'free market'. In pursuance of this policy several public sector undertakings have been dismantled and privatized by selling government equity in them. Even the equity in nationalized banks is sought to be brought down, as a prelude to their ultimate privatization. Corporate Houses and Big Businesses are being invited to open new banking concerns. It has come up against serious obstacles, first and foremost due to the bank employees' determined resistance and the Left parties' vigorous opposition. They are now touting a new concept, viz. 'Public Private Partnership' which is actually a public mask for private aggrandisement. In their craze for privatizing the financial sector the government has failed to recall the bitter lessons of bank failures in the US, Germany, England, and other developed capitalist countries. A serious financial crisis overtook the capitalist world from 2008, which brought on a deep economic depression that continues to this day. If India's financial sector survived this onslaught, it was primarily due to the financial sector in the country remaining in the public sector. However the bourgeois government in India persists in its drive for privatization. While in the West they are talking of state regulation and even buying up of equity, government talks of giving licenses to Business Houses for launching private banks. India and China escaped the severity of the world capitalist financial and economic crisis because they were in a way uncoupled from the US financial empire. But now with huge exports tied to the western markets which are not showing healthy signs of recovery, they are liable to be affected.
2.11 Liberalization has meant 'free trade' under the WTO regime. While the imperialist and developed capitalist countries have forcibly prised open our markets for their goods and for acquiring a grip over our raw material resources they have themselves taken care not to reciprocate by opening their markets by brazenly mounting several non-tariff barriers against the developing countries. In its eagerness to woo foreign capital, the government is even discriminating against our own industrial structure particularly in the public sector. This is a process of guaranteeing private profits at public risks.
The people are treated to a lot of propaganda about "Free Market' and 'Competition' as the desirable goals of modern economic and social life. It is true developing capitalism in the earlier phase fought vigorously for free market so as to remove all obstacles to the free flow of capital and commodities. But experience shows that competition gave rise to the gradual concentration of production on a large scale, which at a certain stage of development led on to monopolies and corporate entities. It continues further through a series of mergers and acquisitions, pirating of equity shares in order to gain effective control, cartel arrangements for sharing the market, collaboration agreements between MNC's and local monopolies. The rise of the MNC's is a feature of monopoly growth based in the most advanced capitalist countries.
2.12 There is a virtual competition among the developing countries including India for attracting FDI. With the 'open door' policy and the red carpet treatment meted out to foreign investors specially the MNC's, what is missed is that the bulk of FDI is determined by the search for natural resources and markets, such that the labour cost -differential makes it more profitable to invest rather than export commodities from the home country. Some sections of the local bourgeoisie in the developing countries whose interests are hurt have no choice but to cry out for a "level playing ground", that is to say, ask for similar concession and facilities for themselves. This is sowing the seeds of contradictions between the local bourgeoisie and the bourgeoisie of the advanced capitalist countries notwithstanding the collaborationist role played by the monopoly sections aided and abetted by the government. There are some Indian corporate houses which have grown to such an extent that they are aspiring to become world players, and have even managed to become so.
The CPI does not oppose FDI under all circumstances. To make up the need for capital investment, foreign capital, whether from the U.S. or any other country is welcome if it helps the growth of productive forces, brings in new and advanced technology and opens up fresh avenues of employment. But moves by government to invite FDI in retail trade has to be firmly opposed as it will cause large scale displacement of more than 4 crores of people (along with their dependents), throwing them out of their livelihood, nor will it bring worthwhile new technology. We oppose FDI in banking and insurance, as it will mean foreign control over our financial sector.
2.13 The inclusion of agriculture and food in WTO negotiations has specially hit hard the Indian farmers. The impact of Dunkel on our agriculture, specially on the poor-resource farmers is extremely harsh. Its impact on the food market due to obligatory imports and exports, and the control which the developed capitalist countries exercise on the gene sequences, micro-biological resources and genetic engineering, or on the preservation, sale and free exchange of seeds etc will have far more significance here and can prove disastrous for the whole country. For a vast country like India attaining self-sufficiency in food is of utmost importance. Drawing food into the world market and allowing the food MNC's to acquire a strangle-hold over this market has serious consequences.
2.14 The monopolizing of innovations and technology has reached a stage that "Intellectual Property Rights" (TRIPs) has been mandated to an international treaty. Hitherto in our patent laws we had tried to balance the interest of patent holders with public interest. But under the new patent regime it will be difficult to ensure the primacy of the public interest. Patent holders are often the multinational corporations.
2.15 The Structural Adjustment Programme, the Dunkel treaty were both latest ploys of imperialism. "Market fundamentalism", monopoly of high technology, grip over communication and media, international trade dictated by the WTO regime are all weapons pressed to that end. This is imperialism in the epoch of the scientific and technological revolution and the rise of International Finance Capital. It is nothing but an attempt to prolong the crisis-ridden world capitalist system through an offensive against the working people in each country and against the people of the Third World in general.
Times have changed indeed but imperialism continues to be a threat no less than before. The task is done in more sophisticated form, making the task of fighting them many times more difficult than before. However the task of fighting imperialism remains a priority for carrying forward the democratic revolution.
2.16 This neo-liberal globalisation is widening economic inequality, generating poverty, debt and unemployment. The US and the IMF are pushing India for capital market liberalization. It has been shown by the experience of the 'East Asia Crisis" more than a decade back that capital market liberalization brings instability and a crippling financial crisis. India should rebuff such pressure. The Indian people have to participate actively in the growing worldwide movement against "globalisation'. This movement had correctly highlighted that with 'globalisation' poverty does not decrease. Inequality actually rises. Disparities among and within countries continue to grow. The richest people in the world and in each country corner the wealth and the vast mass of people are left without means for their bare existence. This state of affairs cannot be accepted. We have to fight to change it.
2.17 Following the demise of the Soviet Union the capitalist powers led by the U.S. pronounced that "socialism is dead; It is the 'end of history; Capitalism is the only viable social and economic system". Actually capitalism including its latest variant of neo-liberal capitalism, so-called 'crisis-free capitalism' has not only sunk into a deeper crisis than ever, but has also failed to solve the problems of poverty and unemployment. Rather, these problems have been further aggravated, both in relative and absolute terms, as can be seen from these facts:
- Nearly one and half billion people out of world population of six billion continue to live in absolute poverty and on the verge of starvation.
- More than eight hundred million people go to bed hungry. All this at a time when the world's resources, its production potential and the advance in science and technology is capable of meeting their requirement in food and other necessities.
- The gap between the rich and poor, among people and countries is widening by the day. The richest 20% of the world's population hold almost 83% of the world's wealth. The poorest 20% controls only 1.4%. This was 2.4% only thirty years ago.
- The poorest of the developing countries have more than half of the world population, but only 5.6% of the world income.
2.18 The world capitalist system is now gripped by a deep financial and economic crisis. Despite all bailout packages liberally handed out by bourgeois governments to the corporates, recovery is very slow and tardy. It is a crisis of the capitalist system, and not a manifestation of any mismanagement, or aberration of the system in this or that country. Capitalism can no longer find a solution to the main contradiction that afflicts it, - the sharpening contradiction between the social character of production and the private nature of capitalist appropriation.
2.19 The competitiveness between the most advanced capitalist economy, the USA first and foremost, and the emerging economic powers, such as China, India, Brazil, is intensifying. The correlation of forces is changing and new realignments are coming up. With deepening crisis the political system of capitalist countries becomes more reactionary and more repressive.
2.20 Faced by growing unemployment corporate greed and widening inequalities, masses of people in many countries are corning out on the streets, abominating capitalism and demanding a change even though many are not yet clear what or how.
2.21 Economic growth measured in terms of rise in the GDP, in national income, in per capita income hides the actual economic inequality that exists within the country, the yawing gap between those at the top who are rolling in wealth, and the vast majority at the bottom that is wallowing in poverty. To calculate the per capita income among such unequal incomes and suggest a rise in general prosperity is to mock at poverty and divert attention from it.
Bourgeois governments, repeatedly speak of development as their goal. But economic development implies that along with growth there are positive changes in the distribution of the fruits of that growth, as well as changes in the economic structure itself. Development must mean growth with equity and justice. It must mean satisfaction of the basic needs of the mass of people as a matter of priority. Those who sidetrack this issue are the votaries of the notorious 'trickle down' strategy.
The total number of people in India belonging to the poor and vulnerable group having a daily per capita consumption of less than Rs. 20in 2004-05 is 836 million, constituting about 78 per cent of our population. Since then the number has grown.
About 88 per cent of India's SCs/STs belong to this group of poor and vulnerable. Similarly about 85 per cent of all Muslims other than the SC/ST and 80 per cent of all OBCs except Muslims are poor and vulnerable living below per capita consumption of Rs. 20 per day.
Those who are poor are also illiterate and poorly educated. They also account for 79 per cent of the unorganized workers with informal and casual employment with no job security, social protection or minimum wages and working in abysmal physical conditions. Poverty, unemployment, illiteracy or poor education go together.
2.22 Economic growth is certainly necessary for development. But economic growth perse does not mean development which should bring general improvement in the living conditions of the vast masses. The harsh reality is that under neo-liberal capitalism high economic growth and social development are moving divergently. Even the bourgeois rulers are aware of this. In their relatively frank moments, when faced with peoples' disconte-nt they talk of the need for' inclusive growth'. The steps they suggest is to announce some welfare measures, some efforts at poverty alleviation, some targeted relief schemes for specific sections, - most of them with an eye towards embellishing the image of the ruling circles. However these are palliatives which do not alter or touch the basic flaws of the system. This has resulted in India being placed 134th among 187 countries in the Human Development Index Report, 2010.
2.23 Real inclusiveness will mean that it encompasses the workers and peasants, the dalits, adivasis and minorities, the most backward sections among the OBCs, not merely as objects, as beneficiaries but as subjects involved in the process of economic growth and development. This is possible only in a new dispensation with changed class forces at the helm. It can come about only through political action and mass movements of these sections of people, for the overthrow of capitalism.
2.24. India has only 1.3% of the world GDP but 17% of world population. It is almost at the bottom of 'Human Development Index' in world reckoning, despite the claim that the rate of growth is 8 to 9%. Over 2.5 million children die in India every year, accounting for one in five child's death in the world. Poverty and inequality is glaring yet the government pursues the neo-liberal economic policies, which benefit the rich and hit the poor.
The WHO in its report squarely blamed the World Bank policy of health privatization and pointed out that poor are the casualty for such health reforms. Yet the bourgeois governments in India persist in implementing a policy of health privatization.
2.25 The Communist Party of India is the political party of the Indian workers, peasants, toiling people in general, youth, students, men and women, intelligentsia and others devoted to the cause of overcoming imperialism and capitalism, and of ushering in socialism. It has equipped itself with the scientific ideology of Marxism-Leninism, which is a tool for understanding and analyzing the complex reality of Indian society and its evolution through decades of pre and post independence periods. It is the guide to action for transforming this reality through the course of struggles for completing the tasks of the new democratic revolution and its transition to socialism.
The CPI presents this programme before the Indian people. It is not a manifesto for any particular election. It is a long-term programme that charts the strategy and tactics for basic revolutionary change in India, for its socialist future.
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