Saturday, August 17, 2013

REPORT ON POLITICAL AND ECONOMIC SITUATION (For National Executive Meeting at Ajoy Bhavan, New Delhi – August 7-8, 2013)

REPORT ON POLITICAL AND ECONOMIC SITUATION
(For National Executive Meeting at Ajoy Bhavan,
New Delhi – August 7-8, 2013)


THE ECONOMIC SITUATION:-

1. The economic situation continues to be grim. All index of economy are showing downward trend. Even government has admitted that the GDP growth rate will touch the historic low of 5.5 per cent whereas other economists feel that it may go down to below 5 per cent. There is stagnation in all sectors of economy. Industrial production has slowed down and manufacturing sector has registered the fall. Though service sector has shown some recovery, it too is stagnating. According to Purchasing Managers index (PMI) it stood at 50.1 in July Fiscal deficit is growing.

2. Rupee is continuously on slide down and hovering around Rs.60-61 per dollar. Since May the rupee has lost 15 per cent of its value and touched the historic low of Rs. 61.21 per dollar on July 8. The fall in the value of rupee has led to fall in export and increase in the cost of imports that will have further negative impact on trade balance.

3. Prices of almost all essential commodities have doubled since May 2008 and inflation rate is going up unabated. The recent heavy rains and floods in several parts of the country have caused unprecedented rise in the prices of onion, tomato and almost all vegetables. Milk prices are soaring and grain prices too have jumped up. This has added to the miseries of common people.

4. The freedom to increase the prices of diesel and petrol is having cascading effect. During the six weeks of June and July the petrol prices were hiked five times and diesel prices are hiked every month at a rate of 50 Paise per liter. On the one side, by raising the prices of petrol, diesel and cutting the quota of cooking gas, the UPA-II government is heaping new burden on the people on the other it is rewarding the corporate houses with more and more concessions. The most glaring example is decision to increase the price of KG Basin gas from US dollar 4.2 to 8.4 to dole out billions of rupees to Reliance of Mukesh Ambani.

5. The only Mantra the UPA-II knows to overcome the deepening economic crisis is to further open the floodgate of FDI. Last month government in one stroke has decided to further enhance the quantum of FDI in defence, insurance, pension, aviation, retail and other key sectors. It is even diluting the condition for FDI to promote the takeover of our economy by foreign investors. At the time of granting permission for FDI in multi-brand retail trade, the government has claimed that Wal Mart and other retail MNCs will be bound to procure 30 per cent of their requirements from the local market. Wal Mart has made it clear that it will not accept the condition of 30 per cent procurement from local market and Prime Minister has succumbed and assured MNCs that this condition will be reviewed Prime Minister promised more reforms. More reforms means more privatization and more surrender to corporates and MNCs.

6. Government of India has decided to grant licences to more Private Banks. Big business and corporate houses are rushing for licences they want to have their own bank, to do business with people’s money. In the background of bankruptcy and mismanagement of private banks in India and abroad it will be a wrong policy to issue licences.

7. Closures, out sourcing and retrenchment have become order of the day. Job opportunities are shrinking and already employed are losing jobs. There is ban on recruitment and thousands of posts are lying vacant in key government departments and sectors. Closure of mines has thrown thousands jobless.

8. Agrarian economy is in shamble and farmers continue to commit suicide. Forceful acquisition of land for industrialization is taking place but actually being handed over to real estate sharks and builders mafia is shrinking the area under cultivation. This phenomenon is quite visible in the wheat belt of Haryana, U.P. and Punjab and ground nut areas of Gujarat. Tribals are being dislodged on the name of mining in large scale in Chhattisgarh and Jharkhand and some extent in Andhra Pradesh. Farmers are being dislodged from their land and this is having devastating impact on the rural economy as a whole. Government is encouraging Corporatization of agriculture that is a big offensive against the small and middle farmers. The question of land, agrarian reform and distribution of land is assuming urgency.

9. The Recent assertion of the Government that Poverty is reduced considerably in India is absurd. It is based on old fights and wrong assessment. This claim of Government is ridiculed by many people. It should be exposed.

10. Commercialization of education has become a big threat and the reports during the current admission session indicate that higher education is becoming out of reach of the wards of even middle classes. This threat need to be taken up seriously.

11. On the front of unemployment, a new feature is loss of jobs for lakhs of Indians employed in Gulf countries. The policy of Saudi government to force employment of locals will render several lakhs of Indians employed there jobless. This will also have adverse impact on the economy as a whole.

POLITICAL DEVELOPMENTS:-

The government has taken up the path of Ordinance raj to promulgate the Food Security Ordinance though the Parliament was to meet within a month’s time. All the flaws and shortcomings that have already been pointed out remains in the Law. Government has shown this hurry just to use it for propaganda. Government is not at all serious in providing real food security.

Striking an unholy alliance, the Congress has joined JMM in forming the state government in Jharkhand. The political situation in the state continues to be uncertain and unstable. Fresh assembly poll appears to be only alternative.

Telangana: After delaying for decades, ultimately the UPA II core-committee and Congress working committee decided to recommend to Government for formation of Telangana state. This is a justified demand supported by CPI. As expected there is negative agitation in Coastal Andhra and Rayalaseema. CPI appealed for peace and brotherhood among Telugu people.
Telangana announcement has lead to intensification of agitation for separate hood in Bodo land and Goorkha land areas. There are apprehension that UPA II might has selected this timing to announce state hood, to divert attention from real socio-Economic issues. However our Party supported the decision on Telangana.

After the BJP named Gujarat chief minister Narendra Modi head of its National Election Campaign Committee, the JD(U) finally broke its alliance with it. It is a significant political development. During the confidence vote, our party supported the JD(U) government which was publicly acknowledged by the Chief Minister Nitish Kumar. The withdrawal of JD(U) from NDA has weakened communal forces further.

Panchayat elections in West Bengal and Andhra Pradesh have been completed. In West Bengal, the entire election process was marred by violence and shameless suppression of democratic rights. The reports on these elections will be presented by the State leadership.

The two year rule of UDF in Kerala has been hit by corruption scams and sex scandals. The latest scam is related to solar panel sale in which the chief minister Ommen Chandy and his office is directly involved. The LDF is vigorously running the campaign for the ouster of the Chief Minister. The UDF is loosing its credibility.

The Media and the two major bourgeois political parties are already in the election mode. The Media is forcefully trying to project that the only issue before the people is choice of the Prime Minister. The personalities are being projected as if the country has already adopted the system of directly electing the PM. Major socio-economic issues are just being sidelined. The latest KG Basin gas scam did not find mention in the way it deserved in the Media particularly the electronic one.

The Union cabinet Economic affairs committee decided to increase the Natural Gas Price from $4.2 to $8.4 for MMBTU. This is to help the Mukesh Ambani’s Reliance Company. This was exposed by our party and Left Surprisingly the BJP is silent on this issue. This exposes the nexus between Congress BJP and corporate house.

9. Anti-POSCO agitation in Odisha under the leadership of our party is going on for the last 8 years. Com. Abhoy Sahoo, leader of Anti-Posco struggle, is arrested again and kept in jail. The Odisha government is making all efforts to terrorize the people and occupy and land to be handed over to Posco Company.
A consistent dirty campaign has started in recent period, by the Left extremists who were supporting our agitation against CPI, on Abhoy Sahoo and other party leaders that CPI is sabotaging the struggle. It looks that they are Jealous of our struggle and carrying on this campaign through internet. This should be replied properly and fought back. They should be exposed.

Anti-Posco solidarity campaign should be intensified. Unity of the people who are carrying the struggle heroically should be strengthened. A national solidarity convention should be planed at Delhi along with other Left Parties. Nation wide campaign should be planned to support and strengthen Anti-Posco struggle.

10. On July 1, the four Left Parties---- CPI, CPI(M), Forward Bloc and RSP--held the National Convention at Delhi and adopted a declaration that contain 10 point charter of outline of alternative policies on which the national alternative be based. Our party has sent this document to 21 regional political parties to seek their comments and suggestion. Preparation are on for holding the state level conventions. This document need to be popularized particularly its outline of alternative programme.

11. State of Uttarakhand has been badly hit by heavy rains, floods and land sliding. Thousands have died, villages after villages have been wiped out rendering lakhs homeless. The Union and state governments have miserably failed in taking up the task of providing relief and rehabilitation of affected people. Our party comrades, though in a limited manner, joined the relief operations from day one. The state council now has chalked out a detailed programme to intensify the campaign for proper relief and rehabilitation. Our Party has given a call for National Relief Fund. Though a few lakhs are collected, the response is very poor and disappointing from many states. A.P., Karnataka did well in this regard. Party Comrades should develop solidarity movement in the hour of need. Center is providing financial assistance from the fund received for relief work.

12. Rajya Sabha Elections : Com. D. Raja retired from Rajya Sabha, we wanted to contest the biennial elections from Tamilnadu. CPI has eight M.L.A. only in Tamilnadu assembly CPI(M) with ten M.L.A. agreed our request to support us. We requested AIADMK General Secretary and Chief Minister Jayalalitha to extend support. Our State Council arranged the meeting and played important role to impress her to support us. Though first refused and declared her candidates to five out of six vacant seats, she ultimately withdraw one her candidates and extended support to our Party candidate. Four AIADMK, one CPI and one DMK candidates got elected.

As there was no time to call the National Executive, the Secretariat took the decision to renominate Com. D. Raja as CPI candidate, consulted the State Executive and finalized the candidate. We owe our thanks to Jayalalitha Ji. This election is important to us as Rajya Sabha would have left with lone CPI M.P. from Kerala.

13. In Rajasthan, a new front has been floated for the assembly elections Some electoral preparations are on there. In Chhattisgarh also some preliminary work has started and an alliance has been forged. But in Delhi and Madhya Pradesh due attention is not being paid to the elections due after three months.

14. The NE in this session have to discuss the preparation for the LOK SABHA in detail. The issue cannot be ignored any more. This has to be taken up as a separate agenda.

TASK BEFORE THE PARTY : -

All Preparation should take place for ensuring Parliament election, to increase our Party strength in Lok Sabha and for a stronger Left Block.

Election Fund Collection should start at all levels and targets should be fulfilled. All party leaders and Comrades should participate in the collection.

October (3 to 5) Picketings should became successful. All Party members and sympathizers should participate in Picketings.

Left conventions and Rallies should be organized, as planed by the National Convention.

5. A national convention in solidarity with POSCO agitation should be organized along with other Left Parties.

National Executive Meet
Information Document-I
JUDICIARY ON DISQUALIFICATION OF PEOPLES’ REPRESENTATIVES


In the recent period Supreme Court and Allahabad High Court have given some judgements which are having far-reaching consequences.

Allahabad High Court banned caste rallies in the state of Uttar Pradesh. In the recent period, caste rallies have become a regular feature followed by some Political Parties, in preparation for Parliament Elections. This is a welcome decision of High Court.

The Supreme Court has asked the Election Commission to frame effective rules regarding Freebies, like Free Food grains, Lap tops, Mangal Sutras, Cycles, Mixers, Grinders, to voters in their Election Manifestos. It is a difficult, proposition but some regulation is needed. These free gifts are for the benefit to Party but charges will be borne by Taxpayers.

Supreme Court also gave two separate judgements which have created complications for peoples’ representatives.

First it decided that all those who are punished with two years or more imprisonment, will be disqualified from the day of the judgement, to continue as people’s representatives. This has become necessary as the appeals in higher courts are going on for decades. But there are problems that some time, the Left and Democratic Parties’ leaders activists will be also punished for participating in people’s agitations on concocted criminal cases. The spirit of the judgement is to disqualify the criminals from continuing as peoples representatives after punishment.

The second judgement says that those who are in legal custody will loose their voting right and will not have a right to contest Elections. But these days thousands of activists of Democratic movement are arrested in many cases. Ruling party can misuse its political authority to arrest the opponents to keep them away from Elections. Such type of law was not there even in British days. Many Communist leaders were elected to Assemblies and Parliament from Behind bars. There is a famous Irish political slogan “Vote them in (into Parliament) to bring them out (from jails) i.e. to get their leaders released.

There should be proper law in the parliament, in consultation with all the political parties.

All these judgements are hailed with a mistaken understanding that it will keep criminals out of politics. One third members of parliament and legislatures are having some criminal case or other record against them. A section of intellectuals and middle class are becoming cynical and support these type of judgements also. Their anger against criminalization politics, corrupt politicians is be coming allergic to political parties and all politicians.

In the recent past, there was a feeling that judiciary is “over active” and there is “over reach”. The inefficiency of the Executives through their acts of omissions and commissions are responsible for judicial activism.
There was unpardonable negligence on the part of the Executive on important issues like bringing back stashed black money from abroad, law to curb corruption, food security to people, foolish methodology in counting poverty, admissions to children in schools, providing health facilities, misuse of CBI, elimination of criminals from politics etc. The Executive is making the legislature helpless and defunct hence. Judicial activism is getting bigger support.

This formulation should be altered - But Executive weaknesses should not be taken advantage by judiciary? Executive, legislature and judiciary should co exist within their limits. The clash between them will create constitutional crisis. That should be averted. It is for the political leadership to establish that harmony and balance through giving clean administration to the common man.

Information Document-II
RIGHT TO INFORMATION AND POLITICAL PARTIES

The Central Information Commission has given a decision that all National Political Parties are “Public Authority” according to Right to Information Act and asked us to appoint Public Information Officers in our Party. Their decision is based on Technical ground that Political Parties get substantial funding indirectly. They cited examples such as Plot allotted to Political Parties for construction of offices at Delhi at concession rates.

Flats or Bungalows allotted to Party leaders at Delhi at concessional rent.

Income tax exemption to companies, on donations to Political Parties.

Free voters list the time of elections.

Free time slot allotted in official media during elections etc.

This decision has been rejected by all Political Parties. There is criticism from some sections of intellectuals and R.T.I. activists that Political Parties are ganging up in Parliament to dilute the RTI act and they do not want to be transparent.

The Allegations that the Political Parties are substantially finances” by the Government is not correct. The supply of voters list, time slot allotment to Political Parties is essential in democracy. Exemptions of Income-Tax is beneficial to companies and corporates Left Parties does not accept donations from corporates.

Plots for Political Parties offices in Delhi are to be given by the government, as most of the land in New Delhi is in the hands of the Government. However it is given on lease. The allotment of plot is done decades back but Market value of 2013 is calculated to arrive at the cost of concession.

Our Party has taken a stand that Political Parties should be transparent and accountable to people as for as Finances are concerned. We have put all the details of our Income-expenditure and list of donors over Rs. 20,000/- a year, in the Website of the Party CPI(M) has also put these details in the website.

We are opposed to give details of our inner Party discussions to non-party members. The Union Government has decided to bring an amendment to RTI act to keep the Political Parties out of it. As RTI act is brought by the Parliament, any clarification has to come from parliament itself.

1 comment:

  1. The alternatives are there to free this ensnared economy deluded by big GDP figures and Jobless growth from the perfidious Global monopoly capitalism with people’s participation in a protracted struggle to save the national economy with a self reliant perspective, expansion of domestic market, involving state activism in this competitive market with special reference to the agrarian sector, ensuring food security without targeting and evasion of the tendency of plight of farmers which is adding to the reserve army of labour inflating to the informal sector to the glee of the national and international imperialist bourgeois , encouraging indigenous R&D in the manufacturing sector and technology transfer on equitable basis of foreign policy catering to the domestic requirements, safeguards to the medium and small scale industries along with provision to those export oriented sectors of economy with subsidies in their imported capital goods (which should be sustainable for if the Union can grant five lac seventy three thousand crore tax evasion to the various corporate incomes), increasing the ceiling of short term capital gain tax in the share market and security transaction tax, Nationalization of all the oil producing and gas sectors with specific stress on exploring possibilities of Oil and gas production in the country like those of pre-1991 era, regulation in the petrol and diesel prices with subsidies by overhauling the oil-tax structure conducive for agrarian development and regulating inflation, imposing restriction over non-productive imported commodities like luxury goods, gold , silver and other luxury articles , nationalization of the fertiliser industries and boost to the in-house fertilizer sector, annulling all the precarious movements for FDI in the pension and amendments in the IRDA to deregulate the insurance sector which is bound to bring as a predicament to the sovereignty and self reliance through peoples participation in the mass movements, a solidarity in the international relations of diplomacy and trade in alternative blocs of BRICS against the hegemony of the Finance capital keeping in view of the present concrete condition of the world economy.

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