Dec 11 Strike of Working Class

Sitaram Yechury

By the time we reach our readers, India would have witnessed one of the most significant of striking action by the working class. The nation-wide industrial strike on December 11th coinciding with the second day of the two day all-India strike of public sector employees brought to a virtual standstill all industrial activity in the country. The working class was joined in this action by millions of their brethren in rural India. In many parts of the country, the peasantry and agricultur¬al labour, alongwith middle class employees in urban centres responded enthusiastically to CPI(M)’s call and participated in protest actions such as kacheri-jam',rasta-roko’, dharnas' etc. The country thus experi¬enced its first everhartal’ of such a magnitude in independent India.

But then, why such an action? The government, the bourgeois press and its pen-pushers would all have no believe that this was an isolated response to some measures that effect the interests of specific sections of workers. Such as the public sector employees who fear retrenchment with privatisation on the LIC em-ployees who fear loss of their monopoly due to the proposal of opening up the insurance sector. Some, patronisingly interpret the massive response as a con-tinuation of the expression of peoples’ anger against unprecedented price rise which has already inflicted an irreversible damage to the ruling BJP’s political stand¬ing.

However, a pursuance of the literature and preparations for this action by the platform of mass organisations, which includes the vast majority of working and unem¬ployed Indians, clearly shows that the main thrust of this action was against the direction and content of the present economic policies of Liberalisation, Privatisa¬tion and Globalisation (LPG). It is precisely this that the ruling classes seek to obfuscate by peddling theo¬ries such as those noted above. The ruling classes may grudgingly accept protest actions on sectional demands. But they would never be prepared to tolerate protest by a majority of Indians against its policies. For this precise reason, this action by the working class, sup¬ported by a majority of toiling people constitutes a qualitatively new offensive of the Indian people against the ruling class policies. Policies, that during the last decade, mortgaged India to foreign capital, on the one hand, and imposed unprecedented burdens on the people, on the other. The casualties of such policies which enrich the profits of the ruling classes and its imperialist MNCs are the economic sovereignty of India and the livelihood of its peoples.

It is in this light that the dangers from the present unbriddled privatisation drive must be seen. Particu¬larly the insurance sector, the huge amounts of resourc¬es in the insurance sector is the collection of personal savings of millions of working Indians. These resources so far have been at the disposal of Indian economy, particularly for the development of the rural sector. By privatising this sector access to these resources is being given to private and foreign elements — the huge MNCs. Historical evidence shows that universally, these MNCs have deployed these resources not for the economic development of the concerned countries but for further¬ing their profits. In these days of growing interna-tionalisation of finance capital, these resources will be employed in any part of the globe where the MNCs garner greater profits. Thus the stage is set, through privatisation of this sector, for a massive outflow of capital. The hard earned savings of millions of Indians will now be employed, not for the development of their country, but to fatten the profits of the MNCs. Apart from all other arguments against such privatisation, this alone is sufficient for all Indians to rise in protest against such naked betrayal of national inter¬est. This ruling BJP-led government seems to learn nothing. The recent experience of the South East Asian tigers' graphically shows the devastating consequences of such an outflow of capital for the economy. Millions of people have been ruined, productive economic assets destroyed throwing millions out of jobs, the GDP, eg of Indonesia, fell by an amazing 20 per cent in one year! In these countries, scavengers today pick the bones of what were once considered astigers’.

It is to this state that the present BJP-led government seeks to reduce India to. Having gained earlier, the support of a section of Indians, on slogans like Na-tional Pride',Swadeshi’ etc, the BJP is busy betraying the country and the people. It’s double-speak and oppor¬tunism is of such colossal dimension that during the United Front government, the BJP had actually supported the CPI(M)’s opposition to the privatisation of in¬surance move, that forced the then finance minister to withdraw the bill in Parliament. Today, eager to please its imperialist mentors, this government is bartering away India. A singular act of `national disservice’.

But then the BJP continues with its double-speak. Having received a drubbing in the recent elections, some RSS outfits are once again seeking to mislead the people by opposing this move. Even the BJP chief has publicly expressed his opposition! Such perfidy will not work. For the majority of Indians, the Saffron Brigade repre¬sents the `merchants of death’ who thrive by sucking the country and the people dry.

Apart from this proposal, the BJP-led government has unleashed a massive privatisation drive of the public sector and the opening up of virtually all areas of our economy to the loot of MNCs. People’s assets built over half a century are being given away to private prof¬iteers for a song. India’s mineral and material wealth is being laid bare for foreign exploitation. In fact, there has not been a single area where India’s interests have not been mortgaged. Just one example will suffice. 80 per cent foreign equity has be allowed in Indian Ports. Consider how this effects India’s sovereignty. It requires at least 26 per cent equity to ensure terms and conditions for the Ports to receive or service foreign ships. For instance, if US nuclear ships seek facili¬ties at Indian Ports in any war effort, like the gulf war, India would not be in any position to deny this since it will not have the required 26 per cent of the equity. Thus, by taking such a measure, this BJP-led government has opened up possibilities of India, against the wishes and interests of its people, will become party to imperialist war games! So much for the BJP’s national pride!

What has been the net result of these policies on the economy? The BJP’s finance minister has estimated in the budget that India’s interest charges and servicing of previous loans would amount to a whopping Rs. 75,000 crores this. What is worse is that this is bound to grow given the taxation proposals of this government. Proposals that benefit the rich have resulted in a short fall of revenue to the tune of Rs. 9,000 crores from excise alone. Apart from meeting this short fall, the government will incur higher expenditures, thanks to its utter mismanagement like the roll back of announced hikes in prices of urea, petrol etc and the recent import of onions. The government has no other course but to go in for further borrowing to bridge this gap. The consequence : further debt and mortgaging of India.

At another level, these policies have led to the govern¬ment abdicating its social responsibility by drastically reducing its expenditure (in order to meet interest payments). The reduction of expenditure in health, education, public distribution system etc means that people have to either spend greater parts of their incomes on these essentials or simply forgo them. Given the overall rate of inflation which is already eroding the real earnings of a majority of people, such extra expenditure leaves very little left to buy anything apart from bare essentials. This means a reduction in domestic demand. This, in turn, means a reduction in investment, since what is produced cannot be bought. This further means that employment opportunities shrink further. This, in turn, reduces domestic demand further. This, India has entered the classic vicious circle which leads to recession and stagflation.

On the other hand, there is a minority which has gained from these reforms. With their soaring incomes they demand goods (not the ones produced domestically as they already posses them in abundance) from abroad thus decreasing imports and worsen the balance of trade deficit. As a result of these LPG policies, there are people in India who have money but who do not need what is produced here. How many cars and TVs can a family need? On the other hand, those who need them do not have the money to buy! However, those with the money through their economic transactions keep a constant pressure on inflation. With raising prices, the real incomes and domestic demand fall. Thus the circle is complete : Impoverish the poor, enrich the rich.

A look at the economy since this BJP-led government assumed office confirms this. Consumer Price Index has been steadily rising from 14.8 per cent in July to 15 per cent in August to a five year record high of 16.3 per cent in September. In April-July 1998, industrial growth slipped to below 4 per cent from 5.6 in the corresponding period last year. Manufacturing plunged to 3.7 from 5.6 per cent. Consumer durables grew by 0.8 per cent compared to 6.2 per cent. Growth in basic goods dipped to 2.6 per cent from 7.7 per cent and intermediate goods fell to 5.3 per cent from 8.4 per cent. Agricultural growth this year is unlikely to cross 3 percent. What is worse is that exports fell by 3.8 per cent between April and July, 1998. With imports growing the balance of trade has widened putting pres¬sure on India to borrow more!

Thus, what we have is not only a confirmation of what we anticipate above. But worse, there is apparently no way out except further miseries for the people.

The one way in which the situation can be redeemed is by increasing domestic demand. This requires massive State intervention, ala, Keynes. But the government is loath to do so given its pro-imperialist bias and commitment to the `market forces’. Another important measure that can boost domestic demand is land reforms. By economi¬cally empowering the landless, both agricultural produc¬tivity and domestic demand grow. But once again, this appears impossible given the fact that landlords are an important part of the ruling class alliance.

Thus the present ruling class policies only aim to mortgage our country further and immerserise the vast major¬ity of people. December 11th is only the beginning of the growing people’s resistance to the present ruling classes and their agent in government — the BJP and the Saffron Brigade. Whichever party be in power, India can never redeem its pledge to itself and the people unless these policies are reversed. December 11th thus marks the new determination of Indian people’s resistance to the ruling classes and to redeem the forgotten pledges.