Saturday, 29 September 2012

In the name of the aam admi


Sukumaran C. V.

To safeguard democracy the people must have a keen sense of independence, self respect and oneness, and should insist upon choosing as their representatives only such persons as are good and true. 
                         —M. K. Gandhi. (The Story of My Experiments with Truth)


In his keynote address at the opening of the Edinburgh Commonwealth Summit on October 24, 1997 the then Prime Minister of India, I. K. Gujral, said: “Equal opportunity and democracy are often absent in the restricted chambers of the international economic system. And yet, I have little doubt that, in the long run, globalization will succeed only if it is equitable and just. The institutional systems that oversee the globalised economy must reflect an enlightened balance of interests.”
Nearly fifteen years after, the globalised economy in India not only reflects a balance of interests but also widened the imbalance between the rich and the poor and as a result it has wiped out the lives of nearly three lakh farmers between 1995 and 2011. According to the NCRB (National Crime Record Bureau) data; 2, 90, 740 farmers committed suicide during 1995-2011—an average 18,171 farm suicides each year!

When Mr. Manmohan Singh ushered in the liberalized economic policies in 1991, it paved the way for the corporate sector to be a Shylock with the unconditional help of the State. And in the 2001-02 Union Budget, the then Finance Minister Yaswant Sinha introduced a major policy decision (in favour of the big business) to reduce the role of the FCI to maintaining only minimum buffer stocks. This policy shift was a lethal blow to our PDS and led to the dismantling of the Minimum Support Price scheme which was a solace to the farmers.

The Union governments since 1991have confined themselves to creating conditions for private enterprise to flourish. While the successive Union Budgets in the liberalization era have inflicted severe cuts in agriculture subsidies, the revenue forgone under corporate income tax, excise and customs duties during the period 2005 - 2011 is Rs. 21, 25, 023 crores. (P. Sainath, “Corporate socialism’s 2G orgy”, The Hindu, March 7, 2011)

In this abysmal socio-economic background,   Prime Minister Manmohan Singh, on June 29, 2011, in his opening remarks at the interaction with newspaper editors, told: “We must not bring back the license permit raj which we sought to abolish in 1991. I think our nation has prospered as a result of that. If you look at the list of top 100 firms today you will find a sea change in that list. New entrepreneurs have come into the list. These are some of the gains of liberalization which we must cherish, nurse and develop.”
                   Gains of liberalization which we must cherish, nurse and develop!


To understand this ‘gains’ we have to compare the data on unemployment from the Government of India’s Economic Census of 1990 with that of 1998. The annual average growth rate percentage of employment in the two Censuses (shown in the table below) speaks volumes on the gains of liberalization.

Year
Agricultural sector
Non-Agricultural sector
Total
Rural
1980-1990
+5.62 %
+2.81 %
+3.13 %
1990-1998
+1.80 %
-2.15 %
-1.58 %
Urban
1980-1990
+2.93 %
+2.88 %
+2.88 %
1990-1998
+3.15 %
-1.08 %
-1.01 %
And yet our Prime Minister speaks of the gains of liberalization!
In the wake of the different multi-crore scams and scandals, Mr. Singh warns the media that if an atmosphere of cynicism is created, the growth and the entrepreneurial impulses of the big business will not flourish. Then he tells the editors that “we must do all that we can to revive the animal spirits of our businesses.”

Fifteen years ago, when the lethal aftereffects of the liberalization were not so visible as today, we had a Prime Minister who was at least bothered about the ideal of equal opportunity. Today when the structural inequalities and violence stand more entrenched and imbalanced than ever before as the result of the free play of market forces; our Prime Minister is bothered not about the pathetic condition of the farmers and the poor, but about the nervousness  the corporate sector feels if its wayward activities being monitored.   In his inaugural address at the India corporate Week 2010, he said that the government was committed to providing an enabling environment conducive to the growth of the corporate sector.

What about providing an environment conducive to a decent living to the 830 million people who live on Rs. 20 a day?  What about providing an environment which is not conducive to eliminating the lives of more than 18,171farmers every year? What about the villagers being displaced by the multinational giants like the Vedanta and the Posco? 

                                     In an environment conducive to growth!

And on Sept. 21, 2012 in his address to the Nation, the Prime Minister, by calling us brothers and sisters again and again, told us:
“In 1991, when we opened India to foreign investment in manufacturing, many were worried. But today, Indian companies are competing effectively both at home and abroad and they are investing around the world. More importantly, foreign companies are creating jobs for our youth—in IT, in steel, and in the auto industry. I am sure this will happen in retail trade as well.” 

Can there be a greater irony than this? Can anybody, who is face to face with the lives of the millions of ordinary people in this vast country, speak like this? And the way he started his address is really the joke of the year: “No government likes to impose burdens on the common man. Our Government has been voted to office twice to protect the interests of the aam admi.”


P.S: In her Broken Republic, Arundhati Roy writes: “In his autobiography, A Prattler’s Tale, Ashok Mitra, former finance minister of West Bengal, tells his story of how Manmohan Singh rose to power. In 1991, when India’s foreign exchange reserves were dangerously low, the P.V. Narasimha Rao government approached the International Monetary Fund (IMF) for an emergency loan. The IMF agreed on two conditions. The first was structural adjustment and economic reform. The second was the appointment of a finance minister of its choice. That man, says Mitra, was Manmohan Singh.”