People's Democracy

YECHURY MOVES PART II OF THE POL-ORG REPORT

N S Arjun

THE part II of the political-organisational report for the 18th congress, titled ‘On Certain Policy Matters’ was introduced by CPI(M) Polit Bureau member Sitaram Yechury in the evening session on April 8. With the media and vested interests trying their best to paint a picture of "divergence of line" between Party centre and Party-led state governments on key policy issues, particularly those relating to globalisation, the central committee of the Party decided to bring this document before the congress for adoption.

Introducing the report, Yechury said the central committee felt that there was a need for clarity and commonality of approach regarding these key issues and it had mandated that in another one year a comprehensive document on ideological issues has to be adopted. This part of the pol-org report delineates the Party position on globalisation; international capital flows; public sector; CPI(M)-led state govern ments; withdrawal of the State and scope for popular intervention; and the Party stand on NGOs and self-help groups.

Stressing the need to understand globalisation (as the present phase of capitalist development is known as) in totality, Yechury explained the main features and the real intent behind this imperialist-driven process. As Marx pointed out, with the development of capitalism there would be centralisation of capital. And today the unprecedented levels of this accumulation of capital is best illustrated by the following fact: the turnover in the global financial transactions was estimated to be over $400 trillion, or, nearly 60 times the annual global trade in goods and services. This capital is always in search of predatory profits and therefore militates against any barrier to its flow. The report notes: "Thus, the laws of capitalist development by themselves created the objective conditions for the current phase of globalisation."

This process is creating conditions for the shaping of a new world order whereby the sovereignty of independent nations is being assaulted. Yechury underlined the three important features of the ongoing globalisation process namely, jobless growth, sharp widening of economic inequalities and reduction of purchasing power of the vast majority of the world’s people. These features render globalisation an unsustainable process. However, this would not happen automatically and would require concrete effort to convert it into a revolutionary process of transformation. At the same time, imperialism strives to make globalisation sustainable through intensified exploitation of the third world. The political objective is to seek the economic recolonisation of the developing countries. In order to thwart this and protect the sovereignty of the nation, it is imperative to engage with globalisation, said Yechury. The report explains this in the following words:

"The struggle for an alternative socialist order has to be based on the revolutionary transformation of the existing order. This, in turn, needs an engagement of the revolutionary forces with the existing world realities with the sole objective of changing the correlation of forces in favour of socialism. This process of revolutionary transformation has to be based on such an engagement and not on the wishful thinking of escaping from the existing realities. The entire history of the revolutionary movement led by the working class is the history of such an engagement with the existing realities in order to shape the material force required to establish the alternative in socialism."

Yechury warned that care must be taken to see that this engagement does not degenerate into revisionism. The communist goal of this engagement -- the weakening and ultimate overthrow of globalisation -- must always be kept in mind.

CAPITAL FLOWS

Regarding international capital flows, he said that as long as the socialist alternative to globalisation does not command a significant force internationally, the movement of foreign capital in search of super-profits would remain. The foreign institutional investment, which primarily flows into stock markets in search of speculative profits, can cause havoc to a nation’s economy as apparent in the East Asian crisis of the late nineties. The other, foreign direct investment, also flows into countries in search of profits. The report states: "As communists, we will have to deal with the situation by mustering sufficient social and political strength to impose conditions on such flows of international capital." Three main conditions have been specified. One, it must augment existing productive capacities; two, it must help in technological upgradation and three, such capital must lead to employment generation. In this context, the report notes: "While foreign capital will seek to exploit our natural resources and labour to garner super profits, the imposition of these conditions will, apart from making the task of eroding national sovereignty more difficult, render some benefit to the Indian economy and the people." Yechury highlighted the need to build a movement to pressurise the governments for regulating foreign capital flows by imposing these conditions.

One fall out of globalisation has been the intensified drive of privatisation. While having no illusions about the characterisation of public sector in our country – it was built by the bourgeois-landlord ruling classes to provide the basic infrastructure for advancing the capitalist path of development in independent India – the CPI(M) believes that the defence of public sector in the present juncture would be key to protecting India’s economic sovereignty. The report proposed that the public sector must be seen in three different entities: a) giant profit-making units in core and strategic sectors usually referred to as navaratnas; b) medium size profit making public sector units; and c) unviable, or, chronically loss making units.

Any erosion in the equity or the public-sector character of the former two categories of PSUs must be resisted. As far as the third category is concerned the report emphasised that first all efforts must be made for the revival of these units. Only when such efforts fail, the option of disposal of these units may be considered. The report underlined "Under all circumstances, the interests of the workers must be fully protected. The decisions concerning these units must be taken with the full confidence of the workers and the management by the government." The report advised that the same approach must be undertaken by the state governments in relation to state public sector undertakings.

Against this background, after underlining the crucial importance of the CPI(M)-led Left Front governments of West Bengal and Tripura, the report states, "Under globalisation, the neo-liberal policies reduce state governments to extreme penury, by reducing central transfer to them, by changing usurious interest rates on loans given to them (including even on small savings loans raised within the states themselves at much lower rates of interest), and by precipitating recessionary conditions and peasant distress. On the other hand, the imperialist agencies come with "aid packages" to these very governments (and especially attractive ones for the Communist-led governments with not too many conditionalities attached) to "help them out" of their fiscal predicament."

Suggesting the guidelines regarding these funds, the report states, "These governments, therefore, may accept aid for developmental projects but the important criteria that needs to be adhered to is that these should come with no recommendations of policy changes usually referred to as structural adjustment programmes. Many UN agencies like WHO, UNDP etc finance many such development projects. While such may be accepted, financial assistance from international bodies like the World Bank, ADB, DFID, JBIC etc may be accepted for developing the economy and relief to the people provided that there are no conditionalities attached."

Yechury said defending the CPI(M)-led governments in Bengal and Tripura and the vantage position in Kerala is the absolute imperative for all communists, and of all those ranged against imperialist globalisation. He warned about the imperialists design of weakening us in these states so as to curtail our role at the centre.

Noting that globalisation, by its very nature, implies the rapid withdrawal of the State from meeting its social obligations to the people, a trend that the CPI(M) strongly opposes, the report says that the withdrawal of the State ironically also throws up possibilities of popular intervention. It quotes the experience in the spheres of education and public health. While continuously opposing this abdication of State responsibility, the Party must simultaneously fight for bringing these private institutions under some social control in the interest of people. The report notes: "Such intervention, in itself, is an instrument of popular mobilisation against this privatisation… Such instruments of popular intervention must be strengthened. These, in the final analysis, will cumulatively accrue to the mobilisations and struggles against globalisation." The report then laid down guidelines to be adopted as regards foreign funding or governmental funding to Party-led organisations.

Noting the proliferation of non-governmental organis ations (NGOs)/voluntary organisations in the recent past (many of whom are funded by the government imperialists, including the World Bank), the report states that "these were consciously serving the purpose of diverting attention of the people from the organised Left and to wean away young activists." Yechury noted that the Party had 20 years back stated that foreign-funded NGOs were serving imperialist agenda. One of the main purposes of the donor agencies is to use the NGOs to spread depoliticisation. Fully conscious of their agenda and intention, we must utilise the space for mobilisation created by the activity of such organisations.

Finally, regarding the Party’s attitude towards Self-Help Groups (SHGs), Yechury first stated the ideological understanding of the World Bank and our bourgeois parties-led governments in promoting these groups. They project these groups as an alternative to rural credit which has drastically declined after liberalisation. Saying SHGs cannot be a substitute for institutional rural credit, he called for firmly opposing this approach. However, he noted that the Party cannot ignore these groups and that in some states there has been positive experience to the Party in its work among these groups. The report states: "While utilising the SHGs, we should refuse to accept the concept of using SHGs to further privatisation."

Discussion on this part of the pol-org report took place on April 10 in which a total of 35 delegates participated. (It is being covered in the ‘Congress Diary’ column which will appear in the next issue) Sitaram Yechury replied to the discussion on the morning of April 11. At the outset he noted that the response to this part of the pol-org report has been heartening and informed that the steering committee in its meeting previous night felt that the discussion has been useful. Responding to the sentiment that much more discussion and preparation within the Party is needed, the steering committee proposed that the document may be finalised and adopted by the new central committee after thoroughly going through the amendments received. The congress approved this proposal after the conclusion of Yechury’s reply.

Yechury reminded the delegates that the concept of engagement with existing realities is the essence of Marxism and not a creation of our Party or this congress. "What else is dialectics but engagement with existing reality", he said. The clear political objective of such engagement – strengthening the struggle against globalisation – must always be kept in mind. Underlining the necessity of adapting to changing realities, he recalled how the Party permitted private sector participation in the Haldia project of West Bengal government given the central government’s antipathy to the project. Yechury called upon the delegates and Party cadre not to fall prey to bourgeois media propaganda about the policies of the Left Front governments. He put forward the steering committee suggestion that before believing such reports about Bengal government’s decisions the comrades should cross check with the Bengal state committee.

Pointing to the scope available for popular intervention due to the fall out of globalisation (like the struggle for social control over private education institutes), Yechury said the Party must recognise the new avenues first and then utilise them effectively for strengthening the movement. Regarding accepting funds from foreign agencies, he said the bottom line is that no funds which have structural adjustment conditionalities will be accepted. "Anything that undermines popular mobilisation against imperialism we will not accept", he said. He acknowledged the good suggestions received through amendments regarding the classification of public sector units and assured that the new central committee will consider them. He also accepted that policy implications regarding agriculture needed to be incorporated in the document.

In conclusion, Yechury said the amendments received regarding this report were well-reasoned and formulated and the new central committee would discuss and finalise the document, which would help in shaping a common understanding on policy matters. When the presidium moved the proposal of the steering committee to let the new CC discuss and finalise this part of the pol-org report, the congress unanimously approved it.