The neoliberal policies of the government that started at the
wake of 1991 economic crisis have steadily moved the country towards ceasing of political
and economic powers in the hands of multinational corporate. The
fundamentals of the Indian democracy as laid by the Lahore summit of 1931 and
further concreted by the constitution of independent India is losing its
meaning. The idea of a socialist republic, a welfare state, equality, fraternity
and provision of fundamental needs to all the citizen of India has got no
importance in the policy making of today’s government. The recent bill on FDI
in retail and insurance is the latest addition to the neoliberalism of Indian
polity which will prove to be a pivotal point in the failure of the economic
structure of the country, once the bubble bursts.
Opening of the economy to the free cash and goods flow from
foreign investors needs a certain restructuring in the polity. In the modern
day scenario where majority of economies are developing, a large number of
investment opportunities are present in front of the investors, supported
mainly by the economic policies and availability of cheap labor force in the
country. India is just one of those many countries where the government is
restructuring its polity to facilitate inflow of capital. Finance capital above
all can easily move from one country to another, once the financial environment
is not favored to the investors. These movements can be quite large and the
economy can find itself in crisis. To avoid this, the government will always be
caught in an attempt to retain the confidence of the investors.
Once these policies come into full effect, the incapacitation
of the government will be independent of the party who comes into power. The
choice of people in the election will be of no relevance because whoever comes
into power will have the obligation to keep capital market happy. This will in
time conflict with the interest of the people because the interest of finance
capital will be kept above the interest of public, leading to the loss of
sovereignty of the democracy. A very prominent example of this dependence can
be seen in the elections held in India. Post reliance era, when major corporate
of India emerged by political assistance, the political parties started to
receive huge funds from the big business houses. In return, policies were made
in favor of the corporate, even though they were against public and national
interest. Further polarization of power happened after 1991 when the country opened
for foreign capital. The intervention of foreign governments and multinational
corporate in the policy making of the country became more and more evident. This
was one of the reasons for the decline in popularity of leftist parties, since
they had very little connection with business world.
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| The flag adopted in 1931 and used by freedom fighters the during the subsequent years |
The ill effects of FDI in retail are widely published in many
national and international journals and magazines. Further divide in the socioeconomic gap is eminent. The
struggle for ever shrinking means of livelihood and dis-appropriation of wealth
will further fracture the society. Regional politics and violence between
groups of people based on cast, creed, religion, region etc, can be an outcome
of such struggle. Example of which is violence against Biharis in Maharashtra
where Marathis were told that there unemployment is because of outsiders, was a
result of such struggle, fueled by political motives.
Now people who are playing the role of financial supervisors
in government are coming from the club of technocrats who talk the same
language as of the capitalists. Everything is now becoming market dependent and
favorable for people with ‘’primitive accumulation of wealth’’. Recent episode
in Maharashtra regarding sugar pricing is an example of how government is
favoring industrialists over peasants. Transfer of state property to capitalist
and permission to encroach peasants’ and tribal land is done by the government
in return of a fraction of this bonanza offered to the politicians. The
restriction of economic disparity between people of oppressed cast and others
as enforced by the constitution through reservation and subsidy is under attack
by market dependent forces. The responsibility of the state as promised by the
constitution to maintain the integrity, fraternity and dignity of the Indian
democracy is not being fulfilled and freedom we got by our struggle against
imperialist power is under attack by capitalist hegemony.
The way our economy is getting opened to foreign capital,
will create a vulnerable situation where the main driver of the economy will be
international capital flow. The addiction to attract foreign investment is evident
even now where stock market is largely stimulated by it. Once the bubble bursts, it will affect other sectors (like, IT, Agriculture etc) as well creating
immense financial pressure on the government. Even the IT sector of the country
which is the fastest developing sector and has bought lot of wealth to the
nation is also mainly dependent on the foreign clients. Denuding agricultural
land and ignorance towards local industry has dismantled the fundamental
structure of the economy and any destabilization caused by foreign capital
outflow will now pose an even more serious threat to the country and its people than
what happened in 91’.
The love of congress and BJP towards FDI is clear to
everybody, irrespective of whatever drama they create in the parliament. Major
parties like SP, BSP, AIDMK, NCP etc are all devoid of any fundamental ideology
and like any regional party are opportunists. They all support government’s
decision for closing its eye over the illegal activities carried out by them
and blackmail the government for favors. Left parties are entangled in internal
conflicts over ideology. They have to reformulate their ideology to support the
productive forces while maintaining the economic equality. Until they come out of
this dilemma, politically, very few options are left for the people. The
invertebrate politicians and bureaucrats are all set to sell out the nation in
the hands of capitalists. Now the question is whether some political party stands against these capitalist forces and restores the balance between capital
infusion, industrialization and public welfare or the public comes out of the
houses like what happened in ‘’IAC movement’’ and ‘’aam aadmi party’’ to form
an alternate government. I wonder how much the latter option will be effective!
If not these, then the dark period of Indian economy is coming. The stability
that we have achieved by our post independence conservative economic and
political policies will soon be mortgaged to the board rooms of multinational
corporate.
