Presentation -- CP India

Intervention by S. Sudhakar Reddy, Communist Party of India

Comrade Presidium,

Comrade delegates,

My greetings to all the delegates of this International meet of Communist and Workers Parties on behalf of the Communist Party of India.

Our Meeting is taking place in the midst of the most serious economic crisis, bigger than the Great Depression of 1930s. Some economists confine themselves to terming and analyzing it as a ‘financial crisis, which has at the same time affected the world economy and led to an economic crisis. They choose to term this as ‘economic meltdown’. All this is with a view to conceal its real character. These bourgeois commentators are afraid to call it for what it really is, viz. the crisis of capitalism.

A myth was sought to be created all these years that capitalism has now reached a stage where it is ‘crisis free’; that this is a thing of the past. Following the end of World War II, and the advent of the Scientific and Technological Revolution, the capitalist system they said, is on a steadily expanding course and the Free Market is fully capable of matching supply with demand; ward off any contradiction, and self-regulate prices etc. They were aware of the century-long history of booms and busts in capitalism. But now they thought, we had reached the stage of the ‘end of history’ and there was no longer any need to worry.

Our homegrown economists and the bourgeois political leadership had drunk deep from the theories of neo-liberalism. They were complacently looking at the soaring sensex, mounting foreign exchange reserves, growing inflow of foreign investments, and happily talked of the 9 per cent growth of the economy. They were blissfully unaware of the approaching crisis. They were caught by surprise when the crisis originating in the US, – that citadel of capitalism swiftly overtook one country after another and began impacting the Indian economy.

We are in the era of globalisation. The effect of the crisis is global, and not confined to this or that country.

Though economists in the past had noted the cyclical crisis that periodically overtakes the capitalist economy, it was Marx who analysed the laws of motion of capitalism, exposed its inner contradictions and explained the recurring phenomenon of capitalist crisis, arising from ‘over –production’, ‘over-accumulation’ in relation to the ‘aggregate demand’ of the masses.

In its drive for profits, for maximizing profits, capitalism expands accumulation and production at the same time revolutionizing the forces of production. Simultaneously it increases exploitation leading to the immiserisation of the working masses and leaving them in poverty so that the goods produced cannot be profitably sold. In Marx’s own words: “The ultimate reason for all real crisis always remains the poverty and restricted consumption of the masses as opposed to the drive of capitalist production to develop the productive forces as though only the absolute consuming power of society constituted their limits.”

To find a way out of the crisis that has engulfed them, the bourgeois ruling circles everywhere are pouring in billions of dollars from the public funds as bail-out packages for the captains of business and industry and for stimulating demand. The burden is passed on to the workers and the common people through retrenchment, closures, wage-cuts, price rise and so forth. Thus profits are in a way ‘privatized’ while losses are ‘nationalized’ and shoved on to the shoulders of the people. All this however cannot save capitalism from crisis as the very same system is sought to be continued. It is clearer than ever that the system has to be changed if we are to be rid of crisis.

Egged on by the imperialists and their financial institutions like the IMF, the World Bank and the World Trade Organisation which they dominate, India also became a part of the ‘Washington Consensus’ hoping this will enable it to advance and grow.

Liberalisation, privatization and globalisation and the Free Market system were pushed through as so-called economic reforms. The fast economic growth only led to unheard of polarization with a handful of multi-billionaires emerging, some rising to be among the richest of the world, with wealth equivalent to 25% of GDP of India in their pockets while 77 per cent of the people (84 crores) eked out an existence with less than Rs. 20 a day. More than one and a half lakh farmers committed suicide to get out of the misery of indebtedness and ruin. A large majority mostly from dalits, adivasis and muslim minorities were excluded from any process of development. This stark reality is forcing the ruling circles to speak more and more about ‘inclusive growth’. But this remains a mirage. Mean while corporate entities prospered and even turned into multinationals with mergers and acquisitions.

Prices rose to the skies. The common man could hardly meet his basic needs not to speak of accessing healthcare and education.

India avoided the disastrous effect of the financial crises to a great extent precisely because its financial sector was mostly in the public domain and the Left prevented it from being privatized. Even so the economic crises had an adverse impact, especially in the export industries, leading to heavy job losses, closures and retrenchment.

But the ruling party drew no lessons from the disastrous course of neo-liberalism. It went on pretending that there is nothing to worry about, that every thing will be soon alright, and in fact is already getting alright. It missed the opportunity to change course and prescribed even more of the same prescriptions. Nevertheless it is to be noted that an economy as big as of India was bound to pull its weight in the world.

Neo-liberal reforms have led to a situation where with all the vast resources in men and material that India possesses, it ranks very low in the human development index. Even in other Indices the position of India is very disappointing.

Taking note of the yawning disparities between the rich who are getting richer by the day and are vulgarly flaunting their wealth, and the desperately poor majority of people whose miseries are getting worse by the day, the ruling party is trying to carry out some reform measures. Such are for instance, the National Rural Employment Guarantee Act, the Right of Tribals in forests, the Housing Mission and so forth. We from the Left have supported these measures and are pressing for their honest implementation. But they have severe limitations. Such well-intentioned sectoral reform measures can hardly reverse the situation without a radical transformation of the capitalist system. They are at best palliatives.

Agriculture which is the source of livelihood for 65 per cent of our people, is in a state of chronic crisis. It suffers from the relics of the earlier land relations superimposed by aggressive capitalist offensives. Land reforms have been given the go-bye and there is talk of corporatisation and contract farming. Food production is severely lagging behind the growth of population. Hunger and starvation stalk certain parts of the land. Droughts and floods which periodically devastate one or the other region, further aggravate the situation.

Food security is a major issue confronting our people. This calls for increased production and adequate availability of all essential food items at affordable prices to all people. The farmer is the key player in food and agricultural production. Today, farmers are fighting for land (against land acquisition under the old Act from British colonial times), for cheaper prices for inputs, and remunerative prices for their produce, such as rice, wheat, sugarcane etc.

A country as big as India with a population exceeding 110 crores, cannot rely on food imports, except under exceptional circumstances. Food is the biggest political weapon in the hands of imperialism. India has experience of it, from the past. Today the country is faced with a similar situation. In the name of completing the Doha Round of negotiations under the WTO, pressure is being mounted on India by the USA in particular to compromise and sacrifice its interests in agriculture. That will adversely affect our farmers and the common people.

Trade unions of all shades of political opinions have come together and are organizing big united militant actions against high prices, closures and job losses, for a fair deal to farmers and agricultural labour and other sections of unorganized workers.

About 40 million people in India earn their livelihood from retail trade. This section is threatened by the aggressive designs of Wal Mart, Carrefour etc. in collaboration with big domestic corporate entities to take over retail trade. This is being pushed forward by Government inthe name of encouraging FDI in business.

Our rich mineral resources, – iron ore, manganese ore for instance, are literally being looted by MNCs. They are working in tandem with mine mafias who are enriching themselves fabulously at the cost of the nation.

All these sections are playing with Big Money to buy up unscrupulous bourgeois politicians, and influence our political institutions and limbs of governments. Money power is becoming a threat to our electoral system, and thus to democracy itself. Huge funds are stashed away in Swiss and other tax havens abroad. The government is dragging its feet in unraveling and combating these elements. Foreign hands and domestic operators are collaborating in these activities, which are also the sources of huge corruption in economic, political and social life. It is leading to a social and moral crisis in society. Communists and other left and democratic parties and elements are trying to alert the people against such evil forces.

American Imperialism is trying its utmost to draw India into a strategic partnership in support of its global designs. The series of Indo-US agreements signed in the recent years, especially the defence deals and including the Indo-US nuclear deal, in addition to their avowed purpose also impose curbs on our sovereignty and our independent foreign policy. US imperialism has also pushed India into defence agreements with Israel, which have made Israel the biggest arms supplier for India.

The Indian people have made untold sacrifices for their Freedom. They will not permit any power to subvert their Independence and sovereignty. But under the garb of globalisation in the economic sphere and strategic partnership in the defence and political sphere, the various moves of the government are cause of concern.

The election of Barrack Obama as President of the USA has brought about certain changes as far as the approach and some tactical moves are concerned, compared to the days of the Bush Presidency. But to think that this will eventually change the essence and character of American imperialism, will be wide off the mark. It is not any individual that is at the root of the American Administration and its military-industrial complex. They continue unaltered. The role of the individual can be appreciated within the framework of the social, economic and political forces that determine the system and the changes that are likely to occur within it. Therefore one need not harbour too many illusions about Obama’s Presidency.

Of course the present global crisis, the weakening of the dollar, a certain weakening of the dominant position of the US economy, an end to unilateralism and the growth and rise of several countries and groupings, have seriously undermined the American hegemony and destroyed the dream of the ‘American Century’, though it still remains and will remain for sometime more, the most powerful military and economic power. The world is today becoming multipolar. What is called for is the abolition of the world capitalist system and its replacement by a new system which emancipates mankind and ends the exploitation of man by man and of one country by another.

Global capitalism in its pursuit of super-profits is seriously destroying the environment, and endangering the civilized life of future generations. The resources of the planet are not limitless and with their depletion, human civilization will head towards a catastrophe.

Capitalist production and extended reproduction has ruthlessly exploited and ravaged nature, boastfully claiming to have mastered it. Developing countries, and even the rising socialist countries have unfortunately followed in the footsteps of the developed capitalist countries in this matter. Non-renewable sources of energy are being consumed at a rate that spells a looming catastrophe.

The world is today facing a climate change arising from greenhouse gas emission. The biggest culprit is the USA followed by the host of other developed capitalist countries. America refused to limit and cut its gas emission and failed to sign the Kyoto Protocol which was an effort at collectively regulating it. The Kyoto Protocol is due to expire in 2012, and the question is what after Kyoto. In the interest of mankind’s survival, and maintaining the eco-balance and biophysical condition of the planet, we have to ensure that mandatory and binding cuts are accepted by America and other developed countries, and that the developing countries are financially and technologically compensated, so that they are not left far behind in the race for growth and development.

The major issues that are confronting the working class and the people today are global. While developing mass actions and conducting struggles on local and national scale are very important, what is essential is developing coordinated international actions, launching solidarity actions and so forth. We have to recall the coordinated actions that took place against the meetings of the IMF, World Bank, the G-7 Economic Summit, the Davos Conclave and so on where the leaders of the bourgeoisie gathered to deliberate on how to maintain and intensify their hold and exploitation, how to maximize their profits. There was an element of spontaneity and the beginning of organisation in these actions.

The forthcoming actions have to be broader, draw in new sections of people and be widely coordinated with various organisations. Working class and its mass and political organisations have to play a leading role by taking the initiative in launching and developing such militant actions.

The present Meeting is of great significance in exchanging experiences and views of parties from various countries belonging to different continents, on all these issues.

Life has shown that capitalism is incapable of solving the problems of poverty, hunger and impoverishment. There is no social justice, under it and the mass of the people cannot aspire to a better life. The people’s struggle is leading them towards transforming this system and for bringing in socialism. The 21^st century will be the century of socialism.

Long live CPI.

Long live the unity of Communist and Workers Parties.

Long live Proletarian Internationalism.