Showing posts with label UPA. Show all posts
Showing posts with label UPA. Show all posts

Saturday, September 1, 2012

West Bengal Left Front Govt’s Stand On Allocation of Coal Blocks


The prime minister in his written statement laid on the table of both the Houses of Parliament amidst din, said, amongst other things, that the Left Front government in West Bengal had opposed the auction process for allocation of coal mines. This is a distortion of facts. We are reproducing below a note on this entire matter that explains the stand of the CPI(M)-led Left Front government on this matter.

IN the context of the shift of strategy of the Coal India Limited (CIL) and its subsidiaries on the issue of mining of coal in the public sector, the central government took a policy decision in the mid 2000s to open up the coal sector to the private players in keeping with its policy framework to deregulate and privatise – a departure from the hitherto-followed-policy to strengthen the public sector in overall national interest. The policy of the central government was essentially tailored on the recommendations of the Hoda Committee, which the Left Front government had found detrimental to the growth of domestic industries.

With the ‘Policy Resolution on Industries, 1994’ in place, the Left Front government was mandated to achieve its Eleventh Plan objectives with focus on the core sectors like power and steel. Keeping this perspective in view and fully sensing the unfolding realities, the Left Front government requested the  central government to allocate Coal Blocks, which the Coal India Limited and its subsidiaries were not inclined to mine, to the state government to meet the industrial requirements of the state.

The union coal secretary vide his letter No. 13016/18/2005-CA.1 dated 21st September 2005 wrote to the chief secretary to the government of West Bengal  that “the central government is considering allocation of suitable Coal Blocks to state government undertakings /companies through government route provided that the state undertakings/ companies, i.e. Mineral Development Corporation /Power Utilities etc. are authorised to undertake coal mining in terms of the provisions of their Memorandum and Articles of Association .”

Subsequently, the central government constituted a Screening Committee with union coal secretary as chairman where representatives of various state governments were invited for discussion and decision on the allocation of Coal Blocks after examining the applications received from the state governments as well as from the private entities. So far as the Left Front government of West Bengal is concerned, it  requested the central government from time to time to allocate  20 Coal Blocks in favour of the West Bengal Mineral Development and Trading Corporation (WBMDTC)/ West Bengal Power Development Corporation Ltd (WBPDCL), under State Dispensation route through Screening Committee mechanism. The state government vide Commerce & Industries’ Department letter No. 10694 /Pr.S/C&I dated 18th June, 2007 submitted a list of 20 Coal Blocks (all located within the territorial boundary of West Bengal) for allocation.

It is to be noted in this connection that the Trans Damodar and Ichhapur Coal Blocks had already been allotted by the central government in favour of WBMDTC on 14.01.2005 and 02.08.2006 respectively. 

LF GOVT OPPOSED PRIVATE PLAYERS

Again, the state government through chief secretary’s letter No. 314-CS/2007 dated 24th October 2007 explained the state government’s perspective for allocation of Coal Blocks under State Dispensation route as well its concern against central government’s preference for the private players which constituted a marked departure from central government’s own policy as communicated vide No. 38035/2/97-CA dated 12th  December 2001 and No. 13016/18/2005-CA.1 dated 21st September 2005.

The  state government further vide chief secretary’s DO letter No. 314-CS dated 24th October 2007 wrote: “One of the options to meet… the requirements of coal for … the projects is, of course, to ensure availability through Coal India Ltd., and particularly Eastern Coalfields Limited (ECL) and Bharat Coking Coal Limited (BCCL). However, during our discussion with representatives of CIL, ECL and BCCL, it transpired that the present availability of coking and non-coking coal with these companies do not permit them to meet these additional requirements even in the foreseeable future.

“The second option, therefore, is to ensure availability of coal to these new projects through exploration and mining of virgin coal blocks recently put up for allocation by your ministry. But, at the same time, the state government is opposed to the idea of direct allocation of such coal blocks to these companies to guard against chances of diversion, non-utilisation/part utilisation and related unforeseen possibilities. The state government would like the West Bengal Mineral Development and Trading Corporation Ltd (WBMDTC), which is a fully state government owned corporation for mining and trading operations, to operate these new Blocks for meeting the requirement of new greenfield steel and power projects in the state.

“To our surprise, however, it has been observed that the Coal Screening Committee recommended allocation of such Coal Blocks to private companies in spite of specific recommendation of the state government that such Coal Blocks should be allocated only to WBMDTC. The recent recommendation of the Screening Committee on Gourangdih ABC may kindly be referred to. The state government is also unable to understand as to why private companies are being recommended for allocation of Coal Blocks which have been specifically earmarked for State dispensation/ government company route. In fact, all the 20 that we have previously requested for allocation to WBMDTC – all being to this specific category of State dispensation /government company route, we strongly feel that private companies should not be given access to Coal Blocks which have been earmarked for the State dispensation route. Another point raised by the Screening Committee in its meeting is that WBMDTC had in itself not applied for allocation of these Coal Blocks. Since WBMDTC is only a subsidiary corporation under the state government and since the state government as the principal body has specifically requested for allocation of Coal Blocks to WBMDTC as early as December 2006 and January 2007, we feel that the issue of WBMDTC having not itself applied for these Blocks is not relevant. The state government strongly opposes any allocation of Coal Blocks to any private company particularly those which are earmarked for State dispensation /government company route.”

The state government further stated to the central government vide chief secretary’s DO letter No. 107-CS/2008 dated 8th February 2008 that “the state government is fully conscious of the paucity of coal which is a useful industry raw material and the need for its optimal utilisation. Accordingly, our whole effort is directed to providing fillip to the coal mining process simultaneously through WBMDTC and private efforts, and at the same time, boost the industrial resurgence of the state.”

VIEWS ON THE NEW LEGISLATION

In 2008, the central government came up with a new legislative intent seeking to replace the existing Mines and Minerals (Development and Regulation) Act, 1957. The state government vide  principal secretary, Commerce & Industries, Department’s DO letter No. 2247/Pr.S dated 10th August 2009 communicated its views on the Draft MM (DR) Act 2009. A few changes were suggested. It was spelt out in the letter that the views of the state government as presented in the meeting convened by the central government in Delhi on August 10, 2009 would form part of the suggested changes. Among the views presented by the representative of the state government attending the said meeting in Delhi, the following  points deserve special mention.

“While competitive bidding for transparent and rational allocation process is a principle that cannot be faulted, the proposition neither defines the role of the states nor safeguards their interests. In fact, with this proposal the legal position, already tilted in favor of the central government, gets further distorted. Therefore, the state government urges that the power to invite applications to grant of mining lease should be devolved on the state government. However, while doing so, the qualifications of the applicants must be clearly defined and the bidding process must assign appropriate weights to the investments on account of value addition, end-use and improvement of infrastructure in the mineral bearing area.”

It was further communicated to the government of India that if the government of India persists with its proposal of vesting itself with the powers in the extant Act under the proposed amendment, the state government’s serious reservations against the proposition can be enumerated as given below:

i.                                            The Screening Committee route confers on the state governments the onus and freedom of making recommendations on the basis of value additions the end-use proponents desire to make. Despite the New Mineral Policy actively encouraging value additions, competitive bidding route will curtail such possibilities drastically, skewing further the imbalance between exploitation of mining reserves and captive mining. Needless to say, the two locations of captive mining and end-use project may not be co-terminus in the proposed regime.

ii.                                          Fast-track exploration needs, envisioned in the New Mineral Policy 2008 (NMP), would require simplified procedure to facilitate establishment of mineral reserves and inventory preparation by deploying state-of-the-art techniques, technology and equipment. This proposal militates against NMP’s stipulation of involving the private sector in a scientific and speedy prospecting and exploration process, given the Standing Committee’s caveat of only explored blocks being put to such competitive bidding. As per available information out of 17,300 sq. km of potential coal bearing area in the country, until the end of Tenth Plan, only 11,865 sq. km area has been regionally/promotionally explored. To cite a state-specific example, in West Bengal out of the total coal resource forecast of GSI of 28.32 billion tonnes, only 11.65 billion tonnes are in the proved category of which so far only 2 billion tonnes has been extracted. The hiatus between the available geological and extractable/extracted resources is too large to be ignored.

iii.                                        States like West Bengal, largely dependent on coal for thermal power generation, may get left out if competitive bidding is resorted for allocating coal blocks.

iv.                                       The financial strength of highest bidder would tilt the allocation process in favour of large companies. This would contravene the need for equity in allocation to small and medium producers, whose dependence on fuel supply linkage through public sector utilities would only grow.  The ground experience of poor qualitative and quantitative delivery management by these utilities especially after introduction of New Coal Distribution Policy 2008 is, however, not very encouraging.

v.                                         Despite abundance of coal resources in West Bengal, the state is totally dependent on coal allocation/ linkage of fuel supply by the union coal ministry for its upcoming new steel projects and ongoing power projects.  For both, its coal requirements can be easily met from existing reserves if the state is delegated the power of allocation of Coal Blocks located within its geographical boundaries. Such a step would not only save considerable money and time involved in allocation, but also substantially cut down the gestation period of these capital-intensive projects. Likewise, such decision for the power projects, whose fuel supply linkage is currently being met partly from ECL coalfields and partly from outside West Bengal, would end the criss-cross movement of coal, besides huge logistics operations for rail-road movement, rake availability and supply chain sustenance.

vi.                                       Production of steel, cement and sponge iron requires higher grade of coal with some specific properties while for power generation any kind of coal can be used. Sub-optimal utilisation of higher grade of coal in the competitive bidding process cannot be ruled out.

vii.                                     The Standing Committee has rightly highlighted the need for creation of Area Development Authorities for improving the community welfare and peripheral development in the mining areas through a special Local Coal Area Development Authority. Earmarking of funds for this purpose alone would leave the essential area of social development untouched by the highest bidder, as his priority would be to focus on maximum extraction in the mining area and maximum attention to end-use site.

viii.                                   The experience hitherto gained in captive mining allocation to private end-use projects does not evoke enough confidence that scaling-up of the process would accelerate the two processes of coal mining with commissioning of end-use project in a concomitant and time-bound manner.

It is necessary to mention that the government of India allocated to the WBMDTC only 6 Coal Blocks from  January  2005 to December 2007 under State dispensation/ government company route despite repeated request of the state government to allocate 20 Coal Blocks for meeting the industrial requirements of the state. 

Further, in response to the DO letter No. F-01/447 dated 7th November 2009 of the minister-in-charge of the Department of Commerce & Industries, government of West Bengal, the minister of state (independent charge) of coal, government of India, vide his DO letter No. 38036/1/2009-CA-I dated 20th November 2009 intimated that “at present there is no proposal for allocation of Coal Blocks either through government company dispensation route or Screening Committee route under consideration of the ministry.” In response to DO letter No. F-01/AD-533 dated 11th November 2009 of the minister-in-charge, Commerce & Industries Department, Govt of West Bengal, the union minister for  coal vide his DO letter No. 38036/1/2009-CA-I dated 17th December 2009 the views communicated were no different.

The state government of West Bengal had, however, been persistent in its efforts for  having the Coal Blocks allocated through State dispensation/ government company route from the beginning. In his DO letter No. F-01/196 dated 29th March 2010 to the union minister for coal,  the minister-in-charge, Commerce and Industries, Govt of West Bengal  reiterated the same stand but to no avail. The fact, however, remains that the state government of West Bengal had never opposed competitive bidding. What it has always insisted upon is that the ‘State dispensation route/government company’ route should not be bartered away to the private companies in the interests of the states.

People's Democracy, September 02, 2012

Sunday, November 13, 2011

A story of Two Ultimatums of Mamata Banerjee


KOLKATA: THE much-hyped ‘ultimatum’ of Trinamool Congress on the issue of petrol price hike proved to be a mere short-lived media exercise after the party MPs met the prime minister and meekly accepted his argument. Even more, TMC MPs and union ministers refrained from demanding an immediate roll back of the increased prices.

Mamata Banerjee, TMC chairperson and West Bengal chief minister exhibited an angry reaction after the recent hike in petrol prices. She argued that she was not consulted. Her allegation was that her party, though an ally in UPA, was not being consulted on major policy issues. She threatened that her party might pull out from the UPA ministry.

Immediately, there was a hue and cry. It was also reported in a section of the media that TMC central ministers have submitted their resignations to party chief.

Union finance minister Pranab Mukherjee played a spoiler when he asserted that the decision to decontrol prices of petrol was a collective decision of the union cabinet and TMC was very much a part of it. Left parties in West Bengal questioned the stand of TMC as they had supported 16 such hikes after they began to support UPA. The cut in petro products subsidy in the last union budget was supprted by TMC and Mamata was a member of the union cabinet at that time.

Finally, TMC MPs met the prime minister on November 8 at his Race Course residence. By then, the exhibited anger had evaporated. Trinamool Congress leader and union minister of state for health, Sudip Bandopadhyay, who led the delegation said, “We will not digest any further hike in petrol prices. In that case we will have to rethink our alliance with the UPA.” So, it is now “another hike”.

Some observers have pointed out that Mamata Banerjee was trying to pressurise the centre on a “package” for the state. The sudden outburst over the hike in petrol prices was just another ploy to bargain with centre. That too proved to be non-starter after the chief minister’s meeting with Pranab Mukherjee in Kolkata.  

While TMC was meekly surrendering on petrol price hike, the West Bengal chief minister's temper was on display elsewhere. At the receiving end was the Kolkata Police Commissioner and top ranking police officers.  Mamata Banerjee directly intervened and threatened those officers for arresting two members of her party for rioting and arson.

The incident occurred on Monday night after the chief minister unexpectedly stormed into a city police station and forced the release of two Trinamool workers. They had been arrested after an altercation with the police over bursting crackers outside a cancer hospital. A mob had even ransacked the police station, police cars were attacked and buses were stoned after the two men were detained.

But to everyone's shock, the chief minister rushed, within minutes, into  Bhawanipore police station, which falls under her constituency as well, shouted at the police officers and  ordered the release of Tapas Saha and Sambhu Sau. No case has been registered against them. Both of them are local TMC workers and close associates of chief minister’s brother. In fact, it has been alleged that the chief minster’s brother was involved in the violence that took place near the police station.

Now, it is the turn of police officers who have ‘dared’ to chase away TMC hooligans from the police station. They may be implicated in departmental enquiry and would have to face the music. CPI(M) state secretary Biman Basu has termed the incident as a brute example of  the partisan administration in the state.

Addressing a press conference in Kolkata, CPI(M) central committee member Md Salim has slammed the chief minister for allegedly pressurising the police. "It is reprehensible that the chief minister, who holds the Home (Police) department, herself stormed into a police station to force the police to release two detained persons," he said.

"The chief minister led her party workers for the release of the detained persons, who are her brother's associates, from the police station by force," the CPI(M) leader alleged.

West Bengal chief minister’s annoyance is perfectly 

measured: one for the prime minister and one for the 

road!

People's Democracy, November 13, 2011


MANIK SARKAR AT THE NDC MEET ON APPROACH TO TWELFTH PLAN



‘Improving Every Indian’s Life Must
be the Goal, Not Just GDP Growth’


Below we reproduce the text of the speech delivered by Tripura chief minister  and CPI(M) Polit Bureau member Manik Sarkar at the 56th meeting of the National Development Council held in New Delhi on October 22, 2011 to discuss the Approach to the Twelfth Five Year Plan.

AS we discuss the Approach Paper to the Twelfth Five Year Plan, we should be aware of a major milestone that we have just crossed, namely the completion of sixty years of planning in our country. Sixty years is a long time in the life of a nation, long enough to warrant our taking stock of the achievements of planning over this entire period. While there has undoubtedly been much increase in the size of our per capita gross domestic product (GDP) over this period, which is in sharp contrast to the last half-century of colonial rule, on the basic task of building a nation where each citizen is assured a minimum standard of life, where the gap between the rich and the poor does not widen over time, and where everybody feels a sense of belonging, our Plans have been a conspicuous failure.

This failure had already become apparent by the end of the 1950s, which is why a committee was set up by the then prime minister Jawaharlal Nehru in 1960 under the chairmanship of Professor P C Mahalanobis to go into the issue of “distribution of income and levels of living” and examine who had been the beneficiaries of the first two Plans. The committee submitted its report in 1964 and observed that “planned economy encouraged the process of concentration by facilitating and aiding the growth of Big Business”. For the planners of that time, “aiding the growth of Big Business” was a matter of concern; but, for contemporary planning, it has become not only desirable policy, but one deserving the highest national priority. This shift, which is the essence of our turn to neo-liberal policy, is justified in the name of increasing the growth rate of GDP. And it undoubtedly has ushered in an increase in the growth rate of the GDP compared to the pre-liberalisation period; but the gap between the rich and the poor has widened even more sharply under neo-liberalism, to a point where India is now home both to the most malnourished people in the world, even more so than Sub-Saharan Africa, and to some of the world’s richest billionaires. In fact, it is no longer a matter of just widening gaps. There is a process of absolute economic impoverishment going on which is as striking as it is dangerous for the future of our society and polity.

CONTINUING THE  FLAWED STRATEGY

The Planning Commission’s “poverty line”, which has been much in the news lately, obscures this process of absolute economic impoverishment.  But if we take the proportion of population accessing less than 2200 calories per person per day in rural areas and 2100 calories per person per day in urban areas -- which still constitute the official benchmarks for poverty, accepted even by the Planning Commission -- we find that in 2004-05 the figures were 69 per cent and 64.5 per cent respectively. In 2009-10, the latest year of large sample NSS, the figures have increased to 76 per cent and 68 per cent respectively. Thus on the most elemental criterion and on the basis of the most authoritative official data, we find incontrovertible evidence of an increase in the incidence of poverty in the most recent period. It is exceedingly difficult for any nation to hold together in the face of such a sharply accentuating internal dichotomy. This constitutes our most urgent problem today and one would have expected the Approach Paper to the Twelfth Five Year plan to do some introspection in this regard, to discuss how this accentuating dichotomy could be rectified. Instead we find the Approach Paper’s strategy being a mere continuation of what has gone on before. Like the Eleventh Plan, it also talks of “inclusive growth”, but since the above-mentioned increase in poverty occurred precisely during the period of the Eleventh Plan, when growth was supposed to have been “inclusive”, the continuation of the earlier strategy clearly would compound the problem instead of providing a solution. The Approach Paper’s basic strategy in short continues to be a flawed one.

There is an additional problem. The Twelfth Five Year Plan is being launched at a time when the world capitalist economy is caught in an acute crisis, of which no end is in sight. Meaningful planning requires what Professor Amartya Sen has called a “control area”, over which the planners have some control and hence a reasonable chance of ensuring that the objectives and achievements of the plan can converge. The insulation of the national economy, over which planning is being done, from unplanned shocks emanating from the world economy is a condition for such a “control area” to materialise. Even when there is no actual insulation, if no major unplanned shocks are likely to emanate, then too there may be scope for meaningful planning. But given the acute capitalist crisis, actual unplanned shocks from the world economy are bound to come our way, which makes this planning exercise tenuous.  In this backdrop, under the neo-liberal regime, India is closely integrated with the capitalist world, which places the entire Twelfth Plan exercise on an extremely shaky foundation.

For instance, the rupee has been sliding down against the US dollar for some time now, because of the predilections of globalised finance capital. This, by raising the rupee costs of imported goods, has contributed to the inflationary pressures in our economy, given the central government’s totally erroneous policy of “passing on” the costs of imported oil to the domestic users of petro-products. Now, with the Eurozone crisis getting intensified and the Euro getting increasingly weakened, there is likely to be a “flight to the dollar” which will further strengthen the dollar against the rupee and aggravate our domestic inflationary pressures, undermining whatever prospects of “inclusiveness” that the Approach Paper holds out before the people. 

INFLATION AND FOOD SECURITY

The current inflation is a worldwide phenomenon, especially in the capitalist economy.  To say this is not to suggest that nothing can be done about inflation. On the contrary, it can be effectively countered within the country, but through an altogether different set of measures. What it requires is a degree of insulation from the world economy on the one hand, and supply management, including the provision of essential commodities at fixed and affordable prices through the public distribution system to everybody, without distinction between APL and BPL, on the other. 

The Planning Commission has now announced that benefits will no longer be linked in future to the poverty line estimated by it, and that the “priority group” of beneficiaries will be selected on the basis of the socio-economic caste census that is currently underway. The census itself, of course, cannot determine who is poor; so the criterion for selecting the “priority group” will simply be so fixed that this group comes to a pre-determined percentage of the population. This is the logic of the draft food security legislation: it fixes beforehand what percentage of the population should constitute the “priority group”. This so-called “priority group” however is nothing else but a revival of the BPL-APL distinction in a new form. True, the percentage of population constituting “priority group” will be larger than what has hitherto been counted as BPL, but if the so-called “poverty line” of the Planning Commission makes little sense, then an arbitrarily pre-determined ratio of the poor (even if re-christened as “priority group”) makes even less sense. The only way that every Indian can be assured of a minimum living standard is to have universal public distribution of essential commodities at fixed affordable prices, universal healthcare, universal education at least up to a certain level, and universal employment guarantee. The de-linking of benefits from the Planning Commission’s “poverty line” must entail, to start with, a universal provision to the entire population of all those benefits which are currently available to the BPL population. And together with this there must be an Urban Employment Guarantee Scheme run by the centre on lines similar to the MGNREGS, as a rights-based programme. The basket of commodities covered under the universal PDS and also the scope of the Employment Guarantee Schemes will have to be enlarged.

To sustain and further strengthen and widen the scope of a universal PDS, the requisite supply management will have to encompass a stepping up of agricultural growth, including especially the growth rate of foodgrains production. This requires a whole set of measures whose essence is a re-engagement of the State in a supporting and protecting role vis-à-vis the peasantry, and hence a reversal of what has occurred under the neo-liberal dispensation when the State abandoned such a role. This no doubt will yield results in the medium term, but, given the fact that there are 60 million tonnes of foodgrain stocks with the government right now, well in excess of the “normal” level, and that the 2010-11 foodgrain harvest has been a bumper one according to the Approach Paper, increased public provisioning of essential items at fixed prices through the PDS can start right now. The fiscal burden arising on account of it is perfectly manageable, especially if the government resists its temptation to provide favours to the big corporate and financial interests, and gets them to contribute more towards tax revenue.

AGGRAVATED POVERTY

The commodity price increase that has occurred has hardly brought much prosperity to the petty commodity producers, but those of them who have to buy their food requirements from the market have been squeezed by the inflation in food prices. Other labouring classes and middle class employees, whose money incomes are not indexed to prices, have of course been its special victims. Even apart from the rise in the price index, there has been a process of dismantling of public services, forcing people to turn to private service providers and pay much higher prices. The net result of all these, as we saw above, has been a remarkable increase in poverty precisely during the eleventh plan period when “inclusive growth” was the plan objective!

The increase in poverty, defined in elemental nutritional terms, must not just be attributed to the crisis of the capitalist world. It had been occurring long before that crisis hit. Per capita food availability for the country as a whole, which had risen until the end of the eighties to roughly 180 kilogrammes per year, first stagnated and then came down precipitously during the period of neo-liberal reforms, reaching around 165 tonnes by 2008, even before the capitalist crisis. This decline is on account of the flawed trajectory of development that the country has been following under the neo-liberal dispensation, where the emphasis on GDP growth has been accompanied, as already mentioned, by a withdrawal of State support and protection from petty production, including peasant agriculture. This has meant not only a sectoral imbalance, between agriculture and other sectors, but a social imbalance, between the bulk of the working population on the one hand and the corporate and financial interests, together with their satellite groups, on the other. It is this which explains aggravated poverty under the neo-liberal dispensation.

This imbalance, producing aggravated poverty, was sought to be justified in the beginning by invoking a “trickle down” effect. But the emptiness of that argument was recognised in the Eleventh Plan document which still made GDP growth the main objective of planning, but no longer on the earlier argument that its effects would automatically “trickle down” to the poor; instead it advanced a new argument to the effect that with a high GDP growth it becomes possible, through State intervention, to lift the condition of the poor. Its slogan of “inclusive growth” aimed as before at a high GDP growth rate, but postulated in addition that the State should take away a part of this growing GDP to provide for the poor. To focus on this particular role, of taking resources away to cater to the needs of the poor, the Eleventh Plan suggested that the State should off-load some of its responsibilities in other sectors like infrastructure to the private sector, through Public-Private-Partnerships (PPP). But if “trickle down” had not worked earlier, “inclusive growth” too has been a failure.

This is to be expected: if the growth process itself is poverty-engendering, because of the squeeze it puts on petty producers and the entire work-force dependent upon them, then State intervention can negate its effects only partially but not completely. The very factor that makes the growth process poverty-engendering, namely the influence on the State apparatus of the corporate and financial interests who use it under neo-liberalism to enrich themselves at the expense of the vast mass of the working people, also negates the State’s ability and willingness to reverse this very process through fiscal intervention. The manifestations of this inability and unwillingness can be seen from the fact that the instrument chosen for affecting “inclusiveness” was a blunt one.

According to the understanding of the planners, the chief means through which “inclusiveness” was to be affected consisted of a set of centrally-sponsored schemes. These were of the “one-size-fits-all” variety, with no variations permitted for taking into account the specificities of the problems of different states. And each scheme demanded a contribution from the state governments, whose share was arbitrarily fixed by the centre and altered at its whim.  The states from the very beginning had been opposed to centrally-sponsored schemes, wanting instead a transfer of the amounts to themselves to launch schemes in accordance to their specific needs and priorities.  The centre not only systematically resisted this, but consistently undermined even such schemes as it introduced unilaterally, by making impossible and arbitrarily increasing demands for concurrent contributions from states. Thus the centre decreed an increase in the states’ contribution towards the Sarva Shiksha Abhiyan, despite a unanimous request from chief ministers at a meeting of the National Development Council not to do so. The Right to Education programme has been effectively dented by the centre’s refusal to transfer adequate resources to the states for implementing it. This arbitrary approach of the centre needs be changed to give flexibility to the states.

ALTERNATIVE  GROWTH STRATEGY

This poverty-engendering growth strategy itself must be abandoned in favour of an alternative strategy, which places the growth of agriculture, especially foodgrains, through State support to the peasantry, at its centre. The neo-liberal strategy talks of the importance of export markets. But a revival of peasant agriculture expands the domestic market; and the effect of this increase in the domestic market that includes millions of people is far greater than anything the country can hope to achieve in the international arena. The perspective of export-led growth through an open economy that underlies neo-liberalism, has to be replaced by an alternative perspective of growth sustained by an increase in the domestic market through a State-supported expansion of peasant agricultural output. In the latter scenario, not only can the economy be insulated against external shocks emanating from a crisis-ridden world capitalism, and planning acquires meaningfulness through the cordoning off of an appropriate “control area”, but the incomes of vast masses of working people, both peasants and agricultural labourers, can increase, and workers and employees in the non-agricultural sector can be protected against the ravages of inflation in food prices. The provision of cheap credit, of subsidised material inputs, of extension services, of State-initiated R&D support, and of assured remunerative prices, together with the introduction of land reforms, to break land concentration and distribute land among the landless, will have to be the central elements of this alternative growth strategy. It will run counter to the current trend of distressed peasants flocking to urban centres in search of non-existent work, and being forced to become part of the reserve army of labour; it will also entail a reversal of the current trend of dispossession of land from the peasantry in the name of “development” which leaves the dispossessed without adequate livelihood options.

A re-emphasis on the growth of peasant agriculture, as distinct from corporate agriculture, will also enlarge employment opportunities for the vast number of working people, unlike the current growth strategy. Of course, the unemployed and the underemployed cannot be made to wait for an increase in employment opportunities. They have to be provided work immediately, for which, as I have already mentioned, an Urban Employment Guarantee Scheme, to complement the MGNREGS, must be put in place immediately, and the scope of both Schemes expanded to make the right to employment a universal reality.

Together with emphasis on agriculture and the realisation of universal right to employment, there has to be a universal right to healthcare and education, at least up to a certain level. The neo-liberal strategy of development which permeates the Approach Paper to the Twelfth Plan aims at a commoditisation of education and healthcare, with the State coming in at best to support a target group, defined on certain criteria, with cash assistance. This is a completely misconceived strategy for a number of reasons. First, any targeting, given the extraordinary levels of deprivation in India, necessarily leaves out significant sections of the poor from its ambit. The only practical way of covering the deprived is a universal system from which the non-deserving rich will automatically opt out in any case. Second, any scheme of cash assistance provides an incentive to the private service providers to put up the prices of the services they provide. No attempt by the State to control these prices can possibly succeed, unless the State is itself in a position to provide these services through State-run institutions. And for an adequate numbers of State-run institutions to be there, the State has to play the primary role as service provider in these crucial areas of human resource development. Third, when it comes to education, we cannot overlook the important bearing it has on the whole project of nation-building, in creating a society that is free of patriarchy, caste and gender oppression and extreme inequalities. Commoditisation of education militates against these objectives, whose abandonment is tantamount to a flouting of the Constitutional mandate of the government. Hence there has to be a massive effort on the part of the State, primarily through its own institutions, to provide universal healthcare and education up to a certain level.

Likewise, there has to be universal provision by the State of potable drinking water. Privatisation of drinking water will price out the poor from this elemental necessity of life. Hence this must be a part of the services made available by the State free of charge, but through a system of rationing if need be. (Where a price is already being charged it must be kept low with an adequate subsidy). The central government must have a scheme for immediate universal provision of drinking water. 

The other area crying out for attention is housing. The current housing scheme “Indira Awas Yojana” is woefully inadequate both in its coverage and in the amount of money it makes available to the beneficiary households. State governments lack resources to implement housing programmes of adequate coverage, which provide adequate funds to the beneficiaries for decent housing; and the Planning Commission has been opposed to the idea of states making advance claims on the IAY funds due to them. Under these circumstances a scheme for universal and decent housing for deprived households must be formulated by the centre to eradicate homelessness completely within the Twelfth Plan period.

In addition to the above proposals, a special package has to be worked out for the SC/ST, OBC and minority households, not just religious minorities but other minorities as well. At present the only special benefit they get is through reservations and that too in the public sector. With the weight of the public sector declining in the economy, the benefit of reservation too is declining; and minorities, including even religious minorities, are deprived of these benefits in most states. Reservations must be extended to the private sector, including private educational establishments, and must be made available to minorities that suffer from socio-economic deprivation. But over and above reservations, there has to be a special package of assistance, so that these beneficiary groups can, among other things, benefit from the reservation policy itself.

PROBLEMS OF THE NORTH-EAST

The development strategy being pursued in the country at present also has the effect of widening regional inequalities. This is especially apparent with respect to the north-eastern region of the country, which continues to remain in a state of abject poverty and deprivation. The region suffers from an absence of infrastructure, meagreness of employment opportunities, underdevelopment of educational institutions, and a lack of diversification of economic activities. Not surprisingly, it has become an easy prey for secessionist and terrorist groups. The PPP route favoured by the Planning Commission for initiating investment projects is almost entirely irrelevant in this region, since very few investors are willing to come forward to invest, except with subsidies that are so large that the very rationale of PPP, namely, the need to supplement inadequate State resources by private funds, gets defeated. Even when the state governments take the initiative to develop some institutions with their own resources, there is usually a shortage of personnel for running them, since very few persons are willing to remain in the North-East, sacrificing careers in the metropolises or in the non-metropolitan heartland of the country. A number of steps need to be taken to overcome the problems of the north-eastern region, without which our very integrity as a nation will get threatened. I shall briefly mention some of them.

There is one problem which is common to all small states, including those in the North East, of which Tripura has been a special victim.  Any state, no matter how small, must have a minimum administrative structure which constitutes a fixed cost from its point of view. Smaller states therefore have a higher fixed cost per capita. When there are revisions of salary structure in tandem with Central Pay Commission recommendations, which the state governments are more or less obliged to follow if they are to avoid the invidiousness of unequal pay for de facto equal work, the fiscal burden for a small state increases to a far greater extent than for a larger state, even if the two have the same per capita income. Unless some allowance is made for this fact in determining the magnitude of resource devolution to states, which unfortunately the Thirteenth Finance Commission, using its so-called “normative approach”, has not made, states like Tripura suffer. For such small states, where Pay Commission-related expenditures impose a heavy fiscal burden and eat into Plan funds, enhanced Special Plan Assistance must be provided, for which a request has already been made by me to the honourable prime minister.  I would request that follow-up action on the request made by me may be taken by the central government at the earliest. In our federal polity while a state faces problem whatsoever whom it should approach and ask for help other than the central government?

Almost all the north-eastern states suffer from the problem of insurgency and have to undertake substantial expenditure out of their own resources for countering insurgency. This leaves less resources for expenditure on people’s welfare, which in turn contributes further to nourishing insurgency. Leaving insurgency-affected states to fend for themselves, which has been the practice till now, especially when the insurgency is latent as in Tripura, is totally counter-productive. Particularly and specially, the recurring expenditure undertaken for countering insurgency, therefore, must be shared between the centre and the concerned state in the ratio of 90:10, even when this insurgency itself may have become latent.

STEPS  REQUIRED

Starting institutions for higher education requires heavy construction costs. Such costs are beyond the capacity of the state governments of the North East in view of their resource constraints, and PPP, as already mentioned, is entirely inadequate for the purpose. But starting such institutions is absolutely necessary. In Tripura, for instance, our very success in spreading school education now makes the starting of institutions of higher education a matter of urgent priority. The centre must therefore take the responsibility of starting such institutions, particularly the technical institutions, in the north-eastern states.

Central government agencies like the Airport Authority of India, and even the Railways, which make handsome profits and which should be using these profits to cross-subsidise investment for meeting the infrastructure needs of backward states, tend instead to make states compete against one another in giving concessions to them, and invest where they get maximum concessions. This crude “capitalist” behaviour is against the logic of the public sector itself, and negates “inclusiveness”. This must stop, and government agencies must be enjoined to pay heed to the needs of backward states, especially those of the North East, whose connectivity with the rest of the country is as important for them as it is for the country as a whole.  

Connectivity must include above all an adequate communication network in north-eastern states, which is currently very poor. Even the internet connectivity that exists at present is woefully inadequate. The centre must develop a communication package for the north-eastern states, without which there will be little possibility even of attracting investment to the region.

Connectivity also requires adequate road links to the scattered hamlets in the region. The Prime Minister’s Grameen Sadak Yojana as it stands now provides for connectivity to villages with a minimum population of five hundred. This minimum must be brought down to one hundred, so that tribal hamlets, which dot the entire North East and which typically have less than five hundred inhabitants, get road connectivity.

The North East being properly connected with the rest of the country is only a necessary condition for its development, but by no means a sufficient condition. A development package covering industry, tourism and other promising sectors and outlining concrete steps that must be taken to give a boost to these sectors must be prepared by the centre in consultation with the north-eastern states. The economies of most of these states are already linked to those of the neighbouring countries, and the region will stand to gain greatly if these links are further strengthened. Tourism in the region for instance will get a big boost if tourist packages could be devised covering both, the states in the region and some neighbouring countries. For all this however, close and friendly relations with the neighbouring countries are essential. The need for such relations for the purpose of security is often readily appreciated; the need is equally great for the purpose of development too.

Notwithstanding severe constraints Tripura has taken significant steps to ameliorate distress in its largely poverty-ridden population. It has been providing a minimum amount of homestead land to every landless household in the state in a systematic manner. It has given rights over forest land to the tribal population. It has introduced an Urban Employment Guarantee Scheme, and it has vigorously implemented MGNREGS as well as Sarva Shiksha Abhiyan. It is because of these measures that the problem of insurgency that was so acute at one time has abated somewhat in recent years. But to sustain these initiatives, the central government has to come forward with a number of steps. Some of these, in addition to those listed above, are the following:

(i) In Tripura a significant non-tribal population has also occupied forest land for long, though under the existing legislation it is denied rights over this land. It must be given legal rights. The central government must take immediate steps in this regard. (ii) The tribal population which has obtained rights over land needs financial assistance for undertaking proper economic activities, obviously, of course, including cultivation. This assistance cannot be provided through MGNREGS; and the state government’s capacity in this regard is limited. The central government must therefore formulate a scheme for providing such assistance. (iii) I have mentioned above the need for a scheme that ensures universal and decent housing. As a first step towards this end, the Indira Awas Yojana must be made applicable to all SC/ST, OBC, Minorities and marginal households. They must be provided with subsidised and decent housing. (iv) The Rashtriya Krishi Vikas Yojana currently imposes “conditionalities” for eligibility for assistance, by way of minimum ratios for agriculture in state plan outlays. These, no matter how reasonable they may appear at first sight, are fraught, as experience has shown, with major problems of definition and classification. RKVY funds must therefore be made available without any “strings”.

Planning in India has come to be identified exclusively with the promotion of GDP growth rate, and, towards this end, the handing out of concessions to the private corporate sector and the financial interests, which are supposed to be the main agencies for effecting higher growth. This growth, by its very nature, is not only poverty-engendering, but also restricts the “inclusiveness” which the Eleventh Plan believed that fiscal intervention would achieve in the wake of higher growth. The Approach Paper to the Twelfth Plan has gone a step further and now wants to induct the private corporate sector even into the task of achieving “inclusiveness”, which only underscores the hollowness of its conception. It is time that the planners began “at the other end”, making the provision of a minimum standard of living to every Indian the direct and proximate objective of the plan rather than the growth rate, and worked out and arranged for the resources required for it.

The logic of such an alternative approach, as I have argued, will necessarily lead to a development strategy different from what the country has been pursuing under neo-liberalism. A minimum standard of life for everyone is incompatible with the poverty-engendering growth process that neo-liberalism unleashes. To ensure a minimum for everyone, we shall have to develop agriculture, introduce proper land distribution, revamp the public sector, and abjure the huge fiscal concessions that have been given out to the rich in recent years. But, even if the union government does not immediately accept my argument for an alternative development strategy, let us at least agree to provide a minimum standard of life to every Indian, and let the Twelfth Plan take concrete steps towards this. If planning aims at ensuring such a minimum living standard for every Indian we would have made a genuinely new beginning and fulfilled the promise of our independence.

Tuesday, June 17, 2008

On Agrarian Transition in West Bengal

By Surya Mishra

From THE MARXIST, VOL. XXIII,
NO. 2, APRIL TO JUNE, 2007
(ABRIDGED VERSION)

This article deals with changes in the agrarian situation in West Bengal over the last three decades, that is, since the inception of the Left Front Government in 1977. It also examines options before the Left Front at this juncture, as the Left Front Government strives to implement the policy programme to which it committed itself in the election manifesto issued before the Assembly elections of 2006. These are the specific objectives of this essay. The article deal with some issues of theory and policy before the Left Front Government and Left movement in respect of agrarian transition in West Bengal.

OPTIONS BEFORE THE LEFT FRONT

In the classical Marxist debate on the agrarian question, Lenin identified two distinct paths to the development of capitalism in agriculture, namely, the “Junker” (or “Prussian”) path (capitalism from above) and the “American” path (capitalism from below). Since then, the world has witnessed a rich variety of agrarian transitions, including those of present and erstwhile socialist economies and of countries in other parts of the Third World. The experiences of agrarian transition in India and in West Bengal have their own distinctive characteristics. While these experiences merit careful study, it can be stated with confidence that the capitalist development that has taken place in West Bengal in the last three or four decades is primarily a product of class struggle, that is, a form of capitalism “from below.” Given the situation in West Bengal today, what are the options before us? The CPI(M) has been of the considered opinion that production relations have to correspond to the degree of development of productive forces, and that a Marxist-Leninist assessment of the concrete situation, and of the correlation of class forces prevailing at the national and international levels, is required in this regard. After 1977, thanks to the land reform carried out by the Left Front Government, West Bengal achieved the highest agricultural growth rates in the country, and these were based on the productive performance of small farms. West Bengal made substantial progress in respect of rural per capita food grain consumption. It saw the sharpest decline in the country of income-poverty. The internal market expanded as a result of increased purchasing power in the hands of the rural masses. Above all, the policies of the Left Front Government changed the correlation of class forces in the countryside,a change that has been sustained for three decades. At the same time, there was some capital formation in the primary sector. Bank deposits in rural areas grew, and the State mobilised the highest levels of small savings in the country. Despite the fact that surpluses generated in the primary sector enhance the potential for the industrialisation of West Bengal, the class nature of the Indian state and specific policies of the Central Government have discouraged the industrial development of West Bengal.

Agriculture
With respect to agriculture, we certainly cannot embark on a policy of corporate farming in the way some other States have. These States have doled out vast stretches of agricultural land (on the pretext that they are wastelands) to agribusiness companies for captive farming. Some options, however, merit serious consideration.
First, we can upgrade small farms technologically. We can do so by mobilizing public and private investment, and utilizing contract farming arrangements in a way relevant and appropriate to our situation. This will enable us to replace, in collaboration with domestic capital, inefficient marketing systems as they exist today (and which have significant pre-capitalist characteristics). To ensure that the gains of this accrue the peasantry and the people, we have to depend on the bargaining power of the organised peasantry and regulatory measures by the Government.

Secondly, a functional consolidation of holdings, for instance by hiring in tractors and other equipment collectively, has emerged spontaneously in the West Bengal countryside.6 There is much room for organizing such initiatives in a planned manner. Cooperatives and self-help groups organised into clusters and federations can play a significant role in providing credit, other services, extension and marketing support. While it would be utopian to attempt large-scale cooperative farming or collectivisation in an age when even socialist economies like China or Vietnam have, on the basis of experience, gone in for decollectivisation followed by peasant farming, we must not be mistaken for those who eulogise petty commodity production from an anti-Marxist viewpoint and derive satisfaction from the collapse of collectives in the former USSR and elsewhere. The disastrous consequences of the forced dismantling of collective and State farms in former USSR have been noted even by bourgeois economists.

Thirdly, while de-peasantisation is not unexpected under capitalism, this phenomenon serves to emphasise the importance of using the possibilities of the National Rural Employment Guarantee Programme (NREGP) to the full in order to create employment and new assets. Such employment and asset-creation may be in the form of water harvesting, land development, plantation in the lands of land-reform beneficiaries, the creation of assets and employment for households below the poverty line, Scheduled Caste and Tribe households, and other schemes.

The Industrialisation Imperative

The seventh Left Front Government came to office with a mandate to go ahead with industrialisation and consolidate the gains in agriculture. It can be said that the issues of the conversion of agricultural land to industrial land and the issue of whether elections in the State were free and fair became the two main issues on which the electorate delivered its verdict. The electoral verdict was unequivocal, and the strength of the Left Front increased both in terms of seats and vote-share. Any vacillation or backtracking with respect to industrialisation would represent a breach of faith in the trust reposed by the people in the Front.
The issue is not of industry versus agriculture, as the Opposition – who are the known enemies of the peasantry – would have us believe. The issue now is that of industrialisation for the sake of the peasantry and agriculture itself. All that the State and its people have achieved on the agrarian front will be at peril if balanced growth of secondary and tertiary sectors fails to take off.
Nothing other than such growth can release the burden of the workforce dependent on agriculture and subjected to both pre-capitalist and capitalist mode of exploitation, thereby making a more equitable distribution of work and earnings among the workforce in all three sectors possible; ensure a more sustainable growth of the primary sector by providing inputs necessary for the modernisation of and higher productivity from this sector; add value to primary-sector products, thereby enhancing income and employment; and · augment revenue resources of the State Government, thereby enabling more public investment in the primary sector in infrastructure, inputs, extension and human resource development possible. In class and political terms, nothing other than such growth can deliver yet another blow to pre-capitalist elements and their politicalmentors; utilise the contradiction between Indian big bourgeoisie and imperialism and the difference within the ruling classes and their parties in the country in such a way as to develop a Left and democratic alternative by changing the correlation of class forces; meet the onslaught of globalised finance capital to de-industrialise our economy; and meet the immediate need of forging the broadest possible unity of the peasantry, working class, petty bourgeoisie and all patriotic and democratic sections of the people to resist the terror let loose by the grand alliance of the most reactionary section of the ruling class. As contradictions and the class struggle intensify, Right and Left opportunists, along with vacillating sections of petty bourgeoisie, the lumpen proletariat and both varieties of communal forces are sought to be mobilised into this grand alliance in order to isolate and attack the CPI(M).

History teaches us that this attack against CPI(M) will not remain confined to the Party. The situation in West Bengal is reminiscent of the 1970-77 period, although it is too early to identify and list the common features at the present moment. The design to expand the current attack to a semi-fascist offensive against the all sections of people, irrespective of their political affiliation, in this advanced outpost of democracy in the country, has to be properly understood and explained to the people all over the country.

ISSUES FOR DEBATE

Many issues of theory and practice have been raised in the aftermath of the events in Singur and Nandigram. Some of these proceed from the assumption that the opposition of the Left Front Government to neo-liberal economic policy is less sharp, and has somehow been blunted in recent times. Such a perception maligns the most advanced outpost of democracy. It not only ignores the Budget speeches and other policy statements of the Left Front Government, but also the stark reality that West Bengal has made the biggest contribution – inside parliament and outside – to the struggle against neo-liberal policies. Critics who say that the Left Front Government is to be criticised for not protesting against the imposition of neoliberal economic policies on the people have lost sight of the fact that it is because of this resistance that the UPA Government is unable to push through fully the neo-liberal agenda to which it is committed.

Industrialisation

With respect to industrialisation in the State, one position is that, since the only industrialisation possible under the neo-liberal regime is corporate industrialisation, it is anti-people, since very little, if any, new employment is created. This position rejects as baseless the argument that industrialisation is necessary because it will take surplus labour out of agriculture, and states that it is awareness of this fact that “makes peasants most reluctant to part with their land for industrial purposes.” Further, the argument goes, the situation in India today is not one of industrialists competing for the attention of State Governments, but of State Governments competing to attract capitalists to their respective States.

These arguments must be met squarely. First, they do not take into account the relative advantages of West Bengal as an industrial destination. We have mentioned the nature of changes wrought by land reform, and the situation with regard to small savings and other forms of capital formation in the primary sector. West Bengal also has a stable and transparent State Government and a vibrant system of local self-government. Its geographical location permits it to serve as a gateway for some 200 million people in the region, besides being a gateway to South East Asia. It also has a reasonably large pool of skilled workers. Going by our experience, we believe that the present situation, particularly after de-licensing and the partial withdrawal of freight equalisation, is more one of capitalists opting to invest in West Bengal than of the Left Front Government running after them to invest. The fact is that it was not the Tatas who threatened to go to Uttaranchal, but the grand alliance of anti-CPI(M) forces that threatened them and told them to move out of West Bengal. Nor must we forget that capitalists compete against each other and attempt to prevent their competitors from investing in “flagship” technology that threatens their own markets.

Secondly, it is useful to remember that the Left Front Government has never forced reluctant peasants to part with their land. It was the armed goons of the grand alliance who forced peasants not to transfer land in exchange for one of the best compensation and rehabilitation packages that have been offered in the country.

Thirdly, it is often forgotten that the Left Front Government in West Bengal distributes more land every year free of cost to the peasantry than it acquires for all purposes taken together – and the current period is no exception.

Fourthly, the Left Front Government has been able to make progress with respect to Public Sector Undertakings, Central and State. Over the last year, investment of Rs 10 billion for the modernisation of IISCO has been ensured; in addition, progress has been made with respect to the revival of Bengal Chemicals, Gluconate, Infusion India, as well as the fertilizer industry and the Mining and Allied Machinery Corporation.

The Left Front Government, too, is concerned about the limited potential of corporate industrialisation with respect to employment creation. In its last Party Congress, the CPI(M) emphasised the need to engage with the current situation, to look for new productive investment (including foreign direct investment that brings in new technology) and add to our productive capacity and ensure whatever employment growth is possible.

Thus, while the argument in question correctly opposes the Luddite argument against industry as indefensible, it also asserts that an employment argument for industrialisation is unacceptable. Our contention here is that the employment argument is valid, and serves to demystify the debate.

“Vulgar” Economy

Further, an exclusive reliance on the argument that industrialisation can be justified only on the grounds that it produces use values also has problems. As Marx wrote in the Afterword to the Second German Edition of Capital, “overwhelming and exclusive emphasis on ‘thing-ness’ (use value) is nothing but a modern variant of ‘vulgar economy’.”

Let us pursue this matter further. While opposing any method of analyzing a situation exclusively based on the materiality of objects, that is, its “thing-ness” or use value (the “vulgar economy” error), Marxist-Leninists must not make the mistake of passing judgments exclusively based on social relations as they appear, ignoring their material basis. These deviations represent opportunisms of Right and Left variety in the sense that they attempt to erect a Chinese Wall between “things” and “relations”, “use value” and “exchange value”, “concrete labour” and “abstract labour”, “productive forces” and “production relations”, and so on. A commodity represents a unity of opposites — its origin, development, decay and final disappearance being manifestations of the intensification of the contradiction between its use value and exchange value, which correspond to concrete and abstract labour respectively.
An error of some Left intellectuals and progressive scholars is that of assuming that this two-fold nature did not characterize pre-capitalist societies. Such an assumption implies that commodity production was non-existent in pre-capitalist societies, which was clearly not the case. The most concise definition of capitalism was given by Lenin when he stated that capitalism is a system of generalized commodity production where labour power itself has become a commodity. This definition differentiates capitalist commodity production from pre-capitalist commodity production.

The relevance of the issue under discussion in the Indian context must not be underestimated. Production relations continue to exhibit pre-capitalist fetters. This explains in part the vulnerability of our economy to the pressure of globalised finance capital.

Issues of Strategy and Tactics

It is our position that, with the big bourgeoisie, which is the leader of the bourgeois-landlord class alliance, increasingly collaborating with global finance capital in the pursuit of its bankrupt capitalist path of development, it is only a People’s Democratic state that can accomplish the anti-feudal, anti-imperialist, anti-monopoly and democratic tasks of the Indian revolution. The CPI(M) has much experience of the disastrous consequences of mixing up the tasks of different stages of revolution. The entire construction of those engaged in the battle against “vulgar economy” runs the risk of being misunderstood. It gives the impression that there is nothing much left to be done to abolish new forms of landlordism, the hegemony of the rural rich, and remnants of feudalism. The underlying view here seems to be that the focal contradiction between the landlords and the peasantry is being replaced by a contradiction between imperialism and the Indian people as a whole, that is, including the entire rural population. Such a view fails to understand that mobilising the rural poor against landlordism is critical to ensuring the broadest mobilisation againstimperialism.

While the development of capitalism in agriculture as well as the development of democratic and peasant movements have been uneven in the country, nowhere (including in the Left-led States) have pre-capitalist relations been eliminated. There are wide variations in the levels of socio-economic development and in historical background even among the three Left-led States, and it cannot be wise to offer a single set of solutions for all situations. For example, if one area in India today has a Permanent Settlement background, another has a history of predominance of ryotwari, and yet another a history of tribal-communal ownership of land with shifting cultivation.

Even today, a substantial part of the peasant economy in West Bengal is characterised by a combination of subsistence farming and commodity production. That West Bengal is the highest producer of rice and has a relative surplus with respect to rice production today is because of the fact that poor peasants who benefited from land reform have focussed almost exclusively on rice production to ensure their own food security. They had, after all, learned lessons from the food movement and its brutal suppression in the days when West Bengal was dependent on the supply of rice from the Central pool. Thus, a good part of the rice that these peasants produce is for their own consumption, and has only use value (and no exchange value). This is a form of security that they would like to protect.

The fact that capitalism tends to destroy petty production shows that precapitalist relations are inherent in such production. That these relations survived so long is not because the Indian state after Independence has provided support in the interests of getting “crucial petty bourgeois support” for strengthening the base of capitalist development. They persist because of the inherent limitations of the development of the capitalist path pursued by the Indian state, which
provides all its support for landlord capitalism (from above) and not peasant capitalism (from below).

Let us reiterate an issue raised earlier in the article. While the solution to the present problems of petty production does not lie in corporate agriculture promoted by neo-liberalism, it is utopian to talk of “cooperatives and collective forms” (if those are to mean cooperative or collective farming) as an immediate alternative direction for the Left movement. Following the cataclysmic changes in the international polity and economy in the early 1990s, the discussion in the CPI(M) on “Certain Ideological Issues” concluded that production relations have to correspond to the degree of development of the productive forces. The point here is whether the Indian Left today can afford an alternative that is currently only being experimented with in socialist states. We are aware of some of the experiments pursued in People’s Republic of China. It may also be relevant here to quote the experience of the Communist Party of Vietnam with regard to collectivisation and cooperativisation:
However, despite the positive factors, there was stagnation of production and food scarcities, given the lack of sufficient care of collective land. The life of peasants became more difficult and there were years when 3-4 million peasants suffered from food shortage while tens of thousands of hectares of land were left uncultivated…Thanks to the extensive and intensive reform already undertaken, Vietnam has been transformed from a food importing country into one that not only meets its own needs but can also export 4 million tons of rice every year.”

Similarly, the Cuban experience is that The economic mechanism of the agrarian state sector was based on centralised planning with restricted enterprise autonomy, a limited market and little use of prices and finance. The mechanism was intrinsically expensive, inefficient and bureaucratic, which explains the unprofitability and high subsidies needed to cover losses that became unbearable for macroeconomic balance during economic crisis of the 1990s.

The Cubans also recognise the existence of a powerful peasant sector, which is growing rapidly in the rural Cuban environment today. Of course we would prefer the cooperative peasant, once he represents a higher productive and social form in our society.

As mentioned earlier, we in West Bengal believe that while cooperatives can help a lot in providing credit, other non-land inputs and services, and other forms of support, functional collectivisation in form of farmers collectively hiring machinery and so on, can provide support to sustain peasant farming.

Some Left intellectuals not only lay lopsided emphasis on production relations or productive forces in isolation from each other, but also fail to take an all-sided view of other phenomena as well. There are problems of de-linking tactics from strategy, realisable demands from propaganda slogans, the immediate from the ultimate and, above all, practice from theory.

The CPI(M) has to work for many alternatives. These include the socialist alternative (achievable only after the People’s Democratic revolution has been accomplished); the People’s Democratic alternative, which requires “the actuality of revolution” to occur; and the Left and democratic alternative, based on programmes to advance the cause of People’s Democratic Revolution that are worked out in Party Congresses. Our Party-led State Governments, however, cannot be expected to implement any of the alternative programmes mentioned above. Within the constitutional and other limitations under which they function, they offer alternatives that fall short of full Left and democratic programmes.

It is clear that the alternatives that the Party proposes at the national level are not ipso facto applicable to Left-led State Governments. Sweeping formulations that do not take this distinction into consideration create confusion. When the Left Front Government talks about the need for “a shift of the agriculture-dependent population to manufacturing and other non-agricultural pursuits”, “competitiveness”, “Public-Private Partnership (PPP)”, “productivity increases”, “modernisation”, or even “investment”, “ development”, and “growth rate”, it is not unaware of the class content with which each of these terms is loaded. Terms such as these have meanings that vary with the class interests that underlie their use. Awareness of such class content also involves a recognition of the present change in correlation of class forces at the international level in favour, albeit temporarily, of imperialism. How the Party and movement are to engage with such a situation has partly been dealt with in the document titled “Certain Policy Issues” approved by the 18th Party Congress.

There must be no confusion in our minds with regard to the difference between “Xian” and “Yenan”. Defence of the CPI(M)-led Governments and the Left bastions in the country is an integral part of the struggle against neoliberalism.