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Cover Story

On the wrong lane...
Atul Kumar Singh Anjan, senior leader, CPI (M) explains how India has suffered because of the so-called LPG policy
Issue Date - 16/02/2012
A number of changes have taken place in the economy after 1990 when Prime Minister Narsimha Rao took office and Manmohan Singh was given charge of the finance ministry. While in some sectors green patches have developed due to the liberalisation of economy, in many places the negative impact of the liberalised economy and its cascading effect on the common people is also evident.

Post-independence, India has achieved a lot of prosperity in many fields in a relatively short span of time. This has largely been due to the public sector, our scientific and technological manpower, our effectiveness and our commitment. We have even gained sufficiency in many areas. Having said that, India has failed miserably in controlling the growing poverty and inequality. The new economic policy has been of liberalisation, privatisation and globalisation and this LPG policy has not paid dividends to the common people of the country. In fact, these policies have brought unemployment, recession, lockouts. Majority of the unorganised sector sees no future, they don’t feel protected.

True that the liberalisation policy has brought a number of people to the club of Asian billionaires, but judging their advancement as the advancement of the entire society is absolutely incorrect. I believe we neither live in a welfare state nor in a capitalist state. Liberalisation, to my mind, has given birth to three types of economies in the country. The first is the Sarkari capital (public sector), which is playing a very crucial role by providing the maximum employment opportunities in the country. The second kind of economy is the Darbari capital, where foreign multinationals come with Rs.2 billion, forge a Rs.1 billion tie-up with a local industrialist and raises Rs.20 billion from a nationalised bank to do business. With the same they set up their brands; their brand equities are being sold. They set up hi-tech industries with little job opportunities but capture the market and make 500% profits. Take the case of small cars and electronic components, where these multi-nationals squeeze money and send huge chunks to their foreign registered companies. The third kind of capital that has come to fore post-liberalisation is the Awara (vagabond) capital. This creates no employment, has no responsibility nor any accountability. This vagabond capital is basically the black money – it is the Rs.650 billion Telgi stamp scam, the Rs.1,760 billion 2G spectrum scam, Rs.700 billion CWG scam, the Harshad Mehta money and the Hasan Ali money. This vagabond capital has become a very inhuman tool in the hands of the new economic policy as it creates vagabond leaders, vagabond bureaucrats and a vagabond media as builders have now set up their own news companies.

I don’t think this is going to help our country in the long run. This liberalised economy has even tried to capture our Parliament and assemblies and one can see that over 300 crorepatis have become parliamentarians. They are so insensible that they do not even bother to attend parliament proceedings. They have entered parliament only to use the state power towards their own nefarious ends – to protect their money, their rights – and just to show that they have some influence in politics. These people are not worried about price rise, they are not ready to discuss why more than 2 lakh farmers have committed suicide. I believe that money has made our parliament and assembly insensible. Following these policies for a longer period will leave our economy on a slippery path where there will be no employment generation, no confidence and no sustained development.


Parimal Peeyush           

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