Draft Political Resolution - 2oth Congress of Cpim

8/3/2019 Draft Political Resolution - 2oth Congress of Cpim

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Draf t Polit ical Resolution For the 20 th Congress(Adopted by the Central Committee in its meeting held from January 17 to 20, 2012 at Kolkata)

I N T E R N A T I O N A L

1.1 The period since the 19th Congress has seen the unfolding of the biggest economic crisisin the capital ist w orl d since the Great Depression of the 1930s. The cri sis is a direct outcome ofthe neo-liberal capitalist trajectory driven by international finance capital. This prolongedcrisis poin ts to the unsustainabil it y of f inance capital-driven globali sation. There are growi ngprotests worldw ide against the neo-li beral order and i ts impact seen in i ncreasing inequalit iesand rising unemployment. More and more people are coming out in the advanced capitalistcoun tri es against the vi cious attacks on their l iveli hood and social welfare benefits.

1.2 Faced wi th prolonged economic crises, imperiali sm led by the US is try ing to shi ft theburden of the crisis on to the developing count ries and in tensify ing its mil itary in terventionthrough NATO in West Asia and other regions. On the other hand, the Left governments inLatin America have shown that there is an alternative to neo-liberalism. The trend towards

mu lti -polarity has strengthened and the trend of regional cooperation has grown, especiall yin Latin America. Resisting imperiali st hegemony and bui ldi ng progressiv e alternatives to theneo-liberal order comprises the main challenge today before the Left and progressive forcesworldwide.

GLOBAL CAPI TALI SM I N CRI SI S1.3 The global economic crisis whi ch started in 2007-08 was brought about by thedepredations of finance capital through reckless lending and speculation. The big businessand private financial institutions which had perpetrated the crisis were bailed out by theState in the US and Europe by pumping in bi l l ions of dol lars of tax payers money. Once theywere salvaged, the imperial ist powers especiall y the US, Germany, France, UK startedadvocating austeri ty measures and cutbacks in publ ic spendi ng to shi ft the burden on to the

working people. Unemployment, evictions from homes and drasti c cuts in social wel fare arethe austeri ty measures for the people, whi le the banks and financial companies are onceagain making big profi ts at the expense of the state exchequer.

1.4 The World Economic Situation and Prospects 2012released by the UN in December2011 notes the growth slow down of the world economy from 4 per cent in 2010 to 2.8 per centin 2011, warning that there is a risk of another round of recession. The report says that thedeveloped economies of the US, Europe and Japan taken together would grow only at 1.3 percent in 2012.

EUROZON E DEBT CRI SI S1.5 The sovereign debt crisis in Europe is th reateni ng to unravel the European Union. The

debt crisis is a result of economic recession and falling government revenues coupled withcorporate and bank bailouts by the state exchequer. Corporate debt has been converted intosovereign debt. The public debt to GDP ratios of the developed countries have increasedsharply since 2007. Greece has been affected the most. Rather than restructuring Greek debtand aiding its economic recovery, the EUIMF combine has imposed stringent austerityconditions against loans to the Greek government. This has deepened the recession in Greeceand compounded its debt problem. There is widespread fear about a Greek default, which willimpact several i nternational banks and the financial markets.


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1.6 Other European countries are also facing a serious debt crisis. The fiscal austeritymeasures un dertaken in response to the sovereign debt crisis across Europe, rather thansolv ing the problem, have been fu rther weakening growth and employment prospects. Thereis apprehension regarding sovereign debt defaults and the future of the euro. The EUcoun tri es, wi th the exception of Britain , at the instance of France and Germany have agreed toa fiscal union agreement in order to restore confi dence in the euro. Thi s w i l l mean a loss ofsovereignty of the European nations on their national fi scal poli cy. Budget defici ts and publicspending wil l be drasti cally curtailed leading to lower growth and higher unemployment.

I M PACT OF CRI SI S1.7 The unemployment rate averaged 8.6 per cent in the developed coun tries in 2011. Theunemployment rate in the US has remained over 9 per cent since 2009. The ILO estimated thatby the first quarter of 2011, almost one third of the unemployed in developed countries hadbeen w ithout a job for more than one year, the situation affecting about 15 mi ll ion workers.The jobless rate among the youth i n developed coun tries increased from 13 per cent i n 2008 to18 per cent at the beginning of 2011. The drastic public spending cuts being implementedtoday are leading to a further deterioration of the employment situation.

1.8 The gap betw een the ri ch and poor in the advanced capi tali st coun tries has reached i tshighest l evel for over 30 years. An OECD report fi nds that the average income of the richest 10per cent i s now about 9 ti mes that of the poorest 10 per cent across the OECD. In the Un itedStates, the total wealth of the top one per cent i s more than the total wealth of the bottom 90per cent. With the housing boom col lapsing, in the Un ited States, mi ll ions of houses havebeen repossessed by the banks whi ch had mortgages on them. More than one mi l l ion houseswere lost to Americans in 2010 alone. This has badly hit the middle classes.

DEVELOPI N G COU N TRI ES1.9 The major developing coun tri es have sustained a relatively higher growth rate duringthe past four years compared to the developed capitalist countries. These emergingeconomies were invited into the G20 after the G8 proved unequal to the task. With the

longevi ty of the economi c crisis these countri es are also w itnessing a slow down in the pace ofeconomi c growth. Another recession i n the developed countries w ould have a signi ficantadverse impact on the developing countri es through slowdown i n exports, decl ine of primarycommodity pri ces, and reversal of capital inf low s.

1.10 The relative strength of the economic power of the emerging economies, parti cul arlythat of the BRICS countries, indicates shifts in the balance of economic power. The crisis inEurope and the relative weakening of the economic power of the United States presages thesharpening of inter-imperialist contradictions. The growing strength of the emergingeconomies will have a complex impact on the contradiction between the developedadvanced capitalist countries and the developing countries. The effort by imperialism tomaintain its hegemony and to rely on the ruli ng classes of the developing countries is bound

to intensify the contradiction between imperialism and the people of the developingcountries.

I M PERIALI ST / N ATO IN TERVEN TI ON S1.11 The global capital ist cri sis and the weakening of the US economy and those of thewestern countries are accompanied by the unabated aggressive manoeuvres and militarismby imperialism. In such a situation, US imperialism is even more determined to maintain itshegemonic influence. In order to do so, it is utilizing the NATO as the global instrument ofdomination.


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AFPAK STRATEGY I N DI SARRAY1.12 In Afghanistan, President Obama sent 30,000 more troops in 2008. The war against theTali ban has not made much progress. M ost of the NATO all ies have begun withdrawingtroops from there. The Un i ted States has announced that i t w i l l withdraw i ts combat troops by2014 but intends to maintain i ts mi l itary base w ith 25,000 soldiers stati oned there after that. Inthe meantime, the US hopes that the Afghanistan army w i ll be bui l t up to coun ter theTali ban. The US effort to get the Pakistani armed forces to be in the front li ne of the waragainst terror by clearing the border provinces of the extremist forces has gone through atortuous course. The relations betw een the Pakistani government and the Uni ted States havebeen strained. The Pakistani army refused to act against certain extremist groups based in theborder areas of Pakistan. The kil l ing of 24 Pakistani soldiers by U S air str ikes on the borderoutpost with Afghanistan has led to a serious rupture. Pakistan has closed the land route ofNATO suppl ies to Afghanistan and closed the airbase used by the US for i ts drone attacks.After a decade of U S intervention, the region is sti l l destabil ized and the so-called war onterror has fuelled further extremism and terrorism.

AGGRESSI ON I N N ORTH AFRI CA & WEST ASI A1.13 After Afghanistan, NATO was used for the mi l itary interventi on in Libya. After the

toppling of the Gaddafi regime and his brutal murder, Libya has come within the westernsphere of i nfluence. Syria i s the next target. I t i s the onl y secular Arab regime left i n the region.Efforts to foment a civi l war uti l izing Turkey, a NATO partner as the base, are aimed at regimechange in a country whi ch has so far refused to accept the imperiali st dictates. The fi nal targetis I ran, the only country w ith major oi l and gas reserves that is outside the influence of theimperialist bloc in West Asia. Apart from the US sanctions, in a hostile move, the EuropeanUni on has decided to ban import of I ranian oil from July 1, 2012.

1.14 In I raq, after over eight years of wanton aggression and occupation, the US haswithdrawn its troops after fail ing to get the I raqi government to sanction the existence of USmi li tary bases. Instead, the US wi ll maintain an enhanced force in Kuwait next door andstrengthen i ts naval presence in the Persian Gulf.

1.15 The Uni ted States w il l be using the regime change in Libya to advance it s interests inAfrica where i t has a growing mi l itary presence and an Africa Command (Afri com). Theformation of a new State of South Sudan by the div ision of the biggest country i n Africa,Sudan, is also sought to be uti l ised by the Uni ted States which hopes to establ ish a largemi li tary base there under the Afri com.

1.16 In the Asia-Pacifi c region, the United States is increasing i ts mili tary presence andforging all iances for i ts poli cy of containi ng Chi na, wh ich i t sees as the main strategic th reat inthe comi ng decades. Japan, Australia and I ndia are seen as partners by the United States inthis strategic design.

1.17 Barack Obama, when he assumed offi ce as President, sough t to project himself as apeace-maker. I n practice, he has served the interests of the US rul ing classes by dispatchingmore troops to Afghanistan, launching the aggression on Libya in collaboration with Franceand Britain, and ratcheting up tensions w i th I ran using the nuclear issue as the pretext. Whathas changed is the conscious effort under President Obama to get on board the all ies in Europefor joint interventions in West Asia and other global issues. The use of NATO as a collectiveinstrument for the imperial ist order reflects th is cooperation.


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POPU LAR U PRI SI N GS I N ARAB COU N TRI ES1.18 The popul ar uprisings in the Arab w orld are a signif icant development. They werefuelled by spiralling price-rise, unemployment and despotic rule. The revolt in Tunisia led tothe overthrow of the auth oritarian regime of Ben Al i . Close on the heels of the Tun isianuprising came the historic peoples revolt in Egypt which brought down the 30 year-oldMubarak regime. The popular uprising in Egypt, the biggest Arab country, posed a real threatto the US strategic designs in West Asia. The Uni ted States had reli ed on Egypt for control l ingWest Asia, using the Israel i -Egypti an al l iance as the lynchpin. Popular upr isings th reatenedto engulf the despoti c regimes backed by the US such as in Bahrain and Yemen.

1.19 To hi jack and divert such popular upri sings, the US and its NATO all ies engineered theintervention i n Libya u ti l ising the protests against the Gaddafi regime. Thi s was accompaniedby the US-approved Saudi intervention to suppress the protests in Bahrain whi ch hosts theheadquarters of the Fifth Fleet of the US navy. Efforts to destabi l ize the Syrian regime are alsopart of this process. In Tunisia and Egypt, elections were held and Islamist parties havesecured a dominant posi ti on. The mili tary counci l continues to exercise control in Egypt. TheUS is w il l ing to countenance Islamist forces comi ng to power in these countries provi dedthey do not challenge US interests and imperial ist hegemony in the region.

PALESTI N E & ISRAEL1.20 The popular upsurge and the overthrow of the Mubarak regime in Egypt had i ts impacton the Palestini an movement. The Fatah and Hamas have establi shed a better workingrelationship. The Palestinian move for membership of the United Nations met with widesupport in the General Assembly. Israel, which had launched a ferocious attack on Gaza in2009, became alarmed by the events in Egypt. Israel is refusing to stop its settlement buildingwhich could set the stage for peace talks. Within I srael, there have been mass protests againstthe deteriorating l iv ing condi ti ons of the people. The I srael i leadershi p is adopting a bel l icoseattitude towards Iran and is even contemplating preemptive military strikes against itsnuclear i nstallations.

RESI STAN CE & PROTEST M OVEM ENTS1.21 The prolonged capital ist crisis and the steps taken by i nternational fi nance capital andthe ruling classes to impose austerity measures and pass on the burdens to the people haveled to an erupt ion of struggles and protest movements in Europe, the United States and otherdeveloped capitalist countries. In Europe, Greece, the epicenter of the debt crisis, has seenconti nuous protests and general strikes in the last two years. There have been mass protestsmainl y by the youth in Spain and general stri kes by workers in Portugal, I taly, France, Britainand other countri es. Students and youth are in the forefront of the protests against cuts ineducation and rise in tui ti on fees.

1.22 The Occupy Wal l Street protest in New York which began in September 2011 againstbank bail outs, corporate greed and the unchecked power of Wall Street, got the support of

large sections of the people. The protests spread across seventy cities in the US and spurredsolidarity actions in eighty-two countries. In the US, the trade unions, students and othersections of the people joined the protests, bringing to the fore the issues of unemployment,homelessness, income inequal iti es and the subversion of democracy by the big corporates andfinancial elite. The police have evicted the protesters in many cities using force andrepression, but the movement continues.

1.23 Wi th the crisis in Europe showing no signs of abatement, the anti -capitali st protests arebound to intensify in the coming days. The social democrati c governments got discredi ted forpursuing the neoliberal austerity measures. While these mass protest actions are going on,


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ut i li zing the effects of the crisis, growing joblessness and cuts in social benefits, the ri ghtw ingforces are seeking to exploi t the discontent among the people by targeting immigrant workers,arousing racial feelings and Islamophobia. The danger of rightwing authoritarian forces hasgrown.

1.24 The current protests and struggles are taking place in the absence of an effecti vepoli ti cal alternative force. I t i s th is absence wh ich enables the rul ing classes to carry on w ithadjustments and burdens being passed on to the people. The building of a strong Leftalternati ve alone can assure any substanti ve changes.

1.25 In Russia, popular discontent has been rising against the rul ing regime and therapacity of the capitalist order whi ch fattens on the plunder of the oi l and gas resources of thecoun try . In th e December 2011 parli ament elections, unfai r means were adopted to prop upthe ruling party, United Russia. There have been big protests against these undemocraticmethods. Despi te these malpractices, the Russian Communi st Party got 19 per cent of the voteand 92 seats in parliament, emerging as the main opposition party, thus indicating itsgrowing popularity.

LATI N AM ERI CA1.26 The advance of the Left forces in Latin America and the pol icies adopted by the Left -oriented governments there have challenged the neo-liberal orthodoxy and the traditionalUS imperialist i nfl uence in the region. Venezuela and Boli v ia have been in the forefront inimplementing policies which have reversed privatization, established state control over oiland gas resources, promoted collective enterprises and ushered in democratization of thepolitical system. Along with the governments in Ecuador and Nicaragua, they have focusedon improving health care and education, and redistribution of wealth to reduce incomeinequalities.

1.27 The existence of Left governments is a resul t of the prolonged struggles of the worki ngpeople and the popular movements against neoliberalism and privatization. The series of

electoral victories and election or reelection of Presidents in Bolivia, Uruguay, Brazil,Argentina, Nicaragua and Peru are an affirmation of the political trend in Latin Americawhi ch i s posing an alternative to the neo-l iberal globali sation.

1.28 The formati on of the CELAC, the Community of 33 Latin American and Caribbeannations in December 2011 in the Venezuelan capital is a significant development. While allthe Latin American count ries have joined together, the US and Canada have been kept out ofth is regional grouping. Thi s marks a clear break from US hegemony in the region.

SOCI ALI ST COUN TRI ES1.29 The remarkable economic growth of China has continued in the past few years. I t hasemerged as the second biggest economy after the United States. China weathered the global

fi nancial crisis more effecti vely than other countries. The Chi nese government responded tothe global f inancial crisis by providing a massive fiscal sti mu lus for developing infrastructure,rural development and boosting domestic demand, unlike the corporate bailouts in theadvanced capitalist count ries. Chinas rate of GDP grow th has been 8.7 and 10.3 per cent in theyears 2009 and 2010 respecti vely. How ever, the rapid economic grow th has beenaccompanied by w idening inequali ties in terms of income and wealth distribution, regionaland social development, ri se in corruption and the resul tant tensions. The grow ing economicstrength and infl uence of Chi na has led to the Un ited States responding with di plomati c,polit ical and mi li tary moves to contain the in fluence of China in the region.


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1.30 Vietnam has also registered steady progress. I t recovered from the im pact of the globalrecession and i n 2010 it registered a GDP grow th rate of 6.78 per cent, though the problem ofhigh inflation remains. Vietnam has made progress in reduction of poverty and in thedevelopment of backward regions.

1.31 The DPRK has been rebuffi ng the various efforts by the US and its all ies to isolate it. TheDPRK has strengthened its economic ti es w ith China and Russia in the recent period.

1.32 Cuba has successful ly ral l ied the Latin American coun tries across the board to counterthe US blockade and embargo. This success can be seen in Cuba becomi ng a member of thenewly formed Community of Latin American and Caribbean countries. Cuba has adoptedeconomic reforms to allow small entrepreneurs and self-employed enterprises and regulatedmarket relations. Through these reforms, Cuba hopes to rejuvenate its economi c and social setup. Cuba continues to have themost advanced publi c educati on and health systems.

M U LTI -POLARI TY

1.33 The global economic crisis has enhanced the importance of the developing countries in

the world economy. This was reflected in the formation of the G20, in order to coordinateeconomi c poli cies globally, for which the G8 was no longer sui table. The formati on of theBRIC groupi ng in 2009 of Brazi l, Russia, India and Chi na, which has been expanded to BRICSwith South Afri ca in 2011, is in keeping with the increasing weight of developing countries.The BRICS is coordinati ng i ts positi ons on issues like UN reforms, in ternational trade, cli matechange, etc., and seeking more say for the developing countries in international fora. Thisgrouping w i ll acquire more signi ficance when cooperation on economic issues gets extendedto common political positions on international issues. In Latin America, regional blocs haveadvanced. The formation of CELAC w ithout the US and Canada signi fies the new trend. Earlierthe formation of ALBA (Bolivarian Alternative for the Americas) was a major step. Russia isalso pushing for the expansion of the Shanghai Cooperation Organi sation. The i nclusion ofregional powers li ke India, Pakistan and I ran in the SCO w i ll strengthen the trend towards

multi -polarity in w orld affairs.

CLI M ATE CH AN GE1.34 The 19th Party Congress had noted the threat posed by cli mate change and thedisastrous consequences for the world if emissions of greenhouse gases are not checked. Theclimate crisis is a consequence of the predatory and iniquitous nature of global capitalism.Advanced capitalist countries with about 20 per cent of the worlds population haveContribu ted 74 per cent of the accumulated carbon dioxide in the atmosphere whi le thedeveloping countries with 80 per cent population have contributed only 26 per cent. Whilethe developed countri es have thus largely caused the cl imate crisis, its impact is going to befelt most by developing countries and the worlds poor.

1.35 Developed coun tri es as a whole have not honoured their Kyoto Protocol commitmentsto reduce their emissions to 5.2 per cent less than their 1990 emissions by 2008-12. The US,which reneged and never ratified the Protocol, has actually increased its emissions by 17 percent. The developed countries led by the US are pushi ng the burden of reducing emissions onto the developing countri es and maximise their share of future atmospheric carbon space wellbeyond their fair share. Equi ty requi res that each person on earth is enti tl ed to an equal shareof the global atmospheric commons. Yet, brushing aside this self-evident principle of percapita ent i tl ement, US wants developing count ries l ike India to also cut i ts emissions, w heni ts per capi ta emissions are less than 1/13th that of the US.


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1.36 From Copenhagen to Durban, successive climate conferences have weakened globalemissions regul ation and di luted the principle of equi ty in per capita emi ssion. The decisionof the Durban conference in December 2011 to launch a new round of negoti ations to arrive atlegally binding commitments for all countries by 2015, with implementation starting from2020, has tilted the balance sharply in favour of the advanced capitalist countries andthreatens onerous emission reduction responsibilities for developing countries. India hasprogressively di lu ted its posit ion and leaned towards the US positi on against legall y bindingcommitments. India needs to rework its climate change position to make equity a centralplank in negotiations for a future globally binding arrangement. Progressive sections all overthe world must forge a un ited posi ti on and bring pressure on their respecti ve governments toreach a meaningful and equi table cl im ate change agreement.

SOU TH ASI A1.37 Pakistan: Pakistan has been in the vortex of increasing violence by extremist andfundamentalist groups, a civi li an government w hi ch is increasingly dependent on theUni ted States but also marked by grow ing tensions in its relations w ith the Uni ted States andvulnerable to the repercussions of the conflict in Afghanistan and in its border areas. Theki l li ng of Osama bin Laden, w ho had been l iving in Abbottabad, by the US Special Forces,

highlighted how the extremist groups are well entrenched in the country with theconniv ance of secti ons of the intel l igence and securi ty agencies. The US drone attacks on thePakistani Taliban have inflamed public opinion because of the deaths of innocent peopleinclu ding women and chi ldren and l ed to retaliatory terrorist attacks. The recent breach i n themi li tary cooperati on arising out of the kil li ng of 24 Pakistani soldiers by the US on the Afghanborder has led to a drasti c scaling down of security cooperation whi ch w i ll have a far-reaching effect.

1.38 The ki l l ing of the Punjab Governor and the sole Christian mini ster in the Federalgovernment shows how the fundamentalists and jihadist forces are operating w ith impuni ty .There has been a deterioration in the li vi ng condi ti ons of the people who have suffered fromprice rise and growing unemployment. The three areas of conflict which have developed in

the recent period will have a significant bearing on the future course of developments inPakistan. First of all , there is the confl ict i n the relationshi p betw een the Uni ted States and thePakistan military establishment; there is the tension which has developed between thecivilian government and the army on the alleged memorandum submitted to the USauthorities about the danger of a coup; and finally there is the confrontation between theSupreme Court and the government on the pursuit of corrupt ion cases. Pakistan can establ isha democratic system responsive to the peoples aspirations only when the fundamentalistextremist forces are isolated and when its subordinate relationship to the US is dispensedwith.

1.39 Bangladesh: The restoration of full-fledged parliamentary democracy in 2009 was anachievement w hi ch led to the victory of the Awami League-led all iance and assumption of

power by the Sheikh Hasina government. Since then, steps have been taken to restore thesecular principle in the State. The rightw ing-fundamentali st forces are seeking to underminethe secular-democrati c measures. The recent pl ot for a coup, which was foi led by the army,illustrates this danger. The economic crisis has badly affected the country, the steep rise infood pri ces has affected the people badly. There has been sign if icant progress in cooperati onbetw een I ndia and Bangladesh. The Bangladesh government has taken certain steps to curbthe extremist groups like ULFA operating from within its territory. The agreement toexchange enclaves and demarcate the boundary betw een the two coun tries duri ng the visit ofthe Indian Prime Min ister is also a posi ti ve development.


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1.40 Nepal: After a prolonged period of stalemate which lasted for two years, since theresignation of Maoist leader Prachanda from the Prime Ministership, there has been anagreement to break the deadlock. After the assum ption of offi ce of Prime Min ister BaburamBhattarai the three major parties arrived at an agreement on integration of sections of theMaoist combatants into the armed forces and the rehabilitation of others. This opened theway for the completion of the framing of the new Constitution but this requires thecooperation of al l the three major part ies. I t i s essential that the peace process be completed sothat N epal can have a republi can and democratic system w hich i s in tune with theaspirations of the people.

1.41 M yanm ar (Burma): The military regime held elections in 2010 under a newconstitut ion w hi ch w as designed to present a civi l ian faade to its rule. Wi th the assumptionby Thein Sein of the presidency there have been some steps taken to relax the mil i taryautocrati c ru le and restore certain democrati c rights and release of pol iti cal prisoners. This hasbeen responded to by Aung San Suu Ky i who has registered her party and has decided tocontest in a by-election. The thaw in relations between the democratic opposition and thegovernment after decades of authoritarian rule is a positive step. India, which has goodrelations wi th the Myanmar government, should help promote further measures whi ch can

usher in a democratic system.

1.42 Sri Lanka: The military defeat of the LTTE brought to an end the two and a halfdecade-long civ il w ar. The Sri Lankan government has sti l l not completed the resett lementand rehabil itation of al l the displaced persons affected by the confl ict i n the Tami l areas. Theatroci ti es committed on civ i l ians during the last phase of the war should be investi gated andthose responsible held accountable. Even tw o years after the end of the armed confl ict and theelimi nation of the LTTE, the Sri Lankan government has not taken any worthw hi le steps toreach a poli ti cal sett lement on the Tami l questi on.

1.43 The Sri Lankan government has to expedite the pol i ti cal di scussions and adopt specificmeasures for the devolution of powers and provision of autonomy for the Tamil-speaking

areas of the North and Eastern regions. It is in this manner that the Tamil people can beassured of their ri ghts w ithin a uni ted Sri Lanka. The I ndian government shoul d continue itsdiplomatic and political efforts to ensure the full rehabilitation of the Tamil people and toarrive at a poli ti cal sett lement of the Tami l i ssue.

1.44 The CPI(M) expresses i ts solidarity w ith the democrati c and progressiv e forces in SouthAsia and w ill stri ve to increase the cooperati on betw een the Left, democratic and secularforces in the region.

CONCLUSI ON1.45 The capital ist tri umphalism whi ch characterized the period after the fall of the SovietUnion has disappeared. It has been replaced by uncertainty among the ruling classes about

the future of capi tal ism. Increasingl y, people are coming out in protests against the attacks ontheir economic rights and hard won gains. In the Arab world, the popular uprisings againstautocracy have ushered in major pol it ical changes. Latin America has show n that there canbe an alternative path of development to the neo-l iberal poli cies. Commun ists and Left forcesaround the world should buil d and strengthen the anti -imperialist movements and unite theworking people against the predatory exploitation of finance-driven capitalism so that apoli ti cal alternative to the system emerges. To get out of th is cycle of crisis the onl y alternati veis socialism. The strengthening of the working class movement and the building of abroadbased Left pol i ti cal al ternative i s the need of the ti mes.


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1.46 In I ndi a, the struggles against imperiali st globali sation and the anti -people neo-l iberalpol icies are interli nked. The CPI(M) extends i ts soli darit y to al l those forces w ho are strugglingagainst imperialist domination and defending their national sovereignty. The CPI(M) willstri ve to bui ld a strong anti -imperialist movement i n India as part of the Left and democraticmovement in the country .

N ATI ON AL SI TU ATI ON

2.1 The 19th Congress of the Party had concluded that the UPA government was in themain pursuing poli cies for the benefit of big business and foreign capital. I t was decided thatthe Party should continue to oppose these neo-liberal policies and adopt an independentposition while extending support to the government. Further, the Party should strive toisolate the BJP and the communal forces that were seeking to recover lost ground. The Partyshould oppose the strategic alliance with the United States and mobilize people againstimperialist influence. The Party Congress called for mobilizing the people on alternativepoli cies and to organi ze the w orking class and other sections of the w orking people against

class exploi tation and social oppression. The Party Congress had w arned that the role playedby the CPI(M) in fi ghti ng the neo-l iberal policies and the strategic all iance wi th the US hadresul ted in the Party becoming a target for the ru l ing classes and imperial ist circles and thatWest Bengal, the strongest base of the Party, was already under attack.

2.2 Wi thin three months of the Party Congress, the Left parti es w ithdrew support to theUPA government after it w ent ahead w ith the nuclear deal w i th the USA, contrary to itsearlier assurances. Having lost the majority, the UPA won the vote of confidence in the LokSabha through the immoral use of money power and encouraging defections from theopposit ion. Subsequentl y, the Congress-led all iance won the parliamentary elections in May2009, though i t could not get a majority. The UPA-I I government has been pursui ng the sameeconomic policies that it pursued in the first term, but more aggressively. The three-year

period of the UPA-II government has been marked by:

(i) Relentless pri ce ri se of essenti al commodit ies(ii ) Massive high level corrupti on whi ch began in the UPA-I term(ii i ) Conti nuance of the pro-US foreign poli cy and strategic all iance w ith the U.S.(iv ) The worki ng class, peasantry and other secti ons of the worki ng people conti nue to

suffer from in tense exploitation and deprivation.

2.3 Freed of the dependence on the Left parties, the Manmohan Singh government hasbeen pushing ahead with its neo-liberal policies; it has been constrained to some extentbecause of the lack of a stable majority in parliament. Engulfed by a spate of corruptionscandals, the Government is seen to be in a state of drift and the ruling Congress is unable to

give i t the necessary pol it ical di recti on.

N EO-LI BERAL AGEN DA2.4 The UPA-I I government has sought to regain the momentum for implement ing neo-liberal policies, which had slowed down during the earlier tenure due to Left opposition. Theth rust of the neo-l iberal agenda is to undermine the role of the publi c sector and facil i tate theunfettered exploitation of resources and profiteering by domestic and foreign big corporates.The disinvestment agenda has been revived w ith over Rs. 47,500 crore worth of publi cequities in CPSEs sold since 2009. The government has made it mandatory for al l profi t-making CPSEs to di vest at l east 10 per cent of their equi ty in the stock market.


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2.5 Wi th the pri vati zation of oil and gas resources, the pri vate sector has already surpassedthe publi c sector in domestic natural gas production. The largest private sector deals today arebeing struck over I ndias oi l and gas resources. Mini ng is also being opened up in a big w ay forthe foreign and domestic corporates through changes in mining policy. The private sectoralready accounted for 63 per cent of the 218.6 million tons of iron ore produced in 2009-10,over 45 per cent of w hi ch was exported. Moves are also on to privati ze coal mi ning. Loot ofmineral resources through i l legal mining and reckless exports has become rampant as a resul tof the openi ng up of the mi nes and minerals sector.

2.6 The UPA government is pushing legislations to increase the FDI li mi t in the insurancesector, deregulate the banking sector and all ow pension funds to be invested in the stockmarket. These moves w il l make Indias financial sector vul nerable to speculati ve financecapital. The prevention by the Left of various legislati ons on further opening up the financialsector, in fact, had allowed India not to be completely devastated by the global fi nancial crisis.A bi ll to allow foreign universi ties to open shop in India is also pending. FDI cap in defence isalso sought to be enhanced.

2.7 The UPA cabinet took a decision to allow 51 per cent FDI in mu lt i-brand retail duri ngthe w inter session of parl iament in 2011. Thi s w il l affect the li velihoods of the 4 crore-odd (40million) small retailers and squeeze the farmers and small producers. This step met withwidespread opposition from political parties, traders and mass organizations forcing thegovernment to announce a suspension of the decision. But the Prime M ini ster has declaredthat the decision w il l be implemented after the current round of assembly elections.

2.8 Wi th 100 per cent FDI al low ed in the pharma sector, MNCs are buy ing out thedomesti c pharmaceut ical companies and establi shing their stranglehold over the Indian drugmarket. Three of the top five drug sellers in India today are MNCs. The increasingconcentration of the drug market is leading to phenomenal increase in the prices ofmedicines. The government is un wil li ng to curb FDI i n the pharma sector or extend effecti ve

drug price control.

I N FLATI ON AN D PRI CE RI SE2.9 The UPA government has utterly fail ed to check in flation and spirall ing prices ofessent ial commoditi es. The annual WPI inf lati on rate remained at 9.1 per cent in November2011. Food i nf lation has been over 10 per cent for a record 38 months between September 2008and October 2011. Such a prolonged period of double digit food in flation i s unprecedented inthe post-independence period. Prices of food items like pulses, vegetables, fruits, edible oils,sugar, mi lk, eggs, meat and fish have w i tnessed very steep i ncreases, causing great hardshi psto the people. The neo-liberal food policies of the government are responsible for high foodinflation. Hoarding of food items, speculative futures trading, faulty export policy and thepenetration of big corporates in the food chain combined w ith stagnant productiv ity and low

growth in agriculture have contributed to spiraling food prices.

2.10 Following the deregulation of petrol pri ces, successive hi kes have taken the pri ce of alitre of petrol in Delhi from Rs. 40 in 2009 to over Rs. 65 in 2011. The Central Governmentcont inues to l evy a hi gh level of taxes on petro products. The hikes in prices by Rs. 3 per l it refor diesel, Rs. 2 per litre for kerosene and Rs. 50 per cylinder for LPG in 2011 have alsocontributed to i nflation.

2.11 Urea pri ces have been hiked by 20 per cent since 2010 and i t i s being sold at bl ackmarket prices. With the decontrol of non-urea fertilizer prices, DAP and MOP prices have


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increased by over 100 per cent since 2010. Rise in agricultural input prices have directlycontributed to costpush inflation. Rather than controlling input prices, the government isintent on cutt ing subsidies on fuel and ferti l izers.

2.12 The government has allowed a sharp depreciation of the rupee without timelyintervention. This has added to inflationary pressures because India has to import oil andfertilizers. The successive hikes in interest rates by the RBI have also contributed to costincreases across the economy.

2.13 The UPA government has consistent ly refused to accept the CPI(M)s proposals for arol lback of the hikes in the prices of petroleum products; ban on speculative futu res/forwardtrading in essenti al commodi ti es; release of the excess food stocks held in Central godowns tothe states at BPL prices for sale through the Public Distribution System; and to strengthen thePDS by making i t uni versal. These measures w ould have gone a long way in arresting therelentless price rise.

FOOD SECU RI TY2.14 The Central Government s pol icies have weakened the PDS and reduced i ts capacity to

provide relief from food inflation. The APL/BPL division has led to large-scale errors ofexclusion denying the poor access to cheap foodgrains. There was a national outcry at thePlanning Commission s fraudulent esti mate of poverty quantified at only Rs. 32 per capita perday for urban areas and Rs. 26 per day for rural areas. But these estimates continue as thebenchmark in al l targeted policies. 2.15 The proposed Food Securi ty Bi ll is a highly centralizedBil l that not only retains the targeted system but increases the categories in the priori ty (BPL),general (APL), and excluded categories, further div idi ng the poor. Al l ent i tl ements are madeconditional. The central government will continue to override the state governments indeciding the number of households eligible for subsidized foodgrains. All entitlements aremade conditional on state governments accepting the Centres framework of neo-liberalreforms, whi ch include ant i -people measures l ike cash transfers and food coupons. Thi s wi l leventual ly dismant le the PDS and facil itate the takeover of the food economy by

agribusinesses and corporate retailers.

2.16 Restoration of the un iv ersal PDS is the only credible way to ensure food security.CPI(M) stands for the universal right to 35 kg of foodgrains for each household at not morethan Rs. 2 per kg. Essential commodities like pulses, edible oils and sugar should also bedistri buted at subsidized prices th rough the universal PDS.

ECONOMI C SLOWDOWN2.17 There is a slowdown i n GDP growth to around 7 per cent i n 2011-12 compared to 8.5 percent the prev ious year. The global economic slowdown and the neo-liberal pol icies pursueddomesti call y have led to thi s slowdown. The decli ning purchasing power of the people due torelentless inflation has led to reduction in domestic demand. This has resulted in the

slowdown i n industri al production and deceleration in the core sectors.

2.18 The empl oyment situati on has worsened. Despi te GDP growth, the latest NSS data(66th round) show a dramatic deceleration in total employment growth in India, from anannual rate of around 2.7 per cent during 2000-2005 to only 0.8 per cent during 2005-2010.Growth in nonagricul tu ral employment fell from 4.65 per cent to 2.53 per cent, even at a timewhen annual GDP growth was above 8 per cent during the latter period. A slowdown i n GDPgrowth w il l further worsen the employment situation.


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2.19 Publ ic inv estment needs to be stepped up to stimu late the economy. Plan expendi turehas come down to 4.6 per cent of GDP in 2010-11 from 5.6 per cent in 2009-10. The fiscalsti mu lus announced in the wake of the global economi c crisis in 2009 mainl y comprised oftax breaks and not enhanced publ ic spending. Corporate tax concessions worth Rs. 2,28,045crore w ere doled out betw een 2008-2011. The tax-GDP ratio, which had gone upto 12 per centof GDP in 2007-08, has fal len to 9.5 per cent in 2010-11, constrain ing public expendi tu re. Thisneeds to be reversed and greater resources mobi l ised by taxing the rich to spend on welfareprogrammes and bui lding publ ic infrastructure.

2.20 The Central PSEs also need to step up their investments. Gross value addi tion in CPSEsstood at only 6.3 per cent of Indias GDP in 2009-10. CPSEs in telecom, civil aviation andferti l izers are making losses because of f lawed government pol icies. The reserves and surplusof CPSEs stood at over Rs. 6 lakh crore in 2009-10, which must be drawn upon to make newinvestments and contri bute to economi c expansion.

AGRARI AN SI TU ATI ON2.21 Nearly 60 per cent of Indias population continues to be dependent on agricul tu re.Growth in agricul tu re has been around 3 per cent during the 11th Plan period (2007-12), below

the 4 per cent target. Agricultural growth targets have not been met since the 9th Planonw ards. The per capita net avail abi li ty of foodgrains per day declined from 510 grams in 1991to 438 grams in 2010. Supply of major agricul tu ral crops has not kept pace w ith demand onaccount of lower rate of increase in yield, inadequate irrigation coverage and excessivedependence on monsoon. This has been a major reason for food pri ce in flation.

2.22 As per the National Crime Record Bureau, 2,56,913 farmers have commit ted suicideacross the country between 1995 and 2010. Debt is the major reason for farmers suicides.Farmers suicides have increased in Maharashtra and Andhra Pradesh in 2011, due to thecrash in cotton pri ces. Si lk farmers in Karnataka and other states have also been in distress.High cost monocropping of cash crops has become the most r isky ventu re for Indian farmers.

2.23 The neo-li beral poli cies are responsible for the crisis being faced by the peasantry. Therecommendations of the National Commission of Farmers have been ignored. The mini mumsupport prices announced by the central government do not cover the sharp rise in the cost ofcul ti vation for most crops. Procurement operations by the central agencies are also l imi ted inscope and severely constrained by the lack of storage capacity. Inadequate public investmentand cuts in subsidies have meant rising cost of agricultural inputs like seeds, fertiliser,fuel/power, etc. Rising input costs and unremunerative prices have made farming unviablefor many farmers. Rural credit is mainly cornered by the rural rich and deployed in non-agricultural activities. Lack of access to cheap credit and depressed returns from agriculturehave driven many farmers into high indebtedness and debt-driven suicides on the one handand di stress sales of their land on the other.

2.24 The small and marginal peasants, w ho comprise over 80 per cent of all farmhouseholds in India, are the main victims of the agrarian crisis. The sharecroppers and poorpeasants w ho also labour i n others lands face intense exploi tat ion besides bearing the bruntof the crisis. The rural ri ch, compri sing the landl ords and ri ch peasants, continue to exploit thetenants and agricultural labourers through myriad channels including denial of tenancyrights, usurious interest rates on loans and low wages. The ru ral rich are also makinginvestments in diverse nonagricultural activities like real estate. The incidence of corporateand contract farm ing has increased.


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2.25 The condi tion of agricul tu ral workers has steadil y deteriorated. Under the impact ofneo-l iberal pol icies landlessness is increasing and th is is adding to the number of agricul turalworkers whi ch stood at 14 crore in 2010. There is no statutori ly fixed minimum wage and nocomprehensive social security measures for agricultural workers in many states. They are theworst h it by rise in prices of essential goods. The MNREGS is being diluted and the workers arebeing denied their rightful wages. Agricultural workers live under precarious conditions andin most states there are no efforts to prov ide house sites and houses to them. The condi ti on ofwomen agricul tu ral w orkers is worse. Indebtedness is in creasing among agricul tu ral w orkersand they are facing a crisis of subsistence. Government policies are forcing the rural poor tomigrate and work under dismal conditions to other areas or to urban centres. The CentralGovernment has refused to bring in a comprehensive legislati on for the fixati on of w ages andsocial security benefits for agricul tu ral workers.

2.26 The neo-l iberal strategy of withdrawal of state support to agricul tu re and increasingtrade liberalization through FTAs and tari ff cuts are meant to dri ve the small peasants out ofagriculture. The way is being paved for the takeover of Indian agriculture by foreign anddomestic big corporates, as has happened in many developing countries under globalization.Resisti ng th is offensive is the pri ncipal class challenge before the Indian peasantry.

LAN D ACQU I SI TI ON2.27 Land acquisiti on for SEZs, corporates and mi ning using the draconi an 1894 LandAcquisit ion Act saw a num ber of struggles by farmers and agricul tural w orkers and the localpeople against forcible land acqui siti on. Protests against land acquisiti on took place in over 40districts in 17 states in the past three years. Tens of thousands of acres were taken over withthe farmers and the dependents on land being given meagre compensation and norehabilitation measures. Adivasis were particularly affected by the dispossession of theirlands and displacement from their traditional habitats. Thousands of fisherfolk have beenevicted from habitats along the coast, resulting in the loss of their livelihoods. In UttarPradesh, the Yamuna Expressway project involv ed large scale acqui sit ion of l and not onl y forthe highway but also for setting up townships by the promoter. Fourteen people were killed

in various agitations against land acquisition in western UP in Aligarh, Mathura and GreaterNoida. There have been struggles against land acquisition in Haryana, Orissa, AndhraPradesh, Madhya Pradesh and U ttar Pradesh. In Maharashtra, people waged a determinedstruggle against land being taken for the Mahamumbai SEZ of Reliance Company in Raigaddistrict resulting in the cancellation of the project. The Party and the kisan and agriculturallabour organisations should take the lead to fight for the rights of the peasants on l and and tooppose any forcible land acqui siti on.

2.28 The Land Acqui sit ion & Rehabil i tati on Bi l l proposed by the government does notadequately protect the farmers in terms of the compensation and rehabilitation criteria anddoes not make its provi sions mandatory for private land acqui sit ion. M ineral ri ch tribal areasw i l l be opened to corporates, adversely affecting tribal rights on land.

2.29 The CPI (M) w il l fight for a Land Acquisit ion & Rehabi li tation Bil l which wi ll protectthe interests of the land owners, specially small landowners and their dependents on landl ike sharecroppers and agricul tu ral w orkers, and to prevent coercive or exploi tative land grab.

TWO DECADES OF LI BERALI SATI ON2.30 2011 marked tw o decades of the ini ti ation of neo-l iberal economi c reforms in I ndia. Inthese tw o decades poli cies of l iberali sation and pri vatization have been pushed by the centralgovernment, alongside greater integration into the global economy. The neo-liberal policieshave been i mplemented irrespective of the party in power, w ith ful l support from the rul ing


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classes led by the Indian big bourgeoisie. Whil e big business and the urban el i tes are enjoyingthe benefits of faster income growth and rising purchasing power, the working class andlower middle class in the urban areas and almost all the agrarian classes excluding thelandlords and rural rich in the rural areas are experiencing dwindling opportunities oflivelihood. Prosperity for the upper classes on the one hand and greater exploitation anddeprivation of the majority of working people on the other has become the hallmark of theneo-li beral regime in I ndia.BIG BU SI N ESS2.31 The main benefi ciaries of the neo-li beral reforms have been the big bourgeoisie. Thewealth and assets of the In dian big business houses have sky rocketed over the past tw odecades. The number of dollar bil li onaires (net worth over $ one bil l ion or approximately Rs.5,000 crore) increased from 13 in 2003 to 55 in March 2011 in the Forbes list. 2.32 Indian bigbusinesses have also emerged as global players over the past decade. Indias stock of outwardFDI increased from around $2 bil li on i n 2000 to $79 bil li on in 2010. Annual outflow of FDIreached $43 billion in 2010-11. Many of these foreign investments by Indian corporates aregoing into acquisitions of big corporations in the developed countries, like the $12 billionacquisition of Corus by Tata Steel and the $2 billion acquisition of Jaguar and Land Rover byTata Motors. Indian agribusinesses are also acquiri ng large tracts of l ands overseas for cash

crop farming in Africa, Latin America and East Asia. As per one estimate, more than 80 Indiancompanies have invested about $2.4 billion in buying or leasing huge plantations in Africancoun tri es that w i l l be used to grow foodgrains and other cash crops for the Indian market.

EXPLOI TATI ON OF WORKERS2.33 Total employment in the organised sector, which was 28.2 mi l l ion (2.82 crore) in 1998stood at 27.5 million (2.75 crore) in 2008. In the organised sector of the manufacturingenterprises (as per the Annual Survey of I ndustries) wages as share of net v alue added whichwas close to 30 per cent in the 1980s, declined to aroun d 20 per cent in the 1990s and has gonedown to i ts hi storical l ow of 10 per cent by 2008-09. On the other hand, the share of profits innet value added was lower than the share of wages th roughout the 1980s, around 20 per cent.After l iberali sation i n the 1990s, it went above the wage share and was around 30 per cent for

most of the 1990s. Since 2001 it started increasing and the profit share reached 60 per cent by2008. The share of contract workers in the total workforce in the factory sector increased from20 per cent in 1999-2000 to 32 per cent by 2008-09. These contract workers are not onlydepri ved of securi ty of tenure but also of social securi ty benefits.

2.34 Thus not on ly is hi gh GDP growth fai li ng to create enough jobs, the natu re of jobs beingcreated is also very exploitative. As a result the profit share is increasing and permanentregular workers are being substi tu ted by contract workers, reducing the bargaini ng power ofthe workers vis--vis employers. NSS 2009-10 revealed that among all the w orkers at thenational level, about 51 per cent were self-employed, 33.5 per cent were casual labour and15.6 per cent were regular w age/salaried employees. Casual employment has registeredsignifi cant growth, particularly among women w orkers.

2.35 The National Commission for Enterpri ses in the Unorgani sed Sector (NCEUS) hasreported that out of the total w orkforce of 456 mi l l ion (45.6 crore) in Indi a in 2004-05, theinformal sector accounted for 393.2 million (39.3 crore). Thus the unorganised sectorconstituted 86 per cent of total w orkers in 2004-05. It is th is segment of the workforce who aremost exploi ted, resul ti ng in 77 per cent of the Indian population spendi ng less than Rs. 20 perday. There is increased inter-state migration and the exploitation of this migrant labour hasincreased.


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2.36 Because of the inabil it y of the neo-l iberal regime to generate gainful employment, themasses are being pushed into the swamp of the informal sector and forced self-employment,to l ive a li fe of insecuri ty and impoverishment. Self-employment for such w orkers oftenmeans that they are forced into petty l ow productiv i ty activ it ies w ith meager and uncertainincomes. Thi s is the section w hich is bearing the brun t of the economi c slowdown andbackbreaking food price inf lati on.

M ASSI VE CORRUPTI ON :H allm ark of U PA Regim e2.37 The UPA government has become synonymous w ith high-level corruption. Theunfolding of the 2G spectrum scam has resulted in the arrest and prosecution of the formertelecom minister from the DMK, a sitting MP, some bureaucrats and corporate executives. 2Gl icenses and spectrum were allotted to the telecom companies in 2008 at throwaway pricescausing enormous losses to the exchequer, in the range of Rs. 57,000 crore to Rs.1.76 lakh crore,as per the CAG estimates. All efforts to cover up this corruption scandal, the biggest sinceindependence, fail ed due to the Supreme Courts intervention and i ts supervi sion of the CBIinvestigation i nto the case. The roles of the former Finance M ini ster and the Prime Mini sterhave also come into question. The 2G spectrum case has dramatically exposed the nexus

between big business, ruling politicians and bureaucrats, which is an outcome of the neo-liberal regime and is the fountainhead of corruption. The links of the corporate media withthis nexus was further exposed by the Radia tapes.

2.38 A Congress MP along w ith his cronies have been arrested in the Commonw ealthGames scam, w here overpriced cont racts were awarded to favoured companies againstki ckbacks. The CAG report also exposed corrupti on in the CWG-related projects undertaken inDelhi by various agencies under the central and state governments. The KG basin gas scaminvolves the arti ficial inflation of capital costs of gas extraction by Reli ance Industri es Ltd. inconn iv ance with the petroleum mi nistry , causing losses to the government exchequer. I l legalmining, which involves thousands of crores of rupees, is perpetuated by the corrupt nexus.Other scams li ke IPL, Adarsh housing, the deal between I SROs Antrix Corporation and Devas

multimedia for S-band spectrum, have also occurred. Al l these cases reflect how the decisionmaking process at the highest level of government is distorted by cronyism. The role of theCongress leadership in government in all these corruption cases is sought to be covered up.The UPA government was seen to be doing everythi ng to protect the corrupt nexus.

2.39 A study by Global Financial In tegrity (GFI) esti mated the present value of i ll icit capitaloutflows from India till 2008 to be at least $462 billion (over Rs. 23 lakh crore). These illicitfi nancial flows were the product of bribery and kickbacks, criminal acti vi ti es and tax evasion.The GFI study noted that deregulation and liberalization in the postreform period of 1991-2008, accelerated the outf low of i l li cit money from the I ndian economy.

2.40 The government conti nues to drag i ts feet on unearth ing black money and funds

i l legal ly stashed in Swiss banks and offshore tax havens. I t refuses to release the names ofthose holding secret accounts which are available with it. The CPI(M) demands that thesefunds stashed abroad be confiscated by the government and used for developmentexpendi ture. The Maurit ius route is the biggest condui t to round t rip black money into I ndiato make tax-free profits. 41 per cent of total FDI inflows into India are routed throughMauritius. The DTAA with Mauritius, which is being misused extensively, should bescrapped.

2.41 Sharing the same economic ideology wi th the Congress, the BJP cannot prov ide anyalternative platform to combat and curb corruption. The former Chief Minister of Karnataka


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from the BJP has been indicted in land scams by the state Lokayukta. The Reddy brothers,who w ere Mini sters in the BJP government have also been sent to jail for i l legal m in ing. Therecord of the BJP-led NDA government was replete with murky defence deals, the UTI scam,and firesale of public assets. The BJPs campaign against corruption does not carry anycredibility.

AN TI -CORRUPTI ON M EASU RES2.42 The massive corruption and exposure of the big scandals led to public outrage. Thedemand for an effective Lokpal Bill raised by the Anna Hazare-led movement foundwidespread support, particularly among the middle classes. The government, which wasunwi ll ing to adopt an effective law, was finally compel led to bring legislation after sustainedpubl ic pressure. The offi cial Bi ll presented to parl iament is a weak one designed to di lu te thepowers of the Lokpal and make it dependent on the government. When the Bill waspresented in the Rajya Sabha on December 29, some of the amendments pressed by theopposit ion would have been carried. The manner in w hi ch the government avoided theadoption of the Bi ll in the Rajya Sabha exposed i ts intent ion not to set up an effecti ve Lokpal.

2.43 The CPI (M) has been demandi ng the sett ing up of a strong Lokpal w hi ch w il l have an

independent basis and its own investigating machinery. However, the Party and the Lefthave a different approach from the Anna Hazare group on the wider question of combatingcorruption. The CPI(M) holds that h igh-level corrupti on has become endemic as a resul t of thecreati on of a big business-rul ing pol i ti cian-bureaucrat nexus whi ch has been spawned by theneo-li beral regime. The State is facil itating the loot of natural resources by the corporates andthe biggest corruption scandals have taken place in land, gas, spectrum and mining sectors.Apart from the Lokpal, a set of measures have to be undertaken. A National JudicialCommission should be set up for the appointment of the judges with powers to investigateand act against corrupt ion in the judiciary . Electoral reforms must be init iated to stop the useof illegal money during elections. Above all, the struggle to reverse the neo-liberal policieswhich facilitate corporate loot and foster corruption through the nexus must be waged withdetermination.

COM M U N ALI SM2.44 Since the Lok Sabha elections of 2009, the Hindutva forces have sought to recover fromthe defeat of the BJP by advancing the communal agenda. At the political level, there hasbeen the constant campaign against Islamic terrorism and the targeting of the Muslimcommunity on this charge. At the ground level, the stock in trade of the communal forces creation of communal tensions and stoki ng violence has also been in evi dence. Since the 19thCongress, communal violence took place in Hyderabad, Bareilly, Ahmedabad, Nanded,Gopalgarh, Moradabad and Rudrapur. According to the Home Ministry, there were 791communal incidents in 2009 resulting in 119 deaths and injuries to 2,342 persons. In 2010,there were 658 incidents resulting in 111 deaths and injuries to 1,971. Communal politicsdraws sustenance from such a state of affairs. Mi norities, both Christian and M uslim, continue

to be targeted in the BJP-ruled states of Karnataka, Madhya Pradesh and Gujarat. I nRajasthan, where the BJP lost government, there have been a series of communal incidents.

TERRORI ST TH REAT2.45 The RSS-BJP combines efforts to project terrorism on a communal basis met w ith aserious setback when the role of H indutva extremi st groups in terrorist violence emerged. TheMalegaon blasts, the Ajmer Sharief, M ecca Masjid and Samjhauta Express blasts have all beentraced to certain Hindutva extremist elements. Pragya Thakur, Assemanand and their cohortsare facing trials for these heinous offences. The RSS-BJP tried to defend these elements byaccusing the government of persecuting the Hindutva reli gious figures but the soli d evi dence


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of their role has nu ll i fied these efforts. The Gujarat government s record of pol ice encounterkillings, such as the Ishrat Jehan case, its continuing cover up of the 2002 pogroms and thesubversion of law and order and justice system is a standing testimony of how inimical theHindutva ideology is to a secular and democratic order.

2.46 The last four years have also w itnessed the continui ng violence perpetrated by certainMuslim extremist groups. While the Mumbai terrorist attack of November 2008 wasperpetrated by a jihadi group from Pakistan, there have been terrorist attacks like the threeserial blasts in Mumbai in Jul y 2011 and the Delhi High Court bomb blast which h ave kil ledscores of people and injured hundreds. The terrorist activities of both Muslim and Hinduextremists have to be fought and countered. The extremist communal ideology spawnsterrorist violence and they must be exposed and isolated by mobilizing the people. Thecampaign against communalism and terrorism should be conducted by exposing theirinterconnection.

DI SRUPTI VE VI OLEN CE OF TH E M AOI STS2.47 The ful l extent of the disruptive acti v it ies of the Maoists and its harmful effects for thedemocratic movement have become clear in the last three years. There is a rise in Maoist

violence in Chatti sgarh, Jharkhand, Odisha and parts of West Bengal . The Maoists are worki ngin the tribal and forested areas in these states, and also in Bihar, Andhra Pradesh and parts ofMaharasht ra. They are pitt ing the tri bal people against the State through armed actions bywhi ch they inv i te the fu ll brunt of State repression on the tribal people. The Maoists do notattack the security forces alone. They target a wide range of people, including political parties,and those who refuse to cooperate w ith them.

2.48 The start l ing fact is that the Maoists have ki l led 210 cadres and supporters of the CPI(M)in West Bengal in the last three years. This exposes their true character under the cover ofrevolutionary rhetoric they act as an instrument of the anti-Left forces. The Maoists haveki l led more persons belonging to the CPI(M) than all the other poli tical parties in the enti recountry.

2.49 The terrorist methods adopted by the Maoists w ere exposed by the horri fic ki l li ng ofpassengers in a bus exploded by the Maoists in Dantewada and by the derailment of theJnaneshwari Express whi ch ki l led 149 passengers. Such gruesome acts of terror are commi ttedby the Maoists against the common people.

2.50 The Maoist t ie up wi th the Trinamul Congress to carry out i ts attack on the CPI(M)constitutes a heinous chapter in the history of Naxalism. The Maoists are known to strikedeals with vari ous bourgeois parti es during elections as in Jharkhand, Chattisgarh and Odishafor money. They run an extortion network to raise taxes from contractors, businessmen andlocal offi cials.

2.51 The Maoists are thus a degenerated form of ul tra-Left adventu rism. They have to befought by exposing their retrograde ideology and disruptive pol it ics. Some sections of thepetty bourgeois intelligentsia which claim to be Left, continue to support the Maoists. Theirdubious positi ons shou ld be ideologicall y combated and exposed.

2.52 The Party should mobil ise democrati c opinion against the incessant v iolence of theMaoists, their fascist-like intolerance of political opponents, and their targeting of CPI(M)cadres and supporters in West Bengal.


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N ORTH EAST2.53 The si tuation i n the North East is marked by the prevalence of identi ty poli ti cs basedon t ribal and ethnic groupings and the continu ing discrimination and neglect by the centralgovernment. The discontent and ali enation of the people is sought to be uti l ised by extremistgroups who prey on ethni c and tri bal dif ferences.

2.54 The people of Mani pur have experienced hardships due to the blockade of thehi ghways leading in to the state for a continuous 120 days. Thi s w as an outcome of thecompeting claims of Kuki and Naga groups in the hill areas. Throughout this period of theblockade, the Central Government remained inactive and refused to intervene to get theblockade lifted. Various tribal groups have set up their armed wings, which are extortingmoney and challenging the wri t of the admin istrati on. The Armed Forces Special Powers Acthas not been wi thdrawn despite wi despread popul ar demand.

2.55 The economic development and the infrastructure of the region has suffered because ofthe corrupt nexus of bourgeois politicians, bureaucrats and contractors who siphon off centralfunds. Tripura is the onl y exception to th is pattern in the region.

2.56 The chances for peace in Assam have improved with the tri parti te talks betw een theULFA leadership, state and central governments, after the Bangladesh government handedover many of the top ULFA leaders residing there. The majority section of the ULFAleadership decided to give up the armed struggle and enter into talks. A small section headedby Paresh Baruah is sti l l holdi ng out against the peace process. The peace talks w ith theNSCN(IM) have been going on though there has been no breakthrough. The demand forNagalim i.e. for greater Nagaland is a stumbling block. The central government should takethe initiative for talks with all other extremist groups in the North Eastern region for apolit ical settl ement.

2.57 In Tripura, due to continuous polit i cal work, developmental activ it ies and firm actiontaken by the Left Front government , the extremi sts have been isolated, their vi olent activ it ies

curbed and tr ibal-non tribal uni ty main tained. Thi s is a model for the rest of the North Easternregion.

JAM M U & KASH M I R2.58 The state has w itnessed a substantial reduction i n v iolence perpetrated by the mi l itantsand extremists. However, this has not led to any reduction in the alienation of the people inthe valley towards the Indian State. The mass protests wh ich took place in the summermonths of 2010 resulted in the deaths of 120 young men and teenagers. These youth, whowere protesti ng by pelt ing stones at the security forces, were brutall y gunned down.Stati oning of the army in large numbers and the oppressive securi ty apparatus is a constantsource of irri tati on and anger for the people. The central government, as is i ts won t, has notacted upon the assurances which i t gave in the aftermath of the mass protests.

2.59 Despite widespread demand, the government has failed to withdraw the Armed ForcesSpecial Powers Act from large parts of the state where the army is not deployed. Neither hasthe UPA government taken substantial steps to advance the pol i ti cal dialogue w ith al l shadesof opin ion in the state. The appoin tment of th ree interlocutors cannot be a substi tute for this.The CPI(M) had set out a comprehensive proposal to reduce tensions, bui ld confi dence amongthe people, and to promote a poli ti cal dialogue. These include scaling down the armed forcesdeployed in the state; w ithdrawal of the AFSPA from most parts of the state except the borderregions; and dismantling the oppressive security structures. The excesses and violation ofhuman rights by the security forces have to be investigated and the guilty brought to book.


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Steps should be taken to encourage people-to-people movement and contact across the LoC.At the political level, to meet the aspirations of the people, there has to be the provision ofmaximum autonomy for the three regions.

2.60 The Party should advocate the poli ti cal steps required as spelt out i n the resolu tion onJammu & Kashmir adopted by the Central Committee in its November 2010 meeting andmobilise the democratic and secular forces in the country to see that a political solution isfound for the long standing problem of Jammu & Kashmir.

TELENGAN A AGI TATI ON & N EW STATES2.61 The agitati on for a separate Telengana state gathered momentum during the last tw oyears. The demand raised by the Telengana Rashtriya Samiti, the BJP and others got thesupport of the Telegu Desam Party before the 2009 assembly elections and of Congressmen ofthat region subsequentl y. The CPI too declared support for a separate state. Only the CPI(M)has maintained a consistent position that it is not for the division of the linguisticallyreorgani zed state of Andhra Pradesh. Thi s is in l ine w ith the Party s stand that the breakup ofstates which were reorganized on linguistic lines after a prolonged movement for theformation of l ingui sti c states, is not warranted.

2.62 The Central government aggravated the situation wi th the Home Mini ster making anannouncement about the formation of a new state, then backtracking and announcing theJustice Srikrishna Committee to look into the question. Even a year after the Committeesubmitted its report, the Centre has failed to take any decision. Since the delay leads toaggravating divisions among the people, it is essential for the Central Government toannounce its decision without further delay.

2.63 Demands for separate states l ike Vidarbha, Gorkhaland, Bodoland, Kamatapuri , and soon, exist. The CPI(M) reiterates i ts oppositi on to the breakup of states that were l inguisticall yreorgani zed as part of t he democratization of the state structu re. The demand that small statesshould be formed as a matter of principle cannot be accepted. Small states which are

economically and financially not viable will become totally dependent on the Centre andweaken the federal set-up. Where there is a backward region within a state, special measuresshould be adopted for the socio-economi c development of that area. There can be provision ofregional autonomy wherever requi red.

I DENTI TY POLI TI CS2.64 The growth of identi ty pol i ti cs based on caste, religion, tri be and ethni city is posing amajor challenge for Left politics in the country. The ruling classes and imperialist financecapital find such politics eminently suitable for their interests. Fragmentation of the peopleon the basis of identity and dividing and keeping them separate by resort to identity politicsensures that there is no threat to the State and the rule of capital .

2.65 Identi ty poli ti cs fi nds ferti le soil among those groups and commun ities who sufferfrom social oppression, discrimination and exploitation. Sections of the people who sufferfrom caste, tribal or gender oppression are prone to be mobi l ised by identi ty poli tics. NGOs andnarrow parochial groups fund such politics based on identity with a view to erode classsol idari ty and class-based movements.

2.66 The CPI(M) has to coun ter identi ty pol iti cs by bui lding common class-basedmovements, whi le at the same ti me taking up the issues of caste, social and gender oppressionexperienced by different secti ons of society.


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FOREI GN POLI CY2.67 The foreign pol icy in the eight years of the UPA government has been marked by thedeparture from the independent foreign policy due to the pursuit of a strategic alliance withthe United States. Start ing from the July 2005 join t statement between the US President andthe Indian Prime Mini ster, the steps to forge such an al l iance have progressed. Since the 19thCongress, more steps have been taken to cement the al l iance.2.68 India signed the End Use Moni toring Agreement to faci l itate the sale of weaponry bythe Uni ted States and to meet i ts condi ti ons. Rs. 40,000 crore of w eaponry had been purchasedfrom the Un ited States. The visi t of President Obama in October 2010 saw the tw in agenda toprise open the Indi an markets for the business and commercial interests of the Uni ted Statesand draw India into a closer security and military relationship. President Obamasendorsement for Indi a becoming a permanent member of the UN Security Counci l came withthe condition that India should cooperate with some of the vital strategic goals of the UnitedStates. India i s ful ly on board w ith the US strategy in Afghanistan. India has voted for thefourth time against I ran on the nuclear issue at the International Atomic Energy Agency. TheIran-Pakistan-India (IPI) pipeline has been effectively scuttled; instead the US-sponsoredTurkmenistan-Afghani stan-Pakistan-India (TAPI) pipel ine has been signed by India.

2.69 As a member of the UN Security Counci l, India abstained on the resolu tion on Libya,whi ch amounted to supporting the brazen NATO and Western intervention. But i t i s unableto come out squarely against the role of the NATO outside Europe given its support to i ts rolein Afghanistan. Whi le I ndia is a member of the BRICS and a parti cipant in the tri lateralconsultation of foreign mi nisters of India, Chi na and Russia, the strategic ti e-up w ith theUnited States and Israel prevents India from playing a major and effective role in promotingmu lti -polarity by pursuing an independent foreign policy.

2.70 There have to be sustained efforts to develop and improve relations w ith Chi na. This isin I ndias interests and should be seen i n the context of the Un ited States tryi ng to draw I ndiainto a strategic tie-up designed to contain China. China has become Indias largest tradingpartner w ith $ 63 bil li on trade registered in 2010-11.

2.71 The resumpti on of dialogue w ith Pakistan in 2011 was a positi ve development. Thegrant ing of M ost Favoured Nation status to I ndia by Pakistan, the talks to i ncrease confi dencebuilding measures on the line of control in Jammu & Kashmir, are all steps in the rightdirection. India should continue to urge the Pakistani government to take firm measuresagainst the extremist elements operating from its terri tory .

2.72 The struggle for an independent foreign pol icy and a break-up of the strategic all iancewith the Un ited States is directl y connected to the struggle for an alternati ve course ofdevelopment, away from the neo-liberal model in India. The foreign policy and the strategicalliance forged have a direct bearing on the domestic policies and the lives of the people,whether it is FDI in retail or the free trade agreements which have an adverse effect on

farmers and small producers all these are opened up w i th the Indo-US strategic al li ance. Theimport of expensive nuclear reactors whi ch w il l hi ke up the costs of energy and increase theenvironmental hazards is because of the commitments made under the nuclear deal. Thedeprivation of cheaper energy through the gas pipeline is also because of the pro-US foreignpoli cy. The rising bi l l of expensive imports of weapons from the United States whi ch di vertsscare resources from basic services and development is also due to th i s strategic all iance.

2.73 The CPI(M) w il l assiduously campaign among the people for an independent foreignpolicy whi ch w i ll also be part of a new trajectory of development for the country.


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AFTERM ATH OF TH E N U CLEAR DEAL2.74 The aftermath of the Indo-US nuclear deal has exposed the claims of the ManmohanSingh government and i t has confi rmed what the CPI (M) has been saying about theiniqui tous nature of the deal and its straight jacketing of I ndias foreign policy. First of all , thespecious claim that the nuclear deal w ould ensure ful l civ il ian nuclear cooperation whichw i l l enable India to access sensi ti ve nuclear technology has been exposed. In June 2011, theNuclear Suppl iers Group, at the instance of the United States, issued fresh guidelinesprohibiting transfer of reprocessing and enrichment technology to non-NPT signatorycoun tri es l ike Indi a. Thus India now has only the option to buy expensive nuclear reactorsfrom abroad and nuclear fuel without getting the latest technology. India had commi tted tobuy 10,000 MW of nuclear reactors from the Un ited States as a quid-pro-quo for the deal.Along with this, it had promised to legislate so that there would be no liability for foreignsuppliers. With this in view, it brought the civil nuclear liability legislation to Parliamentw ith the aim of excluding foreign suppl iers li abil ity. But th is was not accepted by Parliamentand a clause provi ding for recourse to foreign suppliers li abi l it y was included. Now efforts areon to dilute the foreign suppliers liabi li ty in the law th rough the formulation of Rules underthe Act.

2.75 The fact that the UPA government i s try ing to appease the Uni ted States by excludingtheir companies from being l iable i n case of a nuclear accident is a gross betrayal of the rightto l i fe and safety of I ndi an ci ti zens. Even after the Fukushi ma accident i n Japan, whi ch i s oneof the largescale nuclear disasters in history , the UPA government is bent upon satisfy ing theUni ted States and other nuclear suppli ers l ike France. It has put out the dubious proposal that40,000 MW of imported nuclear plants are required by 2020 to cope with our energyrequi rements. For th is, an agreement has been reached to buy the latest nuclear reactors fromthe French company, Areva, whi ch are the most expensive, whose technology i s untested,and w hi ch have not been commissioned anywhere yet. These reactors are to be set up inJaitapur, Maharashtra. The local people have been conducting a sustained struggle againstthe nuclear project.

2.76 The CPI (M) has demanded an immediate halt to the import of nuclear power plants toJaitapur and other locations. Existing nuclear power plants in India should undergo athorough safety review to be conducted by an independent body. There has to be anindependent and autonomous nuclear safety regulatory authority. The proposed legislationby the government to set up such an authori ty w i ll only make it a controll ed body captive tothe government.

BIG BU SI N ESS, M ON EY POWER AN D POLI TI CS2.77 Poli ti cs and the poli ti cal system have borne the direct impact of neo-liberali sm thenexus between big business and poli ti cs has become pronounced. Poli cies made by successiv egovernments openly serve the interests of the big bourgeoisie and foreign capital at theexpense of the people. The unprecedented use of money power in electi ons is a direct outcome

of this nexus. Big money is corrupting the entire system. Bourgeois parties are selectingcandidates on the basis of their money power. M oney power is now percolating down to thepanchayat elections. Distribution of money to voters is becoming the norm in many states.This poses a serious danger to the democratic system. The Party has to conduct a broad-basedcampaign against money power in politics and in elections; it has to expose the growingsubversion of public policy making by big business and expose those bourgeois parties whichare ut i li zing such methods.

2.78 Parl iamentary democracy i tself is gett ing corroded by the insidious use of moneypower and by the neo-liberal outlook. The subversion of democracy is occurring through


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money, criminali ty and the influence exercised by mafia groups at various levels. The poli ti csdictated by neo-l iberali sm has resul ted in the growi ng restri ctions on democratic rights theright to hold demonstrations, public meetings and general strikes are being circumscribed orprohibited by administrative measures and judicial fiats. The corporate media is used tomanufacture a consensus against protests by the w orking people.

ELECTORAL REFORM S2.79 Electoral reforms are a vital necessit y both for safeguarding the democrati c system andto check pol it ical corrupt ion. Stri ngent provisions have to be made in the electi on rulesagainst the use of money power and i l legal money in elections. State funding in kind andsupply of electi on materials should be in troduced. There has to be equi table access for electi onpropaganda in the media. The law should be amended to prohibit paid news and make it anelectoral offence. The basic reform of the electoral system requires the introduction ofproportional representation on a partial list system to obviate, to some extent, the use ofmoney and muscle power. The CPI (M) and the Left have to bring electoral reforms on to themain poli ti cal agenda.

CENTRE-STATE RELATI ONS

2.80 The trend of centrali zing powers in the hands of the Centre and encroaching on thepowers of the states has continued without respite. While political interventions like use ofArticle 356 against state governments have declined given the fact that there are coalitiongovernments at the Centre and the ruling alliance often does not have a majority in both theHouses of Parliament, the assault on the states rights has gone ahead both in the financialand legislative spheres. Implementation of neo-l iberal reforms is made a condi tion for transferof resources and grants. Centrally-sponsored schemes are used for this purpose. The 13thFinance Commission has continued the trend of the earlier tw o Commissions and made morestringent conditi onal i ties. The Centre refuses to devolv e 50 per cent of the share of taxes to thestates. The UPA-II government has been pushing through a series of legislations whichencroach on the powers of the states in areas such as education, cooperative institutions andeven in the proposed legislation on food securi ty . Though the dependence of the states on the

Centre has grown, there is grow ing resentment at the overbearing atti tude of the Centre. TheCPI(M) has consistent ly stood for restructuring of Centre-State relati ons and the Party shou ldbe in the forefront in taking up the issues of protecti ng the rights of the states and working forthe restructu ring of the Centre-State relati ons.

WOM ENS STATUS2.81 The hypocri sy of the UPA Government on issues concerning womens rights isexemplified by its refusal to push for the Womens Reservation Bill in the Lok Sabha eventhough almost tw o years have passed since its adoption i n the Rajya Sabha. After severalStates had taken the ini ti ative, the Central Government legislated for 50 per cent reservati onfor w omen in panchayats and local bodies. India is now behind most of i ts neighbours,including Pakistan and Afghanistan, on the issue of womens representation in Parliament.

In the Global Gender I ndex that uses four parameters such as labour participati on, education,health and survival, and political empowerment to measure the gender gap, out of 135coun tri es, In dias ranking w ent down from 98th in 2006 to 113th in 2011. Indias 2011 censusrevealed another horrifying reality, namely the rampant use of sex selection methods to killfemale foetuses. The chi ld sex ratio came down i n 2011 to just 914 females to 1000 males, thelowest since independence and a sharp drop of 13 percentage points in just a decade. In th isperiod, the overall impact of Government poli cies on w omens l ives in the form of price rise,irregular employment and consequent fluctuating incomes, as well as increasing violencehave led to a deterioration in womens status. Neo-liberal policies with their emphasis oncutting social subsidies have added to womens domestic workload and their almost sole


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responsibilities in the care economy. The high prices of essential commodities have added tothe numbers of malnourished women and girl chi ldren. 42 per cent of chi ldren under the ageof 5 suffer from malnu tri tion.

2.82 At the national level the UPA Government has claimed as a great achievement the factthat 51 per cent of w orkers in MGNREGA w orksites are women. The truth i s that theincreasing number of women w orkers reflects higher di stress levels among women w ho areforced to accept MGNREGA w ork, in spi te of the high w ork norms and hard w ork, becausethey have no choice. This is further confirmed by Government figures which show that thewages earned by MGNREGA w omen are less than the minimum wage sometimes by upto 25to 30 per cent. In th is period, the trends of contractuali sation and casual isation of the femalework force in parti cul ar have grown. A l arger number of w omen are involved in home basedwork w i th very low piece rates and no labour or social insurance rights. The Governmenti tself is the greatest exploi ter of female labour as can be seen in the exploi tati ve condit ions ofwork of over 50 lakh women employed in various Government projects such as Anganwadiworkers or as ASHAs in the rural health mission or as mi d-day meal workers in the schools.Shamefu ll y the Cent ral Government continues to treat these lakhs of women as honoraryworkers giv ing them a pit tance, displaying the patriarchal atti tude of the State towards

womens work. In urban areas the large force of domesti c workers, mainl y women, have sti l lnot been recognized as workers at the national level although struggles in some states havewon them some rights.

2.83 A serious consequence of pri vatisation of the banki ng sector and the erosion of pri ori tysector loans is the reversal of the gains made by self-help groups of women covering over 3crore women. The promotion of Micro Finance Institutions in a completely deregulatedframework and exorbitant interest rates, to substi tu te the earlier bank loans and l inkages withthe self-help groups, has had a devastating effect. These moneylenders of the neo-l iberalisation age have driven hundreds of women to sui cide and thousands of fami l ies havebeen ruined because of the unregulated practices of the MFIs supported by the CentralGovernment . I n parti cular the SHGs among ST and SC women have suffered the most.

2.84 Neo-liberalism has spaw ned cul tu res which de

Draft Political Resolution - 2oth Congress of Cpim

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