From a moratorium on job cuts to prohibiting participatory notes by foreign institutional investors, and reviewing public-private partnerships in infrastructure, the CPI(M) unveiled its “alternative economic policies” in the party’s election manifesto for the 2009 general elections that focusses on a bigger government role in the economy, more stringent labour laws and more financial regulation.
As the party, which holds 42 of the 61 seats held by the Left in the current Lok Sabha, strives to form a non-BJP, non-Congress government under the umbrella of a nine-party grouping that has been called the Third Front, these policies indicate the roadmap it would like to follow if it is in a position to form the government.
“We need an alternative government to carry out these policies. The Congress platform will not work,” said Prakash Karat, CPI (M) general secretary, at the release of the manifesto. He also said the Third Front had reached a broad agreement on “reversing the Congress’ neo-liberal economic agenda and bringing pro-people policies”.
Among other things, the party has asked for immediate relief measures to stop job losses resulting from the economic slowdown. The manifesto has advocated specific relief packages for “affected sectors like textiles and garments, gems and jewellery, leather, handicrafts, coir, cashew, marine products, software and IT etc, aimed mainly at small and medium enterprises”, plus a moratorium on job cuts for workers; and the “invocation of labour laws to prevent retrenchment and lay-offs”.
It also wants to end pay-cuts for employees and says the burden of cost-cutting must be borne by profit earners.
Karat’s party favours extending the employment guarantee to urban areas, more income tax relief for salaried employees, pensioners and senior citizens, a “massive” increase in public investment in agriculture and irrigation and protection against price crashes of crops through price support and increased import tariffs.
Among other proposals, the CPI(M) wants to increase annual plan expenditure up to 10 per cent of India’s current GDP from less than 5 per cent at present. It also wants the Fiscal Responsibility and Budget Management (FRBM) Act, which caps government spending, to be scrapped and the state government’s borrowing limits raised to enable higher public expenditure.
Ruling out any dilution of the government’s stake in public sector companies it advocates “aggressive expansion by centreal public sector undertakings utilising their vast cash reserves”.
In the financial sector, the CPI(M) wants moves towards full capital account convertibility to be reversed. It seeks re-imposing strict controls on the outflow and inflow of finance capital, prohibiting Participatory Notes used by Foreign Institutional Investors (FIIs), discouraging “speculative finance”, a halt to the dilution of government equity in public sector banks; strengthening the public sector in banking and insurance, strict adherence to priority sector lending norms and the scrapping the Banking Regulation (Amendment) Bill to prevent the takeover of Indian banks by foreign banks.
It has also vowed to continue opposing the privatisation of pension funds and the Insurance Bill to increase FDI caps in the sector. The party also wants to review the public private partnership route for the development of infrastructure.
