CPM vows to oppose FDI in retail, banking

While the Congress was all praise for the performance of the United Progressive Alliance government at its working committee meeting to review a year of the governance, its ally and supporter, CPI(M) today said the Manmohan Singh government had not done enough.

The CPI(M), which is extending crucial support to the government from outside, vowed to oppose foreign direct investment in retailing and an assortment of other policies that were in favour of big business.

Criticising the UPA government's economic policies, mainly its approach to foreign direct investment (FDI) in sensitive areas like banking, retail trade and mining, the CPI(M) said the government was eager to work for foreign finance capital and big business but "unwilling" to address issues concerning toiling masses.

Sounding the "let's get into the combat mode" bugle, ahead of the crucial Assembly elections in Kerala ad West Bengal next year where the Congress and the Left parties will be ranged against each other, the CPI(M) put aside for the moment, issues relating to communalism and listed out all the areas where the Congress-led government had failed to perform.

Addressing reporters on the two-day meeting of the politburo, which concluded yesterday, CPI(M) General Secretary Prakash Karat said the government's approach to FDI was a "major" area of concern, as such measures "erode national sovereignty and in the case of retail would cause big loss of employment, affecting millions of traders and shopkeepers.

"But the government seems to be determined to go ahead," Karat said. The CPI(M) was against the opening up of the financial sector including banking and insurance, he added.

Declaring that the CPI(M) would not compromise on the basic interests of the working people, he said the party would take up these issues with the government at the co-ordination committee meeting on May 18.

He said the UPA government was not sufficiently concerned on the need to distance itself from the "discredited" policies of the past, warning that CPI(M) would contest this approach and continue to put forward alternate policies.

"Hardly any legislation, which addresses the needs of vast masses of the poorer sections of our country, has been moved in Parliament in this one year by the UPA government. But the alacrity with which the government has moved legislation to push forward policies within the neo-liberal framework is in disquieting contrast," Karat said.

He said the party would not "remain satisfied with just negotiation. We will actively mobilise people and launch movements and struggle to ensure that pro-people measures are implemented".

The CPI(M) flayed the government's "obsession" with FDI-led growth saying this had led to "wrong" (economic policy) decisions including opening up of FDI in the banking, retail and insurance sectors.

Pointing out that the retail sector, which constituted seven per cent of the workforce of the country, was second to farming sector in terms of employment, opening up of the sector would lead to large scale displacement of labour.

The politburo reiterated its opposition to the Banking Regulation (Amendment) Act bill seeking to lift the cap of ten per cent voting right for shareholders in private Indian banks and privatisation of pension funds.

Karat said the UPA government was "not sufficiently concerned about the need to distance itself from the discredited policies of the past" and added the CPI M would play "an independent role and act as the sentinel of people's interests".

"It is for the UPA government in the coming period to ensure the implementation of pro-people measures in the Common Minimum Programme and strike out a path different from the BJP-led government." He said.