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Left critical of economic policies, but to continue support

	May 28, 2007

The Left parties have utilised the third anniversary of the UPA to project again their criticism of the Centre’s economic policies. The CPI(M) says that the policies are only helping the BJP-led opposition. An editorial in People’s Democracy asked the ruling coalition to do some introspection. The write-up accuses the UPA of ignoring the promises it had made in the CMP.



Economic reforms came under fire in the editorial. The CPI(M) is critical of foreign investment in retail and insurance, moves to get private players in management of Pension Funds and greater takeover room for foreign banks. The CPI(M) also picked holes in the way the Government has tackled communalism, internal security and foreign policy issues. The editorial emphasises that the UPA was formed mainly to keep communal forces at bay. “However, if the UPA’s policies are benefiting that very communal combine, it is tantamount to felling the tree on which one is sitting.” The paper expresses distress at the continued neglect of the farm sector. The editorial also criticies the UPA for its failure to check rising prices.



CPI general secretary A.B. Bardhan described the performance of the Manmohan Singh Government as a mixed bag. He said in New Delhi on May 21 that the Government had passed some pro-people legislation, but put on hold Bills for unorganised workers, agricultural workers, and providing reservation for women in legislatures. Bardhan said the Left should review the performance of the UPA Government.



CPI(M) general secretary Prakash Karat said in Coimbatore on May 23 that the UPA Government had not heeded the counsel of the party on curbing the price rise and also on strengthening the public distribution system. He rejected Finance Minister P. Chidambaram’s explanation that prices had gone up because the government was spending huge funds on welfare schemes.



The Left parties have asked Prime Minister Manmohan Singh to put on hold the decision to operationalise the Pension scheme.





UPA not complete failure : CPI(M)



There is no immediate possibility of the Left parties withdrawing support to the UPA as the UPA and the Left have to stick together to checkmate the BJP-led National Democratic Alliance. Also the CPI(M) does not share the perception of some of the other Left parties that the UPA Government is a total failure. According to the CPI(M), the Government did take a number of pro-people measures and was prevented from taking some regressive steps because of the Left’s pressure.





Show social responsibility : PM tells industry



Carrying forward the UPA’s projection of being pro-poor, Prime Minister Manmohan Singh, addressing the annual session of the Confederation of Indian Industry (CII) in New Delhi on May 24, urged captains of industry to share benefits with the poor. He cautioned industry against any form of cartelisation and said that efforts to maximum profits should be within the bounds of “decency and greed,” as rising prices severely affected the common man. He outlined a 10-point social charter for industry to help adopt an inclusive and efficient growth path. He said, “I invite Corporate India to be a partner in making ours a humane and just society.”



Dr. Manmohan Singh warned business that growing income inequalities could lead to social unrest, if not addressed by the wealthy. The Prime Minister said, lavish weddings were an example of wasteful spending. “Such vulgarity insults the poverty of the less privileged,” he said. “We cannot afford the wasteful lifestyles of the western world. Conspicuous consumption must be reduced,” he said. He proposed that companies should resist excessive remuneration to promoters and senior executives.



Singh asked industry to fight corruption. “Corruption need not be the grease that oils the wheels of progress,” he added. “There are many successful companies today that have refused to yield to this temptation. Others must follow.”



While the Left parties have backed the Prime Minister’s advice to industry, the corporate world appears to be not very receptive. CII chief Sunil Bharti Mittal said, “salaries cannot be legislated.” He said salaries were products of demand dynamics. But Mittal supported the Prime Minister’s concern on inequalities and said the message is to be taken in the right spirit.







Nod for social security for workers in the unorganised sector



On Thursday, May 24, the Union Cabinet approved legislation to provide social security to workers in the unorganised sector. The Bill will be introduced in Parliament on the first day of its Monsoon Session. Social security for the unorganised sector was a commitment made in the Common Minimum Programme.



Besides providing for a number of welfare schemes for the workers, who constitute over 90 per cent of the 40 crore workforce, the legislation envisages the setting up of a national advisory board to design schemes for different sections. Information and Broadcasting Minister Priyaranjan Dasmunsi said.



The schemes notified on the board’s recommendations would contain provisions for life and disability cover, health benefits, old age pension or any other benefit decided by the Centre.



“The cost of the entire scheme is being worked out and it would be borne by the Centre”, Dasmunsi said.