The tyranny of economic globalism neglecting the social cost to people in In 1998-99 the external debt is $95.2 bn. This means the repayment problem is more intractable today than it was in
But behind the promises of "good 1991. The ratio of debt service payments life" for all, there is the grim realities of to export of goods and services is 30.8% increased inequality, deprivation, threat or about Rs.250 bn. India is now the thim mc ev p.a th SCI $3. tak eXI
The collapse of the Soviet bloc, the end of the cold war, the emergence of the uni-polar world, marginalised role of the UN system and the victory of the neoliberal economic and political agenda have affected India's domestic economy and political structures and policies.
tou bil doi of
Ajit Muricken* MUMBAI-In the emerging global to livelihood, disintegration of social situation the international position of the order, displacement and landlessness, South has considerably weakened. The alienation and violence as well as a North has intensified its neoliberal growing fear of the future. Poverty and offensive to integrate the economies of exclusion form an integral part in the the South, by profound changes in trade, finance and technology. The result is the The developmental model based on so-called "process of Globalisation". the neoliberal paradigm has not only This has been buttressed and enhanced widened the social and economic by the Structural Adjustment Programme disparity but also forced new groups of undertaken at the instance of World Bank people into poverty and dislocated local and International Monetary Fund- communities and traditional support themselves handmaidens of global capital, international private banks and Marginalisation and exclusion are giant corporations. inherent in the very structure of econo-
The immediate compulsion for India mic globalism and economic growth adopting SAP was the balance of which in its present construct cannot payment crisis which forced the govern- solve the problem of poverty for various ment to initiate a series of economic reforms from July 1991. The whole • economic growth is predicated on a policy package makes a significant labour saving technological paradigm. departure from the past. The long • science and technology has been cherished principles of growth with controlled by the West to suit their justice, social responsibility and resource endowments and interests. accountability, equity and self-reliance • labour saving technology is the best have been rendered obsolete with the way to beat labour and trade unions. new slogans of "liberalisation", "privati- • market responds to the needs of the sation", "globalisation", "efficiency" and rich only. By its own logic it excludes "competitiveness". those who have no entitlements to participate in the market exchanges Economic policy paradox and the production pattern is naturally The basic argument of this policy is geared to meet the choices of the rich. fairly logical within the neoliberal paradigm but adversely affects real peoples lives. It depends on the following Debt crisis—a vicious cycle propositions: Between 1980 and 1991, India's • Economic growth is central to the external debt increased 547% to reduction of poverty Rs.1,004.25 bn. This excludes the
This growth is best brought about by defence debt and short-term debt of less the kind of economic policies, which than six months duration. After the have focussed on liberalisation of adoption of the SAP, debt rose rapidly to internal and external markets and Rs.1,990bn in March incentives for private capital rather Rs.2,440bn ($87 bn) in September 1992 than active state intervention; (Economic and Political Weekly 6
March 1993 and 5 June 1993). • Converting exports into the main source According to the 1993 Annual Report of economic growth of the Reserve Bank of India, between
Give absolute precedence to the March 1990 and March 1993, the foreign preservation of macro-economic debt increased from $61.5bn to $89.5bn, objectives and policies, while (Rs.1059.04bn to Rs.2800.76bn).
their everyday life. 2800 22 International Viewpoint #311 May 1999 development model.
fisc bil dur 9.4 Gr alr For and are eco agi par of illi cap SOC out are per hea dri sar bel on res
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* India
most indebted country in the world, and every Indian family has to pay Rs.1,400 p.a. ($38) to foreign powers for serving the debt alone. In 1993, the debt servicing was about $8.2 bn, including $3.3 bn in interest payments.
Notwithstanding several initiatives taken by the Government to liberalise external trade, India's trade deficit has touched a record high.
The trade deficit widened to $5.8 billion during April-October 1998double the level during the same period of 1997.
The total trade deficit in the current fiscal year is expected to be around $9 billion. Exports fell 5.1% to $18.87 during April-October 1998. Imports rose Growth, disparity and injustice
The New Economic Policy has already shown spectacular results. Foreign investment is increasing by leaps and bounds. Multinational corporations are entering almost every sector of the economy. the share markets are showing a great activity and vibrancy.
The availability of consumer goods— particularly luxuries-has increased. Consumer choice has multiplied. At the higher levels salaries have shot up. A new affluence is in evidence everywhere.
Economic principles and policies are oriented to meet the demands of the 250 million member middle class while neglecting the survival demands of the poor through employment generation. This process is basically the inversion of the Keynesian principle. Income-poverty
Much academic debate on poverty and deprivation in India focuses on income-poverty. Current evidence suggests that income-poverty worsened in India between 1991 and 1994.
The proportion of poor households declined from 39.3% in 1987-88 to 34.3% in 1989-90 and then rose to 40.7% in 1992-93. In absolute terms, there were 310m. persons living below the poverty line in 1987-88. By 1992-93 the number of poor had risen to 355m.
At least 291 million adults are still illiterate. Most are women, whose capabilities are the key to transforming society. And 45 million children were outside the Primary Schools in 1995.
Nearly one third of children under 16 are forced into child labour. 135 million people are denied access to primary health care, 226 million are without safe drinking water, 640 million lack basic sanitation. (Mahbub ul Haq (1997)).
In short, 350 million people "live" below a poverty line which views people only as a statistical or biological entity and not as a social individual with self-respect. Ironically, the same India which houses the largest number of world's poor is the largest arms importer among the developing countries.
Urban sector
With the globalising of the Indian economy there is a radical reorganisation of manufacturing activity. The manufacturing process is trans-nationalised fragmented and dispersed across the country. It is becoming extremely capitalintensive and increasingly replaces labour with machinery. The thrust of contemporary capitalism is more on dead labour than on living labour, on transfer of new values rather than creation of values. Similarly it is seen that it is not industrial but finance capital which dominates the economic scene. Speculation becomes more important than manufacturing
The majority of the workforce-both men and women-are employed in the rapidly swelling unorganised sector. This sector is characterised by uncertain wages and job insecurity. With virtually no legal protection or unionisation, workers in this sector are vulnerable to exploitation. In Mumbai (Bombay), the unorganised sector employs around 85% of the city's working women.
As the SAP unfolded, industries retrenched regular employees in favour of contract and casual workers. In order to reduce product prices to improve global competitiveness, companies shut down divisions and started sub-contracting work to casual workers.
The reforms also led to spiralling inflation as the lowering of trade barriers affected domestic prices. Trapped in the vortex of growing shrinking household incomes and skyrocketing food prices, more and more women were forced to enter the labour market with weakened bargaining
The SAP's deregulation of the labour market has also worsened conditions for
Even within the informal sector, women tend to be found in the more exploitative jobs: home-based workers in those employed in shrimp- sorting or garment factories are mainly women. "Since their jobs are insecure, women in the unorganised sector vulnerable to sexual exploitation." says Marium Dhawle of the Democratic Women's Association.
The link between the economic reforms and the push towards the informal sector is illustrated by data from the national sample survey. The proportion of casual labourers in the country's female work force rose from 41% in 1990-91 when the reforms were introduced to 45.3% in 1993-94. The proportion of regular salaried workers fell from 4.5% to 3.4% during the same period. Agrarian sector & globalisation
The logic of liberalisation prevalent in the industrial sector holds true also for the agricultural sector. In the name of efficiency small farmers are gradually driven out of agriculture by big farmers
International Viewpoint #311 May 1999 23
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Piccadi
* India and agri-businesses. This has become a major area of concern especially in relation to the question of food security-critical in a country where a third of the population lives below the poverty line.
The export-drive has lead to further inequalities in land ownership. Small land-owners, without the means to shift production to more profitable exportcrops will have no option than but to sell off their lands and become landless labourers. Employment opportunities are minimum in the export-crops, the sector being highly capital intensive. This has resulted in massive unemployment, mass migration, disruption of family and family life, child labour and intensified exploitation of women. Thus, the globalisation of agriculture leads to the demise of rural life and society. Food security
The food security of Indians, especially the poor, is under threat by liberalised economic policies.
Indian agriculture is heading for a crisis of food production, food security and rising prices. The export driven policies of successive governments committed to liberalisation, have led to diversion of vast areas of agricultural land for horticulture, aquaculture, orchards among others. Government policy has deliberately encouraged production of commercial crops through increases in subsidies and loans.
According to figures compiled by the Foundation for Science Technology and Ecology (RFSTE), production of food grains like millet, consumed mainly by the poor, declined from 1.9 million tonnes in 1871 to 821,000 tonnes in 1995-96. The area of coarse cereals also declined from 45.95 million hectares to 31.49 million hectares. Paddy fields are giving way to factories and traditional crops like rice are being replaced by commercial crops. As a result, there is little employment for local farm hands. Women have been reduced to prostitution
Prices of these grains had become higher in India than comparative prices on the international market. In 1992-93,
WET 2800 24 International Viewpoint #311 May 1999 the wholesale price of wheat per quintal panacea for women. It is far less secure rent in India was Rs.304 compared to Rs.190 than the formal sector in terms of The in the US. The wholesale price of rice security of work and generally pays less was Rs.481 compared to Rs.348 in the than the minimum wage. In many ways it mos US. To make matters worse, from July is a disguised form of enslavement. to t 1997 to July 1998, the retail price of pos wheat and rice rose 12.5% and 22% Political implications reli respectively. As a result of trade There are serious political consequen- wer liberalisation policies, cereal exports had ces inherent in the emerging nexus min increased from 12% to total agricultural between new institutional arrangements, ism exports in 1991-92 to 27% in 1995-96. new values and new individual drives ider through which people are being "marke- of v Globalisation and gender tised'. Quite apart from the decline in the
At one level globalisation can be seen role of the State in preserving spaces for Co as compounding the class differentiated the underprivileged and protecting and gender-specific character of the peoples and cultures from globalising has failures of the post-independence period trends. there is the danger of the whole toile Failures in agrarian reforms, egalitarian normative framework of democracy Tra distribution of resources, development of being undermined. post infrastructure and provision of health and The assumption that the liberalisation goo child-care facilities have taken gender- of the economy would lead to more mod specific forms. liberal polity and generate more liberties reac
The New Economic Policy is reinfor- for individuals and groups is thoroughly visit cing trends of the informalisation of the unfounded. On the contrary it will female workforce, subcontracting and reinforce the authoritarian tendencies of to b piece-rate production by MNs greater the ruling oligarchy which has already the utilisation in the informal sector, and eroded the basic institutions of demo- ludi increasing the number of women in the cracy and is making the State more and tion: reserve army of labour. Other consequen- more repressive and vindictive towards have ces of the Structural Adjustment Prog- the so-called 'weaker sections". stru ramme for women are of course The institutions will be further eroded third unemployment, retrenchment, margina- once whatever little welfare orientation hity lisation in the labour force, increase in there was in the Indian State is discarded of girl-child labour, prostitution or considerably reduced. Already one relegation to the low-wage and unorga- notices that several of the IMF World nised sectors, increased drudgery for Bank conditionalities are forcing the poor women in acquiring necessities such government towards anti-labour, antias fuel and water. rural and anti-poor positions which may
Livelihood resources for women have be to the liking of the business class or clearly dwindled and new ways of cur- even the professional middle classes but tailing their consumption have emerged will certainly not produce a more even as the commodity market expands democratic ethos. and proliferates. At the same time women As the sense of insecurity among the have become the objects of numerous people grows, alongside persisting development and micro-credit policies. poverty, unemployment and increasing This period has seen a feminisation of injustice and discrimination, it pushes the subsistence agriculture as men move into poor and the unemployed into a culture of protest, anger and desperation.
The pattern of the global economy Violent civil upsurges have also compels women to bear the brunt of the shown a remarkable tendency to occur, strategies of structural adjustments; often at slight provocations or flimsy
Market pressures pull women into excuses. In certain areas, including the exploitative relations in both the formal metropolis Mumbai, such mass violence and informal sectors; threatens to become endemic.
The informal sector is by no means a More serious conflicts between diffeгар arOL disi ban in tion tior def reg ture toil pro cal stra ide
rent groups also break out periodically. These can be ethno-linguistic, inter-religious communities, inter-caste etc. The most serious challenge to the polity and to the democratic traditions is today posed by communalism-a mix of religion and politics, in a conflict between the majority Hindu and the minority Muslim population. Communalism has now become a principle of ideology, organisation, mobilisation and of violent action. Conclusion
The New Economic Policy packaged has been an unmitigated disaster for the toilers unemployment is on the increase. Traditional occupation and petty enterprises face extinction. Mass consumption goods are scarce. Prices of essential commodities and services are climbing out of reach. These effects are now quite visible.
The globalisation programme needs to be criticised because it firstly reduces the controls over economic activity, including prices, supply, employment conditions, wages etc. that the government can have and secondly because it produces structural distortions in the economy, and thirdly because it increases the vulnerability of the economic activity to vagaries of international market and finance. All these effects are detrimental to the interests and welfare of the people. People's Movement and Resistance to Globalisation
The frightening fact is that the political parties in India were unable to offer any credible resistance to Globalisation and there now seems to be a consensus amongst these parties on the issues of Globalisation though the perception on the issue differ among themselves. The differences are on specific programmes, measures to be taken, sectors of investment, etc.
However organised trade unions related to different political parties offered resistance to the onslaught of Global capitalism by differing from their respective party positions.
These struggles by and large have been reactive and defensive in nature against unemployment, job security and rapidly worsening social conditions around public sector undertaking facing disinvestment and the insurance and banking sectors.
Defensive struggles while necessary in sustaining elementary living conditions against the onslaught of globalisation provide short term victories. The defence of these interests in the long run requires radical restructuring of the structures of world capitalism by uniting the toiling people with an internationalist programme and united struggle. This calls for not only the reorientation of strategies but more fundamentally the ideological and cultural education of toiling people in values of solidarity, cooperation and egalitarianism.
Various mass organisations in the country in recent past have risen against globalisation in whatever manner they could. These movements have made certain impact by offering resistance to invasion of Global Capitalism by highlighting and struggling on issues affect the everyday life of the people.
A major organisation at the forefront of the struggles against infiltration of Global capitalism was the Karnataka Rytha Rajya Sangha (KRRS). It became famous in the early nineties by its agitation against Kentucky Fried Chicken and against the attempt at gaining monopoly rights on seed and plant material by Transnational companies like Cargill. The farmers were outraged by the prospect of buying seeds every season from multinational seed companies. Methods of seed preservation integral to the farming experience and knowledge system of farmers since the time immemorial will be destroyed by this
A. K. Ramakrishnan has explained how the farmers movement was able to raise major issues related to globalisation on a national scale and achieved limited success in resisting TNC operations in seeds and related fields and in obtaining assurance from the Indian government that farmers rights to grow, exchange and reuse seeds will not be affected by signing the GATT treaty. Resistance also resulted in blocking, at least for the time being, the amendment of the Indian Patent Act of 1970 in the tune with GATT/WTO specifications."
The export-oriented policy of the Central Government in the fisheries sector has put severe pressure on traditional fisherfolk and small producers. Under the pressure of TNCs and National Monopoly houses, the waters of the Indian Exclusive Economic Zone have been opened to joint venture companies.
The survival of about 50 million traditional fisherfolk across the sea coast has been severely threatened by the new policy of allowing joint ventures for deep sea fishing. This new policy will lead to the indiscriminate destruction of marine ecosystem and erode livelihood of traditional fishing communities. It will have serious ecological consequences, through the generalisation of intensive mechanised fishing.
The National Fish Workers Forum (NFF) was in the forefront of the agitation taking on issues of survival of traditional fisherfolk, demanding the preservation of marine ecology for use in a sustainable manner, and banning fish trawling during the monsoon monthsthe breeding season.
The opening up of waters of the Indian Exclusive Zone (EEZ) to joint ventures which exploit marine wealth in a indiscriminate way forced the fishworkers to launch major struggles on these issues nation-wide. Protests, blockades, demonstration and hunger
International Viewpoint #311 May 1999| 25
* India strikes forced the central and state government to concede some of the demands. Notable among the gains were the cancellation of permits to foreign vessels under joint venture, denial of extension of existing licences and adopting of measures to preserve marine ecosystem.
Privatisation has become another "mantra' in the globalised era. The ruling block has expropriated large tracts of fertile agricultural land for shrimp aquaculture by larger corporate interests.
Prompted by rapid returns, short gestation periods, and the immense demand abroad for shrimp, many corporate house undertook prawn farming in
Ath Congres of the Fourth nternationa
Transformation and regroupment
Regroupments of forces determined to learn the lessons of the historical abomination that was Stalinism and to continue, against the winds and the tides, to fight against capitalism are being realised in a number of countries.
In all the countries where such possibilities exist, the organisations of the Fourth
International are ready to be part of the process-as an important step towards the recomposition of the anti-capitalist left on a world scale.
At the international level, the Fourth International is an active participant in regroupment, bringing with it the advantages of a long tradition of combat against capitalism and Stalinism. *
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< International Viewpoint@compuserve.coms 26 International Viewpoint #311 May 1999 peo] culti torable tran nisal Placade each DRINK rela unde chal and Just con supp com be c massive way causing ecological, social This new politics is not an "end state" com and economic destruction due to high but the affirmation of the State as an rate of water usage, introduction of instrument of peoples power, peoples chemical input, and salination of water. democracy and peoples' empowerment.
The struggle by organisations like It also means reaffirming the States' Grama Swaraj Movement against globa- obligation of justice for the people from lised aquaculture resulted in the Supreme where it supposedly derives its legitiCourt of India giving a verdict to close macy and power according to the demodown commercial shrimp farms along the cratic traditions and challenging and No Indian coast. But the government is now altering the development paradigm that $3 contemplating ways to dilute the argues for the market as the only provi No judgment. der and the new answer to the problems and
As in the case of the fishworkers' of economic development. £2 movement, movements against export- Global capitalism is no longer identi- No oriented aquaculture also have formed a fied with one country. It is a borderless the national network, People's Alliance global order with increasing de-nationali- No. against Shrimp Industry (PAASI) and sation of the nation state. It is at work $3 they have also initiated joint activities through the new liberalising disguise that No. with similar struggles in the third world. has metamorphosed through the collu- 194 Vandana Shiva has documented the of global market. It cannot be resisted sion of the ruling bloc and the agencies No. attempts to generate awareness among Car shrimp consumers in the West. with isolated actions, confined to indivi- LÖI
The new politics of solidarity bet- dual countries however militant the No. ween Third World communities and struggle may be. Cal northern consumers is part of an There is a need for strategic thought emerging citizen politics at the global as linkages are built among organisations No 193 level that is making visible the social and and movements that might form part of a ecological costs of globalisation and counter- hegemonic bloc. The beginnings No creating new mechanisms for social of a new grassroots internationalism of £2 control and regulation of commerce at social movements have to be affirmed, as No the international level. a new stage of internationalism from £4,
Globalisation has been very rapid in below. No Indian infrastructure sectors like power. The immediate struggles will have to Mic Transnational corporations have been focus on the questions of survival and No. able to make great inroads into the power sustenance; on economic and social sector as exemplified by the Enron rights, on human rights including the project in Maharashtra and the Cogentrix right to self-determination. Along with project in Karnataka. These mega power protecting the sovereignty of the state against force of international capitalism projects are also centres of people's resistance; the struggle against Enron being and compel the state to fulfil its obligaable to catch wide national attention. tion to the people, to provide them with Apart from these there have been other social security and welfare, and meet struggles against TNCs, including their minimum needs. Also prevent the DuPont in Goa state. state to fritter away our natural resources
The various social movements in the and our environment in the name of country have effectively challenged the development to transnational or indineoliberal paradigm which more or less genous capital. uniformly marginalised communities of The content cannot be exhausted by people from resources and power. The these immediate needs. A goal of a new neoliberal globalist vision of governance universal culture and a new internationalthrough "market" faces serious challenge ism will be necessary components of the and the reemergence of new politics that vision. requires the construction of new kinds of Alliance building and people's solisocial and political institutions which darity is a focal point for promoting will create a real space for the articula- movement for justice concerns and buildup people's resistance against the forces tion and mobilisation of the poor and the most socially oppressed sections of of globalisation across nations.
This alliance should be based on society.
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people-to-people contacts rooted in a culture of friendship and partnership that transcends borders and sectoral and organisational concerns.
This calls for an atitude to learn from each others struggles and strengthen the relationships and alliances already underway in our own societies. We are challenged to be open to other cultures and experiences in our efforts to link not just ideas but persons; to support and contribute rather than merely expect support; to give meaning to language and communication between peoples; and to be open to initiatives and alternatives coming from all levels. *
* Mr.Ajit Muricken is the Director of Vikas Adhyayan Kendra. This NGO was set up in the year 1981. The area of its activities is Western India viz. Gujarat, Goa and Maharashtra. Western India has been held as a model of development and pinnacle of achievements. VAK therefore examines the existing development paradigms critically. It does not stop to criticise the alternative models and indigenous systems. Particular concerns of VAK are the dalits, adivasis and women's issues. Besides, subjects of special concern to VAK are, environment and ecology, religion and society; ideology and culture; and practice of social transformation. The activities of VAK in areas of its concerns have been study and research, consultations, education of the public on issues of concern, publication, documentation, campaigns and advocacy. VAK also publishes a bi-monthly called VIKALP (Alternatives). VAK did extensive campaign and advocacy through the print media against the SAP in Western India in local languages. Several activists could be reached out through the campaign to make them aware of the implications. Several publications were brought out for the purpose. These addressed many misconceptions spread by the mainstream political forces representing the elite, including the ruling party and the parliamentary opposition. For example, the myths of health and health care and role of MNCs, the myths of Dunkel and GATT, World Bank, IMF and SAP, myths of free trade and markets. VAK is currently handling an ambitious project of conducting a mapping of the state to find out the resources of the people and alternatives available for the people. This paper was presented to the March 13 Brussels gathering of COCAD (Committee for the Cancellation of the Third World Debt)/CADTM (Comite pour l'Annulation de la Dette du Tiers Monde) For more information contact the organisers at 29 rue Plantin, 1070 Brussels, Belgium. tel (+32 2) 527 59 90, fax 522 62. 27, e-mail <cadtm@skynet.be>. http://users.skynet.be/cadtm
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