Tackling the Impact of the Global Economic Crisis

The Polit Bureau discussed the impact of the global financial and economic crisis on India. There is an economic slowdown. The export-oriented sectors like garments, hosiery, carpets, handicrafts and financial-linked IT services have been hit. There is a fall in the prices of certain commercial crops. The slowdown is leading to loss of jobs in the form of retrenchments and layoffs, wage cuts and loss of livelihood for lakhs of people in the services and unorganised sectors.

The main concentration of the government has been to provide liquidity for the banks and the markets without paying attention to boosting demand in the economy by large-scale public expenditure. The UPA government is more concerned with protecting the interests of the big financial companies and the corporate sector.

The CPI(M) demands urgent steps to be taken to tackle the unfolding economic crisis. These should include:

· A special fiscal package to increase public expenditure in a manner which will increase income and consumption of the working people

· Expand fiscal deficit of Central and state governments. Scrap the FRBM Act

· Massive public investment in sectors which are employment intensive, expansion of NREGA

· Protection of jobs by announcement of moratorium on jobs and wage cuts in the organized sector

· Boosting of foodgrains production and public procurement

· Strengthening and expansion of the Public Distribution System and increase the allocation of rice and wheat to the states

· Scrapping the increase in petrol and diesel prices

· Adequate relief packages for export oriented sectors

· Credit for medium and small scale enterprises and tariff protection.

The Polit Bureau demands that the government halt moves for further financial sector liberalization. The government should not proceed with the legislations such as Banking Regulation Amendment Act, the Bill for increasing the FDI cap in Insurance and Pension Bill.

The Polit Bureau has directed its Party units to urgently take up the struggles to defend the livelihood, jobs and rights of the working people. The Party appealed to the trade union movement and other mass organisations to take up the immediate issues arising out of the impact of the economic crisis and to fight for steps to provide relief to the working people.

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It all sounds vaguely familiar, does it not?