The Hindu Business Line : CPI(M) formalises policy on economic agenda — `FDI okay only if it enhances country's productive capacity'

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CPI(M) formalises policy on economic agenda — `FDI okay only if it enhances country's productive capacity'

Our Bureau

New Delhi , June 15

THE CPI (M) today said it had formalised its policy and approach towards globalisation, foreign capital inflow, foreign funding, privatisation and the public sector.

Releasing its political and organisational report adopted at the 18th Party Congress and finalised at the recent Central Committee meeting in Kolkata, CPI (M) Polit Bureau member, Mr Sitaram Yechury, told reporters that the changes incorporated now would guide the party in taking a stand on economic issues, not only with respect to the UPA Government at the Centre, but also by the CPI (M)-led governments in the country.

Stating that FDI should be allowed only if it enhances the country'sproductive capacity, upgrades technology and generates employment, Mr Yechury added that the Left-ruled State Governments would not accept foreign loans, if the conditionalities included structural changes, privatisation, downsizing staff, cutting subsidies or entailing fiscal changes.

He said the party should consent to foreign institutional loans "only if it does not weaken our fight against the imperialist-dictated policies." "The thumb rule that must guide our governments as well as other institutions in deciding the acceptance of such funds must be based on an evaluation that this will provide some relief to the people and lead to economic improvement without compromising the State Government's autonomy in economic decision-making," he said.

Mr Yechury said the Left Front government in West Bengal, then led by Mr Jyoti Basu, had refused to accept a major loan when the World Bank wanted to vet the State budget before it was placed in the State Assembly. "Our Government had refused to take a loan with such a condition which could have undermined our economic sovereignty," the CPI (M) leader said.

He said the internationalisation of finance capital had now placed "absolutely no restriction on its global movement in search of predatory speculative profits."

"On the other hand, the large-scale impoverishment of the vast majority of the global population and consequent shrinkage of their consumption capacity had rendered the entire globalisation process unsustainable."

This, he said, had led to the withdrawal of the State from meeting its social obligations to the people and required "popular intervention."

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