Globalization and the Indian Working Class Movement by variablepitch338

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									Globalization and the Indian Working Class Movement

Venkatesh Athreya M.S.Swaminathan Research Foundation, Chennai, INDIA MAY 27, 2008, Paris, FRANCE

Indian Economy under Globalization and Neoliberal Reforms, 1991-2007 • Key Elements

Economy opened up to imports of goods, services and capital Privatization vigorously pursued Deregulation accelerated

Some facts about India
• Huge country, large numbers, big territory: Billion plus people over 2.5 million square kilometers

• Diverse languages, ethnicities, religions
• Caste and other pre-capitalist relations

India’s Working People
• 72 % live in rural areas (2001) • 73 % of rural labour force in agriculture and allied activities. (Males 66.5 %, Females 83.6 %) (2004-05)

• As of 2004-05, estimated employment was 457 million, of which 70 million were regularly employed, 130 million casual and 257 million self-employed • 86.32 % of the employed were in the unorganized sector, rest in organized sector

Impact of Globalization: Some numbers
• Between 1999-2000 and 2004-05, the number of workers in the unorganised sector went up from 343 to 397 million • In the organised sector, the number of workers went up from 54 to 93 million. But the entire increase in was accounted for by informal workers • Daily earnings of workers have declined for most categories

Average Daily Earning of Workers in the Age Group 15 to 59 Years (1993-94 Prices), Rupees
Agriculture Category Rural Male Casual Regular Rural Female Casual Regular Urban Male Casual Regular Urban Female Casual 19.4 17.2 24.7 23.7 30.0 38.9 28.1 39.6 39.3 97.3 38.2 76.5 18.0 92.9 19.3 52.1 23.5 106.5 25.8 101.4 25.5 31.0 27.8 31.5 37.5 91.3 39.5 51.6 Status Regular 1999-00 44.2 2004-05 41.1 Non-Agriculture 1999-00 90.8 2004-05 88.2

Growth rate of Average Daily Earning of Workers in the Age Group 15 to 59 Years (1993-94 Prices) between 19992000 and 2004-05
Category Status Regular Salaried Rural Male Casual workers Regular Salaried Rural Female Casual workers Regular Salaried Urban Male Casual workers Regular Salaried Urban Female Casual workers Agriculture -1.44 1.74 0.32 1.40 -10.92 -1.30 0.36 -2.38 Non-Agriculture -0.58 1.04 -10.79 1.89 -0.98 -0.57 -4.70 -0.82

% of emoluments & wages to gross value added in organised manufacturing sector
45 40 35 30 25 20 15 10 5 0 1981-82 1991-92 Emoluments/GVA Wages/GVA 2003-04

Nature of reform policies
• Dismantling controls and “freeing” private players • Privatization, with related “incentives”

• Opening up the economy to “free” cross border flows of capital and commodities • Exclusive focus on reducing the fiscal deficit by reducing expenditure

Agricultural Policy : Deflationary
• Focus on fiscal deficit reduction: Subsidies cut, leading to rise in input costs • Import controls removed, resulting in a sharp rise in agricultural imports and crash in output prices • Financial liberalization leading to reduction in institutional credit and rise in interest rates • Reduction in rural development expenditure affecting both supply infrastructure and demand • Collapse of the PDS from ill-advised targeting

The Agrarian Crisis/Distress
• Tens of thousands of farmers’ suicides since 1998 • Slowing down of agricultural growth • Stagnation in foodgrain output since 1999-2000 • Little increase in farm productivity

Annual Rates of Growth
Period 1950-51 to 64-65 1965-66 to74-75 1975-76 to 84-85 1985-86 to 94-95 1994-95 to 04-05 Source: C.P.Chandrasekhar Food Grain 3.0 3.4 2.5 3.1 All Agriculture 3.3 3.2 2.6 4.1

0.7 0.6 The Progress of Accessed at Reform and the www.macroscan.com Retrogression of Agriculture

Area, Production and Yield of Food Grain, 1996-97 to 2006-07
Year Area (Milln Ha) Production (Milln tonnes) Yield (Kg/Ha)

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

123.85 125.17 123.11 121.05 122.78 113.86 123.45

192.26 203.60 209.80 196.81 212.85 174.77 213.19

1552 1627 1704 1626 1734 1535 1727

2004-05
2005-06 2006-07*

120.08
121.60 124.07

198.36
208.60 211.78

1652
1715 1707

Table - 4
Table – 4 : ANNUAL RATE OF GROWTH OF TOTAL EMPLOYMENT (%)

Annual Rate of Growth of Total Employment (%) Rural 1983 to 1987-88 1987-88 to 1993-94 1993-94 to 1999-00 1.36 2.03 0.58 Urban 2.77 3.39 2.55

Net availability of Food Grains, grams per person per day Year Cereals Pulses Food Grain 1997 1998 1999 2000 2001 2002 2003 2004 2005 466.0 414.2 429.2 422.7 386.2 458.1 408.5 426.9 390.9 37.1 32.8 36.5 31.8 30.0 35.4 29.1 35.8 31.5 503.1 447.0 465.7 454.5 416.2 493.5 437.6 462.7 422.4

Imports of Agricultural Products into India

Globalization and the challenges before the working people of India
• Fight attack on basic trade union rights in the name of labour

flexibility
• Organize the unorganized workers • Fight to reverse neoliberal policies

• Build wider trade union unity through joint struggles
• Unite with the peasantry and the rural labourers to build a wide coalition to fight globalization • Develop instruments and struggles of international solidarity


								
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