People's Democracy

‘Invest In Youth’

THE CPI(M) Polit Bureau member Sitaram Yechury called on government to invest in youth if the country has to become a global economic super power. 

Participating in a panel discussion on the sidelines of Hindustan Times Leadership Summit on November 17, 2006, Yechury also urged the corporate sector to remove their false impressions about the Left’s viewpoint on various issues. He informed the gathering that India would be in an advantageous position demographically for the coming 20 to 30 years. Therefore the government must invest in the building up of social infrastructure, including health and education, apart from developing physical infrastructure. He also reminded the gathering that India, with not so world class infrastructure in education, produced far more trained personnel than all the European Union countries put together. This figure can be doubled if we put in place good educational infrastructure, felt Yechury. For this to happen he said the ongoing reform process must itself be reformed first. He asked the gathering to shift the focus of reforms from enhancing corporate profits to increasing overall well being of the society. He said the reforms process should pass through the lens of youth. Citing the recent UNDP report, Yechury asked the government to look at the nation’s population as an advantage and not as a liability. 

Referring to the investment required to build this social infrastructure, Yechury felt that it should be government-driven investment which has to be complemented by private investment as well. He reminded the gathering about the Chinese experience in attracting FDI. Taking on the critics who accuse that the CPI(M) is lagging behind in understanding contemporary situation in comparison to Communist Party of China, Yechury asked them to deal with micro-analysis about Chinese economy and the role played by the CPC. He also suggested reviewing the tax structure in order to mobilise internal resources. Referring to the soaring Sensex through which investors are reaping profits, he questioned the wisdom of not taxing those profits. 

Responding to a question from audience, Yechury asked them to remove the false impressions about the Left, particularly about CPI(M). He also reiterated the Party’s understanding about various issues related to labour and financial sector reforms. Referring to a feeling of the corporate sector that the reforms in labour laws would increase their profitability, Yechury asked them to come out from the limited spectrum of profitability and look for comprehensive growth opportunities. Responding to a question on labour laws flexibility in China, Yechury asked the government and corporate sector to come forward to perform their obligations before reforming the labour laws. He also referred to the fact that in China both employee and employer have to perform their contract obligations. Referring to those who are banking upon the Chinese model in Telecom sector, Yechury clarified that the major service providers in telecommunications in China are 100 per cent owned by government. China allowed 100 per cent FDI in manufacturing hardware in telecommunications. He asked the critics of CPI(M) to look at the factual position in China. He clarified that if the government of India has full control over services, it can invite 100 per cent FDI in manufacturing hardware. He also emphasised that CPI(M), either in Delhi or in Bengal is speaking in one voice of the reforms.

Taking on Arun Jaitely who expressed the opinion that coalition politics are a curse for reform process, Yechury felt that coalition politics is the reflection of social plurality of India. This is one of the aspects of maturing democracy in our country. The political leadership has to learn to live with it and work with it. Referring to Left support to the government, Yechury reiterated that the support is based on the CMP. The government has a free hand to implement whatever has been mentioned in the CMP. Only when it tries to move out of CMP then the issue of consultations and consensus arises. Responding to Jaitley’s criticism that the government is fearing to take harsh decisions which can increase growth rate, he reminded the fact that it is the political leadership that has to take economic decisions, hence it is a political economy. He debunked the effort to pose it as politics vs economy. 

Closing his remarks in the summit, Yechury called for reforming the reform process in order to achieve equitable economic growth, which in turn can lay foundations for India becoming a global economic super power. (INN)