Globalization and the Indian Working Class Movement

1
Globalization and the Indian Working Class
Movement

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

2
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

3
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

4
Indias 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

5
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

6
Average Daily Earning of Workers in the Age Group
15 to 59 Years (1993-94 Prices), Rupees
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Growth rate of Average Daily Earning of Workers
in the Age Group 15 to 59 Years (1993-94 Prices)
between 1999-2000 and 2004-05
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of emoluments wages to gross value added in
organised manufacturing sector
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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

10
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

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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

12
Annual Rates of Growth
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Area, Production and Yield of Food Grain,
1996-97 to 2006-07
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Table 4 ANNUAL RATE OF GROWTH OF TOTAL
EMPLOYMENT ()
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Net availability of Food Grains, grams per person
per day
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Imports of Agricultural Products into India
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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