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February 17, 2008
Neo-Liberalism and Communalism

Irshad Mohammaed writes that perhapsneo-liberalism is a good way to distract from the impact of communal policies - and vice versa.

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The sweeping electoral victory of Mr Narendra Modi as third time chief minister of Gujarath points out some limitation as well as challenges of our democratic governance. The limitation is the changing role of opposition parties in our parliamentary democracy i.e. the incapability of right wing political parties to oppose a ruling alliance which eagerly demand for the extension of capitalism as common ideology. The challenges are the influence of Modi’s developmental perspective on the mainstream political parties ironically even among left parties.  

Right now no political parties in India dare to oppose the mode of development policies pursued by Modi perhaps they secretly admire him as a successful chief minister. The success of Modi lies in his lineage with both the national and international MNCs and his whole heated support to them to do anything upto their limit. In terms of contribution to national Gross Domestic Product (GDP) Gujarat is far ahead of other Indian states hence the central government support is Gujarat highly essential to carry over economic policies. Apart from that the roots of Modi’s development policy lies in the inflow of huge private capital to Gujarat pulled by MNCs, for instance reliance capital alone proposed more than Rs 10000 crore investment project in the state and also Gujarat is the only state in India which waived all legal barriers on labour flexibility and relaxation of all labour laws in SEZs. Thus it is rather reasonable for the MNCs to choose Gujarat as the prime destiny.  

Infact Mr Modi’s speaks two languages his language for corporate world is the most sophisticated business language where he seldom uses any rhetoric of communal perversions. On the contrary while he appears in public meeting he exposes the communal man in him. Infact the media played a well-built role in exposing the communal man in Modi, the recent sting operation by Thehelka is the best example. Interestingly Modi successfully triumphing over his communal role with his much hyped slogans of Development i.e. a Gujarat model neo-liberalism. The Gujrat model represents the changing phase of communal war and the adjustment policy. The mode of neo-liberalism in Gujarat proposes unparallel political support to overcome the social unrest which would thwart capitalist institutions in Gujarat. This alone is important for other Indian states; to be specific this is what the Governments of Andra Pradesh, Orissa, West Bengal, Hariyan, Maharashtra, Chathisgad etc etc wanted. These states are un-precedently attracting huge foreign and national capital. More than 110 special economic zones (SEZs) have been announced in Chathisgraha state itself. Tata steel and Mithal groups the two largest iron producers in the world have already mooted their huge investment plan in iron and bauxite mining areas in Orissa. In Kalinganagar industrial area of Orissa alone Tata Steel began building the country's third-biggest steel mill in a plot of the 5,000-hectare (13,000 acre) worth £3 billion (source:  August 2, 2006 The Guardian).  See the Table  

                              Table

    States Name of the company and the project Investment ($M)
    Chhattisgarh
    • Texas Power,  (power plant, sponge iron)
    • Vedanta (aluminium smelter)
    1207

    550

    Jharkhand
    • Tata Steel (steel plant).
    • Mittal Steel (steel plant)
    10109

    8696

    Orissa
    • Posco (steel plant).
    • Vedanta (alumina refinery expansion).
    • Vedanta (aluminium smelter).
    • Mittal Steel (steel plant)
    10870

    800

    2100

    9000

Source: August 2, 2006 The Guardian.  
 

The opposition of excluded people are on rise in these states, for instance in Orissa’s  Kalinga Nagar district incidents reveals the fact that compensatory employments offered to Adivaisis who have been evacuated for SEZ are inadequate – out of 87 families evicted for setting up steel plant, only five persons got jobs. In Neelachal Ispat Nigam Limited, only 53 persons out of 634 displaced families found employment. Out of the 430 families displaced to make way for Visa Steel, only 42 persons got jobs (www.achrweb.org/reports). Hence it’s rather imperative for these states governments to follow the modus operandi of Narendra Modi to suppress the public anger. The pogrom in Gujarat eventually helped the investment potential of the state which in a way being offered too much concession to the companies which invests in Gujarat.  

As far as Modi is concerned embracing neo-liberalism is the only way to get out of communal image at least in the corporate world. The corporate world plays a big role in our public sphere. Every high profile journalists and journals frequently quote Modi’s views on development and categorically exclude his sensitive statements on social issues including communalism. Apart from that only a few ‘fourth estate agencies’ express the economic and social inequality prevail in Gujarat. The social backwardness and state failure in providing public utilities hardly matter in mainstream debate. Instead the Chief Minister’s attempt to attract capital and his much studied speech at the national development council meeting in Delhi reveals the preferences which Gujarat government meant for. However, the basic concept of governance in Gujarat in a way cements a conducive and adaptive political environment for Indian capitalist class. There are many parallel incidents to prove it. From British colonial period to present day neo-colonial era, the Indian capitalist class never made any attempt exclude the people and governments who create social chaos, eg. Slum eviction in Delhi for Maruthy automobiles, Bhopal tragedy, Suret communal riot, Bombay riot etc.. this list is endless.  

The Gujarat experience is the latest attempt to reveal the fact that embracing neo-liberalism is a self-imposed chit to anybody who saw the seeds of social obliteration.

Posted by collective at February 17, 2008 05:12 PM
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