25th July 2020

Musings.......

Present day Communism and Neoliberalism

Neo-liberalism is the idea associated with laissez-faire economic liberalism and free market capitalism. 

It includes policies of economic liberalisation including privatisation, deregulation, free trade, austerity and reductions in government spending so as to increase the role of the private sector in the economy and society. 

Neoliberalism was a huge shift from the post World War Keynesian consensus (1945-1980) which advocated a managed market economy- predominantly private sector, but with an active role for government intervention during recessions and depressions. The twin tools of Keynesian economics are fiscal policy and monetary policy which we know is still being followed in India. 

The term Neoliberalism became common usage after the Augusto Pinochet’s economic reforms in Chile in 1980s and later got global recognition after the passage of NAFTA (North American Free Trade Agreement) in 1994. 

In recent times Neoliberalism is associated with reducing state influence in the economy through privatisation and austerity, eliminating price controls, deregulating capital markets and lowering trade barriers. 

The economic policies of Margaret Thatcher in the UK and Ronald Reagan in the USA is based on neoliberalism.  

• As an ideology it denotes a concept of freedom associated with reducing state functions to those of a minimalist state. 
• It involves privatisation of the public sector, deregulation of private corporations, sharp decrease of government debt and reduction of spending on public works. 

Neoliberalism vrs Liberalism 

Liberalism is different from Neoliberalism as it does not stand for laissez- faire economic policy but instead calls for a strong state to bring about market reforms in every aspect of society. 

China 

China after the death of Mao Zedong embraced Neoliberalism as its policy, of course with centralised authoritarianism. The extent to which the Chinese Communist Party has moved from Communism and Marxism to incorporate neoliberal policies is for everyone to see. 

Hong Kong is a good example of China’s neoliberal policy. 

In India, the Narendra Modi led Right wing government came it power in 2014  with a commitment to implement neoliberal economic policies. 

The International Monetary Fund (IMF) and World Bank adopted neoliberal policies by 1980 and led to its popularity worldwide. 

It is in this backdrop that I wish to mention how much the Communist Party of India at least in Kerala have deviated from Communism and Marxist ideologies. They seem to have embraced neoliberalism with pleasure. 

We have all seen with amusement the number of Consultancy companies and multinational corporations gaining foothold in the state with the blessing of the present government. 

I wish to mention CPIM General Secretary Sitaram Yechuri who in his 2018 article “Crisis of Neo-Liberalism” gives a brilliant critique of Neoliberal policies. 

I quote “ Neoliberal policies lead to Crony Capitalism which is nothing but profit maximisation through the loot of public monies”.  

He further writes, 

“It is clear that no amount of reform within the capitalist system can permit capitalism to emerge from this crisis. A political alternative to capitalism is the only solution to end the vicious misery of the vast mass of the people. This would require the emergence of the political alternative, i.e., socialism as a powerful force based on the widespread struggles by the working class and the working people all across the world, i.e., by sharpened class struggles. In many countries like those in Latin America, these anti-imperialist, anti-neo-liberal protest movements had led to the emergence of elected anti-imperialist governments. These, however, are the targets today of imperialism seeking to weaken the resistance to its neo-liberal order.” 

What the Communist party says and what it implements when it comes to power in Kerala seems to have no relationship. 

Basically in the garb of Marxist Communism they are now following Capitalist Neo-liberalism !!! - which is now without doubt true of Kerala. 

The Communist Parties the world over are in a crisis. The ideology itself is proven impractical wherever they managed to form Governments and tried to implement its economic policies, like Latin American states. 

What is required is a balanced economic policy, a mixture of public and private enterprises working hand in hand for the betterment of the masses.  

It is with regret that we see the Communist parties also following the Right wing economic policy of crony capitalism and neoliberalism. 

So what difference is there between the Right wing BJP ruling the centre and the Left wing CPIM in ruling Kerala ? 

Both governments working with a centralised authoritarian leadership and following the same economic policies means ideology has gone for a ride !! Both governments are creating a legacy of duplicity. 

I am reiterating my stand that the Communist parties in India have lost their way and purpose. The Left and the Right wing are two sides of the same coin.  It is the Indian National Congress which truly represents the common mans cause. 

The Centre-left ideology of Congress with its Nehruvian Socialism is still relevant and is inevitable for India and for Democracy.  

Food for Thought.......

RC