The deliberations at the WTO’s ministerial conference at Cancun must have served as an eye opener for the developed nations as the continuance of huge subsidies to agriculture in these countries became the focal point of the debate. Further, there was an attempt by developed countries to push through serious “new issues” like investment, competition policy, government procurement and trade facilitation, in order to perpetuate their economic over the world under the WTO umbrella. The resistance mounted by developing nations at this conference was necessary. We have been very consistent in urging the Indian government to articulate the concerns of our people, regarding the inequitable provisions of the WTO. We have always felt that harmful provisions should be thwarted right at the negotiation stage. We have a realistic approach that recognises India’s need to increase its share in global trade and business, while remaining steadfast to its long-term goal of self-reliance. We should do our best to protect the industrial sector and make it technologically advanced. We need to have a correct approach to globalisation, a liberalised trade regime and related issues so that we can move in the right direction. The economic scenario of the century continues to be unsatisfactory. Last year, GDP growth was only 4.3 per cent. India’s socio-economic development cannot be brought about in the absence of radical changes in the rural areas. Agrarian reforms have to be undertaken all over the country in order to effect changes that are vitally needed. Against this background, the West Bengal government, despite various constraints and limitations, has been able to achieve a rate of growth of 7.1 per cent through the implementation of different projects and programmes. The abundance of natural resources and government initiatives has helped it to achieve strong agricultural growth. In 2001-2002, total foodgrains production in the state reached 16.5 million metric tonne against the total foodgrains requirement of 15.7 million metric tonne. West Bengal has thus achieved self-sufficiency in food. The state is making steady progress in the industrial sector as well. During the period from 1991 to 2002, 658 projects involving an investment of the order of Rs 22,100 crore were actually implemented. In 2002, West Bengal witnessed the implementation of 113 projects, involving an investment of the order of Rs 2,325 crore. Recently, the state government adopted a policy of Public-Private Partnership (PPP) for participation in infrastructure development projects. It seeks to ensure that a common methodology is followed by all state agencies proposing PPP for infrastructure development projects so that transparent and competitive facilities and services for the selection of private sector partners are evolved. The appropriate development of various infrastructure facilities and services is a stupendous task and requires huge investments. In the current situation, it is no longer possible for the state government to develop, upgrade and maintain infrastructure and provide all the civic amenities on its own. The private sector participation in infrastructure development and services has already successfully occurred in the housing sector and this model can be extended to other areas too. The state government also announced its export policy in July. It regards exports as a priority area. The policy also aims at providing exporters with the necessary infrastructure and appropriate support at the state level. West Bengal has made a quantum jump in the services and retail sector. In recent years, the city of Kolkata has gone through a qualitative transition. World class hotels, shopping centres and commercial establishments have made an impact on the quality of life in the city. The government of India is pursuing a policy of dismantling the public sector. While loss-making PSUs are being shut down without adequate effort for their revival, profit-making PSUs are being indiscriminately privatised to raise funds to meet budgetary deficits. The country is deviating from the goal of self-reliance. In contrast, we have embarked upon a pragmatic and measured exercise for restructuring our loss-making enterprises in the state. We have decided to close down enterprises that have no scope for revival. We intend to restructure those that can be revived and become self-reliant. We also seek private participation in those that require investments for their revival. We have designed a pilot project for restructuring some of our enterprises that have been making losses. Two of our enterprises are being closed down under this pilot project, after a careful assessment of their structural non-viability. Under the Early Retirement Scheme, we are offering both monetary compensation and social security benefits to employees. The businesses, financial liabilities and administration of four enterprises are being optimised to attain viability under government ownership. We have also sought private investments in the equity of a further ten enterprises and have agreed to bear the cost of restructuring their manpower and financial liabilities, in consultation with serious investors. The restructuring measures are likely to make these companies self-sufficient and end their dependence on financial support from the government. The Department for International Development of the British government is supporting this pilot project. PricewaterhouseCoopers is advising us on its implementation. West Bengal has political stability, human and material resources, strategic advantages and communal harmony. We always urge employers and workers to resolve all disputes and grievances in a peaceful atmosphere. Our call for harmonious industrial relations has received wide positive response. In this congenial milieu, a coordinated effort is necessary to accelerate the pace of industrial development and the state government will extend full support to investors for their projects in West Bengal. (The writer is chief minister, West Bengal. This piece is based on a talk he gave at the national council meeting of the CII in Kolkata)
