The Chinese way

The latest edition of CPM mouthpiece People8217;s Democracy carries a series of articles tracking the economic reforms undertaken by China three decades ago.

The latest edition of CPM mouthpiece People8217;s Democracy carries a series of articles tracking the economic reforms undertaken by China three decades ago. The main article by Sitaram Yechury says China opened up its economy and thereby released the potential growth of productive forces even while firmly adhering to its four cardinal principles Marxism-Leninism and Mao Zedong Thought; the socialist road; people8217;s democratic dictatorship; and leadership of the Communist Party

8220;During the course of these three decades, China has achieved an unprecedented average growth rate of 9.8 per cent every year. Its gross domestic product which was about 52 billion in 1978 has now risen to 3.6 trillion, i.e., more than 70 times.8221; Further, it notes that the number of people under poverty reduced from over 250 million to 14 million today and China has become the fourth largest economy in the world, the third biggest player in international trade and attracts nearly a trillion dollars of foreign direct investment.

Another article chronicles the milestones in the reforms process right from the Chinese government8217;s decision in 1979 to sanction special economic zones SEZs 8212; 8220;embracing more flexible market policies, SEZs offers preferential terms for foreign investors vis-a-vis land use, taxes and foreign exchange management in order to encourage exports and raise revenue. The four economic zones stimulate economic growth to propel the country towards development, and most famously transformed Shenzhen from a fishing village into a manufacturing and shipping hub,8221; it says.

On opening of the Shenzhen and Shanghai stock Exchanges in 1990, it says 8220;the two establishments are considered the engines to drive China8217;s market economy. Previously, stock markets were reviled as a symbol of capitalism, so their arrival symbolises China8217;s opening up and weaning off the 8216;iron rice bowl8217;.8221;

UPA8217;s food failure

An article by Brinda Karat on food security argues for a change in the UPA8217;s food policy in the context of the Food and Agricultural Organisation8217;s recent report on global hunger. She points out that India ranks 66th out of 88 countries in the global hunger index. 8220;It is about time that the government reconsidered its faulty food policies. While it cannot be doubted that state governments have a most important role in ensuring good delivery systems and many state governments have failed to block the leakages, it is the basic framework of food policies which is crucial in the removal of hunger,8221; it says.

The article says for the first time in decades, India8217;s food stocks started going below the normal buffer from 2005 onwards. 8220;The gap was primarily due to the deliberate policy of cutting back on government procurement of wheat and encouraging procurement by big agribusiness, both foreign and Indian. The government failed to answer questions which were raised at the time. As is well known, it was wheat not rice which was the commodity which attracted speculative trade in global futures markets in the last three years,8221; it says. 8220;Was it just coincidence that the government of India decided to withdraw from the procurement market only for wheat? Thus, whereas rice procurement kept pace with the increased production, in the case of wheat procurement it declined even as production increased,8221; it says. However this year, perhaps because of the public outcry against expensive wheat imports in a pre-election year, the government went in for procurement of wheat reaching a record figure at around 22 million tones, double that of the buffer for October. The article asks the government to immediately restore food grain allocations to the states and put in place a universalised public distribution system.

Compiled by Manoj C.G.