Obama’s potent symbolism

ET Editorial

The fact of Democrat Barack Obama being the clear favourite in the US presidential race has been the source of a range of progressive expectations. But beyond the immense symbolic import of the moment, it is debatable whether an Obama win will radically alter US paradigms, more so abroad than at home.

That said, even the purely symbolic significance of the event is truly momentous. In a country where racial segregation is still within living memory, and deprivation for ethnic minorities still a reality, having the first black President would still send out a clear signal of change within the US.

Indeed, the Democratic Party, on the face of it, seemed to represent sweeping change in this election, what with Obama’s intense fight for the nomination being with the first-ever female candidate, Hilary Clinton.

There will certainly be a welcome move away from the George Bush legacy, with many Americans seeing it has having endangered their constitutional rights and battering the image and prestige of the US abroad.

Obama has been able to project a transformative aura, giving rise to hopes of a break with the neocon tradition of trampling over international institutions and increasing global strife.

However, even as an Obama presidency might rethink some foreign policy issues like Iraq and relations with Latin American nations, there is unlikely to be any structural readjustment in Washington’s policies. India can hardly get a President as keen as George Bush was on cementing strategic partnerships.

And there is hardly any variation between the Democrat and Republican positions on critical, and deeply divisive, issues like the larger West Asian policy. Indeed, Obama has had to singularly disavow any possibility of change here.

It is also indicative of the more disturbing aspects of the public consensus in the US that Obama had to repeatedly insist that he was, indeed, not a Muslim. Breaking away from the lobbyism that so deeply shapes US politics, as well as from the hold of the military-industrial complex, would need much more than Democratic symbolism.

Courtesy: The Economic Times

Does globalisation impede labour mobility?

Pratyush Chandra

ET Debate

Anti-immigration laws are enforced not to stop but control new settlements and to legitimise the use-and-throw logic that characterises neo-liberalism. This increases labour vulnerability economically and politically — by differentially including the immigrants and ghettoising the local consciousness against them.

Throughout the world — in Maharashtra, in Assam, in the US, everywhere — the same ghettoised psyche comes coupled with the trans-politicisation of economy, which has relegated people to passive receptors of global mobility of capital.

Specific identitarian conflicts today are various realisations of the competitive ethic that underlies a market-oriented political economy. With the entrenching of this ethic in every corner of the society under globalisation, such conflicts are bound to multiply.

What the market does essentially is that it perpetuates fragmentation and individuation, thus posing every division in a horizontal competition. Even those conflicting interests, which could be resolved only by structural transformation, are preserved through their metamorphoses into competing groups and lobbies.

Arguably the greatest Indian philosopher, Muhammad Iqbal understood this when he said, “Fanaticism is nothing but the principle of individuation working in the case of group”. In other words, regional/national fanaticism that defines anti-immigration today is the product of individuation that competition necessarily poses.

Under neo-liberal globalisation, I agree, the “global village” has become a virtual reality. However, in this village citizens are reduced to “much as potatoes in a sack form a sack of potatoes”. They are thrown into a large “stagnant swamp”, where they desperately try to save themselves and stand up in whatever way they can — even if at the expense of others.

So anti-immigrant upsurge and its legitimacy are nothing but a vent to this desperation. It is a commodified deformation, in the socio-political market, of structural conflicts.

Hence, the question is not whether globalisation impedes labour mobility, but how through various means it impedes labour’s ability to challenge capital.

Courtesy: The Economic Times

Global Economic Crisis-II

Deepankar Basu

Link to “Global Economic Crisis-I”

Short-term: The Sequence of Events

Even though the credit crisis attained dangerous proportions only in mid-September, it had already announced itself in the early part of the year with the collapse of Bear Stearns, one of the five famed investment banks that defined Wall Street; today none of those five investment banks – Bear Stearns, Goldman Sachs, Lehmann Brothers, Merril Lynch and Morgan Stanley – exist, an indication of the depth of the crisis. Faced with a fierce run on it’s dwindling reserves and it’s stock plummeting, Bears Stearns was forced to sell itself off to J P Morgan Chase (one of the largest commercial banks in the US) on March 16, 2008. The next three months could be best described in terms that the police often use in India: tense but under control. On July 01, the next piece of bad news emerged and shattered the uneasy calm: Country Wide Financials, the largest mortgage seller in the US, collapsed and was acquired by Bank of America (one of the largest commercial banks in the US). Following closely on the heels of this event, IndyMac bank failed – the second largest bank failure in US history – and was taken over by the Federal Deposit Insurance Corporation (FDIC), one of the institutions responsible for monitoring the health of the banking system in the US. IndyMac was, unsurprisingly perhaps, part of the Country Wide financial family.

Things started speeding up in September. On September 08, Freddie Mac and Fannie Mae, the two government supported enterprises (GSE) operating in the mortgage market was nationalized, with assets of the two entities totalling to more than $ 5 trillion. On September 15 another of the five famed investment banks, Lehmann Brothers, filed for bankruptcy; Lehmann’s assets were a little over $ 600 billion and this made it’s bankruptcy filing the largest in US history. Next day, the Fed stepped in with a $ 85 billion loan to prevent American International Group (AIG), the largest insurance firm in the US from going under. These two events, Lehmann’s bankruptcy filing and AIG’s rescue, sent shock waves through the world financial system. The result was a rapid erosion of faith in the financial system leading to a veritable credit freeze: financial institutions stopped lending, to other financial institutions, to businesses and to consumers.

The next thirty six hours, from the morning of September 17 to the evening of September 18, accelerated the credit crisis to extremely dangerous proportions and convinced the US Treasury and the Federal Reserve that government intervention of unheard magnitudes (at least since the Great Depression) would be necessary to prevent total financial collapse. Ben Bernanke, the chairman of the Federal Reserve (the US Central Bank), was famously reported as saying, at one point during this 36 hours, that if the government did not save the (financial) markets now there might not be any financial markets in the future. So, what happened during those crucial 36 hours?

The crucial 36 hours

The first indication of a severe stress in the financial system was a shooting up of credit default swap (CDS) rates, especially on Morgan Stanley and Goldman Sachs (two of the famed five Wall Street investment banks) debt, during the early hours of September 17. Credit default swaps are insurance contracts that can protect bondholders against the possibility of default. For example if an investor has bought bonds worth $ 1 million issued by firm A, then the investor can also buy CDS – typically issued by financial institutions like large commercial banks, investment banks or insurance companies – to protect herself against a possible loss resulting from firm A defaulting on it’s bonds; the premium that the investor pays for the CDS is called the “rate” or “spread” and it is typically around 2% of the amount insured (the “notional value”). So, in the case of this example, the investor would pay $ 20,000 to buy CDS and if firm A were to go under, then the “counterparty” to the CDS contract (i.e., the financial institution that issued the CDS to the investor) would step in to pay the investor $ 1 million and the interest on that amount.

CDS rates (i.e., the premiums that are paid on the insurance contracts) are, thus, an indication of the market’s belief about the possibility of default of some institutions; CDS rates on bonds issued by firms are typically low when the market thinks the probability of default of those firms are low and high when the market thinks the probability of default are high. Thus, on the morning of September 17, when CDS rates went through the roof, this provided evidence of severe loss of faith in the financial system.

When investors lose faith in the financial instruments issued by private parties, they turn back to those issued by the government and that is what happened when CDS rates multiplied by close to a factor of five. Investors let go of private financial instruments like hot bricks and rushed into US government securities, a phenomenon often described as “flight to safety”. The US government, i.e., the US Treasury department, issues three primary kinds of securities: T-bills, T-notes and T-bonds (where the “T” stands for Treasury), where bills mature in less than a year, notes mature between one and ten years and bonds are of longer maturities than a decade. When investors lost faith in the private financial system, they rushed in to US T-bills, the short-run heavily-traded ultra-safe US government securities. This huge rush into T-bills pushed up the price of T-bills and drove the yield (i.e., interest rate) on T-bills down. At one point in time, during this 36 hour period, the yield on T-bills was pushed down all the way to zero (the lowest it can ever go to) implying that investors were willing to hold T-bills even though the nominal return was zero and real returns were negative (because the inflation rate was positive).

As private investors were madly rushing into the safety of US T-bills, another important event was unfolding in the mutual funds market. Money market mutual funds (MMMF) are financial institutions that have become popular over the last three decades, especially in the US. They typically work as follows: investors put their money in MMMF’s by purchasing shares in the MMMF’s stock; thus the MMMF becomes a mechanism for pooling huge amounts of money and then using those large sums for investing in a very diversified portfolio of financial assets, thereby making the investments extremely safe. Thus MMMF’s were, till September 17, thought to be as safe as a deposit account in a commercial bank, and the added advantage was that the money invested in MMMF shares would give a positive rate of return as opposed to a deposit account which is usually non-interest bearing. On September 17, one of the oldest and largest MMMF’s, Reserve Primary Fund, “broke the buck”, i.e., it made losses on it’s investments such that it could not guarantee a positive return to it’s shareholders. Every dollar invested in Reserve Primary was now, by it’s own admission, worth less than a dollar. This was an unheard of event and as news of Reserve Primary Fund’s losses spread, investors started pulling money out of MMMFs.

This had a very negative consequence for the real economy because of the serious involvement of MMMFs in the commercial paper (CP) market. Businesses typically need to constantly borrow short-term funds to keep their operations going; these borrowed funds go towards funding payroll, paying suppliers, maintaining inventory, etc. Firms, at least the big ones, usually borrow short-term funds in the US by issuing commercial paper (which is essentially a bond with a short maturity of about a week or a month). Who buys commercial papers? The most active institutional investors in the CP market are the MMMFs; some of the largest chunks of commercial papers are bought by the MMMFs. So when the MMMFs faced an increasing spate of withdrawal, in the wake of Reserve Primary Fund’s breaking the buck, they stopped buying commercial paper. This, essentially, meant that the CP market ground to a halt. Thus businesses were no longer able to borrow the short-term funds that they need to keep operating. The economy, by all means, shut down.

Adding to and going hand-in-hand with these processes were the growing problems in the interbank (lending) market. Commercial banks typically lend and borrow banking system reserves (roughly the sum of currency in the banks’ vaults and the amount they hold in their account with the Central Bank) among themselves for very short periods, usually overnight periods. The interbank lending market that is most closely watched is the London interbank market and the rate at which loans are made in this market is the London Inter Bank Offered Rate (LIBOR). The most important characteristic of loans in the interbank market is that they are unsecured, i.e., they are not backed by collateral. Thus, a bank can get a loan in the interbank market only if other banks consider it financially sound; thus when the LIBOR jumps up suddenly it provides evidence that the largest and the best banks in the world have lost faith on each other. On September 17, the LIBOR shot up giving indication of increasing strain in the interbank market.

It was these sets of events – CDS rates shooting up, closing down of the CP market, increasing strain in the interbank market – that spooked the US administration and convinced them of the necessity of the most extensive government intervention in the financial markets since the Great Depression. These crucial sets of events were precipitated by the string of big financial failures that the US economy had witnessed over the first two weeks of September: the failure of Fannie and Freddie, the bankruptcy of Lehmann and the near-collapse of AIG. It was these failures that led to a rapid loss of faith in the financial system and heralded a full-blown credit crisis. And why did Fannie and Freddie and Lehmann and AIG fail? All these financial institutions failed because at crucial points in time they could no longer raise money from the market to finance their assets, i.e., they could not borrow money or roll over their short-term debt; financing, for these institutions, had dried up. And why did financing dry up for these big and reputed financial institutions? Because each of these, in their own ways, were exposed to the subprime mortgage market and took huge losses when the subprime mortgage market started unravelling. As news of these failures spread, investors, fearing losses, became increasingly unwilling to lend money to these institutions.

(To be continued.)

Capitalism Hits the Fan: A Marxian View

Capitalism Hits the Fan: A Marxian View from UVC-TV 19 on Vimeo.

Lecture by Professor Rick Wolff, Department of Economics at the University of Massachusetts – Amherst on October 7, 2008.

Global Economic Crisis-I

Deepankar Basu

The global economic crisis currently underway is, by all accounts, the deepest economic crisis of world capitalism since the Great Depression. It is necessary for the international working class to understand various aspects of this crisis: how it developed, who were the players involved, what were the instruments used during the build-up and what are it’s consequences for the working people of the world. This understanding is necessary to formulate a socialist, i.e., working class, response to these earth shaking events. In a series of posts here on Radical Notes, I will share my understanding of the on-going crisis as part of the larger collective attempt to come to grips with the current conjuncture from a socialist perspective, to understand both the problems and the possibilities that it opens up.

The Big Story

The current crisis can possibly be fruitfully understood if measured against different time scales: the short-term, i.e., in terms of days and weeks; the medium-term, i.e., in terms of months and years; and the long-term, i.e., in terms of decades. This analytical compartmentalization into three different time periods is useful because it demonstrates how long-term trends silently but inexorably created the conditions for the medium-term problem to explode into the short-term problem that has buffeted the economy since mid-September, 2008.

In the short-term, the current financial meltdown is a severe credit crisis, a situation whereby financial institutions have become unwilling or unable to lend and borrow among themselves thereby freezing the flow of credit in the entire economic system; this credit freeze is largely fuelled by a serious loss of faith in financial institutions and in the financial system as such and came to the fore most forcefully in the middle of September, 2008. It is also possible that the credit freeze, and the underlying loss of faith, might explode into a full-blown banking crisis: banking panic leading to run on even healthy and solvent banks.

In the medium-term, the crisis is the unravelling of a stupendously leveraged speculative bubble on real estate that built itself up for about seven years from the beginning of this decade (and century); this speculative bubble was mediated by fancy financial instruments fashioned by Wall Street, running all the way from sub-prime mortgages, asset backed securities (ABS) and mortgage backed securities (MBS), collateralized debt obligations (CDO) to credit default swaps (CDS); this speculative bubble led up to and culminated, when it finally burst in the middle of 2007, in the credit crisis that the US, and gradually the global, economy finds itself in.

From a long-term perspective the present crisis is, of course, more than just about Wall Street and finance and banking; it is a full-blown crisis of the neoliberal turn in capitalism inaugurated the 1970s. Neoliberalism (or the neoliberal counterrevolution) was a response to the structural crisis of capitalism that emerged in the late 1960s. It was a response from the point of view of the upper fraction of the capitalist class, a fraction especially dominated by financial interests. The neoliberal counterrevolution ushered in a capitalism firmly under the sway of finance capital; the neoliberal policy turn was geared towards breaking the power of labour vis-a-vis capital that had gradually built up during the two decades after World War II. The result was stagnant real wages, slow but growing productivity, and hence growing profit incomes especially of the financial sector, increasing financialization and a deregulated economy for finance to operate in.

Stagnant wages created the demand for debt from a working class used to growing consumption spending; huge profit incomes and the shredding of all regulation on finance created the supply. The result was a growing role of debt in the lives of the working class which, over time, led to a huge debt overhang on the entire economy. As the ratio of outstanding debt to income rose, with stagnant incomes for the majority, the financial fragility of the entire system increased; and it is this systemically fragile financial architecture that finally cracked under the weight of the bursting housing bubble. Thus, the long-term build-up of debt in the US economy resulting from the neoliberal counterrevolution, which increased the financial fragility of the system, created the conditions in which the bursting of various asset price bubbles could lead to a severe credit crisis and loss of faith in the entire financial system.

Impact on the Real Economy

Real GDP figures released by the US Bureau of Economic Analysis (BEA) on October 30 indicated that the US economy was in the midst of a slowdown even before the financial storm hit the world economy in the middle of September. Real GDP in the US contracted at an annual rate of 0.3 percent for the third quarter (i.e., for the months of July, August and September), led by a sharp fall in consumer spending. The financial storm, comprising a severe credit crisis and even a possible banking crisis, will only deepen the slowdown and might even push the US and the rest of the world into a prolonged and painful recession, possibly even a decade long L-shaped recession like the one that Japan witnessed during the lost decade of the 1990s. In such a scenario, fixing the financial mess, dealing with the credit freeze, averting a possible run on the commercial banking system and restoring confidence in the financial system will not be enough to prevent a plunge into a deep, prolonged and painful recession; addressing the credit crisis is necessary but not sufficient to deal with the grave crisis in the real sector. An aggressive fiscal intervention by the US government and other governments around the world, in terms of direct expenditure on goods and services, will be necessary to prevent the slide into a prolonged recession. It is in the interests of the working class to push for such intervention even as it works towards re-building it’s political, social and economic institutions.

(To be continued.)

Some Comments on Partha Chatterjee’s theoretical framework

Political Economy of Contemporary India

Dipankar Basu and Debarshi Das

Sifting through the divergent viewpoints thrown up by attempts to make sense of the recent political history of West Bengal, one is led to the conclusion that the tumultuous events have taken many, if not most, by surprise. With the benefit of hindsight one can probably say this: a combination of an insensitive state power, an arrogant ruling party, lapping-it-up corporate interests, and cheerleaders-of-corporate-sector-doubling-up-as-media orchestrated a veritable assault – a perfect storm. Yet the peasantry, initially without the guiding hand of a political party – indeed at times against the writ of the party – fought on. Through this episode Indian political economy seems to have stumbled upon the peasantry while it was looking for a short-cut to economic growth through SEZs.

At the level of political practice this serendipity demonstrates lack of an organic link between the representatives of people and those they claim to represent. The Trinamul Congress, whose manoeuvrings range from rightist alliances at worst to unprincipled populism at best, was slow to react; but it learnt the ropes eventually. A nagging doubt remains though, as to whether it would not, at the end of the day, appropriate the movement and sell it off to the highest bidder. The charge is of course more serious against the communist parties. If confusion of politics was not bad enough, the largest party of the state failed to gauge the pulse of the people whose land it was taking. The Congress Party has perhaps been the most rudderless of the lot – veering towards resistance at one moment, getting pulled back by the central leadership at the very next.

At the level of theorisation too, things are in a flux. A case in point is noted political scientist Partha Chatterjee’s article in Economic and Political Weekly[1], which tries to present a novel reading of contemporary Indian reality and a new framework to comprehend it with. We shall present his position briefly and then examine it critically in our own attempt to throw some light on contemporary Indian reality.

Partha Chatterjee’s Analysis

Partha Chatterjee (PC henceforth), by his own admission, used to perceive the Indian peasantry as being endowed with a change-resisting character. External agencies such as the state or market forces were sought to be barricaded away, often successfully. But that has changed over the last twenty five years. Liberalisation of the economy, it’s incorporation into networks of the global flow of goods, services and capital, and more recently events like Singur, Nandigram, Kalinganagar, etc. have compelled PC, and Kalyan Sanyal, whose book he often refers to, to reconsider such a position.

Reconsideration of the earlier position leads him to discover that the state was not that external to rural society after all; that the rural economy has come fully under the sway of capital, and that the rural poor do leave villages for cities due to social, and economic compulsions [2]. These new trends, according to PC, have emerged and consolidated themselves over the last three decades. Another concomitant and noteworthy development is that market forces seem to have gained phenomenal power. The balance of state power between corporate capital and the landed elite has decidedly tilted in favour of the former. The managerial-bureaucratic class, i.e, the urban middle class, has also aligned itself with the interests of big capital. Straddling all these changes and in a sense providing an overarching theme of current economic reality in India is the process of primitive accumulation of capital.

Sanyal however avers, and PC concurs, that the primitive accumulation of capital that is underway in India today is very different from the classical variety of the same process. One of the major differences, according to PC, is that the dispossessed, separated from the means of production, can no longer find gainful employment in industry due to limitations of present day capital-intensive technology [3]. This is bad news for the ruling dispensation as social unrest may break out. Old tactics of armed repression is ruled out, because the globally accepted norm is to provide succor to the victims of primitive accumulation and not shoot them down. Compulsions of electoral democracy, which demands that even voters bereft of livelihood be heard, is an additional constraint. Thus, caught between the pressures of the global discourse on development and the demands of electoral democracy, the State adopts the role of transferring resources from the accumulating economy of corporate capital to the dispossessed masses, thereby reversing the effects of primitive accumulation.

We are therefore left with a curious situation. Corporate capital is dispossessing millions through primitive accumulation, but the dispossessed are neither getting absorbed into industry nor getting socially transformed, as they were supposed to, through proletarianisation. This floating mass of labour, this enormous but shifting population of potential workers have instead become a constituent of what PC calls “political society”. Owners of small capital – PC prefers the term non-corporate capital – along with small and marginal peasants, artisans, and small producers are important constituents of political society.

But political society, according to PC, is different from civil society; corporate capital hegemonises the urban middle class which forms civil society. Its support for pro-capital policies is unstinting. Demand for civil and democratic rights define its political agenda. Political society, on the other hand, is hardly a constitutionally valid entity. Its constituents do not enjoy the rights due to citizens; hence they do not qualify for membership of civil society. The economic precariousness of political society, accentuated by primitive accumulation, forces it to use various ploys to negotiate with the State. For the State, on the other hand, electoral compulsions of representative democracy is a binding constraint. Thus the State often looks the other way when negotiations with political society violates established civil society rules (urban squatters, and street vendors are a case in point, as PC mentions). But in the agrarian economy the degree of political consolidation is lower; therefore dependence on the hand-outs of the State is more pronounced. This does not however imply, PC mentions, that they are incapable of rallying on emotive issues and thereby nullifying the government’s machinations to divide and break. It is in the dynamic interaction between the civil and political society – which often coincide with corporate and non-corporate capital for PC – and in the success of the State in holding the two together through measures of “governmentality” that PC identifies the fate of the present political regime.

Some Comments

There are many points which are commendable about the article: acute observations, theoretical insights, incisive analysis and a crisp clear prose. For instance, some of the important observations worth highlighting and thinking about are: landed elite losing ground vis-à-vis the bourgeoisie, the breath-taking ease with which the urban middle class traded Nehruvian consensus for the Washington consensus, the accompanying depoliticization, and the rising friction between this class and the poor etc. These observations underline the sharp analytical prowess of one of the foremost social scientists of the country. But there are surprises and disappointments too and to these we now turn.

The biggest problem with PC’s analysis, we feel, is the questionable theoretical framework that he works in, a framework that he has borrowed from Kalyan Sanyal (KS henceforth). KS starts his analysis by pointing out that what is going on in contemporary India can be fruitfully understood as the primary (or primitive) accumulation of capital, in the sense in which Marx used that term in Volume 1 of Capital. We fully agree with him here; in fact one of us had argued along those lines some time ago [4]. The defining feature of the process of primary capital accumulation – forcible separation of primary producers from the means of production – is difficult to miss in developments in contemporary India. KS notes that all previous attempts at theorizing primary capital accumulation have been embedded in what he calls a narrative of transition. Thus, primary capital accumulation has always been seen, according to KS, as marking a transition, a transition from one mode of production to another, either a transition from feudalism to capitalism, or “from pre-capitalist backwardness to socialist modernity.” But “under present conditions of postcolonial development within a globalised economy, the narrative of transition is no longer valid”; that is “although capitalist growth in a postcolonial society such as India is inevitably accompanied by the primitive accumulation of capital, the social changes that are brought about cannot be understood as a transition.” And why is that so? This is because it is no longer acceptable, or so KS believes, that people dispossessed and displaced due to primitive accumulation should be left with no means of subsistence. And what makes the destitution and poverty of the people displaced by primary accumulation unacceptable? The current international context marked by the dominance of the discourse of development and human rights.

Alongside the process of primary accumulation, therefore, KS discovers a parallel and related process: intervention of the State to reverse the effects of primitive accumulation. Government agencies, in other words, step in to create conditions for ensuring the “basic means of livelihood” to those who have been dispossessed and displaced by the process of primary accumulation of capital. Thus there is, according to KS, two processes going on in parallel, “primitive accumulation” and a “process of the reversal of the effects of primitive accumulation.” It is the conjunction of these two parallel processes, according to KS, that invalidates the narrative of transition associated with the primary accumulation of capital.

The implication of this assertion, the assertion that the primary accumulation of capital can no longer be understood in terms of a narrative of transition, is stupendous. It means that current political economic processes underway in India will continue indefinitely; historical change, for KS, seems to have been stalled. Since current day reality cannot be understood as a process of transition, this would then seem to imply that Indian reality will remain unchanged in its essentials for a long time to come, if not forever. In more concrete terms, this will mean the presence of the huge mass of working people parked in the no man’s land between agriculture and industry for an indefinite amount of time, a population that has been simultaneously dispossessed by the primary accumulation of capital and provided an alternative “means of livelihood” by the postcolonial State.

As a description of contemporary Indian reality, this account probably has some intuitive appeal. After all it can hardly be denied that one of the most important characteristics of contemporary India is the huge population of what economists have called “surplus labour”: the huge population of working people who find stable, well-paying employment neither in agriculture nor in industry nor in services. Though KS’s analysis apparently attempts to understand this phenomenon of “surplus labour”, by all accounts the defining characteristic of contemporary Indian reality, it is, we believe, seriously flawed.

First: the Indian economy has been characterized by surplus labour for the past two centuries, it is not a new phenomenon; the primitive accumulation of capital was initiated under the long shadow of colonialism and ever since that time dispossession has been going on without commensurate absorption of the displaced labour in industry. In that sense the current scenario has a historical dimension that KS, and thereby PC, completely misses when he (a) locates the beginnings of this process somewhere in the recent past, and (b) identifies the supposed ameliorative interventions of the State in reversing the effects of primary accumulation in the current conjuncture as one of the crucial factors to reckon with.

To be sure, PC, identifies three factors that are different today from the time when Western Europe underwent primary accumulation of capital. First, there were opportunities for international migration of the surplus labour that are totally absent today; second, the technology of the early industrial period was far less capital intensive than current technology and hence had the capacity to absorb far more of the surplus agricultural labour than is possible today; third, the State did not intervene in Western Europe to reverse the effects of primary accumulation as it is doing today in India. Though the first two factors were present in Western Europe and contributed to mitigating the problem of surplus labour, they are not necessary. Japan and the Soviet Union had taken care of primary accumulation, and had industrialized, without having to export surplus labour to its colonies and using much more capital intensive technology that was used during the industrial revolution in Western Europe; South Korea had taken care of primary capital accumulation, and had industrialized, with much more capital intensive technology than Britain had used during its own industrialization and without the assistance of international outmigration of its surplus labour. Therefore, the absence of opportunities for international migration and the use of technologies with relatively higher capital intensity cannot explain the absence of industrialization and the continued existence of surplus labour in India. The answer lies somewhere else, in the domain of capital accumulation. In a dynamic context, the rate of absorption of labour, i.e., the growth rate of the demand for labour, depends on the rate of accumulation of industrial capital. Neither the lack of international migration, nor the increasing capital intensity of technology nor the ameliorative interventions of the State can explain the burgeoning ranks of surplus labour; it is the absence of a sufficiently rapid rate of growth of industrial capital in India that is responsible for the continued existence of surplus labour. This crucial factors is totally missing in KS’s and PC’s analysis

The primacy of capital accumulation becomes obvious once we look back at history and realize that dispossession without proletarianization is not a novel phenomenon. One just needs to recall that one of the principal issues raised by the Mode of Production Debate [5] was why India did not make the transition to capitalism despite being sucked into the global network of trade and commerce with the onset of colonialism. The answer, of course, is now well known. As colonial incursion willfully destroyed the socio-economic fabric of the country, peasants were evicted and deindustrialization, facilitated by the trade policy of the colonial State, exacerbated the pressure on land. But the economic surplus which was being generated in the process was largely siphoned off to the metropolis. Thus, in the colony, processes leading up to the formation of productive capital were conspicuous by their absence. Petty producers who were getting alienated from the means of production were joining the ranks of paupers, not those of the working class. Without a strong capital accumulation process, the excess labour could not be absorbed into profitable industrial activities; that is the historical basis of “surplus labour” in the Indian economy. One may refer to the mode of production in India using any term one wishes, as pre-capitalist, or semi-feudal, or semi-capitalist, or postcolonial, or something else, but the main point remains beyond dispute: absence of the growth of industrial capital and a concomitant growth of the industrial working class.

Somewhat related to this point about “dispossession without proletarianization” is the implicit assumption in PC’s analysis that peasant society had been stuck in splendid isolation till about the beginning of the era of liberalization; this is one of our major points of criticism of PC’s analysis that we wish our readers to ponder. The trend of viewing the peasantry in this manner, especially the middle peasants who are not very much dependent on the labour market for selling or buying labour, owes a great deal to the work of the Russian economist Chayanov [6]. But the putative efficiency of the peasantry sits oddly with the massive and recurrent famines India underwent as colonial rule tethered the country to global commodity markets. This position about the supposed insularity of the peasantry seems even more unconvincing when one recalls the state’s successful promotion of Green Revolution in north and northwest India starting in the mid-sixties. Nor does it seem consistent with Operation Barga in West Bengal, another orchestration of political parties and the state machinery, which was leaving a deep impact on rural Bengal right at the time when Subaltern Studies was undergoing its genesis.

To move on to another major problem in PC’s theoretical framework recall that one of the crucial links in PC’s chain of argument relates to the supposed interventions of the State in reversing the effects of primary accumulation; this, to our mind, is the weakest link in the whole chain of arguments that PC offers in his paper; there are both theoretical and empirical problems with this argument.

First:

PC, and many other scholars (including KS), we feel, seem to have misunderstood the notion of primary accumulation of capital. Primary accumulation of capital, as understood by Marx (in Volume 1 of Capital), is the forced separation of producers from the means of production. Whether this “free”, evicted (peasant) labour gets absorbed in industrial activity is a different question, it is not part of the process of primary accumulation. It depends on the pace of capital accumulation, as we have already pointed out. So, the assertion – implicit in PC’s analysis – that the “classical” pattern of primary accumulation led to industrial development is false. Primary accumulation led to the creation of a class of “free” labourers, period. What led to the industrial revolution and the rapid growth in the demand for labour and the strengthening of capitalism and thereby the absorption of surplus labour, was the rapid pace of capital accumulation and technical progress. Thus, distinguishing between the “classical” pattern of primary accumulation in Europe and the present pattern of primary accumulation in India does not seem be analytically useful.

Second:

PC’s whole analysis seems to be curiously oblivious of the neoliberal turn in the global economy, a fact that is amply reflected in policy changes in India too; we feel this is one of the biggest lacunae in PC’s analytical framework. The fact that radical scholars and activists have spent so much time and effort studying neoliberalism, understanding its genesis, structure and functioning must surely be known to a scholar of the stature of PC; the fact that he has ignored this vast scholarship, experience and political practice and has instead advanced the thesis of ameliorative state intervention is very significant and points towards a deep problem in his theoretical framework. After all, one of the defining characteristics of the State under neoliberalism is its gradual retreat from the provision of public goods and social services, especially those services that might benefit the poor and dispossessed. In the face of this well-known and well-documented fact, when PC asserts that the State has stepped in to do exactly the opposite, i.e., reverse the deleterious consequences of primary accumulation, one is more than surprised, one is appalled. Let us present some empirical evidence to dispel the illusion, if any, of the lately humane State, responsive to the needs of the poor, bowing before the pressure of the international discourse on poverty alleviation.

a. Distribution of subsidised food through ration shops is an old institution – not a device to make the pain of the poor bearable in the era of neoliberalism. During the last couple of decades, the decades of neoliberalism, the universal public distribution system (PDS) has been systematically dismantled; that is the hallmark of post-liberalisation India, not the strengthening of the PDS and increasing its reach. Priority sector lending, another device built by the Nehruvian state to help farming and related activities, is in a sorry state. In the last fifteen year 4,750 rural bank branches have been closed down: at the rate of one rural bank branch each day. During the year 2006 one branch was shutting down every six hours! [7]

b. The tale of microcredit institutions, an example of what PC considers the States intervention to reverse the effects of primitive accumulation, doing the job of offering palliatives has been questioned by many. The interest rates charged by micro credit institutions are often almost usurious. The motivation to harvest the middle ground between low interest rates of public sector banks (which are vanishing) and the exorbitantly high ones of village mahajans seems to be behind the coming together of corporate banks and NGOs in the micro credit venture. This serves two purposes. One, banks earn as much as 25% return, much higher than the organised sector return,[8] with an excellent repayment rate; a lucrative arbitrage channel thus opens up. Two, this credit model is then peddled as people-oriented, and opposed to a bureaucratic public sector model. This is then used to justify withdrawal of the state from its basic responsibilities towards socially and economically vulnerable sections of the population. That someone as perceptive as PC has fallen for the micro credit argument signals that the powers that be have been largely successful.

c. Contrary to the claim of the article, “social sector expenditure” has nosedived over the past few years. In 1996, rural development expenditure as a proportion of net domestic product was 2.6%. During the pre-liberalisation seventh plan (1985 to 1989) the figure was much higher at 4% [9]. From the mid 1980s to 2000-01 public development expenditure as a percentage of the GDP fell from 16% to 6%. The effects have of course been disastrous, especially in the farming sector where strong crowding-in effects of public investment is a well known fact. The growth rate of all crops fell from 3.8% in the 1980s to 1.8% in the 1990s, while total agricultural investment expenditure as percentage of the GDP fell from 1.6% to 1.3% [10]. Using a constant calorie norm of 2200 calorie per day, head count poverty ratio has risen from 56.4% to 69.5% between 1973-74 and 2004-05.

d. Guaranteed public work for the rural poor was attempted to be scuttled from the very top, i.e., by the officials of the State at the very highest levels. Social democratic proclivities of official communist parties, rather than the tactical calculations of the bourgeoisie, saw it through to some extent. To this day the corporate media loses no opportunity in tarnishing the National Rural Employment Guarantee Act [10] as useless, wasteful and distortionary.

In short, any substantial evidence of the State taking steps to make primitive accumulation bearable, to reverse its effects by providing alternative means of livelihood to the dispossessed population, seems to be totally missing. PC seems to be oblivious of the fact that the phase of neoliberalism is characterised precisely by the opposite: withdrawal of the state from the economy and social sectors, not its intervention in favour of the dispossessed.

Third:

The analytical handle of political society did not seem to have served any great purpose. What was meant by this term was essentially what has been called the unorganised sector, the sector of the economy comprising of petty agricultural producers, tenants, village artisans, street vendors, small scale manufacturers, etc. Admittedly they are less equal than the rest but that is a derivative of their economic position in the country rather than being a defining feature of its own. Since this “unorganized” sector employs nearly 92% of the Indian work force, a close scrutiny of its structure and dynamics is long overdue. But did coining a new term serve any goal? Not one that we can see. In the bargain PC, of course, seems to have missed two crucial points.

a. Labour has gone out of the discourse and PC’s analysis seems to endorse this trend. Recall that PC uses the term “non-corporate capital” for an economic representation of political society. Reading PC’s descriptions of it, one cannot help suggesting that “labour” rather than “capital” should have been emphasized. After all nearly 40% of the agrarian population are landless labourers [12]; of the landowners, about 86% come under the category of small and marginal farmers, and they supplement income from land with labour income. Simple back-of-the-envelope calculations tell us that at least 55% of the country’s population could be counted within political society – this is the contribution of agricultural sector alone. To get an idea of the size of political society one needs to add the fast increasing chunk of casual labourers in manufacturing and services, petty manufacturers, and self-employed groups of the service sector. Their income source, as we have noted, owes more to labour than to capital. Hence the term “non-corporate capital” seems inappropriate, both as a matter of description and analysis.

In this context one needs to understand what PC mentions about the resistance to forcible acquisition of land. When land was being taken away, some of the villagers did not participate in agitations while some of them resisted fiercely. But PC forgets to examine who did what. Closer examination of these struggles reveal that peasants with little or no land at all – sharecroppers, farm labourers – were the ones who fought on [13], [14]. This perhaps illustrates that using a class-neutral term may not be very illuminating for socio-political analysis.

b. While describing maneuvers of political society in negotiations with the neoliberal state PC uses illustrations of urban labour: squatters, hawkers, etc. This leads him to conclude that demands of political society mostly fall outside the domain of the legally permitted. But what about demands such as payment of minimum wage, subsidised inputs and credit, support price for crops, right to livelihood, right over resources like forest produce, water? Surely these demands, on which political society has plenty of stakes, are entirely legal. One suspects that the urban bias in PC’s analysis and illustrations has pushed the article to dubious conclusions.

Conclusion:

As landholdings have undergone fragmentation and aspirations for urban comforts have soared, agriculture has ceased to be the site of intense class conflict. For the foreseeable future the big question of political economy will be to understand how corporate capital, with hegemony over the state and civil society, negotiates with the clingers-on of a moribund peasant society. Aside from the shortcomings of PC’s analysis, which we have critically examined, resistance at Singur, Nandigram, Kalinganagar perhaps signals that all is not yet over with the agrarian question. Managing political society through governmentality is hardly an answer. Land remains a vital issue on which livelihoods, and therefore lives, are staked. There are no shortcuts – employments would have to be found for the evicted if corporate capital has to reproduce itself without hitch. Moreover, electoral compulsions of representative democracy need not be met through resource transfer as PC has suggested. In a polity where parties deliver anti-neoliberal rhetoric before elections and do precious little once in power [15], actual transfer of resources is neither necessary nor efficient.

Notes and references:

1. Partha Chatterjee (2008): “Democracy and Economic Transformation in India”, Economic and Political Weekly, Vol. 43 No. 16 April 19 – April 25.

2. PC also hypothesises that the rural poor do not face an exploiter in the village any longer; or that since taxes on land or produce are insignificant, the state is not an extracting agent of the peasantry. Both these claims are questionable, but we shall let them pass.

3. Kalyan Sanyal (2008) “Amader Gorib Oder Gorib” (Bengali), Anandabazar Patrika, May 20.

4. See http://radicalnotes.com/2007/02/07/neoliberalism-and-primitive-accumulation-in-india/

5. Utsa Patnaik (1990) Agrarian Relations and Accumulation: The ‘Mode of Production’ Debate in India, (edited) Sameeksha Trust and Oxford University Press, Bombay.

6. Utsa Patnaik (1979) “Neo-populism and Marxism: The Chayanovian View of the Agrarian Question and its Fundamental Fallacy”, Journal of Peasant Studies, Vol. 6, No. 4, reprinted in The Long Transition, Tulika, New Delhi, 1999 provides a detailed criticism.

7. Sainath (2008) “4,750 rural bank branches closed down in 15 years”, The Hindu, March 28.

8. Mritiunjoy Mohanty (2006) “Microcredit, NGOs and poverty alleviation”, The Hindu, Nov 15.

9. Utsa Patnaik (2008) “Neoliberal Roots”, Frontline, Vol. 25, Issue 06, March 15-28.

10. Utsa Patnaik (2003) “Food Stocks and Hunger: The Causes of Agrarian Distress”, Social Scientist, Vol. 31, No. 7/8, 15-41.

11. Jean Drèze (2008) “Employment guarantee: beyond propaganda”, The Hindu, Jan 11, 2008.

12. There is ambiguity whether PC categorises landless labourers under political society or ‘marginal groups’. He mentions marginal groups are low caste or tribal people. By this count the landless are mostly marginal. But then he mentions marginals do not participate in agriculture; they are dependent of forest produce or pastoral activities. Going by the second stronger criterion we shall include the landless in political society.

13. Parthasarathi Banerjee (2006) “West Bengal: Land Acquisition and Peasant Resistance at Singur”, Economic and Political Weekly, Vol. 41, No. 46, November 18 – November 24.

14. Tanika Sarkar (2007) “Celebrate the Resistance”, Hardnews, April.

15. K C Suri (2004) “Democracy, Economic Reforms and Election Results in India”, Economic and Political Weekly, Vol. 39, No. 51, December 18 – December 24.

Courtesy:Sanhati

Philippines: Free Labor Rights Lawyer

Continuing Harassment of Leftist Activists

(New York, October 29, 2008) – The Philippine authorities should immediately release Remigio Saladero, Jr., a labor lawyer who was arrested on charges that appeared to be politically motivated, Human Rights Watch said today.

Philippine police arrested Saladero on October 23, 2008, at his law office in Antipolo City, in Rizal province, his attorney said. The police showed a 2006 arrest warrant for a case of multiple murder and attempted murder in Oriental Mindoro province that bore the name – Remegio Saladero alias Ka Patrick – and a different address. They also confiscated Saladero’s computer hard drive, laptop and mobile phone.

“Suddenly arresting a well-established activist lawyer for a two-year-old multiple murder case in another province should set off alarm bells,” said Elaine Pearson, deputy Asia director at Human Rights Watch. “This smacks of harassment, pure and simple.”

Saladero’s lawyer told Human Rights Watch that he was allowed to meet with Saladero in jail only after Saladero had been interrogated for six hours, even though he was entitled to legal counsel from the start of the interrogation. He is currently being held in the Calapan City provincial jail.

Human Rights Watch is concerned that Saladero was arrested because of the groups and individuals he has represented. His clients include hundreds of workers who have brought wrongful dismissal cases and suspected members of the New People’s Army (NPA), the armed wing of the Communist Party of the Philippines. Saladero is the board chairperson of the Pro-Labor Legal Assistance Center (PLACE) and chief legal counsel for Kilusang Mayo Uno (KMU), an alliance of trade unions.

Human Rights Watch urged the United States and the European Union to monitor Saladero’s case closely and to call for his immediate release.

In recent years, the government of President Gloria Macapagal Arroyo has come under intense international and domestic criticism over hundreds of extrajudicial killings and enforced disappearances of leftist activists, journalists, lawyers and clergy by members of the Armed Forces of the Philippines and the Philippine National Police.

In response to the criticism, the number of such killings dropped sharply, but convictions of perpetrators for serious crimes of this type remain negligible. Local activists have also expressed concern that the continuing harassment and arrests of activists on trumped-up charges shows that the government is only changing its tactics.

Several other cases bear similarities to Saladero’s arrest, and courts have subsequently declared the arrests illegal. In August 2008, a judge in Tagaytay City found the arrest and detention of the so-called “Tagaytay Five,” who had been advocates for farmers’ concerns, unlawful, and ordered their release. Security forces had arrested and detained the five – Riel Custodio, Axel Pinpin, Aristides Sarmiento, Enrico Ybanez and Michael Masayes – in a joint military-police operation in April 2006 and forced them to admit they were members of the New People’s Army.

In May 2007 armed men abducted a church pastor, Berlin Guerrero, in Laguna province. Several days later, he resurfaced in police custody and he was charged with being an NPA leader. In September 2008, the Court of Appeals in Manila dismissed charges of sedition and murder against him, and ordered his immediate release.

The United Nations Declaration on Human Rights Defenders sets out a series of principles and rights, based on human rights standards enshrined in international instruments. The declaration states that everyone has the right to promote the protection and realization of human rights.

“Saladero’s arrest shows the Philippine government is not sincere in its pledges to stop harassing lawyers and activists,” Pearson said. “It’s not just Saladero’s rights that are undermined, but the rights of all Filipinos ever in need of a lawyer.”

Courtesy: Human Rights Watch

Neoliberalism and Hindutva – Fascism, Free Markets and the Restructuring of Indian Capitalism

 Shankar Gopalakrishnan

Over the 1980s and 1990s we witnessed the simultaneous rise of two reactionary political projects, Hindutva and neoliberalism, to a position of dominance in India. Such a combination is not unusual, in that neoliberalism is usually allied with and promoted by socially reactionary forces (such as the hyper-nationalism of the “bureaucratic-authoritarian” dictatorships in Latin America, the implicit racism and jingoism of Thatcher and Reagan, etc.). Yet the Indian experience, while sharing this broad tendency, also contains some very distinct characteristics.

We on the left have tended to understand this simultaneous rise as a straightforward cause-effect relationship. Hindutva is seen as an effort by neoliberalism, or perhaps more broadly by capitalism, to divert attention from class conflict, to divide and weaken working class struggles and to deflect class-driven anxieties on to minority communities. This approach is problematic in two senses. First, it does not explain why Hindutva organisations are able to develop a mass base, except to the extent that they are seen to be appealing to “historical identity” or “emotive” issues. This is undoubtedly true. But it is also insufficient, for by definition any right wing project will appeal to “emotions”; it does not take our understanding of the actual appeal of Hindutva forward. Second, it fails to provide us much understanding of why this specific historical conjuncture has taken place. Hindutva is seen as simply an “available” reactionary ideology that capital has picked up for its purposes.

In this context, this paper attempts a sketch of a different approach. I seek to argue that, for reasons specific to Indian capitalism at this historical moment, what we might call the political projects of Hindutva and neoliberalism share certain socio-political agendas. This shared agenda extends at times to a tactical alliance of the two, where both seek to exploit their “common ground” in order to achieve a restructuring of the Indian polity. Moreover, this alliance has already had a considerable impact on large parts of the discursive and political landscape of India – an impact that has not yet been seriously challenged.

It should be noted that my argument here is neither that this shared agenda was inevitable, nor that it precludes alliances between neoliberalism and other political forces in India. The analysis postulates that this is a historically specific development, shaped by political circumstances, the current balance of forces and the choices made by political actors. Yet, this is also not an alliance based purely on expediency. These projects have shared a logic whose validity is not infinite – in the sense that it will eventually break down under the weight of its contradictions – but is also not entirely non-existent.(1)

Theoretical Approach

Poulantzas’ Concept of Individualisation

This paper draws on three different theoretical concepts for its argument. The first is Nicos Poulantzas’ (1978) analysis of the relationship between capitalist states and “individualisation.” Incorporating Foucault’s analysis into a Marxist framework, he argues that the capitalist state constructs a concept of the “individual” – the “juridical-political person” – as an isolated entity, identical to all other individuals but disconnected from them, whose only connection/unity is represented by the state. As he puts it, the “centralised, bureaucratised State installs this atomization and, as a representative State laying claim to national sovereignty and the popular will, it represents the unity of a body (people-nation) that is split into formally equivalent monads.”

The projection of the “individual” is not merely an automatic reflection of the fact that capitalist society is built around commodity relations. Rather, the dispossession of the producer and the creation of capitalist relations of production generate a “material frame of reference” that makes the individual the centre point of social relations. The state, in turn, “inscribes itself” into this frame of reference, representing both the frame’s ideological unity – the “nation-state” – and its system of organization/regulation. In this sense, it is the state that in fact realises the material frame of reference and gives it social substance. The state then actively participates in perpetuating this situation by constantly constructing and reconstructing the “individual.” “Individualisation constitutes the material expression in capitalist bodies of the existing relations of production and the social division of labour; and it is equally the material effect of state practices and techniques forging and subordinating this (political) body.”

Thus, creating and projecting the “individual” is the centre of the active process by which capitalist relations of production are constituted and reconstituted by the capitalist state. As a result, the concept of the individual becomes “the original ground of classes in their capitalist specificity.” The “individual” forms the conceptual terrain on which class relationships within capitalism are defined.

Poulantzas’ argument, however, assumes that this process is complete in all existing capitalist democratic states. What happens when this remains incomplete? Can the individualisation process itself become a site of social struggle? These questions form the basis for some of the explorations here.

Hegemony

The second analysis that is drawn upon is Gramsci’s familiar concept of “hegemony”, the combination of force with “intellectual and moral leadership” that builds the sense that the ruling “historical bloc” (of one or multiple class fractions) represents the “general interest.” As Gramsci (1971) says, “the dominant group is coordinated concretely with the general interests of the subordinate groups, and the life of the State is conceived of as a continuous process of formation and superseding of unstable equilibria (on the juridical plane) between the interests of the fundamental group and those of the subordinate groups – equilibria in which the interests of the dominant group prevail, but only up to a certain point, i.e. stopping short of narrowly corporate economic interest.”

Three aspects of the concept of hegemony will be critical to our analysis here. First, hegemony is never total, and always contains within itself instabilities and contradictions. Maintaining hegemony requires a constant effort by the ruling bloc: “the maintenance of hegemony involves taking systematic account of popular interests and demands, shifting position and making compromises … to maintain support and alliances”.(2)

Second, hegemony is not simply deceit. Rather, it is material and concrete. It is built around channelling genuine social contradictions in a manner that supports the continued dominance of the ruling bloc. This is naturally impossible to fully achieve, and it is for this reason that hegemony is partial and unstable. If we look at hegemony this way, the analytical focus shifts away from whether a particular ideological project is “false” or is geared towards dividing and weakening the working class or the oppressed. Indeed, both these statements would be true of any ruling class political project. Rather, to understand the functioning of hegemony, analysis would focus on the process by which the interests of the subordinate classes arecoordinated with those of the ruling bloc.

Third, implicit in Gramsci’s analysis is that the generation of hegemony is neither an automatic nor a spontaneous process. Hegemony is instead the result of conscious political action by an organised formation – the “totalitarian” party. In The Modern Prince (1971), Gramsci describes a “totalitarian” party as one that seeks to replace the state as the “neutral body” of society.(3) It attempts to build a hegemonic “national-popular” will whereby it identifies the interests of its leading class with those of the rest of society. Analysing such a party requires understanding first the objective social forces that it is responding to, followed by the degree and nature of self-understanding of its leading classes. The most “political phase” in any such party’s development is reached when it succeeds in “posing all the questions around which the struggle rages not on a corporate but on a ‘universal’ plane, and thus creating the hegemony of a fundamental social group over a series of subordinate groups.” It is important to note that this method of analysis does not require that the party succeed in creating this hegemony – only that it attempts to do so.

Petty Commodity Production

The third concept relied upon here is that of the existence and persistence of what has variously been called “petty commodity production” (Bernstein 2001), or “non-capitalist commodity production”.(4) In this case, unlike in “pure” capitalist production relations, the “agents of this form of production are capitalists and workers at the same time because they own or have access to means of production and employ their own labour” (Bernstein 2001). Such production is by no means “outside” capitalism. It is first and foremostcommodity production, in that it is production shaped as part of a commodity and market relationship, and such producers are dependent on commodity relationships for survival. It is therefore shaped, controlled and in some measure produced by capitalism, and is an integral part of the capitalist social formation. Moreover, as Bernstein (2003) emphasises elsewhere, the role that such production plays in the social division of labour is generally in flux. Spaces for petty commodity production are continually created, destroyed and recreated within the capitalist formation.

It might be objected that this is in no way a new conception. Marxist analysis has long used the term “petty bourgeois” to refer to what seems a similar class. That term is consciously avoided here for two reasons. First, it has now become analytically imprecise and has been applied across the board to many social sectors, some of whom would overlap with petty commodity production and some of whom would not. Second, it is generally considered a “transitional” class, a residual in the social formation. However, Bernstein, Paranjape and a growing body of other Marxist literature has highlighted the reproduction and at times expansion of petty commodity production as a key aspect of modern capitalism.
Finally, the focus here on petty commodity producers is not intended to imply that such producers are not “workers” or that petty commodity production is not, for many such producers, a form of disguised wage labour. It is aimed rather at examining the political implications of such forms of production within Indian capitalism, and their interaction with attempts at constructing hegemonic projects in the Indian polity.

Indian Capitalism and Petty Commodity Production

Petty commodity production clearly plays a major role in the Indian economy (though it is no longer the major site of capital accumulation). Census data shows a consistent pattern of a majority of Indians reporting themselves as “self-employed”, a category which would largely overlap with petty commodity producers in the sense described above. The vast majority of landholding agriculturists in particular fall within this category, excepting a small minority of capitalist farmers. In urban areas, most small enterprises share these characteristics.

Such petty commodity production is constantly subjected to the pressure of class differentiation. In agricultural areas, poor peasants face a reproduction squeeze that drives them further and further into proletarianisation. The small number of rich peasants – until the neoliberal era – aspired, and in some areas succeeded, in making the transition to agricultural capitalism. Similar tendencies operate in urban areas. Such pressures have however not destroyed petty commodity production as a sector of the capitalist economy, a state of affairs that is in fact true of peasantries around the world.(5)

The Indian economy thus can be described as a capitalist economy where the majority of people exist in class positions shaped, if not necessarily defined, by petty commodity production. This state of affairs is generally seen as an outcome of the historical legacy of distorted capitalism and colonial intervention. In addition, however, there is a proximate cause, in the form of conscious state policy and political action in the decades since Independence. Indeed, if we adopt a heterodox reading of India’s planned economy, it could be argued that a major goal of state policy has been to shape the relationship between capital and petty commodity production in India – and that part of this shaping has been a dual relationship of “shielding” and deliberate subordination of petty commodity production.

Partha Chatterjee (1998) and Corbridge and Harriss (2000) have argued that the planned mixed economy was a “passive revolution” initiated by the Indian bourgeoisie, a result of its inability to tackle the continued power of the landlord classes in the first decades after Independence. Certain elements of these policies, many of which still continue, had a clear relevance not only to the landlord classes but to spheres of petty commodity production. Some measures appeared intended to “protect” and perpetuate these systems of production: for instance, reservations for small-scale industries, the peculiarities and numerical limits of Indian labour law, some aspects of priority sector lending and the promotion of cooperatives. These had the net effect of erecting barriers to transformation into capitalist enterprises, hence encouraging capital and most producers to either disguise themselves as petty commodity producers or engage in ‘outsourcing’ of production to such producers. Yet, simultaneously, various other mechanisms operated to ensure the continued extraction of surplus from such sectors: unequal exchange through agricultural price fixing, the relative failure of institutional lending, the allocation of space in urban areas, etc. Such surplus extraction at times shaded into the forms now described as “accumulation by dispossession” (Harvey 2003), but not to the extent of threatening the continued existence of petty commodity production.

The result has been an active state contribution to the perpetuation of a large but dominated sphere of petty commodity production. The reason why this occurred is out of my scope here, but for the purposes of our present argument it is sufficient to consider its consequences for India’s polity. In particular, the persistence of petty commodity production has been a major contributing factor – though not the sole one – in the prominence of “social structures of accumulation”, namely institutions such as caste, gender, religious community, geography and kinship networks, in the regulation of Indian capitalism (Harriss-White 2003). Indeed, petty commodity production in India is marked by the relative absence of direct, formal state intervention in most production processes. State action plays a key role in shaping such production, but does so indirectly, or at times “perversely.”

One key result of such processes is that the tendency towards individualisation, which Poulantzas identifies as central to the function of the capitalist state, has always been highly contested, incomplete and dysfunctional in the Indian context. The construction of the “individual” as the isolated but identical monad exists in a kind of continual dialectical battle with other concepts of social actors and social relations. This impact is not limited only to those engaged in commodity production or who have access to means of production. “Workers” – in the limited sense of those with little or no access to means of production at all (6) – find wage employment overwhelmingly with those who are themselves petty commodity producers, and hence they too are integrated into the ideological-material-regulatory complex that marks such production in India.

Since the concept of the individual is central to the definition of social relations in a capitalist state, this in turn has had an impact on the ground of political struggle around class in India. As Harriss-White and Gooptu (2001) put it in the context of unorganised sector labour, in India the struggle of workers is as much a “struggle over class” as it is a “struggle between classes.” The same can be extended to the struggles of most petty commodity producers. The large-scale presence of petty commodity production thus feeds into the domination of the Indian political scene by political forces consisting of “cross-class” alliances (commonly described as “populist” in left analyses).

The Movements of the 1980s

Against this background, one can attempt a historical analysis of the rise of Hindutva and neoliberalism. The analysis here begins with the decade of the 1980s. As both an ideological tendency and as an organised political force, Hindutva is of course far older than this decade. But it is in these years that it emerged as a dominant mass force in Indian politics. Similarly, while there have liberalist ideological tendencies in some fringe elements of Indian politics from Independence onwards, liberalism – and, post 1991, neoliberalism – emerges as a powerful political project in India only in this decade.

Why might this have been the case? The 1980s were a period of major upheaval in the Indian polity, witnessing an upsurge of new political forces. These included the “social movements”, the new regional parties, the armed uprisings in several major areas of India’s periphery (Kashmir, Assam, and Punjab) and eventually the Mandal mobilisations. In some ways these mobilisations shared nothing in common except that they exploded into the “vacuum” left by the declining coherence of the Indian state and the Congress party. Yet the largest of the movements in the Indian mainland – the regional parties, the “new farmers’ movements” and the Mandal mobilisations – did have one common characteristic. This was the dominant, or at least leading, presence of “rich peasant” groups.

Zamindari abolition and the Green Revolution had contributed by the early 1980s to the creation of a small class of capitalist farmers and a larger, though less clearly defined, class of ‘rich farmers’ in most States in India (excepting the Northeast). The impact of such trends was already visible in the fragmentation and organisational decline of the Congress from the late 1960s (Vanaik 1990). In the 1980s, these classes formed the bedrock of regional parties such as the TDP, the INLD, the SAD or the Samajwadi Party, as well as the leading sections of both the farmers’ movements and the subsequent OBC mobilisations.

In the terms of the argument here, these were social groups at the upper end of petty commodity production, often either having become fully capitalist or on the verge of doing so. These groups faced two primary problems in the 1980s. First, the gradual shift in terms of trade against agriculture through the decade threatened their ability to transition to capitalist agriculture, and in some cases even their ability to reproduce their current conditions of existence. Second, the rise of these communities was not reflected in a concomitant change in political power – which remained in the hands of the urban bourgeoisie.

Simultaneously, other petty commodity producers were subject to an increasing reproduction squeeze, as the state loosened its controls on big capital at precisely the time when their dependence on the market had increased (see below and Bernstein 2001). The “new farmers’ movements” offer a clear illustration of the result. For instance the Shetkari Sanghatna, the largest “new farmers movement” after Tikait’s, built its entire mobilisation on the question of agricultural prices. Though led and dominated by rich peasants, this organisation succeeded in building a mass base among middle and even poorer peasants through its advocacy of higher prices (Dhanagare 1995). This issue concerned most agricultural petty commodity producers, even those who might be net purchasers of agricultural goods, for it defined their relationship with the market economy – a relationship that had become increasingly precarious. Though the Sanghatna leadership explicitly claimed to be in favour of a withdrawal of the state from agricultural and the end of “socialist” regulation on agricultural production, its entire mobilisational universe was built around the assumption of state regulation of prices. When such state regulation did indeed collapse after 1991, the organisation effectively collapsed shortly afterwards.

While such demands were rarely so clearly stated elsewhere, one theme remained: based on a perception of shared interests across petty commodity producers, the parties/movements/organisations demanded that the state allocate more resources, subsidies, and other such supports to their forms of production – and particularly their rich farmer classes. This was converted into logics that made sense across the spectrum of petty commodity production, affected as it was in varying degrees by state investment and regulation. This demand for a “tilt” in the state machinery proved effective at mobilising large sections of petty commodity producers, generating powerful political “waves” that swept aside the Congress in much of mainland India.

Each of these political formations foregrounded the state as the main target of its demands, and thus implicitly as the agent of social transformation – while simultaneously weakening faith in the ability of the state to deliver on these demands. Moreover, the discourse around the state presented it as an arbiter between the interests of communities: a “populist” concept that gained a material foundation through the common interests of petty commodity producers.

Meanwhile, as the state and the Congress party weakened under these demands, other movements – such as the Dalit and tribal movements – also expanded and grew.  Many of these other organisations used the same vocabulary as the larger organisations, reinforcing this conceptual framework as the “common sense” of Indian politics.

Regulations on Capital in the 1980s

Simultaneously, however, the other side of this equation was also changing. Until the 1970s, India’s big bourgeoisie had built monopolistic large corporations through a symbiotic relationship with the state bureaucracy, relying on state regulation to provide them with captive markets. Now, these capitals also began to chafe at the state system, with the continued small size of their markets becoming an obstacle to their growth. State regulation also blocked them from easily absorbing smaller capitals and non-capitalist commodity producers. The post-1980 Congress regime gradually began to change regulatory policies in order to meet this demand. In 1985 the government promulgated a “New Economic Policy”, with tax cuts, lower import duties, export tax breaks and relaxed licensing requirements. The result was a boom in growth, which in turn pushed the Indian economy into a higher growth cycle that it has – on average – maintained ever since (Corbridge and Harriss 2000, Rodrik and Subramaniam 2004).

These two simultaneous but contradictory trends – an increase in demands on the state machinery for support to petty commodity producers, and pressure to relax its restraints on capital – led to an unusual economic conjuncture. As the economy entered its “boom” period, state expenditure and deficit financing also rose greatly, resulting in a rapid rise in rural investment. Rural employment grew, agricultural real wages rose, and income poverty decreased at a more rapid rate than either before or since (Ghosh and Chandrasekhar 2000). This ‘boom’ however was highly vulnerable, built around borrowing from NRI’s and local sources. The resulting dependence on external finance capital was sufficient to trigger the 1991 “crisis”, where sudden withdrawal of volatile funds led to a balance of payments crunch. This “crisis” – generated through capital flight – provided neoliberalism with its entry point, which we will return to below.

Hindutva As a Dominant Class Project

It was in this context of general ‘prosperity’, between roughly 1985 and 1992, that the Hindutva organisations undertook an incredibly rapid mass expansion. In 1984, the Sangh Parivar was still a relatively marginal entity, riding on the dying halo of the JP movement. By 1992, it could stake a credible claim to being India’s largest organised political force (7), and the spectre of fascism was haunting the country. Such an extraordinary growth is unmatched by any other political force in independent India’s history.

In itself, this historical conjuncture should make one doubt theories that seek to explain Hindutva as a “distraction” from the “distress” of the working class. Nor is it a response to a crisis of capitalism, as is sometimes argued by analogy with theories of classical European fascism. On the face of it, the economic evidence shows neither crisis nor an absolute increase in distress among the poor or the working class. Indeed, it shows the opposite. The rise of the Sangh hence cannot be reduced to, or simply read off from, the prevailing economic circumstances.

Such an explanation however requires a shift in emphasis from analyses of Hindutva as a predominantlycultural-ideological phenomenon, which has been the most common approach taken by its opponents. Such analyses focus on the ideological aspects of “Hindu nationalism”, approaching it by asking questions regarding the appeal of such reactionary chauvinism in this political conjuncture. This helps analyse the mass appeal of Hindutva, and also provides ammunition to counter its propaganda and hate politics. But it does not necessarily completely explain the actual growth of the Sangh Parivar. The Sangh Parivar is not merely a vehicle of Hindu chauvinism – it is the most successful political organisation in India today. Its expansion has been the result of conscious political action, not merely automatic or unconscious cultural propagation. Indeed, the Parivar is an excellent example of a “totalitarian party”, in the Gramscian sense explored above. The growth of Hindutva is inseparable from the growth of the Parivar as an organisation.

From this angle, the Sangh has to be analysed as a party. It is necessary to look the manner in which the Parivar translates the dominant class interests that it projects into “universal” interests of other social sectors. This question turns also crucially on the manner in which the Sangh organises itself, for it is through such operations – as argued below – that it projects its actions as a response to social contradictions. This approach neither replaces nor negates the importance of deconstructing the hate politics of Hindutva; rather, it aims to complement it.

The Appeal of the Sangh Parivar to Dominant Class Interests

From the days of the Jan Sangh until the early 1980s, the Sangh Parivar had a relatively clearly defined mass base. The Jan Sangh, and then the BJP, was described as the “brahmin-baniya party”, with little following in rural areas and an inability to capture either the support of urban elites or the working class. Its party positions were a fairly direct reflection of the class position of its supporters, mainly members of the trading class. It favoured external protectionism and internal trade liberalisation, reflecting its members’ interests in unfettered access to domestic markets combined with restrictions on international competition. It opposed trade unions and workers’ struggles and promoted reactionary and jingoistic nationalism. In this sense it was indeed a “petty bourgeois” party in the usual sense. Outside the party, the Sangh Parivar had established most of its current front organisations by the early 1960s, but they remained small.

The Parivar underwent its first wave of post independence growth, both in membership and in stature, during the JP movement, sharing in the popular anti-Emergency sentiment.  But it was only in the 1980s that it truly emerged to become a major political force among the country’s elite and big capital. Simultaneously, and primarily through the Ayodhya movement, it grew into a huge mass force.

At this time, there were some obvious benefits to capital in supporting Hindutva mobilisation. Many of these have already been discussed extensively in the literature. Ideologically, Hindutva was an antidote to the “subaltern” mobilisations of Mandal and the regional parties. It delegitimised class and caste struggle and instead promoted notions of “harmony.” It is in this sense that Corbridge and Harriss (2000) have identified Hindutva as an “elite revolt” against the other mobilisations.
However, there is arguably a further element in the appeal that the Sangh Parivar enjoyed among the ruling class bloc – one which was specifically important in this time. The other movements of the time projected a politics of “communities” competing for state resources and control of the state machinery. Such politics had the effect, at the national level, of further contesting and undermining any effort at individualisation in the Indian polity. It explicitly foregrounded the notion that the polity of the country was a fractured one, built not around identical monads finding their unity in the state, but on contesting, frequently internally divided communities.  In this manner it was indeed a class contestation – though a partial and contradictory one – rooted in the particular positions of petty commodity producers.

This was not a threat to Indian capital as such. As said earlier, individualisation has been a contested process throughout India’s recent history, and moreover petty commodity production – and the ideological systems associated with it – is a fundamental feature of Indian capitalism. Yet, it is arguable that the particular type of contestation witnessed in the 1980s was seen as a challenge. It was during this period, particularly the second half of the decade, that big capital in India had begun to push for opportunities to expand into new markets. The “reforms” of the mid 1980s served precisely this purpose. But, the contestation of individualisation embodied in the other movements of this decade threatened the coherence of the national state, whose active intervention was increasingly vital for such “reforms.” Indeed, these movements demanded precisely the kind of state action that capital increasingly found anathema – increased segmentation of markets, dictation of state spending by democratic politics and state interference in decisions by private capitalists. Finally, expansion by capital in this period also depended on cultural-ideological factors such as a common understanding of unified markets and commodity exchange in rural areas. This was an understanding that was lacking at the time (Rajagopal 1999), and was directly threatened by the promotion of community identities.

It is in this context that a much deeper appeal of Hindutva becomes apparent. To see this, let us examine some of the internal elements of Hindutva ideology, and in particular its approach to its own cadre and supporters. This approach is in no sense limited to merely anti-minority hate politics. Rather, it contains a very specific concept of the relationship between individual, society and state, an approach that is of particular interest in light of the prevailing political situation. Some of the key elements of this are as follows (8):

  • Reduction of social processes to individual choice: Like most organicist ideologies (and in a strong parallel to Gandhianism), Hindutva reduces social developments to questions of individual choice. Thus the Parivar aims to solve Hindu society’s problems by inculcating ‘correct values’ in upper caste men, as exemplified by M.S. Golwalkar’s declaration that “there is a ‘crisis of character’ in our country”; social problems are due to individuals’ “demoniac ways” (Golwalkar 1979). Other Sangh Parivar leaders have made countless similar statements. The remaking of society depends on whether every person can be made a “good Hindu.” What is a good Hindu is, in turn, defined by the Sangh.
  • The state exists only as the expression and guarantor of a collectivity founded around a transcendent principle: The ideal state is the guarantor of the Hindu rashtra, a “nation” that exists as an organic and harmonious unity between “Hindus.” The concept of “Hindu” here is linked on the one hand to the normative notion of the “good Hindu” discussed above, and on the other to the Sangh itself (see below). The Hindu nation is defined by the principles that it claims to adhere to. As Deendayal Upadhyaya (1979) once put it, “the state is brought into existence to protect the nation, and to maintain conditions in which the ideals of the nation can be translated into reality.” These ideals constitute the nation’s “soul”, and the “laws that help manifest [this soul] are termed dharma.” “A state cannot be without dharma nor can it be indifferent to dharma, just as fire cannot be without heat” (Upadhyaya 1979).
  • Divisions within this collectivity are unnecessary and pathological; the only division that is of importance is the line between “society” and its Other, the foreigner. All divisions “within” society are the work of malignant outsiders or foreigners, aimed at breaking up the unity and harmony of the Hindu nation. Thus D.B. Thengadi once claimed that “in our system… [social sectors] form an infinite spiral with no inner conflicts and no tensions” (Thengadi 1979). Sangh leaders frequently draw analogies between society and the ‘harmony’ of the human body (see e.g. Golwalkar 1979).

    As for those outside this nation, some of them are inferiors in need of education. As Golwalkar (1979) said, the  RSS must “discourage people pursuing demoniac ways…[and inspire them] to develop their divine nature.” This includes those too “ignorant” to understand their role in Hindu society, a description that is applied particularly to adivasis. But in case education does not work, Golwalkar continues, “we may have to use sanctions of force also in our endeavour.” ‘Outsiders’ thus have a clear choice: they can swear allegiance to Hindutva and join ‘society’, or they can retain their beliefs, thereby confirming their ‘foreignness’ and making them fit for destruction.

  • It is the Sangh that both constitutes and represents the Hindu nation. The Sangh is not merely an organisation of Hindus – it is the Hindu nation itself. As a Marathi textbook for ekal vidyalaya teachers puts it (9):

    “The aim of the Sangh is to organise the entire Hindu society, and not just to have a Hindu organisation within the ambit of this society. Had it been the latter, then the Sangh too would have added one more number to the already existing thousands of creeds. Though started as an institution, the aim of the Sangh is to expand so extensively that each and every individual and traditional social institutions like family, caste, profession, educational and religious institutions etc., are all to be ultimately engulfed into its system. The goal before the Sangh is to have an organised Hindu society in which all its constituents and institutions function in harmony and co-ordination, just as in the body organs”.

I have gone into these principles in some detail for two reasons. Firstly, there are strong resonances between these principles and neoliberalism, which will be discussed later. Secondly, and more importantly, there is a striking similarity between these tenets and the individualisation process that Poulantzas outlines as one of the functions of the capitalist state. Hindutva, like most authoritarian ideologies, is as much about the production of an essentialised individuality as it is about a totalising notion of the state/community. Hindutva projects a vision of individuals as a collection of monads – “good Hindus” – with nothing to distinguish the one from the other, or to connect the one to the other, except a single legitimate collectivity: the Sangh. This is explicitly a normative vision, not a descriptive one. Such a society is the ideal, and it will be the effort of the Sangh to achieve it.

In this sense, Hindutva’s understanding of the ideal society is in fact precisely the capitalist state’s vision – reified to a level that it becomes unrecognisable within the parameters of bourgeois democracy.(10) And it was precisely at this level that the Hindutva ideological project was fundamentally opposed to the ideological bases of the other movements of the 1980s. It is arguable that Indian capital endorsed Hindutva because, as a hegemonic project, it directly sought the breaking down of the collectivities that the 1980s’ movements had made the central feature of Indian politics. Such collectivities had become an increasing obstacle to the upholding of commodity relations as the organising principle of capitalist society.

It was this that translated into the vocal elite endorsement of the Sangh Parivar as a “nationalist” organisation, one pitted against “sectional” and “vested” interests. Most striking of all was the description of the Ayodhya movement as the creator of a “modern India” (Rajagopal 2001, BJP 1991). Indeed, contrary to much of the analysis of Hindutva as a “reaction” against “modernity”, the Sangh and its cohorts have always been very clear that – in their vision – it is Hindutva itself that promotes “modernity” in India. And from the viewpoint of capital, this was correct, for it would indeed help to create that truly “modern” vision: an ideologically individualist society.

The Ayodhya Movement and Hindutva’s Mass Base

Yet, while this argument may help explain the dominant interests being expressed by the project of Hindutva, we are still left with the question of how this project became hegemonic – or, more crudely, how it succeeded in building a mass base. For that, a closer examination of the Ayodhya movement is necessary.

There is no precise data on the nature of mass participation in the Ayodhya movement, but from available information it appears that its strongest bases were in urban areas, among the urban poor, and in small towns. Urban peripheries also saw strong participation, as well as some rural areas in Uttar Pradesh and Madhya Pradesh. However, it does not seem to have enjoyed a strong base in most rural areas. The organised working class in many urban areas supported the movement but were not active participants or leaders. Geographically the movement was most active in Maharashtra, Gujarat and the Hindi-speaking States, though it had support elsewhere as well.

Even this vague mapping throws up an interesting hypothesis: it appears that the Ayodhya movement mobilised precisely the social sectors that did not fully participate in the other 1980s’ movements. But these sectors also included large numbers of petty commodity producers, particularly in the case of the urban poor. At this time of an increasing shift in favour of large capital, such persons were subject to the same intensifying reproduction squeeze as all other petty commodity producers. Further, they now included in their ranks the increasing numbers of those who lost formal employment as part of the first waves of liberalisation-induced deindustrialisation. At the time this was a geographically specific phenomenon, but one particularly striking example is the textile mills of Bombay and Ahmedabad – many of whose workers, at least in the case of Ahmedabad, subsequently became rabid supporters of the Sangh.

Yet, despite the fact that their circumstances were similar to those of the mass base of most of the 1980s’ movements, these social sectors lacked political formations that could represent their demands in a time of increasing insecurity. One can hypothesise that two reasons fed into this vacuum. First, no corresponding social element to the “rich farmer” groups, which played the leading role elsewhere, existed in many of these contexts. Second, the state’s role was also far more complex and indirect, particularly in urban areas. The populist articulation of a shared “community”, led by large producers but with shared demands on the state, could hence not be formed. Producers were instead fragmented, directly facing the pressures of class differentiation and proletarianisation. Moreover, as the 1980s wore on, the inability of the other 1980s’ movements to produce results for most of their members led increasingly to disillusionment even in areas where such movements were strong. It is indeed true that these social sectors faced a crisis; but it was apolitical crisis, not an economic one.

Building Mass Support

It is in this context that the Hindutva organisations undertook their mass expansion drive. Until this period, the Sangh had focused largely on cadre building and indoctrination as its main method of organisation. Such organising built a core of dedicated cadres with a large geographical reach, but could not undertake mass expansion, especially outside the caste and class lines that defined the traditional strongholds of the Parivar’s organisations.

In the early part of the decade, the organisation undertook a series of changes. In particular, the RSS chose to foreground the VHP – and, later in the decade, the BJP – as the frontline Sangh Parivar organisations. Having been “relaunched” between 1979 and 1981, the VHP began a rapid expansion around 1984 (Jaffrelot 1999). The organisation led a series of mobilisations around the conversion of Dalits to Islam in Meenakshipuram (Tamil Nadu), the Shah Bano case, and the “Ekatmata Yatras.” Mobilisation now began to revolve around temple-building, social service and the yatras, with the last becoming the primary mode of mass action. As Rajagopal (2001) puts it, “there was a shift away from sectarian view of organising, with indoctrination as its aim and daily drill as its chief method, to a far more pragmatic approach that emphasised mobilisation over indoctrination, and political effect over organisational discipline.”

These new modes of organising had a very different impact from the old. They rested on offering various “gains” that corresponded to different contradictions facing different sectors. Unlike the other 1980s’ movements, however, these “gains” were not about state support or political patronage. Instead, they were specifically geared towards concrete, immediate benefits and responses to the contradictions faced by these social sectors at the time.

Some examples are as follows. For adivasis in Madhya Pradesh – a community largely lacking in political organisation but nonetheless increasingly commoditised – the Vanvasi Kalyan Ashram offered direct access to hostels, schools, medical centres, etc. (and later became the nucleus of a more formal system of recruitment described in the last section). More than eight hundred schools were opened by the VHP in 1983 alone, mostly in tribal areas. Between 1978 to 1983, the number of full time activists in the VKA increased by six times, with most of their activities concerned with “service” (Jaffrelot 1999). Similar tactics were used with Dalits. Thus in the early 1980s, the VHP came out with a plan to build 100 temples in SC areas of Tamil Nadu (ibid.). Such temple building was to be a standard tactic throughout the decade, providing a way to channel funds into target areas and offering both employment and charity. In addition, for adivasis and Dalits specific economic contradictions with minorities were frequently exploited. One Ghaziabad riot in 1990, for instance, was triggered by the VHP essentially utilising a balmiki leader’s tensions with Muslims over land in the outskirts of the town, the area to which both had been banished by caste Hindu pressures (Basu 1996). Meanwhile, on the other side of the caste spectrum, the urban upper caste youth who formed a significant proportion of the “shock troops” of the Parivar gained both employment/financial support and the ability to implicitly target the OBC mobilisation that threatened their access to state employment (Jaffrelot 1999, Basu 1996).

In addition to these direct material gains, the Sangh movement also offered a more intangible – but arguably still material – gain by creating new public spaces that were accessible to traditionally marginalised sectors. The movement offered access to higher steps on the social hierarchy by simultaneously aiming to retain its high caste character and “respectability” while allowing entry to those earlier excluded. This strategy was applied to various social sectors. Thus Dalits were specifically wooed by the VHP in the early 1980s; many of the new temples were specifically designed as public eating spaces for cross-caste meals. Dalits were also made carriers of the “holy water” in the Ekatmata Yatras (Jaffrelot 1999), and more generally both Dalits and lower castes were allowed access to ritual spaces traditionally denied to them (Rajagopal 2001).

For women, as is attested by a large body of literature on the gender aspects of Hindutva (11), such access to new spaces and possibilities of political action was perhaps the biggest attraction of the movement. The Sangh offered a “safe” avenue of political action that permitted women, particularly women of lower middle class households, to participate in politics without facing family opposition. Moreover it sometimes even raised, in a conservative and reactionary manner, issues such as sexual harassment and pornography (Basu 2001).

Such access to space leads both to a sense of psychological empowerment and also to more immediate gains, through membership in a privileged group including economically wealthy and powerful individuals. The VHP and VKA’s networks in Madhya Pradesh, for instance, were largely funded by local wealthy traders and former royal families. This was later added to by increasing donations from urban elites and from NRI’s, who soon became a key funding source for the movement. The enormous amount of money that poured into the movement from such sources allowed them to offer both direct and indirect benefits to those who participated. Soon the VHP came to be known, in the RSS hierarchy, as the organisation aimed at the middle castes, the urban lower middle class, and similar social sectors of the kind described above.

Finally, during the latter half of this phase, access to these political spaces also meant participation in violence – and the financial, personal and psychological gains that follow on the use of violence against minority communities has been amply documented. Given the tilt of the state machinery towards the Hindutva organisations, such violence also often could be engaged in with impunity.

The Material-Ideological “Bargain”

In this sense, the movement offered both enhanced security and the prospect of social mobility. The ability to make these offers was crucially linked to the support given to the movement by capital, the state and the upper castes. None of these advantages could be offered by the other 1980s’ movements, who did not enjoy such support.

But this was an offer that came with a bargain. The gains on offer accrued not to the class or the community, but to the individual, and the person had to self-constitute themselves as an individual by abandoning all other markers of identity. As seen above, acceptance of Hindutva ideology and organisational methods brought this as its strongest implication. Thus Dalits and adivasis were explicitly or implicitly forbidden to raise issues of discrimination against their communities. The Sangh women’s organisations neither permitted nor encouraged raising of issues of women’s rights (Sarkar 2001). In the present day, teachers in the Vanvasi Kalyan Ashram’s ekal vidyalaya schools are asked to renounce any party affiliation, any caste identity and any commitment to any “sectional interest” other than that of “Bharat” (see below and Gopalakrishnan and Sreenivasa 2007 for more details). In short, supporters and – at a much more intense level – cadres of the movement were required to discard all identities except their standing as an individual, “good Hindu.”

The Commodification of Politics

Such methods of individualisation were then reinforced by wider discursive tactics of the movement itself. Rajagopal (1999) has argued that one of the key innovations of the Sangh Parivar in the 1980s was the conscious use of political marketing, the re-constitution of political action as consumption. The decision to utilise yatras as the most visible mobilisation vehicle was central to this strategy, and this was combined with the mass marketing of items like stickers, tridents, clothes and pictures. Available statistics show striking evidence of this.  Jaffrelot (1999) notes how, in three days of the Ekatmata Yatra in 1983, 6,000 images of Bharat Mata and more than 70,000 bottles of “holy water” were sold. The Ram Shilanyas in 1989 was performed with the use of bricks sent by villages across the country, and involved a cash contribution of Rs. 1.25 by every individual who joined the ceremonies around the bricks. According to the VHP’s statistics, more than 83 million rupees were collected. The yatras themselves became giant symbolic exercises, advertising the chosen few symbols of the movement (Ram; the trident; the colour saffron; the bricks) in a kind of mass cultural outpouring.

Political action in India has been historically associated with charismatic leadership, or at most with traditional party membership (as in the Communist organisations). The Ayodhya movement instead promoted a kind offetishisation of such political relationships and of political action itself, converting one’s relationship with a physical object or a symbol into the essence of one’s relationship with the movement. Purchasing a sticker or a flag became a method of participating; participating in pujas for bricks and images was a mode of political mobilisation.

The use of symbols in this manner functioned synergistically with the expansion of corporate advertising and marketing into rural India, as both converged on the importance of the “brand” as a basis of action (Rajagopal 1999). The Hindutva movement explicitly tried to convert their politics into a “brand” – and endorsement of that brand through purchase, exhibition or worship constituted the act of political support for the movement. But what is a brand other than a reification of the commodity concept itself? In this way, the Ayodhya movement operated through a discourse of commoditisation of politics. Political action was integrated withconsumption.

This analysis is not meant to claim that hate politics and Hindu chauvinism were irrelevant to the Hindutva mobilisation. They were no doubt the cultural categories and political tropes that formed the substance of the ideology. But the importance of the “Hindu community” was not a result of invocation of religious identity alone. Rather, this exploration postulates that it built on a partial satisfaction of the material-ideological needs of its cadre and its base – while simultaneously converting those needs into a driving force for individualisation and the restructuring of social relations in favour of capital. This partial coordination of interests between capital and large sections of petty commodity producers then becomes a dialectical part of the sense of “identity” of those involved. Hindu “identity” was thus politically reconstructed to mean individualised support for the movement, membership in its organisations and participation in its violence. In this sense, the movement was as much about rebuilding “Hindu” society as it was about targeting minorities.

The Entry of Neoliberalism 

The remainder of this paper concerns the Indian polity after the start of reforms in 1991, with the rise to total dominance of the neoliberal project in India. To evaluate the relationship between neoliberalism and Hindutva in this context, we have first to evaluate Indian neoliberalism itself, both as an economic phenomenon and as a political project.

There are in a sense two sides to Indian neoliberalism. On the one hand, the glaring triumph of neoliberal policies and their endorsement by practically all major political parties across the political spectrum indicates the strength of neoliberal ideology as a shaping force of state action in the country. This is the analysis that most of us on the left share, and it reflects the massive defeats inflicted on the left in the last two decades.

But at the same time, Indian neoliberalism has some peculiar weaknesses. One such weakness is reflected in the policy trajectory that neoliberalism has taken in India. In the first decade, the primary focus was on regulatory liberalisation, trade liberalisation, capital account liberalisation and state rollback – namely the “classical” neoliberal model followed in most nations. But such reforms, essentially aimed at strengthening the power of finance capital, ran into growing obstacles. Those that remained confined to finance and industrial spheres, such as capital account liberalisation, went ahead with relatively fewer hitches. Others that were essentially reallocation of resources within the state, such as budget cuts, also have proceeded rapidly. But those that directly affected petty commodity producers, or the small number of capitalist producers in the agricultural sector – such as food subsidies, the public procurement and distribution system, or complete import liberalisation – have been partly or completely blocked. The PDS has been converted into the “targeted PDS” and thus severely maimed, but it has not been dismantled. Similarly tariff cuts have greatly harmed agricultural producers, but they have not been as total as they were in many other parts of the world.

It is arguable that this weakness reflects the nature of Indian capitalism and the continuing relationship between Indian capital and petty commodity producers. The existence of petty commodity producers is simultaneously a requirement for and a fetter on Indian capitalism, both as a result of democratic politics and through its material relationship with capital. Indeed, the vast majority of production in India, even that in the so-called organised sector, involves some degree of involvement of petty commodity producers. In this sense, incidentally, the neoliberal emphasis on informalisation and “outsourcing” is hardly new to Indian capitalism.

Hence, neoliberalism has required a recalibration in India. This recalibration has become increasingly apparent in the last seven or eight years. In this period, the major new initiatives in Indian neoliberalism have been in the area of what David Harvey (2003) described as “accumulation by dispossession” (or “accumulation by encroachment”, to refer to Prabhat Patnaik’s (2005) slightly more accurate description of events in India). These include liberalisation of mining, the accelerated growth in infrastructure sectors, privatisation of natural resources, and the creation of Special Economic Zones. Also in this category are the brutal judiciary-driven assaults on forest dwellers, urban workers and urban petty traders/producers. As is argued by the theory of accumulation by dispossession, these initiatives are aimed at directly expropriating petty commodity producers (as well as subsistence producers, in a few contexts) rather than eliminating them through market forces. By forcibly stripping these producers of their means of production, they result in mass proletarianisation and super-accumulation for the beneficiary capitals.

Unlike the blocked “reforms”, however, such moves towards accumulation by dispossession are unlikely to lead to the elimination of most, or even a significant portion, of petty commodity producers. They still only affect a relatively small number of producers as compared to the Indian economy as a whole. Rather than an effort at destroying petty commodity production, they can more accurately be seen as the most visible vanguard of a drive for intensified extraction of surplus from the latter – a drive whose most widespread manifestation is the crisis of reproduction in agriculture. This crisis, while also accelerating proletarianisation among the poor peasantry, is impacting producers in direct proportion to the degree of their commoditisation – meaning that the so-called “middle peasantry”, who were simultaneously the most vulnerable and the most commoditised, are being hit the hardest.

Thus, whereas petty commodity production cannot be totally eliminated, it can be more intensely subjugated and made more vulnerable to intensified extraction. Under neoliberalism, Indian capitalism has proven to prefer a more shrunken, dominated space for petty commodity production than in the earlier model. This intensified extraction is in turn made possible by the shift in capital accumulation towards larger producers and the organised sector. It is in this context that the political project of neoliberalism has developed.

Indian Neoliberalism as a Political Project

The failure to implement the “typical” package of neoliberal reforms in India is only one facet of Indian neoliberalism’s weakness. The other becomes immediately apparent if we compare India to Thatcherite Britain, Reagan’s America, or the Latin American dictatorships. In India, neoliberalism is not a mass political project. No political party or organised political force (such as the army in Latin America) has adopted neoliberalism as such as a part of its ideology. To this day, with the very significant exception of Gujarat (to which we will return), no political party has won elections with anything resembling an open endorsement of neoliberal policies. Moreover, other than a generic celebration of consumption and consumption-fuelled aspirations, even popular vernacular media rarely articulates the ideological principles of neoliberalism.(12)

Indian neoliberalism has thus largely failed to build itself into a truly hegemonic project. This is in sharp contrast to Thatcherism, for instance, which built a popular base by using neoliberal ideology to refract genuine contradictions of social democracy (Hall 1979).

In Gramsci’s terms, Indian neoliberalism lacks a “totalitarian party”; it is an ideology without an organisation, except parts of the state machinery itself.

Why this is the case is a far larger question. At an ideological level, by comparison with Thatcherism, it can be seen that the contradictions experienced by most Indians cannot be easily reduced to the formulae of state over-regulation. The continued presence of the state as both supporter and opponent of petty production prevents an easy attack on it as an external imposition. The discourses of the 1980s remain far too powerful to be swept aside, giving rise to endless laments from neoliberal ideologues about “vote bank” politics and the inability of the Indian masses to understand the wisdom of the “market.”

This political failure in turn becomes an obstacle to the subjugation of petty producers. It is clear that if Indian capital found the discourses of the 1980s’ movements a fetter on their expansion, neoliberalism does so at a far more intense level. Such politics directly opposes the blanket liberalisation, regulatory withdrawal and speculative freedom that are so central to the neoliberal project. Moreover, in the Indian context, the persistence of such politics blocks the wholesale subjugation of petty commodity producers and hinders the ability of capital to impose its will on the Indian polity. As such, if neoliberalism is to politically succeed in reshaping India’s society and polity as it wishes, it requires a stronger foundation on which to attack such politics.

Relations Between Neoliberalism and Hindutva 

It is at this point that it becomes apparent that neoliberalism has a strong common agenda with the other project discussed here – Hindutva. This is not in any sense to downplay the obvious differences and tensions between the two projects (most centrally around their conceptions of “freedom”). It also bears repeating that this does not imply that an alliance between the two was or is “inevitable.” Yet, as living political projects, shaped in a dialectical relationship with their social foundations, their common goals offer a space that can be exploited. It is from this perspective that we can understand the gradual growth of the alliance between Hindutva and neoliberalism that developed over the 1990s.

How does such an alliance operate? A good starting point is to note discursive dynamics in the English media. As an ideological site largely internal to the ruling class, the English media is an ideal location for ruling class organic intellectuals to play out negotiations between ideological projects. By observing media discourse, we can then identify the degree to which political projects are finding shared ground.

It is hence striking to note that over the last fifteen years, the English media has shifted to strongly emphasise the ideological resonances between neoliberalism, Hindutva and individualisation. This can be seen if, in a similar manner to the outline of Hindutva conceptions made above, we also outline the conceptions of neoliberalism on these issues:

  • Reduction of social processes to individual choice: In neoliberal ideology, all action in all social spheres is built around “utility-maximising” individuals. Despite being portrayed as a descriptive concept, this is in fact a normative one. The ‘failure’ of individuals to behave as “rational” utility maximisers is attributed to “perverse incentives” from either state or society, which is condemned as both immoral and irrational. In this sense, the utility maximising individual is the equivalent of the “good Hindu” in Hindutva – both the centre of the social order and the ideal that that order aspires to produce.
  • The state exists as the expression and guarantor, not of individual or collective rights, but of a supreme principle: The place of Hindu rashtra is in this case taken by “the market”. The ideal state is the night watchman, the guarantor of the “market” – the only legitimate collective social activity. The state should ideally be the market’s guarantor against interference, nothing less and nothing more. In fact, it is particularly striking that one finds precisely the same phrase – “night watchman” – being used by the Sangh intellectual Dattopant Thengadi (1979) to describe the state.
  • Divisions within society are unnecessary and pathological; the only division that is of importance is the line between “society” and its Other. In neoliberalism, “civil society” – the social counterpart of the economic concept of the “market” – is the only legitimate social institution (a concept taken even further with the notion of “social capital”). As in Hindutva, classes, castes and other identities are fictions, with their roots in malign state interference and “political meddling.” In neoliberalism, the state itself takes the place of the “foreigner.” Welfare agencies, the bureaucracy, the legislature, political parties – all are ‘outside’ society and responsible for its “pathological” divisions. Political actors are socially illegitimate, and for both Hindutva and the neoliberals there is no worse crime than to “politicise” social issues.

Simply listing these principles already makes it apparent that they have become shrill themes in much English media coverage. Perhaps the best example is the reservations “debate.” Caste-based reservations are attacked on the ground that they violate the principles of individual “merit”, as per the first principle. Since the state’s role is to guarantee these principles and not interfere with them, the state is attacked for “meddling” with “meritocracy” rather than doing its job and providing infrastructure, education, etc. Finally, the reservations policy is attacked for “dividing” society along “caste lines” and its roots are seen as being “vote bank” politics. Yet, even though it would be totally contrary to neoliberal principles, much of the English media is happy to advocate economic reservations – which have long formed part of the individualised “social uplift” agenda preached by the Sangh Parivar, projecting reservations as charity rather than social justice. This inconsistency is a hallmark of the effort at finding shared ground.

In an earlier paper (13), I have explored other examples of how these principles play out in operation. Moreover, the media is not only concerned with emphasising the common areas between the two agendas – it has also become a site for de-emphasising and reshaping those aspects that are not in harmony between the two projects. Thus, both in the view of the media and in reality, the Sangh Parivar has backpedaled on those of its issues that are not of interest to neoliberals: swadeshi, most of all, but also such issues as Akhand Bharat, Article 370, the universal civil code, etc. The Sangh’s earlier emphasis on “austerity” has also been quietly forgotten. The media in turn projects this as the gradual “moderation” of the Hindutva forces as they join the “mainstream.”

Similar policy accommodations on the part of neoliberal ideologues are also visible on a close reading. Some of them include:

  • The continual and peculiar emphasis in Indian neoliberalism on “national self-confidence.” This is foreign to neoliberal ideology as such. Rather, it is a notion that clearly owes a great deal to Hindutva’s promotion of the concept of a “national self” that is weakened and sapped by its internal divisions. It is not an accident that exactly the same terminology  – “awakening”, “newfound confidence”, “assertiveness” – that was used by the Sangh Parivar to describe the Ayodhya movement is now used by neoliberals to describe India post 1991.
  • The endorsement of economic reservations, as described above.
  • The attitude towards NRI’s, seen as a kind of “vanguard” of both projects. NRI’s are projected as ideal Indians, representatives of what ‘India’ could achieve if Indians were ‘good’ individuals following correct social ‘values’. There could hardly be any message that neoliberalism and Hindutva agree upon more.

An Institutional and Political Alliance

These discursive adjustments form the face of a much deeper and growing relationship.(14) Such collaboration reached its most visible form at the national level during the NDA regime, when the Sangh Parivar and neoliberal ideologues cooperatively attempted to develop political praxis, institutional structures and hegemonic ideologies that allowed them to reap the advantages of a mutual alliance.

Among these moves were the accelerated privatisation of education, intensified repression of social movements and the opening of the Indian economy to NRI-driven foreign investment. The two projects also promoted “anti-terrorism” as the single most important agenda of the Indian state, while attempting to dissolve its commitment to any forms of “social justice”. The 2004 election campaign, with its celebration of “India Shining”, was a particularly evocative reflection of this alliance – India was shining because it was “growing” both economically and in “self-confidence” as a Hindu nation.

Meanwhile the Sangh Parivar, utilising its access to even enormous amounts of funds (significant amounts of which were either state or foreign-generated), institutionalised and formalised the “bargain” described above. The new pattern of expansion relied on the Sangh’s “seva” arms, which expanded enormously during the NDA regime. By the end of the NDA period, Vidya Bharati, the RSS educational organisation, was running – and still continues to run – the country’s largest private school network. Sangh Parivar outfits emerged as the largest “NGO’s” working in the tribal areas (Vanvasi Kalyan Ashram and its allies). In Orissa and in Gujarat, cadre recruitment grew on a massive scale through “relief” operations in the wake of the 1999 cyclone and the 2001 earthquake respectively.(15)

A key example of these new practices is the “ekal vidyalayas” in tribal areas, possibly the largest Sangh Parivar cadre recruitment activity today.(16) As per their website, there are 26,314 ekal vidyalayas in operation at the time of writing (17), but the actual number is likely to be far larger. In these schools, young tribal men and women are hired as acharyas (teachers), given brief ‘training’ and a curriculum, and asked to take regular classes for children out of school. In practice, neither the curriculum nor the training nor the student population is clear. There is no infrastructure other than irregular textbooks. Even where the acharya ceases to function, they at times carry on drawing their salary.

As such, the schoolchildren do not seem to be the target of the scheme. Rather, the acharyas themselves appear to be the main goal. One obvious attraction is the stable salary (between Rs. 300 and Rs. 500). Second, the appeals in the training are mostly not concerned with overt Hindutva or even Hindu appeals. Instead, the focus is on social service, the need for gaon vikas, and the problems of “division” introduced by ‘politics’. The youth are forbidden to join any political party or any social movement of the area. The stress of the ekal vidyalaya progam is on apolitical social service – which in our society is a high status occupation. Thus the program offers a combination of material security through the salary, and of social mobility by earning respect of those with higher social stature while participating in a high status social occupation.

But, once again, the “bargain” requires the acharya to choose individualisation and depoliticisation, except through their commitment to the Sangh. Thus, ekal vidyalayas and other Sangh ‘seva’ activities build a committed grassroots cadre for whom the “bargain” mentioned earlier is now given a formal, very concrete form: benefits to individuals who perform, and the fear of the loss of all such benefits and a return to being a ‘non-entity’ if one fails.

Such a cadre in turn benefits Indian capital in general and neoliberalism in particular, in exchange for which funds are provided, media access guaranteed and state support (even under the UPA) more or less constant. The result is to make it easier to counter a 1980s’ style of politics, greatly weakening the capacity of petty commodity producers to resist the attack on their livelihoods.

2004 and After

The experiment was partly cut short by the 2004 elections. However hegemonic the aspirations of the neoliberal-Hindutva alliance were, it had failed to achieve real hegemony in the electoral realm. But its successor, the UPA, has become a classic instance of a neoliberal regime that is not backed by an organised political force. It has pursued a schizophrenic political program, whose contradictions have offered space for some small popular gains along with an avalanche of neoliberal policies. It will also almost certainly become an example of how Indian neoliberalism, in the absence of a “totalitarian” party as its ally, devours the support base of its own regime.

A sharp contrast to this situation is the 2007 Gujarat elections, where arguably the Sangh-neoliberal alliance has had its first major and resounding victory. Bankrolled by big capital, publicly proclaimed to be the saviour of both business and nation, the Sangh rode to power against a fragmented opposition speaking the language and raising the issues of the 1980s – caste divides, farmers’ suicides and tribal distress, in addition to tokenistic ‘secularism.’ The Gujarat verdict was built around two simultaneous phenomena. The first was the total dominance of capital, with state support, over both the working class and petty commodity producers, who are at the mercy of big capital in the State. The resulting insecurity and constant sense of threat was fed off of by the Sangh, whose “bargain” became ever-more attractive in this context. The result was the Sangh-driven organisational destruction of all other political formations, whose cadres were poached or coopted into Sangh formations (those who would not, or could not, were repressed or killed). In this context, there was no serious opposition; the Sangh has indeed effectively achieved hegemony, and the totalitarian party has reached fruition.

This is not the only form these collaborations have taken. In Chhattisgarh, a different kind of collaboration has created Salwa Judum, a state supported militia formed by an unholy alliance between the security forces, the Vanvasi Kalyan Ashram (whose cadres are known to be closely involved) and corporate pressure for mineral extraction. Operating in the southern districts of Dantewada and Bijapur, the Salwa Judum has killed hundreds of adivasis and driven lakhs of people from their homes in the name of fighting the Maoists. The militia is mostly led by the elite among the adivasi communities of the area, those who are, in that sense, most commoditised and most accessible to the offers made by the state/Sangh/capital combine. Even as per official figures, more than 600 villages have been emptied of their population; their residents have either fled into the jungles or are trapped in horrific “relief camps” being run by the State government. There are credible allegations that at least part of the motivation for doing this is to ease the handing over of the land to mining corporations. Wiping out the Maoists, among the most dangerous defenders of petty commodity and subsistence production, is no doubt also a goal for Indian capital – and of course for the Sangh.

Whereas Gujarat is India’s most capitalist state, Chhattisgarh is probably among the least. A truly hegemonic form of this alliance cannot take place here, for the degree of commoditisation is insufficient. Hence the balance within hegemony shifts towards force and away from consent, and the form it takes is that of direct, brutal violence – accumulation by dispossession in the most inhuman manner.

Conclusion and Implications for Left Praxis

Neither of these experiments is immediately replicable at the national level, but we do left politics a serious disservice if we therefore dismiss the danger. We have long allowed ourselves to be comforted with descriptions of the Indian right as peddlers of false notions, fraudulent demagogues building castles in the air around “Hindu rashtra” and “India Shining.” In particular, we have believed that Hindutva is primarily an exercise in identity-based chauvinism, a hate politics targeting minorities through propaganda and disinformation. We have seen our role in tackling this threat as primarily being one of awareness raising, enlightenment and education.

The argument here has been that this interpretation of historical processes is incorrect. The Sangh in particular has achieved its incredible growth because it is a truly totalitarian party of the ruling class: responding to the needs of multiple social sectors, while presenting solutions to those needs in forms that correspond to the interests of the ruling classes. Fighting such projects cannot be limited to awareness raising alone. They must be confronted as organisations, to hinder and undermine their ability to offer the material-ideological ‘bargain’ that operates at their very foundation.

When the UPA government falls in 2009, as it is almost certain to do, there will be another chance for neoliberal-Hindutva alliances to explore their full possibilities at the national level. The situation is ripe for such politics to blossom again. At this time, if we do not fight the Sangh on the political level, we not only hinder the battle for ‘secularism’, we provide Indian neoliberalism with an extremely powerful ally. One can even speculate that the one cannot be defeated without at least weakening the other.

Notes

(1) This paper builds on the arguments made in an earlier paper (Gopalakrishnan 2006) but also modifies and attempts to place those arguments in a larger context.

(2) Jessop (1982).

(3) The term “totalitarian” is used by Gramsci’s translators as it is the most direct equivalent of the Italian term. However, the term is not meant to carry the negative implications or historical allusions to Nazism that it carries in English.

(4) Personal communication from Suhas Paranjape. Paranjape also describes two other spheres of production – household and subsistence – that are also very much a part of contemporary capitalist societies, but do not themselves rely on “pure” capitalist relations of production. It should be noted that the term “petty commodity production” is used here to avoid the confusion induced by the term “non-capitalist commodity production”, which seems to imply that this form of production is “external” to capitalism. But the former term is also somewhat misleading, in that such production is not “petty” in any physical sense – neither at an individual level nor in terms of its role in the larger social formation.

(5) Bernstein (2001, 2003).

(6) As said earlier, many petty commodity producers are effectively engaged in disguised wage labour in any case.

(7) The Congress may at the time have had more members than the BJP, but it is doubtful that the Congress and its fronts could together match the numbers of the Sangh Parivar as a whole.

(8) More detailed arguments on these points, and textual evidence from Hindutva texts to support them, can be found in Gopalakrishnan (2006).

(9) This quote is taken from a textbook distributed to adivasi “acharyas” (teachers) in ekal vidyalayas in Thane District, Maharashtra.

(10) I am not attempting to argue here that all capitalism is essentially authoritarian, or that all bourgeois democracies will inevitably culminate in fascism. Rather, I am extending Poulantzas’ argument that representative democracy and the concept of human rights – counterposed to fascism and authoritarianism as the quintessential achievements of liberal capitalism – are in fact the result and the manifestation of class struggle (Poulantzas 1978). He argues that the class struggle, when expressed on the terrain of the capitalist state, is manifested in the form of individual rights. Thus there is no inbuilt check against authoritarianism in the capitalist state, but the very ubiquity of the class struggle means that the actually existing authoritarian states are the result of exceptional social configurations.

(11) See for instance Jeffery and Basu (2001).

(12) With the exception of some films such as Guru or the Tamil blockbuster Sivaji.

(13) Gopalakrishnan (2006).

(14) I have made a more detailed exploration of some examples of these principles have playing out in the English media elsewhere (Gopalakrishnan 2006).

(15) For more details, see In Bad Faith: British Charity and Hindu Extremism , by AWAAZ – South Asia Watch.

(16) More details on this can be found in Gopalakrishnan and Sreenivasa (2007).

(17) http://ekalindia.org , last accessed on July 5th, 2008.

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The struggle intensifies in Nepal

Red Star

The political conflict in Nepal is sharpening. The conflict between two different types of forces, one wants to go forward from the present transitional phase, and the other wants to stop things where they are at present. This conflict has emerged just before the process of drafting a new constitution.

Three years ago, the CPN (Maoist) and seven other political parties had reached an agreement to restructure the country through the Constituent Assembly (CA). Later, when the King surrendered and the seven parties came to power, the CPN (Maoist) agreed to a ceasefire and to hold negotiations. As the CPN (Maoist) is a Revolutionary Communist Party, its goals are clear; forward to a People’s Republic to Socialism and ultimately Communism. But the CPN (Maoist) had agreed to struggle peacefully and try to achieve its political goals according to the people. They had clearly stated that a Federal Democratic Republic will be a transitional phase and will proceed forward by peaceful means. A large majority of the Nepali people approved of the Maoist agendas and the CPN-(Maoist) wants to establish a more people’s oriented republic, a republic orientated towards the people.

The CPN (Maoist) have clearly stated that the party wants to write a constitution that is more accountable to the people. At the same time, Maoist leaders clarified that the Republic will not be a like previous and traditional Communist led states. The Maoist has agreed to multi-party competition. The Maoist wants to establish a Republic and parties can compete within the constitutional framework. The Nepali Congress and some other forces do not want to move a single inch from the failed British Westminster model. This model of ‘democracy’ had been exercised in Nepal for more than 15 years but has failed.

The Nepali Congress leaders are alleging that the Maoist want to establish a ‘totalitarian’ system. This is a common allegation of the bourgeois and the so-called ‘democrats’. In Nepal, the NC and some other parties do not even want to hear People’s Republic and Socialism. If the NC have the right to believe in ‘democracy’, then why do the NC leaders think that the CPN (Maoist) or any other forces do not have a right to follow a different ideology? The CPN (Maoist) has never said that the NC cannot believe in democracy. This single fact proves that the NC is really a totalitarian party that wants to stop others following any other ideology. They can argue about the means to achieve the goals but they can’t demand others to abandon their ideology and goals.

The capitalist economic system is facing a grave crisis worldwide at present. The crisis had raised questions about the capitalist system and ‘multi-party democracy.’ The economy of the US, the role model of capitalism, is on the brink of collapse. Slowly, large sections of the world population are beginning to see socialism as an alternative once again. The countries where socialist system were exercised are not affected so badly. Likewise, countries which are following some sort of socialist methods are also not gripped by the crisis. The Guardian daily (UK) reports that many Germans are attracted to Marx’s writings amidst the financial crisis in Germany too. Marx’s books have been sold a record high. The whole world is debating about the capitalist system, but the bourgeois in Nepal seem unable to learn anything. They don’t want the lesson-the capitalist system generates crisis periodically-but they demand the Communists abandon their ideology.

The NC leaders also oppose the agreement that has already been made about army integration. The essence of the 12-point understanding, as well as other political agreements made after that such as the Comprehensive Peace Accord and the Interim Constitution, is an agreement to restructure the state. The restructure of the security sector is fundamental to restructuring the state, and this demands the integration of the two different armies. But the NC and some other parties are demanding that the People’s Liberation Army that fought for the Republic be dissolved, while the Nepal Army that fought for the King and against the republic be strengthened. For the political change, the NA should be dissolved and the PLA be made the official military force. However, the Maoist didn’t demand this, instead they agreed to integrate both and develop a national army. The NC and other parties who are opposing army integration want to drag the country back to conflict.

Courtesy: Red Star

Class in Making?

October 24, 2008. Around 150-200 teachers from various computer teaching institutions (especially Aptech) whose accreditation has been withdrawn by the Delhi Government demonstrated at Jantar Mantar, New Delhi. The event was organised by a local NGO. They were demanding the reopening of the closed institutions and the reinstatement of the teachers who are presently unemployed. Their demands also included the determination of the salaries and benefits for the teachers according to the minimum wages set by the government, as teachers were/are getting just Rs. 2500-2750 in these institutions (including in CompCom).


The first level of consciousness – “We are also Human!”


The second level of consciousness – “Down with the Delhi Government!”


The third level of counsciousness – “The nexus between the company and the government!”


And the Sectionalist Contradiction – “Illiterates are getting 4000 and the computer teachers just 2500!”


SLIDESHOW