Spectre of Maoism
By Madan Lamsal & Keshav Gautam
"A spectre is haunting Europe - the spectre of communism." Thus wrote Karl Marx and Frederick Engels as the first sentence in Communist Manifesto in 1848. Though Europe exorcised this spectre, especially after the Soviet debacle and the pulling down of the Berlin Wall in late 1980s, it seems to be now haunting the entire South Asia with the rise of Maoism in Nepal .
How serious is this spectre especially for the business, i.e. the "bourgeoisie class" in the words of the communists?
The answer will have so many qualifications that it is not possible to reduce to a single sentence or two. However, a careful analysis of the Maoist views and activities will show that there is no need to be terrified much from this spectre. Here is how:
For one, the communists of today are not the same
as those of the Communist Manifesto era. So, the
ideology of the present day Communists cannot
be found in the Marxian document. The ideological reforms process that underwent in the form of Leninism during early 1920s and Maoism in early 50's is still continuing and, as the Nepali Maoists say, they are developing it into what they call "Prachanda path" after the codename of their supreme leader Pushpa Kamal Dahal (Prachanda). The ideology they are developing will reflect the reality of the 21st century, they say, indicating that the causes of the decline in the communist movement in the post-1990 era would be factored in.
These clarifications by the Maoists have already started showing positive results. While the officials of FNCCI and CNI have been all grins after Maoist leader Dev Gurung had separate interactions with them. Hotel Yak and Yeti, which was not reopening due to the apprehension that it would be nationalised by the Maoists, is now going to resume operation in August.
While the changed ideology is still in the making, one latest document that was circulated as 75-point programme three years ago (see the Cover Story, New Business Age, May 2003 issue) and statements by the Maoist leaders in various media (starting with our sister publication Nepali language Aajako Abhiyan-AA, June 19-25, 2006) during their present over-the-ground appearance are the main bases to study Maoist policies. And these indicate that the Maoists are indeed learning from history and trying to come into terms with the present day reality.
Revolutionary Land Reforms
One important point of the Maoist agenda that has been frightening the business community is their slogan of revolutionary land reforms. Though land is not that an important factor for production for the modern capitalist production system, and therefore Maoist policy on it may not so much affect the modern capitalists of Nepal, it is feared that the Maoists would apply the same logic of land reforms to deal with other forms of property and apply ceiling on all types of property holdings. However, Maoist leader Dev Gurung, who is a member of the Maoist team for peace talks with the government, told AA that the main focus of the land reforms is in the Terai where large tracts of land is being controlled by a few feudals closely connected with the Royal Palace. Even such feudals will be allowed to keep 10 bighas of land in the Terai, he said. And that is the ceiling fixed by the existing law of the government. This means, the Maoists will simply press for more earnest implementation of the law, some marginal policy difference notwithstanding. In a meeting later with the business persons, he categorically denied that the Maoists are in favour of nationalising private property. Though Gurung is an assistant engineer, without any formal higher education in economics, his views carry weight because he is the main coordinator of the preparation of the economic policy document to be presented to the forthcoming Joint Revolutionary People's Council, which is regarded as the supreme body of the Maoist scheme of state management.
Types of Capitalists
Another point of confusion regarding the Maoists agenda was related to a couple of terminology they are using. For example, they say they are in favour of "nationalist capitalists' and against the "agent capitalists" and "bureaucratic capitalists". Now it is clear that nationalist capital is such which is amassed by producing goods within the country by using the domestic raw material and selling the product in the domestic market. Similarly, by agent capitalists they mean those who are amassing capital by being mere agents of foreign capitalists while bureaucratic capitalists are those who have amassed capital by being close to the bureaucracy or the government. It seems by the term bureaucratic capitalists they are referring to the crony capitalists. Since such people are perpetuating exploitation by virtue of control over such capital as do the feudals by virtue of their control over the natural resource, such capital has to be done away with, argue the Maoists.
Foreign Investment
The categorisation of capitalists and the policy to favour nationalist capitalists seems to be another cause of fright for the investors.
But again, Maoist leaders are putting qualifications on this policy bringing it very much closer to what the mainstream political parties are following and the business community itself is pleading for. For example, the Maoists say that they want free competition among the nationalist capitalists while they will allow even foreign capital in selected areas after analysing if such an investment is going to benefit the country. Clearly this is in line with the protectionist policy that the existing investors favour in any country. Even the WTO allows limited protectionism to all the countries with more leeway granted to the underdeveloped and developing countries. And these underdeveloped and developing countries are lobbying through various groups of their own for further relaxation on WTO provisions in favour of such countries.
Regarding the existing foreign investment, Gurung said that his party is not going to ask any of them to pack up and leave. If any of the industrial unit operating with foreign investment is not found according to the Maoists' criteria, they will not ask it to pack up but to restructure.
However, the Maoists have not developed specific criteria so far to judge the suitability of the investment. What Gurung has to say is only this: Foreign investment will be allowed if it helps in producing goods needed for domestic consumption, expanding the infrastructure, growing nationalist capital and attaining a self-sufficient economy. But if it is intended only to expand the market for the foreign products and taking out the raw material from here and sending back the finished goods from the same raw material at higher prices, this will be discouraged. Clearly, this like other ideas of the Maoists, has origins in the Dependency Theory, which is very popular with the Communists but rejected by logic of economics as well as by history. But by saying that they are not going to nationalise the industries, the Maoists have clarified that they are not going to behave like Venezuela 's new President Hugo Chavez who recently nationalised the country's oil companies.
Labour Policy
This is the area of the most immediate concern to the business as the Maoists have been causing frequent labour unrest in one or the other pretext.
The Maoists have in their 75-point programme declared that the participation of labour in the management of the industries will be guaranteed. There are at least three broad models of labour participation in the management - the European, the Japanese and the Chinese. Which of these models are the Nepali Maoists going to follow is still uncertain. The fact is that the European model is now redundant after China 's entry in the global market with its cheap labour (the labour from the communes can be used for the payment of rock bottom wages particularly during the agricultural off season). Upon studying the Chinese labour system, one may be surprised to find that it is far more in favour of the investors than the system being followed in Nepal or elsewhere. In an interview with Germany's Der Spiegel, Singapore's former Prime Minister Lee Kuan Yew had mentioned that the labourers that Singapore used to send for China visit on paid holiday with instructions to see also the labour conditions there, used to come with popped up eyes.
Out of the two important features of the Japanese model, life-long employment system is fast breaking up in Japan itself, while the Quality Circle (QC) system of labour participation in management has already become an integral part corporate management throughout the world and Nepali companies too are learning and adopting it to become competitive.
Industrial Policy
Declaring in the 75-point programme that the industrial sector will be accorded the role of the lead sector of the economy, the Maoists have come up with a really revolutionary idea. And this is not changed even now as the views expressed by Gurung indicate. This is a very important departure from the traditional government policy of treating the agriculture as the lead sector. Though the business sector leaders can still be found harping on the socially acceptable notion of treating agriculture as the lead sector, they are feeling happy in the private due to this declaration of Maoists. However, the other points of the 75-point policy also says that trading of basic goods and foreign trade will be in the hands of the government.
Conclusion
In any case, the stated Maoist policies are to be implemented only when they have total control over the state power. That may be the situation after at least two or three years which will be required to hold election for the Constituent Assembly, preparing the constitution and holding the next election to form the government. But the longer the Maoists interact in the open society, the more likely they are to change the policy further and in this process it can be expected with pretty much surety that they will come still closer to the reality and their policy will very much resemble what the other political parties, at least the CPN-UML, hold. Remember the policy that the CPM (M/L) had before it merged into it the CPN (M) after 1990. Its policy then was in fact more extremist in some respects than what the Maoists have now.
However, it should not be forgotten that the Leftist movement is gaining popularity recently even in Europe . It is indicated not only by the election of Prodi as Italian President just recently and Putin as Russian President a few years ago. The recent labour unrest in France indicates to the same. Stronger Leftist sentiments are natural in any developing or underdeveloped country resulting into the election of Chavez in Bolivia or the like. Therefore, it will be wise on the parts of the Nepal Inc. too to start preparing for the eventuality, just in case. Though one may not agree to Maoist terminology, even the staunchest of supporters of capitalism are dead against "crony capitalism" which we still see thriving in our own country. The Maoist trade union’s frequent activities todays are expected to be short-lived. At present they are trying to gain their foot hold among the factory labourers and it may continue only for some time.
Maoists’ Economic Policies
Agriculture & Land Reforms
1. Agriculture is the major base for the new people's democratic revolution. The major policy of the agriculture revolution will be to establish nationalistic capitalistic production relations by bringing an end to the feudal, semi-feudal and bureaucratic capitalistic production relations. The policy will be based on the principle of 'land to the tiller'. The land that is under the ownership of the feudals, bureaucratic capitalists and various types of guthis (trusts) will be confiscated without paying any compensation and such land will be distributed to the landless and the poor farmers. The land of the rich and middle level farmers will not be confiscated. But there will be ceiling on the land holdings fixed on the basis of the availability of the land and the size of the population.
However, in places where the old regime is not totally destroyed and the people's government is not set up, there will be reformatory steps only in the beginning. Under this policy, some of the steps will be setting ceiling on the land holding, protection of the tenancy rights, reduction in the rent to one third of the produce, reduction in the rate of interest and conversion of the guthi land into raikar.
2. The landless and poor farmers will be made free of all types of debts. The compulsory labour and other exactions imposed on them shall be removed.
3. All the medieval feudal systems like Kamaiya, Haruwa and Charua shall be brought to an end and the victims of such systems will be properly resettled and employed.
4. The minimum wage of the agricultural labourers shall be fixed and strongly enforced. There will be equal wage to both men and women labourers.
5. Agricultural loans shall be made easily available at cheap rates of interest. There will be irrigation facility available for all the agricultural land that is irrigable. The additional labour available in the agriculture shall be utilised for the development of the rural infrastructure.
6. The fertilisers, seeds, pesticides and farm implements will be made easily available and cheap for the farmers. Special attention will be given for the development of agro-based industries and there will be proper arrangement for the marketing of agricultural products. There will be coordination between the prices of the agricultural and industrial goods.
7. Local revolutionary peasants association will be instrumental in deciding the class status of the local farmers (i.e. whether someone is a landless, poor, middle level, rich farmer or feudal). Such association will also help in the implementation of the revolutionary land reforms.
8. The land confiscated in the course of the land reforms (as well as the public land) shall be redistributed among local peasants without discrimination by taking into account the land that they already possess and making sure that the land they now possess will be equal in area as well as productivity.
9. The livestock, agricultural inputs, houses and foodgrains confiscated from the feudals will be distributed among the resource poor.
10. Large forests, large irrigation projects, mines, pastures, large stretches of wasteland, rivers, lakes etc. will be public property and shall remain under the control of the local People's Government. Similarly, the places and artifacts of historical and touristic importance shall be under the control of the People's Government.
11. The officials of the local People's Government and People's Organisations and their families will get equal share on the distribution of the land and property. The family of the martyrs will get special priority in such distribution. The former landlords and their families and the officials of the old regime and their families will get as much property as the ordinary farmers so that they would be able to feed and clothe themselves from their own labour.
12. All the previous documents related to ownership of land and loan shall be declared null and void. New documents will be distributed after the People's Government makes the necessary investigation. Those who resist the revolutionary land reform shall be punished by the People's Court.
13. Though there will be private ownership over property such as the land during the course of the new people's democratic revolution, special encouragement will be provided to organise the production activities in cooperatives of various types so as to increase productivity, achieve optimum utilisation of the labour and to speed up the process of economic growth.
14. The geographical diversity of the mountainous, hilly and Terai regions will be considered so as to achieve a balanced and interdependent development of these regions. Self-sufficiency in food production will be the main focus during the war as well as after the war.
Industry, Commerce, Finance & Infrastructure Development
15. Speedy industrial development at the national level is a prerequisite to achieve a total transformation of Nepali economy (which is in the quagmire of extreme poverty, unemployment, underemployment, low level of development and lack of self-sufficiency) and also to fulfil the advanced physical and cultural needs of the society. Therefore, the industry sector will be accorded the status of the lead sector of the economy. To pave the way for its speedy development, the capital being misutilised by the bureaucratic capitalists will be nationlised, and at the same time the national industries and businesses will be freed from the clutches of the imperialist and Indian monopolist capital. Meanwhile, the capital of the small and cottage industrialists (who are in a large number) and the national capitalists (who are in a small number) shall be provided protection and encouragement.
16. During the war, the emphasis will be on those industries that produce goods that are needed in the Base Areas and that are based on the local raw material. Likewise, special emphasis will be on the development of import-substituting industries keeping in view the possibility of economic sanctions from the imperialists and the expansionists during, as well as after, the war.
17. Since there will be deficit of capital and a surplus of labour for a long period to come, the emphasis will be on capital-intensive industrialisation. Special attention will be given for the development and use of the local technologies. The vast water resources will be used through small hydro-electricity projects so as to fulfil the energy needs of the country and to achieve sustainable, self sufficient and environmentally clean development.
The ongoing development process that breeds inequality across the economic sectors and geographical regions will be brought to an end. There will be a planned effort for a balanced development of agriculture and industry, small industry and large industry, cottage and modern industry, village and cities, and hills and Terai.
18. For workers, there will be 40-hours a week of work period, and there also be a minimum wage fixed. These provisions will be strongly enforced. The participation of the labour in the management of the industries will be guaranteed. Cooperatives will be encouraged for the small and cottage industries.
19. The trading of basic goods and foreign trade will be in the hands of the government. Other trades will be in private hands. The monopolistic control of the Indian capitalists over the commerce sector of the country will be brought to an end. The state will provide protection to the domestic traders. Trade relations will be maintained with all (countries) on the basis of mutual benefit and equality.
20. Consumers' cooperatives will be encouraged to ensure easy availability of the consumer goods. The state will intervene in the market to maintain price stability. The customs policy will protect the domestic products.
21. The exploitation through imperialist capital will be brought to an end and the country will be freed from the grip of foreign loan. The financial institutions will be given the freedom to make the capital easily available in the villages. But there will be control on the interest rate.
22. There will be a systematised budget system for public expenditure management. The tax policy will be according to the needs of the war and economic restructuring.
23. The imperialist encroachment being carried out through NGOs and INGOs shall be brought to an end.
24. There will be a planned development of transport and communication system keeping in view the geographical constraints of the country. Unplanned urbanisation will be controlled. Planned settlement systems will be developed in newly freed areas.
25. Instead of big hydro-electricity projects that are fully dependent on outside sources, the emphasis will be on the small, medium and multipurpose as well as self-reliant projects. The benefits to the nation and the general people will be kept in consideration while developing the tourism industry.
(Excerpted from 75-point programme. Translation by Nubiz desk)
"What Maoists are saying about WTO and regulating foreign investment for the benefit of our people is something we independent economists have been saying all along. So, as I see, there is nothing to fear from Maoists regarding the ongoing macro-economic policy, liberalisation and privatization. What Maoists too have to realise is that if their views about WTO remain their views only, it will not help much. If it becomes the view of the entire nation, we may be able to raise it effectively through appropriate groups of nations under WTO."
Prof dr. bishwombher pyakuryal
Economist
"When I read the views of Maoists expressed recently, I find them being more flexible. They seem to favour labour-intensive production. This is a right policy for labour-surplus Nepal . But we must not forget that labour is not only the muscle power, also the knowledge power is an advanced form of labour. Moreover, if we want labour intensive production, the laws should be amended accordingly, i.e. to encourage employers to use labour.
Their views indicate that they do not want a particular group to retain monopoly over industry. But it depends on the stage of economic development. As the economy goes up along the steps of development, the ownership over industry shifts to the general people through the stock market. Family business is quite natural till then.
Maoists’ emphasis on industrial development over agricultural development may be guided by the visibility effect that an industrial unit can be set up within a short period of time and the employment creation in such industry is substantial. Second, it also helps them politically. It is easier for them to develop their constituency in industries through trade union. "
padma jyoti
Chairman, Jyoti Group
"Foreign investment will be allowed if it helps in producing goods needed for domestic consumption, expanding the infrastructure, growing nationalist capital and attaining a self-sufficient economy. But if it is intended only to expand the market for the foreign products and taking out the raw material from here and sending back the finished goods from the same raw material at higher prices, this will be discouraged."
Dev Gurung
Member of Maoist Delegation for Peace negotiations and the coordinator of economic programme drafting team of Maoists.
