The Bengali daily Ganashakti, CPI(M)’s Bengali mouthpiece, declared on 23rd October, 2002, “Subsequent to a thorough research for ten long months, Mackinze, a premier consultancy firm in the world, submitted its report to the [West Bengal] Govt.” A US based consultancy firm, Mackinze, is reported to have submitted an investigative report on West Bengal to the state Chief Minister on 22nd October in a meeting of the State Investment Promotion Board. The firm is reported to have been paid a few crores of rupees for its ‘grand’ efforts. At a time when the state Govt. is in a ‘dire’ economic crisis, why is it spending so much for Mackinze? Questions also arise – What is this report all about? Who will gain out of it? Let us try to get answers to these questions.

What is there in Mackinze Repot?

This “premier” consultancy firm was given the responsibility in October-November 2001, by the ‘Left’ Front Govt., to investigate the prospects of agriculture-based industries and Information Technology-based industries in the state. The firm, while investigating these possibilities, had contacted several Indian and foreign investors in this regard. According to the report, the state has “immense possibilities” in agro-industries. The report claims to have established contacts with 65 domestic and multinational companies dealing in agro-industries and several other corporations for information technology, who would be interested in investing in the state.

The state Industry Minister, Nirupam Sen, stated, “This initiative is aimed at attracting national and multinational investors to the state. Mackinze has already established contacts with several such investors. We have received good response from them. Now our plans and efforts should be commensurate with their requirements and demands.” (Translated from Ganashakti, 23rd October, 2002, emphasis added) Yes Minister, your statement answers why the ‘Left’ Front Govt. should spend crores for Mackinze, for “attracting national and multinational investors,” and should now proceed to cater to “their requirements and demand.”

To push through their expensive consultancy report, Mackinze drew a glossy picture of the potentials of the industries in the state. They foresee the possibility of “West Bengal becoming the granary of India” and “One of the three leading states in Info-Tech by the year 2010.” They claim that agro-industries and Info-Tech industries in the state would draw investment to the tune of Rs. 18 thousands crores and Rs. 70-80 thousand crores respectively. They would generate, according to the report, new employment for 10 lakh people in agro-industries and 3.5-4 lakh technologists in Info-Tech industries.

Transition from Agriculture to Agro-Industries

Mackinze’s Report has made several recommendations to the state Govt. pertaining to ‘developing’ agro- and Info-Tech industries in the state. It has divided the period from 2002 to 2010 into several stages and set concrete ‘goals’ for each of them. According to the report –

(a)        The State Govt. during the 1st stage (i.e., 2002-2004), should try to draw maximum possible investment in agro industries. It should try to attract at least 10 out of the 20 big agro-based corporations in the country.

(b)        The State Govt. should bring about appropriate changes in sales tax regulations, in order to reduce the cost of processed foods and raise their demand in the market.

It has essentially suggested abolition of the existing 10% surcharge on processed foods.

(c)        In the 2nd stage (i.e., 2005-2007), the Govt. should build unanimity among various political parties to frame extensive laws and regulations regarding contract farming.

(d)        In the 3rd stage (i.e., 2008-2010), it should try to establish a leading role in Asia. It should aim at entering the international market and attaining international standards and rates for its products. Export should be the primary source of income during this period.

Status of Agriculture in West Bengal

The West Bengal Chief Minister recently stated, “72% of agricultural land in the state belongs to poor and marginal peasants. This is a basic aspect of our success. Another basic feature is the fact that 15 lakh sharecroppers are now enlisted through Operation Barga. We have recorded and distributed 11 lakh acres of land since coming to power. … Last year we came first in agricultural production, producing 138 lakh metric tones of food grains.” (translated from Marxbadi Path, August 2002)

The real nature of CPI(M)’s claimed successes in land reform have been discussed in details on various occasions in our earlier issues. We would, however, like to substantiate the ‘basic aspect’ of the CM’s professed successes through the following quotes.

“It is therefore no surprise that growth rate in agriculture has been slowing down. Cereal production rose by 28% between 1985-86 and 1990-91. In the two successive five-year periods that followed, this particular growth rate fell to 14% and then 11%. Similarly the growth rate of total agricultural output fell from a high of 15% and 16% (over the periods 1985-86 to 1990-91 and 1990-91 to 1995-96, respectively) to 9% over the period 1995-96 to 2000-2001. Indeed one might expect, in the absence of further innovations, agricultural growth in West Bengal is heading where other successful states like Punjab and Haryana have ended up – in a plateau of close to zero growth.” (“Strategy for Economic Reform in West Bengal”, Economic and Political Weekly, 12-18 October, 2002)

An ex-Land and Land Revenue Minister of the state, Surya Kanta Mishra, had recently confessed – “Wages and workdays of agricultural labourers in the villages during 1990s have remained static and mid-1990s onward the real wages have actually come down.” (“Land Reform in Contemporary West Bengal and the Duties of the Left”, The Marxist, July-December, 2001). He also stated there that for the agricultural labourers “There is deprivation as far as adult literacy, attendance of schools by children and health care facilities are concerned”, “There emerged a new class of rich villagers in the post land reform period” and “A new type of usury has replaced the old usury.”

The above quotations are enough to expose the masked “successes” of the ‘Left’ Front Govt. in the agricultural sector and let us now see where these ‘successes’ are heading to.

The Planning and Development Ministry of the West Bengal Govt. had submitted a Draft Agricultural Policy on 21st May 2002 for approval. Some of its noble suggestions – “The State Govt. should take appropriate measures to take advantage of globalization in agriculture”; “Agriculture in the state should be re-oriented from production of food grains to production of cash crops”; “Agro-Industries should be developed and made export oriented”; “Agricultural export zones should be developed.”

Alongside these recommendations, the draft also points out – “Over the last 10 years agricultural production in the state has either remained static or gone down. Its agricultural scenario is full of problems, contradictions and obstacles. The production of the principal food grain in the state is less than the requisite.” This same draft calls for “contract farming” too.

Note the striking similarity between the draft Agricultural policy of the ‘Left’ Front Govt. in the state and the new Agricultural policy of the BJP led central Govt. Both the policies call for “Taking advantage of globalization in agriculture”, “Transforming food grains-oriented agriculture to cash crop-oriented agriculture”, “Producing crops that are in demand in the international market”, and “Developing agricultural export zones.” The clarion call for cash crop and export-oriented agriculture is being given by both govts. at a time when production of food grains is less than what is required. While the present population growth rate is 1.9%, the growth rate of production of food grains is 1.7% only. At the present rate of growth, West Bengal will produce 147 lakh metric tones of food grains in the year 2006-07, while the requirement would be 174 lakh metric tones – a deficit of 27 lakh metric tones. Under these circumstances, reduction of land area under food grain production would be overtly suicidal.

Open criticisms of the Draft forced the State Govt. to withdraw the Draft Policy and bring a second Draft of the Policy in August the same year. Extreme care was taken to blur the overt similarities between the agricultural policies of the Central Govt. and of the state Govt. Presented in a completely different tone, the second Draft said – “Export-oriented agriculture will aggravate the struggle for existence of poor peasants, because price of agricultural products is going down in the world market. [It will] significantly affect self-dependence on food grains. … Market-oriented agriculture is pro-rich and will intensify the struggle for existence among small peasants.” The second Draft calls for “An alternative course of agricultural development in view of national crisis and imperialist onslaught” to be developed.

A smart presentation indeed. The question, however, is – Did the Mackinze Report find out the coveted “Alternative course of agricultural development in view of national crisis and imperialist onslaught”? Moreover, if the lessons portrayed in the second draft indeed reflect the understandings of the Govt. and its ministries, why does the Industry Minister talk of plans and efforts ”commensurate with their [national and international investors’] requirements and demands”?

Some Relevant Notes

It will not be out of context to point out that, unlike the tropical countries, western countries, because of cold climate, have a limited scope of agricultural production. They have only one harvest season, while tropical countries like ours have two and are rich in bio-diversity. In order to diversify and enrich their agricultural pattern the imperialist countries have tried to utilize the agricultural diversities of countries like ours. They always wanted that such countries should produce catering to their (imperialists’) needs, should make agriculture export-oriented. This has a far-reaching consequence. This re-orientation of agriculture (in third world countries) leads to the following chain consequences – reduction in land area under food grain production and gradual increase of land area under production of commercial crops – reduction in production of food grains – dependence on imperialist countries for imports of food grains to meet the deficit in domestic food grain production.

Since 1990, it is noted that under the pressure of globalization and liberalization, agricultural land area in our country has been steadily decreasing, particularly land under food grain production. This is true for West Bengal too. Even Surya Kanta Mishra in his article points out – “Another notable feature in the state is the increasing tendency of shift over from production of food crops to production of other crops. Transformation of lands meant for production of food crops into tea gardens in North Bengal, pisciculture and tree plantation in previously food crop producing lands in districts of South Bengal are generally observed. New policies must be enunciated to solve this problem, since cultivation of non-food grains would endanger the food security of poor families.” (“Land Reform in contemporary West Bengal and the Duties of the Left”, The Marxist, July-Dec. 2001; stress ours)

Another reason why the imperialist countries want reduction in land area under food grain cultivation in our country (and other third world countries) is to create a market for their own over-production of food grains. Imperialist countries consume only 66% of their own food grain production (80% of their own wheat production). Mackinze’s recommendation for “Transition from agriculture to agro-business” is actually meant to create this condition in the semblance of ‘development’. When Mackinze sets an “Aim at entering the international market” or the ‘Left’ Front Govt. calls for appropriate steps for taking advantage of globalization in agriculture” – all these are done keeping in mind the conditions imposed by WTO, and in the background of the situation of today’s world market.

To meet the conditions of WTO, subsidies in agriculture in our country have been brought down from 10% to 3%, while imperialist countries themselves offer 40% subsidies in agriculture, and even 90% in some cases. USA used to give subsidy in agriculture to the tune of $30 thousand crores, which has been recently raised to $47 thousand crores, an amount more than the annual income of the entire population in India, and this subsidy is being given to their 27 lakh peasants!

Moreover, quantitative restrictions on imports in our country have been withdrawn – 1429 items, more than 150 of which are agricultural products, are now freely flowing in from outside. It is anybody’s guess what will happen when such highly subsidized products enter Indian markets.

For those who feel that India will gain prosperity through export, we would like to remind them that 80 countries like ours export agricultural products to imperialist countries. Moreover, these imperialist countries are least interested to import agricultural products, by imposing 173% to 288% levy on import of such products.

Lenin in his book “Imperialism, The Highest Stage of Capitalism” said –“The increase in exports is connected with just these swindling tricks of finance capital, which is not concerned with bourgeois morality, but with skinning the ox twice – first, it pockets the profits from the loan; then it pockets other profits from the same loan which the borrower uses to make purchases from Krupp, or to purchase railway material from the Steel Syndicate, etc.” (Selected Works, p. 253)

Today’s world market and imperialist countries are going the same way. One the one hand, they are introducing their products in third world markets, after huge subsidies to the products, in the name of free-trade and on the other hand imposing huge import levy on products from countries like ours so that they cannot enter their markets.

That is not all. Yet again, “Consumers in the rich countries are increasingly reluctant to eat anything that is not guaranteed to be ‘safe’, meaning that their production has taken place in highly monitored environment. Lobbyists and spokespersons from import-competing industries in these countries are always happy to push for even tighter regulations of imports of edibles, for obvious cynical reasons. … It is foolhardy to think that a local firm (or a cooperative, according to the Govt.’s plan) will be able to compete with these farms to get access to these markets. Just imagine what would happen to exports from West Bengal if someone spreads the rumor that the local farm is growing fruits on arsenic-infested land.” (“Strategy of Economic Reforms in West Bengal”, Economic and political Weekly, 12-18 October, 2002)

Such attitudes of consumers from imperialist countries, which have been developed by the MNCs, have been institutionalized by WTO through its stipulations. According to them, agricultural products in the world market should satisfy the quality requirements, should satisfy health requirements, should not be produced utilizing child labour and should not affect environmental conditions.

When the ‘Left’ Front Govt. is talking of taking “appropriate measures to take advantage of globalization in agriculture”, developing “agricultural export zones”, transforming food grains-oriented agriculture into market oriented agriculture, it cannot be accepted through any logic that they are unaware of the directives from WTO. Today’s globalization is an imperialist globalization, a globalization against the third world.

So Mackinze’s Report (and also the Agricultural Policies of Govts.) cannot go beyond the WTO directives and the requirements of the imperialist forces. Naturally, they have to talk of concepts like “re-orientation of agriculture”, and “agricultural export zones”.

Mackinze’s Proposals Unmasked

We have already mentioned that Mackinze’s report is trying to make us dream – dream of a state devoid of hunger and unemployment, a role-model state for other parts of the country to emulate. It hardly deserves mention that these dreams have no objective basis. It is only a ploy – a ploy to get us carried away by the wave of imperialist globalization, a plot hatched by the MNCs and the big bourgeoisie of our country. It would be interesting to note that similar rosy sketches are canvassed for time and again for our country as well, including India becoming a superpower.

Another notable aspect is the harmony in the tones of the various agencies of policy making. The IMF, World Bank, and WTO call for an “overall policy agreement” among the political parties on privatization and liberalization in economic policy. Similarly, Mackinze Report proposes developing “unanimity among political parties to frame extensive laws and regulations regarding contract farming”.

To comprehend the Mackinze Report properly, one should examine their interim reports too. The interim report proposed changes in labour laws to draw investments: (i) Alteration of Shops and Establishments Acts to facilitate super-markets dealing with agro-products remaining open all days of a week, (ii) Changes in Contract Labour laws to facilitate easy engagement and dismissals of contract workers if and whenever necessary, (iii) Revaluation of the time limit of issuing notices of strikes, (iv) “Zero labour problem” and (v) Revaluation of Industrial Disputes Act, regarding the scope of issues it can address. All these are evidently aimed at establishing an agro-based industry absolutely free from labour problems – no strikes, no labour disputes, no permanent workers, no liabilities and workers’ entitlements, and not even weekly holidays.

While the CPI(M) and its trade union front, CITU, ‘vehemently’ oppose the New Agricultural Policy of the Central Govt., as well as the changes in labour laws, they are eager to accept the same changes in policy and laws, as proposed by Mackinze Report, in West Bengal. Surprised? Not really. There is, of course, a difference in the two policies, we must agree. While the New Agriculture Policy talks of “corporate farming”, as dictated by WTO, ‘Left’ Front’s Agro-Policy talks of “contract farming” – a difference in words, not in essence.

Conclusions

‘Left’ Front Govt.’s Agro-Policy and Mackinze’s Report, when implemented, will imply opening up the doors of agricultural sector in West Bengal to the entry of the imperialist forces. Contract farming would lead to larger number of landless peasants, who would then work as contact labourers helping in the production of high quality rice to be exported, and themselves spending starved and semi-starved days, months and years for want of some ordinary rice.

Anil Biswas, a prominent leader of CPI(M) in Bengal, commented “Our state govt. is going all out for investments from foreign MNCs and monopolies for the development of the poor and the middle class.” (translated from Ananda Bazar Patrika, 25th October 2002) Have ‘biswas’ (faith) on them? Another CPI(M) stalwart, Biman Basu, said in connection to contract farming (Chukti Chash in Bengali), “Some find chukti (contract), some others mukti (freedom)” in it. These Basus are among the “others”. Yes you are right, Mr. Basu. Larger number of peasants will get ‘freedom’ from land, at the behest of imperialism. Ganashakti also speaks in the same tone as the “bourgeois” newspaper, Ananda Bazar – “It [Mackinze’s Report] is a major milestone in the effort of West Bengal to turn around, strong and stout.” Yes your ‘Sonar Bangla’ has ‘turned around’, and would go further. So why worry, sing in chorus with your ‘comrades in arms’ – “We are in the same boat, brother.”