I am happy that the World Federation of Trade Unions is holding an international seminar on the subject of "Economic Blockade and Sanctions" in New Delhi. I am sincerely sorry for my inability to be present on the occasion and address the gathering. This seminar will provide a good opportunity to the participants from all over the world to exchange their views and experiences on a very crucial issue which is plaguing the world at the moment.

This seminar has been convened at a time when the entire world is confronted with ever mounting problems at the political and economic spheres. There is a serious crisis in the economic sphere, especially in the Third World countries. At the same time there has also been a grave threat to national identities and people’s right to self-determination on economic and political issues.

The crises have deepened because, in the name of globalisation and liberalisation, new economic policy guidelines have been thrust upon the national governments since the beginning of the last decade. Taking advantage of the financial crises and indebtedness of the Third World countries, IMF loans were used to force them to accept GATT, and later, WTO conditionalities. The nation states had to forego their right to plan and work on their own economic agenda or set their own priorities for the benefit of their own people. The published data by institutions like UNDP and World Bank, and our experience show that as a result of these policies vast sections of people all over the world have been affected. Poverty is on the rise, economies have generally taken a down-turn and worse, economic structures and production facilities are being dismantled systematically.

Because of acceptance of unequal competition by several countries including India, national entrepreneurs of small and even fairly large sized industries find it difficult to survive. As a result, growth rate in almost every country has slowed down in the developing world during the last ten years. Some of the South and East Asian countries, which were paraded to be great success stories of the policies of globalisation and liberalisation, are passing through unprecedented crisis and have had to accept further IMF loans with severe conditionalities. Their debt burden has increased to a dangerous level. The story is same with Russia and East European and Latin American countries. IMF, World Bank and WTO have become super-governments and agencies to promote the interests of MNCs in advanced countries headed by the United States.

Increasing

Disparity

I take this opportunity to give a brief account of economic conditions in India. According to published data, the average annual rate of growth of industrial production was 8.5 per cent for a period of seven years (1984-85 to 1991-92) while it came down sharply after adoption of policy of liberalisation to around 5 per cent in the next seven years. In the just concluded year, it has risen slightly to 5.6 per cent but it is much below the projections.

As a result of this fall in the rate of growth of production in major spheres of the economy, there has been a significant increase in the rate of unemployment and side by side, prices, particularly of essential commodities, have also increased unabatedly.

Instead of correcting the policies, the same is being followed more vigorously by Government of India. Blind and unthinking acceptance of so-called globalisation, liberalisation and privatisation has led to assault even on the core public sector units like steel, coal, oil, telecom industries, fertilisers etc.

Gradually, in a systematic manner, our national Banking and Insurance sectors are also being privatised and foreign monopolies are being given free entry in the Indian market. Such steps will eventually take away our control over our financial institutions, which have so far contributed to our national development in a big way.

As a result of the entire policy-the slowing down of production, unemployment and inflation-the interests of the 80 per cent of the population of our country have been adversely affected and the poor have become poorer. There is a growing restlessness among the masses and in such a situation divisive forces, particularly forces of religious fundamentalism, are threatening the secular fabric of our society. Instead of taking steps to extend relief to the vast majority of the people, the managers of the economy are withrawing all subsidies given for providing cheap foodgrains to the poor people and fertilisers for small and marginal farmers. Import duty has been reduced by Rs. 140 billion and excise duty on domestic industry has been increased by Rs 300 billion. All these have been done accepting the conditionalities of the IMF and World Bank.

Left

Opposition

We, of the Left, are against these policies. Therefore, there is an international pressure on the Government and other institutions to marginalise left forces and play down our views and policies. Economic pressure is being exerted by international forces for political purposes in order that the so called reforms process goes on much to the detriment of the people’s interests. But it is worth-nothing that protests and resistance are growing.

Economic Blockade is essentially a process to put extreme economic pressure to achieve some political objectives. It is nothing but undemocratic and hypocritical to talk about globalisation and free trade and then resort to blockade against some countries for political reasons.

What is going on against Cuba, Libya and Iraq is not merely ‘Economic Blockade.’ The design is deeper. The G-7 countries headed by the United States are practically waging a wanton trade and financial war against these countries. The G-7 countries, especially the United States, have not made a secret about their intention that they want to bring the countries like Cuba, Libya, Iraq to their knees and to follow their dictates. The loss in trade and commerce in these countries owing to blockade is astronomical. Their endeavour towards self-development and progress has been gravely affected. Worst is that the common people, particularly children, suffer in these countries because of embargo on import or sale of life saving medicines and essentials like milk and baby food. It is a savage act and needs to be condemned by all right-thinking people.

The US imperialists are using the UN forum to impose blockade against Iraq and Libya and strangulate the public life in those countries. The US Government, considering itself as a super power, paid no respect for the UN resolution, which voted for removing the blockade against Cuba when two countries voted for blockade. Even Canada opposed it.

We have been receiving published reports that child mortality in Iraq has increased twenty times in 1999 compared to the figures in 1989 and malnutrition cases have increased by 30 times in the same period. Blockade against Iraq is going on in the name of the United Nations though that country is not at war with any other country. Libya is suffering from the worst kind of economic blockade. The country has been devastated and made into a desert. After the United States failed to bring the Government and leaders of Libya to their knees, the capital was bombed with explicit objective to kill the President of Libya.

In milder forms, we have seen in recent times, several countries, including India, have been subjected to economic sanctions for not fully towing the US political line or for chartering an independent course of action on national security. Dismantling of the Soviet Union has emboldened the Western advanced countries to establish their economic and political hegemony. The results are here for every body to see.

Valiant

Struggle

The blockages and sanctions notwithstanding, we take note with pride the valiant struggle by the people of these countries to overcome their hardship and threat to their existence. Cuba has shown exemplary courage and determination to beat the blockade. It has proved itself to be one of the foremost countries achieving full employment, universal education and one of the best health care systems in the world. The people there have taken all their difficulties in their stride-an act that is an inspiration to all democratic people of the world. But we apprehend that when these blockades are failing to achieve the objectives, there may be physical attacks against the leaders of these countries, and the borders may be violated.

Despite the heinous blockades, the countries affected by them are receiving massive help from all over the world, which is enabling them to fight the blockades to the best of their ability.

Let the world campaign against these economic blockades strengthen manifold so that the US imperialists are prevented from using economic blockade as a weapon to strangulate the developing countries fighting against the imperialists’ vile designs.

Confronted with this situation, this seminar has a laudable role to play in mobilising the world opinion of all democratic people against the brutal steps of blockades and sanctions.

There is an urgent need for an international campaign against these inhuman blockades imposed on these countries. The US imperialism is behaving like a world gendarme. The US Government does not respect the world public opinion and is deliberately going ahead with its dream of global hegemony.

In today’s context, worldwide struggles and popular movements in all the continents are of paramount importance.

What is heartening to note here is that, the public opinion in the USA, itself is growing very strong against its imperialist machinations. The campaign unleashed in the USA against the child separated from his Cuban grand parents is a recent example of this.

Therefore, a worldwide struggle against the US imperialists is the only weapon to fight such policies of economic blockades.