THE DARK CLOUD OF INDIA’S ENCONOMIC BOOM

India is an emerging economic superpower. With a population in excess of one billion people and GDP growth at 9 and 10% (1) respectively for the past two years, India is on track to be a global force economically and socially. History though has a habit of repeating itself and if India does not take necessary corrective steps now to address its internal issues, the Communist Party led by armed revolutionaries could seize the country.

Cuba is a prime example of greed leading to revolution. A country where billions of dollars poured into industries just after World War 2, but unfortunately; through ineffective and corrupt consecutive Governments, combined with the mismanagement of the economy this eventually led to the rise of the now famous revolution that vaulted Fidel Castro to power and effectively sealed off the country. There now are striking similarities occurring in India today that could turn a prosperous country into another post war Communist state.

You may or may not have heard but just recently in May this year in a string of ever increasing attacks, 300 well organised Maoist’s rebels led an assault on the giant steel company Essar. More than 50 trucks and heavy machinery where destroyed. The Prime Minister of Indian, Manmohan Singh, recently stated in regards to the Maoist’s, “this is the single biggest internal security challenge ever faced by our country”.

Nearly every month some type of planned paramilitary, terrorist activity is undertaken by the Maoist’s Rebels. Some of their other activities, included train hijacking, road side bombs, assassinations and probably the most shocking, that stunned India. The daring raid on a prison in Jehanabad in 2005,in a dawn raid on the prison the Maoist’s rebels freed 250 captured comrades, additionally executing 20 right wing paramilitaries that where held at the prison. Also in the attack a Prison Officer was killed. (2) In 2007 the total deaths in the conflict between the government and the moaists totalled 837, more than in the disputed area of Kashmir. Reportedly, these figures contained no fatalities on the maosits side. (3)

The Indian government acknowledges there has been an ever increasing, ground swell of support for the Maoists in the past decade. Approximately 10 years ago the Maoist’s where a small ineffective minority operating loosely in 4 states. Today they’re entrenched in 28 states covering nearly half of India, mostly within the eastern part of the country. These interconnecting states are now known as the “red corridor” stretching all the way to Nepal. The red corridor encompasses India’s poorest regions, where ethnic tribes and people live in intense poverty.

In neighbouring Nepal there has been a change from monarchy to republic instigated by the Nepal Maoists. This is where their ideology differs, India’s, Maoists seek to overthrow the government and install a one party communist system in New Dehli. No longer a ragtag peasant revolutionary force, today they’re a 20,000 strong guerrilla group stocked with machine guns, mortars and land mines. (4)

The rise of the Maoists has been attributed to the wilful neglect by the Indian government of the regions inhabited b the rebels. In the heartland of the Maoist's territory what is known as the Naxalite zone. This area has been far removed from any government assistance which in turn has bred a culture of distrust with the national government in New Delhi. Within this region there are areas where there are no roads, no power, no running water, no telephones and no government officials to ask for assistance. Through initiatives created by the Maoist’s the Naxalities are creating a parallel administration, they have opened a school, created very basic health facilities and are now looking forward to providing other basic services to their people.

The government of India has increased spending by 45% on the regions police force. (5) Due to sympathisers within the effected area’s, no one will seek assistance from the Police and once the activity by the Maoists have been reported it is to late. The Brigadier B.K. Ponwar who is in charge of the area effected said, “The most important objective is to win the people’s hearts.” He acknowledges this may be to late due to decades of government neglect but said we can not give up.

With the ever increasing flow of investment funds being channelled into the Indian state and international companies scurrying to source a cheap labour force, questions may need to asked about how safe their investment may be and their continued long term future.

Will Burn

Footnotes:

(1) International Monetary Fund report 2007

(2) Naxalites lay siege to Jehanabad, The Hindu

(3) Time, June 2008

(4) Voice of America, May 2006

(5) Time, June 2008

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