Insurance Worker Insurance Worker 44 JUNE 2020 VOLUME 63 NUMBER 7 JULY 2020

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Insurance Worker Insurance Worker 44 JUNE 2020 VOLUME 63 NUMBER 7 JULY 2020 Insurance Worker JUNE 2020 43 INSURANCE WORKER 44 JUNE 2020 VOLUME 63 NUMBER 7 JULY 2020 Monthly Journal of All India Insurance Empoyees’ Association EDITOR : AMANULLA KHAN Insurance Worker ECONOMY IN A TAILSPIN -WORKERS ARE RESISTING he worst fears on economy have come true. The fourth Tquarter of the financial year 2019-20 recorded a growth of In this Issue 3.1% pulling down the entire year’s growth to 4.2%. Thiss thei A Few Thoughts on 70th worst performance in the last 11 years. Many eminent economists Foundation Day of AIIEA doubt even these growth figures as they feel that the final quarter’s figures are overestimated by at least one percent. Amanulla Khan 11 This decline was seen coming with downward slide in industrial Pandemic & Women production, low private consumption and practically no new M Girija 14 investments. It is clear that economy is yet to come out of the self inflicted injuries of demonetisation and an ill-planned GST regime. A Time for Empathy The lockdown and Covid 19 would have had marginal impact as it affected only around last 10 days of the financial year. Kaushik Basu, Ela R. Bhat 17 However the full impact of the lockdown is bound to be felt in Beyond the legal counsel’s the current financial year and many more years to follow. Therepredicament are different projections on economy for current year by different Harish Khare 19 rating and international agencies. But there is a total consensus that the Indian economy will shrink very badly. It is clear that theA Stock Market Boom amidst country will experience the worst economic contraction in the a Real Economy Crisis recent history with fall in tax revenues, slowdown in consumption, Prabhat Patnaik 21 lack of investments and exports turning negative. The only saving grace is a relatively better performance by agriculture. AÉiqÉÌlÉpÉïUiÉÉ Måü lÉÉqÉ mÉU The worst impact of this crisis will fall on the workers and AÉiqÉÌlÉpÉïUiÉÉ WûÏ oÉåcÉ SålÉå MüÉ ZÉåsÉ the marginalised sections. It is estimated that more than 120 aÉÏiÉÉ vÉÉÇiÉ 23 million workers lost jobs as a result of the lockdown. The plight of the migrant workers is too painful for words to capture. The The great American insensitivity of the State to the sufferings of these workers was Dream and Reality baffling. Nowhere in the world, tens of thousands of young, old,N Sekar 25 women and children were seen walking bare foot, hungry, tired and exhausted on roads to reach their villages. Those who were Where’s our George Floyd? forced to remain confined to the cities were denied dignity. They Suhas Palshikar 27 were forced to stand waiting for food in long queues for hours. Melody Within The unimaginable sufferings of these workers who are sponsiblere Ramachandra Guha 29 for building the nation clearly showed the total collapse of all constitutional entities including the judiciary. This situation demanded a serious intervention from the Insurance News : AM Khan government to help the most affected sections of the population Working Class Struggles : S Sridhar and for some help to the small and medium enterprises which Economic Tid-bits : J Suresh employ overwhelming numbers of workers. The trade unions For our Field Force : Arivukkadal demanded that the State must help the vulnerable during this Cover Design & Lay-out : grave crisis. They suggested a direct cash transfer of Rs.7500 per M.Ramu, Kriya Prakashana month for next six months to all non income tax paying households Subscription No.1, 1st Cross, CSI Compound, Bengaluru-560027 Ph.: 080-48529910 Annual : Rs. 120 e-mail : [email protected] / [email protected] Single Copy : Rs. 10 JULY 2020 including unorganised labour registered or Covid-19 would push many more millions into unregistered. The Unions also demanded free deep poverty. The heavily privatised economy ORKER ration to all working people for six months, today stands totally exposed in the face of health W strengthening of the MGNREG Scheme and crisis brought about by Covid-19. The country is supporting the small and medium business units. paying a very heavy price in terms of sufferings The Unions also demanded that the government and loss of life in the absence of a strong public NSURANCE should ensure that no worker is retrenched, laid off health system. In such a situation the measures I or fired. These were reasonable and just demands to open up the entire economy to the private in the face of a grave crisis. capital would only not hurt the poor, workers and The government chose not to consider these marginalised but national interests as a whole. demands. Instead the Prime Minister announced The push towards privatisation will have a to the nation a grand stimulus package of Rs.20 devastating effect on the insurance industry. lakh crore amounting to around 10% of GDP The government has already taken measures to without disclosing the details. Finally when the privatise public sector general insurance industry Finance Minister came out with details, it came by divesting its shareholding in GIC-Re and New to light that this much advertised package in India. The consolidation of the three remaining reality is a package of loans, liquidity measures companies in general insurance and their being and structural reforms to privatise the economy. taken to the capital markets is at an advance The package had very little to benefit the poor stage of preparation. The Government has and vulnerable and an estimated government decided to list LIC to raise the much needed spending of just around 1 percent of GDP. The Prime Minister claims that this package will revive AjÉïurÉuÉxjÉÉ MüÉå sÉåMüU xÉoÉxÉå oÉÑUÏ AÉvÉÇMüÉ xÉcÉ the economy, take the GDP to the path of growth xÉÉÌoÉiÉ WÒûD Wæû| ÌuɨÉuÉwÉï 2019-20 MüÐ cÉÉæjÉÏ ÌiÉqÉÉWûÏ and make the country Atmanirbhar. These claims qÉåÇ 3.1 mÉëÌiÉvÉiÉ MüÐ uÉ×Ì® SeÉï MüÐ aÉD eÉÉå mÉÔUå uÉwÉï sound absolutely hollow. MüÐ ÌuÉMüÉxÉ aÉÌiÉ MüÉå 4.2 mÉëÌiÉvÉiÉ mÉU sÉå aÉD| ÌmÉNûsÉå The government is using the present crisis to 11 uÉwÉÉåïÇ qÉåÇ rÉWû xÉoÉxÉå ZÉUÉoÉ mÉëSvÉïlÉ Wæû| MüD mÉëÌiÉ̸iÉ push forward its neoliberal agenda when events AjÉïvÉÉx§ÉÏ ClÉ uÉ×Ì® MåüAÉÇMüÄQûÉåÇ mÉU pÉÏ xÉÇSåWû MüU have clearly proved that neo-liberalism is a failed UWåû WæûÇ,ElWåûÇ sÉaÉiÉÉ Wæ ûÌMü AÇÌiÉqÉ ÌiÉqÉÉWûÏ Måü AÉÇMüÄQûÉåÇ project. There is a massive attack on the rights of MüÉ AÉMüsÉl ÉMüqÉxÉå MüqÉ LMü mÉëÌiÉvÉiÉ AÍkÉMü ÌMürÉÉ the workers and labour laws are so changed to aÉrÉÉ Wæû| rÉW ûÌaÉUÉuÉOû lÉÏcÉå MüÐ iÉUTü eÉÉiÉå AÉæ±ÉåÌaÉMü condemn the workers to slavery of capital. The EimÉÉSlÉ, MüqÉ ÌlÉeÉÏ ZÉmÉiÉ AÉæU urÉÉuÉWûÉËUMü ÃmÉxÉå MüÉåD government has also laid down the agenda for lÉrÉÉ ÌlÉuÉåvÉ lÉWûÏÇ WûÉålÉå MüÐ uÉeÉWû xÉ åÌSZÉÉD SåiÉÏ Wæû| privatising all the public sector enterprises and rÉWû xmɹ Wæû ÌMü AjÉïurÉuÉxjÉÉ ApÉÏ iÉMü AmÉlÉåAÉmÉMüÉå opening the economy to full blast of both the ZÉÑSxÉ åmÉWÒûÇcÉÉD aÉD lÉÉåOûoÉÇSÏ AÉæU ZÉUÉoÉ-ÌlÉrÉÉåÎeÉiÉ domestic and foreign capital. Important sectors eÉÏLxÉOûÏ MüÐ cÉÉåOûÉåÇ xÉå EoÉÉU lÉWûÏÇ mÉÉD Wæû| sÉÊMüQûÉElÉ of the economy like financial sector, ports, mines, AÉæU MüÉåÌuÉQû 19 MüÉ iÉÉå CxÉmÉU qÉÉqÉÔsÉÏ mÉëpÉÉuÉ mÉÄQûÉ space, defence etc are being opened fully for the exploitation of the private capital. The WûÉåaÉÉ YrÉÉåÇÌMü rÉWû ÌuɨÉÏrÉ uÉwÉï Måü sÉaÉpÉaÉ AÇÌiÉqÉ 10 government which speaks of Atmanirbhar Bharat ÌSlÉÉåÇ Må üÍsÉL WûÏ mÉëpÉÉÌuÉiÉ WÒûAÉ jÉÉ| has become critically dependent on foreign WûÉsÉÉÇÌMü sÉÊMüQûÉElÉ MüÉ mÉÔUÉ mÉëpÉÉuÉ cÉÉsÉÔ ÌuɨÉuÉwÉï capital. Growth has been made a hostage to qÉåÇ qÉWûxÉÔxÉ ÌMürÉÉ eÉÉlÉÉ Wæû AÉæU CxÉMåü oÉÉSMåü MüD foreign capital. uÉwÉÉåïÇ iÉMü CxÉMüÉ AxÉU WûÉålÉÉ iÉrÉWæû| ÌoÉÍpÉ³É UåÌOûÇaÉ These measures are bound to further increase AÉæU AÇiÉUÉï·íÏrÉ LeÉåÇÍxÉrÉÉ åDzÉUÉ uÉiÉïqÉÉlÉ uÉwÉïMåü ÍsÉL the miseries of the people. We have always held AjÉïurÉuÉxjÉÉ Måü AsÉaÉ-AsÉaÉ AlÉÑqÉÉlÉ WæûÇ| sÉåÌMülÉ the view that GDP is an imperfect barometer to MÑüsÉ ÍqÉsÉÉMüU xÉpÉÏ MüÐ AÉqÉ xÉWûqÉÌiÉ Wæû ÌMü pÉÉUiÉÏrÉ determine the well being of the people. Many AjÉïurÉuÉxjÉÉ oÉWÒûiÉ oÉÑUÏ iÉUWû xÉå ÍxÉMÑüÄQû eÉÉLaÉÏ| rÉW countries have given up the GDP as a measure of ûxmɹ Wæû ÌM üSåvÉ WûÉsÉMåü CÌiÉWûÉxÉqÉåÇ MüU UÉeÉxuÉqÉåÇ well being of their citizens and are attaching more ÌaÉUÉuÉOû, ZÉmÉiÉqÉåÇ xÉÑxiÉÏ, ÌlÉuÉåvÉqÉåÇ MüqÉÏ AÉæU ÌlÉrÉÉïiÉqÉåÇ importance to human development indices. lÉMüÉUÉiqÉMüiÉÉ Måü xÉÉjÉ xÉoÉxÉå ZÉUÉoÉ AÉÍjÉïMü xÉÇMÑücÉlÉ Despite the claims of continuous growth since MüÉ AlÉÑpÉuÉ MüUåaÉÉ| LMüqÉÉ§É UÉWûiÉMüÐ oÉÉiÉ M×üÌwÉ ²ÉUÉ the onset of neo-liberalism, the country today AmÉå£ÉÉM×üiÉ oÉåWûiÉU mÉëSvÉïlÉ Wæû| has over 270 million living below poverty levels. CxÉ xÉÇMüOû MüÉ xÉoÉxÉå oÉÑUÉ mÉëpÉÉuÉ qÉeÉSÕUÉåÇ AÉæU The lockdown and the crisis brought about by WûÉÍvÉrÉå mÉU mÉÄQå ûuÉaÉÉåïÇ mÉU mÉÄQåûaÉÉ| AlÉÑqÉÉlÉ Wæû ÌMü 2 JULY 2020 resources to fund the fiscal deficit. Therefore, build a gigantic common struggle. We shall surely there is a need to understand the disastrous see efforts towards that end in the coming days. consequences of these economic policies and The emerging struggles of the workers should make determined efforts to defeat them. not be limited to just protest actions but present Struggles today are developing in every to the people a concrete alternative model of sector. The restrictions placed to stop the spread economic development. This economic model of coronavirus and the lockdown conditions must enhance the life standards by attacking have not deterred the workers form waging concentration of wealth in few hands and work Insurance Worker struggles through innovative methods. It was for its proper redistribution. This economic model these struggles that compelled the governments must make it clear that Right to life is a Right to of Uttar Pradesh and Karnataka to withdraw livelihood as well and therefore the Right to Work notifications enhancing the working hours.
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