DOCUMENT Statement on Current Economic Policy of the Government and alternatives 1.0 The current economic policy of the government is characterised by: (I) A progressive lifting of controls and regulations on the economy; (II) A reduction in corporate tax rates to Stimulate private enterprise; (III) A restriction of public sector activities of investment at best to a* few infrastructure areas like energy; (IV) A liberalisation of imports of foreign goods and technology and a lifting of curbs on foreign capital;and (V) Allowing the pent-up demand for a variety of luxury consumption goods to be fulfilled and bolstering up such demand through budgetary concessions. 2.0 Such a private sector oriented "luxury-consumption-led-strategy", with greater reliance upon metropolitan capital and products is bound to: (a) Lead to further worsening of income distribution; (b) Increase the imperalist penetration into the economy; (c) Lead to an ouster of small capitalists and petty producers and thus greatly increase centralisation of capital; (d) Have serious consequences for employment in manufacturing; (e) Increase the country* s external indebtedness; (f) Lead to attempts to curtail working class rights; and (g) For all these reasons, strengthen the tendencies towards political authoritarianism. 3.0 An alternative economic strategy must be based upon a complete reversal of the emphasis: it must, ' (a) Put substantial amounts of purchasing power into the hands of the working people through employment generation projects; (b) Thereby stimulate indusrial growth via a revival of mass consumption goods industries;