Social Scientist. v 13, no. 146-47 (July-Aug 1985) p. 126.

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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;

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