Authoritarianism Disguised as Capitalism?
Tens of thousands of farmers have amassed in New Delhi protesting against the recent farming reforms enacted by the GoI (Government of India) in an attempt to overturn three farm bills aimed at liberalizing India’s agricultural sector. The structural reforms intend to permanently raise agricultural incomes. While proponents of the bills argue that the attempt to deregulate and privatize India’s agricultural sector is one that encourages efficiency, the efforts have drawn growing national and international condemnation from farmer groups around India, environmental activists, and even Western celebrities.
However, as demonstrations continue to ramp up and the police block the city’s borders, the dissent is only continuing to aggravate and its repercussions may prove detrimental not only to the farmers but as far-reaching as the Indian economy. This raises the question of whether the GoI’s attempts can be classified as capitalism or instead as a clamping down of freedom of speech and tolerance amongst other seemingly authoritarian measures.
The story begins in 2018 when tens of thousands of poor farmers flooded cities all across India calling for government action to ease their poverty-stricken lives and their immediate demands were higher prices for their output and loan waivers for their debts. A year after Narendra Modi’s BJP won the elections by a landslide in 2019, the GoI finally set out to address the concerns raised by the farmers. In September 2020, the GoI passed 3 farm bills in the parliament. Traditionally, farmers around India sell their produce to local government-regulated markets (known as mandis) but the laws allowed farmers to bypass and circumvent such markets and sell their produce beyond their local districts directly to private buyers for better prices. Moreover, the laws also enabled farmers to enter contracts with private companies by selling their produce in advance.
The primary reason behind the farmers’ protest is that the bill completely lacks the safeguards necessary for major market deregulation (wherein, the market starts to be increasingly controlled by the private sector). Approximately 800 million Indians’ primary source of livelihood is agriculture and more than 86% of India’s cultivated farmland is controlled by farmers. Farmers’ main fear is that the new laws will enable big corporations to seize market control, leaving them vulnerable to exploitation in the long run. Moreover, what exacerbates the farmers’ concerns is that monopoly power is common in Indian industries. In fact, only 20 corporations account for 70% of all corporate earnings in India while this figure is 25% in the US. Furthermore, such a fear stems from the tight financial and political ties which currently exist between large corporations and the GoI which highlights the plight of the farmers.
In addition, the new laws do not require the contracts to be written up and they prohibit farmers from taking a company to court if it violates their contract and they are unable to procure any sort of legal proof to defend their case. Furthermore, the laws were rammed through during the pandemic without allowing for regular parliamentary procedure, or consultations with any farmer organizations—undermining their perceived legitimacy.
The protests have witnessed a rapid deterioration of tensions in recent months as the GoI has ordered the suspension of Twitter accounts that support the farmers or criticize the government’s treatment of them. Journalists have been arrested; the government has intermittently cut off electricity, water, and internet access to the 3 protest camps; and 155 farmers have already lost their lives while braving water cannons, tear gas, and baton charges. Moreover, Pop superstar Rihanna, and Swedish climate change crusader Greta Thunberg among other famous personalities have all tweeted in support of the farmers which drew a rebuke from India's foreign ministry calling it “...neither accurate nor responsible.” In addition, the farmers have refused to call off the protest despite the recent surge in COVID-19 cases in India which highlights the importance of the farmers’ plea and its potential repercussions.
As the GoI remains steadfast in its stance, the important takeaway from the protests is surrounding the future of democracy and liberalism in India. The protests shed light upon the conviction of the Indian population to resist being subjected to vulnerability and oppression. And, as an increasing number of MNC’s seek alternative countries for investments, after growing distrustful towards China, the GoI should also look to form a favorable impression of the Indian economy around the world. While the government's belief that farmers' standards of living can be largely improved by the role of the private sector is certainly correct, such a process must be enacted thoughtfully and democratically especially since 50% of the Indian population is currently employed in the agricultural sector.
Written by Aryaman Verma, Student at NPS International School