PyramidHead
Contributor
This week, 150 million Indians went on strike to protest Prime Minister Narendra Modi’s anti-trade union policies.
(This is why "just start your own worker-managed cooperative and see if it catches on" is not a valid nor comprehensive response to the lack of democracy in the workplace. It assumes a leveled playing field that has not been skewed by state policies that favor private investment and the concentration of wealth. Economic and social systems do not compete with one another in a vacuum.)
Since India won independence in 1947, it has pursued a “mixed” path of national development. Important sections of the economy remained in government hands, with public sector firms formed to deliver essential industrial goods to enhance the development goals of the country. The agricultural sector was also organized so that the government provided credit to farmers at subsidized rates and the government set procurement prices to ensure that farmers continued to grow essential food crops.
All this changed in 1991, when the government began to “liberalize” the economy, privatize the public sector, reduce its role in the agricultural market and welcome foreign investment. Growth was now premised on the rate of return on financial investment and not on the investment in people and their futures. The new policy orientation—liberalization—has grown the middle class and earned the wealthy fabulous amounts of money. But it has also created an agrarian crisis and produced a precarious situation for workers.
The government, since 1991, knew that it was not enough to privatize the public sector and to sell off precious public assets to private hands. It had to do two more things.
First, it had to make sure that public sector enterprises would fail and would then lose legitimacy. The government starved these public sector firms of funds and watched them swing in the wind. Without investment, these firms were unable to make improvements and so began to deteriorate. Their demise validated the argument of liberalization, although their demise had been manufactured by an investment strike.
Second, the government pushed to break trade union power by using the courts to undermine the right to strike and by using the legislature to amend the trade union laws. Weaker unions would mean demoralized workers, which would mean that workers would now be utterly at the mercy of the private firms.
(This is why "just start your own worker-managed cooperative and see if it catches on" is not a valid nor comprehensive response to the lack of democracy in the workplace. It assumes a leveled playing field that has not been skewed by state policies that favor private investment and the concentration of wealth. Economic and social systems do not compete with one another in a vacuum.)