India's super profit; Manipur mortgaged
- Part 1 -

Campaign for Peace & Democracy (Manipur) *

Introduction

Spectre of economic crisis looms over Manipur. It is a crisis characterised by:
(a) dependence on import of commodity and money,
(b) capital accumulation at the market dominantly controlled by Indian monopolists that drain wealth of the people,
(c) corruption, misappropriation and mismanagement of fund by state mercenaries and
(d) comparative underdevelopment that has serious repercussion upon peasants and workers.

The crisis is emanated as a result of Manipur's unfavourable balance of exchange with the outside world. In other words, annexation of Manipur by the capitalist Dominion of India in 1949 and a corresponding finance imperialism superimposed since then have destroyed material premises of sustainable development, but further impoverishment and dependence.

While state terrorism, e.g., Armed Forces Special Powers 1958, camouflaged under the propagandist 'security cover' has been a primary threat to rights to life and remains a challenging issue; the political economy of such terrorism is better explained by the super profit agenda of the Indian ruling class in Manipur.

Indian National paradox

India had neither been a nation nor federation of peoples based on voluntary unionism. Firstly, material condition for a common national psychological expression manifested in cultural way of life has been missing.

Remnants of semi-feudalism and communal, racial and nationality questions remains largely unresolved. Secondly, present Indian Union is a mechanistically constituted political community forcibly through political manoeuvring and military forces.

In the Northeast context, the Indian ruling class, through executing terror tactics and unjust policies, is the de facto inheritor of the British colonial assets. Consistent national liberation movement in Kashmir and Northeast suggests perennial suppression of the right of self determination of nationalities. India is, therefore, neither a nation nor a democratic federation formed on the basis of voluntary unionism.

The historical courses of forcibly annexation of Manipur in 1949, border bargaining with Burma till 1953, Assam Disturbed Areas Act of 1955, Armed Forces Special Powers Act, 1958, India-China Border War of 1962, and Look East Policy since 1990s are few of the several examples that suggest for an enduring class interest of the Indian ruling class towards playing a dominant imperialist role in the Northeast region and Southeast Asia.

Precisely, Indian rulers' geo-strategic interest in the Northeast is conceptualised on the basis of the ideological framework of capitalist expansionism. It has been a threat to the political independence and economic development of nationalities or freedom yearning political communities.

The nationhood claim for India encompassing the Northeast is a paradox covering beneath its cloak class 'projects' that are primarily suppressive & exploitative at the receiving end. The economic crisis in Manipur, therefore, is a material condition of finance imperialism enforced by the Indian ruling class.

Teleological fabrication

Economic crisis in Manipur contradicts economic growth that is being projected in teleological fabrication widely articulated by the Indian rulers. For the purpose of analysis one may concentrate on 1972 as the vantage point[1]. The year 1972 is considered a vantage point primarily for the reason that the Indian state had identified statehood with political autonomy, i.e., relative economic development[2].

According to government reports Manipur is being economically integrated under Indian Five Years Plans. The growth in the number of town from 1 in 1951 to 33 in 2001 is being construed as one of the several indicators of economic growth.

Similarly, comparative analysis of Indian Five Years Plans have suggested for a steady rise in the gross estimates of expenditure or plan outlay, particularly after the fourth Five Years Plan.

• According to the Planning Commission of India, plan outlay for Manipur have increased from Rs 2 crore, to Rs 6 crore, to Rs. 12.9 crore, Rs. 30.25 crore in the first four five years plans.
• During the period after statehood in 1972 Manipur have benefited from economic programmes instituted by the North East Council[3].
• An increase in fund inflow from the Centre becomes apparent by 1980, e.g., Central assistance to Manipur was increased from Rs. 286.51 crore in the Sixth Plan, to Rs. 613.44 crore in the Seventh Plan, to Rs. 1,230.03 crore in the Eighth Plan, to Rs. 2,493.61 (agreed) in the Ninth Plan and to Rs. 2,166.42 (projected) in the Tenth Plan[4].
• Plan outlay for Manipur was increased dramatically from Rs. 30.25 crore in the fourth Five Years Plan to Rs 430.00 crore in the seventh Five Years Plan (1985-1990). It was further increased to Rs. 1787.01 crore (Expenditure) in the ninth Five Years Plan and further to Rs. 2804.00 crore (Outlay) in the tenth Five Years Plan.
• Manipur enjoys status of Special Areas, i.e., strategically important and backward. It has been financially improving through funding and finance management under various institutions such as the North Eastern Development Finance Corporation Limited (NEDFI), established on August 9, 1995 and the Ministry of Development of Northeastern Region (DONER), established in September 2001[5].
• Apart from receiving investment under Border Area Development Programme, funds & grants for Manipur are allocated through Non-Lapsable Central Pool of Resources.
• By the time an Indo-ASEAN Car Rally for promotion of international trade was held in November 2004 Manipur have been an economic focus for successful implementation of India's Look East Policy[6].