Opinion Bitter pill

An article in CPM journal People’s Democracy says that the tough business environment in developed countries is forcing many MNCs to embark on multiple processes to dominate the pharma sector. Many of them,who had enjoyed patent monopoly,are threatened by the expiry of patents for their blockbuster drugs,it says,causing them to eye India whose pharma industry is the world’s fourth-largest,in terms of the quantum of medicines manufactured. These MNCs are also eyeing the export market of the Indian companies and increasing their influence in the non-patented medicine area by forming strategic alliances with large Indian companies.

“Greenfield FDI investment can help build the base of a country provided it comes in areas of technology assimilation and diffusion. But this happens only when manufacturing activities are undertaken by the MNCs. If they are more interested in selling imported drugs and drugs manufactured by others in India,obviously the question of advancement in technological progress does not arise,” it says.

The article says that the government should establish certain measures in the people’s interest — including a strict price control regime to prevent reckless profiteering,the liberal use of compulsory licence,particularly by using public sector firms in manufacturing medicines,abolition of loan-licence manufacturing and an appropriate policy for encouraging bulk drug manufacturing by Indian companies. Instead of the automatic approval of FDI,it says that the Foreign Investment Promotion Board should restrict foreign shareholding up to 26 per cent.

Chain reaction

ANOTHER article in People’s Democracy focuses on first anniversary of the Fukushima disaster. It argues that the “cosy relationship” between the nuclear industry and its regulators in Japan had led to all warnings (including those of earthquakes and tsunamis) being ignored — and that a similar situation exists in India.

“[The Indian nuclear energy programme,as observed in Japan,suffers from a similar combination of technology hubris and cohabitation between the regulator and the nuclear plants. In India,[the AERB is still a part of the Atomic Energy Commission and even in the new act introduced in Parliament,it will be subservient to the commission,” it notes.

With the Left having extended moral support to the protests against nuclear plants,the article discusses Prime Minister Manmohan Singh’s remarks about protesters at Koodankulam. “Virtually calling all opponents of the plant as foreign agents… does not do justice to the complexity of the issues surrounding nuclear energy in the country… The government does not appear to have any serious intention of discussing the nuclear energy programme or the safety of nuclear plants. Instead,the dreaded ‘foreign hand’ is being paraded to explain away the questions that are being raised on nuclear energy. The foreign hand charge must make strange reading,that too of an American hand,coming as it does from a government that has surpassed even the BJP-led NDA government in its love for the US,” it says.

The article says that the nuclear energy issue needs an open discussion — not only with regards to safety but also costs. “It beats all understanding why the cost of nuclear energy from Koodankulam and Jaitapur should be shrouded in such secrecy… It is precisely this mysterious secrecy that has created distrust for nuclear energy,” it concludes.

UPA in ICU

THE editorial in CPI weekly New Age focuses on the state of the Indian economy in the context of the UPA’s troubles — the latest being the resignation of the railway minister.

“It is not just the railways that is in the ICU,the entire economy is there. The aviation sector is in a total mess. Industrial production is continuously declining. The government is cheering up with the change in indexes on a monthly basis whereas the economy is on the decline on a long-term basis. And that is the problem,which the ruling combination at the Centre is not ready to visualise,” it says.

It also says that the uncertainty about the UPA 2’s future has caused smaller constituents to blackmail the government to the extent possible,led by Mamata Banerjee.

“In such a dangerous situation,in place of falling prey to the intrigues of this or that party to distract people’s attention from the basic socio-economic issues,the concentration needs to be on building mass movements on price rise,unemployment,growing economic disparity,selling of national assets under the garb of disinvestment of PSUs,the threat to the democratic and trade union rights and of course,the all-pervasive corruption,” it concludes.