The fact that an economy, even when it experiences a higher growth rate in the capitalist segment, is saddled with an increasing unemployment rate, goes against the grain of conventional growth theory as indeed of the basic presumption underlying policymaking. In India, for instance, faced with growing misery in the midst of accelerating growth, the standard response has been that such “exclusion” will disappear if the growth rate can be further accelerated.

Against the

Union Budget 2010-11 has given a forward thrust to the neoliberal agenda in all the crucial sectors where "reforms" had been stalled.

Finance Minister Pranab Mukherjee addressing the media after the Economic Survey 2009-10 was tabled in Parliament on February 25.

As the neoliberal edifice crumbles in the face of rising prices, a rationing regime becomes the only way of protecting the poor from their impact. Murli Deora, Petroleum Minister, and P. Chidambaram, Finance Minister, at a function in New Delhi.

The inflation in food prices of the early 1970s that arose out of excess demand for cereals disappeared in later years not because of any significant supply augmentation, but because it was substituted by an income deflation on the working people, including the peasantry, over large tracts of the world. This income deflation, brought about by the imposition of neoliberal policies, compressed demand and kept food and other commodity prices in check. But over the longer term, income deflation has undermined the very viability of peasant agriculture, adversely affecting supply.

It is clear from Budget 2008 that the UPA, instead of abandoning its neoliberal agenda in an election year, has decided to stick to it resolutely. R.V. MOORTHY