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Insurance issue triggers unimaginable realignments Left, Right and Centre

Amberish K Diwanji in New Delhi

The unimaginable might be happening. The parties on the extreme Right and Left are ganging up to oppose the onward rush of globalisation while the two leading political parties of the country show work almost in tandem on specific issues of globalisation.

The Rashtriya Swayamsevak Sangh, its affiliate the Swadeshi Jagran Manch, the Communist Party of India-Marxist, and the Communist Party of India are teaming up on sensitive issues such as opening the insurance sector and the patents bill. On these issues, they are pitted against the combined might of the Bharatiya Janata Party and its allies in the government, and the Congress, the largest Opposition party in the Lok Sabha.

According to sources, a key figure in putting together this unlikely front is K R Malkani, BJP member of the Rajya Sabha and a strong opponent of the Insurance Regulatory Authority bill that was introduced in the Lok Sabha yesterday.

Malkani attempted to play down the coming together of the different parties in opposition to the BJP-led government. "There is no front being formed," he told Rediff On The Net, "but since we all are against the move to allow foreign equity into the insurance sector, we are planning to counter the government's moves."

Other key figures involved in the coming together of this front are RSS senior leader K Sudarshan and Communist ideologue and former West Bengal minister Ashok Mitra, said the source.

Asked how he planned to oppose the bill which, if put to vote in the Lok Sabha, would simply sail through, he said, "We will oppose the bill outside Parliament and definitely our actions will find an echo inside. This will help raise opposition to the bill in the Lok Sabha."

With Prime Minister Atal Bihari Vajpayee categorically declaring that his government would push ahead with economic reforms, the BJP's economic line is now no different from that of the Congress, which was the first party to suggest opening the insurance sector. Then the move had been strongly opposed by the BJP and the Communists, and also by many of the Third Front parties.

Later, when the United Front government took office, the attempt to introduce the insurance bill was defeated after the BJP and Communists opposed the move. At that time, the BJP had sworn allegiance to the economic policy of swadeshi (economic nationalism). Incidentally, the many parties of the now-defunct UF too are divided on the insurance bill.

The decision of Vajpayee to introduce the very same bill that his party had so vociferously opposed barely two years ago deeply upset many of the party members. However, after a party meeting, the members agreed to back the Cabinet's decision to support the IRA bill.

But it is clear that certain BJP members have not been able to bring themselves about to the changed position. Malkani is reportedly deeply upset at the turnabout, though he has said that he will abide by his party wishes.

But he insists, "The insurance bill's introduction is the desire of the Cabinet; it is not as per the wishes of the party."

The RSS and the SJM too have declared their displeasure at the move to allow foreign participation in the insurance sector. The SJM even held a protest rally, but backed down after the government assured it that foreign equity would be limited to a minority stake.

Incidentally, the Communists are against allowing any private participation and want the government-owned Life Insurance Corporation and General Insurance Corporation to retain their monopolistic position in the country. The LIC and GIC workers have struck work today against the bill.

The IRA bill was introduced and immediately referred to a joint select committee of Parliament, as suggested by the Congress. This effectively postpones any discussion on the bill till the next session, or beyond. Malkani hinted as much when he said, "Let us see what happens to the bill. It will take quite some time before it returns to Parliament."

Another issue that is likely to raise a storm in Parliament is the Patents Amendment bill, especially the controversial aspect on ERM (exclusive marketing rights). Even on this issue, the BJP-led government and the Congress find little difference, while the RSS, SJM and Communists are opposed to it.

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