Page 1
NON-PARTY ARENA
Politics in the modem times is studied as a process taking
place in a social environment rather than as an aggregate of the
formal institutions of the State. According to David Easton, politics
is concerned with authoritative allocation of values for a society.
Political parties, as ideologically organised large groups of people
are directly involved in the struggle for power. Each political party
tries to capture power through elections. Besides these there are
INTRODUCTION
Page 2
NON-PARTY ARENA
Politics in the modem times is studied as a process taking
place in a social environment rather than as an aggregate of the
formal institutions of the State. According to David Easton, politics
is concerned with authoritative allocation of values for a society.
Political parties, as ideologically organised large groups of people
are directly involved in the struggle for power. Each political party
tries to capture power through elections. Besides these there are
INTRODUCTION
several pressure and interest groups which try to secure their
interests by influencing the formulation and administration of public
policy. Political participation in India has been transformed in many
ways since the 1960s. New social groups have entered the political
arena and begun to use their political resources to shape the
political process. This chapter discusses the role of business
class, trade union organisations, co-operative sector; farm
res'agitations, in the political process of Maharashtra.lt also
examines some of the civil society initiatives in Maharashtra.
BUSINESS CLASS IN MAHARASHTRA
Among a variety of interest groups of the business, trade and
commerce are regarded as institutional interest groups, which
perform the function of interest articulation, They have sir
usational base, enormous resources and capability to
influence the decision making process. The nexus between the
business class and the political class has become an established
practice in liberal democracies all over the world. The elections
have become expensive and require political finance and
business is willing to finance elections on its own terms. The
expression business class, in the traditional sense would
include those engaged in trade, commerce and industry. But in
the present context it also includes unorganised sector,
multinational corporations and global capitalism.
.
2. Relationship between Business and, Politics:
The relations of the business class with the political class
during the colonial era were cordial.. The Marwari Rahat Sangh,
The Indian Chamber of Commerce, business houses like Birla and
Bajaj had expressed solidarity with the nationalist movement.
However, neither had they attempted to use the Congress nor
did the Congress leadership allowed the party to be used by any
particular class. The pattern of relationship between the business
and politics in the post-independence period has undergone
significant change. The business class has emerged as an
agehcy of political finance and thereby, breeding political corruption.
Different aspects of the evolving relationship between the business
and politics can be analysed in the following manner.
a) Business as an Interest Group-The articulation of interests is a
legitimate activity undertaken by the various sections of population
including the business class in a democracy. The Indian Merchants
Chamber was established in Bombay in 1907 .Prominent
leaders like Dadabhai Naoroji, Dinshaw Wacha, Purushottam Das
Thakker etc had close relations with the Indian trading community as
well as the national movement. It supported the Swadeshi
Movement. Besides in the Marathi speaking areas of Bombay
Page 3
NON-PARTY ARENA
Politics in the modem times is studied as a process taking
place in a social environment rather than as an aggregate of the
formal institutions of the State. According to David Easton, politics
is concerned with authoritative allocation of values for a society.
Political parties, as ideologically organised large groups of people
are directly involved in the struggle for power. Each political party
tries to capture power through elections. Besides these there are
INTRODUCTION
several pressure and interest groups which try to secure their
interests by influencing the formulation and administration of public
policy. Political participation in India has been transformed in many
ways since the 1960s. New social groups have entered the political
arena and begun to use their political resources to shape the
political process. This chapter discusses the role of business
class, trade union organisations, co-operative sector; farm
res'agitations, in the political process of Maharashtra.lt also
examines some of the civil society initiatives in Maharashtra.
BUSINESS CLASS IN MAHARASHTRA
Among a variety of interest groups of the business, trade and
commerce are regarded as institutional interest groups, which
perform the function of interest articulation, They have sir
usational base, enormous resources and capability to
influence the decision making process. The nexus between the
business class and the political class has become an established
practice in liberal democracies all over the world. The elections
have become expensive and require political finance and
business is willing to finance elections on its own terms. The
expression business class, in the traditional sense would
include those engaged in trade, commerce and industry. But in
the present context it also includes unorganised sector,
multinational corporations and global capitalism.
.
2. Relationship between Business and, Politics:
The relations of the business class with the political class
during the colonial era were cordial.. The Marwari Rahat Sangh,
The Indian Chamber of Commerce, business houses like Birla and
Bajaj had expressed solidarity with the nationalist movement.
However, neither had they attempted to use the Congress nor
did the Congress leadership allowed the party to be used by any
particular class. The pattern of relationship between the business
and politics in the post-independence period has undergone
significant change. The business class has emerged as an
agehcy of political finance and thereby, breeding political corruption.
Different aspects of the evolving relationship between the business
and politics can be analysed in the following manner.
a) Business as an Interest Group-The articulation of interests is a
legitimate activity undertaken by the various sections of population
including the business class in a democracy. The Indian Merchants
Chamber was established in Bombay in 1907 .Prominent
leaders like Dadabhai Naoroji, Dinshaw Wacha, Purushottam Das
Thakker etc had close relations with the Indian trading community as
well as the national movement. It supported the Swadeshi
Movement. Besides in the Marathi speaking areas of Bombay
and CP and Berar Marwari Chamber of Commerce (1914),
Maharashtra Chamber of Commerce (1927), Vidarbha Camber of
Commerce (1933) and Maratha Chamber of Commerce were
working. The Act of 1935 provided 11 seats for the commercial
and industrial interest in the Federal Assembly and 7 seats in the
Bombay Legislative Assembly. The Indian Constitution
discontinued this practice.
Maharashtra being the highly indusrialised State and Mumbai
being the commercial capital of India, the business community is
well organised. Besides the numerous Chambers of Commerce
there are more than 500 Industry Associations, Regional
Associations of Trade and Industry, Export Promotional Councils
and other professional bodies. The Government holds regular
consultations with the business interest by appointing their
;:ominees on the advisory committees like - Sales Tax Advisory
Council. Export Import Advisory Committee etc.Before budget the
chambers undertake newspaper campaigns, organise
seminars and mobilize public opinion.
In Maharashtra .the Association and organizations of
business class are influential pressure groups .Their annual
sessions are addressed by the Chief Minister, the Finance
Minister, the Commerce Minister etc. Such consultations, face to
face dialogue and interactions make negotiable settlement
possible rather than business and trade coming out in the street.
b) Business Class and Political Party- After independence, the
former rulers of the princely state's, the rural elite adversely affected
by the Congress party's land reforms and a section of business
class which advocated economic liberalisation supported the
Swatantra Party, which was founded in 1956 by C
Rajgopalachari. Its performance in election was poor. It was
dissolved with the formation of Janata Parry in 1977.In Maharashtra
the Panchayati Rajya Institutions and the Congress Party (also
the NCP) machinery is controlled by the sugar cooperative lobby.
c) Business Class
•
as Political Financer- Political parties need
money for organisation and mobilising public opinion and
contesting elections. Traditionally, political parties in India have
been financed through private donations. In 1985, Rajiv , Gandhi
Government amended the law permitting the companies to
contribute up to 5% of their average three years net profits for
political purposes. The Election and Other Related Laws
(Amendment) Act, 2003 aimed to legitimisp the political funding and
to bring corporate funding and political parties under the taxation
regime by offering tax incentives. However, most parties prefer to
fund parties clandestinely for a variety of reasons- on account
.
of
the black economy, for fear of retribution from rival parties, and as a
Page 4
NON-PARTY ARENA
Politics in the modem times is studied as a process taking
place in a social environment rather than as an aggregate of the
formal institutions of the State. According to David Easton, politics
is concerned with authoritative allocation of values for a society.
Political parties, as ideologically organised large groups of people
are directly involved in the struggle for power. Each political party
tries to capture power through elections. Besides these there are
INTRODUCTION
several pressure and interest groups which try to secure their
interests by influencing the formulation and administration of public
policy. Political participation in India has been transformed in many
ways since the 1960s. New social groups have entered the political
arena and begun to use their political resources to shape the
political process. This chapter discusses the role of business
class, trade union organisations, co-operative sector; farm
res'agitations, in the political process of Maharashtra.lt also
examines some of the civil society initiatives in Maharashtra.
BUSINESS CLASS IN MAHARASHTRA
Among a variety of interest groups of the business, trade and
commerce are regarded as institutional interest groups, which
perform the function of interest articulation, They have sir
usational base, enormous resources and capability to
influence the decision making process. The nexus between the
business class and the political class has become an established
practice in liberal democracies all over the world. The elections
have become expensive and require political finance and
business is willing to finance elections on its own terms. The
expression business class, in the traditional sense would
include those engaged in trade, commerce and industry. But in
the present context it also includes unorganised sector,
multinational corporations and global capitalism.
.
2. Relationship between Business and, Politics:
The relations of the business class with the political class
during the colonial era were cordial.. The Marwari Rahat Sangh,
The Indian Chamber of Commerce, business houses like Birla and
Bajaj had expressed solidarity with the nationalist movement.
However, neither had they attempted to use the Congress nor
did the Congress leadership allowed the party to be used by any
particular class. The pattern of relationship between the business
and politics in the post-independence period has undergone
significant change. The business class has emerged as an
agehcy of political finance and thereby, breeding political corruption.
Different aspects of the evolving relationship between the business
and politics can be analysed in the following manner.
a) Business as an Interest Group-The articulation of interests is a
legitimate activity undertaken by the various sections of population
including the business class in a democracy. The Indian Merchants
Chamber was established in Bombay in 1907 .Prominent
leaders like Dadabhai Naoroji, Dinshaw Wacha, Purushottam Das
Thakker etc had close relations with the Indian trading community as
well as the national movement. It supported the Swadeshi
Movement. Besides in the Marathi speaking areas of Bombay
and CP and Berar Marwari Chamber of Commerce (1914),
Maharashtra Chamber of Commerce (1927), Vidarbha Camber of
Commerce (1933) and Maratha Chamber of Commerce were
working. The Act of 1935 provided 11 seats for the commercial
and industrial interest in the Federal Assembly and 7 seats in the
Bombay Legislative Assembly. The Indian Constitution
discontinued this practice.
Maharashtra being the highly indusrialised State and Mumbai
being the commercial capital of India, the business community is
well organised. Besides the numerous Chambers of Commerce
there are more than 500 Industry Associations, Regional
Associations of Trade and Industry, Export Promotional Councils
and other professional bodies. The Government holds regular
consultations with the business interest by appointing their
;:ominees on the advisory committees like - Sales Tax Advisory
Council. Export Import Advisory Committee etc.Before budget the
chambers undertake newspaper campaigns, organise
seminars and mobilize public opinion.
In Maharashtra .the Association and organizations of
business class are influential pressure groups .Their annual
sessions are addressed by the Chief Minister, the Finance
Minister, the Commerce Minister etc. Such consultations, face to
face dialogue and interactions make negotiable settlement
possible rather than business and trade coming out in the street.
b) Business Class and Political Party- After independence, the
former rulers of the princely state's, the rural elite adversely affected
by the Congress party's land reforms and a section of business
class which advocated economic liberalisation supported the
Swatantra Party, which was founded in 1956 by C
Rajgopalachari. Its performance in election was poor. It was
dissolved with the formation of Janata Parry in 1977.In Maharashtra
the Panchayati Rajya Institutions and the Congress Party (also
the NCP) machinery is controlled by the sugar cooperative lobby.
c) Business Class
•
as Political Financer- Political parties need
money for organisation and mobilising public opinion and
contesting elections. Traditionally, political parties in India have
been financed through private donations. In 1985, Rajiv , Gandhi
Government amended the law permitting the companies to
contribute up to 5% of their average three years net profits for
political purposes. The Election and Other Related Laws
(Amendment) Act, 2003 aimed to legitimisp the political funding and
to bring corporate funding and political parties under the taxation
regime by offering tax incentives. However, most parties prefer to
fund parties clandestinely for a variety of reasons- on account
.
of
the black economy, for fear of retribution from rival parties, and as a
bribe for favours received .Of late a further shift is seen
fromindividual companies to the federating organisations-
funds from the Indian Sugar Manufacturers Association (ISMA)
rather from individual sugar mills. The multinational Corporations are
fast emerging as the principal financer of political parties. There are
allegations of kick back money paid for every order that is secured
from the Government.
After independence the basic goals of the Indian polity
included economic development with equity and social justice. The
New Industrial Policy of 1991 and the subsequent emphasis on
liberalisation and privatisation of essential services are
indications of march towards corporate capitalism. The concept of
Special Economic Zones (SEZs) is one such examples The
interests of the corporates are being advanced at the cost
of farmers. In Maharashtra a large number of SEZs have been
approved and the Government has acquired land for their
development in spite of the protests from the farmers. The builder
lobby and sugar lobby have been able to protect their interests. In
the era of globalisation, economic liberalisation and privatisation the
corporate sector and business class are successfully influencing
the political decision making process in their favour
LABOUR: ORGANISED AND
UNORGANISED WORKERS
The primary function of a trade union is to protect and fight for
the rights of workers in the current norms of famess, equality and
social justice. Working class implies the wage earners
whoexchange their labour for the wages or salary. Article 19 of
the Indian Constitution guarantees freedom to form unions. The Trade
Union Act of 1926 also provides for the formation of trade unions by
workers for redressal of their grievances.
History:
Narayan Meghaji Lokhande an associate of Phule in the Satya
Shodhak Movement established "Mill Hands Association", the first
trade union in Bombay for the welfare of the workers. National
leaders like Tilak and .Gandhi supported the cause of workers.
Inspired by the Russian Revolution of 1917, the All India Trade
Union Congress (AITUC) was formed in 1920 under the leadership
of the Congress party. It was the first national federation of trade
unions. The Communist party of India was established in 1924.Its
Bombay based leaders like S. A. Dange N. M. Joshi etc. were
active in the textile workers unions. The Communists managed to
gain control over the AITUC, as it enjoyed the support of the
Proletariat class of Maharashtra.
Page 5
NON-PARTY ARENA
Politics in the modem times is studied as a process taking
place in a social environment rather than as an aggregate of the
formal institutions of the State. According to David Easton, politics
is concerned with authoritative allocation of values for a society.
Political parties, as ideologically organised large groups of people
are directly involved in the struggle for power. Each political party
tries to capture power through elections. Besides these there are
INTRODUCTION
several pressure and interest groups which try to secure their
interests by influencing the formulation and administration of public
policy. Political participation in India has been transformed in many
ways since the 1960s. New social groups have entered the political
arena and begun to use their political resources to shape the
political process. This chapter discusses the role of business
class, trade union organisations, co-operative sector; farm
res'agitations, in the political process of Maharashtra.lt also
examines some of the civil society initiatives in Maharashtra.
BUSINESS CLASS IN MAHARASHTRA
Among a variety of interest groups of the business, trade and
commerce are regarded as institutional interest groups, which
perform the function of interest articulation, They have sir
usational base, enormous resources and capability to
influence the decision making process. The nexus between the
business class and the political class has become an established
practice in liberal democracies all over the world. The elections
have become expensive and require political finance and
business is willing to finance elections on its own terms. The
expression business class, in the traditional sense would
include those engaged in trade, commerce and industry. But in
the present context it also includes unorganised sector,
multinational corporations and global capitalism.
.
2. Relationship between Business and, Politics:
The relations of the business class with the political class
during the colonial era were cordial.. The Marwari Rahat Sangh,
The Indian Chamber of Commerce, business houses like Birla and
Bajaj had expressed solidarity with the nationalist movement.
However, neither had they attempted to use the Congress nor
did the Congress leadership allowed the party to be used by any
particular class. The pattern of relationship between the business
and politics in the post-independence period has undergone
significant change. The business class has emerged as an
agehcy of political finance and thereby, breeding political corruption.
Different aspects of the evolving relationship between the business
and politics can be analysed in the following manner.
a) Business as an Interest Group-The articulation of interests is a
legitimate activity undertaken by the various sections of population
including the business class in a democracy. The Indian Merchants
Chamber was established in Bombay in 1907 .Prominent
leaders like Dadabhai Naoroji, Dinshaw Wacha, Purushottam Das
Thakker etc had close relations with the Indian trading community as
well as the national movement. It supported the Swadeshi
Movement. Besides in the Marathi speaking areas of Bombay
and CP and Berar Marwari Chamber of Commerce (1914),
Maharashtra Chamber of Commerce (1927), Vidarbha Camber of
Commerce (1933) and Maratha Chamber of Commerce were
working. The Act of 1935 provided 11 seats for the commercial
and industrial interest in the Federal Assembly and 7 seats in the
Bombay Legislative Assembly. The Indian Constitution
discontinued this practice.
Maharashtra being the highly indusrialised State and Mumbai
being the commercial capital of India, the business community is
well organised. Besides the numerous Chambers of Commerce
there are more than 500 Industry Associations, Regional
Associations of Trade and Industry, Export Promotional Councils
and other professional bodies. The Government holds regular
consultations with the business interest by appointing their
;:ominees on the advisory committees like - Sales Tax Advisory
Council. Export Import Advisory Committee etc.Before budget the
chambers undertake newspaper campaigns, organise
seminars and mobilize public opinion.
In Maharashtra .the Association and organizations of
business class are influential pressure groups .Their annual
sessions are addressed by the Chief Minister, the Finance
Minister, the Commerce Minister etc. Such consultations, face to
face dialogue and interactions make negotiable settlement
possible rather than business and trade coming out in the street.
b) Business Class and Political Party- After independence, the
former rulers of the princely state's, the rural elite adversely affected
by the Congress party's land reforms and a section of business
class which advocated economic liberalisation supported the
Swatantra Party, which was founded in 1956 by C
Rajgopalachari. Its performance in election was poor. It was
dissolved with the formation of Janata Parry in 1977.In Maharashtra
the Panchayati Rajya Institutions and the Congress Party (also
the NCP) machinery is controlled by the sugar cooperative lobby.
c) Business Class
•
as Political Financer- Political parties need
money for organisation and mobilising public opinion and
contesting elections. Traditionally, political parties in India have
been financed through private donations. In 1985, Rajiv , Gandhi
Government amended the law permitting the companies to
contribute up to 5% of their average three years net profits for
political purposes. The Election and Other Related Laws
(Amendment) Act, 2003 aimed to legitimisp the political funding and
to bring corporate funding and political parties under the taxation
regime by offering tax incentives. However, most parties prefer to
fund parties clandestinely for a variety of reasons- on account
.
of
the black economy, for fear of retribution from rival parties, and as a
bribe for favours received .Of late a further shift is seen
fromindividual companies to the federating organisations-
funds from the Indian Sugar Manufacturers Association (ISMA)
rather from individual sugar mills. The multinational Corporations are
fast emerging as the principal financer of political parties. There are
allegations of kick back money paid for every order that is secured
from the Government.
After independence the basic goals of the Indian polity
included economic development with equity and social justice. The
New Industrial Policy of 1991 and the subsequent emphasis on
liberalisation and privatisation of essential services are
indications of march towards corporate capitalism. The concept of
Special Economic Zones (SEZs) is one such examples The
interests of the corporates are being advanced at the cost
of farmers. In Maharashtra a large number of SEZs have been
approved and the Government has acquired land for their
development in spite of the protests from the farmers. The builder
lobby and sugar lobby have been able to protect their interests. In
the era of globalisation, economic liberalisation and privatisation the
corporate sector and business class are successfully influencing
the political decision making process in their favour
LABOUR: ORGANISED AND
UNORGANISED WORKERS
The primary function of a trade union is to protect and fight for
the rights of workers in the current norms of famess, equality and
social justice. Working class implies the wage earners
whoexchange their labour for the wages or salary. Article 19 of
the Indian Constitution guarantees freedom to form unions. The Trade
Union Act of 1926 also provides for the formation of trade unions by
workers for redressal of their grievances.
History:
Narayan Meghaji Lokhande an associate of Phule in the Satya
Shodhak Movement established "Mill Hands Association", the first
trade union in Bombay for the welfare of the workers. National
leaders like Tilak and .Gandhi supported the cause of workers.
Inspired by the Russian Revolution of 1917, the All India Trade
Union Congress (AITUC) was formed in 1920 under the leadership
of the Congress party. It was the first national federation of trade
unions. The Communist party of India was established in 1924.Its
Bombay based leaders like S. A. Dange N. M. Joshi etc. were
active in the textile workers unions. The Communists managed to
gain control over the AITUC, as it enjoyed the support of the
Proletariat class of Maharashtra.
On the eve of independence the Congress leaders were of
the view that the working class would have to play a crucial role in
the planned development of the country. As a result the Indian
National Trade Union Congress (INTUC) was formed in 1947. Its
formation was the first step in the direction of government controlling
the labuor movement.lnspite of good intentions; such control over
trade union movement did not help the cause of workers. They
became too dependent on the State for protective legislation, their
implementation and even in solving their disputes.
Along with the formation of the Socialist party the Hind
Majdoor Sabha was established in 1948.The Revolutionary
Socialists established the United Trade Union Congress in
1949.The split in the Socialist party led to the formation of the Hind
Majdoor Panchayat by the followers of Dr Lohiya.The split in the
Communist Party of India (CPI) in 1964 led to the formation of the
Centre for Indian Trade Union (CITU).The Bhartiya Jana Sangh had
its labour front in the form of Bhartiya Majdoor Sangh. In
Maharashtra the Shiv Sena a party of the sons of the soil formed its
labour wing of the white collar class by the name of Sthaniya
Lokadhikar Samiti and the blue collar class by the name of
Bhartiya Kamgar Sena and acquired mass base among the
working class of Mumbai at the cost of the Communist party.
The march of Shiv Sena was halted by Dr Datta Samant by forming
the Kamgar Aghadi. The strike of textile workers in Mumbai in 1982-
83 was led by him and lasted for 18 months. However despite the
display of unity by the workers the strike failed. The Government
extended total support to the employer. There has been increase
in the number of independent unions led by the leaders like Gulab
Joshi and Mehta. The Maharashtra Navnirman Sena formed in
2006 also has its trade union named Maharashtra Navnirman
Kamgar Sena.
Nature of Trade Union Movement:
a) The most important feature of the movement in the post-
independence period has been the increase in their numbers.
The percentage of the organised sector workers is merely
8%.The workers of small scale industries and unorganised
sector have not been totally brought within the purview of the trade
union. However, there are indications of workers being organized in
beedi, construction, fisheries, forestry, home based workers etc., for
example massive rallies being organised recently in Mumbai and
Nashik for the rights of the domestic workers.
b) The trade union movement which was fairly united during the
colonialrule stands badly divided. Very often, inter-union rivalries are
stronger than the conflicts between the management and labour.
The increase in their numbers makesit difficult for labour to gr
proper representation in the national policy making bodies such
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