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3.1 Principles
A deregulated financial system is incompatible with social and
environmental sustainability. In order to address social and
environmental needs, the Indian Government must interact with
the international financial system on its own terms. This will
require:
a) national economic sovereignty (ie democratic control of the
economy, not market control;
b) domestic funding of government deficits;
c) an effective system of foreign exchange management;
d) reduction in foreign ownership and debt; and
e) movement towards a sustainable financial system which enables
the real economy to be maintained decade after decade at its
full employment potential without recurring inflation and
over-indebtedness.
3.2 Goals
The objectives of the policy include:
a) reduction of foreign ownership of Indian enterprise;
b) more equitable employment and income distribution;
c) control of interest rates and debt;
d) low inflation;
e) full employment underpinned by a Guaranteed Adequate Income;
f) well funded public infrastructure;
g) appropriate economic monitoring, measurement, and accounting
practices;
h) reduction of private and public sector debt.
3.3 Short Term Targets
a) detailed monitoring and regulation of foreign capital;
b) investment of foreign capital in import replacement
industries and enterprises consistent with national
environmental and social priorities; and
c) strict monitoring of export and import prices to reduce
transfer pricing by multinationals.
The Indian National Green Party will support the establishment
and use of community controlled investment facilities which
direct investments to eliminate reliance on foreign borrowings
by both the public and private sectors. Investments in ethical
enterprises which emphasise both social and environmental
sustainability will be encouraged. The Indian National Green
Party will explore a range of opportunities to assist these
measures and support:
a) campaigns encouraging citizens and organisations to place
their savings in ethical investment organisations;
b) the right of credit cooperatives to invest in productive
enterprises;
3.3.4 Inflation
The Indian National Green Party will support disaggregating the
causes of inflation so that distinctions can be made between
cost increases which are socially and environmentally
beneficial, such as including the real costs of natural
resources like water, and those which are not.