Indian National Green Party


National Policy-Finance, Debt Management and Inflation

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.