Wednesday, August 24 2005 19:27 Hrs (IST) - World Time -

New Delhi: Advocating a 'course correction' in the economic reforms policy so that it benefits the poor, the Left parties today (Aug 24, 2005) warned that inequitable growth could lead to social unrest.

"There is a need for course correction, a need to review the reforms from the viewpoint of the poor and the marginalized, otherwise such reforms will lead to social strife," Communist Party of India (CPI) National Secretary D Raja said addressing a seminar on 'Poverty Alleviation and Economic Reforms" in New Delhi organised by ASSOCHAM.

"It is not that the Left does not want creation of wealth, the only question is how its equitable distribution is taken care of. Economic development will have to take place along with social justice," he said.

Addressing the captains of industry, Communist Party of India (CPI) Marxist (M) Politburo member Sitaram Yechuri said poverty eradication was economically beneficial, as it would expand their market.

He said production and consumption level of food grains had fallen since economic reforms began in the 1990s and today it stood where it was during the Second World War.

"Reforms have widened inequity, but it cannot be done away with. However, a measure of regulation must be introduced," he said.

Recalling that more than a thousand farmers had committed suicide after economic reforms began in the country, Raja said problems had arisen as the process had been taken up because of a 'crisis and according to the diktats of some other countries'.