Saturday 24 November 2012

RELEVANCE OF ECONOMIC IDEAS OF GANDHI IN THE AGE OF GLOBALISATION: AN ANALYSIS THROUGH SWADESHI




My ideal is equal distribution, but as far as I can see,                                                 
 it is not to been realized, I therefore work for equitable distribution”.

               The world has traveled a long way on the path of development. During the march of life human beings have changed much and their life patterns have under gone remarkable changes. In almost every walk of life there have been significant developments which have made the world very prosperous. On the economic front also things have improved a lot. Technological developments have facilitated greater material prosperity and material progress. Economic development implies the growth of economic wealth of a nation. It is a process through which a nation improves the economic, political and social well being of its people. It can be defined as the efforts to improve the economic well being and quality of life of a community. Hence economic development may be described as a process whereby simple, low income national economies are transformed into modern industrial economies. The dominant development model of our times is economic globalization.
Globalization and its impact
     Globalization is generally understood to mean integration of the economy of the country with the world economy. It is an outcome of the set of various policies that are aimed at transforming the world towards greater interdependence and integration. It involves creation of networks and activities transcending economic, social and geographical boundaries. It is thus turning the world into one whole or creating a borderless world. Hence globalization can be seen as an opportunity in terms of greater access to global markets, high technology and increased possibility of large industries of developing countries to play an important role in the international arena.
      On the contrary, the critics of globalization argue that it is a strategy of the developed countries to expand their markets in other countries. The market driven globalization has widened the economic disparities among nations and people. In the present age of globalization, poor people as well as the underdeveloped nations are getting marginalized. It is true that global economic integration is creating opportunities for people around the world. But it is also leading to widening the gaps between the poorest and richest countries. Many of the poorest countries are marginalized from the growing opportunities of expanding international trade, investment and in the use of new technologies. This was clearly stated by Jogdand and Michael when they wrote “…while the world may be full of complex mobility and interconnections, there are also quite a number of people whose experience is marginal to, or excluded from, these movements and links. Indeed not everyone and every place participates equally in the circuits of interconnections that transverse the globe. And this, too, is the world of globalization.”1     
Therefore, it has exciting possibilities and at the same time it can lead to unprecedented miseries.
           Globalization has created a serious social crisis affecting wage workers, farmers and employees everywhere. The march of globalization adversely affected agriculture, the backbone of Indian economy. Unemployment and poverty shot up as a result of the decline of indigenous cottage and small-scale industries. A huge number of workers lost their jobs. The quality of life, especially in the rural areas declined with a steady decline of social services mainly in education and health. In this system, the government will have not much to invest in the schemes favoring the weaker sections of the society since its reliance is necessarily on market and market can never be a benefactor of the deprived classes. All these point to the fact that the world in the 21st century witnesses the global triumph of market economics, the retreat of the state, and the generation of unprecedented wealth. The need of the hour is that kind of policy that can ensure the availability of basic amenities and equal opportunities to the poorest and deprived classes also so that social equality and rights could be enjoyed by all. The benefits of development should reach the poor and all the hurdles in the path of their emancipation should be removed. Here lies the relevance of Gandhian economic principles. Gandhi’s relevance is perhaps even greater to this century than to the one in which he lived. In this paper an attempt is made to show how Gandhian economic ideals based on ethical principles can prove to be a solution to the current market economic problems faced by India.

Gandhian Economic Ideals:-
         Mahatma Gandhi was not an economist in the academic sense of the term and he did not produce a treatise or some such thing on economic system which he visualized for India. In some of his general works, lectures, letters written to, or editorials in young India and Harijan he made references to the kind of economic system which according to him was ideal for the country. Gandhian economic ideals were in a sense a logical corollary of his political and moral principles such as ‘Swaraj’, ‘Sarvodaya’, Truth and Non-violence etc .To an extent, we can say that his entire life and philosophy were based on Truth, Non-violence, dignity of labor and simplicity. Based on these wider social principles, Gandhi derived his economic ideas which if brought together would give a picture of the economic system that he visualized.
        Gandhi’s economics did not aspire to growth and accumulation, but instead to people’s ‘swaraj’ or control over their own destinies. He opposed the deployment of machines if people were out of work. He did not believe in unlimited wants, but instead reminded us that the world produces enough for the needs but not the greed of every human being. From the idea of Swaraj emerged the ideas of Swadeshi and self-sufficiency. And from the principle of Truth and Non-violence emerged a series of economic ideas like non-exploitation, non-possession, trusteeship, bread labour and so on. All these ideas, which in fact having originated under different contexts, formed the founding pillars of Gandhian economic system.
            An important ideal on which Gandhi based his economic programme was the ideal of ‘swadeshi.’ Swadeshi is a central concept in Gandhi’s economic thought. It is an eternal principle. It has emerged out of his idea of swaraj. It is in conformity with the goal of sarvodaya. It has both individual and group application. Literally, the term swadeshi means ‘one’s own country’. Gandhi noticed that the deep rooted poverty of the Indian masses was due to their departure from the swadeshi principles in the economic sphere. As a remedial measure, he asks every Indian to invite the spirit of swadeshi and help his neighbors in their needs as he helps himself. With such self-supporting and serving nature, every Indian village will become an autonomous unit.
         ‘Simple living and high thinking’, was a principle that played a significant part in Gandhi’s life. He adopted this principle much to the advantage of the nation. As a practical idealist, he found that it was in this ideal that the remedy of the ills of modern civilization lies. Modern industrialism creates in man, according to him, the desire to increase wants and acquire material wealth at the cost of human values. He suggests that simple life is the only means of attaining eternal happiness. It is because of his infallible faith in simplicity that he advocated decentralization of economy.

Departure from Gandhian Economic Ideals and the result:-
            Inspired by the ideas of Gandhi, Nehru emphasized the need for a rapid and radical but peaceful socio-economic transition. Through economic planning, Nehru wanted to establish a strong and self-reliant India with a just and social order. He adopted planning not as an end, but as a means at the “well-being and advancement of the people as a whole, at the opening out of opportunity to all and the growth of freedom and the method of co-operative organization and action”. 2
           Though Nehru gave enough attention to decentralization in the different Five Year Plans, his successors could not keep his tradition. They gradually left his way and by the time of the current Five Year Plan, we were very much diverted from the concept of decentralization. This led to an economic crisis because we were not able to achieve what we aimed through planning i.e., eradication of poverty and unemployment. The over centralization also resulted in the inefficiency of political power and corruption.
       The New economic Policy of 1991 kick started the unbalanced phase in India’s economic development. Through this policy, globalization has led to the emergence and growth of a new rich class with its love for dispensation of wealth, social power and luxuries. Multinational and transnational companies have become the major actors in international politics and economics. Prices of essential commodities, lives saving medicines and other necessities have shot up. Today, everything is for sale; Privatization has become a tool for exploiting the nature without constraint degrading the environment. Liberalization and globalization have led to unbridled consumerism, flight of capital from India, killing of local industries in the name of competition and efficiency
            We see that the new economic policy of neo-liberalization resulted in the concentration of wealth in the hands of a selected few, keeping the majority out of the development. It has created two sections within the nation. One is the liberalized India of the billionaires and the booming middle class and the other is that of the common man, helpless farmers committing suicides, disposed tribal and other marginalized folks. Liberalisation has also created an unstable economy which is evident in the current turmoil ruling the markets the world over. Altogether we can say that it is not at all an ideal model of development. Above all, the industrialization with its mechanization took away from men initiative for work and changed them into nothing but machines. It made life mechanical and artificial. The result is that man lost the zest for life. He seeks an escape by indulging in purely sensuous pursuits like drinking, gambling and the like.

Gandhian concept of Swadeshi as a solution to the economic crisis:
      Having outlined the ailment of Indian economy, we can now look how Gandhian developmental strategy can help us to solve this crisis to some extent. Gandhi held that economics and ethics cannot be separated from each other and must be studied as a whole. In the opinion of Anthony.J. Parel, “Gandhi, in his turn, re-emphasized this meaning: a sound economy is one that empowered the last and the least of society, and helped to create and develop in them the necessary capacities and moral dispositions”. 3 The principle of buying in the cheapest and selling in the dearest market was the most inhuman law of economics, for market in globalization is based on the concept of ‘buy now and pay later’. As against this Gandhiji considered economic decentralization as the fundamental principle and this is what we need today. Dr.ManMohan Singh also stood for decentralization when he said that “decentralization will be able to mobilize the grass roots knowledge and public awareness to prevent the misuse of public funds for private ends.” 4 In India, democracy can succeed only when it is built up in a grass root manner. This can be done by following the Gandhian concept of Swadeshi.

Swadeshi: an analysis
.     Gandhi realized that much of the heart rending poverty of the masses is due to the ruinous departure from swadeshi in the economic life. His thesis was that India would not have been poor if the articles of consumption had not been brought from outside India. The broad meaning of swadeshi is the use of all home made things to the exclusion of foreign things. Gandhi believes that the economic good of all lies in strictly practicing the principles of swadeshi. It is a plea for protecting village industries which enjoys abundant manpower. We have to provide food, work and employment to our immediate neighbors. Swadeshi is a doctrine employed for the protection of home industry. According to Man Mohan Choudary “the principle of swadeshi is a fundamental concept in Gandhian economic thought. It defines the relation of individual to his society and the larger world in terms of socially responsible economic behavior.” 5 Thus the practice of swadeshi would result in innumerable self supporting and self contained units meeting their primary needs locally and exchange with other units such necessary commodities that are not locally producible.
            Swadeshi spirit never allows exploitation of the raw materials of a country. It does not neglect the powerful man-power. Wasting time and money in producing goods which are unsuitable to the Indian, amounts to the negation of the swadeshi spirit. It is false swadeshi. At the same time, swadeshi does not mean boycotting foreign goods. Gandhi observes “any article is swadeshi, if it sub-serves the interest of the millions, even though the capital and talent are foreign but under effective Indian control”. 6 Swadeshi is also one of the ways of non-violence and therefore a true believer of swadeshi will not harbor any ill-feeling towards foreign things. It is not a cult of hatred but a doctrine of selfless service that has its roots in ahimsa. Gandhi would be prepared to buy from any part of the world, things that are needed for the growth of his country, but he would insist on the use of swadeshi when such foreign things are sought to be imported that hamper the economic status of home industry. Swadeshi thus is not an outright rejection of everything foreign. It is based on a feeling of concern for the economic and political stability of one’s own country.
      The concept of swadeshi comprises three propositions, the first being the reduction of wants by each individual consumer; the second , the reordering of preferences in such a way that it is made up mostly of goods produced in the neighborhood; and the third is the cooperation of the consumer with his neighbor producer to make them both work effectively. This principle decries competition and stresses the need to promote cooperation between the consumer and producer, which in turn leads to a downward trend in cost function.
             Swadeshi is one of the best ways of preventing manufacture of goods in abundance that creates unemployment and exploitation. If a person wishes to increase his business so as to supply also the needs of others than those who belong to that unit, he will find that no one else would be willing to buy his goods due to a moral responsibility towards his neighbors. Thus he would be prevented from developing into a large scale manufacturer. Even if the article produced elsewhere are more attractive than those produced locally, they will not be allowed to flood out the local products. At the same time, the local producer is encouraged to improve the quality of his products to come up to the standard of foreign goods. Thus the consumers will limit themselves to, and help to improve, the quality of local produce.
 Relevance of Swadeshi in the age of globalization:
   Swadeshi was the economic foundation of Indian nationalism. The idea behind it was to protect Indian economic independence as well as local industries and to prevent the drain of resources. To prevent this drain, Swadeshi based upon self-help and sacrifice was the only alternative. It was based upon the revival of cottage and village industries, revival of panchayat system or self government and opposition to large-scale industrialization, mechanization and western commercialism and values. But later on it involved reconciliation of large scale and small scale industries with nationalization of key industries and urban reorganization to cater to the needs of rural people, economic equality and fulfillment of basic minimum needs of all human beings.
            If the indigenous industries are not protected from foreign competition, our naive skill will be ruined and the villages which constitute the greater part of the country will not prosper. Therefore, swadeshi is specially meant for the basic unit of society, i.e., villages, where production is made for consumption, not for exchange. The basic principle of swadeshi is to produce for the fulfillment of the basic needs and not to produce for commerce, market and profiting. This requires the simplification of our economic structure. If the economy is restricted to small units, it can influence the people morally make them self dependent. That was why Gandhi was not only against the big industries of the foreign multinationals but also against the native multinationals which swallow the small scale industries, which make greater section of people unemployed. But he was not totally against industries and technology. In fact he wanted a balanced growth of villages as well as cities, and small scale and big industries to form a harmonious peaceful society. He wanted to free economy from greed. By his concept of swadeshi he wanted to construct an exploitation free society.
            To conclude we can say that Gandhian concept of swadeshi from its economic view point is a belief in self reliant economy. According to Asha Kaushik, “the attainment of self-reliance has, thus, continued to be accepted as a cherished goal and ingredient for development of the country with a view to ensuring balance of payments, sustainability, avoidance of external debts, generating investable resources domestically and attain self- sufficiency in food and self-reliance in technology as well.”7 Swadeshi is a warning against the killing of native skills and putting the nation in the trap of others. It stands for the natural growth of people than to make some live in luxuries while others starving. It permits taking the help of other for building one’s own economy but with great caution. If we enrich ourselves from others swadeshi welcomes it. But if we lose control over ourselves and fall between the endless wheels of exploitation, it is against the idea of swadeshi. “Gandhi’s swadeshi principle exhorted people to remain contended with the local condition and with the things that God provided for man’s sustenance, instead of indulging in ruthless exploitation of other countries to obtain unnecessary luxuries”. 8 Thus Gandhian concept of swadeshi from economic point of view stands for strong belief in self-reliance, balanced growth and human economics i.e., the economics for larger and deeper life and not the economics for profit and market.
                        The New Economic Policy of India is a clear deviation from the idea of swadeshi for this would not promote to make Indian people self reliant and self-employed. But inertly this would result in foreign domination, deterioration of indigenous industries due to hard competition and overall the Indian economy will be an elitist economy than a mass economy. This will be a market economy, rather than a need based economy, and is bound to create disparities in society. This will be fatal to the permanent peace of nation. Hence what is needed today is a cultural revolution of reduction of wants and adoption of swadeshi in real spirit. In its true spirit, Swadeshi does not mean isolation. On the other hand, it means constant interaction, adaptations and technological updation. Inward-looking economy is an outdated concept. But at the same time, the opening of economy should not be at the cost of economic upliftment of local population. It should result into increased production, employment, growth in per capita income, HRD, equity and better living. Here Swadeshi means self excellence It could not visualize the rise of one nation on the ruins of another nation. Gandhi made it clear again and again that Swadeshi did not mean exclusiveness, or isolation, or non-involvement with the rest of the world. On the contrary, he considered it to be the proper and firm starting point of global co-operation. Hence in a larger context, it can be conceived as instrumental in realization of the greater mission of the brotherhood of man. This will in turn be the proper and firm starting of global cooperation

Reference:
1. Jogdand, P.G and Michael,S.M,  Globalization and Social movements’, (Jaipur : Rawat,2003) p. 7
2. Jawaharlal Nehru, Discovery of India (New Delhi: Jawaharlal Nehru Memorial Fund   1982), p. 533
3. Anthony. J. Parel ‘Gandhi’s Philosophy and the quest for harmony’, (New Delhi: Cambridge University Press 2006) , p. 75.
4 .Man Mohan Singh, ‘The Unfinished Business of Nation Building’ – The Hindu,
 (Delhi) 15th August 1997
5. Choudary, Man Mohan, ‘Exploring Gandhi’, (New Delhi: Gandhi Peace Foundation 2000), p.200.
6. Gandhi.M.K, ‘Harijan’, 25.2.1936,p 8
7. Kaushik, Asha, “Swadeshi, Self-reliance and Globalization: Conjunctions and Disjunctions”, (Gandhi Marg Vol.32.No.2, July-Sept 2010) p.211
8. Bhagavan, Vishnu, ‘Indian Political thinkers’, (New Delhi: Atma Ram & Sons, 1976). P.63

 Dr. P. I. Devaraj, Dr. Syamala.K
                                                                     

                                                                      
                                                                    
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