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We live in a world of slogans, where socialism has taken the place of the mantras and the shastras, the Ten Commandments and the Golden Mean. But, just as a coin gets defaced, and its engraving gets erased after it has been in circulation for a long time, words like ‘socialism’ get denuded of their true content after they have been in constant circulation. Socialism means different things to different people, and to some people it means no more and no less than cabinet rank.
There is the type of socialism that has built up the lucky countries of Europe and the Third World. And there is also the other type of socialism, which has brought down the less lucky countries like Indonesia under Sukarno and Ghana under Nkrumah.
The Preamble to our Constitution does not use the empty label ‘Socialist’ at all, but uses the meaningful words, “Justice – social, economic and political” and “Equality of status and of opportunity”.
The wrong brand of socialism is extremely popular; in fact, it is the fastest-selling brand of socialism today in India. The reason for its popularity is that it is so much easier in practice. This cheap and easy style of socialism mistakes Amiri hatao (liquidation of wealth) for Garibi hatao (removal of poverty); it aims at levelling down and not levelling up; it is content to satisfy the pangs of envy when it cannot satisfy the pangs of hunger; and, since it cannot create income or wealth, it plans for poverty and equal distribution of misery.
True socialism provides four significant measures of a country’s development – an increase in the Gross National Product, availability of work, fair distribution of income and the quality of life. You must have all four if you want economic growth with social justice. There would be no availability of work, no income to distribute, and the quality of life cannot be made less shoddy, unless and until we have a fast and sustained rise in the Gross National Product. Without it, there can be no increase in gross national happiness.
If we followed the school of Old Economics, we would be content with mere increases in the Gross National Product. If we adopted the New Economics, we would insist on growth with social equality. But we have chosen “non-economics”, where ideology reigns supreme, scarcities multiply and savings evaporate in inflation.
The vital point, which is normally missed in political histrionics is that, while it is possible, in a poor country like India, to have economic growth without social justice, it is impossible to have social justice without economic growth. ‘Economic Growth for Social Justice’ would be a more rewarding slogan than Garibi hatao.
The concept of socialism gets distorted when one stubbornly adheres to state ownership as the only means of achieving the goal. You may adopt state ownership in areas where such ownership affords the only sure and safe launching pad; or you may tap the boundless reserves of the people’s response and initiative, energy and endeavour, prosaically called ‘the private sector’. The vital point to remember is that the public sector does not necessarily spell public good, and the private sector does not merely spell private gain.
Our scarce financial resources should not be wasted on ideological preferences, which envisage a dichotomy between the public sector and the private sector. The government and the people should think of only one sector – the national sector. The line of demarcation should be between honest and efficient business on the one hand and dishonest and inefficient business on the other. Every effort must be made to encourage and expand the first and to condemn and constrict the second, irrespective of the question of whether the enterprise is in the public, private, or joint sector. If the same standards of economy, efficiency and managerial competence; and the same criterion of dedicated public service are applied to the public sector as well as to the private sector, we shall achieve the greatest economic transformation of our time.
State ownership is to social justice what ritual is to religion and dogma to truth. State ownership and state control are the shells of socialism, which were really intended to protect and promote the growth of the kernel; but rigid shells merely stunt its growth.
The fanatical devotion to nationalization as an end in itself, and the confluence of all controls in the hands of the government, made Galbraith observe that, in the old days, the principal enemies of public enterprises were those who disapproved of socialism; while now it is the socialists themselves.
Contrasting India with other underdeveloped countries, Galbraith further remarked that there is a richness in the poverty of Indians. Unfortunately, while there is richness in our poverty, there is poverty in our socialism.
Two great men, whose birth centenary has been celebrated this year all over the world, have expressed strong views against the monolithic state. Bertrand Russell said, in a letter in 1964: “The danger to liberty involved in almost any form of socialism comes from the power of officials. If socialism is to permit freedom, powerful officials must somehow be curbed, for, if not, they will inherit all the powers of capitalists.”
And Sri Aurobindo said: “We are now tending towards such an increase of organized state power as will either eliminate free independent effort altogether or leave it dwarfed and cowed into helplessness.”
The elimination of poverty as a social problem is a formidable objective, but it is not an insurmountable one. We have abundant natural resources and all the man-power we need. Perhaps there is no other nation that has, in such ample measure, all the enterprise and skills needed to create national wealth, and which takes such deliberate and endless pains to restrict and hamper its creation.
Social justice is different from mere equality. Social justice demands that there should be adequate differentials for ability and other laudable qualities. Elimination of such differentials is the very negation of social justice – it is unfair to those who are denied the fruits of their industry, integrity and intellect; and it is equally unfair to the tens of millions whose hope will die within their hungry hutments since, in a democracy, there can be no economic growth without such reasonable differentials.