RESTRAINT OF FOREIGN AID
IT is also important that we should be self-reliant in the economic field. If the fulfilment of our programmes depends upon foreign aid it will certainly be a restraint, whether direct or indirect, upon us. We would be pulled into the sphere of economic influence of the aid- giving countries. In order to save our economic plans from difficulties we may have to many times keep quiet. A country which acquires the habit of depending upon others loses its self-respect. Such a nation can never assess the value of its independence. It is also certain that no country would give us aid to be used as we think fit.
It will examine our plans and then we would have to make such plans as can be in accord with foreign aid even if they are not in our interest.
IT is suggested that the shortfall of capital in the country should be made up by foreign capital and we are importing foreign capital to a very big extent in different forms. Even if we keep aside the political aspects of foreign capital its economic utility extends to a particular point and not further. The popular idea is that foreign capital means money which we receive and which we can use as we think fit. This is not the truth. Foreign capital has to be used in foreign countries and hence it cannot be an alternative to domestic savings. When we invest domestic savings in the form of capital we are icing employment not only to the people in a particular industry but to many others outside it, such as those making the machines and other ancillaries required for the industry in which we invest.
Foreign capital can be obtained in three ways (a) from individual industrialists, (b) from international organisations, and (c) from foreign governments. They can do this either by giving loans or by becoming partners.They can either set up their own industry in the country or collaborate with the Government or private industrialists within the country. In all these possible alternatives the basic point is that it is not for us to decide whether the machines or other implements on which we shall spend our money outside the country are useful to us. We shall even have to accept foreign technology. Foreign technicians and industrialists would produce goods in our country with processes and machinery available and currently used in their own country. This can help industrialisation to a certain extent but It cannot build a firm industrial base for the country.
EFFECTS OF URBANISATION
ACCORDING to Western economy the level of urbanization is considered the basis of development. In India too the number of big cities and their population are gradually increasing. In the life of the West cities have created a number of social, moral, political and health problems. A large amount of money is spent on them. In the climatic condition of India, crowded living is all the more harmful for us. This is one of the main reasons of the spread of TB and other deadly diseases.Slums are also increasing in our cities. Hence the need of the times is not new cities but industrialisation of villages.
MANY times capital industrial projects are taken into hand for the sake of prestige. It is felt that the capacity to produce capital goods would raise our prestige in the eyes of the world. But this is not an economic truth. For such capital production we shall not only have to keep our standard of life at a low level for a long time but we will also have to sacrifice democratic principles in the political field.
LABOUR-INTENSIVE PRODUCTION PROCESS
WHEN we think of the means of production in India we arrive at the firm conclusion that our production process must be labour-intensive. In the first place we are short of capital and when we convert it into fixed capital on the basis of labour-saving projects this capital flows out of the country. Further our old machines become obsolete, which increases the speed of decapitalization and disemployment. The rising unemployment in turn depresses tile standard of living of most people instead of raising it. A complex Western production process can jive employment to a few people but it cannot set into motion a dynamic process which can bring about a revolutionary change in the country’s economy. If we want such an industrial system, it should be in consonance with agriculture and should give adequate importance to small industries.
IF we are to conduct our industries with success, it is necessary that they should be conducted on a completely commercial basis within the interest of society. Hence they will have to be kept aloof from party politics, which changes from day to day. From this point of view they should be conducted by autonomous corporations.They should have freedom in their day-to-day conduct but should be under parliamentary control. In point of the participation of workers in the management public sector industries should give the lead to other industries.
WHO IS A TILLER ?
LAND for the tiller does not by any means mean that he who ploughs the field will be the sole owner of the land and he cannot benefit from the services rendered by others. He should have the right to employ labour as required. The tiller should generally mean the person who is responsible for the production of crops in a particular field, invests money in it and takes care of it. It is not important how many agricultural jobs he per- forms himself and how many labourers he employs.
A FAMILY represents the ideal ‘from every man according to his capacity and to every man according to his needs’. Tradition has helped to inculcate this feeling amongst the members. The karta of a family does not depend upon the votes of the members. No training classes have been, and need be organised to train him how best to discharge his responsibilities. He does it instinctively, following the ways his forefathers had followed. But In a cooperative we are faced with the crucial problem of how to distribute the produce. When people with all sorts of lands and with no lands and those with varying rights in land are joined together, it is practically impossible to divide the produce equitably. It may be done equally but that will not be equitably.
BY and large we can see that food, clothing, shelter, education and medical attention are the five basic necessities of every individual which should be fulfilled. If we want to assess the material standard of life of any country we could take these as a starting point. If any class of a society does not. get these facilities, we may say that the standard of life of that society is not developed.
(Excerpts from the book – “Pandit Deendayal Upadhyaya
A Profile” edited by Sudhakar Raje)