Comparison of Modi, Dr. Man Mohan Singh and Kejariwal on economics

(This article is written by Shreepal Singh)

The Mantra of development is the proper utilization of resources. There are many types of resources and some are limited in quantity and some are renewable or un-exhaustive. Some countries may have more resources of a certain type than of other types; a country may not even have a certain type of resource at all and would have to do without that resource. A country may have an abundance of a particular type of resource. The key to development in a country lies in the proper utilization of the resources that are available in that country.

For proper utilization of resources, we need to have capital and technology. For example, a farmer has land but he has no capital to buy better seeds; or farm equipment; or to build 20 stories building thereon; or to erect a factory thereon. He needs capital. With the capital he can buy technology. But sometimes even capital cannot buy technology as the technology-holder may not be willing to sell his technology. This is always the case with sensitive or critical technologies. India was denied the cryogenic technology that is used in rocketry; stealth technology that saves an airplane from detection by radar is another example; there are many technologies that are not available for sale. In any case, one needs capital to utilize resources properly.

India is considered a poverty-stricken country that does not have sufficient capital (!). So we need investors who are willing to invest their capital in India. This is the basic corner-stone of an economics that is founded on Market-Economy and is guided by the Keynesian economic philosophy. In this economy, anybody who has capital may invest for proper utilization of resources; there are no restrictions on him and he may earn profits, which are determined by the free market conditions without any governmental interference.

But those who come to India to invest their capital, come here only with the motive of earning maximum profits on their investment. There is nothing wrong with this motive; but in the pursuit of earning maximum profits, investors may resort to improper tactics and it becomes necessary for the government to step in and check their improper moves. The government must step-in to check the improper moves of the investor-capitalist. This is the  substance of Keynesian economic philosophy and Dr. Manmohan Singh is a dedicated disciple of this school.

This philosophy had been propounded long back in 1930s; though it has been tinkered much since then to meet the exigencies of the situations but in substance it still remains the same.

The world is changing very fast today and old concepts are falling apart. One is forced by the constantly emerging new scenarios to cast-off rigidly framed concepts, think fast and find solution to the need of the hour. Though this is not the place to examine the deficiencies of Keynesian Economic Philosophy, still one may point out instantly that in a situation where the investors/capitalists lobbying-firms, pressure groups etc. effect the government decisions and even the investors/capitalists become Parliamentarians, this is no solution to say that the government should step-in to check their improper moves. The investors themselves become the part of government. There is no solution to this problem in this economic theory. (Example: See how Jaipal Reddy, the petroleum Minister and the part of the Indian government, was shunted-out of his Ministry in the dispute of “Gas extraction in D-6 in KG Basin” and a new and convenient Minister Murali Deora was brought in by investor/Reliance/Ambani. Or, see how the choice of government ministers is determined by the investors/lobbyists of investors while forming the government, which otherwise is the prerogative of the Prime Minister)

Also, it does not point out any solution of a situation where over-utilization/industrialization causes pollution, depletion of resources completely in a country or environmental imbalance on our planet.

Let’s come to the subject of economics of India and what our political leaders are saying, doing or proposing for this country.

We have opened our doors to foreign investors without any discrimination in the hope that they will bring capital and technology, and help our development by proper utilization of our resources. But see the result of this rush-in of all sorts of investors! Coca Cola, Pepsi etc. have not brought any new technology; they are over-utilizing our water resources; they are causing environmental pollution and reeking in profits without any benefits to our people (except the claimed new employment opportunities). On the other hand, they have created health-hazard to our children. Insurance, banking etc. have also not brought any new technology and reaping profits. This is the result of Dr. Manmohan’s economics!

We have limited quantity of minerals, hydrocarbons, and land resources. Investors are over-exploiting these limited resources. This over-exploitation of resources is causing socio-economic conflicts in India and giving birth to left extremism. Raw materials, like minerals, and petroleum are being exported out of India turning this country into a resource less land in coming future. All these resources are limited in quantity and would exhaust one day if things are allowed to go on like this.

India has one more resource. It is its population; it is its human resource. This resource can be utilized to develop this country. This resource is not limited in quantity and is self-generating also. If India puts a major portion of its budget in utilizing this resource, this country would beat the whole world in development.

This resource can be properly utilized if the population of this country is provided education as the government’s top-most priority. To make India a developed country and a world leader, our slogan should be: dedicate all resources and efforts to give education to people! The education should be provided to all; education should be of the highest quality available in the world; and, poverty of would-be students or the crunch of budget-funds should not be allowed to come in the way of providing education to all. The quality of education should ensure to include the education and research and development in fundamental sciences and technology.

Today’s economy is the economy of knowledge and not the economy of inviting Coca Cola, Pepsi, Insurance, Banking etc. One who has the knowledge, one who has the technology based on that knowledge shall rule the world and shall create a world-order according to its whims! This is the truth of today.

By education, by knowledge, by technology a nation can grow trees that give electricity, can create miniscule weapons that fly in air and defend its boarders, can forge gravitational-machines that travel to distant planets and transfer its population, and, tell us what cannot be done by knowledge and technology!!

This is not the Keynesian Economic Philosophy of Dr. Manmohan Singh. It is the vision of Narendra Modi, when he says that India will have three equal fields for development: firstly, the manufacturing sector; secondly, the service sector; and, thirdly, the agricultural sector. This economics does not need the study at Harvard University; it needs a fertile mind, common-sense, experience of life, honesty, dedication to make this country a great nation and patriotism. Narendra Modi has all these qualities.

The equal importance given by Modi to the service sector will give top-third priority to educating people of this country so that they are able to serve as scientists, teachers, technicians, advisors, doctors etc. It is a great vision. He did not forget to add in his address on this topic that when these educated Indians will go to foreign lands, and where they will be in great demand because of their high education and skills (nay, those foreign countries would not survive in a fiercely competitive world without these now highly educated and skilled Indians) , these Indians will take with them the Indian spiritual and cultural heritage (Hindus, Muslims, Sikhs, Christians’ spiritual and cultural heritage) with them. There they will plant these benign knowledge and traditions in foreign lands.

This is the best economic model for an emerging India. This is Mr. Modi’s contribution to modern economic theories. Dr. Man Mohan Singh, or any of his so-called stalwart followers, stand no where in economics in comparison to this vision of Mr. Modi so far as India is concerned.

The equal importance given by Modi to manufacturing and agricultural sectors has a great economic wisdom. We need to manufacture newer machines based on the higher knowledge acquired through education by our youths to meet our needs and to meet the security exigencies of an emerging volatile world today. According to this vision of Modi, it cannot be the manufacturing of goods based on obsolete technologies, which the Dr. Manmohan Singh’s policy of inviting foreign capital is doing today. In Modi’s vision, providing education to develop service sector go hand in hand with setting up manufacturing facilities based on knowledge-technology.

The equal importance given to agriculture by Modi also has a pragmatic wisdom. It is necessary to protect our habitat, which needs oxygen to survive, and which is amply given by plants, trees etc. See the position in China as a result of indiscriminate industrialization. One cannot properly breathe there. We need agriculture to feed our people (food security, in case it is denied by forces inimical to our country), to allow to sustain our farmers (not uprooting them by forceful acquisitions of land, which is being done today to industrialize India at break-neck speed), and to allow the Indian traditions to survive in villages which depend on agriculture (Gandhi said: India lives in villages).

We have compared the economics of Dr. Manmohan Singh and Narendra Modi here. Kejariwal, who is another player in the political field today, has not opened his mouth on his economics. Either he does not have any though-out economic understanding about India or he is keeping the one he has to his secret chest. Once he has spoken about economics at FICCI and there he talked in favour of capitalism of the old style. He said he is in favour of investment of capital and thereby development.

What does it mean in today’s controversies? He is not clear; perhaps he does not understand the real issues. He talks only about being anti crony capitalism but that is not enough. Any way what is crony capitalism? It is a misnomer! Let us talk economics: capitalism is capitalism.

What does Kejariwal says in the above referred case of the dispute of “Gas extraction by Reliance in D-6 in KG Basin” and removal of a Minister and raising the price of the gas by the investor? He says, it is corruption! What a layman’s explanation to an economic question!

Kejariwal has had no occasion to come to face-to-face with the Keynesian Theory which the government is following, or the deficiencies of this theory, or any idea of the removal of these deficiencies.

Corruption is one thing and economics is another world altogether. No body favours corruption but its removal is not the solution to all questions, particularly, economic questions. Arvind Kejariwal stands nowhere on economics.

1 Comment (+add yours?)

  1. Trackback: Path of New India – New Age Economy and New Age Democracy (3) | Indian People's Congress

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