Mahatma Gandhi's Insights on Economic Growth

                How did Mahatma Gandhi look at economic development? His understanding of any aspect of life and society flowed from his deep tuning to non-violence and restrained use of resources and energy of the planet. The economy based on restrained use of resources and energy would endure and sustain. Kumarappa's "Economy of Permanence" encapsulates Gandhi's vision of economic development which is sustainable, equitable and non-violent.  Besides, we need to understood Mahatma Gandhi's Swadeshi Economy which he said should be based on use of resources available within ten and fifteen kilometers. In using resources within such distances we use less energy and resources of the planet. In UK there is a zero energy based Housing Society which now stresses on use of energy and resources within a limited area. They call it reduction of food miles. In reducing food miles we reduce carbon emissions which is the alarming feature of the carbon economy created since the advent of the industrial revolution.

                Even trusteeship has been understood as an idea which can reduce inequality and, therefore, promote a culture of sharing. This is an enabling measure to address persistent poverty and deprivation which is a source of unsustainable development. Trusteeship is an idea of Gandhi which permits those who have means and knowledge to generate wealth to keep some amount of wealth for their utility and use the rest for society at large. The idea of trusteeship, Gandhi said, could be enforced through legislation after creating sufficient public opinion in its favour. It is a highly desirable idea which is relevant for the world of twenty first century marked by high levels of inequality. Even relevance of his idea of Trusteeship can be seen in the context of   Companies Bill of 2013 where CSR(Corporate Social Responsibility)  has been made mandatory. Mahatma Gandhi"s  emphasis that  Trusteeship can be enforced through legislation after mobilising and creating  public opinion in its favour underlines his point that law and jurisprudence could be used for establishing an economic order based on sharing and equality. While all his economic thoughts flowed from the ideal of non-violence he also stressed on legislation and law to materialise his vision.

                It is well known that Mahatma Gandhi understood the human and moral degradation suffered by our people, particularly the so-called untouchables and the country as a whole, on account of the scourge of untouchability. However, he acknowledged that Madhusudan Das of Odisha proved statistically the economic loss arising out of untouchability. He explained it by saying that the higher castes always looked down upon the so-called untouchables who dealt with dead animals and dressed their skin. It is because of that hatred and abhorrence of the high castes for people dealing with dead animals and their skin that adequate skill in that field could not be developed and in the process enormous economic wealth associated with leather and its by-products could not be tapped.

The economic degradation of India on account of untouchability proved to be a bane on our village economy which always remained woven around agriculture without credible and viable alternative occupations as a source of livelihood for the rural population.

In a piece entitled ‘Advice to a Harijan Worker’  published in Harijan Bandhu on September 3, 1933 Mahatma Gandhi referred to the plan of some of the Harijan workers to take up leather work and stated that it was not enough to make slippers only. Stressing that the work of tanning assumed more importance for our villages than mere leather work, he asked a question: “What did Madhusudan Das do?” Answering it he stated: “He gathered the tanners of Utkal and studied how they did tanning.” Then Gandhiji observed that Madhusudan Das was dissatisfied with the level and quality of tanning and, therefore, sailed to Germany, learnt leather work there and brought an expert from that country and set up a factory in Cuttack. It is educative to learn from Gandhiji’s writings that many so-called untouchables learnt the work of tanning because of the dedicated efforts of Madhusudan Das and wrote: “Like Madhusudan Das you should first master the craft. It cannot be done in one month’s time. You can do very well, if you learn it properly. I can make arrangements for your training.” The linkage he established between the practice of utouchability and economic degradation proved the point that social factors could retard economic growth.

Now we understand that poverty is the worst source of pollution. In his Constructive Programme there is a point called "Economic Equality" which was stressed by him  to avoid a bloody and violent revolution based on eternal conflict between capital and labour. We can appreciate Thomas Pickety's "Capital in Twenty First Century" and the astonishing levels of inequality caused by neo-liberal policies across the world by reading Constructive Programme of Gandhi where Economic Equality became the determining and governing principle. He also wanted a culture of entrepreneurship to be developed in India based on the idea and practice that Indians were born traders. In South Africa before he started his first Satyagraha he told that colour of skin of Indians was mere cover for discrimination imposed against them. The real reason was trade jealousy, because Britishers found it difficult to compete with Indians in trade and commerce and were lagging behind Indians in reaping profits even as Indians were  facing all kinds of hurdles to lead a normal life as citizens of British Empire within which they were guaranteed equal rights after the proclamation of 1858 and in response to what happened in the first war of independence.   Another aspect of Gandhian Economics was gender equality in the field of trade, commerce and finance. In 1939 he wrote that subordination of women would cripple  Indians to compete effectively  at the global level. What is now done by IMF and Japanese PM Abbey to provide equal opportunities for women in economic field by interrogating patriarchy assumes significance in the context of what Gandhi wrote in 1939. Dandi March  was  classic example of a non-violent movement to ensure right of  people to own and use natural resources. We need to understand his labour intensive industries for generation of employment and, therefore, we need to say that medium, small and micro enterprises are more important than big industries which are based more on automation and so are less employment intensive. He opposed Land Ceiling law of 1894 on the ground that land had to be acquired by consent of people and not by law as it would result in application of force which remained central to western approach to industrialisation. Therefore, he supported the first Satyagraha started by people in Pune in 1921 against a Tata project. That was the first example of a Satyagraha of corporate acquisition of land. Gandhi was not in favour of possession of one car by every Indian family as he believed that it would result in lack of space for people to walk on the roads .  He said so while answering a question to an American who said that in the future economy of the USA the then American President of America Robert Hoover wanted   every American family to  possess two radios and two cars. Gandhi could foresee the problems caused by too many cars. Joseph Stiglitz in his book "Making Globalisation Work" attributes too many cars in western world and the blind imitation to possess cars in other parts of the world as a major cause of global warming. Now it is realised that human beings particularly the citizens of the western world through their multiplied consumption have created a "Carbon Economy". To decarbonise it, it is emphasized by the Nicholous Stern Committee on "Global Warming and Global Economy" that business has to be remodeled and life style has to be remodeled. Mahatma Gandhi said exactly the same thing in late 1930s when he wrote that "Multiplication of wants and desires is such a sin and I make bold to say that if Europeans do not remodel their lives they would die if their own comforts." That is why Gandhi cautioned that if India followed the development model of the UK which used two thirds of the resources of the planet then it would "strip the world bare like locusts". In fact he said that India herself would require more than one planet. The human development of the UN on Climate Change and Human Development observed that at the present rate of development humanity would require three planets. Gandhi had cautioned that one planet would not be enough in 1927 in his small para on Industrialism. In Gandhian Economics there is an overwhelming importance given to science and technology. He famously wrote that "A great science is required to build a bridge  over Ganga, but I want a greater science to manufacture implements for village people". In 2004 Government of India instituted an award for those scientists and innovators whose discoveries and innovations would be of relevance for village people.  Gandhi's economic thoughts are insightful. They are of abiding significance for humanity as a whole which is engaged in saving the planet while pursuing economic growth.

The author served as Officer on Special Duty and Press Secretary to President of India late Shri K R Narayanan and had a tenure as Director in Prime Minister's Office and Joint Secretary in Rajya Sabha Secretariat.