I request learned members to reflect on how WTO and other vested international interests effect our economic policies and how some of the agreements limit our options – so far we have been reflecting on economics model as our own making but that does not seem to be the case?
Regards
Virendra Goel
From: join_mtc@googlegroups.com [mailto:join_mtc@googlegroups.com] On Behalf Of Prabhakar Waghodekar
Sent: Wednesday, April 16, 2014 5:55 PM
To: join_mtc@googlegroups.com
Cc: kdparanjpe@rediffmail.com
Subject: Re: Re: [MTC Global] Gujarat model is antidote to failed Bengal model of Nehru and Mahalanobi-14-04-2014
The statement made by Professor Kiran is catching:
"Whichever 'ism' one may follow,one has to make employment
generation as the central plank of progress, this will ensure that
duties are also in place to create wealth and not simply a right
to spend."
The outcomes of any "ism" are dependent upon the integrity,
character, love for people and fairness beyond personal gains of
leaders, those who are in power. Thus isms fail because of
leaders' approach and attitude.
I was too much pained to see a man-driven/pulling rickshaw on the
paths of Calcutta during 1984s in a State that was Communist
ruled. There was no much surprise that socialistic model in India
failed simply because we did not believe in true Socialism! There
is no harmony among what we think, talk and act that leads us to
Coal-gate and Jeeps scams or Mundada or Harshad or Telagi
episodes!
________________________________________________________
On Tue, 15 Apr 2014 19:39:32 +0530 wrote
>Dear Sir, The essay makes a black and white case. Gujarat Model
vs Bengal Model; good model vs bad model. I do not think that in
these times either one is good or bad. We all know the story of
Crony Capitalism as an off shoot of the centralized planning
model. A lot of people made enormous amounts of money by creating
rights and auctioning it to the highest bidder. However, if
national resources like Coal, Oil and gas, Iron Ore, Forestry and
other limited and wasting resources are going to be decided
without the intervention of the Govt, then we will have the other
shade of capitalism- Bandit or Dacoit capitalism as another
perversion and lead to some people making huge amounts of money.
So neither of these systems are foolproof.
Both in a sense avoid the central problem of equitable and fair
distribution for a large section of the population. It is believed
that the market is the fairest mechanism of distribution, but it
must be remembered that a very large mass of people are excluded
from the free market system simply because they do not have work
that pays them fairly. Whichever 'ism' one may follow,one has to
make employment generation as the central plank of progress, this
will ensure that duties are also in place to create wealth and not
simply a right to spend.Best regards,
K.D.Paranjpe
Mumbai
From: "Virendra Goel"
Sent: Tue, 15 Apr 2014 14:02:34
To:
Subject: [MTC Global] Gujarat model is antidote to failed Bengal
model of Nehru and Mahalanobi-14-04-2014
http://www.firstbiz.com/economy/gujarat-model-is-antidote-to-
failed-bengal-model-of-nehru-and-mahalanobis-82196.html?
utm_source=firstpostGujarat model is antidote to failed Bengal
model of Nehru and MahalanobisBy R Vaidyanathan Jawaharlal Nehru's
model of the heavy-handed state had the backing of Bengali
intellectuals like PC Mahalanobis. It has failed miserably. Time
to take up the freedom oriented Gujarat model. AFPWhenever someone
talks of the Gujarat model of development, experts on both sides
of the political divide pounce on statistics to appreciate or
condemn the state's performance. But the issue goes beyond some
statistics about power production or enrollment in government
schools. It goes beyond mere growth or social indicators.After
independence, and particularly after the Avadi Congress (1955),
the Congress party decided to adopt the "socialistic pattern of
society" as our development mantra. The country opted for economic
planning under the tutelage of PC Mahalanobis and Prime Minister
Jawaharlal Nehru. We essentially opted for the Soviet model in
Devnagari script.The entire planning process and the role of the
state was hijacked by different shades of Left-wing thinkers, with
some criticising the others for not being adequately red. From
Mahalanobis downwards, Bengali intellectuals played a very large
role in this leftward tilt for more than 40 years and, during the
entire period, economists from the other side were denied space or
official patronage.If you go back in history, the theoreticians of
this failed model - which we can call the Bengal model for
simplicity and also because most of its proponents were (and still
are) from that province - dominated national discourse. Even
today, we can say that Amartya Sen is the ultimate guru of this
idea of development where the state plays a domineering role.In
simple terms, the Bengal model suggested that the state owed every
individual something – from womb to tomb. Family responsibility
was nationalised and everyone, from children to senior citizens,
had a right to expect something from the state.The word 'duty' was
abolished from the dictionary and a rights-based society evolved.
Some sections of the middle class lapped it up, since the Soviet
Union gave legitimacy to this draconian idea and the public sector
provided job opportunities to the educated. Nehru called public
sector units the temples of modern India. The system was built on
layers of regulations and a solid licence-permit-quota raj was
created to administer it all. It accentuated corruption and
government employees and middlemen became extortionists.
Politicians became experts at stealing public
funds.Entrepreneurship was frowned upon and profit became a dirty
word. Businessmen were derided as "banias" and metaphorically
threatened with hanging from the nearest lamp-post. For example,
price increases have always been blamed on hoarding by banias –
the solution to inflation is thus to go after the banias. However,
the system began to crumble once it failed to produce results and
the country went near bankrupt in 1991. Once the economy was
opened up, people began to demand products and services, which was
beyond the comprehension of the government system. Newer
opportunities sent public sector units scurrying for subsidies,
and the collapse of the Soviet Union in the late 1980s destroyed
the theoretical underpinnings of the socialist system.If, in the
sixties and seventies, the dream of every new engineer was to join
one of the public sector units like BEL, Bhel or HMT, in the 1980s
and 1990s, their preferences underwent a sea change.But the
massively corrupt system refused to die and the Frankenstein
state, created over 60 years, found new ways to extend itself by
conferring new rights on the people: right to information; right
to work (MNREGA), right to food; right to education and now right
to health. This is nothing but the state seeking new ways to
retain the system of loot based on public resources.The moth-eaten
state structure has been unable to cater to these rights, and
people, anyway, found ways to buy their way into the system. With
huge resources now being devoted to sustaining these rights,
klepto capitalists have found ways to manipulate the free market
and the state to fatten themselves.It is in this bleak and
degenerate scenario that we have seen the emergence of the Gujarat
model with an alternate vision of a new polity, enabled by a
minimal state. The idea has always been around – with the late C
Rajagopalachari being one of its backers – but in essence the
Gujarat model is about having the state play a lesser role, and
the people a larger one.The model is simple. Entrepreneurship is
encouraged and celebrated. People should have huge opportunities
for employment, but not necessarily in government jobs.
Individuals and families should work/earn/eat and live on their
own efforts instead of depending on a benevolent state.
Individuals are responsible for their actions.The concept of a
small state means having fewer regulations and more self-
regulation. A self-regulatory framework policed by an effective
law enforcement machinery which guarantees swift and severe
punishment for violations can be the best form of governance.The
Gujarat model, for example, is to charge for power but provide it
24 hours. The Bengal model is to provide power free or with heavy
subsidies - with the people getting more power cuts rather than
power. Unfortunately, the Bengal model has become the norm all
over India. It is the Gujarat model, whatever its shortcomings,
that offers a different paradigm and different set of
possibilities.The battle between Nehruvian socialism and Rajaji's
self-restrained market economy has just been joined. It is a
tectonic shift and it need not be trivialised by looking only at
growth numbers or indicators based on one's ideological
preferences. The fact is Nehru's vision has failed completely and
it is Rajaji's that needs to be given a chance now. The Gujarat
model is an antidote to the flawed Bengal model.The author is
professor of finance at IIM, Bangalore. The views are personal
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Regards,
Dr P H Waghodekar
Advisor (HR), IBS & PME (PG)
Marathwada Institute of Technology,
Aurangabad: 431028 (Maharashtra) INDIA.
(O) 02402375113 (M) 7276661925
E-Mail: waghodekar@rediffmail.com
Website: www.mit.asia
Engineering & Management Education: An Engine of Prosperity.
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