While this world progresses towards globalization, many threats flash near the horizon in forms of inflation, massive unemployment, pollution, economic depression. I share my perceptions, knowledge, and analysis about the historical evolution of economic systems, their present significance in contemporary India.
Money was the father of capitalism and equality was the father of socialism. But, the former is the most preferred and the latter failed to become popular. During the years of industrial revolution, both capitalism and socialism evolved and progressed through many decades of ups and downs. Then came two drastic world wars in the first half of 20th century resulting in significant impact over the European economy which had a strong monopoly that point of time.
During cold war several countries adopted an economic system with socialist and communist principles inspired from Karl Marx, Lenin, Stalin. While America marched towards controlling the world economy successfully, Russia stumbled and failed to maintain the momentum over the years paving way for United States to become a super power. Dissolution of Soviet Union, impact of developing countries, American supremacy supported with capitalism, uncertain European markets totally changed the present world economy. Due to globalization capitalist economies became dependent on each other. Then came a quote “When America sneezes, Europe catches cold”. Arguments are going on among the elite economists and planners about the benefits and consequences of capitalism and socialism.
There are opportunities for talented in capitalist economies. If you are capable you are the rich otherwise nobody cares you. Money is the main player and greed is the spoiler increasing the economic inequalities. Unemployment and security are prime concerns. But still capitalism was a success and proved its potential.
There exists equality in socialism while people live happily but not luxuriously. Sustainable development with emphasis on providing basic amenities and security to people is the goal. Here government is major player and responsible and accountable for everything unlike in capitalist societies where corporates can be blamed. But socialism without liberty is slavery. In socialist and communist countries like Cuba and North Korea, people are provided with Universal health care and free education and they had sustainable development in most of the fields. Are Americans and Indians in poor and lower middleclass sections happy?
Now coming to my point, The Constitution declares India to be a sovereign, socialist, secular, democratic republic, assuring its citizens of justice, equality, and liberty, and endeavors to promote fraternity among them.
After Independence, at one point of time during Indira Gandhi’s regime, we achieved maximum growth rate with surplus budget. But in following days something happened. Due to corruption, failure of five year plans inspired from Soviet Union, inadequate monsoons and political instability our economy saw huge downturn. In 1991 due to severe economic crisis, the government liberalized our economy which resulted in huge international investments and foundation for privatization. ( we had to pledge 67 tons of gold to two major European banks as a part of bailout deal with IMF).
Now India is a mixed economy with free markets (with enormous restrictions). Since liberalization, income inequality drastically increased. But our GDP growth showed significant improvements marching ahead with 9% growth in 2006 at the same time signaling our global presence. But our growth rate slumped to 4% after 2008-09 global recession. Why??? Only because of our dependence on global markets. Our economy should be in such a condition, whenever we sneeze entire world should catch cold and if possible even America should be blown away. Is it possible???
We are living in democracy where we can choose our policies by electing our policymakers. My concern here is the urgent need for revision of economic policies in India. We cannot become economic super power unless Indian Rupee gains monopoly in the global currency.
I am neither economist nor a politician who can suggest policies to our policymakers. I can’t. I feel jealous when I look at other developed economies. I want India to rule the world. I want my nation to dictate terms to others.
My thoughts are always aligned towards socialist principles but I am living under the shade of capitalism. Capitalist corporates are providing livelihood to me.
We may face tough days ahead. My advice is to plan a sustainable career.Whatever may be the economic policy, look after yourself and your family. Be careful. All the best.
Be Independent, Don’t be a slave. You must be the dictator.