The Economy of Permanence: A Quest for a Social Order Based on Non-violence (स्थायी अर्थतन्त्र)

Economy of Permanence
fertilizer. This must be stopped altogether. This is one of the fundamental
reasons why oil seeds should not be allowed to go out of the villages but should
be crushed in the local country ghanis. This will retain both the oil and the
cake in the village and enrich men, cattle and the land.
In the name of increasing the fertility of the soil, great attempts are being
made to introduce chemical fertilizers. The experience gained through the use
of such chemical fertilizers throughout the world is clear enough to warn us of
their inroads. They do not add to the fertility of the soil but act as stimulants
or drugs so that the land yields up its fertility resulting in immediate bumper
crops, but in the end bring about a corresponding exhaustion of the land. They
also destroy a host of earth-worms so essential to maintain the fertility of the
soil. In the long run, such artificial fertilizers prove to be most injurious to the
land. Behind the specious pleading for the chemical fertilizers lies the anxiety
of the fertilizer factory owners to push the sale of their products irrespective of
the harm or injury they do to agriculture.
Seeds : Selected and improved varieties of seeds are essential if agriculture is
to flourish. What is wanted in this regard is the machinery for effective
distribution of seeds in the form of co-operative societies which should run
seed farms under able research workers.
Grain storage : Enormous loss of grain occurs through bad storage alone. Such
loss is estimated on a conservative basis to be about 3.5 million tons, an
amount equal to the declared deficit of grains in India during 1946. The
qualitative loss caused by insects, rodents, dampness etc., all caused by bad
storage arrangements resulting in all kinds of diseases, is equally great.
If storage arrangements are made locally all the waste through bad storage,
loss by insects etc., and conveyance charges will be eliminated.
The storage problem is both an urgent and a permanent one and should be
tackled in all earnestness and seriousness. In any case, holding stocks in ill-
protected godowns, as at present, should be stopped.
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Big towns and cities, where proportionately larger stocks of grain are to be
held, can build pucca cement godowns. These can be built either by the
Municipality or by private people to be rented out for grain storage, or better
still, by Co-operative Societies.. These godowns should be licensed and
subjected to periodical inspection, like the boilers, as at present.
If the stocks are held in the villages where they are produced and all their
movements to town and back to villages are eliminated, the chances of their
getting damaged are, of course, reduced.
Individual holders of stock also should be educated in the methods for the
preservation of grain.
Conservation of Raw Materials in the Villages : The greatest handicap from
which village industries suffer is the utter resourcelessness of the artisan. Being
unorganised he is unable to stand against the competition from his resourceful
and organised rivals, the mills. With all the resources at their command, the
mills practically monopolise the raw materials and corner the market even for
the finished products, leaving the isolated artisans utterly helpless. The
financial policy of the banks, discriminative railway freight rates and the
capitalistic marketing organization, all favour the working of large-scale
production to the exclusion of the artisans. The artisans are left with hardly
any raw materials in the villages. This process needs to be reversed. All raw
materials produced in the villages should be conserved and consumed in their
place of production and only the surplus that remains after satisfying local
needs should be allowed to be sent out. Production should be directed towards
raw materials needed by village industries rather than towards those required
by factories.
Supply of Tools and Implements: Tools and implements of village industries
are not generally of uniform efficiency throughout the land and often even in
one province. Research should be directed towards devising suitable
instruments.
Multi-purpose Co-operative Societies should arrange for the regular supply of
equipment and spare parts to village artisans.
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District Demonstration Centre: Demonstration centres of Co-operative
Societies should be located in rural areas. Their function should be as follows:

1. To manufacture and supply implements and tools to village artisans and to
   introduce improved implements in place of old type ones.
2. To train carpenters and other artisans and to teach them the latest methods
   introduced into the various industries,
3. To collect tools and exhibits of local art and display them in a museum.
4. To carry on industrial and health surveys in the district.
5. To work in co-ordination with other co-operative societies and the
   Hindustani Talimi School for the general uplift of the villages.
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V. VILLAGE INDUSTRIES
The Multi-purpose Co-operative Societies can supply raw materials, stock the
finished goods and help in distributing all village industries products especially
those connected with food- processing, textiles and other primary needs. They
should be ever watchful of the interest of the villagers. In particular the follow-
ing recommendations may be attended to :

1. Rice mills should be disbanded and the engines could be used for irrigation
   purposes as has been already suggested.
2. Hullers used for polishing rice should be banned.
3. People should be informed about the better nutritive value of whole
   unpolished rice and about the method of cooking it, along with practical
   demonstrations. Polishing of rice should be prohibited or its degree of
   polishing should be very strictly controlled, or par-boiling of paddy should be
   encouraged.
4. Where paddy husking is carried on an industrial scale, for business purpose,
   in the case of predominantly paddy growing areas, expensive equipment
   such as paddy separators, winnowers, etc. should be supplied on hire to a
   group of artisans through the Co-operative Society.
5. In view of the fact that the use of unpolished rice is to be advocated and
   popularised, the movement of paddy from one place to another will become
   necessary. In order that the freight on the extra weight of paddy may not
   enhance the cost of rice, the freight charges on paddy should be suitably
   adjusted.
6. In areas where the implements for dehusking paddy and polishing rice are
   the same, and both the processes are combined into one of pounding paddy,
   resulting in polished rice, dehusking implements, i. e., chakkis either of
   wood, stone or mud, should be introduced to restrict polishing. Such
   implements might be supplied, as also the equipments for other industries,
   through the District Demonstration Centres. The polishing of rice might be
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discouraged by imposing a tax on implements that polish rice and the degree
of polishing obtained with these should be subject to supervision and
control.
Paddy and other grains and seeds required by the village should be stocked in
the village itself and only the surplus could be sent out and that only through
the Co-operatives Society.
2. Flour Grinding

1. Good quality stones for hand chakkis and equipment for the bullock and
   water driven chakkis should be made available through the Demonstration
   Centres.
2. The production and use of fine white flour, maida, should be banned.
3. Flour mills grind large quantities of grain and hold their stocks of flour for
   long periods. This causes such flour to deteriorate. Therefore, such mills
   should be discouraged.
4. Bullock-driven flour chakkis should be introduced where the necessary
   facilities exist.
5. Wherever water power is available from running water of a river or a canal,
   water driven flour chakkis can be set up.
6. Such chakkis might be owned co-operatively by the villagers as in the
   Punjab.
   3. Oil-Pressing
   The main difficulties in resuscitating the village Ghani are the following:
   The villages are practically denuded of the oil-seeds at the harvest time. To set
   this right only surplus oil-seeds should be allowed 10 go out of the village.
   At some places the local Ghanis are so inefficient and small that it is veil nigh
   impossible to make them a practical proposition. Even in a single province -
   here are numerous types of ghanis. A detailed survey of the working of all such
   ghanis should be carried out. The working and advantages of improved ghanis
   should be demonstrated.
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There is at present a great dearth of ghani carpenters even of the old type.
Oilmen find it very hard to get their timely service. Their difficulty of getting
equipment and spare parts is equally great. Training should be given to oilmen
and carpenters in the technique of the improved ghanis at centres which will
also provide the necessary equipment and spare parts.
Tahsil Co-operative Societies of oilmen or the Multipurpose Village Societies
will be the best medium for stocking oilseeds, controlling the prices of seeds,
oil and cake eliminating adulteration etc.
4. Gur Making
Gur making from palms is being done on a commercial scale in Bengal and
Madras where the industry has been well established.
Preservation and Pla ting of more palms ; Felling of palm trees should be
prohibited, government owned waste land, unsuited for agricultural purposes,
should be utilized for raising palms so as to be sufficient to replace cane gur
and sugar by palm gur in due course. Also cultivation of palms on similar private
lands and field bunds should be subsidised. Adequate supply of seedlings should
be arranged and proper methods of cultivation should be taught.
Co-operative Societies: Co-operative Societies should take Jp the production
and market the produce. They should also supply, where needed, equipment
such as pans and centrifugal machines on hire.
5. Bee-Keeping
Bee-Keeping is doubly useful. It enables better fertilization of the crops giving
the farmers a better yield, and at the same lime provides honey, a nutritious
article of diet.
The demonstration centres can keep a few colonies of honey bees and the work
can be extended in other villages where bee pasturage is available. A
preliminary survey of the area by an expert in bee-keeping will be necessary for
this purpose. Once the centre is able to domesticate the bees, it can provide
facilities for agriculturists to receive training and to obtain the necessary
equipments at moderate rates.
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6. Cotton and Wool
In areas where cotton can be grown adequate lands must be assigned for
growing at least 127 lbs. of lint per head of the population and its spinning and
weaving should be organised on the lines indicated by the programme of work
followed by the All-India Spinners' Association.
Similarly, in sheep rearing areas production of woolen goods should be
encouraged by aids to sheep-breeding, grading of wool, etc.
7. Leather Tanning
Export of raw hides and skins from India are amongst the largest in the world. If
we can convert all this raw material into leather ourselves we shall be
providing occupation to millions of Harijans. Time being the essence of tanning,
much finance is needed. Hence the work must be done co-operatively.
Societies should purchase the hides, etc., and pay piece-work wages on warious
processes and market the goods either as finished leather or as manufactured
articles.

1. Leather is being tanned in all provinces, but all are not of equally good
   quality. Calcutta 'Chrome¹ and Madras 'Gavi', which are considered to be of
   standard quality, are not attempted elsewhere. Other varieties are far
   inferior to these two. The reasons for this should be found out and the same
   standard of tanning should be introduced everywhere.
2. Export of raw hides and skins should discouraged by Government levying a
   very heavy duty on their export.
3. A cart for carrying the carcasses should be supplied by Co-operative
   Societies at nominal cost to a group of chamars. At present, for want of
   such conveyance, the carcasses are dragged on the ground. It is estimated
   that this process reduces the value of the leather by about 50 per cent.
4. The circumstance under which the industry is now carried on are very
   unhygienic and demands a complete reorganization. This can be brought
   about if proper arrangements are made at a site a little away from the
   village dwelling places, for buiding sheds, pits, drainage, supply of water,
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etc. and if the processes, which are unhygienic, be carried out by simple
machinery. If this involves a transformation of the scattered chamar
families into a central tannery for a tahsil or district, the change may be for
the better. Such tanneries may be owned and managed by Co-operative
Societies only of the chamars.
5. At present, there are a few selected places where leather manufactured
goods are produced on a very big scale and distributed over the whole
country. This system must be discouraged and local manufacture of
practically all the leather goods, such as foot-wear, money purses, suitcases
etc. should be encouraged, either the local manufacture may be subsidised
or the imports taxed.
Subsidies should be given to individual contractors or Cooperative Societies
for the preparation of manure from blood, flesh and bones from the
carcasses.. The subsidy should be in proportion to the output of manure.
6. Glue, guts, brushes, and other byeproducts can also be prepared by these
societies. The horn industry can be profitably introduced among chamar
families. It should be encouraged by subsidy for some time and by the
purchase of the finished products by the government for its use. The
necessary equipment should, of course, be supplied on hire.
8. Soap-Making
A survey of deposits of sajji matti should be carried out. And wherever such
deposits of sajji matti are found, soap makers should be allowed to collect
them without any tax or royalty being demanded of them. Incidentally, it may
be observed that the removal of this deposit improves the quality of the land.
Caustic lye prepared from Sajji matti and non-edible oils should be utilized for
soap manufacture in villages.
9. Lighting
The non-edible oils as neem, karanji, candle nut, pardi, mahua, rayan, etc.,
which are very little used at present, should be utilized also for lighting
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purposes. Every effort should be directed towards making the villages self-
sufficient in lighting.
Vegetable oil lamps like, the 'Magandipa' devised by the A. I. V. I. A., can be
distributed from the demonstration centres along with other equipments, and
the local artisans should also be encouraged to produce them.
10. Paper Making

1. The provincial Government may start handmade paper industry in the jails
   where the required raw materials are available in the vicinity. For this
   purpose a survey of the local raw materials needed for paper making should
   be carried out by an expert.
2. All the chemicals required for paper making should be made available by Co-
   operative Societies to the handmade paper production centres at controlled
   rates.
3. One central workshop should be maintained, in common with other
   industries for making the required machinery such as beater, callender,
   moulds, screw press, envelopes making machine, etc.
   Paper makers should be supplied with the latest type of equipments such as
   hollander beater, callender machine, screw, press, etc., either on hire or on
   the hire-purchase system through the Co-operative Societies. These
   societies may also supply pulp where such pulp calls for power-driven
   machinery for its making.
4. Such raw materials as office records, waste paper and grasses available in
   the government forests useful for paper making, which are auctioned at
   present to the highest bidder, should be reserved for hand-made paper
   producing centres and should be supplied to them through their co-operative
   societies at moderate rates. Similarly, the finished products prepared by the
   centres should be purchased by the Government for their stationery and
   office record purposes, through the Co-operative societies at such prices as
   will leave the paper makers in a position to maintain a reasonable standard
   of life.
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5. Training: The required expert staff for hand-made peper producing centres
can be trained at the Provincial Training Centres.
6. Priority should be obtained from the railways for the transport of hand-
made paper and its equipments. Hand-made paper should be exempted from
terminal and octroi duties.
11. Pottery

1. The first requisite of the pottery industry is the analysis of the available clay
   in the province. This should be undertaken by the Government.
2. Clay mixing is an art requiring considerable knowledge of chemistry. Hence
   it should be done in a central place like a Co-operative Society, or a jail,
   and the mixed clay should be distributed to individual potters. Alternatively,
   the existing potters should be taught the art of clay mixing if possible, by
   giving them a set of formulas for particular types of clay.
3. As in the case of other industries, the Co-operative Society can be the
   agency for the distribution of clay as well as the improved potters' wheel on
   hire.
4. The glazing and firing of particular types of pots will have to be done again
   co-operatively. Both the processes of clay mixing and firing and glazing
   should be done on a service basis co-operatively by the potters themselves.
   Pots, which do not require very high temperature firing, and which are
   ordinarily done at present in the villages by groups of potters, can be fired
   better by introducing improved furnaces in place of temporary ones.
   Properly constructed furnaces will reduce the consumption of fuel.
   The big furnaces required for brick-tiles-firing should be co-operatively
   organized. The shape and strength of bricks and tiles should be improved.
5. Facilities should be provided for potters to receive short- term training in all
   processes, such as clay-mixing and improved modelling, firing and glazing,
   at some convenient place.
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12. Sanitation and Manure

1. What forms should the latrines take in the villages should be found out after
   alternative methods have been tried out. It may be more than one type may
   be found suitable and necessary. Experiments must be made in regard to
   types of latrines, etc., to keep the villages in a sanitary condition. Bore-hole
   urinals should be installed in suitable places in the villages.
2. Subsidies should be given to individual contractors for converting human
   excreta and all the dirt of the village into compost manure. The subsidy
   being proportionate to the amount of manure produced should be such as to
   attract individuals to this job. Unless it is made a profitable business
   proposition, it is not likely to be attractive. The grant or subsidy, at least
   for some years, is essential to make it attractive.
3. The custom of housing cattle inside the village and often in the dwelling
   places themselves, requires attention from the point of view of village
   sanitation. Though this is a long-term problem, the sanitation of the village
   is difficult to maintain without proper provision for stables and mangers.
   Wherever new extension of a town or village has to be made, the cattle housing
   should be provided for in a place a little away from the dwellings, sanitation of
   the village is one of the main considerations that weigh with some who
   advocate common dairies of the villages, instead of individually owned and
   kept cattle.
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VI. DEMOCRACY
India was originally a republic of villages, and each village was a self-governing
unit. It has developed certain ideas of state, based on the types of personalities
commonly found in society.
All activities in human society present two points of view, the long range view
and the short range view. Many of us are not capable of taking a long term view
because it means working for years before the fruit of one's labours can be seen
or obtained and men do not like to wait. We are all inclined to take a short
term view, we want to eat, drink and be merry. Ninety-nine out of hundred
people take this short term view. But these are certain matters which have got
to be done for the benefit of the whole society and which call for a long range
view. This is what a democracy arranges for. We require men with long range
view to be at the head of Government if Government is to succeed and the well
being of the majority is to be achieved. People who take a short range view are
a danger to society, if they be at the head of Government. They will promote
wars by their short sighted policy.
Judged from this view point, England and America are anything but
democracies. Those countries are under absolute dictatorships. When these
countries were faced with the grave danger of war, what the form of
Government that prevailed, democracy or dictatorship? Bare faced dictatorship
came into being in those countries. That was not merely a coincidence; it was
bound to happen. These countries have been using centralised methods of
production which means central control and regimentation, which ultimately
leads to dictatorship. We cannot have dictatorship in economics and at the
same time, democracy in politics. Such claims to democracy are merely smoke-
screens. Democracy in economics must be based on decentralized production in
villages on individual basis.
Of course, irrigation, roads and such large projects will have to be undertaken
and for that purpose you must select from society people who have a long
range view. Therefore all ministers and all government officials should be
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persons with long range view. If they talk in terms of money, 'will it pay'?, then
they are not people of the right sort to hold the present responsible posts. In
the long view 'will it pay?' will not be the criterion. 'Does it answer the purpose
of the people¹ is the question that should be asked. Government is not a
commercial institution; it is not on institution for making money or producing
bureaucrats. Government is there to serve the people. If it serves the needs of
the people it does not matter what such service costs. It has got to be
rendered. That is the fundamental principles that we have got to remember.
Here is a big difference between private economy and public finance in this
that public finance takes a long range view. While planning for democracy,
every citizen is to be made conscious of the part he has to play in the whole
scheme.
The Personnel: One of the primary necessities for doing this is that there should
be no 'self in those in charge. If 'self be there, they will exploit the labour of
the millions. That is the danger, and Congress Ministries we want to cut down
very many things. The last ministry went down to a salary of Rs. 500/- a month.
Now their standards have increased, and accordingly the salaries have been
increased. That means that 'self has come in. There is danger here. We have to
accept village standards. We are not to live in palaces. There are many palaces
in cities, where wealthy people are living but the villages have no palaces.
I had an occasion to meet a missionary in a village about five or six miles from a
town. He was living in a big palatial house, like the houses of some of our
ministers, beautifully furnished. In that jungle of a place he had electricity,
pumps for the well, flush out lavatories and so many other modern facilities.
He had a farm of about three hundred acres of land.
About half a mile from the house he had built small mud huts for model
families to establish themselves, with a poultry run and a little land attached
to each hut to cultivate. The missionary said to me, "We are spending a lot of
money here, but we feel that we are not very effective in the villages. We are
unable to get at them. Can you give me a mantra for it?", I said, "The mantra is
very simple. You set fire to this palatial house. That is the mantra. You are
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coming from Western countries and you do not know the conditions that obtain
in India. You always think in terms of money, and prestige it brings. The
villagers respect us in this clothing. If we have two more patches in our clothes,
they respect us all the more. If we do away with the shirt, they follow us, and
if we have a dhoti high up as a loin cloth, they prostrate before us! That is the
standard of values in our country. You missionaries, who come here, do not
understand this position. Therefore, if you want to serve our people, you have
to get rid of this big palace which is associated with exploitation. It creates
suspicion and instels fear in the villagers. If you have built these mud huts for
the villager at a cost of Rs. 250/- each you must build huts for yourself at a cost
of Rs. 125/-, if you want to serve the villagers. If you do that they will come
and listen to you as ] they would realise you have no 'self in you. That is the
secret of it. Ours is not a barbarian country. We have got a culture of values
not based on money. We have got our 'Brahminical standards'. It is not the
sacred thread that is the symbol of Brahminic culture. There may be I. C. S.
officers earning thousands of rupees as¹ salary, with their sacred threads on but
they are all mlechhas. We have got a standard of Brahminical values. That is
the secret of the Mahatma's greatness. If Mahatma Gandhi goes to America,
crowds will go to see him; but they will not go in the same spirit as the crowds
gather in India. Our people have faith in Gandhiji because he is a man without
property without any 'self in him. That is what will bring popular ministries real
power. That is what will restore the confidence of the people. If you put this
plan before them, they will readily take it. You do not require much money for
it.
All that is required is to transform ourselves and get into this way of life. That
alone will bring us swaraj, economic swaraj, In that swaraj everyone will have
enough to eat.
First of all, in a poverty stricken land, everyone must have food and clothing.
That is why we should approach the problem from an agricultural point of view.
It is not a question of harnessing the patriotism of the people. It is a question

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of harnessing every man. Ultimately we have to solve the problem of food and clothing to everyone.

World Reactions: That is the only way of ensuring peace in the world. We have a tremendous hold over China, not because we are manufacturers of atom bombs, but because there are ties between this country and China created by Lord Buddha. That is the sort of culture that we want. We want to be a world power. If so we must start with this cultural value, and we must plan from the villages upwards. That is the only way of solving not only our own problems but those of the whole world. Those at the helm of affairs should forsake their 'self, and forsake their all. They must then put this plan into action for the people. That is the real contribution they can make to our country.

Government Opposition: Democratic government based on representatives requires an opposition to direct its working. The water in a river is kept to its course by the banks. If the banks are of rock it is best. If not the banks get eroded and the river silts and shifts its course. Hence there can be no competition between the banks and the water for the bed of the river.

Similarly the director and the directed cannot be competitors. There should be co-operation and not competition.

As the waters of a river are kept in their course best by its rocky banks, so also the Government of a country has to be directed by forces which lie outside the official sector of the Gov- ; ernment. Great Britain prides itself on possessing the 'Mother of Parliament'. The method prevailing there is to maintain, at Government cost, 'His Majesty's Opposition' to keep the ministers within bounds by directing the flood light of public criticism, on the steps taken or proposed to be taken by the Government. British Parliament is a veritable arena where many a mortal combat between political knights take place. The discomfited knight yields place to the victor. The occupants of the opposition benches today may be the proud occupants of the Treasury Benches tomorrow according to the fortunes of Parliamentary Debate. This is the function of the opposition in the British Parliamentary System. It is an outcome of the competitive economy projected into the political sphere.

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The composition of the cabinet itself reflects the structure of imperialism in
the economic field. Centralised industries need to gather the raw materials
from the four corners of the world and send back their finished products to
markets in the uttermost parts of the globe. This necessitates wide-spread use
of money and transport and control of political power. To achieve these Foreign
Affairs, Finance and Army, Navy and Air Force become essentials. Hence these
have secured coveted status in the British Cabinet.
Both competition and imperialism have their roots in violence.
Our country has taken up the reins of Government. If we desire to pursue non-
violence, what shall be the form of our Government? Our Government also will
need a corrective force to perform the functions of an Opposition'. But we want
an economy based on co-operation and not one on competition. The 'Opposition
members in our economy will not be looking forward to occupying the Treasury
Benches one day, should the fortunes of debate go against those in the saddle
at the time. Personal ambition can have no place in an economy of non-
violence and co-operation. What we should aim at is not to replace the
ministers, but to hold up models that they should follow. The constructive
workers should direct them into proper channels by the beacon light of their
example. This is a great responsibility that would devolve upon the constructive
workers in a non-violent economy.
A well organised body of constructive workers will be needed to provide this
directive force. Their service to the people will be their sanction and the merit
of their work will be their charter. The ministers will draw their inspiration
from such a body which will advise and guide the secular Government. To be
able to discharge this function the constructive workers forming such a body
will have to be drawn from men of renunciation, whose one aim and ambition is
the service of the people.
In such a political make-up the cabinet will handle portfolios that will be
essential to an economy of self-sufficiency. The major portfolios will be
Agriculture, Land, Development-Antierosion, reclamation, fertilisation,
Irrigation, River Controls, Forests, Village and Cottage Industries, Minerals and
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Heavy Industries, Health, Education and Home Affairs. It is not imperative in
such a set-up to give Foreign Affairs, Finance and Defence cabinet rank,
however important these departments may be.
In a political structure of this nature the body of constructive workers will form
the bulwark of safety for the people against exploitation. A Government run on
this basis will give the needed emphasis to the affairs of the people and ensure
their welfare bringing in Swaraj to the masses.
'Nationalisation' presupposes that real power rests with the people, i. e., with
the masses. There should be in the first place, a wide foundation of experience
in the management of our affairs. This has to be obtained by the villagers
looking after their common needs through well organized panchayats. From
such experienced men the districts will draw their administrators and these will
also supply the requirements of the province in regard to public men and
legislation. Such well-based and properly conducted provincial administration
will be able to keep under control the Central Government and make it
function in the interests of the villagers.
When the Government of the land is in the hands of the millions as their first
care, then alone can we claim to have a National Government and
'Nationalisation' will then ensure that the interests of the masses will be taken
care of.
In the absence of such a village based and controlled by Central Government,
'Nationalisation' may lead to the greater exploitation of the 'have nots' by the
'haves'.
For instance, there has been a lot of talk recently about 'Nationalising' the
Airways. These airways, at present, are not within the reach of the villagers.
They do not need them nor are they likely to use them. As it is, at the present
time, the 'haves' own them and use them. So Government control now will
mean the Government will spend its money and though in making 'the Airways'
easily available to the 'haves' while other 'haves' will provide the service.
Aerodromes may have to be constructed and various roads, etc., provided. For
this these private bodies would like to exploit the Government to exploit the
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Economy of Permanence
Government resources and obtain their assistance under the plea of
Government control or 'Nationalisation'. The funds available to the Government
should be earmarked for the provision of facilities for the masses and hence we
cannot divert them for the betterment of airways. Let private enterprises go on
as they have done. Some 'haves' will exploit other 'haves' and later on when
village based National Government comes into existence we shall have time
enough to consider 'Nationalisation' of such services.
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Economy of Permanence
VII. NATIONAL INDUSTRIES
We come to the question of organisation and method to be followed by
industries. We have to bear in mind two main principles in economics. These
are, concentration of wealth and distribution of wealth.
Centralised industries generally act like centrifugal machines. These
concentrate wealth in a few hands. Concentration may be eighter of wealth or
of power. The decentralised industries have the natural tendency of
distributing wealth. Therefore, if we do not want, in our society, concentration
of wealth, then we must take out the centralised industries. Since what we
want is distribution of wealth especially in a poor country like India, we must
decentralise the industries.
There is another way of doing it. Russia has done it. They say that they will
produce wealth in a concentrated form and then distribute it through
government. The danger there lies in the concentration of power, and not in
the concentration of wealth, as in our country. When wealth has been produced
the people who have to redistribute it have the power in their hands. Therefore
it is concentration of power or concentration of wealth, both are evils. In
Russia there is concentration of power, as against concentration of wealth in
America and England. India is a poor country where we have got to produce
wealth, and in the process of production of wealth we have to distribute it. So,
where we want to produce consumpt on goods, we should put centralised
method of production out of court completely.
Place of Centralised Industries: There should be centralised industries only
where they can be in the hands of people who will not have any profit motives
or who will not concentrate the wealth. We shall have to sterilise the
centralised industries of their power of concentrating wealth. How shall we do
that? It must be on a service basis. Electricity, transport, communications, post
and telegraphs, roads all these must be on a service basis and must be run by
government composed of selfless workers. If we want motor cars or aeroplanes,
they must be produced by government. It may be said that such industries, as
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are run by government, are very often wasteful. We must condone a certain
amount of waste. Concentration of wealth is much more wasteful. All these
wars are the result of concentration of wealth and power consequent on
centralisation of industries. Look at the huge amount of wealth that has been
wasted during the last few years.
If we must have centralised industry, we can have it only where we cannot help
it. It is just like a poison. Even poison is sometimes good. For example, you
take quinine. It is a good thing when you take in limited quantities and as
prescribed by a doctor. You put a red label to the effect that it is a poison, and
you take it in small doses. If you want to have a centralised industry that is a
poison for the nation you may have it with a red label, and take it in small
doses as prescribed by the doctor! Otherwise there is danger. Centralised
industries are in their very nature anti-social. Therefore, we have got to limit
their sphere. How do we limit it? Limit it to cases where society requires their
function and the industry itself is of the nature of a monopoly. Take for
example, water-supply. We should let government arrange for water-supply.
We have to allocate to government things which require a long-range view.
Costs and Profits: There are people who talk in terms of cost. They say
centralised industries are good because things can be produced cheap. It is not
always so. Centralised industries can be used with advantage in the case of
public utility concerns, such as Railways, Posts and Telegraphs, Electricity
supply, Irrigation, which are by nature monopolistic; there must not be any
profit motive, but they should be run on a service basis. When the State
undertakes these enterprises the profit motive is eliminated, which an
individual has uppermost in his mind.
Private individuals are actuated by profit motive. Higher the cost, lower the
profit, and lower the cost, higher the profit. This means we cut down cost in
centralised industry. The easiest way to do so is to cut down wages, purchase
raw materials at a cheaper price and effect other economic savings in overhead
charges. Profit is the main motive power. When we are cutting down wages and
the raw materials are purchased cheap, then we make one man who organises