Whenever any country faces difficult situations, challenges, whether it is a political or economical, the intellectuals and politcians at some point or another need to search their own country’s history for the solutions. The historical events, its people and their thoughts, that has shaped the country and its people future, proves to be the vital elements for the solving the current challenges of the country.
Dr. Babasaheb Ambedkar is one such great thinker, leader and intellectual of its time in India who has not only changed the life of millions of untouchables but shaped India as a biggest democratic nation by writing its constitution. What is well known about Dr. Ambedkar is his fights against Caste sytem in India, But what is not known is how Dr. Babasaheb Ambedkar had also Impacted the Indian economy.
Here are some of Dr. Ambedkars thoughts that had great impact on Indian economy.
Agriculture and land reforms.
Dr. Babasaheb Ambedkar had made in-depth study of Indian Agriculture, wrote research articles, organised Seminars and Conferences in order to Solve the problems of agriculture and farmers, also led farmer’s movement. His thoughts on agriculture are found in his article “Small Holdings in Indian and their remidies”(1917)and also in “Status and minorities”(1947).
He mentioned that holdings of lands by few people is an acute problem of Indian agriculture which has various disadvantages, like difficulties in cultivation and utilization and resources, increasing cost, low productivity, inqdequate income and low standard of living. According to Dr. Ambedkar Productivity of agriculture is related to not only with the size of holdings of land but also with other factors such as capital, labour and other inputs. Therefore if capital, or labour etc are not available in adequate quantity and quality, then even a large size land can become unproductive. On the other hand small size land become productive if these resources are available in plenty. With this thought the ‘Land Ceiling Act’ is passed after Independence.
He also mentioned about the slavery and exploitation of Labour bounded under caste system is extremely bad for economical development and fought for its abolition.
His other suggestion for solving agriculture problem are collective farming, economic holding of land or equal distribution of land, Large scale Industrialization, Provision of money, water, seeds and fertilizers by the government, cultivation of waste land by allotting waste land to landless labour, minimum wages to labours, control and regulation of private lenders of loan to farmers.
India’s Currency Problems.
Dr. Babasaheb Ambedkar’s thoughts has a great impact on current Indian currency system. Under British rule when India Govt. was struggling with falling value of Indian Rupee, Dr. Babasaheb Ambedkar In 1923 wrote ‘The problem of Rupee, its origin and solution. He focused his studies and research on the condition of Indian currency during British India. He wrote research thesis on it. In his thesis, he argued that the gold exchange standard does not have stability. The developing countries like India can not afford gold exchange standards, and besides this, it also increases the risk of inflation and price rise. He proved with statistics data and reasons how the Indian Rupee has lost its value and hence the purchasing power of Rupee is falling. He suggested that govt. deficit should be regulated and money should have a circular flow. He also suggested more attention should be given on price stability than exchange rate stability.
This book eventually lead to the establishment of Reserve Bank of India.
Views of Taxation policy.
Dr. Ambedkar expressed his views on taxation in the manifesto of ‘Swatantra Majdur Party’ in 1936. He opposed Land Revenue and its system and their taxes as the burden of these taxes are significant on the poor sections of the society. He suggested somes taxes as follows.
Tax should be imposed on payers capacity and not on income.
Tax should be less on poor and more on rich.
Tax exemption should be given upto certain limit.
There should be equality between different section in tax imposition.
Tax should not lead to lowering the standard of life of the people.
Land Revenue tax should be more flexible and should not levy on agricultural land.
He suggested that Indian tax system at that time was based on discrimination and inequality.
Nationalisation of Industries.
Dr. Babasaheb Ambedkar thought that fast development of India is impossible without Industrialization. According to him creating large scale employment produces essential goods for mass consumption. It utilizes raw materials, reduces foreign dependence and increasing security to labour, ultimately leads to the overall economical development of the country. The private sector industries can not make big industries for want of large scale investments. So, government should come forward to start large scale industries .The smaller industries should be kept in private sector. The insurance and transport companies should be nationalized. Rights to strike should be given to labourers. After the independence the industrial policy of the Indian government is in keeping with Dr. Ambedkar’s expectations.
Strategy for economic development.
Dr. Ambedkar believed that the strategy for India’s Economic development should be based on Eradication of property elimination of inequities and ending exploitation of masses. He emphasized exploitation has many dimensions In fact in the India, social or religious exploitation is no less Oppressive than economic exploitation and it should be eliminated.
Democratic state Socialism.
Dr. Babasaheb Ambedkar has presented a Democratic State Socialism to the constitution committee. The main points of it are
1) All basic industries should be owned and run by the state.
2) Insurance and agriculture should be nationalized and managed by the state.
3) Maintenance of Productive resources by state.
4) Just Distribution of Common produce.
5) Provision for compensation of land or industry acquisition in the form of bonds.
6) The distribution of village and among the families in a village for collective farming
7) No discrimination as landlord, tenants and agriculture labours.
8) All agriculture input like capital, seeds fertilizers etc would be provided to collective farming by the government.
9) Distribution of agriculture income only after payment of land revenue tax.
10) Punishment according to rules who do not follow
Dr. Ambedkar wanted this state socialism to be inculded in the constitution so that no legilature could change or reject it. But it could not come into existance as the constitution committee rejected it. It suggest that the conditions of labour, farmers and poor people would have different if this has not been rejected.
Free Enterprises Economy.
Surprising enough Dr. Ambedkar had already suggested free economy, globalization, liberalization and privatization as early as in 1923, Recently Indian government has adopted this policy. In this repect Dr. Ambedkar was a century a head. He had stressed that the value (Price)of a rupee must be kept stable if the policy of free economy is to be successful.
Population Control – Family Planning
Dr. Babasaheb Ambedkar said that the control of the country’s economy is impossible if the population is not controlled. Hence he forcefully argued for population control and family planning in India. Later on in keeping with his views the govenment of India has adopted family planning as a national policy.
Economic Upliftment of Indian Women.
Dr. Babasaheb Ambedkars contribution to economic development and progress of women is significant. According to him, participation of women in the economic development is impossible without developing their social status and equality. But due to bad economic conditions of women in India, India’s economic progress is hampered. So, it is important to improve the economic condition of women and give them equal rights and freedom of occupation.
Concept of Human Capital.
Dr. Ambedkar argued that concept of human capital in india is useless if the poorer and down trodden untouchable dalits are not recognized by other classes as human being with equal social prestige and religious basis. It is therefore impossible to use this human capital in the economic development of India.
Opposition to Hindu Economy.
Dr. Ambedkar denounced the Indian economy as Hindu dominated economy. He came out with hard hitting critique of this Hindu economy. He showed logical flaws in it. Caste System is not merely the division of labour but a division of labourers also. It is not based on natural aptitudes or skills. It is a major abstacle to economic development. It reduces mobility leading to inefficient production. Untouchability is worse than slavery. It is a system of exploitation.
Hence It is evident that Dr. Babasaheb Ambedkar’s concepts of family planning, uplittment of women and human capital and many others are important contribution to the development of the Indian economy. as the existing laws and reforms land ceiling Act, minimum wages Act, Distribution of surplus land etc are not effective it is essential to reconsider them in the context of Dr. Ambedkar’s perspective. Also as current scenario of Indian economy, inflation, farmer conditions, India’s large young labour force not being fully utilised for the economic development , we need to reconsider the thoughts of Dr. Babasaheb Ambedkar and again frame our economic policies towards better economical growth of India.