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December 1967

Lecture - 4th, on April 25th 1965

-Pt. Deendayal Upadhyaya

Professor Vishvesaraya has said in one of his books, that while considering the system of production one must take into account the seven 'M's. These are man, material, money, management, motive power, market and machine. The skill and ability of the workers or those who should be provided with work must be considered. Easy availability of the required raw material. and the quality and properties of the raw materials available cannot be ignored. We must also think of how much money is available as capital. How this capital can be increased and at what rate? How best it can be utilized for maximum production? How much of it should be put in the fixed assets and how much should be kept in the liquid form? We must also pay attention to the form of power available in the country in addition to the human and animal labour. Wind, water, steam oil, gas, electricity and atomic power can supply the motive power. Of these, which form of power can be obtained in what quantity and without being uneconomic must be thought of while deciding upon our methods of production. In the same way managerial skills are also important and deserve the attention. If the ability to co-ordinate the efforts of a dozen workers is wanting, all of them will remain unemployed. It is also necessary to think of the usefulness of the goods produced to the society. This means that production of any particular commodity cannot be justified economically without the consideration of the market it commands. Taking into consideration all these factors we should design suitable machines. Instead, we find now-a-days that we install the machines first and try to coordinate all other factors afterwards. Other countries of the world did not progress in this fashion. Otherwise new machines would not have been invested. We are importing the machines and hence, we have little knowledge. We shall have to develop a Bharatiya technology.

None of the seven factors is unchangeable. In fact each one keeps constantly changing. Those who are entrusted with the task of planning must think of how the change is directed towards progress, how physical hardship is reduced, and waste of energy is minimized. As an illustration let us take the low productivity of our worker. It can be increased by using machines, and it is necessary to do so. But if the machine is such that requires only a few men to run it, then the rest of the people will be thrown out of employment. If the machine has to be imported from other countries at such a heavy cost that the additional production it causes will be insufficient to make it economic, then such a machine is not suitable to our requirements. Just as to let a part of the installed capacity of a factory remain unutilised is a losing proposition, so also to let the people of this country remain unemployed is a losing proposition. May, this is even worse. Whereas a machine ties up only the capital invested in it in past, the unemployed people have to be fed, which is continuous and unending drain on resources, consumed at double the speed. Therefore instead of the usual exhortation "Every worker must get food", we must think of "Everyone who eats must get work", as the basis of our economy. No doubt charakha has to be replaced by machines but not necessarily automatic machines everywhere. Full employment must be a primary consideration and then the rest of the six factors suit this.

Man's Place In The Economy

The use of manpower and the employment question will have to be thought of in the context of the human being as a whole, as an integral being. The economic theories of the past few centuries and the structure of society based on these theories, have resulted in a thorough devaluation of the human being. His personality is altogether irrelevant to the economic set up. Capitalist economy recognizes only an "economic man", whose all decisions are based entirely on calculations of gain and loss, in terms of material wealth. For this economic man, five rupees are always more than four rupees. He works solely to gain more wealth, and execs to get the maximum gain. For him, just like other commodities, human labour is a commodity to be brought and sold In the market. This is free enterprise. It holds all other restriction and regulations unjust, save the brake of competition. In the race no one is prepared to stop and give a helping land to the weak who is left behind; elimination of the weak is considered just and natural. He is uneconomic, marginal unit, not fit to exist. This is what it advocates. By the elimination of such marginal units, the economic power accumulates in the hands of a few. This is considered normal and natural is capitalist system. But when monopoly is a established, even the check of competition ceases to operates. In such a. situation the incentive resulting from competition is no longer available. Prices are arbitrarily fixed and quality of products deteriorates.

Even as regards the consumer's needs, the capitalist is guided not by the necessities and desires of the consumer. but by his purchasing power. The needs of the wealthy and the well fed are attended to rather than those of the poor and the hungry. As a result where countless varieties of goods are produced for he needs of the wealthy, even the basic necessities of life for the poor become scarce. The centralization and monopolization of reduction totally undermine the influence of the consumer. The markets are so organized that the consumer has to go by standard products. This standardization is on the increase at such a pace that individual preference of the consumer is ignored. Like the books in the library, even human beings are allotted numbers as consumers. The system which boasts of giving highest importance to the individual has ironically destroyed all individuality. Clearly, the capitalist system is incapable of helping the development of an integral human being

Socialist System Is A Reaction

Socialism arose as a reason to capitalism. But even socialism failed to establish the importance of the human being. Socialists contented themselves by merely transferring the ownership of capital in the hands of the State. But the State is even more of an impersonal institution. All the business of the State is conducted by rigid rules and regulations. Generally, there is no place for individual discretion and even where such discretion is allowed, the slightest laxity in the sense of duty and social responsibility on the part of the administrator’s results in corruption and favouritism. The capitalistic system thought merely of the economic man, but left him free in other fields where the could exercise his individuality. The socialist system went much further thinking only of the abstract man. After that, there was no scope for the development of the individual personality based on diverse tastes and abilities. The needs and preferences of individuals have as much importance in the socialist system as in a prison manual. There is no such thing as individual freedom in the socialist system.

State's Claims on Individual

There is no private property in a socialist society. This removes the problems attendants to the institution of private property. However. the incentive for production and conservation of resources and economy in utilization accompany the institution of private property. There has been no alternative arrangement to preserve these. The State is made supreme and sole authority in all matters. Individual citizen is reduced to mere cog in this giant wheel. There is no provisions to inspire the individual to fulfil his role. As Djilas states, the class of old fashioned exploiters has been eliminated, but a new class of bureaucratic exploiter has come into existence. Karl Marx put forward, in his analysis of history, that capitalism contains the seeds of its own destruction. and that communism is a natural and inevitable successor to capitalism.

This concept may be helpful in fostering faith in the communist about their ultimate victory but certainly such a determinist view destroys the urge for reforms and dynamism in man. He is no longer the creator of a new order; he is merely incidental to a predetermined historic process. His task is only to accelerate the process. Therefore, even as he tries to organize workers, he cares little for their welfare, but uses them as mere tools for the revolution. The dialectic materialism of Marx, too, operates only so long as state is note established as supreme after destroying the capitalists. Thereafter, the state puts a stop to the operation of the principle of dialectic materialism. In the name of crushing and counter revolutionaries, the state becomes more and more totalitarian. The day when the state is to wither away yielding place to a stateless society remains a mere dream. In fact according to the Marxist view, to obstruct the process of these antithesis, is itself reactionary. Marx is thus falsified by his own standards.

Both these systems, capitalist as well as communist, have failed to take account of the Integral Man, his true and complete personality and his aspirations. One considers him a mere selfish being lingering after money, having only one law, the law of fierce competition, in essence the law of the jungle; whereas the other has viewed him as a feeble lifeless cog in the whole scheme of things, regulated by rigid rules, and incapable of any good unless directed. The centralization of power, economic and political, is implied in both. Both, therefore, result in dehumanization of man.

Man. the highest creation of God. is losing his own identity. We must re-establish him in his rightful position, being him the realization of his greatness, reawaken his abilities and encourage him to exert for attaining divine heights of his latest personality. This is possible only through a decentralized economy.

We want neither capitalism nor socialism. We aim at the progress and happiness of "Man", the Integral Man.
The protagonists of the two systems fight with 'Man' on the state. Both of them do not understand man, nor do they care for his interests.

Our Economic System

The Objectives of our Economy should be

1.

An assurance of minimum standard of living to every individual and preparedness for the defense of the nation.

2.

Further increase above this minimum standard of living whereby the individual and the nation acquires the means to contribute to the world progress on the basis of its own 'Chiti'.

3.

To provide meanings employment to every able bodies citizens by which the above two objectives can be realized and to avoid waste and extravagance in utilizing natural resources.

4.

To develop suitable machines for Bharatiya conditions (Bharatiya Technology) taking note of the availability and nature of the various factors of production (Seven 'M's).

5.

This system must help and not disregard the human being, the individual. It must protect the cultural and other values of life. This is requirement which cannot be violated except at a risk of great peril.

6.

The ownership, state, private or any other form of various industries must be decided on a pragmatic and practical basis.

These are a few general directions which we must bear in mind while developing our economy. "Swadeshi" and "Decentralization" are the two words which can briefly summarize the economic policy suitable for the present circumstances. Centralization and monopolization have been the order of the day for all these years, knowingly or unknowingly. The planners have become prisoners of a belief that only large-scale centralized industry is economic and hence without worrying about its ill-effects, or knowingly but helplessly, they have continued in that direction. The same has been the fate of "Swadeshi". The concept of "Swadeshi" is ridiculed as old fashioned and reactionary. We proudly use foreign articles. We have grown over independent upon foreign aid in everything from thinking, management, capital, methods of production, technology, etc. to even the standards and forms of consumption. This is not the road to progress and development. We shall forget our individuality and become virtual slaves once again. The positive content of "Swadeshi" should be used as the cornerstone of reconstruction of our economy.

For want of time, I have not touched the natural aspects of economic structure. But one thing is clear that many old institutions will yield place to new ones. This will adversely affect those who have vested interests in the old institutions. Some others who are by nature averse to change will also suffer by efforts of reconstruction. But disease must be treated with medicine. Strength can be gained only from exercise and hard work. Therefore, we still have to discard the status-quo mentality and usher in a new era. Indeed our efforts at reconstruction need not be clouded by prejudice or disregard for all that is inherited from our past. On the other hand, there is no need to cling to past institutions and traditions which have outlived their utility. We have considered what the direction of change should be.

We have in the last four days thought over the integrated from of Humanism. On the basis we shall be able to reconcile nationalism, democracy, socialism and world peace with the traditional values of Bharatiya Culture and think of all these ideals in an integrated form. The mutual conflict among these ideals can be removed and they can supplement mutually. Thereby the "Man can gain his lost status and attain the aims of his life".

We have here discussed the philosophy. But the members of the Bharatiya Jana Sangh are not mere philosophers or academicians. We have set out with the determination to make this nation strong, happy and prosperous through the medium of the Bharatiya Jana Sangh. Therefore, we must carry on practical programs for the nationalist reconstruction on this foundation. We have taken due note of our ancient culture. But we are no archaeologists. We have to intention of becoming the custodians of a vast archaeological museum. Our goal is not merely to protect the culture but to revitalize it so as to make it dynamic and in tune with the times. We must ensure that our nation stands firm on this foundation and our society is enabled to live a healthy, progressive and purposeful life. We shall have to end a number of traditions and set in reforms which are helpful in the development of values and of national unity in our society. We shall remove those traditions which obstruct this process. Whereas one need not mourn the limitations of the human body, one must undergo the required social operation if any part of the body has cancerous growth. There is no need to amputee healthy limbs. If today, the society is gripped with evils like untouchability which lead men to treat other human beings as lower than themselves and thereby threaten the national unity, we shall have to end s such evils.

We shall be required to produce such institutions as will kindle the spirit of action in us, which will replace the self-centredness and selfishness by a desire to serve the nation, which will produce not only sympathy towards our brethren, but a sense of affection and oneness with them. Such institutions can truly reflect our 'Chiti'.

'Chiti' is a nation's soul. The strength and energy activating the nation is called "Virat" and channelled by 'Chiti'. The place of 'Virat" in the life of nation is similar to that of Prana in the body. Just as 'Prana' infuses strength in various organs of the body, refreshed the intellect and keeps body and soul together; so also in a nation, with a strong 'Virat' alone can democracy succeed and the government be effective. Then the diversity of our nation does not prove an obstacle to our national unity. The difference of languages. occupations, etc. are present everywhere. However, when the 'Virat' is awake, diversity does not lead to conflicts and people co-operates with each other like the various limbs of the human body or like the members of a family.

We have to Undertake the task of awakening our nation's 'Virat'. Let us go forward in this task with a sense of pride for our heritage, with a realistic assessment of the present and a great ambition for the future. We wish neither to make this country a shadow of some distant past nor an imitation of Russia or America.

With the support of Universal knowledge and our heritage, we shall create a Bharat which will excel all its past glories, and will enable every citizen in its fold to steadily progress in the development of his manifold latent possibilities and to achieve through a sense of unity with the entire creation, a state even higher than that of a complete human being; to become Narayan from 'Nar'. This is the external divine from of our culture. This is our message to humanity to cross roads. May God give us strength to succeed in this task.

! BHARAT MATA KI JAI !

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Compiled by Amarjeet Singh, Research Associate & Programme Coordinator, Dr. Syama Prasad Mookerjee Research Foundation, 9, Ashok Road, New Delhi - 110001
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