Desi-alternative to capitalism and socialism

Shreenesh Raman

A desi economist: Img REDIFF.COM

Capitalist and Socialist ideas and theories are warring cousins fighting for control over money and power, said S Gurumurthy during a power talk session at SASTRA University Thanjavur on Saturday.

Four centuries ago the socialist ideas were built upon the Anabaptist movement led by John of Leiden of Munster, West Germany. Later the modern world saw the collapse of USSR and other socialist state, leading to adoption of Capitalism known as the only alternative.

Considering the flaws which come to limelight during the USSR collapse and economic crisis, he said we need to think of continuing with the savings based economy. Elaboraing further, he said Indian women played a pivotal role in transition to modern market. On the flip side they decline adopt changes and backed savings economy, said S Gurumurthy.

Recalling the ancient Indian sage Charuvaka’s liberal society theory, he said market condition in the US is similar to the theory of Charuvaka who lived 5000 years ago. He conceptualized the modern economics theories of debt and refinance. There is no need to return debt money to lenders and the society is free and liberal. However, India being a mature civilization ignored the theory and went ahead.

The Capitalists consider market as God and the communist consider party as God, strikingly both methods care the least about the human values and cultural link with the society and the state, he said.
There is always a theory of contradiction, to put in simple terms, Marx theory is based on thesis and antithesis leading to synthesis. However, the In Adam Smith’s Capitalism the market entered every kitchen and bedrooms of a home and ruined the family value system.

Conservatism and Savings economy
However, in India we still believe in the culture based and not market based, though various government pundits’ advice people to adopt market driven economy which ultimately proved to be a disastrous trap during the 2008 financial meltdown.

He recalled the moments of Manmohan Singh’s term as the finance minister when he requested the help from world renowned economist Jagdish Bhagwati on methods to switch from savings economy to credit economy. The average savings to GDP ratio was around 26 percent, meanwhile the country slowly progressed in its liberalization path, Indian women playing a pivotal role in the economy decided to stick with the savings economy and the savings ratio raised above 35 percent.

Market affecting Family
The US economy during the meltdown recorded a massive divorce rate leading to 51 percent of children with single parents. The family value in the society was lost entirely in the western economy, he said. Alan Greenspan, Economist was behind the 2008 melt down as he headed a group of economist with deregulation and no savings theory. Abundant availability of credit and over consumption reached saturation leading to collapse of family structure followed by banks and on later stage the entire economy of the US.

Due to the collapse of the US, the damage got exported to other western economies, luckily in India and other East Asian economies survived the serious economic jolt. Further citing a Goldman Sachs 2010 report on India, Gurumurthy said India won’t need a single dollar as we can generate more than $ 800 Billion every year through savings. We can invest more than $ 1 Trillion in infrastructure and other utilities without the so-called FDI investment, he said.

“Markets must not be allowed to reach our bedroom and kitchen,” he said. World markets were exploited as every family in US was investing in the market making it a large scale gambling. However in India according to a planning commission report, we depend on the 47000 markets (Sandhai) present in rural hearts of the country. More than 90 percent of commodity and financial transactions take place in these rural markets and will continue to do so despite the Retail FDI threat.

The economist said, India is a unique market and needs lot of understanding before starting to experiment. Neither the Communist nor the Capitalist can gain control of the market and the society, he said. Advising the young students to read more literature instead of the so-called modern economics, he said every culture is a treasure trove and we must spend time to discover it.

Source: Express News Service


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