Tuesday, November 20, 2018

Deendayal Upadhyaya - Economic Policy Prescriptions - Implementation Suggestions




Philosophy of Deendayal Upadhyaya


Deen Dayal Upadhyay - Integral Humanism - Part 1

Quotes of Pandit Deendayal Upadhyaya

http://deendayalupadhyaya.org/home.html

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Deendayal Upadhyaya -   Economic Policy Prescriptions


My argument  is that the policy prescriptions made by Shri Deendayal in his lecture entitled “Economic Structure Suited to National Genius” are logical and can be applied without any great obstacles. No doubt as Shri Deendayal himself points out every economic action based on policy guidelines has to be undertaken based on socio-economic cost benefit analysis. The action has to be based on facts we call data and analysis that tells us that there is economic benefit to the society.

The important points made are:

1. The economic system must help in the development of every human being (who is born ignorant and helpless) into God-like being (Divine being). As we know, each of us start as an infant and become a person like sanyasi who desires less from the people around but does lot for the society. No doubt in the last stages of life, most of the persons may not be able to do anything. That is why people have to start helping others as soon as possible and increase the quantity to the highest level when they have the energy in their body.

2. Economic system of the nation has to be designed to provide all human necessities of the population and goods and services required to protect the nation from aggressors. In addition to these,  there has to be objective of helping people of other nations also.

3. Production system has to understand the limitation of the nature and only milk it and leave it in an able state to provide future generations also the resources. The biodiversity in nature that keeps certain desirable properties of the nature in proper quantities has to be understood and preserved.

4. In the production system only a limited number work and they have to provide all the facilities to the remaining population. Children, old people, housewives have to be provided all the facilities required by employed persons. So the system has to recognize that people with ability, work and provide to all. A man works not only for his bread alone, but also to provide for the needs of all others who are dependent on him.

5. Education is compulsory for all children. The economic system has to involve both family members and society to see to it that children are provided with adequate education. Education is a social responsibility along with it being the responsibility of parents.

6. Adequate medical facilities have to be there in the economic system and even free medical treatment has to be provided.

7. Everybody who wants to work must find employment in the economic system.

8. Capital formation has to take place and it will be good if every person can see the capital that is formed due to his effort. When the capital formed due to a person is credited to his account only, he will not feel that he is being exploited by people creating capital. Therefore a system is to be designed that accumulates  a certain amount of capital in the account of every person who is working.

9. We have to employ machines to the extent we relieve workers from the burden and increase productivity. Machines should not replace labour and make them unemployed. Buying and installing machines have to be planned in such a way that they do not displace existing workers. New employment must come up with new investment as needed by the society.

10. Seven ‘M’s are to be properly understood and employed optimally in the production system. These are 1. Man  2. Material 3. Money  4. Management  5. Motive power  6. Market and 7. Machine.

11. The ownership of capital can be with the state, individuals or any other entity based on pragmatic or economic analysis.

12. Swadeshi and Decentralization are the two words that characterise the economic system to be designed for India.

Swadeshi means increase or improvement of all parameters of our Swadesh. Some of these  parameters are GDP, National Income, Per capita income, literacy rate, life expectancy etc. Decentralization of power of allocating resources is required to ensure effectiveness and also efficiency. According to my studies, India needs to invest Rs. 55 lakh crore in 2016-2017. This means on an average investment of Rs. 10,000 crore has to take place in every parliamentary constituency. Lok Sabha members are the representatives of people interacting with the political executive as well as public administrative service executives. They have to take up the task of facilitating this investment target in the constituency. They have to arrange for interactive sessions with other representatives of people, mayors, municipal chairmen, panchayat presidents, local organizations belonging to agriculture, industry, services,  academicians and researchers to identify investment opportunities and set up organizations to increase production of goods and services. There is clear existing  opportunity for MPs and MLAs to take initiative and guide development in a decentralized manner in the country. I think, as a part of NITI Ayog budget, each MP is given say Rs. One crore per year to organize development related seminars and publish its proceedings in print, broadcast and online media. Such an activity makes discussion related to development a local issue and people come to know of their role in providing themselves with goods and services through various special organizations and their family production units.

Deendayalji concluded his lecture by saying that we have to revitalize our culture to make it dynamic and in tune with the times (Yuganukul) so that our society is enabled to live a healthy, progressive and purposeful life. We have to produce such institutions as will kindle a spirit of action in us.

Let us turn our attention to analytical imperatives suggested by Deendayalji.

Machine: A machine developed internally or imported must provide economic return. Machines have to be brought only after proper economic analysis that indicates adequate expected profit.

Idle machine is losing proposition to an industrialist. Similarly idle manpower is losing proposition to the society. Full employment of all willing people of the society has to be the primary objective of economic planning and technology choices have to be made with full employment as a constraint. There has to be advance planning for the skills required for the technologies to be implemented. You should not keep your recently acquired machines idle because required skilled manpower is not there. You should not bring foreign technicians.

Availability of raw materials has to be assessed and then only investment decisions are made to optimally utilize available resources.

Capital formation has to be planned. Available capital has to be appropriately allocated to fixed capital and working capital.

Economic energy forms are to be used based on their availability. Energy productivity analysis is to be done and energy input has to be minimized.

We have to educate and  develop managers/leaders.  If we cannot develop people who can coordinate at least a dozen people, all other resources remain underutilized and we will underperform other nations.

Good understanding of the consumers’ requirements has to be there in the economic system. The economic analysis has to be based on the preferences indicated by the people.

Bharatiya technology has to be developed. Technology suited to optimal utilization of our resources subject to the constraint of full employment of persons with the desire to work is Bharatiya technology. Swadeshi ideal demands that we develop and employ Bharatiya technology.

I feel the policy prescriptions made by the proponents of Ekatma Manav Darshan are practical and productive.  We need to apply them in our economic practice at microeconomic level and ask the representatives of people and the politicians in government to implement them in macroeconomic decision making. It is only through writing memorandums and engaging in dialogue process that we can enrich the economic thought based on Ekatma Manav Darshan and also come across difficulties likely to come up during implementation.


New
Suggestions for Implementing the 12 Prescriptions


1. The economic system must help in the development of every human being (who is born ignorant and helpless) into God-like being (Divine being). As we know, each of us start as an infant and become a person like sanyasi who desires less from the people around but does lot for the society. No doubt in the last stages of life, most of the persons may not be able to do anything. That is why people have to start helping others as soon as possible and increase the quantity to the highest level when they have the energy in their body.

Suggestion for Implementation

In the society it is to be emphasized that every individual has to take care of self interest as well as social interest. Man is a social animal because he takes care of social interest.  As a consumer, every many takes care of self interest as well as social interest. He maximizes a combination of self interest and social interest.

2. Economic system of the nation has to be designed to provide all human necessities of the population and goods and services required to protect the nation from aggressors. In addition to these,  there has to be objective of helping people of other nations also.

Suggestion for Implementation

Every year, the GDP of the country is analysed and shortages are identified and actions are initiated to make corrections in the next year.

3. Production system has to understand the limitation of the nature and only milk it and leave it in an able state to provide future generations also the resources. The biodiversity in nature that keeps certain desirable properties of the nature in proper quantities has to be understood and preserved.

Suggestion for Implementation

A measure of the degradation of the nature is developed, measured and reported so that we understand when there significant degradation and take steps to alter production and consumption.

4. In the production system only a limited number work and they have to provide all the facilities to the remaining population. Children, old people, housewives have to be provided all the facilities required by employed persons. So the system has to recognize that people with ability, work and provide to all. A man works not only for his bread alone, but also to provide for the needs of all others who are dependent on him.

Suggestion for Implementation

The salary structures of individuals have to reflect his obligation to his family members and to the society.

5. Education is compulsory for all children. The economic system has to involve both family members and society to see to it that children are provided with adequate education. Education is a social responsibility along with it being the responsibility of parents.

Suggestion for Implementation
Education allowance is specified in the salary structures of people so that as parents they realize the obligation to spend it on their child's education.

6. Adequate medical facilities have to be there in the economic system and even free medical treatment has to be provided.

Suggestion for Implementation 
Medical services are given special emphasis in GDP analysis

7. Everybody who wants to work must find employment in the economic system.

Suggestion for Implementation

8. Capital formation has to take place and it will be good if every person can see the capital that is formed due to his effort. When the capital formed due to a person is credited to his account only, he will not feel that he is being exploited by people creating capital. Therefore a system is to be designed that accumulates  a certain amount of capital in the account of every person who is working.

Suggestion for Implementation
Workers can be made financial capital owners through various schemes. Some workers or technicians even today become capital owners by producing some equipment and giving it on rent (hire purchase or lease). Like bonus, we can create capital component in compensation.

9. We have to employ machines to the extent we relieve workers from the burden and increase productivity. Machines should not replace labour and make them unemployed. Buying and installing machines have to be planned in such a way that they do not displace existing workers. New employment must come up with new investment as needed by the society.

Suggestion for Implementation
Allow Industry 4.0 Technology in New Units in Backward Locations
Allow building new plants with Industry 4.0 Technology in backward industrial locations up to a cumulative capacity of 10%
Remove the Idea of Job Losses
http://guide-india.blogspot.com/2018/07/allow-industry-40-technology-in-new.html

10. Seven ‘M’s are to be properly understood and employed optimally in the production system. These are 1. Man  2. Material 3. Money  4. Management  5. Motive power  6. Market and 7. Machine.

Suggestion for Implementation
In the economic system, research and education in science, engineering and  management of each resource used in the economy has to take place. It is a service in the economy and it has to happen adequately.

11. The ownership of capital can be with the state, individuals or any other entity based on pragmatic or economic analysis.

Suggestion for Implementation
The role of private individuals, state (social action at control institution level), and cooperatives (social productive institutions) has to be recognized and various types of organizations are to be used appropriately. Management models and practices are to be developed for each type of ownership.

12. Swadeshi and Decentralization are the two words that characterise the economic system to be designed for India.


Swadeshi
Suggestion for Implementation
Focus on India: 20 Trillion Dollar Economy  by 2047


Decentralization
Suggestion for Implementation
Constituency Domestic Product - Role of MPs and MLAs in CDP Growth



Comments and Suggestions from Shri Ravindra Mahajan, An accomplished Scholar and Author on Deendayal's Philosophy and Ekatma Manav Darshan


Books by Shri Ravindra Mahajan

National Policy Studies in the light of Ekatma Manav Darshan, Center for Integral Studies and Reserach, Pune, 2013

Ekatma Manav Darshan - Vichar Sangrah, Bharatiya Vichar Manch, Ahmedabad, 2014

Prescription 1 - Upliftment of the Human to Divine - Self interest to Social interest
Supplementary points – 1 Generally self-interest and social interest go together. If there is some clash social interest deserves priority. 2 Desirable social should be put forward to all and individual goals  should be set by the individuals for themselves in the light of what is desired, possible and can be aimed)


Prescription 2 - Production in society
Supplementary points – 1 Use word basic necessities, 2 Define these after discussion.


Prescription 4 - Production by some for many
Supplementary points – 1 The individual does need meaningful work and hence, as far as possible, design of work in every establishment has to be to make is useful and satisfying.

Prescription 5 - Education
Supplementary points – 1 Education is the best gift parents and society gives to an individual. 2 It should be affordable and free for vulnerable sections of society. 3 Burdening students with high fee to make educational institution self-supporting or making it a business hurts everybody and is counterproductive.

Prescription 6 - Medical and Health Facilities
Supplementary points – 1 Emphasize ‘prevention’ than ‘treatment’ of disease. 2 Education should stress healthy ahar, vihar and above all vichar. 3 Encourage charitable institutions to provide affordable healthcare to counter menace of high-cost treatments.


Prescription 7 - Employment 
Supplementary points – 1 Employment - both wage and self-employment – should become the central theme of planning and development instead of it being a by-product as at present.

Prescription 9 - Use of Machines
Supplementary points – 1 Emphasis should be on machines operated by individual in the family. 2 R&D should be oriented towards increase of individual productivity through systems like 3D printing machines and use of digital tech for decentralized  component manufacture in homes, 3 Can present giant factories producing components or small items can be economically dispersed in homes?

I thank shri Ravindra Mahajan for going through the article and endorsing it by giving additional suggestions to make ideas more useful to the society.





Economic Ideas of Pandit Deendayal Upadhyaya

Front Cover
Deep and Deep PublicationsJan 1, 1999 - 167 pages










https://books.google.co.in/books?id=Y6BuFhAGQtYC

PhD Thesis

Socio political and economic ideas of Deendayal Upadhyaya -  A study of integral humanism

Researcher: Kumar, Suresh,  2003
http://shodhganga.inflibnet.ac.in/handle/10603/120572

India Information Blog - 2.5 Million Page Views - 15 November 2018

https://guide-india.blogspot.com/2018/11/25-million-page-views-15-november-2018.html



Updated on 21 November 2018, 15 November 2018

2 comments:

  1. After reading above article I feel deendayal upadhyayji observes that "Capitalist economy recognises only an ‘economic man', whose all decisions are based entirely on calculations of gain and loss, in terms of material wealth. According to Indian tradition whenever a person visits our house he is treated as God अतिथिदेवो भव. We offer him what he wants and we get satisfied with what is available. But According to Deendayal upadhyayji both socialists and capitalists believe in Western technology and machinery. He emphasizes, "The Indian system calls for a blend of the two ... We are individualists and also stand for the society. Deendayal upadhyayji also reminds us of India's age-old heritage of man's conception. He says that our culture and tradition tells us that man is not merely a repository of material desires and needs. Instead, he is a mighty spiritual being who has assumed a material body.

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