Economic Policies of Mahatma Gandhi: Decentralization and State Independence
The concept of a self-reliant village economy, advocated by Mohandas Karamchand Gandhi, known as Mahatma Gandhi, has been instrumental in shaping the socio-economic fabric of modern India. His vision of decentralized production and self-reliance, rather than relying on large-scale industrialization, has enduring relevance even today.
Decentralization vs. Mass Industrialization
At the core of Gandhi's economic policies was the idea of decentralization. He firmly believed that promoting small-scale industries and localized production would prevent large-scale unemployment. This stands in contrast to the mass industrialization advocated by leaders like Subhash Chandra Bose. While large-scale industrialization can boost GDP and create significant employment opportunities, it can also lead to job displacement in traditional industries and regional disparities.
Gandhi's vision of a decentralized economy was rooted in his observations of industrialization's impact. He recognized that mass production, while profitable, could lead to high unemployment, particularly in rural areas where weaving was a significant source of employment and income.
The Case Against Mass Industrialization
Gandhi's concerns about mass industrialization were not merely theoretical. One of the clearest examples of this was his experience during the Round Table Conference in Manchester. During his stay at the Manchester Labor Colony, he shared his vision and faced questions from workers about his perceived role in causing unemployment. His answer highlighted the stark economic disparities:
His famous reply was that while unemployment might be a temporary inconvenience for the laborers in Manchester, in India, it was a matter of life and death. The allowance given to unemployed workers in Manchester was far less than the earnings of a common weaver in India when they had work.
This incident served as a stark reminder of the poverty and unemployment that could arise from large-scale industrialization.
The Historical Context
To fully appreciate Gandhi's economic policies, it is crucial to understand the historical context. After the Plassey Battle in 1757, India was the wealthiest country in the world, with 24% of the global GDP. Bengal, in particular, was the wealthiest state in India. However, a series of famines in the early 1770s, particularly between 1761 and 1771, led to the death of millions of people due to hunger. This stark reality underscores the impact of colonial policies on the agricultural and weaving industries, which were historically significant employers and revenue generators.
During the British colonial era, the British imposed heavy import duties on Indian goods, including handkerchiefs, to discourage their import. This move was justified as the superior quality of Indian textiles made it difficult for British mills to compete. The British then used policies such as forced export of raw cotton and creating a market for their factory products to render countless weavers jobless.
The consequences were dire, as the loss of employment and income led to widespread unemployment and poverty, contributing to the famines. To exacerbate the situation, local intermediaries and businesspeople forced their mill products into the market, leading to further job losses and economic hardship.
Gandhi's Broader Vision
Beyond his economic policies, Gandhi's vision extended to other areas such as the removal of untouchability, social equality, and political reforms. His focus on economic independence was deeply intertwined with these broader socio-political goals. He believed that true independence could only be achieved through a self-reliant and equitable economy.
Interestingly, many developed nations today have turned towards greater protectionism, reflecting a shift towards decentralized and local economies. This move underscores the relevance of Gandhi's approach in the context of the modern global economy.
Conclusion
In conclusion, Gandhi's economic policies emphasized decentralization and self-reliance. By promoting small-scale industries and local production, he aimed to prevent large-scale unemployment and promote equitable economic growth. His vision, though seemingly quieter and more localized, had profound implications for a nation struggling to find its place in the global economy.