2. Gandhiji as a philosopher
Legacy of Gandhi
Intellectual influences on Gandhi (in
shaping his economic ideas)
Gandhian Economics
Gandhi’s tenets on Economics
Gandhian Economics & Ethics
View on Capitalism
View on Ideal Economy
View on Democratic Decentralization
Village – Unit of decentralization
India’s Development policy about
Panchayat Raj sysytem
Gandhiji’s influence on India’s policy
making
Gandhiji’s role as a planner
CONTENTS
3. Gandhiji as a PHILOSOPHER
Mahatma Gandhi (1869-1948) was not a methodical philosopher but a man of
action and a leader , who commanded considerable influence over men &
society.
He stressed only certain basic values and did not systematically elaborate the essential
philosophical postulations and the sociological, political and economic implications of
his ideas at an advanced intellectual level.
He had emphatically put forward certain fundamental ideas for the
regeneration of man and the reconstruction of society and politics and in
this sense he could be regarded as a moral, social, economic and political
thinker.
4. Gandhi did not receive any formal training in economics, nor did he study
much economics on his own.
Since moral considerations weighed heavily with Gandhi in everything he did,
his economic ideas were no exception.
However, from his scattered writings and pronouncements a consistent body of
knowledge in economics has been carved out which is named as “Gandhian
Economics” and which has contemporary relevance, remarkable originality
and the attributes of an analytical contribution of a high order.
The Legacy of Mahatma Gandhi
5. There are many intellectual influences on Gandhiji. Below ones are most
important among them. They are –
“pastoral romanticism” a la
Rousseau and David Thoreau.
This led him to a belief in the
intrinsic goodness of all men,
including one’s opponents
very much enamoured by Ruskin’s
heterodox doctrine that the wealth
of a nation consisted, not in its
production and consumption of
goods, but in its people.
Remarkable belief in the efficiency
of truth and non violence, which
most likely stemmed from his
familiarity with the (later) writings
of Count Leo Tolstoy.
Influenced by the labour theory of
value of Adam Smith and David
Ricardo, which led him to
emphasise labour as the primary
source of economic value.
Some extent influenced by the
Marxian doctrine of egalitarianism,
and its emphasis on the
“exploitation of labour”
Intellectual influences on Gandhi (In
shaping his Economic ideas)
6. Gandhian economics is a school of economic thought based on the spiritual
and socio - economic principles expounded by Mohandas Gandhi.
It is largely characterised by rejection of the concept of the human being as a rational
actor always seeking to maximize material self-interest that underlies classical
economic thinking
Where Western economic systems were (and are) based on what he called the
“multiplication of wants”
Gandhi felt that this was both unsustainable and devastating to the human spirit.
His model, by contrast, aimed at the fulfilment of needs – including the need for
meaning and community.
Gandhian Economics
7. Gandhi doesn’t give any theoretical model regarding economic
development but gives some basic tenets. They are –
Based on these principles, Gandhiji has given the concept of constructive
work
Contrary to the popular
perception, voluntary reduction of
wants is an indication of
development and not the desire to
satisfy unlimited wants.
Each person is not always bent on
“Maximizing” his/her profit but
wishes that he/she gets enough to
save for a rainy day after meeting
the day to day requirement.
Co-operation and not competition
is a better principle of life.
inappropriate to look down upon
physical labour.
There is latent talent in all
individuals. Each person must
have access to enough resources
so that his/her basic livelihood
needs can be taken care of.
Too much dependence on the
“state” is fatal
Gandhiji’s tenets on Economics
8. Gandhian Economics & Ethics
Gandhian economics do not draw a distinction between economics and ethics. He says
“Economics that hurts the moral well-being of an individual or a nation is immoral,
and therefore sinful. “
In essence, supreme consideration is to be given to man rather than to money.
The first basic principle of Gandhi’s economic thought is a special emphasis on ‘plain
living’ which helps in cutting down your wants and being self - reliant.
Accordingly, increasing consumer appetite is likened to animal appetite which goes the
end of earth in search of their satisfaction.
9. Apart from the use of violence for the attainment of their goal, Gandhi was against the
communistic notion of bringing all the means of production under public ownership.
According to him by doing so, the socialists create enormous concentration of power and
they have not evolved a satisfactory method of dealing with such situation.
The theory of Trusteeship was Gandhi’s answer to the problem on the one hand of
concentration of wealth among the capitalist and on the other concentration of power in
the state.
In a nutshell, the theory of Trusteeship holds that all possessions including one’s talent and
mental excellence belong to the society and those who have these possessions should hold
them in trust for society. His concept of Trusteeship is based on the Isha Upanishad.
Gandhian Economics & Ethics
10. Gandhi was never reconciled to the capitalist system of production and technological
growth.
He criticized the inequities of capitalism at a time when the capitalist economy had
not yet become the dominant aspect of the total economy of India and that indicates his
foresight.
The dominant factor for his opposition against capitalism was that it was based on
the policy of exploitation of labourers.
Gandhi regarded labour force as the most vital factor in the production.
Gandhi was a firm believer in the ideals of socialism, but was thoroughly opposed to
socialism of Marxian type.
Gandhiji’s view on Capitalism
11. According to him the economic constitution of India and, for the matter of that, the
world should be such that no one under should suffer from want of food and
clothing.
In other words, everybody should be able to get sufficient work to enable him
to make the two ends meet.
And this ideal can universally realized only if the means of production of the
elementary necessaries of life remain in the control of the masses.
These should be freely available to all as God’s air and water are or ought to be;
they should not be made vehicle of traffic for the exploitation of others.
Gandhiji’s view on Ideal Economy
12. Gandhi's concept of democratic decentralization bears the stamp of his passionate
belief in non-violence, truth and individual freedom.
He calls it Panchayati Raj or village Swaraj. He wants to see each village a little
republic, self-sufficient in its vital wants, organically and non-hierarchically linked with the
larger spatial bodies and enjoying the maximum freedom of deciding the affairs of the
locality.
Gandhi wanted political power to be distributed among the villages in India.
Gandhi preferred the term ‘Swaraj’ to describe what he called true democracy.
This democracy is based upon freedom. Individual freedom in Gandhi’s view, could be
maintained only in autonomous, self-reliant communities that offer opportunities to the
people for fullest participation.
View on democratic decentralization
13. Gandhi made it very clear that concentration of either economic or political power would
violate all the essential principles of participatory democracy.
To check centralization, Gandhi suggested the institution of village republics both as
institutions of parallel polities and as units of economic autonomy.
Village is the lowest unit of a decentralized system. Politically a village has to be
small enough to permit everyone to participate directly in the decision-making process.
It is the basic institution of participatory democracy.
The technical skills of the villages will be fully developed, there will be no dearth of men
with high degree of skill and artistic talent.
Village – Unit of decentralized
system
14. Gandhian decentralization means the creation of parallel politics in which
people's power is institutionalized to counter the centralizing and alienating forces of the
modem state.
According to Mahatma Gandhi, utilization of the local resources is quite
fundamental to the development of the Panchayat Raj system.
The Panchayats with the Gram Sabhas should be so organized as to identify the resources
locally available for development in the agricultural and industrial sectors.
Each village should be republic, self-sufficient, enjoying maximum freedom for
deciding the affairs of the locality.
Village – Unit of decentralized
system
15. 1952 – 53
Community
Development
Program &
National
Extension
Service
1957
Balwanth
Rai Mehta
Committee
1985 – 86
G.V.K Rao
& L.M.
Shingvi
Committee
India’s development policy about
Panchayat Raj
1947
1992
73rd
Amendme
nt Act
1963
K.Santhanam
Committee
1978
Ashok
Mehta
Committee
• The Gram Sabha or village assembly as a deliberative body to decentralised
governance has been envisaged as the foundation of the Panchayati Raj
System.
•A uniform three-tier structure of panchayats at village (Gram Panchayat),
intermediate (Panchayat Samiti) and district (Zilla Parishad) levels.
• All the seats in a panchayat at every level are to be filled by
elections from respective territorial constituencies.
• Not less than one-third of the total seats for membership
as well as office of
chairpersons of each tier have to be reserved for women.
• Reservation for weaker castes and tribes (SCs and STs)
have to be provided at all levels in proportion to their
population in the panchayats.
16. Phase–I(1947-1965)
His influence is most
evident in the government’s
attitude to small scale
industry. It has been
observed that his concerns
for the village crafts were
conveniently broadened by
Indian planners to include
not only urban crafts but
also small scale units
Phase–II(1966-1984)
Phase–III(after1985)
The complete abandonment
of his economic concepts
really begins with the onset
of structural reforms
initiated in the mid-1980s,
put on firm track in the
early 1990s and moved into
high gear after 1997. To the
newly emerging affluent
class in India (who have
been the major
beneficiaries of the reforms
process), Gandhian
concepts like indigenous
/appropriate technology,
frugality, Swadeshi, etc.
have an anachronistic and
archaic ring to them.
Poverty allevation;
redistribution; Swadeshi
1. Nationalisation of banks
in 1969, (for improving
rural credit delivery and
making a dent on rural
poverty) 2. Monopoly &
Restrictive Trade Practices
,1969 (Controlling the
power of big business) 3.
Garibi Hataao, 1975 4.
Integrated Rural
Development programme,
1979 (provide subsidised
credits to rural households)
Gandhi’s influence on India’s policy
making
17. Leader
• He ensured that
people should not
loose their
energies during
the inter-
movement period.
• Before starting
any movement he
used to
communicate
with people to
guide his next
line of action
System
Developer
• He initiated the
working
committee
concept in
Congress.
• Checked the
Cadre plan in
movements
• Brought the
regular meeting
and review
concept
System
Protector
• He always
ensured that
system should be
followed in all
situations
• Called off the Non
Cooperative
Movement
because people
broke the system.
Manager
• Induced public
participation as
change is meant
for public
• Followed several
management
techniques to
increase self
efficiency
(Capacity
Building)
Performance
evaluator
• He had organized
a team of
evaluators who
used to give their
reports on
behaviour of
Satyagrahee’s,
based on which a
ranking list was
prepared to
analyze leaders in
decentralized
manner
(Decissions on
MIS reports)
Gandhi’s role as Planner
18. Ambedkar, B.R. (1943): “Ranade, Gandhi and Jinnah” in Collected Works of Babasaheb Ambedkar, Vol. 1, Thacker & Co.
Bombay [originally lecture at Deccan Sabha, Poona, 18 January 1940]
Datta, Amlan (1989). An introduction to India’s Economic Development since the Nineteenth Century, Sangam Books,
Calcutta
Gandhi, M. K. (1952): Rebuilding Our Villages, Navijivan Publishing House, Ahmedabad
Gandhi, M.K. (1958-1994) : “ Constructive Programme : Its Meaning and Place” in The Collected Works of Mahatma
Gandhi, Vol. 75 , Ministry of Information & Broadcasting, Government of India [ originally published in 1941]
Johnson, R.L. (2006): Gandhi’s Experiments with Truth: Essential Writings by and about Mahatma Gandhi, Lexington
Books, Mass. USA
Tendulkar, D.G. (1951-54): Mahatma: Life of Mohandas Karmachand Gandhi, (8 volumes) Published by Vithalbhai
Jhaveri & D. G. Tendulkar, Bombay.
Gandhi in the Globalized Context; The Transnational Foundation for Peace and Future Research, Available at
http://:www.transnational.org/forum/meet/2003/Radhakrishnan-Gandhi.html
References
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