Gandhian economics
Encyclopedia
Gandhian economics is a school of economic thought
based on the socio-economic principles expounded by India
n leader Mohandas Gandhi. It is largely characterised by its affinity to the principles and objectives of nonviolent humanistic socialism
, but with a rejection of violent class war
and promotion of socio-economic harmony. Gandhi's economic ideas also aim to promote spiritual development and harmony with a rejection of materialism
. The term "Gandhian economics" was coined by J. C. Kumarappa
, a close supporter of Gandhi.
writer Henry David Thoreau
. Throughout his life, Gandhi sought to develop ways to fight India's extreme poverty, backwardness and socio-economic challenges as a part of his wider involvement in the Indian independence movement
. Gandhi's championing of Swadeshi and non-cooperation
were centred on the principles of economic self-sufficiency
. Gandhi sought to target European-made clothing and other products as not only a symbol of British colonialism
but also the source of mass unemployment and poverty, as European industrial goods had left many millions of India's workers, craftsmen and women without a means of living. By championing homespun khadi
clothing and Indian-made goods, Gandhi sought to incorporate peaceful civil resistance as a means of promoting national self-sufficiency. Gandhi led farmers of Champaran and Kheda
in a satyagraha
(civil disobedience
and tax resistance
) against the mill owners and landlords supported by the British government in an effort to end oppressive taxation and other policies that forced the farmers and workers and defend their economic rights. A major part of this rebellion was a commitment from the farmers to end caste discrimination and oppressive social practices against women while launching a co-operative effort to promote education, health care and self-sufficiency by producing their own clothes and food.
Gandhi and his followers also founded numerous ashram
s in India (Gandhi had pioneered the ashram settlement in South Africa
). The concept of an ashram has been compared with the commune
, where its inhabitants would seek to produce their own food, clothing and means of living, while promoting a lifestyle of self-sufficiency, personal and spiritual development and working for wider social development. The ashrams included small farms and houses constructed by the inhabitants themselves. All inhabitants were expected to help in any task necessary, promoting the values of equality. Gandhi also espoused the notion of "trusteeship," which centred on denying material pursuits and coveting of wealth, with practitioners acting as "trustees" of other individuals and the community in their management of economic resources and property. Contrary to many Indian socialists and communists, Gandhi was averse to all notions of class warfare and concepts of class-based revolution, which he saw as causes of social violence and disharmony. Gandhi's concept of egalitarianism
was centred on the preservation of human dignity rather than material development. Some of Gandhi's closest supporters and admirers included industrialists such as Ghanshyamdas Birla
, Ambalal Sarabhai
, Jamnalal Bajaj
and J. R. D. Tata
, who adopted several of Gandhi's progressive ideas in managing labour relations while also personally participating in Gandhi's ashrams and socio-political work.
. Accordingly, increasing consumer appetite is likened to animal appetite which goes the end of earth in search of their satisfaction. Thus a distinction is to be made between ' Standard of Living
’ and ’Standard of Life’, where the former merely states the material and physical standard of food, cloth and housing. A higher standard of life, on the other hand could be attained only if, along with material advancement, there was a serious attempt to imbibe cultural and spiritual values and qualities.
, decentralization
of economic activities, labour intensive technology and priority to weaker sections. Gandhi claims that to be non-violent an Individual needs to have a rural mindedness. It also helps in thinking of our necessities of our household in terms of rural mindedness. The revival of the economy is made possible only when it is free from exploitation, so according to Gandhi industrialization on a mass-scale will lead to passive or active exploitation of the people as the problem of competition and marketing comes in. Gandhi believes that for an economy to be self-contained, it should manufacture mainly for its use even if that necessitates the use of modern machines and tools, provided it is not used as a means of exploitation of others.
” which centered on denying material pursuits and coveting of wealth, with practitioners acting as “trustees” of other individuals and the community in their management of economic resources and property. Under the Gandhian economic order, the character of production will be determined by social necessity and not by personal greed. The path of socialism should only be through non-violence and democratic method and any recourse to class-war and mutual hatred would prove to be suicidal.
) developed into popular symbols of nationalism
and patriotism. India's first prime minister
, Jawaharlal Nehru
was a socialist as well as a close supporter of Gandhi. While Nehru was influenced by Gandhi's aversion to the brand of socialism practised in the Soviet Union
, he was also an exponent of industralisation and critical of Gandhi's focus on rural economics.
Gandhian activists such as Vinoba Bhave
and Jayaprakash Narayan
were involved in the Sarvodaya
movement, which sought to promote self-sufficiency amidst India's rural population by encouraging land redistribution, socio-economic reforms and promoting cottage industries. The movement sought to combat the problems of class conflict, unemployment and poverty while attempting to preserve the lifestyle and values of rural Indians, which were eroding with industrialisation
and modernisation. Sarvodaya also included Bhoodan, or the gifting of land and agricultural resources by the landlords (called zamindar
s) to their tenant farmers in a bid to end the medieval system of zamindari. Bhave and others promoted Bhoodan as a just and peaceful method of land redistribution in order to create economic equality, land ownership and opportunity without creating class-based conflicts. Bhoodan and Sarvodaya enjoyed notable successes in many parts of India, including Maharashtra
, Gujarat, Karnataka
and Uttar Pradesh
. Bhave would become a major exponent of discipline and productivity amongst India's farmers, labourers and working classes, which was a major reason for his support of the controversial Indian Emergency (1975–1977). Jayaprakash Narayan also sought to use Gandhian methods to combat organised crime, alcoholism
and other social problems.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
based on the socio-economic principles expounded by India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
n leader Mohandas Gandhi. It is largely characterised by its affinity to the principles and objectives of nonviolent humanistic socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
, but with a rejection of violent class war
Class conflict
Class conflict is the tension or antagonism which exists in society due to competing socioeconomic interests between people of different classes....
and promotion of socio-economic harmony. Gandhi's economic ideas also aim to promote spiritual development and harmony with a rejection of materialism
Materialism
In philosophy, the theory of materialism holds that the only thing that exists is matter; that all things are composed of material and all phenomena are the result of material interactions. In other words, matter is the only substance...
. The term "Gandhian economics" was coined by J. C. Kumarappa
J. C. Kumarappa
J. C. Kumarappa was an Indian economist and a close associate of Indian leader Mahatma Gandhi...
, a close supporter of Gandhi.
Gandhi's economic ideas
Gandhi's thinking on socio-economic issues was greatly influenced by the AmericanUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
writer Henry David Thoreau
Henry David Thoreau
Henry David Thoreau was an American author, poet, philosopher, abolitionist, naturalist, tax resister, development critic, surveyor, historian, and leading transcendentalist...
. Throughout his life, Gandhi sought to develop ways to fight India's extreme poverty, backwardness and socio-economic challenges as a part of his wider involvement in the Indian independence movement
Indian independence movement
The term Indian independence movement encompasses a wide area of political organisations, philosophies, and movements which had the common aim of ending first British East India Company rule, and then British imperial authority, in parts of South Asia...
. Gandhi's championing of Swadeshi and non-cooperation
Non-cooperation movement
The non-cooperation movement was a significant phase of the Indian struggle for freedom from British rule which lasted for years. This movement, which lasted from September 1920 to February 1922 and was led by Mohandas Gandhi, and supported by the Indian National Congress. It aimed to resist...
were centred on the principles of economic self-sufficiency
Self-sufficiency
Self-sufficiency refers to the state of not requiring any outside aid, support, or interaction, for survival; it is therefore a type of personal or collective autonomy...
. Gandhi sought to target European-made clothing and other products as not only a symbol of British colonialism
British Raj
British Raj was the British rule in the Indian subcontinent between 1858 and 1947; The term can also refer to the period of dominion...
but also the source of mass unemployment and poverty, as European industrial goods had left many millions of India's workers, craftsmen and women without a means of living. By championing homespun khadi
Khadi
The term khādī or khaddar means cotton. khādī is Indian handspun and hand-woven cloth. The raw materials may be cotton, silk, or wool, which are spun into threads on a spinning wheel called a charkha. It is a versatile fabric, cool in the summer and warm in the winter...
clothing and Indian-made goods, Gandhi sought to incorporate peaceful civil resistance as a means of promoting national self-sufficiency. Gandhi led farmers of Champaran and Kheda
Champaran and Kheda Satyagraha
The first Satyagraha revolutions inspired by Mahatma Gandhi in the Indian Independence Movement occurred in Kheda district of Gujarat and the Champaran district of Bihar between the years of 1918 and 1919...
in a satyagraha
Satyagraha
Satyagraha , loosely translated as "insistence on truth satya agraha soul force" or "truth force" is a particular philosophy and practice within the broader overall category generally known as nonviolent resistance or civil resistance. The term "satyagraha" was conceived and developed by Mahatma...
(civil disobedience
Civil disobedience
Civil disobedience is the active, professed refusal to obey certain laws, demands, and commands of a government, or of an occupying international power. Civil disobedience is commonly, though not always, defined as being nonviolent resistance. It is one form of civil resistance...
and tax resistance
Tax resistance
Tax resistance is the refusal to pay tax because of opposition to the government that is imposing the tax or to government policy.Tax resistance is a form of civil disobedience and direct action...
) against the mill owners and landlords supported by the British government in an effort to end oppressive taxation and other policies that forced the farmers and workers and defend their economic rights. A major part of this rebellion was a commitment from the farmers to end caste discrimination and oppressive social practices against women while launching a co-operative effort to promote education, health care and self-sufficiency by producing their own clothes and food.
Gandhi and his followers also founded numerous ashram
Ashram
Traditionally, an ashram is a spiritual hermitage. Additionally, today the term ashram often denotes a locus of Indian cultural activity such as yoga, music study or religious instruction, the moral equivalent of a studio or dojo....
s in India (Gandhi had pioneered the ashram settlement in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
). The concept of an ashram has been compared with the commune
Commune (intentional community)
A commune is an intentional community of people living together, sharing common interests, property, possessions, resources, and, in some communes, work and income. In addition to the communal economy, consensus decision-making, non-hierarchical structures and ecological living have become...
, where its inhabitants would seek to produce their own food, clothing and means of living, while promoting a lifestyle of self-sufficiency, personal and spiritual development and working for wider social development. The ashrams included small farms and houses constructed by the inhabitants themselves. All inhabitants were expected to help in any task necessary, promoting the values of equality. Gandhi also espoused the notion of "trusteeship," which centred on denying material pursuits and coveting of wealth, with practitioners acting as "trustees" of other individuals and the community in their management of economic resources and property. Contrary to many Indian socialists and communists, Gandhi was averse to all notions of class warfare and concepts of class-based revolution, which he saw as causes of social violence and disharmony. Gandhi's concept of egalitarianism
Egalitarianism
Egalitarianism is a trend of thought that favors equality of some sort among moral agents, whether persons or animals. Emphasis is placed upon the fact that equality contains the idea of equity of quality...
was centred on the preservation of human dignity rather than material development. Some of Gandhi's closest supporters and admirers included industrialists such as Ghanshyamdas Birla
Birla family
The Birla family is one of the foremost business houses in India. The fore-father of the Birla family is Shiv Narain Birla, a member of the Marwari community from Pilani, in the westerly state of Rajasthan. He moved to Bombay around 1857 to establish a trading house. His son, Baldeodas Birla moved...
, Ambalal Sarabhai
Sarabhai family
The Sarabhai family has been a major business family of India belonging to the Shrimal Jain community. Members include*Ambalal Sarabhai was in the 1940s and 1950s, the owner of the Sarabhai Textile Mills in Ahmedabad - at the time one of India's largest textile companies.*Anasuyaben , Gandhian...
, Jamnalal Bajaj
Jamnalal Bajaj
Jamnalal Bajaj was an Indian industrialist, a philanthropist, and Indian independence fighter. He was also a close associate and follower of Mahatma Gandhi. Gandhi is known to have adopted him as his son. Several institutions in India bears his name, including the Jamnalal Bajaj Institute of...
and J. R. D. Tata
J. R. D. Tata
Jehangir Ratanji Dadabhoy Tata was a pioneer aviator and important businessman of India. He was awarded India's highest civilian award, the Bharat Ratna in 1992 and the Legion of Honour from the French government in 1954.-Early life and education:J. R. D...
, who adopted several of Gandhi's progressive ideas in managing labour relations while also personally participating in Gandhi's ashrams and socio-political work.
Gandhian Economics and Ethics
Gandhian economics do not draw a distinction between economics and ethics. Economics that hurts the moral well-being of an individual or a nation is immoral, and therefore sinful. The value of an industry should be gauged less by the dividends it pays to shareholders than by its effect on the bodies, soul and spirits of the people employed in it. In essence, supreme consideration is to be given to man than to money. In fact, 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-reliantSelf-sufficiency
Self-sufficiency refers to the state of not requiring any outside aid, support, or interaction, for survival; it is therefore a type of personal or collective autonomy...
. Accordingly, increasing consumer appetite is likened to animal appetite which goes the end of earth in search of their satisfaction. Thus a distinction is to be made between ' Standard of Living
Standard of living
Standard of living is generally measured by standards such as real income per person and poverty rate. Other measures such as access and quality of health care, income growth inequality and educational standards are also used. Examples are access to certain goods , or measures of health such as...
’ and ’Standard of Life’, where the former merely states the material and physical standard of food, cloth and housing. A higher standard of life, on the other hand could be attained only if, along with material advancement, there was a serious attempt to imbibe cultural and spiritual values and qualities.
Social Justice and Equality
Gandhi has often quoted that if mankind was to progress and to realize the ideals of equality and brotherhood, it must act on the principle of paying the highest attention to the prime needs of the weakest sections of the population. Therefore any exercise on economic planning on a national scale would be futile without uplifting these most vulnerable sections of the society in a direct manner. In the ultimate analysis, it is the quality of the human being that has to be raised, refined and consolidated. In other words, economic planning is for the citizen, and not the citizen for national planning. Everybody should be given the right to earn according to his capacity using just means. The rich should serve the society after satisfying his needs and not merely enjoy his life.Non-violent Rural Economy
Gandhian economics places importance to means of achieving the aim of development and this means must be non-violent, ethical and truthful in all economic spheres. In order to achieve this means he advocated trusteeshipTrusteeship (Gandhism)
Trusteeship is a socio-economic philosophy that was propounded by Mahatma Gandhi.Putting it in Gandhiji's words "Supposing I have come by a fair amount of wealth – either by way of legacy, or by means of trade and industry – I must know that all that wealth does not ...
, decentralization
Decentralization
__FORCETOC__Decentralization or decentralisation is the process of dispersing decision-making governance closer to the people and/or citizens. It includes the dispersal of administration or governance in sectors or areas like engineering, management science, political science, political economy,...
of economic activities, labour intensive technology and priority to weaker sections. Gandhi claims that to be non-violent an Individual needs to have a rural mindedness. It also helps in thinking of our necessities of our household in terms of rural mindedness. The revival of the economy is made possible only when it is free from exploitation, so according to Gandhi industrialization on a mass-scale will lead to passive or active exploitation of the people as the problem of competition and marketing comes in. Gandhi believes that for an economy to be self-contained, it should manufacture mainly for its use even if that necessitates the use of modern machines and tools, provided it is not used as a means of exploitation of others.
Concept of Socialism
Gandhian economics brings a socialist perspective of overall development and tries to redefine the outlook of socialism. Gandhi espoused the notion of “trusteeshipTrusteeship (Gandhism)
Trusteeship is a socio-economic philosophy that was propounded by Mahatma Gandhi.Putting it in Gandhiji's words "Supposing I have come by a fair amount of wealth – either by way of legacy, or by means of trade and industry – I must know that all that wealth does not ...
” which centered on denying material pursuits and coveting of wealth, with practitioners acting as “trustees” of other individuals and the community in their management of economic resources and property. Under the Gandhian economic order, the character of production will be determined by social necessity and not by personal greed. The path of socialism should only be through non-violence and democratic method and any recourse to class-war and mutual hatred would prove to be suicidal.
Implementation in India
During India's freedom struggle as well as after India's independence in 1947, Gandhi's advocacy of homespun khadi clothing, the khadi attire (which included the Gandhi capGandhi cap
The Gandhi cap is a white coloured cap, pointed in front and back and having a wide band. It is made out of khadi. It takes its name after the Indian leader Mahatma Gandhi, who first popularised its use during the Indian independence movement...
) developed into popular symbols of nationalism
Indian nationalism
Indian nationalism refers to the many underlying forces that molded the Indian independence movement, and strongly continue to influence the politics of India, as well as being the heart of many contrasting ideologies that have caused ethnic and religious conflict in Indian society...
and patriotism. India's first prime minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
, Jawaharlal Nehru
Jawaharlal Nehru
Jawaharlal Nehru , often referred to with the epithet of Panditji, was an Indian statesman who became the first Prime Minister of independent India and became noted for his “neutralist” policies in foreign affairs. He was also one of the principal leaders of India’s independence movement in the...
was a socialist as well as a close supporter of Gandhi. While Nehru was influenced by Gandhi's aversion to the brand of socialism practised in the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
, he was also an exponent of industralisation and critical of Gandhi's focus on rural economics.
Gandhian activists such as Vinoba Bhave
Vinoba Bhave
Vinoba Bhave , born Vinayak Narahari Bhave often called Acharya , was an Indian advocate of nonviolence and human rights. He is best known for the Bhoodan Andolan...
and Jayaprakash Narayan
Jayaprakash Narayan
Jayaprakash Narayan , widely known as JP Narayan, Jayaprakash, or Loknayak, was an Indian independence activist and political leader, remembered especially for leading the opposition to Indira Gandhi in the 1970s and for giving a call for peaceful Total Revolution...
were involved in the Sarvodaya
Sarvodaya
Sarvodaya is a term meaning 'universal uplift' or 'progress of all'. The term was first coined by Mahatma Gandhi as the title of his 1908 translation of John Ruskin's tract on political economy, Unto This Last, and Gandhi came to use the term for the ideal of his own political philosophy...
movement, which sought to promote self-sufficiency amidst India's rural population by encouraging land redistribution, socio-economic reforms and promoting cottage industries. The movement sought to combat the problems of class conflict, unemployment and poverty while attempting to preserve the lifestyle and values of rural Indians, which were eroding with industrialisation
Industrialisation
Industrialization is the process of social and economic change that transforms a human group from an agrarian society into an industrial one...
and modernisation. Sarvodaya also included Bhoodan, or the gifting of land and agricultural resources by the landlords (called zamindar
Zamindar
A Zamindar or zemindar , was an aristocrat, typically hereditary, who held enormous tracts of land and ruled over and taxed the bhikaaris who lived on batavaslam. Over time, they took princely and royal titles such as Maharaja , Raja , Nawab , and Mirza , Chowdhury , among others...
s) to their tenant farmers in a bid to end the medieval system of zamindari. Bhave and others promoted Bhoodan as a just and peaceful method of land redistribution in order to create economic equality, land ownership and opportunity without creating class-based conflicts. Bhoodan and Sarvodaya enjoyed notable successes in many parts of India, including Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
, Gujarat, Karnataka
Karnataka
Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...
and Uttar Pradesh
Uttar Pradesh
Uttar Pradesh abbreviation U.P. , is a state located in the northern part of India. With a population of over 200 million people, it is India's most populous state, as well as the world's most populous sub-national entity...
. Bhave would become a major exponent of discipline and productivity amongst India's farmers, labourers and working classes, which was a major reason for his support of the controversial Indian Emergency (1975–1977). Jayaprakash Narayan also sought to use Gandhian methods to combat organised crime, alcoholism
Alcoholism
Alcoholism is a broad term for problems with alcohol, and is generally used to mean compulsive and uncontrolled consumption of alcoholic beverages, usually to the detriment of the drinker's health, personal relationships, and social standing...
and other social problems.
Modern interpretations
The proximity of Gandhian economic thought to socialism has also evoked criticism from the advocates of free-market economics. To many, Gandhian economics represent an alternative to mainstream economic ideologies as a way to promote economic productivity without an emphasis on material pursuits or compromising human development. Gandhi's emphasis on peace, "trusteeship" and co-operation has been touted as an alternative to competition as well as conflict between different economic and income classes in societies. Gandhian focus on human development is also seen as an effective emphasis on the eradication of poverty, social conflict and backwardness in developing nations. Gandhian socio-economic ideas have gained the interest and attention of an increasing number of people across the world.External links
- Gandhian Trusteeship as an "Instrument of Human Dignity"
- Review of "Gandhian economics"
- Gandhian economics is relevant
- Gandhian Economics blog
- Schroyer,T. (2009). Beyond Western Economics: Remembering Other Economic Cultures. http://www.routledge.com/books/details/9780415776974/