December 4, 1954 THE ECONOMIC WEEKLY that Pandit Nehru should nave All this is not to say that the it is a system in which the means tried to cajole private investment refusal of the Government to allow of production are collectively con­ into these industries. But that is Birlas to go ahead is justified. trolled, so that concentration of an approach which is not likely to That is a question which needs to economic power is avoided and redound. to the credit of private be probed into deeper than has democracy is freed from the pres­ enterprise, for it would mean that been done so far. It can be rightly sure of vested interests. His ulti­ private-enterprise is unable to assess argued that when a country needs mate goal of a socialistic economy the risks involved in pioneering, or iron and steel as badly as does is, in other words, not an end in having assessed them, decides that to facilitate development, any itself; it is a means for safeguard­ discretion is the better part of agency which is willing to start a ing the basic equalities and free­ valour. Enterprise that always tries new plant should be allowed to do doms, for attaining a Welfare State. to play safe ceases to excite, and so. After all, Government has To the private sector -at least the one need not feel surprised that enough powers to keep the industry vocal part of it— ' is Pandit Nehru—who hates nothing under control, and make certain probably an inevitable first step to more than timidity—prefer to that the output flows into those a police State. It is about time ignore this vapid argument. Nor channels which the planning autho­ that the private sector paid some can it be asserted that in the past rity lays down. Ail this is accept­ attention to what the Shroff Com­ six years, the private sector has ed. But the point which has been mittee, with its pronounced bias for showed such initiative and drive as overlooked is something different. private4 enterprise, pointed out. to claim preferential treatment. And that is that the refusal to per­ The changes in the economic cli­ Given the urgency for industrial mit a privately owned and operated mate, said the Committee, " are development, what Government steel plant does not mark a depar­ manifestations of the changing con­ could be expected to wait patiently ture form accepted policy. On the ceptions, in India as elsewhere, of for private enterprise to become contrary, it is well within the letter the functions of the modern State more dynamic than it has been? of the 1948 Statement, and the and of social justice. These trends spirit of the resolutions. in social and economic philosophy There is a further point. With Indeed, if a licence had been grant­ have come to stay and must there­ the acceptance of the idea of plan­ ed to Birlas, then one could justi­ fore be recognised, and it would be ned development, it was inevitable fiably have argued that a change unrealistic to expect any major that wider powers of control and had occurred in Government's change in their direction." direction should be vested with the policy. Government, under the Industries As always, more importance: is (Development and Regulation) Act. It would thus seem that the pre­ placed in this country on what is It is also true that the Act as it vailing feeling in the private sector spoken rather than on what is being stands contains provisions which for lias to be attributed to something done. To expect a basic change, in some people have an undertone of other than a perceptible change in the role of the State in the indus­ distrust in private enterprise. But Government policy towards private trial sphere is to admit a lack of few can gainsay the fact that in a enterprise. One possible explana­ awareness of the historical forces in planned economy, some control of tion is that the public is upset by operation. Maybe these forces are private enterprise is unavoidable; or references to " socialism ' in Govern­ operating in a much less drastic that in the actual administration of ment circles, especially when there form than appears from the Prime the Industries (Development and is a trace of approval about it. It Minister's oration. That may be Regulation) Act, there is a slow- is probably a measure of the differ­ good or not. so good, according to but steady move towards a rational ence in the connotation of that one's predelictions. But there is interpretation of the provisions. word to different sections of the little sense in trying to kick history There is admittedly room for community. To the Prime Minister, and feeling sore about it. greater flexibility in this direction; but so far, nothing has happened to indicate that the trend has been Socialist or Praja-Socialist ? reversed. N Congress, individual thinking every right to hold different views. As regards the second disturbing I is at a discount. Congress func­ They are jealous about their right occurrence, it is not clear whether tions as a well-organised political to freedom of thought and ex­ the Birlas' proposition has been party. .It has never tolerated pression. Individuality is a virtue. definitely turned down. Even it "rebels". They have either been But it has its limits. Developments that is so, how does it amount to a expelled, or they have themselves within PSP pose the question whe­ break or reversal in Government's left Congress. That is how the ther a political patty can encourage industrial policy? As pointed out organisational strength of Congress individuality to such an extent as to earlier, the Policy Statement of has been maintained. Unlike Con­ degenerate into indiscipline. 1948 lays it down that the State is gress, PSP is a. party where there is PSP leaders hold different views, to be exclusively responsible for the too much individual thinking. It is lint they are all democrats. Differ­ establishment of new undertakings a standing joke in political circles ences among the leaders had reach­ in the iron and steel industry. The in the country that even as the ed a stage when it was necessary to extent to which private enterprise Army in Latin America or Middle have a fresh mandate about the will be able to participate in this Eastern countries has more generals party's future policy. PSP, a demo­ task depends on the Government than soldiers, PSP is a party of cratic party, accepted this principle deciding to invite co-operation. It leaders without men. PSP leaders by holding a convention at Nagpur. is to be noted that this leaves room will resent such sarcastic remarks It has rejected the demands of the for joint effort by Government and against the party. They profess faith Lohia group. But it has not ex­ entrepreneurs, and not for a com­ in democracy. They argue that the pelled Dr Lohia and his followers. pletely private undertaking. members of a democratic party have A new national executive has been THE ECONOMIC WEEKLY December 4, 1954 formed. One Acharya has replaced drifting Those Socialists who dis­ One of the inferences from the another as the Chairman. Acharya approved of the alliance with the last general election is that an in­ Kripalani is a disciplinarian. He is Praja Party are now hoping that fluential section of the population familiar with political parties and PSP would function more as a is opposed to both Congress and the party politics. He is no longer the Socialist than a Praja-. Communists. It. is, therefore. a Chairman. But there is no indica­ PSP represents that section of poli­ permissible deduction, that PSP has tion that he will refuse Acharya tical India which is opposed to both a future as a Socialist party. To Narenda Dev's request to him to Congress and the Communists. Acharya Narendra, Dev falls the remain a member of the. national Even as Congress depends on responsibility of consolidating PSP executive. has also Pandit Nehru to keep in harness the Into a Socialist party without any resigned from the national execu­ progressive elements within it, PSP doctrinaire Insistence on the class tive'. But he has not left PSP. Both has been hoping that Jayaprakash struggle or the Marxian interpreta­ Acharya Kripalani and Asoka Mehta will give it a similar dynamic lead. tion of socialism. art1 likely to respond to Acharya Dev's expected invitation to them to join the new national executive as members. Dr has taken a more definite line. He has announced his decision not to join the national executive. But he has let it be known that he has no objection to any of his followers being represented in the re-organ­ ized national executive. PSP is an attempt at a synthesis of three distinctive political trends. Acharya Kripalani left Congress to join PSP because he was opposed to the drift of Congress away from Gandhian principles. By merging his Praja Party with the Socialists, he hoped to utilise the combined strength of the merged organisa­ tion to re-introduce Gandhism in politics. BY accepting him as Chairman. PSP indicated that it was not opposed to Gandhian principles, jayaprakash is a Marx­ ist Socialist, who b e l i e v e s in Gandhian doctrines. He has dedi­ cated his life to the Bhuodan Move­ ment. Asoka Mehta, the theoreti­ cian of the former Socialist Party, is a Socialist. Because he is not a Maixist he finds no contradiction between his brand of Socialism and Gandhian politics. Unlike Jaya­ prakash, Acharya Kripalani and Asoka Mehta are parliamentarians and party politicians. But all tru­ th ree believe in " depoliticalisation ". in emphasising Society as opposed to the State. Acharya Narendra Dev is a Marxist, but is a believer in evolution as opposed to revolu­ tion. He is not as much a Gandhian as Jayaprakash or Acharya Kripa­ lani is. Dr Lohia now seems to have emerged as the doctrinaire Socialist within PSP. PSP is at the crossroads. Even when the Socialists merged with the Praja Party, some of them were op­ posed to the alliance. Acharya Kripalani is a twice disillusioned politician. Long ago, he felt dis­ satisfied with the way Congress was going. He has now expressed dis­ satisfaction with the way PSP is 1345