January 17, 1953 THE ECONOMIC WEEKLY the Congress should pass such a views of the voters as expressed nience, in complete dislocation of resolution is a reminder of the com­ through the results of elections. the present financial structure. But plex relation in which India stands Here was an opportunity for the pre-occupation with the immediate to the Common wealth and the rest Congress to face squarely something and the practical leads them to of the world. which has to be faced, for the ignore what is much more vital for question of finances must neces­ the survival of the Federation, the Also bordering on no man's land sarily be subordinate to public urges fundamental unity which is based is the resolution on the Frontier which are too strong to be sup­ on accepting regional differences Gandhi. The incarecration of this pressed cither by the Government and respecting local interests. Fail­ great fighter for freedom for the or by the Congress which is now ing this fundamental unity, no sys­ last five years, his failing health acting in such close co-operation tem of federal finance can work, and suffering have caused deep with the Government that it has nor is unified effort for such a pain and concern. But it is for ceased to function as a forum of venture as the execution of the the first time that the Congress has public opinion and give fitting ex­ Five Year Plan ever likely to suc­ thought fit to give expression to pression to the popular will. In ceed. It is not in adding to the these feelings. This martyr of free­ this growing isolation of the Con­ number of States that the danger dom is now offered India's homage, gress from the people lies the lies. It is in putting State rights in. defiance of prudent that this danger that is sought to be avoid­ above the rights of the Union in public expression of India's concern ed by resisting the claims of sepa­ matters of finance as in everything might involve this leader in greater ration. else. Hence to make the issue indignity. The agitation for re-organisation hang on the question of finance is The Steering Committee of the of States has assumed an intensity as short-sighted as it is politically Congress has decided that any fur­ which its opponents feel threatens unwise. Neither does it make a ther step in the direction of re­ the very foundations of the Fede­ good defence for the Government organisation of States on the basis ration. This is because they see in when the stiff front which it pre­ of language or any other basis, will it, for reasons of practical conve- sents is so full of chinks. depend on the stabilisation of the Andhra State, whatever this may mean. The resolution says that the Congress approves of the steps taken by the Government of India in the Asian Socialism matter of the formation of a sepa­ ITH the possible exception of not dissimilar to that adopted by rate Andhra State, that these steps W Israel, Burma is the only the Rangoon Conference. Burma are in accordance with the policy newly independent country in the has a Socialist Government which laid down in the Congress Mani­ East which can claim a Socialist follows a similar foreign policy. In festo. But while confirming that Government. This explains why Indonesia the Socialists have lost policy, special attention is drawn to the Asian Socialists have just con­ ground, but her Government has the " other factors " which must be cluded their first conference in the pursued a foreign policy of non- taken into consideration in any re­ capital of Burma. They are not in alignment with rival power blocs. organisation of the present States, power in any other Asian country. India, Burma and Indonesia are such as unity of India, national But in all countries in this region, more friendly to Red China than security and defence, financial con­ the Socialist Party has popular sup­ Japan. It is not unnatural that siderations and economic progress, port. Socialism, is a growing influ­ India, Burma, and Indonesia could not only of the nation but of each ence in resurgent East. This, as well initiate a policy which is the Socia­ State. More specific ally, the resolu­ as the growing importance of Asia list reply to the Communist chal­ tion warns that any further steps in world affairs, is reflected in the lenge. in the direction of the re-organisa­ emergence of the Asian Socialists Objectives of the Rangoon Con­ tion of States might interfere with in Rangoon. Symbolic of both is the ference are clear. There the Socia­ the successful implementation of the participation of Mr Attire, leader lists assembled to endorse a policy Five Year Plan and must, there­ of the world's largest Socialist Party, which can light Communism. In fore, wait until the Andhra State in the Rangoon Conference as head the East the soil is receptive to Com­ is stabilised. of the fraternal delegation from the munism. Poverty is widespread. This is a resolution on the ap­ Socialist International. The standard of living is appallingly proved lines of the Government of Rangoon is a reminder to those poor. Prosperity through economic which the Congress has now be­ who are inclined to interpret the equality is the objective of the Asian come the forum, viz., that of tem­ problem of the balance of power in Socialists. They have learnt the porising and avoiding unpleasant Asia as a triangular contest between lesson from Mao tse-Tung. They issues by just refusing to face them India, Japan and China that there are agreed that, in the under-deve­ squarely. It has not been men­ arc numerous other influences at loped East with a growing popula­ tioned in any earlier communication work. China is now a Communist tion pressure on the land, economic on the subject either from Congress country. America is trying to pacify improvement must first concentrate leaders or leaders of the Govern­ Japan with the dual aim of main­ on land reforms. As Socialists they ment that the decision on Andhra taining a balance of power in the have the economic sense to realise was taken after due consideration East, as well as of containing the that, while the tenure and techni­ of its effects on the finances of the spread of Communism. India is que of farming will have to be re­ Five Year Plan. Nor was the deci­ not a Communist country. She has volutionised, economic improvement sion taken, for the matter of that, not yet established a Socialist set­ cannot be sustained without simul­ in response to opinion expressed in up. But the Congress Government taneous industrial development. the Congress or in deference to the pursues a foreign policy which is Details of the economic policy of, 50 THE ECONOMIC WEEKLY January 17, 1953 and of means of contact and colla­ in Britain is opposed to exclusive Satellites are being formed around boration between, the Asian Socia­ reliance on re-armament as the America as well as Russia. This lists are to be planned out by the means to fight Communism. West tendency in political gravitation will permanent contact machinery creat­ Germany's Social Democrat Party, precipitate an international conflict. ed by the Rangoon Conference. But led by the late Dr Schumacher, is To avert it the Asian Socialists seek the fundamental basis of that policy opposed to German re-armament to prevent this political polarisation. has already been established. as contemplated in the proposed To achieve this aim they want to Mr Attlee, as representative of plan for a European Army. Post- function as a Third Force. the Socialist International, has no war developments in Italy have Third Force has a positive aspect. objection to the economic emphasis forced a split in the Italian Socia­ Neutrality in a war is not its main of the Asian Socialist Policy. Bui list Party. Even M Guy Mollet, objective. Its main aim is the pre­ the leader of the British Labour the French Socialist, is now less vention of war through world pros­ Party has reservations about their enthusiastic about the European perity. It rejects collective security political views and policy. There Defence Community. It is signifi­ though re-armament as prejudicial are reasons why the Asian Socialists cant that an influential section of to world economic recovery. It is have not merged themselves with independent, non-Socialist Leftist constructive in its efforts to elimi­ the Socialist International. They group in France is opposed to coca- nate poverty in its fight against argue that the European Socialists eolourisation of Europe, and is Communism. This may irritate have deviated from Socialism in vocally neutralist. From the neu­ Mr Attlee, or the Socialist Inter­ their tacit support, to colonialism of tralism of this group in France, equi- national, but. the Asian Socialists' the metropolitan powers. They cite distantialism of a section of the policy will be endorsed by Mr Malaya, lndo-China and North Italian Socialists is not a ma jor- Bevan and his supporters. There is Africa as proofs that the British and deviation. nothing wrong in the policy of the the European Socialists who com­ Moscow may be as far away as Asian Socialists. But they are a prise the Socialist international, Washington from Rangoon. But divided house, and lack unity and have not performed their Socialist the Asian Socialists are not com­ organisation. Their policy involves duty of coercing their Governments mitted to a passive policy of neu­ non-alignment with rival power to end colonial exploitation. This tralism on of equi-distantialism. blocs. This aspect of their policy is one of the reasons why the Asian Their aim is to act as a Third will be endorsed by many of the Socialists have not merged with the Force. Mr Attlee may argue that Governments of the countries they Socialist International, although Third Force, neutralism and equi- represent. How to achieve prospe­ they have decided to maintain con­ dtstantialism—-these are different rity in the under-developed East is stant contact with the International. expressions which mean the same the main problem. To succeed, the Mr Attlee retailed the British trans­ thing as social democracy. Thus Asian Socialists must have a bold fer of power in India. Burma, Paki­ interpreted, there is no difference and constructive economic policy. stan and Ceylon under the British. between the aims of the Socialist They have not failed in announcing Labour Government, although he International and of the Asian So­ a concrete policy. But there are was lather apologetic in his defence cialists. But. in announcing their grave doubts whether the Asian of the polity of the Socialist Inter­ intention to function as a Third Socialists have the organisation, or national in relation to colonialism. Force, they emphasise their aim to the leadership to implement their There are other reasons why Mr prevent the formation of satellites. policy. Attlee has failed in his Rangoon mission. Asian Socialists agree with Mr Attlee that. Socialism is the only alternative to Communism. But they differ with the leader of the British Labour Party, and with the Socialist International, as to the means of combating Communism, They have no quarrel with the So­ cialist International's conviction that peaceful co-existence is not possible, Mr Attlee believes in aligning with America to tight Com­ munism. This policy of the Socia­ list International is based on two assumptions. One is that collective security through mobilisation of the Western Powers' military resources is necessary to resist Communist ex­ pansionism. And the second as­ sumption is that virile-Communist expansion is a greater menace to world peace than senile Capitalist imperialism. This is the theoretical justification of the Attlee Govern­ ment's foreign policy. Yet, even all the European Socia­ lists do not agree with this interpre­ tation of world politics. Mr Bevan

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