(Established January 1949) September 28, 1957 Volume IX—No, 39 Price 50 Naye Paise

EDITORIALS Pakistani Politics 1243 Pakistani Politics The Lesson of Gramdan 1244 ERSONALITIES count in the politics of every country. But in WEEKLY NOTES P Pakistan, politics seem to centre mainly around personalities. Thin Kandla Nearing Capacity- explains the frequent changes in party tactics and the policies of parties. Reassessment Necessary In such circumstances, as is only to be expected, political stability eludes —Pibul Goes — Welcome the country. It is tempting to draw a parallel between Pakistan and Rapprochement — P r o- Prance. There are some similarities in the underlying conditions in blem of Housing—Scarcity Pakistan and Indonesia. But there are limits beyond which such com­ of Material — U P's Tax parisons are misleading. Even as President Soekarno experiments with on Large Holdings Bank "guided democracy", President Iskander Mirza talks about "controlled Rate Change and India- democracy". But the Indonesian President's policy is based on an ideal Production of Radio Re­ whereas the Pakistani President's interference with the affairs of the ceivers 1247 State is solely justified on considerations of that country's integrity. LETTER TO THE EDITOR That also is the main, if not the only, binding force among parties and Chair-borne Critics 1250 politicians in Pakistan. A CALCUTTA DIARY Yet, experience and developing events make it increasingly evident Not by the Police Alone 1251 that Pakistan's march to progress cannot be ensured on such negative foundations as the country's integrity, annexation of Kashmir and the FROM THE LONDON END ever-present problem of maintaining a precarious balance between the Seven Per Cent and the country's two wings. Instability will haunt that country as long as Foreign Exchange Crisis 1252 political parties and personalities waste their time and energy in jockey­ FROM U N HEADQUARTERS ing for office and position to the neglect of the interests of the people. The Secretary General 1255 These reflections are prompted by President Mirza's rejection of the proposal, passed by the West Pakistan Legislature, for the break-up OFFICIAL PAPERS of West Pakistan into four or more autonomous provinces on a linguis­ The Case for Exchange tic basis. Flexibility —R A Jahagirdar 1258 There will be sharp differences of opinion as to whether Mr Suhra- wardy or the Pakistani President is constitutional or wise in rejecting SPECIAL ARTICLES a proposal passed almost unanimously by the West Pakistan Legislature. Recent Monetary Policy in But neither the President nor the Prime Minister is inconsistent. Recent India events cast doubts whether West Pakistan can continue to exist as a S N Sen 1263 single unit. It is already clear that this will be one of the main issues The Shipbuilding Industry in in the promised elections next year. There are also indications that, in Yugoslavia 1268 the coming struggle for power, both the Muslim League and the Repub­ lican Party may be badly mauled. In the absence of certain tactical FROM THE CHAIR and constitutional adjustments, it is doubtful whether East Pakistani Life Insurance Corporation political parties will lend junqualined support to the proposal for a of India 1261 re-division of West Pakistan into separate units. But bath the Pak­ AROUND BOMBAY MARKETS istani President and the Prime Minister are consistent in their post­ Legacy of Sterling Link 1270 ponement of the proposal until after the elections. Both can claim consistency In their insistence that such a proposal cannot be imple­ AROUND CALCUTTA MARKETS mented now as it would delay the elections. Mr Suhrawardy is also not Fears and Hopes 1271 inconsistent in his repeated challenge that the present Republican Party and the West Pakistan legislature are not representative of the CURRENT STATISTICS 1272 people. President Iskander Mirza is as much opposed to the break-up of the one-unit West Pakistan. But there will be suspicions that the President is not unwilling to lend support to the Republican Party as The Economic Weekly a potential weapon to fight Prime Minister Suhrawardy in certain future 104, Apollo Street, Fort, Bombay contingencies. Telephone : 252258 To appreciate properly the crosscurrents in Pakistani politics it Annual Subscription: Rs 24 is necessary to recapitulate the events leading to the formation of West September 28, 1957 THE ECONOMIC WEEKLY

Pakistan into a single unit. It was ship of Maulana Bhasani, the ing make-up of parties and of party so created, and the new set-up was National Awami Party was formed. alliances, the composition of the included in the Constitution eighteen This Party's western wing, com­ future Central Cabinet and of Mr months ago, with two main motives. posed of eminent leaders like G M Suhrawardy's future become quests One was to eradicate provincial Syed. Khan Abdul Gaffar Khan and of significance, Mr Suhrawardy and jealousies and corruption in West Mian If tikhamddin, entered into an his Cabinet rely on support of the Pakistan's various provinces. Pun­ alliance with the Republican Party. Republican Party in West Pakistan. jab's domination of West Pakistani In return for the former's support, As the Republican Party is com­ politics was resented by the other the latter promised to pass a resolu­ mitted to abolition of the one-unit provinces. West Pakistan had to tion in the West Pakistan Assembly plan, its continued support to Mr be formed into a single unit In order recommending the reconstitutlon of Suhrawardy Is doubtful; the more to match East Pakistan's claim to West Pakistan into autonomous pro­ so, because of its latest alliance equality in the National Assembly. vinces on linguistic lines. As the with NAP, Mr Suhrawardy's political It was this second objective which Republican Party has stolen the opponents. In East Pakistan, Mr induced the parties and provinces thunder from the Muslim League, Suhrawardy's Awami League is still in West Pakistan to agree to the the latter has gone back on its in power, but can no longer claim integration of the various provinces earlier support to the plan for dis­ Its earlier popularity with the people. into a single unit of West Pakistan. solution of the one-unit system. Will Mr Suhrawardy be forced by It was the Muslim League which circumstances to enter into an alli­ sponsored the one-unit idea. West It is not without significance that ance with the Muslim League? Will Pakistan was formed into a single the resolution passed almost unr.til- such an alliance be tolerated even unit. But the Muslim League lost mousiy by the West Pakistan As­ by the present leadership of the East its popularity because of its policy sembly goes beyond a demand for Pakistani Awami League? Above of merging the various provinces of a return to former provinces in all, can Mr Suhrawardy hope to have West Pakistan into one unit. recommending re-organisation of support from any Party or any sec­ West Pakistan on a linguistic basis. tion of the people of East Pakistan Subsequent developments reflect Nor in it without significance that if he chooses to lean on the Muslim the Muslim League's changed tactics Feroz Khan Noon, a prominent He- League for his position in the Cent­ to regain power as well the gradual publican leader, has conceded that ral Cabinet? None of these prob­ shifts In the complexion of the a separate Pushtu-speaking province lems is likely to be solved before Republican Party. As the Muslim may be considered. This demand the elections. But there are already League discovered that the one-unit for linguistic States is likely to Indications of major changes in plan was unpopular with the poli­ gather momentum. In the chang­ party complexions and alliances. ticians of the provinces, it started a campaign for the abolition of the one-unit system. There was enthu­ siastic response to the Muslim The Lesson of Gramdan League campaign. Threatened by an adverse vole on this issue in the A CHARYA VINOBA BHAVE however, true of the majority of West Pakistan Assembly, Or Khan began his work with a move­ gifts. Then it was also contended Sahib, the then leader of the He- ment for voluntary land gifts for that the distribution of the land publican Party, advised the Presi­ the purpose of redistribution to landless labourers would be a amongst landless labourers. He dent to suspend the Legislature. retrograde step for it would only set himself the target of 5 crore Emboldened by the success, the result In reducing the size of the acres of land by 1959. Achievements League demanded that it should be unit of cultivation in India still fur­ so far have not been spectacular, asked to form a Government. Mr ther, thus making agriculture in but are none the less quite impres­ India still less efficient. In fact, Suhrawardy rejected this demand sive. The latest figures show that it was feared that the Bhoodan on the plea that a Party, which was land collected in gifts exceeds 40 Movement might make it impos­ untrue to the Constitution in demand­ lakh acres. This is no mean achie­ sible to achieve larger and larger ing the abolition of the one-unit vement if one remembers that agricultural surpluses so necessary plan, could not be entrusted with people in India are by tradition par­ for rapid economic development, office or authority. ticularly attached to land. One of surpluses which could come only It was at this stage, when the the findings, for Instance, of the through the adoption of more In­ West Pakistan Assembly was sus­ Reserve Bank's Rural Credit Sur­ tensive and possibly mechanised pended, that the complexion of the vey was that a large proportion of techniques of cultivation. Republican Party underwent a gra­ the borrowings, of the small culti­ For Acharya Bhave, however, dual change. Dr Khan Sahib ceased vator in particular, was for the Bhoodan was only the beginning. to be its leader. To shorten the purchase of land. "Bhoodan", he said, "is not a move­ duration of President's .Rule, the re­ But though the message of the ment but an ascension. The more oriented Republican Party Was put Bhoodan movement spread rapidly, you climb up the larger is the vision into power immediately before the there were many, sceptics. Sus­ that opens out before you." It is return of Mr Suhrawardy from his picions arose first about the gen­ the success of Bhoodan which has tour of Europe and America. Though uineness of the land gifts. It was urged him on to Gramdan and has the Republican Party continued to perhaps true that in several cases emboldened him to believe, that he lend tacit support to Mr Suhrawardy. the land given was of Inferior could depend upon the Indian agri­ the Prime Minister was confronted quality and may be in a few cases cultural community to make a still with a split in his East Pakistani it was not even suitable for pro­ bigger sacrifice than it has done Awami League. Under the leader­ fitable cultivation; this was not, so far, In a Gramdan village, the 1244