DADABHAI NAOROJI, GOKHALE B. N. GANGULI* AND GANDHI AS EXPONENTS OF NATIONAL ECONOMIC THOUGHT

(1) swords. Gandhi was not so learned and sophisticated, but he had a keen sense of Dadabhai Naoroji, Gokhale and Gandhi reality and an instinctive perception of the were three of the most remarkable expo­ economic and social malaise that had nents of nationalist economic thought dur­ afflicted the nation. In many ways, he was ing the formative period of the Indian na­ a class apart, and yet he regarded Dada­ tionalist movement. They appeared on the bhai and Gokhale as his gurus from whom scene of Indian public life in a chronologi­ he derived his background and inspiration. cal sequence. They were an important cross-section of our national intelligentsia Indian nationalists of their generation who reflected, and, in their turn, also shap­ belonged to the educated middle-class to ed, nationalist thinking on our social-eco­ which all the three belonged. It is some­ nomic problems in the last two decades of times a fashion to describe them as bourge­ the 19th century and the first half of the ois nationalists who were the unconscious present century. All the three reacted to instruments of the aspiring middle-class these problems in the manner of heroes that felt frustrated and cramped by the and gave our urge for freedom an econo­ alien rule and alien economic domination. mic dimension and motivation. All the Sometimes British rulers used to pose as three had risen from the ranks and had the champions of the 'masses0 who, they experienced the pangs of poverty. Gandhi said, were the victims of a feudal economic regarded both Dadabhai and Gokhale as and social system. Their condemnation of his preceptors. It is well known that the disloyal middle-class nationalists was a Gandhi and Gokhale were kindered spirits, 'class' approach to the political and econo­ that Gokhale was Gandhi's guide, philoso­ mic problems of the times. Paradoxically, pher and friend during his epic struggle in there is a strange similarity between the South Africa and that they found spiritual 'class' approach of the British ruling class strength and solace in each other. Dada­ and the 'class' approach of certain com­ bhai and Gokhale were close friends. mentators of the present generation who Gokhale said that both Dadabhai and have tried to understand our nationalist Gandhi "affected him spiritually". Dada­ movement. We would be nearer the truth, bhai and Gokhale were sophisticated and however, if we try to understand the learned intellectuals with a wide-ranging thought and aspirations of nationalists, of knowledge and a flair for statistics, for whom Dadabhai, Gokhale and Gandhi marshalling of data and for painstaking re­ were the best representatives, from an search, which was the despair of British eclectic angle. They were, indeed, pro­ administrators with whom they crossed gressive individuals who thought of the

* Dr. Ganguli, who is Ex-Vice-Chancellor of Delhi University, Delhi, delivered these lectures on March 4, 1970 at the Tata Institute of Social Sciences, Bombay, The lectures were sponsored by the Ministry of Education, New Delhi. 244 B. N. GANGULI 'masses', rather than 'classes', and of a its essence is concerned. I take the view 'welfare state' in which the masses could that Gokhale's economic ideas, to which acquire the strength and the capacity to concurrent thinking by many others had win and preserve basic freedoms through contributed, form an essential link connect­ simple and cooperative ways of ordering ing early nationalist economic thinking, their community life under the fostering via Gandhi, with the later ideas of econo­ care of the State. mic reconstruction, that are still taking When 'Economics' was unknown, think­ shape as the conceptual framework of so­ ing Indians did think soundly on the basic cial and economic democracy in our coun­ economic problems. They did develop a try. sound corpus of thought, for example, on agrarian relations and land problems, Here I shall deal with the Critical Con­ which still repays careful study. Dadabhai tent of nationalist economic thinking — the and Gokhale were intellectuals who not sharp reaction of the nationalists to the only possessed a wide knowledge of even economic consequences of the alien rule. complicated economic affairs, but were also In my second lecture, I shall review the essentially pragmatic in their assessment positive content of nationalist economic of economic trends and events. They had thought insofar as it was oriented towards a remarkable awareness of the conditions defining the goals and methods of social of the masses. Since they knew what they and economic development with a view to were talking about, they did not merely building up a social and economic demo­ repeat what the western economists wrote. cracy in harmony with our tradition and' They tried to understand their teachings special circumstances when freedom came. in the context of Indian conditions. Gandhi You will realize that I am dealing with a shared these qualities, although he was subject which has a very wide range. I can much less learned and sophisticated, in only be selective and dwell only on certain spite of the fact that once he quoted segments of the great economic debate Adam Smith and also stated the doctrine which set the pace of the nationalist move­ of classical economics that international ment and aroused widespread interest as trade was barter. Both Dadabhai and well as emotional involvement. Even so, Gokhale were born in villages and knew I can hope to present only a synoptic view. what rural life meant. Gandhi's know­ ledge of the Indian village was fabulous. Dadabhai Naoroji and his generation They were not 'economists' in the usual viewed economic problems in the context sense, but they debated the problems of of the abject poverty of the masses of the 'Political Economy' with a rare mastery of population. With his early training in facts and a sound sense of logic. Mathematics and his remarkable sense of I have selected Dadabhai, Gokhale and statistical magnitudes, Dadabhai turned Gandhi for my survey, also because they his attention to the computation of natio­ represent a basic affinity of thinking and nal income in order to get an idea of per also the greatest common measure of natio­ capita national income. His method of nalist economic thought. Since between national income estimation was not a per­ them they spanned almost three genera­ fect one, but what he said about his tions we find a thread of continuity of method, in answer to his critics, seems to thinking — almost a tradition — that has lay bare the anatomy of Indian poverty continued without serious breaks as far as seen in relation to his conception of "eco- DADABHAI NAOROJI, GOKHALE AND GANDHI 245 nomic drain." Dadabhai had derived a Gandhi. With this as the starting-point, per capita income Rs. 20/- for British India Dadabhai sought to understand both natio­ around 1870. He used to describe 2 annas nal income formation and poverty. He a day or less — the average daily income came to the conclusion that the process of — as "an old friend". It was not the parti­ income formation in India was such that it cular figure that really mattered. What left the masses of the population at a static was significant in his analysis was the dyna­ poverty level — indeed, a level of destitu­ mics of national income formation. An im­ tion at which the population was periodi­ portant ingredient of his thought which cally decimated by famines. influenced Gokhale to some extent, but Gandhi completely, was his view that "the Following Dadabhai's lead, Gokhale whole produce of India is from land". He gave an exposition of the poverty problem regarded material primary production as in his famous budget speech of 1902. In the source of wealth and income in direct 1901 Lord Curzon had said that, so far as and indirect forms and considered it basic the economic position of the masses was in a backward economy. He thought that concerned, "the movement is, for the pre­ remuneration for 'services' came out of sent in a forward and not in a retrograde primary production and may not be count­ direction". Gokhale said in his budget ed separately. That the propriety of this speech that the issue was not a particular cannot be dismissed lightly has been con­ figure of per capita income, but whether firmed by modern theory and practice. C. the movement was progressive. Indian F. Paul Studenski says: "National income poverty was 'deep', whatever the figure, restricted to material production may be and it was 'deepening'. Gokhale was con­ an adequate measure of the economic pro­ cerned with "the dynamic view of the eco­ duction and economic welfare of an ex­ nomic situation". To prove that poverty tremely primitive society which is almost was 'deepening' he produced evidence in wholly concerned with the production of terms of certain dynamic variables: vital material goods for the satisfaction of the statistics; per capita salt consumption; most elementary physical needs of its trend of agricultural output; area under members". (The Income of Nations. Part cultivation; imports and exports in so far II, pp. 22-23). as they had a bearing on the increase of national income. The Marxian "restricted material pro­ duction concept" which is strikingly simi­ There are certain factors of economic lar to Dadabhai's method has been the ba­ progress which bring about an increase in sis of national income estimation in com­ the real national income, such as (1) in­ munist countries. The lead was given by crease in the proportion of men engaged Adam Smith who drew the distinction bet­ in production; (2) shifts from less produc­ ween productive and unproductive labour tive to more productive occupations; (3) and emphasized the significance of produc­ better use of the existing production poten­ tion in its material forms. tial; (4) increase in foreign trade which is profitable; (5) Capital investment for The primacy of primary production as higher productivity of labour; (6) spread of the source of wealth and income in a technical education. These factors were backward economy was an important start­ absent in India, according to Dadabhai ing-point for Dadabhai, Gokhale and and Gokhale. What was worse, there were 246 B. N. GANGULI forces in operation which brought about of empire-building, not only in India economic retrogression. Dadabhai and, but also beyond her borders; following him, Gokhale and Gandhi, ex­ plained the working of these forces with (v) Overheads of development being the help of what has been called the Drain oriented towards strategic require­ Theory — a set of ideas which has an old ments, towards the requirements of lineage and goes back to the early 19th administrative control in a vast century and even the earlier period of the country ruled by a handful of fore­ rule of the East India Company. (For a igners, towards the objective of comprehensive study of this subject refer­ 'opening up the country to free ence may be made to the author's Dada­ trade' and towards the objective of bhai Naoroji and the Drain Theory, Asia. creating highly paid jobs for foreign 1965). personnel;

Dadabhai and his predecessors conceiv­ (vi) India being a colony with a diffe­ ed of economic 'drain' as an external-cum- rence, public expenditure out of the internal drain of purchasing power, a proceeds of taxation and loans fail­ built-in mechanism to extort resources out ed to generate as much of domestic of a low-level, colonial economy. The sur­ employment and income as would plus generated and extracted through a have been possible if the principal complicated process was drained out of income-earners had not been "birds the economy through the process of fore­ of passage", or if they had spent ign trade, the dynamics of which was sup­ their incomes largely within the plied by the unilateral transfer of funds country or on goods and services from India to England. This unilateral within the country. transfer was occasioned by a number of objective political conditions which, acc­ Gokhale, like Dadabhai, was a zealous ording to Dadabhai and Indian nationa­ advocate of lessening the burden of taxa­ lists in general, could be categorized as tion which, in a poor agricultural country, follows :— had a regressive character and was the most important single cause of Indian (i) India being a colonial economy gov­ poverty. In a colonial economy the bur­ erned by remote control; den of taxation, far too heavy in relation to low per capita income, was not offset to (ii) India being quite unlike whitemen's a small extent by even the minimum colonies in the temperate zone amount of welfare expenditure. The eco­ which attracted labour as well as nomic overheads — railways, irrigation capital for economic development; works, road development, etc. — financed by current taxation to an inordinate extent (iii) India being saddled with an expen­ created conditions under which the bulk sive civil administration and an of the increases in productivity went to equally expensive army of occupa­ swell the incomes and profits of foreigners, tion; leaving little incidental advantages, if at all, to be shared by the vast masses of the (iv) India being a strategic base of ope­ rural population. Taxation was thus part rations that had to bear the burden of the mechanism of the 'drain', both in- DADABHAI NAOROJI, GOKHALE AND GANDHI 247 ternal and external. It tended to depress Indians bought their own railways, where­ the already low standard of life and pre­ upon Dadabhai again asked a leading vented capital formation and increases in question: "Is it not the case that we can­ productivity based on better utilization of not buy them, because our capital is taken resources for the benefit of the nationals away by somebody else"? Gokhale replied: of the country. "Yes, what would otherwise be our capi­ tal". It is interesting to note how Gokhale gave an exposition of the 'drain' thesis be­ It was this aspect of the Drain Theory fore the Welby Commission of 1897, of which formed the core of nationalist think­ which Dadabhai himself was a distingui­ ing at the turn of the century. When the shed member. Gokhale complained that Swadeshi movement began in 1905 this "the free trade policy thrust on the coun­ thesis was projected by Gokhale in a man­ try" had killed Indian industries, that al­ ner which showed a striking originality of most one-half of the rural population was approach and perspective. In his presi­ kept on land, because they had nothing dential address at the session of the Indian else to do, and that fresh employment to National Congress in 1905, Gokhale said: remove the glut could not be created be­ "For a hundred years and more now India cause of the lack of resource development, has been for members of the dominant race which, again, could be traced to the lack a country where fortunes were to be made of capital formation. He did not concede to be taken out and spent elsewhere. As in that lack of capital was due to lack of en­ Ireland the evil of absentee landlordism terprise or improvident private expendi­ has, in the past, aggravated the racial ture, as British administrators often said. domination of the English over the Irish, The fundamental deficiency — lack of capi­ so in India what may be called absentee tal — was set down to the economic 'drain'. capitalism has been added to the racial The argument before the Commission had ascendency of Englishmen". Here was a begun with the question of the need for perceptive idea which gave an illuminating protection for fostering Indian industries. insight into the working of the Indian eco­ "India needs protection very badly", nomy. Were not the evil effects of ab­ Gokhale said. He was asked why Indian sentee landlordism on a par with the evil enterprise had not flowed into Indian in­ effects of absentee capitalism? Absentee dustries as British enterprise had flowed landlordism has an exploitative, not a con­ into the tea industry. At this point Dada­ structive, role. The same was true of ab­ bhai asked a leading question, viz. whether sentee capitalism. In his speech on the this was not due to the fact that Indian Swadeshi movement at Lucknow in 1907, capital was "carried away from the coun­ Gokhale said: "When the Mohammedan try". Gokhale replied that this was "the rulers came they settled in this country root of the whole thing and that, were it and there was no question of any foreign not so, and "if we were able to preserve drain". The British rule established the what we produce, we should be able to "industrial domination" which worked "in compete on equal terms" with foreigners. a more insidious manner". Gokhale distin­ (The words were Dadabhai's — Gokhale guished between the political and the in­ said: "Yes, exactly"). The Chairman of the dustrial drain. As regards the latter, he Commission commented that the English referred to the dominant position of Government would be only too glad if Englishmen in India, which gave certain 248 B. N. GANGULI classes of Englishmen in the trade and their country. To them India is, of course, professions "special advantages which their rich and prosperous. The more they can Indian competitors did not enjoy". The carry away, the richer and more prosper­ industrial drain was due to the fact "that ous India is to them. . . . The second India we depend so largely for our manufactures is the India of the Indian — the poverty- upon foreign countries", which, according stricken India. This India bled and ex­ to Gokhale, accounted for one-third of the ploited in every way of their wealth, of total annual drain. Gokhale did not argue their services, of their land, labour and all for complete national economic self- resources by the foreigners — this India of sufficiency. He said, "entire dependence the Indians becomes the poorest country upon yourselves for industrial purposes is in the world after 150 years of British a dream that is not likely to be realised in stic enterprise centered in the towns drains the near future". Swadeshi was the key to grasped almost a century ago what modern the breakthrough, because the alien rulers economists have re-discovered, viz. the rea­ were not likely to encourage industrial lity of a dualistic economy which tends to development by means of protection. develop in a colonial economic setting and Swadeshi, in Gokhale's words, was design­ in which the backwash of foreign capitali­ ed to "furnish a perpetual stimulus to pro­ stic enterprise centred in the towns drains duction by keeping the demand for away the economic surplus of the country- indigenous things largely in excess of the side — the sprawling hinterland — which is supply. Whoever could help in the deve­ gradually denuded of its enterprise, its lopment of Indian capital, enterprise and skill, its capital and its economic viability. skill was a worker in the cause of Swa­ I would invite your attention to the fact deshi". This conception of Swadeshi evi­ that Dadabhai used the word 'exploita­ dently transcended the prevailing militant tion' in this context. He was not a Mar­ view of Swadeshi as a political weapon. xian Socialist. He did come in somewhat close contact with Mayers Hyndman, the One of the seminal ideas in Dadabhai British Socialist who made common cause Naoroji's exposition of the 'drain' theory with Dadabhai, because he thought India was his notion that the 'drain' was an ex- was as much a victim of capitalistic exploi­ ternal-cum-internal drain, the external and tation as his own country. But Dadabhai the internal drain being functionally rela­ took the view that foreign economic exploi­ ted and in precarious equilibrium with tation was due to the un-British character each other. This is my sophisticated inter­ of British rule. In other words, there pretation in terms of modern economic would have been no exploitation under ideas. Dadabhai meant this, although he what he called the "true British system" — did not use my language. Let me quote a proposition which would have been chall­ in this connection his famous observation enged by his friend Hyndman. Neverthe­ which the students of the present genera­ less, Dadabhai had developed a seminal tion will do well to digest: "In reality there idea which was extremely fruitful from the are two Indias — one the prosperous, the point of view of nationalist economic other poverty-stricken. The prosperous thinking. The full implications of this idea India is the India of the British and other were developed later in a different climate foreigners. They exploit India as officials, of ideas by Gandhi. non-officials, capitalists in a variety of ways, and carry away enormous wealth to As a faithful and humble disciple, DADABHAI NAOROJI, GOKHALE AND GANDHI 249

Gandhi readily absorbed the economic government about us if we take away or ideas of Dadabhai and Gokhale. He seiz­ allow others to take away from them al­ ed hold of two basic sets of ideas, viz. (1) most the whole results of their labour". In Dadabhai's theory of external-cum-internal 1921 he expressed the same idea more ex- drain, his conception of "two Indias", the plicity. Dadabhai had used the word 'ex­ dualistic, exploitative character of the ploitation' in connection with the economic Indian economy which accounted for the drain; but he held that it was the foreign­ abject poverty of the masses; and (2) ers who "as officials, non-officials and capi­ Gokhale's conception of Swadeshi. These talists in a variety of ways exploited India". ideas were lifted from the universe of in­ He was silent about Indians who coopera­ tellectual discourse to the plans of mass ted in this process. Gandhi held Indians political action. Herein lies Gandhi's equally responsible for the exploitation of greatness. With Gandhi, ideas became the the masses. In this respect, he was not springs of social action on a nation-wide merely being logical — his entire intellec­ scale — a phenomenon that was unique in tual and ethical stance had a new revolu­ Indias'. And both the India's reacted fav- tionary character and clearly anticipated a inference from the concepts of drain and new climate of ideas and aspirations cha­ swadeshi, viz. that swadeshi is the means racteristic of the latter phase of the Indian to bridging the gulf between the 'Two nationalist movement. This is what he said Indias. And both the India's reacted fav­ in 1921: "Our cities are not India. The ourably to this ruggedly simple logic in city people are brokers and commission the heyday of the Indian national move­ agents for the big houses of Europe, Ame­ ment. rica and Japan. The cities have coope­ rated with the latter in the bleeding pro­ Let me quote Gandhi to substantiate my cess that has gone on for the past 200 remarks. These quotations are typical in years. It is my belief based on experience the sense that Gandhi was never tired of that India is daily growing poorer". In stating and restating the ideas contained in 1922 he said on the same theme: "Little do them till the end of his days. Gandhi had the town-dwellers know that their misera­ given expression to the underlying ideas of ble comfort represents what they get for 'drain' and swadeshi even before he started their work they do for the foreign exploi­ the Non-Cooperation Movement. In his ter, that the profits and the brokerage are English' summary of Hind Swaraj he wrote sucked from the masses". In 1929 he said: in 1909 (because the original book was "Our commerce, instead of enriching our banned) we find the following passage: country, has become an instrument of our "If British rule were replaced tomorrow exploitation". Gandhi quoted Lord Salis­ by Indian rule based on modern methods bury whom Dadabhai Naoroji had also India would be no better except that she quoted in support of his 'drain' thesis, as would be able to retain some of the money follows: "It was Salisbury who had said that is drained away to England." In 1916 that since India had to be bled, the lancet he said: "Whenever I hear of a great pa­ must be applied to the most congested lace rising in any great city of India I say: parts. If revenue had to be derived by the 'Oh, it is the money that has come from process of bleeding in Lord Salisbury's the agriculturists. ... time, how much more must it be now, when India has become poorer as the re­ There cannot be much spirit of self- sult of all these years of exploitation?" 250 B. N. GANGULI

Gandhi felt so strongly about the exploita­ per cent from the salt tax which falls most tion of the masses that in 1930 he even heavily on the poor. advocated repudiation of India's foreign debt — a course of action which would "Village industries have been destroyed, have horrified Dadabhai and Gokhale. This leaving the peasantry idle for at least four is what he said: "Every ward, when he months in the year, dulling their intellect comes of age has the right to repudiate for want of handicrafts, and nothing has his debt. If he finds the trustee having been substituted as in other countries, for buttered his bread at the ward's expense, the crafts thus destroyed. he makes the trustee pay for his malprac­ tices or misappropriation or breach of "Customs and currency have been so trust. They must part with some of the manipulated as to heap further burdens on ill-gotten gains and cease in future to ex­ the peasantry. The British-manufactured pect the inflow to England of millions that goods constitute the bulk of our imports. are annually drained from India under one Customs duties betray clear partiality for pretext and another." the British manufacturers, and revenue from them is used not to lessen the burden It is instructive to note that the tradition of the masses, but for sustaining a highly of nationalist thinking which inspired the extravagant administration. Still more writings and speeches of Dadabhai Nao- arbitrary has been the manipulation of the roji, Gokhale and Gandhi was ultimately exchange ratio, which has resulted in mill­ enshrined in the famous Independence ions being drained out from the country." Pledge of January 26, 1930, in the formu­ lation of which Gandhi had played an im­ Gandhi gave a new orientation to portant part and which was an important Gokhale's positive and constructive concept landmark in the history of the freedom of Swadeshi. Gokhale had said that "the movement. I would like to state the main devotion to the motherland is enshrined in points in this pledge, in so far as they re­ the highest swadeshi" and that swadeshi late to the nationalist tradition of economic should be treated as "the gospel of this thought which I have been trying to deli­ devotion." After his return to India from neate in this lecture. Here are the relevant South Africa in 1915, Gandhi plunged into extracts:— the work of spreading this gospel. In 1916 he said at Madras: "Swadeshi is that spirit in us which restricts us to the use and ser­ "The British Government in India has vice of our immediate surroundings, to the not only deprived the Indian people of exclusion of the remote". This is a great their freedom but has based itself on the idea, the full implications of which we exploitation of the masses. have yet to understand in the presentday world. He spoke of the immediate religi­ "India has been ruined economically. ous surrounding; the use and service of The revenue derived from our people is indigenous institutions in the domain of out of all proportion to our income. Our politics; in the domain of economics the average income is seven pice, less than two use of things produced by immediate neigh­ pence, per day, and of the heavy taxes we bours and serving those industries by pay, 20 per cent are raised from the land "making them efficient and complete where revenue derived from the peasantry and 3 they might be found wanting". Gandhi's DADABHAI NAOROJI, GOKHALE AND GANDHI 251

Swadeshi also included cultivation of uninhibited critics of the British rule. But Indian languages, because, as he said in was it an unmitigated evil? All of them view of the fact that we have not been condemned not the British, but the system educated through Indian languages, the which the British brought to this country. masses have not shared our knowledge. Dadabhai was an admirer of the British "Much of the deep poverty of the masses", liberal tradition and exploited it? revolu­ Gandhi said, "is due to the ruinous depart­ tionary possibility. He knew that he could ure from Swadeshi in the economic and hope to carry conviction to the British rul­ industrial life. * * * We were greedy, so ers if he quoted British authorities. Some was England. * * * I think of Swadeshi not of them were distinguished British admini­ as a boycott movement undertaken by way strators who had borne the "whiteman's of revenge. I conceive it as a religious burden" in India with a guilty conscience principle to be followed. * * The way to born of the finest British liberal tradition. Swaraj lies through Swadeshi. A nation Indeed, it was some of them who were the that can save Rs. 60 crores per year and originators of the Drain Theory. What distribute the same among its spinners and Dadabhai condemned was the "Un-British weavers in their own homes will have ac­ rule" in India—a British system would have quired powers of organisation and indus­ made all the difierence. He thought that try that must enable it to do everything colonialism abroad and liberalism at home else necessary for organic growth". To were basically incompatible and, therefore, Gandhi, Swadeshi was the nexus between ultimately there could be a triumph of rea­ the "two India's", of which Dadabhai spoke son. Gokhale was also not inclined to be­ and which had to be brought into a rela­ lieve that the British rule was an unalloyed tion of "organic growth" — a pregnant evil. In the course of his presidential add­ phrase you find in this quotation — instead ress at the Congress session in 1905, of a relation of exploitation. In 1934 Gokhale said that he was conscious of the Gandhi stressed the distinction between advantages of the British rule as also its the old and new Swadeshi. He had by disadvantages. "I am not prepared to then given the old Swadeshi a new orien­ say", he said, "that the balance is not, on tation. He said that the old Swadesh had the whole, on the side of the advantages." emphasized the indigenous nature of the But he did not minimise the "steady deteri­ products, irrespective of the method of oration" in India's economic conditions. He production or the prospects of the pro­ added: "When the Mohammedan rulers duct. According to what he called his came they settled in this country and there new Swadesh, he ruled out the organised was no question of any foreign drain". industries, not because they were not Gokhale felt that the resources drained out Swadeshi, but because they did not need of the country would have laid the founda­ any special support. He was asked whe­ tion of industrial development in this coun­ ther he would encourage any and every try. Dadabhai also had the same feeling handicraft. "Not necessarily", he replied. about the missed opportunities of both re­ "I should examine each of them, find out source development and industrial deve­ their place in the economy of the village. lopment. Both of them deplored the tra­ If I see that they must be encouraged be­ gedy of arrested economic development cause of inherent merit, I should do so." and the "deepening" poverty of the coun­ try. Gandhi was more sharply critical than his Mentors. He said in 1946 that as the Dadabhai, Gokhale and Gandhi were 252 B. N. GANGULI

result of the British rule "such benefit as difference between the world-view of has really accrued to India is not part of Gandhi and that of Dadabhai and Gokhale foreign rule, but is the result of contact both of whom favoured the western path with a robust people. The good is inci­ of economic and social economic develop­ dental, the evil of foreign rule is inherent ment and wanted India to develop as a and far outweighs the good". Such a sharp modern nation. Gokhale, for example, reaction may be traced to Gandhi's oppo­ said: "Very few of us understand where we sition not merely to the colonial character are, as compared with others, and why we of the British rule but to western indus­ are where we are and why others are trialism, mass production, mass consump­ where they are". Indeed, he had a great tion and the utilitarian values which admiration for Japan's economic transfor­ accompany them, which had invaded mation which was based, to quote his own India, as he put it, in the wake of the Bri­ words, "on disciplined obedience and tish rule. Gandhi admired the robustness single-minded leadership". Gandhi also of the British, as is clear from the state­ admired the spirit of the Samurai, but I ment I have just quoted, but he was not doubt whether he admired Japan in the prepared to accept the values of a robust same way as Gokhale did. I shall return people who understandably regarded their to this point in the course of my second own values as robust values. There was a lecture.

(2)

I shall try to unravel the main strands of conscious social change as much as pur­ nationalist economic thinking on the posi­ posive social change was conditioned by tive content of India's economic and social purposive political and economic transfor­ development in an independent India. One mation, as the result of political freedom. should expect a projection of a romantic, We discern in their writings and speeches and even Utopian, vision of the future this balanced and integrated approach when freedom was not even around the which we have sometimes lacked in our corner. A strong fervour of idealism that generation. heightened the sense of nationalism in India should have understandably obscur­ Let me begin with Dadabhai Naoroji. ed the economic vision. But paradoxically, From the profusion of his ceaseless writing one finds that a strong sense of idealism is which was negative, critical and condem­ combined with a good deal of level-headed natory one can glean profound construc- and robust economic thinking grounded on tive ideas which, I dare say, are as valid the realities of mass poverty and economic and cogent today as when they were ex- and social backwardness. You would per­ pressed almost a century ago. Dadabhai's haps be surprised if I say that Indian natio­ understanding of economic growth was di­ nalists like Dadabhai, Gokhale and Gandhi rectly influenced by John Stuart Mill's fam­ were social reformers pre-eminently and ous dictum that 'industry is limited by discoursed on political and economic issues capital'. Dadabhai thus said: "To employ secondarily. They realised that conscious industry to land is to apply capital to the economic and political change required land. Industry cannot be employed to any DADABHAI NAOROJI, GOKHALE AND GANDHI 253 greater extent than there is capital to in­ appreciated by R. C. Dutt, a stern critic of vest. There can be no more industry than Indian land tenures. As regards Mill's test is supplied by materials to work up and of public education, Dadabhai said that the food to eat". Dadabhai thus grasped the country needed "a comprehensive plan of importance of capital formation and the national education", — both higher educa­ notion of capital as a wage-fund which tion and what he called 'popular educa­ brings into employment labour needed to tion." On the need for capital, Dadabhai produce wage-goods, capital goods and thought that the most vital deficiency was final goods. Surprisingly enough, he took that of capital. "If sufficient capital is the next important step in his reasoning to brought into the country and carefully and say that laws and government cannot judiciously laid out, all the present diffi­ create 'industry' without creating capital. culties will vanish." The railways and pub­ The Indian government had failed to lic works, "though few, are the hope of the create capital, and so there was mass future good, and far more is necessary in poverty. In other countries the state had the same direction." To Dadabhai, India's created capital and other conditions of problem was one of production rather than economic progress. In India an alien gov­ distribution. Let me quote: "Any poverty ernment had abstracted what would have in countries of western Europe is not from gone into capital formation and positively want of wealth or income, but from un­ inhibited economic development. In this equal distribution". For India, with such connection, Dadabhai examined the pre­ a wretched level of production or income, conditions of economic development "the question of its right distribution is which were either present or could very far off indeed." Dadabhai favoured be created by a government which the flow of foreign capital for resources served the people. He found that India development, but he insisted that it must had "natural agents in any quantity". be accompanied by real enterprise, that it There were extensive areas of waste land. must not be parasitical and exploitative, There was the possibility of much greater and that it must not depend on "guaran­ production on the land already under cul­ tees" and refuse to take risks, thus contri­ tivation. There was unlimited quantity of buting to the magnitude of the economic water awaiting utilization. There were drain without commensurate advantage to "vast mineral and other undeveloped reso­ the nation. Dadabhai thought that asso­ urces. Dadabhai said: "Labour we have ciation of Indians with economic develop­ enough if famines are not allowed to carry ment would achieve a great deal. It is away hundreds of thousands and emigra­ only under "the powerful stimulus of patri­ tion is checked by the supply of work at otism and self-interest" that one could ex­ home". He applied Mill's tests regarding pect the development of economic enter­ the pre-conditions of development. There prise. Dadabhai recommended a century was security of property as well as better ago what we in our wisdom today have government. Mill's condition of moderate been considering desirable, viz. "associa­ taxes was not fulfilled. Or whether India tion of government and private enterprise had a good system of land tenure, which in works in which government control is ensured an increase of agricultural produc­ necessary". He argued that such an tion, Dadabhai did not commit himself, arrangement would bring into play the ele­ because "the great doctors of land tenure ment of self-interest and avoid waste that disagreed" — a position which was not is so characteristic of government under- 254 B. N. GANGULI takings. He also recommended that con­ along with agriculture, to have a balanced struction in public works projects should economy at a higher level of productivity. be left mainly to Indian nationals, capital Gokhale said that the "object aimed at by being supplied by the foreigner. Dadabhai the East India Company was to reduce maintained that "all great undertakings India to the level of a merely agricultural that India herself is unable to carry out country producing raw material only, with­ for developing the resources of the coun­ out factories to manufacture the same. try should be undertaken by the State, This was the first stage in our industrial but carried out chiefly by Indian agency decay. "Unlike Gandhi," Gokhale said: and by preparing Indians for the purpose." "We shall not have deplored even this des­ What impression does on get from these truction of our indigenous manufactures if excerpts from his writings that I have quo­ the Government had assisted us in starting ted? Here was a great Indian who thought others to take their place." Gokhale recall­ positively in terms of building up a mod­ ed in this connection that "steam and ma­ ern nation on the basis of resource deve­ chinery were unknown to us and we did lopment, creation of overheads and indus­ not have anything like the combination, trial development on the basis of foreign skill and enterprise of the West." Gokhale assistance which did not exploit the na­ expressed his admiration for Japan's eco­ tion. Was he not so much in advance of nomic development, which, as I have al­ his times? Indeed, the emphasis on state ready said, was the nationalists' object- initiative in economic development which lesson. He referred to Japan's "disciplined we have taken for granted in our age was obedience and single-minded leadership", a novel idea, but nationalists of the older and "tremendously strong national feeling'', generations seized hold of this idea, be­ and to the role of state assistance and the cause this was the lesson of the remarka­ "adoption of western methods". Gokhale ble economic transformation of Japan after believed in machine production, in moder­ the Meiji restoration, in which State enter­ nization, in social change. As I explained prise, backed by patriotism and national earlier, he put a new positive interpreta­ discipline, played so important a role. tion on Swadeshi. Development of machine production was, in various ways, a "vastly difficult problem", as he put it, and, in this Gokhale's thinking on industrial deve­ connection, he referred to the difficulty lopment supplies the link with Dadabhai's created by rapid obsolescence of plant and thinking, on the one hand, and Gandhi's machinery. He said he could only fall economic ideas and the general trend of back upon Swadeshi to meet this difficulty, national thinking, on the other hand. and laid repeated emphasis on the urgency of technical and higher scientific education Gokhale and most of the enlightened as an instrument of technological progress. nationalists of his generation were influen­ ced by List's National System of Political Economy. On the one hand, they had the Let me now explain how Gokhale visua­ example of Japan and, on the other hand, lised Swadeshi in the context of the cotton they were profoundly impressed by List's textile industry, particularly its hand-loom nationalistic approach to economic policy, sector. He said in 1905 that "even strict according to which free trade policy was Free Traders should have nothing to say not a correct policy for a developing coun­ against the encouragement which the swa- try which wishes to develop manufactures, deshi movement gave to this industry". It DADABHAI NAOROJI, GOKHALE AND GANDHI 255 was no state protection, but voluntary ac­ cheap looms. In fact, Havell had gone so tion on the part of the consumers. Indi­ far as to say that "the immediate revival genous manufacture of cotton goods was of the handloom weaving industry on a justified by the free trade principle of com­ commercial basis demands the most earn­ parative cost. There was impediment to est consideration." the operation of this principle, and swa- deshi removed this impediment. Indeed, Gokhale wanted protection for Indian- in spite of this impediment, the cotton tex­ industries, but he was realistically cautious tile industry was the largest industry, next about tariff protection. For example, he to agriculture, in Indian hands. Gokhale's said that Indians should encourage Indian observations on the hand-loom sector de­ sugar as far as possible and have "nothing serve special attention, in view of Gandhi's to do with foreign sugar". India "still subsequent khadi movement, the econo­ adhered to old-world methods of produc­ mics of which was anticipated by Gokhale tion. This must change. Tariff protection and cogently argued in Gokhale's congress would benefit only sugar manufacture in address in 1905. Gokhale recalled that, factories by foreign methods, whereas 80- according to the census of 1901, about a 100 per cent protection needed for indi­ quarter of a million persons were engaged genous manufacture would not be worth in handloom production. Handlooms con­ while. He argued in favour of positive sumed 22 million pounds of yarn of which ways of assisting the indigenous sugar in­ 19 millions were produced locally. The dustry. He was doubtful whether the re- quantity consumed by power-looms was placment of other crops by sugercane one-half of what was used on the hand- would be a good thing. If this issue was looms. The amount of swadeshi cloth con- (uncertain, he was doubtful whether a tariff sumed was 130 crore yards to which hand- duty of 30-40 per cent will not merely looms contributed 90 crore yards. One- (raise the profits of the English sugar manu­ third of the total amount of cloth consum- facturers, to the extent of Rs. 2 crores. On ed was swadeshi cloth. The rest was im- another occasion, Gokhale drew a distinc­ ported cloth of superior quality. Accord-; ­ion between the right kind of protection ing to Gokhale, the main hindrance in the and the wrong kind. Protection was of the way of import-substitution was lack of 'wrong kind when, to quote his words, capital. It was, therefore, sensible to look powerful influences and combinations and to the development of the handloom sec­ 'interests receive assistance, to the prejudice tor. As Gokhale said, "handlooms are like­ of the general community". Do not we ly to be of greater immediate service". In 'have this problem on our hands in the year this connection, he quoted the opinion of of grace 1970?, Vithaldas Damodardas Thackersay (1873- 1921), a big textile mill-owner himself and Like Dadabhai, Gokhale believed in a distinguished public man of Bombay, education as a basic factor of economic and who said, "the village industry gives means 'social development. He pleaded for "ad­ of livelihood not only to an immense num­ ­anced notions of the functions of educa­ ber of the weaver class but affords means ­ion. His argument in support of the diffu­ of supplementing their incomes to agricul­ ­ion of education rested "not merely on turists". Thackersay referred to the att­ moral, but also on economic grounds". empts of some Englishmen, of whom E. B. General education is the foundation and Havell was one, to supply improved and the necessary pre-condition of increased 256 B. N. GANGULI economic activity in all branches of natio­ sation, was critical of this way of thought nal production. Gokhale thought that edu­ as a throwback to medievalism and mildy cation "ensures more equal distribution of suggested that Gandhi would change his the proceeds of labour, development of the mind after he had seen India. Gandhi was powers of a nation and a larger capacity a newcomer and he should not have ex­ for social advance". He believed in modern pressed himself in such a forthright man­ industry and scientific agriculture and, ner. Gradually Gandhi modified his posi­ therefore, pleaded for the development of tion. For him what was more important technical education on a national scale. was acceptability of his Utopian socialism by gradual stages rather than at one Gandhi's positive thinking on India's bound, because he was, as he liked to economic transformation was embedded in think, a 'practical idealist'. Gandhi said: the past tradition of thinking, but it ac­ "I have heard many of our countrymen say quired a militant and revolutionary con­ that we will gain American wealth, but tent. It was centred round his principle avoid its methods. I venture to suggest of non-violence, which from the economic that such an attempt, if it were made, is point of view, meant a social and econo­ foredoomed to failure". But what if we mic order devoid of exploitation. Gandhi were not so ambitious? Gokhale or Dada- derived his inspiration not from Mill or bhai or others thought and still think that List, but from Ruskin. As he said, he we should not be so ambitious. Eventually, found his deepest thoughts reflected in Gandhi was not inclined to reject this pos­ Ruskin's Unto this Last. According to sibility entirely. He was opposed to Gandhi's own presentation, Ruskin's tea­ machinery, to begin with, because he was, chings were: "The good of the in­ like Edward Carpenter whom he admired, dividual is contained in the good of all; opposed to modern civilization. But gra­ a lawyer's work has the same value as the dually he preferred to lay stress on the barber's because all have the same right purely economic aspects of machinery and of earning their livelihood from their work; machine production. After he found him­ a life of labour, i.e. the life of the tiller self in the vanguard of the freedom move­ of the soil and the handicraftsman is the ment in the 1920's Gandhi clarified his life worth living". Gandhi practised these position time and again. For example, he principles in his Phoenix Farm—a colony said: "What I object to is the craze for he established in South Africa. When machinery, not machinery as such. The Gandhi returned to India he dreamed of craze is for what they call labour-saving converting his country into a vast Phoenix machinery. Men go on 'saving labour' Farm. His Hind Swaraj, which was prac­ till thousands are without work and thrown tically modelled on Unto This Last and on the streets to die of starvation. I want which he had written in 1909, became his to save time and labour, not for a frac­ testament of faith. In the English sum­ tion of mankind, but for all". On another mary of Hind Swaraj Gandhi said: "It is occasion he said: "I am aiming not at not the British people who are ruling In­ eradication of all machinery, but its limi­ dia, but it is modern civilization through tation". He was once asked whether all its railways, telegraph, telephone and al­ complicated power-driven machinery most every invention which has been should go. He replied: "It might have claimed to be a triumph of civilization". to go, but I must make one thing clear. Gokhale, his Guru, a believer in moderni­ The supreme consideration is man". DADABHAI NAOROJI, GOKHALE AND GANDHI 257

Gandhi was concerned with machines entire nation should participate in this which should assist in the satisfaction of process, not only by plying the spinning- man's primary wants and not machines in wheel, but also by preferring to buy hand- general for which he was not prepared to woven cloth made out of hand-spun yarn. make exceptions. This would be a small recompense, Gandhi thought, for the exploitation of The key-note of Gandhi's conception of the rural masses by the urban classes economic transformation was his deep which had gone on for such a long time, concern for what Dadabhai had call­ as Dadabhai had pointed out, and which ed "India of the Indians", the other Gandhi had also described as "the bleed­ India which enthusiasts for economic ing process". In this controversy with poet development treat often in the same Tagore on the question of universalization way as the elite treat the masses. of hand-spinning Gandhi said: "I do in­ Gandhi considered every plan of develop­ deed ask the poet and the sage to spin ment from the point of view of the India the wheel as a sacrament." On another of villages. His genius lay in galvanising occasion he said: "If the mills made su­ this India into activity and drawing it into perfluous addition to the treasures of the the mainstream of the freedom movement. already rich, the spinning wheel is cer­ The important step towards this was the tainly spiritually superior to it inasmuch Khadi movement, the movement for the as it filled the pockets not of the already development village industries and the rich but the starving and the needy mil­ several movements which he personally lions". *** My ideal is equal distribution, directed against the abuses and oppres­ so far as I can see, it is not to be realized. sive practices inherent in agrarian rela­ I, therefore, work for equitable distribu­ tions. Ecocomics, ethics and religion were tion. This I seek to attain through Khad- all grist to Gandhi's mill of revolutionary dar." Gandhi, however, emphasized that social and political action centred on the production and sale of khadi could be khadi movement. established on a commercial basis — only it must have the backing of consumers' What was the significance of the Khadi preference on a wide scale. Just as E. B. movement? Gokhale had reached the Havell believed in the practicability of point that the handloom sector of the cot­ improved, but cheap looms, Gandhi spared ton textile industry should be protected no pains to mobilise effort to improve the by means of swadeshi, that it should ex­ spinning-wheel and, to a large extent, suc­ pand for the purpose of providing a sup­ ceeded. He loved to see spinning wheels plementary source of income to the far­ as so many cotton mills in millions of vil­ mers in the slack season, and that im­ lage homes. This was his conception of proved handlooms should be manufactur­ massive industrialisation in a backward ed at a reasonable cost. Gandhi thought country. He believed in the aesthetic and that this was not enough. Why not hand- creative aspects of craftsmanship. He ar­ spinning which would provide a much gued that it would banish greed, remove larger volume employment where it was the dullness of the agricultural masses most needed, so that something, however and enable them to step out of the demo­ little, could be done without much invest­ ralisation of primitive poverty. Was this ment of capital, to raise the level of liv­ not what Gokhale also wanted? Mass pro­ ing of the poverty-stricken millions. The duction? Yes, certainly, "but not based 258 B. N. GANGULI

on force. After all, the message of the portation of Rs. 9 crores worth of raw spinning-wheel is that. It is mass produc­ hides much of which was returned to In­ tion, but mass production in peoples' dia in the form of manufactured products. homes". Gandhi said in 1934 that there was "dou­ ble drain", a picturesque phrase that he Gandhi's deep solicitude for other vil­ used in this connection, i.e. loss of value lage industries stemmed from the same added by manufacture plus loss of oppor­ strategy of economic and moral develop­ tunity for training. Secondly, may I re­ ment. In 1934 he said: "the criminal ne­ mind you of a very pregnant remark which glect of the peasants and artisans has re­ I quoted in my earlier lecture? Gandhi be­ duced us to pauperism, dullness and habi­ lieved that, if as the result of swadeshi, we tual idleness. *** India has limitless re­ could become more self-sufficient by sources whose full exploitation in the vil­ spreading production and employment in lages should have prevented poverty and millions of rural homes, the nation "will disease. But the divorce of intellect from have acquired powers of organisation and bodily labour has made us perhaps the industry that must enable it to do every­ shortest lived, most resourceless and most thing else necessary for organic growth". exploited on earth". Rural industrialisa­ You will agree that "power of organisation tion was, therefore, a means by which lab­ and industry" is a crucial pre-condition of our linked with intelligence could acquire economic development. From various a dignity of its own, apart from the obvi­ angles, social scientists have been trying ous advantage of the increasing scope for nowadays to understand the bearing of employment of unemployed labour in the this factor on economic growth. Without villages. As I have already said, Gandhi a well-knit economy, a nation cannot be­ was opposed to indiscriminate develop­ gin to travel on the path of development. ment of rural industries. He said that the Gandhi wanted "organic growth" as the case for such industries must be consider­ basis of a well-knit economy, and this pro­ ed on merits, depending upon the suitabi­ cess of organic growth had to involve "In­ lity of each for any specific rural environ­ dia of the Indians" — the poverty-stric­ ment. He thought that this needed a lot ken, ignorant masses dulled by a primi­ of modem scientific research which he tive kind of manual labour. tried to stimulate as far as he could in his life-time. To Gandhi, the "divorce of intellect from bodily labour" was a great handicap in There are two aspects of Gandhi's con­ the way of economic and moral develop­ ception of rural industrialisation which I ment. The "masses" had been "dulled" consider extremely significant. First, and rendered "resourceless" as a result of Gandhi applied Dadabhai's conception of this divorce. The 'classes' were also di­ a two-fold loss involved in the economic vorced from life as the result of the sepa­ drain — the material loss and the loss of ration of bodily labour from intellect, so opportunity for training when foreign men that their education and culture failed to and goods become a substitute for Indian give them a real sense of purpose, of iden­ goods which could have been produced by tity and of significance. Gandhi wanted Indians who could have acquired the ne­ to achieve a break-through by removing cessary training and skill by producing this divorce. It is from this angle that them. In 1934 Gandhi deplored the ex­ one can grasp his theory of education. viz. DADABHAI NAOROJJ, GOKHALE AND GANDHI 259 that it must be craft-based, vocation- it meant asking the state to surrender a oriented education, in the scheme of which prospective revenue in favour of a few physical labour must be harmonised with individuals, as in Bengal". But in spite acquisition of knowledge, skill and cul­ of the clarification, the mention of Perma­ ture. There is no doubt that Gandhi was nent Settlement confused the issue. As a appalled by the futility, irrelevance and practical statesman, Gokhale knew that expensiveness of a system of education Permanent Settlement was not possible in which neither produced a real elite, nor Raiyatwari areas. What he was aiming at was within the reach of the "India or In­ was a reduction in the land revenue de­ dians" that really mattered. mand and a rule that it must not be re­ vised upwards, unless there was a rise of On the problems of land tenures and prices; even then the increase must not agrarian relations Gokhale and Gandhi exceed a certain proportion of the rise of carried forward the tradition of thought prices. Gokhale, however, maintained that of Indian nationalists. Careful and realis­ nothing would avail, unless steps were tic thinking on these problems could be taken to deal with the problem of indebt­ traced back to Raja Ram Mohan Roy. edness. There should, first, be "composi­ Dadabhai was enigmatically silent on this tion" of debt and after the peasant was problem, because he was unable to take released from the bondage of debt, his a position between British administrators land must become inalienable. This should and a powerful nationalist critic in the per­ be supplemented by provision of credit. son of R. C. Dutt. Gokhale was in the line But Gokhale took care to mention that of Dutt and Ranade. He was concerned "the real remedy for the chronic difficulties not only about poor peasants, but also ab­ of the ryot must be sought in the promo­ out the poor farming communities living tion of non-agricultural industries to re­ in forest areas — the Adivasis who also lieve the pressure of the population on the commanded Gandhi's passionate interest. soil." Gokhale eloquently exposed the evils of the Raiyatwari System. He explained the mischievous effects of the policy of perio­ Gokhale believed in scientific agricul­ dic revision, how improvements were tax­ ture. He said in 1907: "You have got to ed and lands which left no margin for the abolish old methods as much as possible payment of assessment were assessed all and effect improvements by introducing the same. Ranade had argued for a kind the methods of the West". But he realised of permanent settlement in the interest of that land being divided and subdivided, the development of capitalistic farming, most holdings were so small "as not to because he was convinced of the inevita­ lend themselves to the use of advanced bility of transfer of land from the "impe­ appliances". He was in favour of young- cunious many to the saving few". Gokhale men, receiving advanced agricultural took a more human view of the peasantry training in the west and settling down to as a class. Nationalists of the older ge­ scientific farming, instead of hankering neration used to defend the Bengal Per­ after government service or overcrowding manent Settlement. Gokhale also argued the already crowded bar. Gokhale thought in favour of a kind of permanent settle­ that development of irrigation was the key ment in Raiyatwari areas, because "it to agricultural progress. He was a sharp would not be open to the objection that critic of high irrigation rates and a strong 260 B. N. GANGULI advocate of the expansion of public irriga­ Once when he was accused of following tion projects. a tactic which was "tragic for the exploit­ ed", Gandhi replied that the peasants of Gandhi's view of the agrarian problem Kheda, Bardoli and Champaran had gain­ was fundamentally a revolutionary view. ed. "He who runs may see", he said, To bridge the gap between the two Indias "that the phenomenal mass awakening can­ he identified himself with peasant masses, not have taken place without the masses not only symbolically by his dress and having added considerably to their manner of living but also spiritually. In­ stature." deed, he began his political mission with mass movements amongst the peasant de­ Although Gandhi was not so much in­ signed not only to remedy the local wrongs terested in the technical problems of land but also give the peasant a new sense of ' tenures and the incidence of rent, he did purpose and solidarity. To Gandhi the react to the traditional nationalist think­ agrarian problem was one of equitable ing on these problems. He said in 1930: distribution. He said in 1928: "At present "The terrific pressure of land revenue must there is no proportion between the wholly undergo a considerable modification in an unnecessary pomp and extravagance of independent India. Even the much-vaunt­ the moneyed class and the sqalid surround­ ed Parmanent Settlement benefits a few ings and the grinding pauperism of the rich Zamindars, not the ryots. The ryot ryots in whose midst the former are liv­ has remained as helpless as ever. He is ing.** If Indian society is to make real a mere tenant-at-will. The whole revenue progress along peaceful lines there must system has to be revised". Although he be a definite recognition on the part of believed that private landlordism is unfair the moneyed class that they must regard and anachronistic, he was not in favour themselves even as the Japanese nobles of dispossessing the landlords of their land did, as trustees holding their wealth for by violence, for two reasons. First, vio­ the good of their wards, the ryots". Gandhi lence would create more problems than it was not interested in particular systems would solve, apart from the fact that he of tenure so much as he was interested in was opposed to violence on principle. Se­ the more basic question of peaceful eco­ condly, he felt that the landlord could also nomic progress. He was apprehensive, to contribute his intelligence, leadership and quote his words, "of the impending chaos organisation to the common good as a into which, if the capitalist does not wake trustee. If, however, land had to be na­ up betimes, awakened, but ignorant and tionalised, Gandhi did not want com­ famishing millions will plunge the country, pensation to be paid, because as he said, and which even the armed forces that a that would be robbing Peter to pay Paul. powerful government can bring into play, Gandhi believed in cooperative farming. cannot avert". Gandhi did not want the What he said in 1942 on this subject in­ process of mass awakening being dissipat­ dicates that he had very radical views on ed by violence. His mass Satyagraha the structure of farm organisation, which movements in Champaran, Kheda and even today are considered too radical. Let Bardoli ostensibly for remedying the me quote him: "I firmly believe that we landlords' oppression of the peasantry shall not derive the full benefits of agri­ were designed to awaken the peasant culture until we take to cooperative farm­ masses to a sense of strength and dignity. ing. Does it not stand to reason that it is DADABHAI NAOROJI, GOKHALE AND GANDHI 261 far better for a hundred families in a vil­ Gokhale did not like the unfair distribu­ lage to cultivate their lands collectively tion of revenue, as the result of which and divide the income therefrom, than to local welfare services were started. He divide the land anyhow into a hundred quoted Bastable's Public Finance to say portions? What applies to land applies that "land is pre-eminently a source from equally to cattle". What Gandhi called which local taxation must necessarily be cooperative farming would be called 'col­ largely drawn". He pleaded for adequate lective farming' which is an anathema to grants-in-aid for local bodies to enable most political parties today. On the other them to adequately exercise their welfare hand, Gandhi was opposed to mechanised functions, such as provision of primary agriculture and the use of artificial ferti­ education, improvement of sanitation, lisers. He was a great believer in the famine relief, fighting epidemic, water- efficacy and rationality of organic manure. supply, medical relief, etc.

Indian nationalist thinking has had a Gandhi shared the nationalist thinking long tradition of thinking on the subject on decentralisation of economic and poli­ of economic democracy at the grass-roots. tical functions through local self-govern­ This was a subject relevant to Political ment. He also imbibed Gokhale's enthu­ Economy as it was understood in the days siasm for self-rule of the village Pancha- of Dadabhai and Gokhale and down to yats. But in harmony with his identifi­ the Gandhian period of the nationalist cation with the peasant masses and his po­ movement. In my judgement, one of pulist view of democracy, Gandhi carried Gokhale's most enduring contributions was the idea of Panchayats very much farther his constructive ideas on decentralisation than his Mentor could contemplate. of powers and functions at the level of local self-government in the rural In 1946 when freedom was round the areas of the country. What he said corner Gandhi said (Harijan, July 22, more than fifty years ago has a di­ 1946): "Indian independence must begin rect bearing on what is being sought to at the bottom. Thus every village will be be achieved today through the Panchayati a republic or Panchayat having powers. Raj institutions. Some of the operational It follows, therefore, that every village has principles which have come down to us to be self-sustained and capable of manag­ through the Gandhian tradition seem to be ing its affairs, even to the extent of de­ associated with Gokhale's thinking. Go­ fending itself against the whole world. It khale laid emphasis on village self- will be trained and prepared to perish in government not only as an instrument of the attempt to defend itself against any democratic freedom for the masses, but onslaught from without. Thus ultimately also as an instrument of rural welfare and it is the individual who is the unit. But local resource development. In his evid­ this does not exclude dependence on the ence before the Decentralisation Commis­ willing help from the neighbours or from sion in 1907 he suggested that in all vil­ the world. Such a society is necessarily lages with a population of 500 and above highly cultured in which every man and a Panchayat should be constituted by sta­ woman knows what he or she wants, and tute and that villages with smaller popu­ what is more, knows that no one should lation should either be joined to large ad­ want anything that others cannot have joining villages or grouped into unions. with equal labour". Gandhi admitted that 262 B. N. GANGULI this was a Utopian picture, but he added: never do. The present power of the "Let India live for this true picture though Zamindars, capitalists and Rajas can hold never realised in its completeness". With sway only so long as the common people rare foresight, Gandhi made another com­ do not realise their own strength. If the ment which seems highly significant in re­ public non-cooperate with the evil of trospect: "Many would have India be­ zamindari or capitalism, it must die of in­ come a first-class military power and wish anition. In the Panchayat Raj only the for India a strong centre and build the Panchayat will be obyed and the Pancha­ whole structure round it. God will con­ found the wisdom of these big men and yat can only work through the law of their will provide the villages with the power own making". Political leaders must have to express themselves as they should" been taken aghast. The old man was talk­ (emphasis mine). What Gandhi was trying ing not only of collective farming but also to say had profound revolutionary implica­ of Panchayats which were to be like rural tions which the political structure that communes with their law-making powers was taking shape even when Gandhi was which they could use to bring about a alive was incapable of absorbing into its painless extinction of landlordism and system. Gandhi further said in 1947: capitalism. But the idea was lost in the "When Panchayat Raj is established pub­ din and confusion of the hectic months lic opinion will do what violence can of 1947.