Indian approaches to a socialist society [by] Margaret W. Fisher [and] Joan V. Bondurant.

Table of contents :
Front Cover
Title Page
Table of Contents
Section 1 (Page 1)
Index (Page 19)
Section 2 (Page 35)
Section 3 (Page 103)
Bibliography (Page xxxvii)
Bibliography (Page xxxviii)

Citation preview

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Number 2

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July

1956

INDIAN

Appºoſ CHES to

0.

Socialist Society

ND I A N PRESS

Nst

pig Esrs Tu

of Ty of

T E

UN v ERs

- Mono N

T E R

GRAPH SERIES

N AT I C N A

CAL | FC

R

N

A

S T U D

E

KE

L E

E E R

AMES LIBRARY OF SOUTH ASIA Founded by Charles Lesley Ames

UNIVERSITY OF MINNESOTA

LIBRARY

|N D I A N P R E S S

DIG

E

ST S

– MO NO G

RAPH S

E

R ES

1NTYIAN

APPROACHES

to

Q

Socialist Society

Margaret W. Fisher Jocun V. Bondurant

-

U

N|V

-

Number 2

ERS I T Y

O

F

C A

-

L | F

July O

1956

R N |

A

•

B E R

KE

L E

Y

I

N D

I

A N

P R E S S

D

I

G

E S

T S

P R

O

J

E C T

Advisory Committee Woodbridge Thomas

C.

David G. Mandelbaum

Bingham

Blaisdell,

Jr.

Richard

L. Park

Robert A. Scalapino

Van Dusen Kennedy

Margaret

Joan

W.

W.

Fisher, Editor

Bondurant, Associate

Staff Dixon Davis, Editorial Assistant Richard W. Koontz, Research Assistant Susan H. Perkins, Research Assistant Marva S. Kinariwala, Secretary INSTITUTE UNIVERSITY

OF

INTERNATIONAL

OF CAL IFORNIA

STUDIES

AT BERKELEY

Editor

Fºrm

H X

. F

333,

TA

H

BL E

CO

OF

N

TEN TS

INTRODUCTION NEHRUt S

1

"SOCIALISTIC

PATTERN"

5

The Congress

Party's

The Reaction

of the Indian Press

9

The Behavior

of the Stock Market

16

The

Political Effects of

The Character

5

Commitment

Avadi

20

of Nehru's Socialism

31

"GANDHIAN SOCIALISM" The 1949

35

Sarvodaya Plan

37

"Constructive Work” After Gandhi's Death The

Inauguration of Bhoodan Yajna

40

Traditional Elements

43

The Sarvodaya View

47

of the State

Sarvodaya Versus the Welfare

State Concept

52

Organizational Aspects. of Sarvodaya

57

State Law and Bhoodan

60

Property Right in Land The

Political

-

Aspect of Sarvodaya

Sarvodaya and the

Socialists

Socialist Party Positions Sarvodaya

and the Congress

The Goal and the POSTSCRIPT

>

39

Prospects

62 69 71

80

Party

87 100

103

APPENDICES

Nehru's

II.

III. IV.

"Socialistic Picture" for Indian Society

Congress Economic

Resolutions: Avadi,

Congress Economic

Resolutions: Amritsar,

The Government

April

A.

Statement of

6

B.

Statement of

30

April

of

a

Three Descriptions

WI.

Sampattidan Pledge

VIII.

The Government's View

III.

IV.

xi xvi.

1956 XX

xxiii of Village Management Yajna Act

OF WORKS

xxiv.

xxviii

CITED

Books and Pamphlets

Periodicals Regularly Surveyed Periodicals not Regularly Surveyed Miscellaneous Periodicals

Articles

viii

1948

Sarvodaya Society

The Windhya Pradesh Bhoodan

BIBLIOGRAPHY

II.

1956

of India's Industrial Policy

W.

WII.

1953

i

from

Documents

Graphs Showing Stock Market Behavior, 1954-1955

xxxvii xxxix

xlii xlii

xliii

19

I N T R O DUCT I ON There is perhaps no word in the vocabulary of politics with so wide a range of meaning as the word socialism. . The recognition of the "social problem" as of central significance and the "belief that men ought to take some sort of collective or associative action to deal with it," are indispensable characteristics of socialist theory.* Also essential to social ist thought are the substitution of cooperation for competition as the proper mode of social organization, with the concept of the general welfare as the overriding value. Beyond these broad and partial generalizations socialism becomes a prolifer ation of many schools and diverse types. But aside from sys tematized political thought, socialism may represent little more than an attitude or an approach, unformulated and vague ly conceived. Such would appear to be the character of the general acceptance of socialism in India. There are, to be sure, Indians well grounded in socialist thought and preoccupied with the search for an adequate theory and program of socialist politics; but for most Indians social ism is a "beautiful word." It was so for Gandhit and in great part remains so for those Indians who are politically aware. Socialism has captured the emotive sense of good and distant goals: is for Indians a welcome word suggesting growth and

it

it

well-being

and

integrity in

civil

life.

lie implicit in the preamble of tution with its promise of social, economic appears to

tice

and

To many, socialism the Indian Consti and political

equality of status and of opportunity.

jus

So pervasive is this connotation of good and desirable that Indian political parties from Left to Right freely adopt the word socialism in divergent statements of objectives proceeding Indeed, from widely separated points of departure. India has no parties of the Right as this is understood in the West. In economic policy all parties are committed to welfare

*G. D. H. Cole, Socialist Thought; the Forerunners 1850 (London: Macmillan, 1953), p. 302.

1789

t "Socialism is a beautiful word, and so far as I am aware, in socialism all the members of society are equal--none 10w, none high.... "... only truthful, non-violent and pure-hearted social ists will be able to establish a socialistic society in India

and the world. To my knowledge there is no country in the world which is purely socialistic. Without the means described above the existence of such a society is impossible." Excerpted from a statement by Gandhi as reprinted on the front cover of the Congress Party's official publication, Economic Review, 1954, December 15 (from Hari ian, 1947, July 13).

l

2

objectives. whose

In India "Right-wing" commonly designates parties policies look back to India's Hindu past. The communal

emphasizing "Bharatiya" Hindu Mahasabha presents a program (Hindu Indian) culture and speaks in terms of ancient Hindu polity and traditional Hindu values. But the Hindu Mahasabha, like so many other parties, has adopted what its president described as a "more or less Socialistic programme.” Such "Right-wing" parties as the Hindu Mahasabha and the Jan Sangh, policy and however, lay very little emphasis upon economic their use of "socialism" remains fragmentary and inconsistent.

Party, at the

extreme, emphasizing other socialism, and this Muscovite approach belongs rather to a study of International Communism than to a study of Indian approaches to a socialist society. Substantial developments in the use and interpretation of socialism emerged along three other channels in the political 1ife of India and it is with these developments that this study is concerned. The Communist economic doctrine,

adheres

to

of the Congress Party in taking up January 1955) was to appeal to as in the country--and in the Party-in order to awaken enthusiasm for a program of action. For those who had misgivings that socialism was a new and foreign creed, Congress leaders found precedents not only in Gandhi dating but also in ancient Hindu classics from India's "Golden Age." For others, Congress offered a welfare prog ram which, so they said, was socialist in spirit. The Cong ress, focusing upon accepted welfare objectives, avoided ideological controversy.

The primary endeavor banner ( in many elements as possible

the

socialist

Sarvodaya-The significance of another strand--Gandhian arises from the influence which its ideology has upon so many Indians and the respect which its leading exponents almost universally command. Sarvodaya is, for the Western observer, especially susceptible to misinterpretation and failure of understanding because it lends itself--as do other aspects of Gandhian ideology--to popular oversimplification and because it has no semblance of a ready-to-hand system. Sarvodaya, an ideology currently in process of change, is couched in strange and muddied verbiage, but its influence upon prominent leaders in government and in party politics is manifest. In this study

an

attempt has been

made

to trace the

source

and the

influence. It has also seemed desirable to grapple with the ideological framework represented in Sarvo daya and to indicate are as in which contradictions and con

direction of

flict

may

such

develop as between

Sarvodaya

on the one hand, and

* See The Indian and Pakistan Year Book and Who's Who, 1950 (Bombay: Bennett, Coleman), pp. 468-469.

or political parties on the other. Sarvodaya is Indian development which requires explication in terms of an Indian framework and Indian thought processes. It may be presumptuous for the Western observer to attempt to supply that explication, but an examination of Sarvodaya can at 1east lead the observer to some further understanding of government

an

eminently

Sarvodaya, he will find, upon draws the traditional. For in well as traditional concepts are being reworked: here, too, the Western impact upon India is reflected. From such reworking a syncretic product may emerge: Sarvodaya, is often said, is the "truly Indian brand of the framework

and

the processes.

is Indian not alone

because Sarvodaya Western as

Socialism.”

it

it

influence of Sarvodaya is to be seen both in the Con among the Socialists. In the Congress that influence finds expression in the prominence of such individual Congressmen as Party president U. N. Dhebar, and in official party support to the objectives and techniques of Sarvodaya. Congress, responding to the challenge to govern, has adopted fragments of ideology to propagate an action program. At times, Congressmen have dipped back into tradition for reassur ance that socialism is "in keeping with the Indian way of life and the Indian genius.” At other times Congress socialism has taken on the centralized, industrialized aspects of a Western socialist system. The program could be delineated, but a social philosophy acceptable at once to both tradition alists and modernists, has yet to be formulated. The search for such a formulation has not been the concern of Congressmen. Indeed, the composite character of the Party and the predispo sition of its prominent leadership to reject dogma, have made the development of a systematic ideology both unnecessary and uncongenial. The

gress Party and

however, The search for an adequate theory of politics, has been one of the serious preoccupations of the Indian intel 1ectual outside the Congress, and has been most vigorously leaders, pursued by leaders of socialist parties. These steeped in Western socialist thought, and at once disturbed by socialism's failure in the West and stimulated by the need to adapt socialism to the Indian circumstance, have felt a dual ideological tools which could both They have sought need. challenge the Congress and provide pattern and process for economic development and social change. As their search pro ceeded, political events in the country forced practical tical decisions which led to division within Socialist ranks. The adoption by the Congress (in January 1955) of a resolution pattern of society" committing that Party to a "socialistic

poli

* U. N. Dhebar, The New Social Order National Congress, 1955), p. 21.

(New

Delhi:

Indian

4 a tactical problem which split the Socialist leadership into opposing camps. The way in which this came about illumi

posed

nates several aspects of Indian politics and will be examined in detail. One group of Socialist leaders suggested that they had "deeper affinity with Sarvodaya" than had the Congress, and asked: "Can we discover or develop an integration of Sarvo daya and Socialism against the 'modernism" of Nehru’”

role in fashioning the

approach to a There were un orthodox elements in Nehru's pragmatic approach which created doubt or disdain in some sectors of socialist opinion. More over, the "modernist" aspect in Nehru--industrial and central ist in emphasis--dominated but did not eclipse a residual affection for the Gandhian Sarvodaya approach. Nehru's

socialist society

beyond doubt,

was,

The new Congress

Congress

crucial.

position required other political leaders

positions both towards the Congress and This process of re-evaluation brought into sharper focus the contrast between what could be called the to reassess their towards socialism.

own

Nehru-centered and the Gandhi-centered complex. One Socialist suggested that there is a conflict has between the "first generation "Nehru' and second generation "Gandhi' "t A first generation "Gandhi" remains, of course, in the field and is not without influence upon the Nehru complex itself. Indeed, there is no suggestion that the two complexes are mutually exclusive. When, early in 1956, Maganbhai Desai addressed him self to the final editorial (25 February) which was to termi nate publication of Hari ian, the distinctive weekly which Gandhi had founded, he wrote that the "Jawahar epoch" (the epoch) begun Nehru had in India. It did not mean, he said, that the Gandhian Age had ended. But a new epoch has set in with Jawaharlal Nehru its leader and the Congress Nehru's instrument. The character of such an emerging epoch would necessarily be conditioned by the several approaches to a socialist society. The extent to which these approaches prove complementary and the manner in which they come into conflict will, in any event, form much of the substance of Indian

poli

tics.

* Asoka Mehta, "The P.S. P. January 26, p. 38.

t Madhav Gokhale, 1953, August 30, p. 20.

"As

I

and

the Congress," Janata,

Look Back,"

Part

III,

1955,

Janata,

NE H R U

THE

CONGRESS

1

S

tº

SO C

I A L IS TI C

P A

T TE

RN

"

PARTY S COMMITMENT

In the annals of the Congress Party, the 60th annual ses sion is assured a place as one of the 1andmarks in the develop ment of Congress policy. The distinction of this "diamond jubilee" session, held in January 1955 at Avadi, on the out skirts of Madras, 1 ies in the fact that this was the session at which the Party's avowed objective--"a cooperative common expanded wealth."--was to include "planning...with a view to the establishment of a Socialistic pattern of society, where the principal means of production are under social ownership or control, production is progressively speeded up and there is equitable distribution of the national wealth.” This development was by no means unexpected. During the previous two months Nehru had many times declared that his view was, of India's future development as he told the National Development Council, "definitely and absolutely a socialistic

picture of society."f

These

statements by Nehru had given

rise

to intense speculation as to the precise nature of the "social istic pattern" he had in mind. Uneasiness within the business 1egislation community knowledge that was intensified by the to amend Constitutional provisions affecting the payment of com pensation for government acquisition of private property would soon come before Parliament, and that the Company Law Act was being redrafted. Of particular concern were the future of the managing agency system and the question of possible confisca tory nationalization of property. When the Associated Chambers of Commerce held their annual meeting at Calcutta (13 December 1954), Finance Minister C. D. Deshmukh, who addressed the meet ing, was pressed for answers to these questions but refused to predictions make any as to the final form which legislation confining himself largely to general assurances might take, that the Government would not misuse the powers Parliament was being asked to grant. * Congress President U. N. Dhebar described the Avadi session as the "third big step" in Congress history, on a par

with the pledge to work for complete 1929)

and

the pledge

independence

"to consolidate freedom"

Party took over from Britain (15 August 1947). January 18, 7:5.

a

( taken in the Congress

Hindu, 1955,

This statement, made on 9 November 1954, was the first series of such statements. See Jawaharlal Nehru, Towards Socialistic Order (New Delhi: Indian National Congress, 1955),

in p.

when

+

a

2-

improved The atmosphere 1ater somewhat as a result of Parliamentary debate (20-21 December 1954) on economic policy.” In the course of the debate, Nehru made it clear that although he envisaged constant progress towards a classless and caste 1ess society of "socialistic pattern," nevertheless increased production was to be the major aim of the Government's economic policy. There was to be no nationalization at the cost of interference with production. There would be a private sector

with

some freedom

of action,

for

as Nehru

said,

"absurd to ask them to function" only to deny which to function. On the other hand, Nehru

it

would be

"room" in also declared that was "essential that the public sector should grow as rapidly as possible" and "quite necessary that the private sec tor should function under certain broad strategic controls."f them

it

At the close of the two-day debate, Parliament endorsed the Government's economic policy in the following resolution: This House having considered the economic situation in India and the policy of the Government in relation thereto is of the opinion that (1) the policy of Govern ment is in harmony with the policy statement of the 6th April 1948; $ (2) the objective of our economic policy should be a socialistic pattern of society; and (3) wards this end the tempo of economic activity in general and industrial development in particular should be step ped up to the maximum possible extent. **

to

It

was only to be expected, after Parliament's action, Party Congress that when the met in annual session at Avadi, in January 1955, adoption of a "socialistic pattern" would important place on the agenda. very have an A resolution similar to that adopted by the Parliamentt t was, in fact, the first resolution to be brought before the Subjects Committee.

* Foreign policy debates had become an established tradi tion within the Indian Parliament, but this was widely commen

ted upon as the scheduled.

f

No. 29,

first

time

an economic

policy

debate

Government of India, Lok Sabha Debates, (December 21, 1954), esp. columns 3602,

had been

Part

II,

3607

and

Vol. IX, 3608.

industrial policy" was introduced in the Assembly by the 1ate Dr. S. P. Mooker jee, who was then Minis ter for Industry and Supply. For a description of this policy together with the Government's 1956 policy see Appendix IV. § A "new

6

April

1948

**Government of No. 29, (December 21,

ft For

India, Lok Sabha Debates, Part 1954), column 3692.

text, see Appendix

I.

II,

Vol. IX,

7

The resolution was moved by the erudite Education Minister, Maulana Abul Kalam Azad. In presenting the resolution, Maulana Azad repeatedly stressed that the new terminology did not mean that a new policy was being adopted. "If any member thinks that we have raised a new slogan," declared Maulana Azad, "he should disabuse his mind of it at once.” It was merely a statement of what the Congress had been declaring from time to time ever since the Karachi meeting (1931) , and the only reason for bringing forward was "to remind Congressmen and also the country of the direction in which they were moving and the purpose for which they should strive."f

re

it

The major portion of Maulana Azad's "forceful" thirty minute speech was devoted to emphasizing that the demand for a "socialistic" pattern of society did not bind them in any way whatsoever to any dogma or doctrine.'" He drew atten tion to the "deliberate use of the phrase socialistic pattern of society," saying this was: the most important thing as we want to have a socialis tic pattern and not socialism. The word socialism is every child to-day but we on the lips of practically did not use this word at all. We have done this be cause there is very great depth in the ideal underlying phrase socialistic pattern. ** the use of the other

"

The

socialist State exercised control

over every form of

activity, he said, and socialists pursued dogma with "childish fanaticism." Nationalization was only a means to an end, but socialists worshipped the means, forgetting the ends. The Congress aim was to achieve "equitable distribution of human

wealth" through peaceful means. Here again he made a distinc tion between "national wealth" and "personal wealth.” The thing was to ensure that the national wealth was equi main tably distributed. In answer to any question as to why in January 1955 it had become necessary to use a new phrase instead of "cooperative commonwealth" to define the Congress ideal, Maulana Azad declared: This need arose because, as you all know, we have 1aunched upon planning in our country. The first Five Year Plan has nearly run its course and only about a year and a half of its life remain. We are now con centrating on the second Five-Year Plan. In all this planning we have to make clear both to the planners and

* Quoted on 19 January

by virtually 1955.

f

As reported

§

Ibid. , 5:2.

**Ibid.

all

by Hindu,

press reports of the meeting

January 20, 5:1.

the people whither

we

are going.

It

only

clarifies

the

position in this regard and does no more. The resolu tion only says that in all our endeavours we should aim at the establishment of a socialistic pattern of society. *

At

amendments were offered to the resolution. were made on the one hand to change "socialistic" to "Sarvodaya," or "society as envisaged by Gandhi," and on the other to go further towards socialism. Maulana Azad, in reply ing to the debate, rejected Sarvodaya, saying was "a beauti ful word" coined by Mahatma Gandhi to express the hope for the dawn of a new era, but did not imply any economic prog ram. On the other hand, socialism implied class war, and the Congress was determined to avoid violence. f In the end the

Several

tempts

it

it

resolution

was

carried "amidst cheers."

A second resolution was adopted at Avadi dealing with broad questions of economic policy, in which the "national aim" was described as a "Welfare State and Socialist economy." This resolution, brought before the Subjects Committee by Nehru him self, called for the elimination of unemployment within ten years, and stated that the Second Five-Year Plan should be based on the "physical needs of the people." The goods to these needs were to be produced mainly within India. The State was to play a vital role in production, the public sec tor was to become progressively more important, particularly in establishing basic industries, but a private sector would continue to be important, particularly with respect to cooper

ful

fill

atives and small-scale industries. §

At the Avadi session, Nehru concentrated his attention upon these two resolutions. This focus upon economic policy noteworthy provided sharp contrast was the more in that

it

* Hindu, 1955, January 20, 5:1.

f In this connection, Maulana Azad recalled that Dr. Radha krishnan, when Ambassador in Moscow, had explained to Stalin that the Congress Party agreed that land must belong to the tiller but hoped to achieve this result through peaceful methods. Stalin had laughed at this and said, "Is that so? We 11, go ahead. But I don't think that can be done through "Today," added Maulana Azad, "we have peaceful means.'" shown that we can do it. This is clear from the abolition of zamindari which we have achieved through peaceful means." Deccan Herald, 1955, January 20, 1:1 and Hindu, 1955, January 20, 7:4. § See Appendix II for the text of this resolution, which said by Statesman's commentator "VEDETTE" (9 January 1955) to have been drafted by W. K. Krishna Menon.

was

to his role in previous years when he had been primarily occupied with foreign policy. Nehru commended these resolu tions to the party as "a new pledge to new tasks" at the same time that he stressed the continuity of Congress policy to which, as he put it, the attention of the people was being drawn "in a more forceful manner."* The Congress appeared to accept both these aspects. But to many observers outside the Party, Congress leaders appeared to be presenting the country with a paradox. That the occasion was historic, posed a contradiction but that nothing had really changed, which 1ed to critical discussion and varied interpretation.

fulfill

THE REACTION OF THE INDIAN PRESS

Indian commentators

was nothing

were

in general agreement

surprising in the adoption

that there

by the Avadi Congress session of a resolution advocating that the State be remodeled along "socialistic" lines. Some such action, they agreed, had speeches since his return from been foreshadowed in Nehru's China (early in November 1954), as well as in the resolution adopted by the Indian Parliament in December. There was sharp disagreement, however, as to the meaning to be read into the term "socialistic pattern of society," the reasons why this term had been chosen, and whether Congress policy had changed along with the change in terminology. Considerable doubt was expressed that many of those who voted for the resolution had concept of a "socialistic pattern." Free Press any clear reported from Avadi that he had not Lournal's correspondent been able to find out from Congress leaders whether or not they intended to go "one step ahead of a welfare state," and that "almost every member" had "but a vague idea of what is

meant." (19 January)

"None would dare define" what this socialistic pattern of Society would look like, reported Deccan Herald's "GALLERYMAN" and "even Pandit Nehru, who inspired the term, was brilliantly vague." (30 January) To Pioneer (21 January) the term was only a "great p1ay of words" making "a distinction without a difference," as neither Nehru nor Maulana Azad had been able to show how a socialistic pattern could be evolved by "means

other than

socialism.”

"eminently sensible and declared Tribune. (18 January) The new phrase was intended "only to remind the people and the Planning Commission what the Congress is seek ing to establish," Tribune said 1ater, adding: Nehru's economic but by no

realistic"

program was

means

socialistic,

* Hindu, 1955, January 23, 5:2.

10 One wonders

why

the Congress has substituted

the phrase

"socialistic pattern of society' for 'cooperative common wealth' when it intends to make no change in its ideolo gy. (22 January)

India somewhat acidly suggested as an answer to question" of terminology that "cooperative common wealth" might be "too clumsy and unwieldy a stick to beat the Opposition with;" that "Socialism" sounded "more radical," but "socialistic pattern" was well adapted to the Prime Minister's "all too flexible" approach, with its "distaste for details and a penchant for soaring well above the earth, if not in the clouds." (19 January) Times of

the "awkward

Those who wanted the resolution to "say what it meant" had not "grasped the beauty" of the resolution, commented the correspondent of (Communist) New Age sardonically. It was "meant to be 'a catchy slogan' and not meant to 'say what is meant.'" (30 January)

Organiser's "K " declared that the Congress, "the 1east Socialistic of parties, "had adopted the new slogan "in the hope to sound more socialistic than Socialists-- and even Communists." (14 February)

If the Congress leaders were really aiming at socialism, they should said Thought (15 January), "avoid contemptuous expressions" like "socialistic pattern of society," which could "hardly be a reflection of mature thinking." On the other hand, "among those, who year

declare for socialism,"

,

National Herald's editor, speaking as after year wanted the Congress to was

"particularly gratified"

by the

Avadi declaration. It might not "mean socialism," he continued, "but to talk socialism is better than not to talk it. It will help people to think socialism." (18 January)

Hindu's report, calling attention to the resolution which stated that the national aim was "a Welfare State and a Social ist economy," pointed out that both "socialistic" and "Social ist" had been used in Congress resolutions dealing with social and economic policy. (19 January) As Indian commentators turned from examination of the new Congress terminology to speculation on the possible change in policy which it connoted, the great majority of them found it worth mentioning that Nehru's speeches on the desirability of socializing India dated from his return from Peking. Conflict

ing

inferences

were drawn from

this,

however.

Implicit

in

the assumption that Nehru, impressed by China's progress, intended to take at least a leaf or two from the Chinese book for application to India's problems. On the other hand, the Communists-- and some socialists-- raised the much

of the

comment

was

11

cry of

"fraud." Their assumption--shared to some extent by several independent commentators--was that Nehru's statements were 1argely for political effect, and that the major practical consequence was likely to be that the Indian electorate, once persuaded that a11 parties had much the same objectives, would prefer the Congress as the party most able "to deliver the goods.”

Among the many voices speculating on these developments were two--"INSAF" of Hindustan Times and Hindu's correspondent-whose observations, taken in conjunction with Nehru's press conferences and other statements immediately after his return from Peking, * seem perhaps among the more illuminating.

if

"INSAF," writing at the close of the Parliamentary session December 1954, stated with assurance that Nehru was "a convinced Democrat." "If anything," this commentator con tinued, "his recent visit to China has confirmed him in his belief that the China way is not his way. He wants democratic India to run a friendly race with Communist China and earn the latter's respect... He needs foreign aid for economic develop ment but will not receive it indiscreetly.” Nehru and other Congress leaders, "INSAF" went on, were "determined to find a way to enthuse the masses" for the task of "building a new India." Their "first success" in arousing enthusiasm had been in committing the Indian Parliament "to a unanimous declaration that the goal of economic effort is the creation of a Socialis tic society"--to be evolved "according to the genius of our people"--but not "of the Marxist pattern." (Hindustan Times,

in late

1954, December 28)

Hindu's "Special Correspondent," covering the Avadi Con gress session, wrote of the genesis of the "socialistic pattern": Informed circles would consider it less than fair to suggest that the idea caught on after Mr. Nehru's visit to China.

But they would

however

not

seriously

demur

to the observation that the China trip may have served to stir up his ever-impatient soul with a view to reassessing whether the purpose and direction pursued by the Congress corresponded with the declared objectives. Mr. Nehru has never been known to indulge in imitation

is something which would hasten the ushering the era of a Welfare State. The freedom with which Mr. Nehru used the expressions ‘social and

what he wants

process of

alternately, as ised economy' and 'socialist society' though they were interchangeable, is proof that he is not guided by any doctrinaire approach... Even before

* See Monograph No. 1 in this series: Indian Views of Sino Indian Relations (February 1956), "Prime Minister Nehru's Visit to Peking," pp. 99-119.

12 he went

progress

to China, Mr. Nehru was

January 18)

was

being impeded by

deeply

disturbed that

courts... (Hindu,

1955,

The contradictory aspects of the Avadi session received attention from most commentators. Times of India commented

caustically:

late the word "socialism" has been bandied about so that the public cannot but wonder at the reason that has impelled Government spokesmen to profess and proclaim their new faith. But there is the rub, for they insist that it is not new.... All that has happened is that what was implicit is being made explicit. It Of

much

is a startling development but nothing to get alarmed about.... 'Socialism' can mean entirely different, even contradictory, things to different persons. (19 January)

surveyed, The Indian commentators in dealing with the seeming paradox presented by Congress leaders, tended to take one of three major positions. A minority endorsed the view that the Congress Party had always stood for a "socialistic" ideal which was now merely being made explicit. Another minority took the position that an important new step had been taken which might well 1ead to the realization of social ism, although they differed widely as to the features which this "socialism" would exhibit. In the opinion of the major ity of commentators, however, the Congress Party had never likely to become, an effective instrument been, nor was

it

for achieving "socialism"--however defined--in India.

those who viewed the Avadi resolution as only an statement of a creed 10ng held by the Congress were Mahratta, Statesman, such diverse papers as Hitavada, and Indian Express. The objective adopted at Avadi was "in con formity with recent practices," declared Hitavada. "Congress has been socialistic in its policies 10ng before it declared its objective." (26 January). "This ideal was implicit in the Congress creed and the Indian Constitution," agreed Mahratta. (28 January) Statesman pointed out that at the Lahore Congress in 1929 Nehru as president had "pointed to the world-wide fusion of the 'philosophy of Socialism," and declared that India would have to 'go that way too," though in a manner Congress policy "at any time in adapted to her own genius." the last quarter of a century," continued Statesman, could have been described as the establishment of a Socialist Pattern Among

explicit

dif

of society":

it

of the directive principles Nor is there much novelty in the details: principal means of production under social ownership or control, progressive speeding up of production, equitable distribution of national wealth... (21 January) and is also a description embodied in the Constitution.

13

hailing Avadi as a "landmark," pattern Socialist of society" with a "co operative commonwealth," but went on to equate them both with "Sarvodaya, ' a dawn for a11, when the last shall be the first." (18 January)

Indian Express, only equated "a not

although

The minority which took the position that a new and at 1east potentially significant step toward socialism had been taken at Avadi were very much at odds as to the variety of "socialism" they foresaw and the means by which it would be Congress was "taking a big step forward," achieved. said Amrita Bazar Patrika, "taking upon itself... a tremendous task requiring unstinted co-operation of all sections of the people... In this commentator's opinion, the "clear enunciation of the aims and ideals of the Congress" made at Avadi "should dispel a11 sense of frustration among the people and create a new wave of enthusiasm in the county." (19 January) Amrita Bazar Patrika conceded that the name given to the Congress ideal "does not matter much," but nevertheless expressed dissatisfac tion with the reasons advanced by Maulana Azad for avoiding use of the word "socialism." (21 January) To this commentator,

"increasing production" and "distributing it could "help the Government in increas ing production," and "we can build up a Socialist society on a co-operative basis, utilising the services of all classes, and without liquidating any of them." (24 January) "socialism"

equally."

meant

Industrialists

National Herald's position was that Congress action at Avadi had at last made debate on socialist philosophy inevitable, and that, as a consequence, tension would increase within the Party which would eventually make it "an effective Congress party of socialism" by ridding it of "those who now sullenly accept the vagueness of a 'socialistic pattern of society.'" National Herald objected to Maulana Azad's too "cautious" explanation of the Congress objective. Nehru's "clear state ment of the essentials of the new approach," declared National Herald, indicated that "the private sector must accept social ism as a sentence of death with the execution of the sentence postponed." (20 January) published one Russy K. Karanjia, the editor of Blitz, (signed) editorial exhorting the 1eft parties to unite to man euver Nehru into 1eading their revolution. On most issues and at most times, Blitz is only to be distinguished from the Com munist press by certain idiosyncrasies of style, but on this Karanjia took issue with the "Leftist forces"k for occasion having missed the golden opportunity afforded by Avadi to build * It should be noted that by February 12 Blitz was once again in harmony with the Communist line, "exposing" Nehru's

socialism.

14

reservoir of popular power" by organizing a "Land Army" into a "militant A11-Support-To-Nehru-For-Socialism campaign." Karanjia expressed belief that Nehru's socialism was "absolute 1y genuine," but pointed out that supposing it were not, denun ciation of Nehru would only make the Leftists unpopular, where as such a "mass movement" would make it "impossible for him to back out." "Congress apathy aided by Socialist vanity and Com munist non-cooperation," said Karanjia, would leave "the radical and 1ef tist forces. . . in the backwaters" unless they reconsidered Karanjia then directed his and rode "the tide at its fulness." own "SOS to the progressive forces in general and the people as a whole," declaring: Let us by all means oppose Government in the parliaments, the press and platforms of the nation, but at the same time let us form an A11-Support-To-Nehru Front backed units, so far only as our national by shock-workers' plans and projects are concerned. up "a

result of this "united mass struggle," as Karanjia saw it, would be that • Jawahar 1a1. Nehru, happy with the harvest, , of the Ålladin's [sic] Lamp of Socialism that he rubbed, maybe accidentally or maybe purposefully, will have no alter native but to own and command the mighty, million muscled Genii of the Indian people that rose to his resuce when the country and history needed him most. (22 January) The

greater number of commentators surveyed, whatever opinion of the new policy statement, were agreed in seeing little reason to believe that the Congress Party would make India over into a socialist State. "No party," pro private enter nounced Tribune, "which seeks to encourage prise by a11 1egitimate means, which seeks to give every far mer enough 1and to cultivate and which assigns important role to small-scale producer in the development of the country's 1egitimately say that it is working toward the economy can establishment of Socialism." (10 January)

their

The

The "mere adoption of a socialist ideal" would not make the Congress a socialist party, wrote Times of India's ca.1 Correspondent. "The party--the leadership as much as the rank and file--must be clear about the specific objectives, both short-term and 10ng-term and the methods by which they are to be achieved." Those Congressmen who "honestly differ" from the new policy "should be allowed to leave the party," he commented, adding: The Congress has suffered from a great deal of ideologi

Politi

cal

confusion

on

account of almost desperate attempts

to keep every original Congressman and some new ones, including ex-Princes and zamindars--within the fold, howsoever divergent his views. (20 January)

15

writing in Swatan tra, likened Nehru's W. W. Prasad, "efforts to bring about a change in the Congress organisation" to "trying to cure the patient of fever by tampering with the

Congress was determined thermometer." The character of the by the people inside he asserted, and continued: They are dominated by the capitalists and the b1ack marketeers and the feudalist landlords. If Ramnath Goenka” is to be the man who makes the arrangements for the Congress session in Avadi, where is the place in the Congress for people who are not equally rich? (29 January)

it,

brought up the opposition Swatantra's Santha Rungachary the Sarvodaya wing to "socialism," and expressed the opinion that U. N. Dhebar had been chosen Congress president "because there was some trepidation about how the older members of the Congress wedded to Sarvoday a were going to look upon the new ideal of Socialism." Dhebar, she reported, "was the only man in the whole session who mentioned Truth and non-violence, constructive work, Khadi, the charkha." She envisaged Dhebar as "the mouth-piece and champion of the cottage industries in the private sector," while Nehru carried the responsibility for "the array of reforms 1 ined up for the public sector," and concluded that "Mr. Nehru's Utopia was going to be a cross profit-motive between Capitalism in the sense and Socialism in the Communist sense." (29 January)

of

was of the opinion that the new presi slogan "imposed from above" dent and the new had been in the effort to change "the character and methods of the Congress," and make "mass contact" outside the present rank and file. According to this commentator's analysis there was no sign of a "general swing toward socialism" in the country--"except in a few special problem States"--nor had the Congress Party ranks "shown symptoms of such a shift in doctrine." But "a Leftist slogan has always had a certain amount of political appeal” and by openly avowing Leftist orientation, socialist criticism of the Congress could be "disarmed." (14 January)

Eastern Economist

Times of India found "the perfect unanimity" at Avadi a for doubting that there could have been "a revolutionary shift in Congress policy." Whatever the fears outside the Party, continued Times of India, "even the diehard Congress cause

misgivings about 'the socialistic pattern.' meant was an acknowledgement of the increasingly

man had no

that

it

A11

im

* Ramnath Goenka is the proprietor of the Express chain newspapers. His Madras paper (Indian Express) had only a previously days few asserted that after Avadi would no 1onger be easy... to traduce the Congress as partial to the

of *

Haves. " "

"it

16

portant role of the (25 January)

public

sector

in

national

economy."

Organiser's "SATIRICUS" asserted that "socialism" was but "artifice of deception" to replace the outworn "secular ism." "Now what is Congress Socialism?" he asked, and answered: ... what Nehru talks in the year of Grace 1955 was talked

a new

out by European Socialists a good thirty years ago. But that does not matter with an idol-worshipping people. As some one said the other day Nehrolatry is the newest form of worship with us idolaters. What the P.M. says, goes. That it not only goes but went a full generation back is of 1 it tie importance. (31 January)

Yet another approach was taken by Deccan Herald's editor, Pothan Joseph, who devoted several editorials and an article exploration of the relationship to between the King and suggesting that attitudes condi the people in Hindu polity, tioned by these traditions were in conflict with the funda mentals of parliamentary government. * Analyzing the "social istic pattern" from this traditional viewpoint, he found it indeed "revolutionary in conception,” (21 January) but--"if enforceable"--1eading to a "managerial form of society," a form which he once characterized as: Leviathan brooding over dispossessed equals in a mood of impartial paternalism and severe discipline against those who err or differ. (9 January) THE BEHAWIOR

OF THE STOCK

MARKET

In discussing whether the Indian Government was indeed towards socialism, several commentators turned to the . evidence provided by the behavior of the stock exchange. Curi ously enough, there was disagreement as to what that behavior quite apart from the conclusions drawn from it. had been, thought it "unfortunate" "INSAF" that the share market had "reacted adversely" to Nehru's declaration that "socialist Society is the absolute and definite aim of planning." In his opinion, "operators omitted to take note of that part of the Prime Minister's statement in which he made it clear that he was not using the words in any dogmatic sense." Ever since Nehru's return from China, continued "INSAF'', he had been em phasizing that "every nation acts according to the way it has been conditioned, and so must India." India's ideal was Sar vodaya, "more comprehensive than Socialism of Marx because it is based on spiritual values," declared "INSAF," and the right to private property was "not in question": moving

* See especially

the

issue of

26

January 1955, p. 9.

17

is aimed at is the power of regulation to see that private enterprise does not injure the interests of the community as a whole and that it is regulated in the best interest of the community. How and where the balance is to be struck between the community and the individual is, of course, the delicate task which confronts planners, lawmakers and administrators.

What

(Hindustan Times,

1954,

November 16)

Capital took note (in three separate articles) that market sentiment was "in the grip of pessimism” and that no section of the market had escaped deterioration. Nehru's address to the National Development Council was considered mainly responsible for the stock market's nervousness. After his "categorical statement that private enterprise should have only a secondary role in planning," rumors about drastic changes in the Company agency system "gained Law Act with respect to the managing support." In addition, doubts about the coming recommendations of the Taxation Enquiry Commission, and the fact that the Stock Regulation Bill was expected to come up at the next Exchange session of Parliament also had played a part. Capital's weekly feature, "A DITCHER'S DLARY,” chided Nehru severely for his "un guarded disclosure of the Socialist state to come," calling it an "aberration into the realm of political sooth-saying" and suggesting that Nehru's "impossible burden of responsibility" had become "too great for one man." (18 November; see pp. 663, 665, and 671. ) On 6 December 1954,

tenance

Hindustan Times,

"intact" of the "basic concept of

arguing a mixed

for

the

main

economy,"

called attention to the behavior of the stock market "in the past few days" as evidence of the urgent need for reassurances from "the highest level" as to the exact nature of the Govern "Rightly or wrongly," said this com ment's industrial policy. mentator, "public opinion has now come to believe that there is to

be an

ideological twist to the left."

contrary view of the attitude of Indian indus of the behavior of the stock market was presented by a "Special Correspondent" in New Delhi and published in Pioneer (24 January) and, in a slightly curtailed version, in According to this analysis, it was Deccan Herald (25 January). the stability of the stock market which called for explanation. "Stock exchanges which are regarded as seismographs to indicate disturbances in the investment market" had "shown no nervous ness" over the Avadi resolution or the events which had led up to it during the preceding few months. This observer found the answer in the nature of "the Indian Socialistic pattern," which 1eft the entrepreneur with "power without responsibility or stake." "Every State undertaking has a board of directors domi of nated by a dozen or so of 1eaders in the private sector industry," he declared. His conclusion: A completely

trialists

and

18

EXPLANATORY NOTES These

securities

graphs show the fluctuations in the variable-yield index in various industries from September 1954

through December 1955, with September 1954 as 100. This month variable-yield marked a peak in the value of the combined industries index following a 10ng rise which began in Septem ber 1953, and was interrupted only by a decline of eight tenths of a point, in March 1954. found the value of each index 1939), the weight possessed by industry-group in the combined total, and the high and for each index during the preceding year.

as of each 1ow

In the Table below can be September

1954

Wt.

(base:

Index (Sep 1954)

Highs” and Lowsº

during Preceding Year High

Banks

Jute Mills Tea

7 11

129.

12 9

240.8

4

Cotton Mills Coal

Cement, Lime, etc. 6 10 Mining and Oil Paper Mills 7 Eng. & Metal Works 17 Others 11 Combined

TOO

--

Gov't Securities

*A11 highs

1

163.8 381.0 203.

1

118.0 183.8 987.3

270. 1 309. O 262.0 9.7. 9

138.8° 158.

3

215.

3

379.7 238.4° 115.4 179.2

1009. 8

266.4 309.5 239-4f 98.3

Low

126.7° 132.1 204.1 192.6 160. 3

89.3 97.1 547.3

160. 9

216.3 177.1 96.18

reached in August 1954 unless otherwise noted. in September 1953 unless otherwise noted.

PA11 lows reached °December

1953.

“August 1954. *Reached

in June 1954 as well as in August.

*July

1954.

*July

1954.

Source: "'Capital' Stocks and Shares Index," as published in Capital (Calcutta), Vol. CXXXVI, February 16, 1956, p. 232.

STOCK AND SHARE INDICES, SEPTEMBER, 1954-DECEMBER, 1955* 1954

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