From Pragati magazine.

Waiting for the freemarket Mahatma

It's time for a new freedom movement

NITIN PAI

OVER A CENTURY ago, the idea of political freedom in
India was the matter of debate in the parlours of the educated
elite. It was more a matter of intellectual exertion
among the few, rather than a popular movement among the
many. It was not as if colonial Indians lacked the aspiration
for political freedom; it was just that the concept was too
abstract for the masses. It was the genius of Mahatma Gandhi
that converted elitist objectives and popular aspirations
into a simple mantra that everyone could understand. He
also armed every single person with a simple, inexpensive
weapon--non-violent civil disobedience--that could be
used to further the objective of attaining freedom.
A century later, India is in a similar situation--this time
it is economic freedom that it seeks. Though it attained political
independence in 1947, India to this date, and even
after the reforms of the 1990s, is generally unfree from an
economic point of view. Vestiges of the socialistic mindset,
well-exploited by populist politicians forms a powerful political
constituency, not least because the alternative--freemarket
capitalism--has not been packaged into a form that
is acceptable to the several hundred millions who actually
desire it.
Ajay Shah, a Mumbai based economist recently
wrote: "In India, a broad majority appears to aspire to
become a country based on open minds
and an open economy. But the evolution of India in these
directions is far from assured. Too many people who grew
up in the 1960s and 1970s have socialist instincts on economic
policy matters. The present ruling coalition involves
giving veto power on all legislation to Left parties who got
5% of the votes in 2004 elections, who aspire for a future for
India based on a closed economy and a foreign policy which
is sensitive to Chinese and Russian interests. The Shiv Sena
burns books.

How can India continue to chip away at making progress
towards becoming a modern, liberal society characterised
by ever-expanding freedoms for individuals in terms of
both society and economy?"
India has never lacked entrepreneurial talent. While
many businesses in independent India came to rely on the
socialist crutches that were put in place since Nehru, the
most enduring ones were successful in spite of the government's
best attempts to stifle them. Like India's largest IT
companies, some succeeded due to the government's inability
to regulate them. And then there are others that used
their skills to game the socialist system to stay successful.
Socialism did succeed in making Indian firms less competitive
internationally. But it failed to completely smother
India's entrepreneurial base. And it's not just the big corporates--
there are hundreds of thousands of small businesses
who fit this pattern: though stifled by inflexible labour laws
and industrial licensing they retained their highly entrepreneurial
instincts.
While there are a number of advocates of free market
capitalism in India, none have been able to translate their
ideology into a form that can be sold to India's myriad political
constituencies that are cut along ugly lines based on
geography, religion, community and language. Economic
freedom has the potential to cut across these retrogressive
divisions only if it is espoused in a form that is readily understood
by the masses. It also has the potential to directly
change the destinies of one fifth of the world's population
forever. And when that happens, the remaining four-fifths
of the world will not remain untouched.
It's not hard to find people who have benefited from the
whiff of economic freedom unleashed by P V Narasimha
Rao's government fifteen years ago. But, as Niccolo Machiavelli
explained five centuries ago, they remain diffident.
And it ought to be remembered that there is nothing
more difficult to take in hand, more perilous to conduct, or
more uncertain in its success, then to take the lead in the
introduction of a new order of things.
Because the (reformer) has for enemies all those who
have done well under the old conditions, and lukewarm
defenders in those who may do well under the new. This
coolness arises partly from fear of the opponents, who have
the laws on their side, and partly from the incredulity of
men, who do not readily believe in new things until they
have had a long experience of them.
Thus it happens that whenever those who are hostile
have the opportunity to attack they do it like partisans,
whilst the others defend lukewarmly... [Niccolo Machiavelli,
The Prince, Chapter VI]
The need for a new voice, however, has never been more
urgent. If Gandhi could crystallise the idea of political freedom
and simplify its practice, then surely, the same could be
done for the idea of economic freedom. But even as we
await the free market Mahatma, it is time for those who believe
in rights and freedoms to organise themselves and add
their voices, and their votes, towards shaping a new national
discourse.
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A single death is a tragedy, a million deaths is a statistic.
- Joseph Stalin

To send men to the firing squad, judicial proof is unnecessary.
These procedures are an archaic bourgeois detail. This is a
revolution! And a revolutionary must become a cold killing
machine motivated by pure hate. We must create the pedagogy
of the paredon (The Wall)!
- Che Guevara
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