by Javed Jamil
adversely affecting the growth.
As will be seen below, sooner or later, the government will be in a position of great strength, and will be able to abolish on all, or some selected items, the sales tax and excise duties. This will further reduce the prices, bringing immense relief to the masses, for example, wheat, rice, cooking oil, tooth brushes, tooth pastes, soaps, stationery, cloths, etc, may be distributed free of cost among the poor patients admitted in the hospitals, poor children going to schools, the destitutes, the widows, the orphans, the handicapped, the families of those who have lost their bread earners in accidents, riots, wars etc. Items like coolers, pressure-cookers, crockery, fans, washing machines, TVs, bicycles, etc. may be sold at concessional rates to the I11 and IV class employees, the labour class (including the rickshaw pullers, coolies and workers in factories), primary school teachers, small farmers, etc. Items like cars, refrigerators, colour TVs, scooters, cameras, quality cloths, may be given as incentives and awards to those who have done commendable service to the nation in different fields. (Obviously, no such person as possess taxable assets will be entitled to the benefits, mentioned above except as awards).
The banking system must also undergo modifications. Banks must always be nationalised. Private Banks should not be allowed. With the great increase in the deposits, expected on account of the revolutionary fiscal policy suggested above, banks must not depend on the loans. They must themselves, on behalf of the depositors, enter the market by investing in the stock exchange, or on other profitable ventures. This will prove to be a big push for the industry, and will also multiply the incomes of all banks. And banks must share all their profits on equitable terms with the depositors. The involvement of banks will also be a security against misappropriation of public money by the directors of companies it would be better for the government not to have exclusive control over companies, for it tends to lead to stagnation. Whenever the loans are given out by banks the interest rates must be charged on the real money and not on its face value. The price index must also be kept in consideration in giving interests/profits to the depositors. Interest free loans must be provided to the poor for building houses, establishing small business, treatment, etc. and also for human necessities like marriage and delivery.
Industrialisation has played a significant role in making available to the common people the goods and comfort that were previously only in the reach of the elite. What, however, has been a miserable failure is that, out of the extraordinary wealth mobilised through it, only a meagre portion has reached the lower strata of society. This has further widened the gap between the privileged and the underprivileged. Still more condemnable is that this mobilisation of wealth has been made possible through the injudicious use of public money, and, in spite of that, the fruits have been usurped by the very few. On the one hand, the economic fundamentalists have continued to relentlessly argue in favour of capitalism, and, on the other hand, they have been denying the common people the worth of their money. When they use their own money, they seek to make huge profits out of it, but when they use the public money, channelized through banks, financial agencies and stock market, they are willing to pay the people only a negligible portion of the profit they have amassed through that money. Whatever is paid to them is channelized back by way of inflation. This exploitation has to be countered, if economic justice is to be brought to the denizens of the earth. To achieve this grand objective, two major changes in the industrial set-up will have to be brought about as early as possible.
First, there is no reason why, in the limited companies, that operates with the collective efforts of a large number of people including the investors, the directors, the managers, the technical staff and the labourers, should there be the classes of the employers and the employees. Every person contributing in one capacity or the other to the functioning of a company must be a 'partner' in it. If the investors contribute through their money, the workers' contribution is still more significant. Why should then there be huge differences in the incomes of the investors and the workers? There should be two kinds of partners,
(1) Investing Partners, whose partnership should be based on the virtue of their investment. And
(2) Working Partners, whose partnership is on the virtue of their work.
Just as the claims of the investors on the company cease as soon as they withdraw their shares, the claims of the Working Partners would end as soon as they stop working for it. When, in the operation of a company, the roles of investment and work are equally important, and it is not possible for anyone to continue operations without the other the net profit of the company must also be divided equally between the Investing and the Working Partners. The distribution of fifty per cent of the net profit among the Working Partners must be based on the nature of their work, and upon the amount of training and education required for a specific job. But, the lowest paid Working Partner must get not less than one third of the highest paid Working Partner. There must, however, be guarantee money for all the employees. Such arrangements would guarantee that, while the investors would get due returns for their investment, the workers would also receive their worth. This would encourage the directors to involve more workers; the employment opportunities would rise and the hardships of workers will decrease. Their duty hours must also be reduced by at least one hour in which arrangements may be made for their moral education and healthy entertainment. This would also give them more time to devote to their families.
Secondly, the minor share holders, who together often own more than half of the total shares in the company, must play a more active role in the affairs of the company so that the directors do not exploit or cheat them depriving them of their money. This can be achieved by the creation of a Minor Shareholders’ Association in every company. The office bearers of the Association can be elected at regular intervals. The representatives of the association must be among the directors of the company, their number depending upon the shares they represent. This would enable them to ensure that the interests of minor shareholders are not compromised, they get due share in the profits, are continuously in the know of the state of affairs and in case the company is suffering losses, these are not entirely thrust upon them (minor share holders). This would also help them in receiving dividends at regular intervals, and the directors would find it difficult to withhold them in the name of residual value.
The above-mentioned steps would have far-reaching consequences on the distribution of incomes and assets that would be far more equitable; this would go a long way in alleviating poverty from society. In order to further improve the distribution, the rural-urban divide has to be bridged. The economic fundamentalists have made conscious efforts to equate “economic growth” mainly with the industrial growth. It is, neither indicative of the general economic scene nor does it duly focus on agricultural growth. The truth is that “economic growth” has been a well-orchestrated movement primarily targeting agriculture; for the consumer industry regards the expansion of agriculture as counterproductive for its own growth. The overwhelming majority of the world population still lives in villages. This is particularly true for a country like India where over 80 per cent of the people live in rural areas, and their main source of income is their land. Despite the fact that they provide food to the whole population for survival and many other items of comfort, they continue to pass their lives in pathetic conditions. The main reason for this may be summed up as follows:
First, what they produce is usually sold at very low prices (compared with the products of industries). Secondly, they are not able to increase the demands of certain products like ghee, milk, butter, honey, etc. as they do not have the means to advertise. They cannot compete with the industries which sell, thanks to high profile advertising, even harmful, non-nutritious and tasteless items at very high prices. Thirdly, being mostly uneducated, they have not been able to organise themselves at different levels. They have a very little role to play in th
e politics and administration of the country. Even the political and non-political organisations speaking on behalf of the farmers tend only to make demands that are mostly of cosmetic nature.
It must be realised that the villagers are engaged in extremely important economic activities that are in fact, more valuable than those of the industrialists. Not only do they deserve credit for supplying the essentials for the very survival of mankind, but also for deriving them directly from their natural resources. In contradistinction to the industries which only modify, restructure or refine what has already been produced by Nature, agriculture, husbandry, poultry and fishing convert natural energies, and materials into essential items. Their contribution is the real addition to the persistence of mankind. It is, therefore, necessary that the villagers be given generous assistance in using their capabilities to the full, and they receive due returns for their labour. If it does not enhance the status of the villagers, the economic development has no meaning at all. Ways have to be found out to arrest and