Vishwa Rathna Dr.
Babasaheb Ambedkar is one such great thinker, leader and intellectual
of its time in India who has not only changed the life of millions of
untouchables but shaped India as a biggest democratic nation by writing
its constitution. What is well known about Dr. Ambedkar is his fights
against Caste sytem in India, But what is not known is how Dr. Babasaheb
Ambedkar had also Impacted the Indian economy.
Here are some of Dr. Ambedkars thoughts that had great impact on economy.
Agriculture and land reforms.
Dr.
Babasaheb Ambedkar had made in-depth study of Indian Agriculture, wrote
research articles, organised Seminars and Conferences in order to Solve
the problems of agriculture and farmers, also led farmer’s movement.
His thoughts on agriculture are found in his article “Small Holdings in
the country and their remidies”(1917)and also in “Status and
minorities”(1947).
He
mentioned that holdings of lands by few people is an acute problem of
Country’s agriculture which has various disadvantages, like difficulties
in
cultivation and utilization and resources, increasing cost, low
productivity, inadequate income and low standard of living. According to
Dr. Ambedkar, Productivity of agriculture is related to not only with
the size of holdings of land but also with other factors such as
capital, labour and other inputs. Therefore, if Capital, or labour etc
are not available in adequate quantity and quality, then even a large
size land can become unproductive. On the other hand, the small sized
land become productive if these resources are available in plenty. With
this thought, the ‘Land Ceiling Act’ is passed after Independence.
He
also mentioned about the slavery and exploitation of Labour bounded
under caste system is extremely bad for economic development and fought
for its abolition.
His
other suggestion for solving agriculture problem are collective
farming, economic holding of land or equal distribution of land, Large
scale Industrialization, Provision of money, water, seeds and
fertilizers by the government, cultivation of waste land by allotting
waste land to landless labour, minimum wages to labours, control and
regulation of private lenders of loan to farmers.
Country’s Currency Problems.
Dr.
Babasaheb Ambedkar’s thoughts has a great impact on current
currency system. Under British rule when the Govt. was struggling with
falling value of Country’s Rupee, Dr. Babasaheb Ambedkar In 1923 wrote
‘The problem of Rupee, its origin and solution. He focused his studies
and research on the condition of Country’s currency during British rule.
He wrote research thesis on it. In his thesis, he argued that the gold
exchange standard does not have stability. The developing countries like
our country can not afford gold exchange standards, and besides this,
it also
increases the risk of inflation and price rise. He proved with
statistics data and reasons how the Country’s Rupee has lost its value and
hence the purchasing power of Rupee is falling. He suggested that govt.
deficit should be regulated and money should have a circular flow. He
also suggested more attention should be given on price stability than
exchange rate stability.
This book eventually led to the establishment of Reserve Bank of the Country.
Views of Taxation policy.
Dr.
Ambedkar expressed his views on taxation in the manifesto of ‘Swatantra
Majdur Party’ in 1936. He opposed Land Revenue and its system and their
taxes as the burden of these taxes are significant on the poor sections
of the society. He suggested some taxes as follows.
Tax should be imposed on payer’s capacity and not on income.
Tax should be less on poor and more on rich.
Tax exemption should be given up to a certain limit.
There should be equality between different section in tax imposition.
Tax should not lead to lowering the standard of life of the people.
Land Revenue tax should be more flexible and should not levy on agricultural land.
He suggested that Indian tax system at that time was based on discrimination and inequality.
Nationalisation of Industries.
Dr.
Babasaheb Ambedkar thought that the fast development of Country is
impossible without Industrialization. According to him creating large
scale employment produces essential goods for mass consumption. It
utilizes raw materials, reduces foreign dependence and increasing
security to labour, ultimately leads to the overall economic development
of the country. The private sector industries can not make big
industries for want of large scale investments. So, the government
should come forward to start large scale industries.The smaller
industries should be kept in the private sector. The insurance and
transport companies should be nationalized. Rights to strike should be
given to labourers. After the independence, the industrial policy of the
Indian government is in keeping with Dr. Ambedkar’s expectations.
Strategy for economic development.
Dr.
Ambedkar believed that the strategy for Country’s Economic development
should be based on Eradication of property elimination of inequities and
ending the exploitation of masses. He emphasized exploitation has many
dimensions In fact in the Country, social or religious exploitation is no
less Oppressive than economic exploitation and it should be eliminated.
Democratic state Socialism.
Dr. Babasaheb Ambedkar has presented a Democratic State Socialism to the constitution committee. The main points of it are
1) All basic industries should be owned and run by the state.
2) Insurance and agriculture should be nationalized and managed by the state.
3) Maintenance of Productive resources by state.
4) Just Distribution of Common produce.
5) Provision for compensation of land or industry acquisition in the form of bonds.
6) The distribution of village and among the families in a village for collective farming
7) No discrimination as landlord, tenants and agriculture labours.
8) All agriculture input like capital, seeds fertilizers etc would be provided to collective farming by the government.
9) Distribution of agriculture income only after payment of land revenue tax.
10) Punishment according to rules who do not follow.
Dr.
Ambedkar wanted this state socialism to be inculded in the constitution
so that no legilature could change or reject it. But it could not come
into existance as the constitution committee rejected it. It suggest
that the conditions of labour, farmers and poor people would have
different if this has not been rejected.
Free Enterprises Economy.
Surprising
enough Dr. Ambedkar had already suggested free economy, globalization,
liberalization and privatization as early as in 1923, Recently Country’s
government has adopted this policy. In this repect Dr. Ambedkar was a
century a head. He had stressed that the value (Price)of a rupee must be
kept stable if the policy of free economy is to be successful.
Population Control - Family Planning
Dr.
Babasaheb Ambedkar said that the control of the country’s economy is
impossible if the population is not controlled. Hence he forcefully
argued for population control and family planning in India. Later on in
keeping with his views the govenment a has adopted family
planning as a national policy.
Economic Upliftment of Country’s Women.
Dr.
Babasaheb Ambedkars contribution to economic development and progress
of women is significant. According to him, participation of women in the
economic development is impossible without developing their social
status and equality. But due to bad economic conditions of women in
Country, Country’s economic progress is hampered. So, it is important
to
improve the economic condition of women and give them equal rights and
freedom of occupation.
Concept of Human Capital.
Dr.
Ambedkar argued that concept of human capital in Country is useless if
the poorer and down trodden untouchable SC/STs are not recognized by
other classes as human being with equal social prestige and religious
basis. It is therefore impossible to use this human capital in the
economic development of the Country.
Opposition to Hindu Economy.
Dr.
Ambedkar denounced the Indian economy as Hindu dominated economy. He
came out with hard hitting critique of this Hindu economy. He showed
logical flaws in it. Caste System is not merely the division of labour
but a division of labourers also. It is not based on natural aptitudes
or skills. It is a major obstacle to economic development. It reduces
mobility leading to inefficient production. Untouchability is worse than
slavery. It is a system of exploitation.
Hence
It is evident that Dr. Babasaheb Ambedkar’s concepts of family
planning, uplittment of women and human capital and many others are
important contribution to the development of the Country’s economy. as the
existing laws and reforms land ceiling Act, minimum wages Act,
Distribution of surplus land etc are not effective it is essential to
reconsider them in the context of Dr. Ambedkar’s perspective. Also as
current scenario of Indian economy, inflation, farmer conditions,
India’s large young labour force not being fully utilised for the
economic development , we need to reconsider the thoughts of Dr.
Babasaheb Ambedkar and again frame our economic policies towards better
economical growth of the Country.
Please Share these tremendous and unparalleled works of Dr. Ambedkar which still remain uncredited and unrecognized.