SOCIALISM IN INDIA

Why in the News?

Eminent Socialist leader and former Chief Minister of Bihar Karpoori Thakur has been conferred with Bharat Ratna, posthumously.

About Socialism 

• Socialism deals with principles which envisage the establishment of a society where all individuals enjoy equality in different walks of life – economic, political, social, etc.
• Two types of socialism: Revolutionary (Marxian) socialism and Evolutionary socialism.
  • Revolutionary: Holds that socialism can be brought about only by violent revolution by abolishing private property and establishing the dictatorship of the proletariat.
  • Evolutionary: Believes social forces wishing to bring socialism should help organs of the state to form policies which are socialistic and should get them implemented.
• Prominent Indian socialist leaders include Acharya Narendra Dev, Jaya Prakash Narayan, and Ram Manohar Lohia, among others.
  • Acharya Narendra Dev's visit to address a peasant rally at Waini motivated Karpoori Thakur to join the freedom movement and Socialist politics.

Contributions of Socialist politics in India

• Pre – independence 
  • Socialist ideals like anti-colonialism, equality, social justice, etc., provided an ideological framework for freedom struggle.
  • Socialist leaders and organizations played a prominent role in grassroots mobilization and organizing workers, peasants, and marginalized communities in the nationalist movement.
• Post – independence 
  • Constitutional: Ideals of equality and social justice enshrined in the Constitution are inspired by socialist principles.
  • Strengthening democracy: Socialist leaders, parties, and movements led to the emergence of regional political parties which played a crucial role in strengthening the Indian democratic system.
    • Socialist parties and movements consistently critiqued dominant socio-economic structures holding the state accountable and pushing for reforms.
  • Economic policy: Socialist policies emphasized on role of the state in the development of key sectors like steel, energy, heavy industries, etc.
    • This led to the development of the Mahalanobis Plan under the Second Five-Year Plan (1956 - 61) and creation of Public Sector Enterprises (PSEs).
  • Social welfare: Socialist principles influenced establishment of different welfare programmes for weaker and marginalized sections such as Public Distribution System, reservation policies, etc.
    • Different socialist movements like the Bhoodan movement by Acharya Vinobha Bhave not just directly benefitted the underprivileged but also affected the country’s policies and schemes such as land reforms.

Contemporary Relevance of Socialism in India

• Economic inequality: Addressing stark economic equality needs emphasis on socialist principles such as wealth redistribution, guaranteed access to basic necessities, etc.
  • e.g., Mandatory Corporate Social Responsibility and Progressive taxation policy are, in essence, a reflection of socialist ideals in the economic sphere.
• Issues with Capitalism: Market-driven model of growth is associated with different sets of issues such as exploitation of labour, environmental degradation, etc.
  • In such a context, socialism can prove to be an alternative to promote collective well-being over individual profits.
• Social justice imperative: Persistent social issues such as caste discrimination, disparity in access to basic amenities like health and education, etc., call for the inclusion of socialist principles in state policies.

Contemporary Challenges for Socialism 

• LPG reforms: Economic liberalization under LPG (Liberalization, Privatization, and Globalization) reforms in the early 1990s resulted in a shift socialist policy of the past towards a more market-oriented approach. 
  • Integration of the Indian economy with the Global economy resulted in greater emphasis on the need to participate in global trade and attract foreign investment.

• Adverse economic precedents: Stagnant growth rate (around 4% - termed by some scholars as ‘Hindu Rate of Growth’) during the pre-LPG reforms era.
  • Economic and business activities during that era were characterized by License-Quota-Permit Raj which resulted in rent-seeking activities, and inefficient performance of PSEs, among others.
• Political: Fragmented political ecosystem with the emergence of stronger regional parties and deviation from ideologies for electoral gains.
• Socio-cultural: Growing middle-class aspirations for material prosperity make individual aspirations as incompatible with the collective well-being advocated by socialism.

Way Forward

• Balancing socialism with market economy: Strike an effective balance between state intervention and market mechanisms to achieve inclusive and sustainable development.
  • Promote a socially responsive market economy by ensuring effective implementation of concepts like Corporate Social Responsibility, ESG, etc., in corporate governance.
• Strengthen public sector efficiency: By enhancing transparency, improving accountability, and reducing the bureaucratic red tape to curb corruption and enhance the effectiveness of service delivery to citizens.
• Encourage democratic socialism: Through participatory decision-making and civic engagement in policymaking to reflect diverse needs and aspirations in policies of the State.
  • Harness technology, such as digital platforms, for efficient governance, citizen engagement, and empowering marginalized communities.