Thinking of Economy of Peace with reference to the thought of Mahatma Gandhi, JC Kumarappa

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Mahatma Gandhi and JC Kumarappa

Randhir K Gautam

— Randhir Kumar Gautam —

Professor JC Kumarappa made a significant contribution to nurturing Gandhian economics, emphasizing the economy of peace and the philosophy of non-violence. His conception of Economics is crucial in reviving the spirit of Swadeshi and promoting the prosperity of rural economies. For inclusive development in Indian society, the rural economy must be understood and prioritized.

The Economy of Permanence

I think It is perhaps more accurate to describe this vision as the “Economy of Permanence” rather than sustainable development. The “Economy of Permanence” embodies human dignity, social harmony and respect for nature while empowering marginalized communities and fostering development for all.

From the Rio de Janeiro Convention to the Paris Agreement, sustainability has become a matter of life and death. Modern scientific advancements have granted humans mastery over nature, but industrialized prosperity has led to climate crises and the destruction of life. The rise of consumerism, overconsumption, exploitation of resources, and pollution presents serious concerns. It has been observed that wealthy countries contribute significantly to global warming, while third-world countries bear the brunt of its consequences.

Carbon emissions are rising, forests are vanishing, and population growth continues unchecked. Consumerism has become the hallmark of development, leading to a destructive future. I recall the statement made by Marcuse Strong at the Rio de Janeiro Summit: “We have been the most successful species ever, but our very success is leading us into a dangerous future.”

Agenda 21 has failed, and countless development programs have been unable to balance development and environmental concerns. However, there is hope in the ideas of Gandhi and Kumarappa.

Kumarappa’s economics was rooted in two principles: the non-exploitation of people and the sustainability of natural resources. Both Gandhi and Kumarappa provided a powerful critique of the materialistic, exploitative, and unsustainable economies of the West and proposed an alternative.

What Kumarappa call “Economy of Permanence”? Kumarappa wrote his book “Economy of Permanence” during his two-year imprisonment for participating in the Quit India Movement. Mahatma Gandhi wrote the preface to the book, conferring upon Kumarappa the title of “Doctor of Village Industries.” The book is an invitation to understand how sustainability and peace are interconnected.

Kinds of Economies:

Kumarappa identified four types of economies based on their attitudes towards nature’s resources:

1. Parasitic Economy: The beneficiary destroys the host or resource, e.g., a killer robber.

2. Predatory Economy: The beneficiary takes without offering any advantage to the host, e.g., a pickpocket.

3. Economy of Enterprise: Beneficiaries take what they need while contributing something in return, e.g., a honeybee.

4. Economy of Service: Exemplified by a mother caring for her child, this economy involves selfless contribution without seeking personal benefit, embodying the “Economy of Permanence.”

Defining an Economic Order

J C Kumarappa defined an economic order, as a system which discharges four essential functions.

1. It should create wealth as efficiently as possible.

2. It should distribute wealth widely and evenly.

3. It should supply the needs of the people before comforts and luxuries are catered for.

4. It should be conducive to peace and harmony of society.

Kumarappa also suggested conditions for an Economy of Peace:

1. A long-term outlook on life.

2. Social control, decentralization, and equitable distribution of power.

3. Regulation through rules of conduct and social sanctions.

4. Safeguarding the weak and helpless.

5. Encouraging individual growth with tolerance.

6. Activities guided by societal ideals and movements.

7. Equitable distribution of benefits according to need.

8. Prioritizing altruistic satisfaction of needs.

Benefits of Decentralization

Kumarappa emphasized decentralization to harmonize nature and nurture. As Gandhi said, “God made the village and man made the city.” Kumarappa advocated for a village-centric economy, highlighting its advantages:

1. Decentralization ensures even wealth distribution and fosters tolerance.

2. The production process inherently distributes wealth by paying for labour.
Better distribution of purchasing power leads to effective demand and production is directed into a supply of needs as the supply here will follow demand.

3. Decentralized production encourages individual initiative and development. Each producer becomes an entrepreneur. With the responsibility of the business on his shoulders, business-like methods and habits will be formed. When every individual develops himself, the average intelligence of the nation will increase.

4. Proximity to markets reduces the need for forced salesmanship. There is not much difficulty in selling nor do we need to create an artificial market for forced management or salesmanship.

5. Decentralization minimizes large-scale disturbances to peace.

Renewable Energy

Kumarappa was among the first to raise concerns about the degradation of non-renewable resources. He advocated renewable energy sources like solar, wind, biogas, and micro-hydropower. He compared fossil fuels to a “Bucket Economy, ( Reservoir economy) ” where resources deplete with use, and renewable energy ( wind energy, bio energy and solar energy) to a “River Economy,” which replenishes itself.

He was not against science, management, or technology but emphasized their appropriate use in harmony with self, nature, and culture. Kumarappa argued, “Science is not the creation of man. Nature works in well-defined grooves according to immutable laws. When man understands these laws and reduces them to a system of knowledge, we call it science.”

Gandhi also spoke of limits to growth, famously stating, “Our civilization, our culture, our Swaraj depend not upon multiplying our wants, self-indulgence, but upon restricting our wants, self-denial.” Both Gandhi and Kumarappa proposed simplicity as an alternative to the high-consumption lifestyle. For them, “Small is Beautiful” was a guiding principle to save humanity from both ecological and cultural destruction.

They advocated decentralization, local production, and planning aligned with the mantra: “Think globally, act locally.” Freedom, they argued, is finite, and economic choices must align with need rather than greed. Property must serve

societal needs, ownership should be decentralized, and power must rest with the people.

Kumarappa warned, “We require men with long-range views to lead governments. Short-sighted leaders pose a danger to society and promote wars through poor policies.”

Gandhian Economics: Some Reflections on Gandhian Economics

1. No exploitation, no violence.

2. Decentralized commodity production ensures that the producer receives the product of their labour.

3. Mass production or production by the masses.

4. No overproduction.

5. Harmony between production and consumption.

6. Consumption is said to be the mother of production.

7. W = E + M (Wealth = Employment + Means or Capital)

“You cannot distribute wealth after producing it. You won’t succeed in getting a man to agree to it. But you can produce wealth so as to secure equitable distribution before producing it.”
– Rajagopalachari

8. Promotion of village industries.

9. Use of appropriate technology.

10. No to a war economy.

“I want growth, I do want freedom and self-determination, but I want all these for the good of the whole of mankind. I want them for the wellbeing of the soul of man. I doubt if the Steel Age, and now the Atomic Age, is an advance over the Flint Age. I am indifferent to it. It is the evolution of nonviolence and nonexploitation to which the intellect and all the faculties of science have to be devoted.”
– Mahatma Gandhi

11. Against capitalism (Why corruption, consumerism, and inflation?)

12. Economics with social justice:

(1) Total decentralization of economic and political power.

(2) Development of democracy to ensure fairness and social and economic equality.

(3) Voluntary acceptance of simplicity, self-reliance, and self-sufficiency.

13. Love for Swadeshi and respect of the Global.

Ends and Means

The ends and means of all Gandhian Constructive programmes may be classified as follows :-

(1) ECONOMIC:

The End: Removal of Economic Disparity and establishment of Economic Equality.

The Means: Proper utilisation of the means of production, and production of goods through the decentralised method.

(2) SOCIAL:

The End: To vest the ownership of the means of production in the hands of those who actually produce.

The Means: Trusteeship and Decentralisation.

(3) POLITICAL:

The End: Peaceful transfer of the means of production.

The Means: Change of character and outlook through persuasion.

Means = ends.

Conclusion

A paradigm shift from global competition to international ethics is essential. Reorganizing priorities to meet the basic needs of the masses using local resources and technologies is key to achieving peace, dignity, and justice. As Gandhi observed, “The world has enough for every man’s need, but not for every man’s greed.” Exploitation—whether political, social, or economic—inevitably leads to violence. For a sustainable future, it is imperative to embrace the philosophies of Gandhi and Kumarappa.

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