Silver Jubilee of “Pricing, Planning & Politics: A Study of Economic Distortions in India”

May 29 2009:

It is a quarter century precisely today since my monograph Pricing, Planning and Politics: A Study of Economic Distortions in India was first published in London by the Institute of Economic Affairs.

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Its text is now available (in slightly rough form) at this site here.

Now in May 1984, Indira Gandhi ruled in Delhi, and the ghost of Brezhnev was still fresh in Moscow.   The era of Margaret Thatcher in Britain and Ronald Reagan in America was at its height.   Pricing, Planning & Politics emerged from my 1976-1982 doctoral thesis at Cambridge though it came to be written in Blacksburg and Ithaca in 1982-1983.   It was the first critique after BR Shenoy of India’s Sovietesque economics since Jawaharlal Nehru’s time.

The Times, London’s most eminent paper at the time, wrote its lead editorial comment about it on the day it was published, May 29 1984.

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It used to take several days for the library at Virginia Tech in Blacksburg to receive its copy of The Times of London and other British newspapers.    I had not been told of the date of publication and did not know of what had happened in London on May 29 until perhaps June 2 — when a friend, Vasant Dave of a children’s charity, who was on campus, phoned me and congratulated me for being featured in The Times which he had just read in the University Library.  “You mean they’ve reviewed it?”  I asked him, “No, it’s the lead editorial.” “What?” I exclaimed.  There was worse.  Vasant was very soft-spoken and said “Yes, it’s titled ‘India’s Bad Example'” — which I misheard on the phone as “India’s Mad Example”  😀

Drat! I thought (or words to that effect), they must have lambasted me, as I rushed down to the Library to take a look.

The Times had said

“When Mr. Dennis Healey in the Commons recently stated that Hongkong, with one per cent of the population of India has twice India’s trade, he was making an important point about Hongkong but an equally important point about India.   If Hongkong with one per cent of its population and less than 0.03 per cert of India’s land area (without even water as a natural resource) can so outpace India, there must be something terribly wrong with the way Indian governments have managed their affairs, and there is.   A paper by an Indian economist published today (Pricing, Planning and Politics: A Study of Economic Distortions in India by Subroto Roy, IEA £1.80) shows how Asia’s largest democracy is gradually being stifled by the imposition of economic policies whose woeful effect and rhetorical unreality find their echo all over the Third World.   As with many of Britain’s former imperial possessions, the rot set in long before independence.  But as with most of the other former dependencies, the instrument of economic regulation and bureaucratic control set up by the British has been used decisively and expansively to consolidate a statist regime which inhibits free enterprise, minimizes economic success and consolidates the power of government in all spheres of the economy.  We hear little of this side of things when India rattles the borrowing bowl or denigrates her creditors for want of further munificence.  How could Indian officials explain their poor performance relative to Hongkong?  Dr Roy has the answers for them.   He lists the causes as a large and heavily subsidized public sector, labyrinthine control over private enterprise, forcibly depressed agricultural prices, massive import substitution, government monopoly of foreign exchange transactions, artificially overvalued currency and the extensive politicization of the labour market, not to mention the corruption which is an inevitable side effect of an economy which depends on the arbitrament of bureaucrats.  The first Indian government under Nehru took its cue from Nehru’s admiration of the Soviet economy, which led him to believe that the only policy for India was socialism in which there would be “no private property except in a restricted sense and the replacement of the private profit system by a higher ideal of cooperative service.”  Consequently, the Indian government has now either a full monopoly or is one of a few oligipolists in banking, insurance, railways, airlines, cement, steel, chemicals, fertilizers, ship-building, breweries, telephones and wrist-watches.   No businessman can expand his operation while there is any surplus capacity anywhere in that sector.  He needs government approval to modernize, alter his price-structure, or change his labour shift.  It is not surprising that a recent study of those developing countries which account for most manufactured exports from the Third World shows that India’s share fell from 65 percent in 1953 to 10 per cent in 1973; nor, with the numerous restrictions on inter-state movement of grains, that India has over the years suffered more from an inability to cope with famine than during the Raj when famine drill was centrally organized and skillfully executed without restriction. Nehru’s attraction for the Soviet model has been inherited by his daughter, Mrs. Gandhi.  Her policies have clearly positioned India more towards the Soviet Union than the West.  The consequences of this, as Dr Roy states, is that a bias can be seen in “the antipathy and pessimism towards market institutions found among the urban public, and sympathy and optimism to be found for collectivist or statist ones.”  All that India has to show for it is the delivery of thousands of tanks in exchange for bartered goods, and the erection of steel mills and other heavy industry which help to perpetuate the unfortunate obsession with industrial performance at the expense of agricultural growth and the relief of rural poverty.”…..

I felt this may have been intended to be laudatory but it was also inaccurate and had to be corrected.  I replied dated June 4 which The Times published in their edition of  June 16 1984:

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I was 29 when Pricing, Planning and Politics was published, I am 54 now. I do not agree with everything I said in it and find the tone a little puffed up as young men tend to be; it was also five years before my main “theoretical” work Philosophy of Economics would be published. My experience of life in the years since has also made me far less sanguine both about human nature and about America than I was then. But I am glad to find I am not embarrassed by what I said then, indeed I am pleased I said what I did in favour of classical liberalism and against statism and totalitarianism well before it became popular to do so after the Berlin Wall fell. (In India as elsewhere, former communist apparatchiks and fellow-travellers became pseudo-liberals overnight.)

The editorial itself may have been due to a conversation between Peter Bauer and William Rees-Mogg, so I later heard. The work sold 700 copies in its first month, a record for the publisher. The wife of one prominent Indian bureaucrat told me in Delhi in December 1988 it had affected her husband’s thinking drastically. A senior public finance economist told me he had been deputed at the Finance Ministry when the editorial appeared, and the Indian High Commission in London had urgently sent a copy of the editorial to the Ministry where it caused a stir. An IMF official told me years later that he saw the editorial on board a flight to India from the USA on the same day, and stopped in London to make a trip to the LSE’s bookshop to purchase a copy. Professor Jagdish Bhagwati of Columbia University had been a critic of aspects of Indian policy; he received a copy  in draft just before it was published and was kind enough to write I had “done an excellent job of setting out the problems afflicting our economic policies, unfortunately government-made problems!”

Siddhartha Shankar Ray told me when  we first met that he had been in London when the editorial appeared and had seen it there; it affected his decision to introduce me to Rajiv Gandhi as warmly as he came to do a half dozen years later.

Within a few months though, by the Fall of 1984, I was under attack by the “gang of inert game theorists”  who had come to  Blacksburg following the departure of James Buchanan.  By mid 1985 I had moved to Provo, Utah, really rather wishing, as I recall,  to have left my India-work behind me.  But by late 1986, I was at the University of Hawaii, Manoa, where the perestroika-for-India and Pakistan projects that I and WE James led, had come to be sponsored by the University and the East West Center.

The unpublished results of the India-project reached Rajiv Gandhi by my hand on September 18 1990 as has been told elsewhere.  A week later, on September 25 1990,  Rajiv appointed a small group that included myself, to advise him.  It was that encounter with Rajiv Gandhi that sparked the origins of the 1991 economic reform.  Yet in 2007 one member of the group, declaring himself close to Sonia Gandhi, brazenly lied in public saying it was Manmohan Singh and not I who had been part of the group — a group of which I had been in fact the first member!  Manmohan Singh himself has never claimed to have been present and in fact was not even in India at the time it was formed.

I have explained elsewhere here why I believe this specific  lie  came to be told by this specific liar who shared membership with me in the group that Rajiv had formed:  because I had also pleaded with  many and especially within this group that Rajiv had seemed, to my layman’s eyes, very vulnerable to assassination, and none of them had lifted a finger to  do anything about it!  Such is how duplicity, envy and greed for power make people mendacious and venal in politics!

As for Pricing, Planning and Politics, Dr Manmohan Singh received a personal copy from my father whom he had long known through the Kaul brothers, Brahma and Madan, both of whom were dear friends of my father since the War and Independence.   From a letter Dr Singh wrote to my father,  he would have received his copy in late 1986 when he was heading the Planning Commission in his penultimate appointment before retirement from the bureaucracy.

Readers of Pricing, Planning and Politics today, 25 years after it was published, may judge for themselves what if any  part of it may be still relevant to the new government that Dr Singh is now prime minister of.   The work was mostly one of applied microeconomics or the theory of value; in recent years I have written much also of applied macroeconomics or the theory of money as it relates to India.  My great professor at Cambridge, Frank Hahn, was kind enough to say in 1985 that he thought my “critique of Development Economics was powerful not only on methodological but also on economic theory grounds”; that to me has been a special source of delight.

Subroto Roy

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Alfred Lyall on Christians, Muslims, India, China, Etc, 1908

“THE STATE IN ITS RELATION TO EASTERN AND WESTERN RELIGIONS”

By Sir Alfred Comyn Lyall (1835-1911)

Delivered as President of the Congress for the History of Religions, September 1908.—Fortnightly Review, November 1908.

“In considering the subject of my address, I have been confronted by this difficulty—that in the sections which regulate the order of our proceedings, we have a list of papers that range over all the principal religions, ancient and modern, that have existed and still exist in the world. They are to be treated and discussed by experts whose scholarship, particular studies, and close research entitle them all to address you authoritatively. I have no such special qualifications; and in any case it would be most presumptuous in me to trespass upon their ground. All that I can venture to do, therefore, in the remarks which I propose to address to you to-day, is to attempt a brief general survey of the history of religions from a standpoint which may possibly not fall within the scope of these separate papers.

The four great religions now prevailing in the world, which are historical in the sense that they have been long known to history, I take to be—Christianity, Islam, Buddhism, and Hinduism. Having regard to their origin and derivation, to their history and character, I may be permitted, for my present purpose only, to class the two former as the Religions of the West, and the two latter as the Religions of the East. These are the faiths which still maintain a mighty influence over the minds of mankind. And my object is to compare the political relations, the attitude, maintained toward them, from time to time, by the States and rulers of the people over which these religions have established their spiritual dominion.

The religion of the Jews is not included, though its influence has been incalculable, because it has been caught up, so to speak, into Christianity and Islam, and cannot therefore be counted among those which have made a partition of the religious world. For this reason, perhaps, it has retained to this day its ancient denomination, derived from the tribe or country of its origin; whereas the others are named from a Faith or a Founder. The word Nazarene, denoting the birthplace of Christianity, which is said to be still used in that region, was, as we know, very speedily superseded by its wider title, as the Creed broke out of local limits and was proclaimed universal. There has evidently been a foretime, though it is prehistorical, when, so far as we know, mankind was universally polytheistic; when innumerable rites and worships prevailed without restraint, springing up and contending with each other like the trees in a primeval forest, reflecting a primitive and precarious condition of human society.

I take polytheism to have been, in this earliest stage, the wild growth of superstitious imagination, varied indefinitely by the pressure of circumstance, by accident, by popular caprice, or by the good or evil fortunes of the community. In this stage it can now be seen among barbarous tribes—as, for instance, in Central Africa. And some traces of it still survive, under different pretexts and disguises, in the lowest strata of civilised nations, where it may be said to represent the natural reluctance of the vagrant human fancy to be satisfied with higher forms and purer conceptions that are always imperfectly assimilated by the multitude. Among primitive societies the spheres of human and divine affairs were intermixed and identical; they could not be disentangled. But with the growth of political institutions came gradual separation, or at any rate the subordination of religion to the practical necessities of orderly government and public morals.

That polytheism can exist and flourish in the midst of a highly intellectual and civilised society, we know from the history of Greece and Rome. But in ancient Greece its direct influence upon political affairs seems to have been slight; though it touched at some points upon morality. The function of the State, according to Greek ideas, was to legislate for all the departments of human life and to uphold the moral standard. The law prohibited sacrilege and profanity; it punished open impiety that might bring down divine wrath upon the people at large. The philosophers taught rational ethics; they regarded the popular superstitions with indulgent contempt; but they inculcated the duty of honouring the gods, and the observance of public ceremonial. Beyond these limits the practice of local and customary worship was, I think, free and unrestrained; though I need hardly add that toleration, as understood by the States of antiquity, was a very different thing from the modern principle of religious neutrality. Under the Roman government the connection between the State and religion was much closer, as the dominion of Rome expanded and its power became centralised. The Roman State maintained a strict control and superintendence over the official rituals and worships, which were regulated as a department of the administration, to bind the people together by established rites and worships, in order to cement political and social unity. It is true that the usages of the tribes and principalities that were conquered and annexed were left undisturbed; for the Roman policy, like that of the English in India, was to avoid giving offence to religion; and undoubtedly this policy, in both instances, materially facilitated the rapid building up of a wide dominion. Nevertheless, there was a tendency to draw in the worship toward a common centre. The deities of the conquered provinces were respected and conciliated; the Roman generals even appealed to them for protection and favour, yet they became absorbed and assimilated under Roman names; they were often identified with the gods of the Roman pantheon, and were frequently superseded by the victorious divinities of the new rulers—the strange deities, in fact, were Romanised as well as the foreign tribes and cities. After this manner the Roman empire combined the tolerance of great religious diversity with the supremacy of a centralised government. Political amalgamation brought about a fusion of divine attributes; and latterly the emperor was adored as the symbol of manifest power, ruler and pontiff; he was the visible image of supreme authority. This régime was easily accepted by the simple unsophisticated paganism of Europe. The Romans, with all their statecraft, had as yet no experience of a high religious temperature, of enthusiastic devotion and divine mysteries. But as their conquest and commerce spread eastward, the invasion of Asia let in upon Europe a flood of Oriental divinities, and thus Rome came into contact with much stronger and deeper spiritual forces. The European polytheism might be utilised and administered, the Asiatic deities could not be domesticated and subjected to regulation; the Oriental orgies and strange rites broke in upon the organised State worship; the new ideas and practices came backed by a profound and fervid spiritualism. Nevertheless the Roman policy of bringing religion under authoritative control was more or less successful even in the Asiatic provinces of the empire; the privileges of the temples were restricted; the priesthoods were placed under the general superintendence of the proconsular officials; and Roman divinities gradually found their way into the Asiatic pantheon. But we all know that the religion of the Roman empire was falling into multitudinous confusion when Christianity arose—an austere exclusive faith, with its army of saints, ascetics, and unflinching martyrs, proclaiming worship to be due to one God only, and sternly refusing to acknowledge the divinity of the emperor. Against such a faith an incoherent disorderly polytheism could make no better stand than tribal levies against a disciplined army. The new religion struck directly at the sacrifices that symbolised imperial unity; the passive resistance of Christians was necessarily treated as rebellion, the State made implacable war upon them. Yet the spiritual and moral forces won the victory, and Christianity established itself throughout the empire. Universal religion, following upon universal civil dominion, completed the levelling of local and national distinctions. The Churches rapidly grew into authority superior to the State within their own jurisdiction; they called in the temporal government to enforce theological decisions and to put down heresies; they founded a powerful hierarchy. The earlier Roman constitution had made religion an instrument of administration. When one religion became universal, the churches enlisted the civil ruler into the service of orthodoxy; they converted the State into an instrument for enforcing religion. The pagan empire had issued edicts against Christianity and had suppressed Christian assemblies as tainted with disaffection; the Christian emperors enacted laws against the rites and worships of paganism, and closed temples. It was by the supreme authority of Constantine that, for the first time in the religious history of the world, uniformity of belief was defined by a creed, and sanctioned by the ruler’s assent.

Then came, in Western Europe, the time when the empire at Rome was rent asunder by the inrush of barbarians; but upon its ruins was erected the great Catholic Church of the Papacy, which preserved in the ecclesiastical domain the autocratic imperial tradition. The primacy of the Roman Church, according to Harnack, is essentially the transference to her of Rome’s central position in the religions of the heathen world; the Church united the western races, disunited politically, under the common denomination of Christianity. Yet Christianity had not long established itself throughout all the lands, in Europe and Asia, which had once been under the Roman sovereignty, when the violent irruptions of Islam upset not only the temporal but also the spiritual dominion throughout Western Asia, and along the southern shores of the Mediterranean. The Eastern empire at Constantinople had been weakened by bitter theological dissensions and heresies among the Christians; the votaries of the new, simple, unswerving faith of Mohammed were ardent and unanimous.

In Egypt and Syria the Mohammedans were speedily victorious; the Latin Church and even the Latin language were swept out of North Africa. In Persia the Sassanian dynasty was overthrown, and although there was no immediate and total conversion of the people, Mohammedanism gradually superseded the ancient Zoroastrian cultus as the religion of the Persian State. It was not long before the armies of Islam had triumphed from the Atlantic coast to the Jaxartes river in Central Asia; and conversion followed, speedily or slowly, as the direct result of conquest. Moreover, the Mohammedans invaded Europe. In the south-west they subdued almost all Spain; and in the south-east they destroyed, some centuries later, the Greek empire, though not the Greek Church, and consolidated a mighty rulership at Constantinople. With this prolonged conflict between Islam and Christianity along the borderlands of Europe and Asia began the era of those religious wars that have darkened the history of the Western nations, and have perpetuated the inveterate antipathy between Asiatic and European races, which the spread of Christianity into both continents had softened and might have healed. In the end Christianity has fixed itself permanently in Europe, while Islam is strongly established throughout half Asia. But the sharp collision between the two faiths, the clash of armies bearing the cross and the crescent, generated fierce fanaticism on both sides. The Crusades kindled a fiery militant and missionary spirit previously unknown to religions, whereby religious propagation became the mainspring and declared object of conquest and colonisation.

Finally, in the sixteenth and seventeenth centuries the great secession from the Roman Church divided the nations of Western Europe into hostile camps, and throughout the long wars of that period political jealousies and ambitions were inflamed by religious animosities. In Eastern Europe the Greek Church fell under almost complete subordination to the State. The history of Europe and Western Asia records, therefore, a close connection and community of interests between the States and the orthodox faiths; a combination which has had a very potent influence, during many centuries, upon the course of civil affairs, upon the fortunes, or misfortunes, of nations.

Up to the sixteenth century, at least, it was universally held, by Christianity and by Islam, that the State was bound to enforce orthodoxy; conversion and the suppression or expulsion of heretics were public duties. Unity of creed was thought necessary for national unity—a government could not undertake to maintain authority, or preserve the allegiance of its subjects, in a realm divided and distracted by sectarian controversies. On these principles Christianity and Islam were consolidated, in union with the States or in close alliance with them; and the geographical boundaries of these two faiths, and of their internal divisions respectively, have not materially changed up to the present day.

Let me now turn to the history of religion in those countries of further Asia, which were never reached by Greek or Roman conquest or civilisation, where the ancient forms of worship and conceptions of divinity, which existed before Christianity and Islam, still flourish. And here I shall only deal with the relations of the State to religion in India and China and their dependencies, because these vast and populous empires contain the two great religions, Hinduism and Buddhism, of purely Asiatic origin and character, which have assimilated to a large extent, and in a certain degree elevated, the indigenous polytheism, and which still exercise a mighty influence over the spiritual and moral condition of many millions. We know what a tremendous power religion has been in the wars and politics of the West. I submit that in Eastern Asia, beyond the pale of Islam, the history of religion has been very different. Religious wars—I mean wars caused by the conflict of militant faiths contending for superiority—were, I believe, unknown on any great scale to the ancient civilisations. It seems to me that until Islam invaded India the great religious movements and changes in that region had seldom or never been the consequence of, nor had been materially affected by, wars, conquests, or political revolutions. Throughout Europe and Mohammedan Asia the indigenous deities and their temples have disappeared centuries ago; they have been swept away by the forces of Church and State combined to exterminate them; they have all yielded to the lofty overruling ideal of monotheism.

But the tide of Mohammedanism reached its limit in India; the people, though conquered, were but partly converted, and eastward of India there have been no important Mohammedan rulerships. On this side of Asia, therefore, two great religions, Buddhism and Brahmanism, have held their ground from times far anterior to Christianity; they have retained the elastic comprehensive character of polytheism, purified and elevated by higher conceptions, developed by the persistent competition of diverse ideas and forms among the people, unrestrained by attempts of superior organised faiths to obliterate the lower and weaker species. In that region political despotism has prevailed immemorially; religious despotism, in the sense of the legal establishment of one faith or worship to the exclusion of all others, of uniformity imposed by coercion, of proselytism by persecution, is unknown to history: the governments have been absolute and personal; the religions have been popular and democratic. They have never been identified so closely with the ruling power as to share its fortunes, or to be used for the consolidation of successful conquest. Nor, on the other hand, has a ruler ever found it necessary, for the security of his throne, to conform to the religion of his subjects, and to abjure all others. The political maxim, that the sovereign and his subjects should be of one and the same religion, ‘Cujus regio ejus religio’, has never prevailed in this part of the world.

And although in India, the land of their common origin, Buddhism widely displaced and overlaid Brahmanism, while it was in its turn, after several centuries, overcome and ejected by a Brahmanic revival, yet I believe that history records no violent contests or collisions between them; nor do we know that the armed force of the State played any decisive part in these spiritual revolutions. I do not maintain that Buddhism has owed nothing to State influence. It represents certain doctrines of the ancient Indian theosophy, incarnate, as one might say, in the figure of a spiritual Master, the Indian prince, Sakya Gautama, who was the type and example of ascetic quietism; it embodies the idea of salvation, or emancipation attainable by man’s own efforts, without aid from priests or divinities. Buddhism is the earliest, by many centuries, of the faiths that claim descent from a personal founder. It emerges into authentic history with the empire of Asoka, who ruled over the greater part of India some 250 years before Christ, and its propagation over his realm and the countries adjacent is undoubtedly due to the influence, example, and authority of that devout monarch.

According to Mr. Vincent Smith, from whose valuable work on the Early History of India I take the description of Asoka’s religious policy, the king, renouncing after one necessary war all further military conquest, made it the business of his life to employ his autocratic power in directing the preaching and teaching of the Law of Piety, which he had learnt from his Buddhist priesthood. All his high officers were commanded to instruct the people in the way of salvation; he sent missions to foreign countries; he issued edicts promulgating ethical doctrines, and the rules of a devout life; he made pilgrimages to the sacred places; and finally he assumed the yellow robe of a Buddhist monk.

Asoka elevated, so Mr. Smith has said, a sect of Hinduism to the rank of a world-religion. Nevertheless, I think it may be affirmed that the emperor consistently refrained from the forcible conversion of his subjects, and indeed the use of compulsion would have apparently been a breach of his own edicts, which insist on the principle of toleration, and declare the propagation of the Law of Piety to be his sole object. Asoka made no attempt to persecute Brahmanism; and it seems clear that the extraordinary success of Buddhism in India cannot be attributed to war or to conquest. To imperial influence and example much must be ascribed, yet I think Buddhism owed much more to its spiritual potency, to its superior faculty of transmuting and assimilating, instead of abolishing, the elementary instincts and worships, endowing them with a higher significance, attracting and stimulating devotion by impressive rites and ceremonies, impressing upon the people the dogma of the soul’s transmigration and its escape from the miseries of sentient existence by the operation of merits. And of all great religions it is the least political, for the practice of asceticism and quietism, of monastic seclusion from the working world, is necessarily adverse to any active connection with mundane affairs.

I do not know that the mysterious disappearance of Buddhism from India can be accounted for by any great political revolution, like that which brought Islam into India. It seems to have vanished before the Mohammedans had gained any footing in the country.

Meanwhile Buddhism is said to have penetrated into the Chinese empire by the first century of the Christian era. Before that time the doctrines of Confucius and Laotze were the dominant philosophies; rather moral than religious, though ancestral worship and the propitiation of spirits were not disallowed, and were to a certain extent enjoined. Laotze, the apostle of Taoism, appears to have preached a kind of Stoicism—the observance of the order of Nature in searching for the right way of salvation, the abhorrence of vicious sensuality—and the cultivation of humility, self-sacrifice, and simplicity of life. He condemned altogether the use of force in the sphere of religion or morality; though he admitted that it might be necessary for the purposes of civil government. The system of Confucius inculcated justice, benevolence, self-control, obedience and loyalty to the sovereign—all the civic virtues; it was a moral code without a metaphysical background; the popular worships were tolerated, reverence for ancestors conduced to edification; the gods were to be honoured, though it was well to keep aloof from them; he disliked religious fervour, and of things beyond experience he had nothing to say.

Buddhism, with its contempt for temporal affairs, treating life as a mere burden, and the soul’s liberation from existence as the end and object of meditative devotion, must have imported a new and disturbing element into the utilitarian philosophies of ancient China. For many centuries Buddhism, Taoism, and Confucianism are said to have contended for the patronage and recognition of the Chinese emperors. Buddhism was alternately persecuted and protected, expelled and restored by imperial decree. Priesthoods and monastic orders are institutions of which governments are naturally jealous; the monasteries were destroyed or rebuilt, sacerdotal orders and celibacy suppressed or encouraged by imperial decrees, according to the views and prepossessions of successive dynasties or emperors. Nevertheless the general policy of Chinese rulers and ministers seems not to have varied essentially. Their administrative principle was that religion must be prevented from interfering with affairs of State, that abuses and superstitious extravagances are not so much offences against orthodoxy as matters for the police, and as such must be put down by the secular arm. Upon this policy successive dynasties appear to have acted continuously up to the present day in China, where the relations of the State to religions are, I think, without parallel elsewhere in the modern world. One may find some resemblance to the attitude of the Roman emperors towards rites and worships among the population, in the Chinese emperor’s reverent observance and regulation of the rites and ceremonies performed by him as the religious chief and representative before Heaven of the great national interests. The deification of deceased emperors is a solemn rite ordained by proclamation. As the Ius sacrum, the body of rights and duties in the matter of religion, was regarded in Rome as a department of the Ius publicum, belonging to the fundamental constitution of the State, so in China the ritual code was incorporated into the statute books, and promulgated with imperial sanction. Now we know that in Rome the established ritual was legally prescribed, though otherwise strange deities and their worships were admitted indiscriminately. But the Chinese Government goes much further. It appears to regard all novel superstitions, and especially foreign worships, as the hotbed of sedition and disloyalty. Unlicensed deities and sects are put down by the police; magicians and sorcerers are arrested; and the peculiar Chinese practice of canonising deceased officials and paying sacrificial honours to local celebrities after death is strictly reserved by the Board of Ceremonies for imperial consideration and approval. The Censor, to whom any proposal of this kind must be entrusted, is admonished that he must satisfy himself by inquiry of its validity. An official who performs sacred rites in honour of a spirit or holy personage not recognised by the Ritual Code, was liable, under laws that may be still in force, to corporal punishment; and the adoration by private families of spirits whose worship is reserved for public ceremonial was a heinous offence. No such rigorous control over the multiplication of rites and deities has been instituted elsewhere. On the other hand, while in other countries the State has recognised no more than one established religion, the Chinese Government formally recognises three denominations. Buddhism has been sanctioned by various edicts and endowments, yet the State divinities belong to the Taoist pantheon, and their worship is regulated by public ordinances; while Confucianism represents official orthodoxy, and its precepts embody the latitudinarian spirit of the intellectual classes. We know that the Chinese people make use, so to speak, of all three religions indiscriminately, according to their individual whims, needs, or experience of results. So also a politic administration countenances these divisions and probably finds some interest in maintaining them. The morality of the people requires some religious sanction; and it is this element with which the State professes its chief concern. We are told on good authority that one of the functions of high officials is to deliver public lectures freely criticising and discouraging indolent monasticism and idolatry from the standpoint of rational ethics, as follies that are reluctantly tolerated. Yet the Government has never been able to keep down the fanatics, mystics, and heretical sects that are incessantly springing up in China, as elsewhere in Asia; though they are treated as pestilent rebels and law-breakers, to be exterminated by massacre and cruel punishments; and bloody repression of this kind has been the cause of serious insurrections. It is to be observed that all religious persecution is by the direct action of the State, not instigated or insisted upon by a powerful orthodox priesthood. But a despotic administration which undertakes to control and circumscribe all forms and manifestations of superstition in a vast polytheistic multitude of its subjects, is inevitably driven to repressive measures of the utmost severity. Neither Christianity nor Islam attempted to regulate polytheism, their mission was to exterminate it, and they succeeded mainly because in those countries the State was acting with the support and under the uncompromising pressure of a dominant church or faith. Some writers have noticed a certain degree of resemblance between the policy of the Roman empire and that of the Chinese empire toward religion. We may read in Gibbon that the Roman magistrates regarded the various modes of worship as equally useful, that sages and heroes were exalted to immortality and entitled to reverence and adoration, and that philosophic officials, viewing with indulgence the superstitions of the multitude, diligently practised the ceremonies of their fathers. So far, indeed, his description of the attitude of the State toward polytheism may be applicable to China; but although the Roman and Chinese emperors both assumed the rank of divinity, and were supreme in the department of worships, the Roman administration never attempted to regulate and restrain polytheism at large on the Chinese system. The religion of the Gentiles, said Hobbes, is a part of their policy; and it may be said that this is still the policy of Oriental monarchies, who admit no separation between the secular and the ecclesiastic jurisdiction. They would agree with Hobbes that temporal and spiritual government are but two words brought into the world to make men see double and mistake their lawful sovereign. But while in Mohammedan Asia the State upholds orthodox uniformity, in China and Japan the mainspring of all such administrative action is political expediency. It may be suggested that in the mind of these far-Eastern people religion has never been conceived as something quite apart from human experience and the affairs of the visible world; for Buddhism, with its metaphysical doctrines, is a foreign importation, corrupted and materialised in China and Japan. And we may observe that from among the Mongolian races, which have produced mighty conquerors and founded famous dynasties from Constantinople to Pekin, no mighty prophet, no profound spiritual teacher, has arisen. Yet in China, as throughout all the countries of the Asiatic mainland, an enthusiast may still gather together ardent proselytes, and fresh revelations may create among the people unrest that may ferment and become heated up to the degree of fanaticism, and explode against attempts made to suppress it. The Taeping insurrection, which devastated cities and provinces in China, and nearly overthrew the Manchu dynasty, is a striking example of the volcanic fires that underlie the surface of Asiatic societies. It was quenched in torrents of blood after lasting some ten years. And very recently there has been a determined revolt of the Lamas in Eastern Tibet, where the provincial administration is, as we know, sacerdotal.

The imperial troops are said to be crushing it with unrelenting severity. These are the perilous experiences of a philosophic Government that assumes charge and control over the religions of some three hundred millions of Asiatics.

I can only make a hasty reference to Japan. In that country the relations of the State to religions appear to have followed the Chinese model. Buddhism, Confucianism, Shintoism, are impartially recognised. The emperor presides over official worship as high priest of his people; the liturgical ordinances are issued by imperial rescripts not differing in form from other public edicts. The dominant article of faith is the divinity of Japan and its emperor; and Shinto, the worship of the gods of nature, is understood to be patronised chiefly with the motive of preserving the national traditions. But in Japan the advance of modern science and enlightened scepticism may have diminished the importance of the religious department. Shinto, says a recent writer, still embodies the religion of the people; yet in 1877 a decree was issued declaring it to be no more than a convenient system of State ceremonial.[ The Development of Religion in Japan, G. W. Knox, 1907] And in 1889 an article of the constitution granted freedom of belief and worship to all Japanese subjects, without prejudice to peace, order, and loyalty.

In India the religious situation is quite different. I think it is without parallel elsewhere in the world. Here we are at the fountainhead of metaphysical theology, of ideas that have flowed eastward and westward across Asia. And here, also, we find every species of primitive polytheism, unlimited and multitudinous; we can survey a confused medley of divinities, of rites and worships incessantly varied by popular whim and fancy, by accidents, and by the pressure of changing circumstances. Hinduism permits any doctrine to be taught, any sort of theory to be held regarding the divine attributes and manifestations, the forces of nature, or the mysterious functions of mind or body. Its tenets have never been circumscribed by a creed; its free play has never been checked or regulated by State authority. Now, at first sight, this is not unlike the popular polytheism of the ancient world, before the triumph of Christianity. There are passages in St. Augustine’s Civitas Dei, describing the worship of the unconverted pagans among whom he lived, that might have been written yesterday by a Christian bishop in India. And we might ask why all this polytheism was not swept out from among such a highly intellectual people as the Indians, with their restless pursuit of divine knowledge, by some superior faith, by some central idea. Undoubtedly the material and moral conditions, and the course of events which combine to stamp a particular form of religion upon any great people, are complex and manifold; but into this inquiry I cannot go. I can only point out that the institution of caste has riveted down Hindu society into innumerable divisions upon a general religious basis, and that the sacred books separated the Hindu theologians into different schools, preventing uniformity of worship or of creed. And it is to be observed that these books are not historical; they give no account of the rise and spread of a faith. The Hindu theologian would say, in the words of an early Christian father, that the objects of divine knowledge are not historical, that they can only be apprehended intellectually, that within experience there is no reality. And the fact that Brahmanism has no authentic inspired narrative, that it is the only great religion not concentrated round the life and teachings of a person, may be one reason why it has remained diffuse and incoherent. All ways of salvation are still open to the Hindus; the canon of their scripture has never been authoritatively closed. New doctrines, new sects, fresh theological controversies, are incessantly modifying and superseding the old scholastic interpretations of the mysteries, for Hindus, like Asiatics everywhere, are still in that condition of mind when a fresh spiritual message is eagerly received. Vishnu and Siva are the realistic abstractions of the understanding from objects of sense, from observation of the destructive and reproductive operations of nature; they represent among educated men separate systems of worship which, again, are parted into different schools or theories regarding the proper ways and methods of attaining to spiritual emancipation. Yet the higher philosophy and the lower polytheism are not mutually antagonistic; on the contrary, they support each other; for Brahmanism accepts and allies itself with the popular forms of idolatry, treating them as outward visible signs of an inner truth, as indications of all-pervading pantheism. The peasant and the philosopher reverence the same deity, perform the same rite; they do not mean the same thing, but they do not quarrel on this account. Nevertheless, it is certainly remarkable that this inorganic medley of ideas and worships should have resisted for so many ages the invasion and influence of the coherent faiths that have won ascendancy, complete or dominant, on either side of India, the west and the east; it has thrown off Buddhism, it has withstood the triumphant advance of Islam, it has as yet been little affected by Christianity. Probably the political history of India may account in some degree for its religious disorganisation. I may propound the theory that no religion has obtained supremacy, or at any rate definite establishment, in any great country except with the active co-operation, by force or favour, of the rulers, whether by conquest, as in Western Asia, or by patronage and protection, as in China. The direct influence and recognition of the State has been an indispensable instrument of religious consolidation. But until the nineteenth century the whole of India, from the mountains to the sea, had never been united under one stable government; the country was for ages parcelled out into separate principalities, incessantly contending for territory. And even the Moghul empire, which was always at war upon its frontiers, never acquired universal dominion. The Moghul emperors, except Aurungzeb, were by no means bigoted Mohammedans; and their obvious interest was to abstain from meddling with Hinduism. Yet the irruption of Islam into India seems rather to have stimulated religious activity among the Hindus, for during the Mohammedan period various spiritual teachers arose, new sects were formed, and theological controversies divided the intellectual classes. To these movements the Mohammedan governments must have been for a long time indifferent; and among the new sects the principle of mutual toleration was universal. Towards the close of the Moghul empire, however, Hinduism, provoked by the bigotry of the Emperor Aurungzeb, became a serious element of political disturbance. Attempts to suppress forcibly the followers of Nanak Guru, and the execution of one spiritual leader of the Sikhs, turned the Sikhs from inoffensive quietists into fanatical warriors; and by the eighteenth century they were in open revolt against the empire. They were, I think, the most formidable embodiment of militant Hinduism known to Indian history. By that time, also, the Marathas in South-West India were declaring themselves the champions of the Hindu religion against the Mohammedan oppression; and to the Sikhs and Marathas the dislocation of the Moghul empire may be very largely attributed. We have here a notable example of the dynamic power upon politics of revolts that are generated by religious fermentation, and a proof of the strength that can be exerted by a pacific inorganic polytheism in self-defence, when ambitious rebels proclaim themselves defenders of a faith. The Marathas and the Sikhs founded the only rulerships whose armies could give the English serious trouble in the field during the nineteenth century. On the whole, however, when we survey the history of India, and compare it with that of Western Asia, we may say that although the Hindus are perhaps the most intensely religious people in the world, Hinduism has never been, like Christianity, Islam, and to some extent Buddhism, a religion established by the State. Nor has it suffered much from the State’s power. It seems strange, indeed, that Mohammedanism, a compact proselytising faith, closely united with the civil rulership, should have so slightly modified, during seven centuries of dominion, this infinitely divided polytheism. Of course, Mohammedanism made many converts, and annexed a considerable number of the population—yet the effect was rather to stiffen than to loosen the bonds that held the mass of the people to their traditional divinities, and to the institution of castes. Moreover the antagonism of the two religions, the popular and the dynastic, was a perpetual element of weakness in a Mohammedan empire. In India polytheism could not be crushed, as in Western Asia, by Islam; neither could it be controlled and administered, as in Eastern Asia; yet the Moghul emperors managed to keep on good terms with it, so long as they adhered to a policy of toleration. To the Mohammedan empire has succeeded another foreign dominion, which practises not merely tolerance but complete religious neutrality.

Looking back over the period of a hundred years, from 1757 to 1857, during which the British dominion was gradually extended over India, we find that the British empire, like the Roman, met with little or no opposition from religion. Hindus and Mohammedans, divided against each other, were equally willing to form alliances with, and to fight on the side of, the foreigner who kept religion entirely outside politics. And the British Government, when established, has so carefully avoided offence to caste or creed that on one great occasion only, the Sepoy Mutiny of 1857, have the smouldering fires of credulous fanaticism broken out against our rule. I believe the British-Indian position of complete religious neutrality to be unique among Asiatic governments, and almost unknown in Europe. The Anglo-Indian sovereignty does not identify itself with the interests of a single faith, as in Mohammedan kingdoms, nor does it recognise a definite ecclesiastical jurisdiction in things spiritual, as in Catholic Europe. Still less has our Government adopted the Chinese system of placing the State at the head of different rituals for the purpose of controlling them all, and proclaiming an ethical code to be binding on all denominations. The British ruler, while avowedly Christian, ignores all religions administratively, interfering only to suppress barbarous or indecent practices when the advance of civilisation has rendered them obsolete. Public instruction, so far as the State is concerned, is entirely secular; the universal law is the only authorised guardian of morals; to expound moral duties officially, as things apart from religion, has been found possible in China, but not in India. But the Chinese Government can issue edicts enjoining public morality and rationalism because the State takes part in the authorised worship of the people, and the emperor assumes pontifical office. The British Government in India, on the other hand, disowns official connection with any religion. It places all its measures on the sole ground of reasonable expediency, of efficient administration; it seeks to promote industry and commerce, and material civilisation generally; it carefully avoids giving any religious colour whatever to its public acts; and the result is that our Government, notwithstanding its sincere professions of absolute neutrality, is sometimes suspected of regarding all religion with cynical indifference, possibly even with hostility. Moreover, religious neutrality, though it is right, just, and the only policy which the English in India could possibly adopt, has certain political disadvantages. The two most potent influences which still unite and divide the Asiatic peoples, are race and religion; a Government which represents both these forces, as, for instance, in Afghanistan, has deep roots in a country. A dynasty that can rely on the support of an organised religion, and stands forth as the champion of a dominant faith, has a powerful political power at its command. The Turkish empire, weak, ill-governed, repeatedly threatened with dismemberment, embarrassed internally by the conflict of races, has been preserved for the last hundred years by its incorporation with the faith of Islam, by the Sultan’s claim to the Caliphate. To attack it is to assault a religious citadel; it is the bulwark on the west of Mohammedan Asia, as Afghanistan is the frontier fortress of Islam on the east. A leading Turkish politician has very recently said: ‘It is in Islam pure and simple that lies the strength of Turkey as an independent State; and if the Sultan’s position as religious chief were encroached upon by constitutional reforms, the whole Ottoman empire would be in danger.’ We have to remember that for ages religious enthusiasm has been, and still is in some parts of Asia, one of the strongest incentives to military ardour and fidelity to a standard on the battlefield. Identity of creed has often proved more effective, in war, than territorial patriotism; it has surmounted racial and tribal antipathies; while religious antagonism is still in many countries a standing impediment to political consolidation. When, therefore, we survey the history of religions, though this sketch is necessarily very imperfect and inadequate, we find Mohammedanism still identified with the fortunes of Mohammedan rulers; and we know that for many centuries the relations of Christianity to European States have been very close. In Europe the ardent perseverance and intellectual superiority of great theologians, of ecclesiastical statesmen supported by autocratic rulers, have hardened and beat out into form doctrines and liturgies that it was at one time criminal to disregard or deny, dogmatic articles of faith that were enforced by law. By these processes orthodoxy emerged compact, sharply defined, irresistible, out of the strife and confusion of heresies; the early record of the churches has pages spotted with tears and stained with blood. But at the present time European States seem inclined to dissolve their alliance with the churches, and to arrange a kind of judicial separation between the altar and the throne, though in very few cases has a divorce been made absolute. No State, in civilised countries, now assists in the propagation of doctrine; and ecclesiastical influence is of very little service to a Government. The civil law, indeed, makes continual encroachments on the ecclesiastical domain, questions its authority, and usurps its jurisdiction. Modern erudition criticises the historical authenticity of the scriptures, philosophy tries to undermine the foundations of belief; the governments find small interest in propping up edifices that are shaken by internal controversies. In Mohammedan Asia, on the other hand, the connection between the orthodox faith and the States is firmly maintained, for the solidarity is so close that disruptions would be dangerous, and a Mohammedan rulership over a majority of unbelievers would still be perilously unstable. I have thus endeavoured to show that the historical relations of Buddhism and Hinduism to the State have been in the past, and are still in the present time, very different from the situation in the West. There has always existed, I submit, one essential distinction of principle. Religious propagation, forcible conversion, aided and abetted by the executive power of the State, and by laws against heresy or dissent, have been defended in the West by the doctors of Islam, and formerly by Christian theologians, by the axiom that all means are justifiable for extirpating false teachers who draw souls to perdition. The right and duty of the civil magistrate to maintain truth, in regard to which Bossuet declared all Christians to be unanimous, and which is still affirmed in the Litany of our Church, is a principle from which no Government, three centuries ago, dissented in theory, though in practice it needed cautious handling. I do not think that this principle ever found its way into Hinduism or Buddhism; I doubt, that is to say, whether the civil government was at any time called in to undertake or assist propagation of those religions as part of its duty. Nor do I know that the States of Eastern Asia, beyond the pale of Islam, claim or exercise the right of insisting on conformance to particular doctrines, because they are true. The erratic manifestations of the religious spirit throughout Asia, constantly breaking out in various forms and figures, in thaumaturgy, mystical inspiration, in orgies and secret societies, have always disquieted these Asiatic States, yet, so far as I can ascertain, the employment of force to repress them has always been justified on administrative or political grounds, as distinguishable from theological motives pure and simple. Sceptics and agnostics have been often marked out for persecution in the West, but I do not think that they have been molested in India, China, or Japan, where they abound, because they seldom meddle with politics.[ ‘Atheism did never disturb States’ (Bacon)]. It may perhaps be admitted, however, that a Government which undertakes to regulate impartially all rites and worship among its subjects is at a disadvantage by comparison with a Government that acts as the representative of a great church or an exclusive faith. It bears the sole undivided responsibility for measures of repression; it cannot allege divine command or even the obligation of punishing impiety for the public good. To conclude. In Asiatic States the superintendence of religious affairs is an integral attribute of the sovereignty, which no Government, except the English in India, has yet ventured to relinquish; and even in India this is not done without some risk, for religion and politics are still intermingled throughout the world; they act and react upon each other everywhere. They are still far from being disentangled in our own country, where the theory that a Government in its collective character must profess and even propagate some religion has not been very long obsolete. It was maintained seventy years ago by a great statesman who was already rising into prominence, by Mr. Gladstone. The text of Mr. Gladstone’s argument, in his book on the relations of the State with the Church, was Hooker’s saying, that the religious duty of kings is the weightiest part of their sovereignty; while Macaulay, in criticising this position, insisted that the main, if not the only, duty of a Government, to which all other objects must be subordinate, was the protection of persons and property. These two eminent politicians were, in fact, the champions of the ancient and the modern ideas of sovereignty; for the theory that a State is bound to propagate the religion that it professes was for many centuries the accepted theory of all Christian rulerships, though I think it now survives only in Mohammedan kingdoms. As the influence of religion in the sphere of politics declines, the State becomes naturally less concerned with the superintendence of religion; and the tendency of constitutional Governments seems to be towards abandoning it. The States that have completely dissolved connection with ecclesiastical institutions are the two great republics, the United States of America and France. We can discern at this moment a movement towards constitutional reforms in Mohammedan Asia, in Turkey, and Persia, and if they succeed it will be most interesting to observe the effect which liberal reforms will produce upon the relation of Mohammedan Governments with the dominant faith, and on which side the religious teachers will be arrayed. It is certain, at any rate, that for a long time to come religion will continue to be a potent factor in Asiatic politics; and I may add that the reconciliation of civil with religious liberty is one of the most arduous of the many problems to be solved by the promoters of national unity.”

China’s India Example: Tibet, Xinjiang May Not Be Assimilated Like Inner Mongolia, Manchuria

Author’s Note: My articles on related subjects recently published in The Statesman include “Understanding China”, “China’s India Aggression”, “China’s Commonwealth”,  “Nixon & Mao vs India”, “Lessons from the 1962 War”, “China’s force & diplomacy” etc

 

 

China’s India Example: Tibet, Xinjiang May Not Be Assimilated Like Inner Mongolia And Manchuria

by

Subroto Roy

First published in The Statesman, Editorial Page Special Article March 25 2008

Zhang Qingli, Tibet’s current Communist Party boss, reportedly said last year, “The Communist Party is like the parent (father and mother) of the Tibetans. The Party is the real boddhisatva of the Tibetans.” Before communism, China’s people followed three non-theistic religious cultures, Buddhism, Confucianism and Taoism, choosing whichever aspects of each they wished to see in their daily lives. Animosity towards the theism of Muslims and Christians predates the 1911 revolution. Count Witte, Russia’s top diplomatist in Czarist times, reported the wild contempt towards Islam and wholly unprovoked insult of the Emir of Bokhara by Li Hung Chang, Imperial China’s eminent Ambassador to Moscow, normally the epitome of civility and wisdom. In 1900 the slogan of the Boxer Revolts was “Protect the country, destroy the foreigner” and catholic churches and European settlers and priests were specifically targeted. The Communists have not discriminated in repression of religious belief and practice ~ monasteries, mosques, churches have all experienced desecration; monks, ulema, clergymen all expected to subserve the Party and the State.

 

 

Chinese nationalism

For Chinese officials to speak of “life and death” struggle against the Dalai Lama sitting in Dharamsala is astounding; if they are serious, it signals a deep long-term insecurity felt in Beijing. How can enormous, wealthy, strong China feel any existential threat at all from unarmed poor Tibetans riding on ponies? Is an Israeli tank-commander intimidated by stone-throwing Palestinian boys? How is it China (even a China where the Party assumes it always knows best), is psychologically defensive and unsure of itself at every turn?

 

The Chinese in their long history have not been a violent martial people ~ disorganized and apolitical traders and agriculturists and highly civilised artisans and scholars more than fierce warriors fighting from horseback. Like Hindus, they were far more numerous than their more aggressive warlike invading rulers. Before the 20th Century, China was dominated by Manchu Tartars and Mongol Tartars from the Northeast and Northwest ~ the Manchus forcing humiliation upon Chinese men by compelling shaved heads with pigtails. Similar Tartar hordes ruled Russia for centuries and Stalin himself, according to his biographer, might have felt Russia buffered Europe from the Tartars.

 

 

Chinese nationalism arose only in the 20th Century, first under the Christian influence of Sun Yatsen and his brother-in-law Chiang Kaishek, later under the atheism of Mao Zedong and his admiring friends, most recently Deng Xiaoping and successors. “Socialism with Chinese characteristics” is the slogan of the present Communist Party but a more realistic slogan of what Mao and friends came to represent in their last decades may be “Chinese nationalism with socialist characteristics”. Taiwan and to lesser extent Singapore and Hong Kong represent “Chinese nationalism with capitalist characteristics”. Western observers, keen always to know the safety of their Chinese investments, have focused on China’s economics, whether the regime is capitalist or socialist and to what extent ~ Indians and other Asians may be keener to identify, and indeed help the Chinese themselves to identify better, the evolving nature of Chinese nationalism and the healthy or unhealthy courses this may now take.

 

 

Just as Czarist and Soviet Russia attempted Russification in Finland, the Baltics, Poland, Ukraine etc., Imperial and Maoist China attempted “Sinification” in Manchuria and Inner Mongolia as well as Tibet and Xinjiang (Sinkiang, East Turkestan). Russification succeeded partially but backfired in general. Similarly, Sinification succeeded naturally in Manchuria and without much difficulty in Inner Mongolia. But it has backfired and backfired very badly in Tibet and Xinjiang, and may be expected to do so always.

 

 

In India, our soft state and indolent corrupt apparatus of political parties constitute nothing like the organized aggressive war-machine that China has tried to make of its state apparatus, and we have much more freedom of all sorts. India does not prohibit or control peasant farmers or agricultural labourers from migrating to or visiting large metropolitan cities; villagers are as free as anyone else to clog up all city life in India with the occasional political rally ~ in fact India probably may not even know how to ban, suppress or repress most of the things Communist China does.

Hindu traditions were such that as long as you did not preach sedition against the king, you could believe anything ~ including saying, like the Carvaka, that hedonism and materialism were good, spiritualism was bunkum and the priestly class were a bunch of crooks and idiots. Muslim and British rulers in India were not too different ~ yes the Muslims did convert millions by offering the old choice of death or conversion to vanquished people, and there were evil rulers among them but also great and tolerant ones like Zainulabidin of Kashmir and Akbar who followed his example.

India’s basic political ethos has remained that unless you preach sedition, you can basically say or believe anything (no matter how irrational) and also pretty much do whatever you please without being bothered too much by government officials. Pakistan’s attempts to impose Urdu on Bengali-speakers led to civil war and secession; North India’s attempts to impose Hindi on the South led to some language riots and then the three-language formula ~ Hindi spreading across India through Bollywood movies instead.

China proudly says it is not as if there are no declared non-Communists living freely in Beijing, Shanghai etc, pointing out distinguished individual academics and other professionals including government ministers who are liberals, social democrats or even Kuomintang Nationalists. There are tiny state-approved non-Communist political parties in China, some of whose members even may be in positions of influence. It is just that such (token) parties must accept the monopoly and dictatorship of the Communists and are not entitled to take state power. The only religion you are freely allowed to indulge in is the ideology of the State, as that comes to be defined or mis-defined at any time by the Communist Party’s rather sclerotic leadership processes.

Chinese passports

During China’s Civil War, the Communists apparently had promised Tibet and Xinjiang a federation of republics ~ Mao later reneged on this and introduced his notion of “autonomous” regions, provinces and districts. The current crisis in Tibet reveals that the notion of autonomy has been a complete farce. Instead of condemning the Dalai Lama and repressing his followers, a modern self-confident China can so easily resolve matters by allowing a Dalai Lama political party to function freely and responsibly, first perhaps just for Lhasa’s municipal elections and gradually in all of Tibet. Such a party and the Tibet Communist Party would be adequate for a two-party system to arise. The Dalai Lama and other Tibetan exiles also have a natural right to be issued Chinese passports enabling them to return to Tibet~ and their right to return is surely as strong as that of any Han or Hui who have been induced to migrate to Tibet from Mainland China. Such could be the very simple model of genuine autonomy for Tibet and Xinjiang whose native people clearly do not wish to be assimilated in the same way as Inner Mongolia and Manchuria. India’s federal examples, including the three-language formula, may be helpful. Once Mainland China successfully allows genuine autonomy and free societies to arise in Tibet and Xinjiang, the road to reconciliation with Taiwan would also have been opened.

Irresponsible Governance

Irresponsible Governance

Congress, BJP, Communists, BSP, Sena Etc Reveal Equally Bad Traits

By Subroto Roy

First published in The Statesman, March 4 2008, Editorial Page Special Article, http://www.thestatesman.net

A “black” American, born of a black Kenyan father and white American mother, and having a Muslim middle name Hussein though Christian by faith, may become the freely elected President of the USA in January 2009. He has stood up himself and anyone who knows Western cultures will know how hard it would have been to overcome workplace prejudices. Martin Luther King Jr’s dream of America becoming a nation where people “will not be judged by the colour of their skin but by the content of their character” might start to be fulfilled.

Can the same be said of modern India, ever? When will Muslims, Dalits, tribals and whomever become well enough integrated with mainstream Hindu societies ~ and vice versa ~ that we have army generals, fighter pilots, submarine commanders, nuclear scientists, media moghuls, top executives, and yes, freely elected Prime Ministers of India from any externally identifiable group without batting an eyelid? The policies followed by the Congress, BJP, Communists, BSP etc., exemplified by Mr Chidambaram’s pandering Budget-Speech last week, suggest that the answer will be never.

Selling illusions

Mr Chidambaram mentioned “Scheduled Caste” six times and “Minority” (meaning “Muslim”) five times in his speech~ if he or the Sonia-Manmohan Government genuinely felt any of the schemes mentioned were in the true interest of these groups, these schemes could have been simply and quietly implemented without fanfare or political advertisement. Making a big deal about them in Parliament during a Budget-Speech precisely reveals the actual underlying cynicism and hypocrisy. The fact may be it is not the schemes themselves that are important but the illusions created and sold about them, illusions that have electoral value because they deceive the purported beneficiaries into thinking that somebody powerful cares about them and controls their well-being.

A quarter-century ago in Pricing, Planning & Politics: A Study of Economic Distortions in India, I applied the arguments of the black American economist Thomas Sowell to the Indian case. I said: “the racial composition of contemporary American society is a complex mosaic, and no-one can say with certainty how it has come to be what it is today. In such circumstances, for the government to try to isolate a single contingent characteristic like “race”, partition society on the basis of census data according to this characteristic, and then construct public policies accordingly, is to introduce an enormous arbitrariness into economic life. By merely defining a group by reference to a single contingent characteristic, which all its members seem to possess, the intrinsic complexity of the individual person is lost or overlooked. Two members of the same race may be very different from each other in every relevant characteristic (income, education, political preference, and so on), and indeed resemble members of other races more closely in them. A policy which introduces a citizen’s race as a relevant factor in the assignment of jobs or college places partitions the citizenry into vague groups: members of groups who are very different from members of other groups in characteristics other than race rarely competing with each other anyway, while the burden and beneficence of the State’s policies fall on members of groups who are not very different from members of other groups in characteristics other than race”.

Sowell himself (in Knowledge and Decisions) put it like this: “costs are borne disproportionately by those members of the general population who meet standards with the least margin and are therefore most likely to be the ones displaced to make room for minority applicants. Those who meet the standards by the widest margin are not directly affected ~ that is, pay no costs. They are hired, admitted or promoted as if blacks did not exist. People from families with the most general ability to pay also have the most ability to pay for the kind of education and training that makes such performance possible. The costs of special standards are paid by those who do not. Among the black population, those most likely to benefit from the lower standards are those closest to meeting the normal standards. It is essentially an implicit transfer of wealth among people least different in non-racial characteristics. For the white population it is a regressively graduated tax in kind, imposed on those who are rising but not on those already on top.’”

What Sowell said about American blacks may well apply to India’s religious and caste minorities today. Problems of tribal India are more subtle requiring more technical sociological and anthropological study.

The Leftist idea common to the Congress, Communists, BSP etc has been to perpetuate dependency of Muslims, Dalits, OBCs etc upon the whims of State power (as wielded by such Leftists themselves). By contrast, the Rightist/Fascistic idea of the BJP, its RSS parent, the Sena etc has been to try to bludgeon Muslims, Dalits and everyone else into submission whereby they must adopt majority customs, habits or political beliefs or (in true Nazi fashion) come to be exiled or banned from mainstream society. Both Left and Right in India have also promoted new government-induced “Sex Wars” between males and females ~ passing laws drastically raising the risk and cost of maintaining marriages and family households, which then simply collapse as has happened elsewhere.

In general, the Congress, BJP, Communists, BSP etc have been united in being wholly incapable of seeing India’s people as individuals in their own right in all the diversity and complexity that entails ~ as free citizens who possess individual rights to belief, property, security, privacy etc. Instead the idea has been to politically categorize people as members of mass-groups that may be then manipulated as puppets using State power in one direction or another. The result has been a general failure in the country to develop the notion of responsible individual citizens (hundreds of millions in number) dealing with responsible public and civic institutions including the State.

Citizens and State

Even in nations that are heirs to a long history of democratic political development, the link often has not been made in the public mind between enjoyment or lack of enjoyment of public services, and costs upon individual citizens from whom resources must be ultimately raised. In a fiscal democracy “those who bear the costs of public services are also the beneficiaries” (JM Buchanan); conversely, those who demand public services must pay for them in real resources one way or another. If citizens feel they receive little or nothing of value from government, there is an obvious loss of incentive to be counted as responsible voting members of the same community, and instead reason to evade taxes or flee the country or cynically believe everything to be corrupt.

On the other hand, if citizens demand public services without expecting to contribute private resources for their production, this amounts to being no more than a wish to be free-riders on the general budget. While Indian citizens have been arbitrarilty partitioned by government according to religion, caste etc., widespread cynicism has prevailed about secular provision of public services by government at any level. At the same time the idea is far from understood that beneficiaries of public services must sooner or later expect to bear real resource-costs one way or another. Everyday politics thus becomes highly irresponsible. Political New Delhi has created such a state of affairs over decades and continues to contribute to it.

Lal Masjid ≠ Golden Temple

Lal Masjid ≠ Golden Temple

Wide differences are revealed between contemporary Pakistan and India by these two superficially similar military assaults on armed religious civilians

By SUBROTO ROY

First published in The Sunday Statesman, July 15 2007, ww.thestatesman.net, Editorial Page Special Article

There is a superficial similarity between what happened in Pakistan’s “Operation Silence/ Sunrise” at the Lal Masjid a few days ago and what happened in India’s “Operation Blue Star” at the Golden Temple in May-June 1984. In both cases, heavily armed religiously motivated civilians were holed up in a place of worship, and were laid siege to and then killed or arrested by an assault force sent by the national government.

That, however, is about as far as the similarity goes, and it would be a gross error to equate the two and suppose General Musharraf has been only doing something similar to what Indira Gandhi did twenty three years ago. In fact, revisiting the Golden Temple case allows a vivid contrast to be drawn between the very different kinds of national societies modern India and Pakistan have become.

Sant Jarnail Singh Bhindranwale was an unexceptional preacher who shot into prominence and fame after first being used by Sanjay Gandhi and Zail Singh in Punjab politics, and later causing the Akali Dal itself to become more communal in nature. Bhindranwale was initially set up by the Sanjay-Zail Congress Party in 1978 to oppose the heretic Nirankari sect, in an attempt to make the Congress gain local electoral support relative to the Akalis by seeming more chauvinistic and less secular in outlook. By July 1982, Bhindranwale, whose associates had been implicated by the police in a number of murders, was holed up in the Golden Temple complex and apparently never left again until he was killed in Operation Blue Star in early June 1984.

Officially, “minimum force” was to be applied in Blue Star: soldiers went in barefoot “with humility in our hearts and prayers on our lips” and sustained heavier casualties than they would have otherwise. Fierce fighting saw Vijayanta tanks and armoured cars being attacked by Chinese-made rocket-propelled grenades that had been smuggled in from the Afghan war. Innocent civilians and surrendered prisoners came to be killed (see Mark Tully and Satish Jacob, Amritsar: Mrs Gandhi’s Last Battle, 1985.)

Yet even so, India’s military had only an instrumental role to play in the Golden Temple siege and assault. The root causes that made the siege inevitable had nothing to do with India’s military itself but were a result of the myopic, ignorant and rather evil nature of our democratic politics during the Indira-Sanjay era ~ something which has continued in slightly milder form to this day throughout the country.

By contrast, the current Pakistani situation is one in which the assault was ordered by the retired head of the Pakistan Army, Pervez Musharraf, who has refused to quit office since being dismissed eight years ago by the last civilian Government headed by Nawaz Sharif. Instead he carried out a coup d’etat against Sharif, and has maintained himself in office claiming, like Ayub Khan, he will one day restore democratic institutions better than the nascent ones he has destroyed. To his credit, Pakistan’s press has been freer than before.

Pakistan’s generals and retired generals have seemed to occasionally grumble, especially when Nawab Bugti of Balochistan was killed, but not do more. This may be because Musharraf has made clear, most poignantly in his January 2002 speech, that any price would be paid by him, including succumbing entirely to American pressure on all matters, so long as the paramount goal of the Pakistan military was maintained, which has been, after all, that of trying by hook or crook to wrest Jammu & Kashmir from India.

J&K has remained the external objective of the Pakistan military as an institution even while, internally, officers have amassed vast personal fortunes over the decades and become major businessmen involved in innumerable foreign collaborations, especially with the Chinese. Musharraf, when asked by an Urdu TV channel not long ago what would happen if India did not relent on J&K, even murmured that war could then continue for a 100 years. Such has been the ostensible driving force of the Pakistan military and the raison d’etre of its domination of all aspects of the economy and society of the country.

At the same time, Pakistan’s military has constituted an Anglo-American reserve bastion for decades, and been a major destination of Western and Chinese armaments ~ paid for often by soft loans or grants from the Gulfs states and Saudi Arabia where thousands of Pakistani personnel serve to staff Arab militaries. Many commentators (e.g. Ayesha Jalal and WE James and myself in the late 1980s/early 1990s, Husain Haqqani and Ayesha Siddiqa today) have pointed to the smothering effect the military has had on all matters of modern Pakistan’s political economy.

The French diplomatic scholar Frédéric Grare has described the situation bluntly: “The fear of an Islamic threat has been the driving force behind most Western countries’ foreign policies toward Pakistan in recent years. The possibility that violent Islamists will kill President Pervez Musharraf, throw Pakistan into turmoil, take over the country and its nuclear weapons, and escalate regional terrorism has dominated the psychological and political landscape. Such fears have usually led to support of the Pakistani military as the only institution able to contain the danger. But the Islamist threat is neither as great nor as autonomous as many assume. True, Pakistan has experienced more than its share of religious violence, both sectarian and jihadi. But serious law-and-order problems do not mean the fate of the state is at stake. No Islamic organization has ever been in a position to politically or militarily challenge the role of the one and only centre of power in Pakistan: the army. On the contrary, the Pakistani Army has used Islamic organizations for its purposes, both at home and abroad. Islamist organizations balance the power of rival mainstream political parties, preserving the army’s role as national arbiter. The army has nurtured and sometimes deployed violent Islamists in Afghanistan (with US support at first), Kashmir, and other hot spots on the subcontinent.” Pakistan: The Myth of an Islamist Peril, Carnegie Endowment, February 2006. Pakistan’s Army may be effectively beyond anyone’s control other than itself. The fox has placed itself in charge of the hen-house.

Indeed, unlike the Indian case during the Bhindranwale period, where religious differences were attempted to be marked between Sikhs and Hindus to allay the perpetual Sikh fear of being reabsorbed into the Hindu fold, the present Pakistani case has had less to do with religious differences than it has to do with the concentration and dispensation of political power. By kidnapping Chinese masseuses in Islamabad, Lal Masjid protestors were hardly making a large religious point but rather one of political powerlessness and lack of voice or exit.

As for the people of J&K on both sides of the Line of Control, if they are objective in their assessment of the histories of India and Pakistan that they see before them, they may conclude once more as they did in the past that, all things considered, their political ancestors especially Sheikh Abdullah and Bakshi Ghulam Mohammad were prescient indeed back in 1947-1951 in pressing the future of J&K with the new secular democratic India and not a Pakistan that remains petulant and militarist. Pakistan’s military has expanded itself using J&K as the ostensible cause, yet the more unpleasant Pakistan’s political economy becomes because of that military, the less attractive modern Pakistan becomes to all the peoples of the subcontinent. As the present author said in these pages on 3 September 2006, “To be a man of destiny, Musharraf must transcend the military-business complex he rules over and reduce its role in Pakistani life, not increase it.”

On Indian Nationhood

On Indian Nationhood
From Tamils To Kashmiris And Assamese And Mizos To Sikhs And Goans

First published in The Statesman, Editorial Page

May 25 2007

By Subroto Roy

In the decades before 1947, imperialist critics of Indian nationalism accused the movement of being less about creating Indian nationhood than about supplanting British rule with local Indian oligarchies. Sydenham, for example, in the upper house of Britain’s Parliament in August 1918, gleefully quoted from the “Madras Dravidian Hindu Association” (forerunners of today’s DMK etc): “We shall fight to the last drop of our blood any attempt to transfer the seat of authority in this country from British hands to so-called high-caste Hindus, who have ill-treated us in the past and will do so again but for the protection of British laws.” Also quoted were “Namasudras of Bengal”, allegedly numbering “ten million men”, protesting “gross misrepresentation” by “so-called high-caste leaders” of the desirability of “Home Rule or self-government”. Besides caste and class there was always religion too by which India’s inhabitants could be classified and divided, and it must have delighted Sydenham to quote the “South Indian Islamic League” saying “Nothing should be done which will weaken British authority in any manner whatsoever, and hand over the destinies of the Moslem community to a class which has no regard for their interests and no respect for their sentiments”.

Home Rule League

Sydenham was attacking the Montagu-Chelmsford Report which had stated that India had “a core of earnest men who believe sincerely and strive for political progress; around them a ring of less educated people to whom a phrase or a sentiment appeals; and an outside fringe of those who have been described as attracted by curiosity to this new thing, or who find diversions in attacking a big and very solemn Government as urchins might take a perilous joy at casting toy darts at an elephant.”

Annie Besant, herself an Englishwoman, was, along with BG Tilak and MA Jinnah, a pioneer of Indian nationalism at the time and headed the new Indian Home Rule League on the Irish pattern. The League stated its membership at 52,000. Sydenham multiplied that by five and asked if a quarter million could purport to rule 244 millions in an Indian democracy. Where, he demanded, was the “voice that cannot yet be heard, the voice of the peoples of India”? The imperialist jibe was that the British Raj would be replaced at best by a “Vakil Raj” of “high-caste” Hindus and at worst by anarchy and bloodshed.

Thirty years later India’s was partitioned and independent under Attlee’s Labour Party. Churchill took over the imperialist mantle and found solace in the new India agreeing to remain in Britain’s “Commonwealth”, saying that India doing so as a Republic did not impair “the majesty of the Crown or the personal dignity of the King”.

The ghosts of Churchill and Sydenham today would heartily cheer our Republic’s current President APJ Abdul Kalam agreeing to receive the “King Charles II Medal” from the Royal Society, and our current PM Manmohan Singh accepting honorary British degrees also while in office. Britain’s Crown Prince has proposed a cricket match between India and Pakistan to mark the 60th anniversary of 1947, and what, after all, could be less inappropriate to mark the event in British eyes? All that Indian nationalism would have been firmly put in its place.

Now Pakistan mostly goes unmentioned in the history of Indian nationalism because the new Pakistanis as of 14 August 1947 hardly felt or even wished to be independent of the British. Instead they longed only to acquire control over any kind of Muslim-majority Government that they could, and as much of the resources and joint military assets of the old India they could get their hands on.

The Kashmir dispute and India-Pakistan conflict have not been ones between Hindus and Muslims, regardless of what the BBC, CNN etc make themselves believe. As much as for any other reason, Kashmir escalated out of control because of British irresponsibility during the process of disintegration of the old Indian Army between the two new Dominions. Newly demobilised Mirpuri soldiers who had formed loyal British battalions were drawn into the cycle of Partition-related communal violence and reprisals in Punjab, which inevitably spilt over into Jammu and culminated in the attack on J&K State that commenced from Pakistan’s NWFP in October 1947 ~ plunging J&K into civil war with Sheikh Abdullah and Bakshi Ghulam Mohammad’s National Conference allied to the new secular India and Sardar Ibrahim’s Muslim Conference allied to the new and soon to be Islamic Pakistan. Field Marshal Auchinlek, the Supreme Commander of both Indian and Pakistani Armed Forces, had the decency to resign and abolish the so-called “Supreme Command” as soon as he realised his own forces were at war with one another.

It would not be too inaccurate to say Pakistan and Britain continued in a neo-colonial relationship throughout the 1950s and 1960s ~ all the way until Ayub Khan (who had been warmly entertained at Chequers during the Christine Keeler-Profumo matter), overplayed his hand by attacking India in 1965. That war followed by the East Pakistan cyclone in 1969 brought to a head the inherent political contradictions of the Pakistani state accumulated until that time, and soon led to Bangladesh’s creation in 1971. Britain has had no real interest in Bangladesh but as Pakistan had allowed dual nationality with Britain, Britain found itself with a lot of Bangladeshi immigrants whose “Indian” restaurants give modern Britons today something to look forward to every weekend.

Britain and its American ally continued to have deep interests in Pakistan, mostly because of the geopolitical importance of Pakistani real estate and the generally obsequious and compliant nature of the Pakistani military and diplomatic elite. All that began to change fundamentally when the real declaration of Pakistani independence occurred in the world with the AQ Khan nuclear bombs exploding in 1998 followed by the September 11 2001 attacks upon the USA.

Nationalism today

As for ourselves in India, we have developed some coherent and recognisable design of a modern political economy with a Union Government and more than two dozen State Governments, and we have abolished the imperialist lackeys known as the “princes”. Our Governments at Union and State levels change peacefully by periodic elections under the 1950 Constitution. This in itself would be seen as an astonishing democratic achievement relative to where we were one hundred years ago at the time of the Morley-Minto policies. Thanks to Jawaharlal Nehru, we have had universal franchise since 1952 (at a time when the USA still had its Jim Crow laws against black citizens) ~ yet the imperialist jibe of an infinitesimally small elite purporting to represent hundreds of millions of India’s people remains to be addressed.

It would be interesting to know how many descendants of the 52,000 members of Annie Besant’s Home Rule League remain in India and how many have emigrated to the USA, Britain, Australia etc. The children of our top military, bureaucratic, business, professional and academic elite have cheerfully led an exodus out of the country. E.g. the son of a former commanding general of the Indian Army’s Artillery Regiment is now a British businessman and member of Tony Blair’s new House of Lords. Indian Nationhood in the 21st Century no longer has to include Bangladeshis and Pakistanis who have ended up seeking to develop their own nationalisms, but it remains hard enough to try to include everyone else ~ from Tamils to Kashmiris and from Assamese and Mizos to Sikhs and Goans. Cleaning up our government accounting and sorting out our public finances nationwide so as to establish a sound money for everyone to use for the first time in sixty or seventy years, is among the first steps in defining our common goals as an independent nation.

(Postscript: The original text stated Independence and Paritition came “forty years” after the only date mentioned until that point in the text, which is of the 1918 Montagu-Chelmsford period.   Unconsciously, I was counting from the Morley-Minto period of 1906-1908 which was the constitutional precedent to Montagu-Chelmsford.)

Uttar Pradesh Polity and Finance

Uttar Pradesh Polity & Finance


A Responsible New Govt May Want To Declare A Financial Emergency

First published in

The Statesman Editorial Page, March 24 2007

by

Subroto Roy

 

 

Uttar Pradesh goes to the polls beginning April 7. Nothing may succeed better in focusing the minds of its citizens and political candidates than some hard macroeconomic realities. Discussing UP’s public finances may be the first step to bringing cool rationality to the cauldron of its politics ~ consisting as it does of seemingly deep and irreconcilable divisions of religion, caste and personality.

 

UP shared initials of the old British “United Provinces of Agra and Oudh”, and in 1947 was mostly the same territory. It deserves better than to be known merely as our “Northern State”: UP has been India’s fulcrum, deeply affecting our history, culture and politics. There could have been today not merely a new Uttarakhand but also perhaps Agra, Bareilly (Rohilkhand), Jhansi (Bundelkhand), Meerut, Avadh (Ayodhya, Oudh), Kanauj, Varanasi etc.

 

 

History and politics

 

Each has had its history. Oudh was seen by the British before Dalhousie as a northern buffer for their Bengal possessions. Bareilly was “an important centre of disaffection” of Muslim soldiers against the British in 1857 and also where Hindus after Aurangzeb’s death in 1707 had “thrown off the imperial yoke” refusing to pay tribute to Delhi. The very idea of “Pakistan” was mostly a UP-invention. Long before Iqbal and Jinnah, Sayyid Ahmad Barelvi (1786-1831) initiated a mass migration of Muslims and created a theocratic principality in the NWFP (Tariqah-i-Muhammadiyah) which collapsed due to conflict between his Pashtun and North Indian followers. Pervez Musharraf’s family were frankly nostalgic during their India-visit, and indeed Pakistan’s Mohajirs long for fertile UP more than the arid country they in fact possess ~ even more than for J&K on which Pakistanis since Liaquat (UP’s most prominent Muslim legislator between 1926-1940) became fixated instead.

 

 

In the 1980s and 1990s, the “Ram Janambhoomi/Babri Masjid” dispute may have been mostly a gigantic, inchoate, incoherent national exercise in defining our identity: “Who are we?” or perhaps “Who are we not?” as modern Indians, questions that remain unanswered. Certainly, in 1908 the Imperial Gazetteer of India Vol XIX pp 279-280 reported: “After Babar had gained a footing in Hindustan by his victory at Panipat in 1526, and had advanced to Agra, the defeated Afghan house of Lodhi still occupied the Central Doab, Oudh, and the eastern districts of the present United Provinces. In 1527, Babar, on his return from Central India, defeated his opponents in Southern Oudh near Kanauj, and passed on through the Province as far as Ajodhya where he built a mosque in 1528, on the site renowned as the birthplace of Rama. The Afghans remained in opposition after the death of Babar in 1530, but were defeated near Lucknow in the following year.”

 

 

History books and doctoral theses should have been perhaps where all such old facts deserved to remain in a modern self-confident, self-aware India.

 

 

Today’s UP at more than 166 million people exceeds in population France and Germany combined. One in every six or seven Indians is from UP. The State has become notorious for its chaotic politics, its “history-sheeters”, its corruption, crimes, badlands, astrology and other superstition. Its popular power gets divided between Mulayam, Mayawati and the BJP: each the self-appointed spokesman of Muslims, “Bahujans” and Hindu upper castes respectively. Congress, once India’s grand old secular national party, has been side-lined in UP politics.

 

 

Yet UP’s pivotal role remains such that the healthiest development for Indian democracy today may be for the Lok Sabha Member from Rae Bareilly to close down 10 Janpath as a residence and office for herself, and live instead as an exemplary parliamentarian among the common people of her constituency, setting the example too for her son to do the same in Amethi. Their permanent departure from New Delhi, becoming prominent UP politicians instead, would be the desperately needed “tough love” required by the Congress Party ~ which finally, after many decades, would be compelled to grow up and elect a leadership for itself based on some real political principles and not mere sycophancy.

 

 

Focussing on UP’s Public Finances is the first constructive step towards a rational political economy arising in the interests of its many citizens. As with other States of our Union, it is not impossible to understand what is going on with UP’s finances, though it does take some serious effort. The State receives tax revenues, income from State operations (like bus fares etc), and grants transferred from the Union. Of these revenues, more than 70% arise from taxation. Of those taxes, about 45% is collected by the Union on behalf of the State according to the Finance Commission’s formulae; 55% is collected by the State itself, and about 50% of what the State collects is Sales Tax. On the expenditure side, some 43% has been going to repay the State’s debts plus interest owed on that debt. The remainder gets distributed as summarily shown in the table.

 

 

Audit and restructuring

As with the Union of India, as well as with other States like West Bengal, the wide difference between income and expenditure implies the Government must then issue new public debt, which typically has been a larger and larger sum every year, greater than the maturing debt being amortised or extinguished. The grave consequences of this will be obvious to any householder, and makes it imperative that calm, sober thought and objective analysis occur about UP’s financial condition and budget constraint. E.g., what is revealed at a higher level of detail is that in 2003-2004, Rs. 5.43 Bn (Rs 543 crores) were spent to collect Rs. 1.18 Bn (Rs. 118 crores) of land revenue! UP has also spent extraordinarily vast public resources (and World Bank loans) on electricity ~ yet its power supply remains dismal.

 

 

These kinds of facts may be enough for any responsible new Government of UP (perhaps even a “Unity Government”) to declare a financial emergency under Article 360 of the Constitution, followed by ordering the most stringent of audits of all government departments and projects using public resources as well as recognition of public assets, followed in turn by a restructuring of the public budget over a few years with the aim of cutting all waste, fraud and abuse, and directing public resources instead to areas of highest social usefulness.

The author is Contributing Editor, The Statesman

UP Government Finance 2003-2004
EXPENDITURE ACTIVITIES : Rs Billion (Hundred Crore)
government & local government
judiciary
police (including vigilance etc)
prisons
bureaucracy
collecting land revenue & taxes
government employee pensions
schools, colleges, universities, institutes
health, nutrition & family welfare
water supply & sanitation
roads, bridges, transport etc.
electricity
irrigation, flood cntrl., environ, ecology
agricultural subsidies, rural development
industrial subsidies
capital city development
social security, SC, ST, OBC, lab.welfare
tourism
arts, archaeology, libraries, museums
miscellaneous
debt amortization & debt servicing
total expenditure

30.33
3.17
25.81
1.13
11.63
8.41
29.00
62.79
18.97
6.04
16.13
200.22
29.98
16.07
8.19
1.08
18.36
0.20
0.37
0.53
373.60

3.52%
0.37%
2.99%
0.13%
1.35%
0.98%
3.36%
7.28%
2.20%
0.70%
1.87%
23.23%
3.48%
1.86%
0.95%
0.13%
2.13%
0.02%
0.04%
0.06%
43.34%

tax revenue
operational income
grants from Union
loans recovered
total income
268.74
22.82
24.82
124.98
Govt. Borrowing Requirement:
(total expenditure minus total income) 420.67
financd by:
new public debt issued
use of Trust Funds etc.

385.41
35.26
420.67

From the author’s research based on latest available data published by the C&AG of India