On a Liberal Party for India



First published in The Sunday Statesman October 22 2006, Editorial Page Special Article

Communists, socialists and fascists exist in the Left, Congress and BJP-RSS ~ but there is a conservative/”classical liberal” party missing in Indian democracy today

We in India have sorely needed for many years a serious “classical liberal” or “conservative” political party. Major democratic countries used to have such parties which paid lip-service at least to “classical liberal” principles. But the 2003 attack on Iraq caused Bush/McCain-Republicans to merge with Hilary-Democrats, and Blair-Labour with Tory neocons, all united in a cause of collective mendacity, self-delusion and jingoism over the so-called “war on terror”. The “classical liberal” or “libertarian” elements among the Republicans and Tories find themselves isolated today, just as do pacifist communitarian elements among the Democrats and Labour. There are no obvious international models that a new Indian Liberal Party could look at ~ any models that exist would be very hard to find, perhaps in New Zealand or somewhere in Canada or North Eastern Europe like Estonia. There have been notable individual Indian Liberals though whom it may be still possible to look to for some insight: Gokhale, Sapru, Rajagopalachari and Masani among politicians, Shenoy among economists, as well as many jurists in years and decades gone by.

What domestic political principles would a “classical liberal” or conservative party believe in and want to implement in India today? First of all, the “Rule of Law” and an “Efficient Judiciary”. Secondly, “Family Values” and “Freedom of Religious Belief”. Thirdly, “Limited Government” and a “Responsible Citizenry”. Fourthly, “Sound Money” and “Free Competitive Markets”. Fifthly, “Compassion” and a “Safety Net”. Sixthly, “Education and Health for All”. Seventhly, “Science, not Superstition”. There may be many more items but this in itself would be quite a full agenda for a new Liberal Party to define for India’s electorate of more than a half billion voters, and then win enough of a Parliamentary majority to govern with at the Union-level, besides our more than two dozen States.

The practical policies entailed by these sorts of political slogans would involve first and foremost cleaning up the budgets and accounts of every single governmental entity in the country, namely, the Union, every State, every district and municipality, every publicly funded entity or organisation. Secondly, improving public decision-making capacity so that once budgets and accounts recover from having been gravely sick for decades, there are functioning institutions for their proper future management. Thirdly, resolving J&K in the most lawful and just manner as well as military problems with Pakistan in as practical and efficacious a way as possible today. This is necessary if military budgets are ever going to be drawn down to peacetime levels from levels they have been at ever since the Second World War. How to resolve J&K justly and lawfully has been described in these pages before (The Statesman, “Solving Kashmir” 1-3 December 2005, “Law, Justice and J&K”, 2-3 July 2006).

Cleaning up public budgets and accounts would pari passu stop corruption in its tracks, as well as release resources for valuable public goods and services. A beginning may be made by, for example, tripling the resources every year for three years that are allocated to the Judiciary, School Education and Basic Health, subject to tight systems of performance-audit. Institutions for improved political and administrative decision-making are necessary throughout the country if public preferences with respect to raising and allocating common resources are to be elicited and then translated into actual delivery of public goods and services.

This means inter alia that our often dysfunctional Parliament and State Legislatures have to be inspired by political statesmen (if any such may be found to be encouraged or engendered) to do at least a little of what they have been supposed to be doing. If the Legislative Branch and the Executive it elects are to lead this country, performance-audit will have to begin with them.

The result of healthy public budgets and accounts, and an economy with functioning public goods and services, would be a macroeconomic condition for the paper-rupee to once more become a money that is as good as gold, namely, a convertible world currency again after having suffered sixty years of abuse via endless deficit finance at the hands of first the British and then numerous Governments of free India that have followed.

It may be noticed the domestic aspects of such an agenda oppose almost everything the present Sonia-Manmohan Congress and Jyoti Basu “Left” stand for — whose “politically correct” thoughts and deeds have ruined India’s money and public budgets, bloated India’s Government especially the bureaucracy and the military, starved the Judiciary and damaged the Rule of Law, and gone about overturning Family Values. While there has been endless talk from them about being “pro-poor”, the actual results of their politicization of India’s economy are available to be seen with the naked eye everywhere.

One hundred years from now if our souls returned to visit the areas known today as India, Pakistan, Bangladesh etc, we may well find 500+ million inhabitants still below the same poverty-line despite all the gaseous prime ministerial or governmental rhetoric today and projections about alleged growth-rates.

If the Congress and “Left” must oppose any real “classical liberal” or conservative agenda, we may ask if the BJP-RSS could be conceivably for it. The answer is clearly not. The BJP-RSS may pontificate much about being patriotic to the motherland and about past real or imagined glories of Indian culture and religion, but that hardly ever has translated concretely into anything besides anti-Muslim or anti-Christian rhetoric, or breeding superstitions like astrology even at supposedly top technological institutes in the country. (Why all astrology is humbug, and a pre-Copernican Western import at that, is because all horoscopes assume the Sun rotates around the Earth in a geocentric solar system; the modern West’s scientific outlook arose only after astrology had declined there thanks to Copernicus and Galileo establishing the solar system as heliocentric.)

As for a “classical liberal” economic agenda, the BJP in Government transpired to be as bad if not worse than their adversaries in fiscal and monetary profligacy, except they flattered and were flattered by the organised capital of the big business lobbies whereas their adversaries flatter and are flattered by the organised power of the big labour unions (covering a tiny privileged class among India’s massive workforce). Neither has had the slightest interest in the anonymous powerless individual Indian citizen or household. The BJP in Opposition, instead of seeking to train and educate a new modern principled conservative leadership, appear to wish to regress even further back towards their very own brand of coarse fascism. “Family Values” are why Indian school-children have become the envy of the world in their keen discipline and anxiety to learn – yet even there the BJP had nothing to say on Sonia Gandhi’s pet bill on women’s property rights, whose inevitable result will be further conflict between daughters and daughters-in-law of normal Indian families.

At the root of the malaise of our political parties may be the fact we have never had any kind of grassroots “orange” revolution. There has been also an underlying national anxiety of disintegration and disorder from which the idea of a “strong Centre” follows, which has effectively meant a Delhi bloated with power and swimming in self-delusion. The BJP and Left are prisoners of their geriatric leaderships and rather unpleasant ideologies and interest-groups, while the Congress has failed to invent or adopt any ideology besides sycophancy. Let it be remembered Sonia Gandhi had been genuinely disdainful of the idea of leading that party at Rajiv’s death; today she has allowed herself to become its necessary glue. The most salubrious thing she could do for the party (and hence for India) is to do a Michael Howard: namely, preside over a genuine leadership contest between a half-dozen ambitious people, and then withdraw with her family permanently from India’s politics, focusing instead on the legacy of her late husband. Without that happening, the Congress cannot be made a healthy political entity, and hence the other parties have no role-model to imitate. Meanwhile, a liberal political party, which necessarily would be non-geriatric and non-sycophantic, is still missing in India.


“Freedom, Reason & Wealth in India & the West”: A course I designed but am yet to teach

Preface June 28 2009:  Sometime in the last decade (probably about 2001 or 2002),while a “full professor” at an “institution of national importance”,   I was invited by a purported  liberal/libertarian group in New Delhi to write a course I might like to teach in an academic but non-institutional setting.   From my files today it would seem that I penned the following lines and sent it to them — no further reply was received and it would not surprise me in the slightest if my ideas were simply stolen and used without acknowledgement by some or other nefarious character keen to spend some foreign donor’s funds.  I have had a lot of things stolen over the years by a lot of nefarious characters,   emerging mostly out of  New Delhi,  intellectual property only being one such  class.   (A notorious example was back in 1981-1982 when  a person who had been sent my Cambridge doctoral thesis to read  anonymously by a prominent British press, decided to alter his professional life based upon what he  read; an even earlier example was when I was a visiting assistant professor in Delhi and yet to finish my doctoral thesis — a colleague  who had been asked by me to read  a chapter of  my work  on “dual economies” and comment on it, instead copied it and built a career  thereupon!)   A full and proper inventory  of all this has yet to be made; in the meantime, here is the course I might have taught but never did, which may still be usefully read and made practical subject to the normal “fair use” rule that governs this site.   I have taught so many academic courses at different universites over 30 years that I am quite happy to  gradually release them all publicly as time permits.  In this particular case, any close student of my published writings may easily surmise  perhaps the  contents of  several of the putative lectures, especially 9-13.

“Freedom, Reason & Wealth in India and the West

The aim of this course will be to introduce Indian teachers (perhaps high school teachers, perhaps college teachers, perhaps a mix of both) and/or perhaps young(under 40) Indian legislators (members of provincial legislatures or parliament) to some of the major landmarks of the best of Western classical liberal thought in economics and political philosophy, and to re-examine Indian economic and political experience in its light. India, though rich in religious traditions, has not herself had notably strong traditions in economics or political philosophy. It is expected the course will be one-semester long, and consist of about 14 sessions of perhaps three hours each. If circumstances do not permit this, a course for 7 or 14 days may be planned as an alternative, with greater preparation expected of the participants….. The model for the course may be…(liberal/libertarian)…  seminars attended at Oxford, England (1980); Blacksburg, Virginia (1981); Menlo Park, California (1983).

The proposed sessions are as follows:

01. Ancient Indians & Ancient Greeks: Differences in the Quest?

02. Freedom and Intolerance in India’s Religions

03. Western Renaissance and Enlightenment during India’s Dark Ages: from scholasticism to mercantilism to the physiocrats and Adam Smith, to JS Mill to Alfred Marshall, Wicksell and Von Mises

04. Western political freedom in India’s Enlightenment and Nationalist Movement, 1835-1947

05. Western socialism and communism and their impact on Indian Nationalism in the 20th Century

06. Socialist Economics in Practice in India: Did Economic Inequality Decrease?

07. Liberal Dissenters in India: Rajagopalachari, Shenoy, Masani, the Forum of Free Enterprise

08. The Resurgence of Western Classical Liberalism after World War II: Hayek, Friedman, Buchanan

09. The Origins of the 1991 Economic Liberalization in India

10. Successes and Failures in the Transition Towards a Liberal Society in India, 1991-2001

11. The Corrosive Effect of Corruption in Modern India: is Government too Weak or too Strong or both?

12. Fiscal and Monetary Problems in Modern India: the Monetisation of Inefficient Government Spending

13. Towards Liberal Solutions to the Conflict between India and Pakistan: the Problem of Jammu & Kashmir

14. Freedom, Reason and Wealth in India and the West: Overview and Conclusions

Tentative Reading List: To be sent tomorrow”