|Dear Sri Reddy,
The problems arising in the wake of SEZ are basically due to our
discarding the Nehruvian model of growth. This model was the result of the
thinking on socio-economic problems, developed during the freedom
struggle. This model did not give prime importance to profitability. It
stressed that the country should go about tackling the problems of social
and economic development in a planned way so that regional imbalances and
socio-economic inequalities are removed as quickly as possible so that
forces of national integration and unity are strengthened. This model
assumed that the development will take place, basically, on the basis of
domestic resources, manpower and domestic market.The role of the state was
to be of the prime mover and regulator.
This model faced stiff opposition from several quarters. Among the
political parties here Bhartiya Jan Sangh and Swatantra Party campaigned
against it. Pressures were exerted by Western countries like USA,
institutions like World Bank and IMF and Forum of Free Enterprise.
Consequently, it was gradually watered down and, ultimately, given up when
Narasimha Rao government came to power. Now, the approach to development
is based on the ten points of the Washington Consensus. Without going into
details, we can say that regional imbalances and inequalities in the
society are bound to increase. We have been witnessing the phenomenon of
jobless growth of 8 per or above. Whatever wealth is created is cornered
largely by a small section of the society. Trickle down has failed to give
an adequate share in the fruits to people at lower rungs. Consequently, we
are witnessing all sorts of social tensions and conflicts. The pattern of
production is not oriented towards satisfying the needs of the masses but
of the rich.
The motto now is growth by hook or by crook. Capital whether foreign or
indigenous must be attracted no matter what it is going to cost in human
sufferings and environmental damage.
Instead of going about the problem of growth in a piecemeal manner, we
have to tackle it in totality.
The paucity of space does not allow me to go in details.
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