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Sustaining Development

Perspectives on Indian Development Economy, Polity and Society

Essays in honour of Prof. B. Sarveswara Rao

Ed by R.V.R. Chandrasekhara Rao et al

Publishers: Sterling, New Delhi.

Price: Not Mentioned.

P. Jagadish Gandhi

ECONOMIC SCIENCE, as a subject of study, research and policy-orientation, has assumed a significant role in Indian colleges and universities in post-Independence era due to a band of dedicated campus trend-setters. The volume, Perspectives of Indian Deve lopment -- Economy, Polity and Society, in honour of Prof. B.S. Rao is a collection of invited articles from some of his former students and colleagues, friends and admirers.

The articles in this volume cover a wide area in economics and other social sciences, and partly reflect the professional interests and concerns of Prof. Rao. The major focus of the contributions is mostly on the theme of sustaining development in the In dian context in its various multidimensional aspects. The contributions are grouped into four sections macro-perspectives, poverty and inequalities, education, health and environment, and polity. The fifth section contains selected works of Prof. Rao.

K. Krishnamurty in his analysis found out that in is

tempting to infer that the new economic policy will necessarily lead to a dilution of the role of the State. However, in respect of creating critical physical and social infrastructure, at least in the short and medium term, public sector investments wil l continue to have an important role. Also, its role in influencing private sector decisions-both investors and consumers through appropriate policies will become more critical than before.

They have to be co-ordinated and integrated with

economy-wide behaviouristic models as well as satellite sub-models of industry, infrastructure (Social and physical), monetary exchange rate, fiscal and trade sectors. Having analysed the dynamics of Globalisation, Competition and Economic Stability V.R. Panchamukhi said that India is best suited to continue to be in the framework of mixed economy, in which the public sector, the private sector and the co-operative sector co-exist, as also in which the state planning and the market function in a framewor k of mutual harmony and concordance. The present exercise of privatising even the profit-making public sector is not warranted because privatisation is only a modality for improving the efficiency in resource use and resource allocation.

C.T. Kurien argues that market is certainly one of the most significant social institutions, but to ensure that it serves the social purposes it must be kept in check by other social processes instead of allowing it to reign supreme. To V.V. Ramanadhan, while the rationable of economic reforms, enterprise restructuring or privatisation has to be substantively correct, success depends, to no small extent, on the systemic change that accompanies such measures.

S. Ambirajan pleads for primacy to ethical considerations if man seeks to achieve civilised existence in the 21st century. The new approach emphasises the traditional wisdom made up of ethical teachings both from East and West, that unlimited hankering a fter material possessions would not lead to happiness and that self-control and limitation of desires, and sacrifice for the good of society should be. accepted as the goals of human conduct.

According to K.N. Kabra the question of regional imparities requires a thorough review as it encompasses a multitude of diverse variables, located in different paradigms and is not confined to anyone specific discipline. It is a really integrated social science question trying to acquire a grip over many physical factors, small decentralised communities, both traditional and new, and the processes unleashed by vanguard frontline technologies and activities based on them.

D. Narasimha Reddy opines regardless of macro-economic dynamics, cultural-institutional and geopolitical factors which by themselves are very important, the transition of small peasant farms into high productivity and high income households in wide-rangi ng circumstances, in only possible, invariably at the behest of dynamic involvement of the State.

Rather than categorising them on the basis of caste and religion, H.R. Machiraju advocates the poor have to be looked at as one constituency to channel the benefits of economic growth What is at stake is not merely the fate of economic reforms but the su rvival of a stable democratic political system. Other aspects of economic reforms which are likely to step up the overall rate of growth could naturally improve the economic environment for the poor. R. Radhakrishnan points out that economic growth, left to itself may not have dramatic impact on nutritional status in the near future, although it provides greater opportunities for public intervention. Effective and efficient food and environmental interventions are needed until the Poor are freed from fo od and nutritional insecurity. While

Sakuntala Narasimhan says that NGOs, bureaucrats, policy-makers and governmental machinery all working in co-ordination with the people's backing, that can deliver the goods in the context of poverty eradication. P.V. Sarma prescribes that the economies on the forefront of globalisation should pay more attention to provide social safety network through committed social expenditure in order to combat the evils of growing income inequalities, unemployment and poverty.

According to Jandhyala B.G. Tilak, the level of government expenditure on education is found to be strongly correlated with the level of education of the states. Hence there is a strong need for the states to substantially increase their spending on educ ation. Bias should be inbuilt in the mechanism of allocation of resources in favour of rural children and girls, as the crux of the problem lies with these groups. Suitable norms may be developed in such a way that a minimum proportion of the State and C entral budgets is allocated to education consistently.

B. Swarajyalakshmi feels that care in India is at the crossroads and this was largely because government investments in the health sector did not contribute to the development of the three tier system of primary, secondary and tertiary level. Reforms in the health sector however need to focus on community Participation and community involvement ultimately leading to community management of the facilities.

R.V.R. Chandresekhara Rao juxtapose the role of the Civil State as the upholder of the claims of aggressively individualised and segmented rights and that of the Civil Society as the harmoniser. Human rights activism is symptomatic of the strength of civ il society; whereas self-regarding values are pursued through legal instrumentalities, the co-operative spirit will have to be resourced from the well-springs of civil society. Prasanna Kumar thinks that return to the Gandhi-Nehru framework is the only w ay by which democracy in India can be put back on the rails. A civil society reconstructed to suit the Indian ethos and aspirations is the need of the hour.

According to G.R.S. Rao, the need of the hour is institutional attainment and that depends on three Cs-Role of Clarity, dispositions of Complementarity and Commitment. The higher the degree of these three Cs, the greater will be the efficacy and effectiv eness of the system.

Commending on the research programmes in academic campuses, Prof. B.Sarveswara Rao remarks that Action Research strengthens the institutions of participative democracy and cultural roots of development action at the local and micro levels. It provides an appropriate and rational basis for piecemeal social engineering. It provides also an eminently suitable basis for Gandhian type of reform and reconstruction of society.

This festschrift volume contains essays dealing with macro as well as micro dialects, dynamics and perspectives on Indian economic development. Analytical frameworks, empirical evidences and policy prescriptions of the contributors are resourceful to aca demics and researchers. A bibliographical data and an analysis of Prof. B.S. Rao's works would have enhanced the utility of the book.

The reviewer is Professor of Economics, Voorhees College, Vellore.