Liberalism-Still India's Salvation

The world economy is in shambles. This has prompted many to declare that this crisis marks the end of capitalism. What does this mean for India, where liberalism has been in practice since 1991? I am no economist, nor do I claim to be an expert on the subject. My understanding is based on common sense, on statistics and the experience of a 21 year old that has had the fortune to be raised in a middle class household. It cannot be denied that the middle class has been the biggest beneficiary of the post-1991 policies, for could a family like mine own a car, a house of our own and live in comfort if change had not been brought about? My story is similar to those of thousands of Indians, many of those studying in the best schools and colleges in the country. We are not elitist; we are just making the best use of the opportunities available to us.



However, I see the pain of the less fortunate everyday, and it makes my heart bleed. There are many who say liberalization has failed. Many who say the benefits have not reached the neediest. Just as this cannot be denied, a system which brought about 3 percent growth at an average cannot be seen as a substitute. Socialism is hypocrisy. We have practiced socialism for more than 40 years. What did we have to show for it? A nation that begged the international community for money? A nation, whose best sons and daughters left its shores disillusioned, convinced that their talents would forever go waste if they remained in the land of their birth? If India is respected, even feared by some, it is due to the massive progress we have made in the last 17 years. Otherwise, we would have forever remained a land of elephants and snake charmers in the eyes of the world. However, amidst all of the euphoria, we must not forget the story of the farmer who commits suicide because he cannot pay his loans; of the child who leaves school as his parents cannot afford the cost of his or her education. This presents an opportunity, for a system that worked for the 300 million bourgeoisie Indians can surely produce the same results for the millions in our villages.



Yet, liberal economics in itself is not a solution. No single ideology can claim to the only solution to all our economic woes. We will need to be flexible as rigidity will get us nowhere. We cannot remain prey to the insecurity that suggests that we need to protected, nor should we remain apathetic to the woes of the common Indian tilling his land everyday, hoping for a better tomorrow. The votaries of the old order say that the present crisis in the world and sectors of our economy is proof that our economic policies have failed. Common sense dictates that every ideology has its faults; what should be determined is whether the good outweighs the bad, and one must strive for improving upon the good and eradicating the bad. This is what these people fail to grasp. The crisis is not an excuse to fall back to the old incompetence; it offers us opportunity to identify the mistakes that have been made and improve on it. Competition offers a scope for improvement, not the “curbing of autonomous development” as many so called experts have so colourfully declared. If I am exposed to highly skilled people, I will only improve. This is not esoteric, expert mumbo-jumbo; it is plain common sense.



To be honest, I do not understand half of what experts talk about these days. But I am convinced that often the simple route is the best. All our problems have one simple solution, common sense. And common sense tells me that in every crisis lies an opportunity, because crises do not arise unless there is something wrong. This may be an absence or regulation or a case of too much government intervention. I am convinced that the policies we follow will take us to the development and self sufficiency we seek. Yes, there will be hiccups, but these will only mean that we need to improve on the foundation. The tallest tower in the world cannot be built without the strongest foundation. Similarly, the policies we follow today will lead to India being one of the biggest economies in the world. Would this be possible if we had allowed the old order to continue? The most obvious answer is no.