Right Word | Hindu Economics: ‘Third Way’ is only way to permanently avert global economic crisis

As the threat of another global recession looms large over the world economy, the crisis of capitalism has again come back to haunt us. With Marxist or communist economic models already dead in the post-Soviet era, the world economy, driven by the capitalist models, has been repeatedly rocked by one or the other economic crisis at regular intervals. This implores us to think about an alternative economic model that can go beyond communism and capitalism to provide sustainable economic growth and development to all the countries in the world. The world may find the answer in ‘Hindu Economics’ or what might be alternatively called the ‘Third Way’. The term ‘Third Way’ was coined by Dattopant Thengadi while the most authoritative treatise on ‘Hindu Economics’ has been propounded in recent times by Dr MG Bokare. The West-educated economists, even within the Indian policy framework, have ensured that the works of Thengadi and Bokare didn’t get recognition as well as the attention of the policy makers that they deserved. Thengadi and Bokare: Opposites meet But first about an interesting story where two ideologues who stood on the opposite poles of the spectrum came together giving one of the biggest blows to the lobby of Marxist economists. Thengadi was an ideologue of the Rashtriya Swayamsevak Sangh (RSS) and founder of organisations like Bharatiya Mazdoor Sangh (BMS), Bharatiya Kisan Sangh (BKS) and Swadeshi Jagaran Manch (SJM). Bokare, a former vice-chancellor of Nagpur university, was a Marxist economist and a frontline ideologue of the Left parties in India. Both of them were friends. Thengadi motivated Bokare to read ancient Bharatiya scriptures to check out whether there were any traces of a sound economic thought in them. Bokare read the original Sanskrit texts and the outcome was his phenomenal work Hindu Economics (First edition: 1993). In this process, this Marxist ideologue moved to the other end of the ideological spectrum and became a nationalist as well as life-long votary of ‘Hindu Economics’. Bokare wrote in the preface to the first edition of his book, “During the prolonged discussions in this domain of studies with Shri DB Thengadi, he impelled me to think: What is the economics of the future? I went on exploring a theory in Indian literature. Ultimately, it is discovered in holy Vedas, and Vedic literature.” Bokare says that the ‘Hindu Economics’ needs to be considered as an independent school of economics just as we consider Marxian and Keynesian economics. Thengadi who wrote a detailed introduction for Bokare’s ‘Hindu Economics’ candidly observed, “Dr Bokare had been a confirmed Marxist for decades. In his enthusiasm for party propaganda, he often converted his class-room into the recruiting ground for Communist Party. As a learned professor of economics, he was simultaneously an authority on classical economics and neo-classical economics… His resolve to undertake the unfoldment of ‘Hindu Economics’ as his life mission has been the culmination, the mature fruit of his life-long penances as a scientific thinker… He (Dr Bokare) is convinced that Hindu Economics consummates all that is noble in Quran, Bible and Gandhian economics. In 1984, he had predicted the collapse of communism; in 1992 he declared that ‘Hindu Economics’ is economics of the future.” ‘Third Way’: The framework of ‘Hindu Economics’ Thengadi outlined the framework of ‘Hindu Economics’ in ‘Third Way’ (Sahitya Sindhu Prakashan) and how it is fundamentally different from the Western framework of economics, “In the materialist West, it was believed that matter is basic and mind is only a superstructure on it. Consequently, socio-economic order was basic. Once an appropriate order is established corresponding psychological changes in the popular mind would follow automatically. That this belief was not correct has been proved now beyond doubt.” In the ‘Hindu Economics’, it is Dharma that plays the central role. Dharma shouldn’t be equated with religion here, it is a set of unchanging universal laws. The laws are eternal, the order is transient, according to Hindu economics. Defining the proposed new global order according to Hindu Economics, Thengadi says, “Dharma envisages autonomy of each human group to seek its social-fulfilment through its own unique paradigm, and psychological integration of all such groups in a common framework of harmonious and mutually complementary interrelationships of One World -Vasudhaiv Kutumbakam- each group enriching the common, human understanding by making its own characteristic contribution to the collective wisdom of humanity.” Bokare’s ‘Hindu Economics’ Bokare’s ‘Hindu Economics’ is not an ideological rant, it is a book of pure economics and it uses the western tools to test the economic theories given in ancient Bharatiya texts. He breaks the myth that there was no distinct economic thought in our scriptures. Bokare successfully uses evidence-based western tools to test the economic theories of ‘Hindu Economics’ and their application to resolve the real-world challenges that we are facing today. Every single dilemma faced by the Western Economic models has been successfully resolved by Bokare through tools and theories of ‘Hindu Economics’ elaborated and explained in our ancient texts. Giving an overview of how this was done, Bokare explains, “Holy Vedas have clear references of market, supply and demand, price, trade, interest and profit, and tax. By interpolation we can deduce lease-rent and wages also for people without property for income. Mercantile laws governing the economy are codified.” “The history of economic thoughts flows from holy Vedas to Mahabharata, especially Shanti-Parva and Vidura-Niti. Then follow the Smrutis of Yajnavalkya, Gautama, Manu, Shukracharya, Kautilya, etc. Smrutis are codifications of economic activities with some measures of quantifications of the variables. Cost of production, market price, percentage of profit, percentage of tax, wage-rates, interest-rates etc. are stated in the codified Smrutis. Competition and monopoly are clearly identified. Foreign trade has been explained. The codification in Smrutis is the last phase. Kautilya’s Arthashastra is the last book on economics in ancient India.” Modi government and ‘Hindu Economics’ in action The major focus of the Modi government on ‘Aatmanirbhar Bharat’ and especially self-employment is a positive reflection of ‘Hindu Economics’ in action. It is likely to help Bharat override the forthcoming global economic crisis with relatively less damage while the rest of the countries might suffer as they continue to cling to a faulty capitalist system. As Bokare explained from the perspective of ‘Hindu Economics’, “The farce of capitalist economics lies in the total retreat. The classical economists justified the capitalist system. But it was argued that the state should not interfere in its economic development. After 100 years, the capitalist system is asking for more and more intervention from the state. Despite these interventions to help the capitalist economy, its destabilisation is ordained. Capitalist system will disappear in the course of time. All wageworkers then will be fully metamorphosed. They have to join their brethren who had already engaged themselves in self-employment to earn income.” “All will have to seek their living by earning incomes in the process of self-employment. This is the conclusion of the theory. Hindu-economics has a theory of inevitability of self-employment after the disappearance of capitalism. The knowledge of this phenomenology helps the rulers of Hindu economy to engineer a programme to give shape to enterprises for self-employment. The state organised the funds to give loans to the self-employed people.” “All people, therefore, become proprietors-owners and earn incomes. The society will not find proletariat in the economy. If there is no proletariat, there cannot exist a capitalist system. An economy without proletariat is free from exploitation. It consummates its ethos of socialism. Thus, theory and programme engender a decentralised economy. The theory is universally valid. Hindu-economics in this sense is for mankind.” Conclusion It isn’t that Thengadi or Bokare were the only ones that have talked about ‘Hindu Economics’ as an independent school of economics. A number of scholars have worked on various aspects of ‘Hindu Economics’ but unfortunately, they were deliberately not recognised by the economists following Marxism as well as those who couldn’t see beyond the western capitalist framework. Some of the important texts in this context may be mentioned shere for the benefit of those readers who would like to delve deeper into the realm of ‘Hindu Economics: Ancient Foundations of Economics in India’ by KT Shah, Aspects of Ancient Economic Thought by KV Ramaswami Iyengar, Hindu Revenue System by UN Ghoshal, Indian Thought Through Ages by KG Gokhale, Hindu Civilization by KM Munshi and RR Diwakar and State and Government in Ancient India by RS Atlekar. The works of AN Bose, SK Maity and SK Maitra also throw considerable light on ‘Hindu Economics’. The intellectual arrogance and the repulsion of establishments, academia and the intelligentsia for everything related to Hindu ethos, culture and ancient Bharatiya scriptures didn’t allow ‘Hindu Economics’ to be established as an independent school of thought even within Bharat over the last 200 years and especially during post-independence era. But now it’s time has come. There is no other way than to go for the ‘Third Way’ and follow the principles of ‘Hindu Economics’ if we want a stable global order that is based on sustainable co-existence and not exploitation. The writer, an author and columnist, has written several books. He tweets @ArunAnandLive. Views expressed are personal. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.