Communism’s Long Shadow Over India The Bolshevik revolution helped disfigure the country’s economic imagination.By Sadanand Dhume
https://www.wsj.com/articles/communisms-long-shadow-over-india-1510871365?mod=nwsrl_review_outlook_u_s_&cx_refModule=nwsrl#cx_testId=16&cx_testVariant=ctrl&cx_artPos=9
As the world marks the centenary of the Bolshevik Revolution in Russia, our attention has naturally turned to how communism ravaged the former Soviet Union and its Eastern European vassals. But the ideology also cast a shadow outside the communist world. In terms of the sheer number of people affected, India suffered more than any noncommunist country. Overcoming this poisonous legacy remains a work in progress.
Of course, democratic India witnessed no Soviet-style show trials or gulags. There is no modern Indian equivalent of China’s brutal Cultural Revolution or Great Leap Forward. Nothing in independent India’s experience approaches the horrors of the Khmer Rouge in Cambodia.
But though India may have been spared the worst of communist excesses, it nonetheless paid a price for the ideology’s rise to global prominence. Simply put, communism helped disfigure India’s economic imagination. If India still houses 268 million people who earn less than $1.90 a day—the World Bank’s official estimate for poverty—at least part of the blame belongs to politicians besotted by the Soviet experiment before it finally collapsed.
Lenin’s revolution had an impact on India even before its independence from Britain in 1947. Twenty years earlier, Jawaharlal Nehru, at the time an up-and-coming leader in the Congress Party, visited Moscow for the 10th anniversary of the revolution. He later wrote: “I had no doubt that the Soviet Revolution had advanced human society by a great leap and had lit a bright flame that could not be smothered.”
Though himself a Fabian socialist, a worldview he picked up as a student in Britain, Nehru freely acknowledged the impact of communism on his economic thinking. After independence, with Nehru at the helm, India enthusiastically embraced state planning. As the theory went, high-minded bureaucrats would make better economic decisions than grubby entrepreneurs.
Nehru decreed that lavishly funded state-owned companies would control “the commanding heights” of India’s economy. The phrase itself was borrowed from Lenin. In 1955 the ruling Congress Party declared its intent to establish “a socialistic pattern of society” in India.
Nehru’s fans point out that planning was all the rage in the 1950s. Communists were hardly the only ones enamored by it. This is true, but it glosses over prescient early critiques of India’s statist path by the University of Chicago’s Milton Friedman and the Indian free market economist B.R. Shenoy.
Over the first three decades of independence, Nehru, followed by his daughter Indira Gandhi, built one of the most dirigiste economies outside the communist world. Between them they nationalized aviation (1953), life insurance (1956), banks (1969) and coal mines (1973). CONTINUE AT SITE
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