A Comment on Prof. Kiritdev Desai's note "The Present Crisis - A Way Out?"

Summary

M. R. Masani responds to Prof. Kiritdev Desai’s diagnosis of India’s political and economic crisis by agreeing that the country can still avoid disaster but arguing that Desai’s proposed methods lack realism. Masani locates the crisis primarily in the economic consequences of the post-independence “socialist pattern,” especially the Second Five Year Plan, state control, inflationary policy, and the concentration of political and economic power. He argues that political and moral decay cannot be separated from economic policy and calls for a decisive reversal toward economic discipline, competitive markets, reduced government expenditure and taxation, liberalised controls, and restored individual freedom.

Masani is sceptical that existing political parties can deliver such a transformation and warns that India may face a turbulent or even cataclysmic change of regime. He distinguishes forecasting such an outcome from advocating it, while making clear that his positive programme is democratic education: citizens should learn to identify the country’s institutional and economic ills and recover the constitutional path toward a free society. The appended discussion conclusions from the May 1974 Poona meeting broaden this programme into proposals for decentralisation, electoral and federal reform, restoration of fundamental rights, press freedom, social welfare, voluntary civic organisation, and coordinated public education. The summary covers the complete seven-page file, including the appended conclusions; the document’s publication year and publisher are not printed.

Key points

• Masani agrees that India faces a serious crisis but disputes the realism of the proposed remedies.
• He attributes political and moral deterioration to statist economic policies and the socialist pattern adopted after independence.
• The recommended economic programme includes lower expenditure and taxation, an end to deficit finance, decontrol, foreign-exchange liberalisation, competitive markets, and revised development priorities.
• Masani argues that democracy and socialism of the statist-capitalist type cannot coexist indefinitely.
• He doubts that existing political parties possess the vision or altruism needed to lead a reforming government.
• The proposed democratic response combines constitutional liberties, electoral and federal reform, decentralisation, press freedom, and civic education.
• The appended conclusions call for coordinated action by democratic parties, professional and voluntary groups, citizens’ councils, the press, and other media.