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PERSPECTIVE

A Left Approach to Development government to claim that “India was shin-


ing”, hunger and absolute poverty, which
is defined on the basis of a calorie norm,
was getting sharply accentuated in the
Prabhat Patnaik country. Between 1993-94 and 2004-05,
the proportion of the rural population
Against the “means-based 1 having less than 2,400 calories per person

T
approach” to development that he term “development” has almost per day (which is the definition of “rural
become synonymous with the poverty” in India) increased from 74.5% to
the bourgeoisie projects, the left
achievement of a high rate of growth 87% (U Patnaik 2007). Likewise the pro-
must project a “rights-based of the gross domestic product (GDP). It portion of the urban population with less
approach”. Since “rights” are used to be claimed at one time that the than 2,100 calories per person per day
guarantors of welfare gains, every benefits of a rapid expansion of GDP would (which is the definition of “urban poverty”)
automatically “trickle down” to the poor, increased over this period from 57 to 64%
winning of rights likewise
so that a high growth rate of GDP could (U Patnaik 2010).
strengthens them. The acquisition very legitimately be looked upon as the Similarly among states, which, under
of rights on the part of the people, summum bonum of the development ef- the influence of the centrally-sponsored
including rights to minimum fort. This claim however has been so obvi- “means-based approach” to development,
ously discredited that few would make it have been vying with one another to
bundles of goods, services and
now. The argument that has replaced it a­t tract investments to their territories,
security, amounts therefore to states that even if there is no automatic Gujarat has been among the more suc-
winning crucial battles in the “trickle down”, a larger GDP enables the cessful ones, so much so that its chief
class war for the transcendence State to garner larger resources through minister is projected by his party as to-
taxation, and hence to spend more for the day’s “development icon”. Indeed in terms
of capitalism.
benefit of the poor. A larger GDP, and of output growth rate Gujarat has been
If the left were to put on its hence by inference a high rate of growth marginally ahead of the national average.
agenda a struggle for people’s of GDP, is therefore, according to this ar- But during the same period 1993-94 to
rights and adopt a rights-based gument, a necessary condition for “deve­ 2004-05, G­ujarat not only has had a con-
lopment”, though not a sufficient one as sistently higher ratio of rural poverty
approach to development as
believed earlier. (defined as above) than India as a whole,
opposed to the means-based This argument, articulated for instance but actually experienced, like India as a
approach of the bourgeois in the Planning Commission’s Approach whole, an i­ncrease in this ratio. An accel-
formations, it would not Paper to the Eleventh Five-Year Plan, comes eration in GDP growth rate, experience
to the same conclusion as the earlier one, shows, has thus been accompanied in
constitute a retreat into abstract
namely that a high growth rate of GDP is reality by an i­ncrease in the incidence of
humanism but would the summum bonum of “development”, a­bsolute poverty.
be an integral part of the but it avoids intellectually untenable and This is not surprising. The acceleration
dialectics of subversion of the morally questionable concepts like “trickle in growth rate is typically accompanied by
down”. This entire approach will be re- a process of primitive accumulation of
logic of capital.
ferred to below as the “means-based ap- capital, entailing an expropriation of petty
proach” to development, since it believes producers from their meagre means of
that the essence of the problem of devel- production; but it does not create an ade-
opment consists in simply expanding the quate number of jobs where the expropri-
sum total of the available means of pro- ated could be absorbed as proletarians.
duction and consumption. The expropriated therefore linger on in
The “means-based approach” however even more miserable conditions of exist-
is untenable in all its incarnations, includ- ence than before, are pushed into even
ing the one that promotes it on the ground greater levels of distress than before, as
This paper owes much to discussions with that it is essential if the State is to do “good the consequence of accelerating growth
Akeel Bilgrami and Rajendra Prasad. things”. This is so well-established empiri- rates. And given this expanding ocean of
Prabhat Patnaik (prabhatptnk@yahoo.co.in) cally that one hardly needs to labour the distress within which the “modern sector”
is at the Centre for Economic Studies and point. During the period when India’s of the economy, which happens to be the
Planning, Jawaharlal Nehru University, growth rate was accelerating, prompting location of the accelerating growth, is
New Delhi.
the National Democratic Alliance (NDA) situated, the workers employed within
Economic & Political Weekly  EPW   july 24, 2010  vol xlv no 30 33
PERSPECTIVE

this sector too find their wage rates tied to case) larger holdings of foreign exchange trajectory but a left alternative to the
some subsistence level at best. A pheno­ reserves financed through current account c­urrent growth trajectory. If the current
menal increase in the share of surplus surpluses on the balance of payments. growth trajectory is archetypally a bour-
value becomes the inevitable outcome of This is the archetype of bourgeois deve­ geois growth trajectory, then the left
this process of accelerating growth. lopment, where production, if not strictly must not only oppose it as part of its
The hope that a part of this surplus value “for production’s sake” a la Tugan-­ g­eneral oppositional role in a bourgeois
can be taxed away by the government to be Baranovsky, is for enhancing the con- s­ociety, but also, wherever it happens
spent upon the welfare of the poor, never sumption of the capitalists and their to form state governments, attempt an
gets realised. Since a condition for this “hangers on” (or what Peter Struve had a­lternative trajectory, subject to all
high growth rate is the offer of enticements called the “third persons”), and meeting the limitations it faces. And for doing
to capitalists to undertake investment, for the infrastructural needs of such con- so, it must have a clear conception of
which the state governments are made to sumption, but not for raising the consump- this a­lternative.
vie with one another, to believe that these tion of the working people.1
very capitalists will be taxed off their sur- The sustainability of such high growth 2
plus value is naïve. To take the case of Gu- is problematical in any case. The “propen- Such a conception does exist and has
jarat again, its so-called “success” is found- sity to consume” by the capitalists and existed for long. Land reforms, the pro-
ed upon the incentives, both in terms of their “hangers on” is likely to decline in tection and promotion of peasant agricul-
subsidies and in terms of workers’ “disci- the absence of continuous product innova- ture within a more egalitarian agrarian
pline” and lack of rights, that the state gov- tions in the luxury consumption sector in economy, the protection and promotion
ernment provides to the capita­lists. To per- the metropolis, from where typically such of petty production against the onslaught
suade the Tatas to shift their Nano plant innovations are transplanted to the Third of corporate capitalism, the formation
from West Bengal to Gujarat for instance, World. The investment required for new and cementing of a worker-peasant alli-
the Gujarat government, according to a re- infrastructure needs, associated with the ance on the basis of such an alternative
port in The Hindu, provided pecuniary con- structural change in the economy that development strategy, the strengthening
cessions worth Rs 31,000 crore. A govern- n­eoliberalism brings about, tends typical- of petty production, including of peasant
ment that offers concessions on this scale ly to be bunched in the beginning; after agriculture, through cooperatives and
can hardly have much resources left for the initial period the investment require- voluntarily-formed collectives, the tech-
welfare expenditure for the poor. ment tends to flatten out, as had happened nological upgradation of petty produc-
in the colonial period when the infrastruc- tion under the aegis of such collective
Flawed Approach ture requirement for the structural change forms, industrialisation based primarily
The State under neoliberalism in other of that time, in the form of ports and rail- upon the home market that expands
words actively promotes an increase in the ways, had flattened out after an initial through such measures, the activation of
share of surplus value in the hands of burst. True, the prevalence of low sub­ the public sector as the leading agent of
d­omestic and foreign corporates as an es- sistence wages encourages exports which the industrialisation drive and as a coun-
sential component of its so-called “devel- can compensate to an extent for the decline tervailing force to private corporate ag-
opment strategy”. It can hardly be expect- in demand arising from the “flattening grandisement, a degree of planning of
ed to do the very opposite, and nullify out” of other expenditure items referred technological change to ensure the rapid
such an increase through fiscal means, as to above. But such exports which cause elimination of unemployment (as had
a part of the same “development strategy”! unemployment in the metropolis also happened in the Soviet U­nion), and a
The “means-based approach to develop- have strict limits even in the absence of massive spate of welfare measures to
ment” therefore turns out to be a flawed any world capitalist crisis (apart from the improve the quality of life of the working
one, even in its most benign version, as a fact that several third world economies people – all these constitute some of the
way of achieving development, in the compete fiercely among themselves for ingredients of such an alternative devel-
sense of an improvement in the living con- such export markets). In short, even if the opment strategy that has been in vogue in
ditions of the people at large. world capitalist crisis was absent, the left circles for long.
It escalates the share of surplus value in high GDP growth that countries like India They are relevant in the context when
output, even while accelerating the growth have been experiencing is likely to have the left acquires state power; but they must
rate of output; and this surplus value is been unsustainable. In the context of the also inform the development strategy of
r­ealised through larger investment (which crisis, this is especially so, particularly state governments led by the left. Such
underlies growth escalation), larger luxury since the current crisis is likely to be a governments of course may have to invite
consumption by the capitalists and their protracted one. Indeed what we have to- private capitalists to set up projects in the
“dependents” (including the “professional day is not just a crisis of capitalism but an state; but they must have a “reservation
classes”), larger “non-welfare” expendi- impasse for the system which is not easy price”, a level of concessions which they
ture by the State including consumption to overcome. will not exceed in entertaining private
by the upper salariat (and defence-related But my objective here is to discuss not project proposals. Such a threshold will
expenditures), and (though not in India’s the sustainability of the current growth have meaning insofar as alternatives such
34 july 24, 2010  vol xlv no 30  EPW   Economic & Political Weekly
PERSPECTIVE

as public and cooperative sectors are the RTI Act, being now succeeded by the rates to record historical lows. And yet
available for taking up projects. Right to Education Bill that has already they never enacted legislation to trans-
been passed by Parliament, a Right to form these achievements into rights of the
Alternative Strategy Health Bill that is waiting in the wings, working people. The bourgeois state in
Such an alternative strategy may not and a Right to Food Bill that is being final- other words, no matter what stupendous
achieve growth rates as high as the bour- ised? Does the left’s approach then merely achievements it can have under specific
geois strategy does over certain periods. consist in mimicking something which the circumstances by way of welfare and relief
But since the purpose of development is bourgeois government already appears to for the working people, can never recog-
to improve the living condition of the have adopted? nise the rights of the working people to
people, this strategy has the advantage of such relief and welfare measures. This is
directly addressing it. Instead of GDP Misleading because the bourgeois state can never
growth rate becoming the main focus, As a matter of fact the term “right” used in inter­fere in the functioning of a capitalist
under the chimerical assumption that it the context of all the above-mentioned economy to a point where it can negate
will bring about development, this strategy legislations is seriously misleading. The forever its spontaneous tendencies. Any
directly addresses the problem of devel- Right to Food Bill provides no “right” inso- such interference in its spontaneous
opment; the growth that occurs is a fall- far as it is not universal: apart, reportedly, tendencies, as I have argued elsewhere
out of it. And in the worst-case scenario, from representing a withdrawal from (Patnaik 2010), gives rise to a situation
even if no growth occurs, addressing the what most states already provide to the where a stark choice is presented between
question of development directly is still below the poverty line (BPL) population at two alternatives: either a series of meas-
preferable on grounds that John Stuart the present moment, viz, 35 kg of grain ures that constitute a dialectics of sub-
Mill had made famous, when he had de- per family per month at Rs 2 per kg version of the logic of capital, or a series
clared his unconcern over the “stationarity” (against which the bill provides 25 kg at of m­easures that constitute a dialectics of
of a “stationary state” as long as the workers Rs  3 per kg), it is targeted exclusively subservience to the logic of capital. The
were b­etter off in it. towards the “poor” who are capriciously- former recursively leads to a denouement
But again my concern here is not with defined and hence arbitrarily-compressible for the overcoming of capitalism, while
the components of an alternative strategy, category. The “right” supposedly provided the latter entails a negation of the original
but with the approach to development. For by the Right to Education Bill is structur- interference and a slide-back into capita­
the bourgeoisie, the components of the ally unjusticiable in the absence of a state- lism in its spontaneity.
strategy, consisting of state subsidies to run system of common neighbourhood Now a recognition of rights of the work-
capital, displacement of petty producers, schools of a certain minimum quality. The ing people forecloses the latter option and
and “disciplining” of workers, derives from NREGA comes closest to providing a preordains the bourgeois state to a dialec-
an approach to development that is “means- “right”, but, as is well known, the provision tics of subversion of the logic of capital,
based”. The question arises: for the left, of employment on demand as promised whose ultimate denouement can only be
what is the approach to development that under the NREGA has not been the general socialism. No bourgeois state can possibly
should inform the components of the strat- practice (and unemployment allo­wance countenance this, which is why no matter
egy consisting of land reforms, defence of has not necessarily been paid when em- how significant its interventions in provid-
petty production, defence of workers’ ployment has not been provided); de facto ing welfare in particular circumstances, it
rights, reinvigoration of the public sector, therefore the NREGA does not give a right has never elevated such welfare into a
and adoption of welfare measures? to employment. In short, while the govern- right of the workers. The provision of wel-
ment talks of conferring “rights”, they are fare to the people in an ad hoc manner is
3 not “rights” in the true sense of the term. always compatible with capitalism, since
The left’s approach to development can- They are not necessarily universal, they it is always reversible. But the provision
not simply be one of emphasising welfare. are not justiciable, or at any rate justicia- of welfare as a right to the people is fun-
“Welfare” is not simply a gift of the State ble in any meaningful sense of the term, damentally incompatible with capitalism.
to the people. It has to be conceived as a and they are usually hemmed in by legal And this is precisely why no bourgeois
right. Or putting it differently, against the loopholes that permit the State to override government can accept a rights-based ap-
“means-based approach” to development the provisions of the Acts. proach to development; and this is also
that the bourgeoisie projects, the left must This is not surprising. In the post-war precisely why the left has to adopt a
project a “rights-based approach”. period governments in advanced capitalist rights-based approach to development
This may appear at first sight as merely countries, especially those led by social which sets it qualitatively apart from all
pushing against an open door. Is not the democratic parties had undertaken a host bourgeois formations and, by unleashing
Indian government adopting precisely of welfare measures. They had introduced a dialectics of subversion of the logic of
such a “rights-based approach”, with the excellent programmes like the National capital, prepares the ground for a transi-
right to employment, enshrined in the Na- Health Service of Britain. They had pur- tion to socialism.
tional Rural Employment Guarantee Act, sued Keynesian demand management Liberal theory argues that a “right”, to
and the right to information enshrined in measures to bring down unemployment be meaningful, must be backed by the
Economic & Political Weekly  EPW   july 24, 2010  vol xlv no 30 35
PERSPECTIVE

capacity of the State to enforce it. This rights-based approach seeks to do; and then adopt the language of this hypo­
amounts to saying that only those rights notwithstanding all appearances to the critical discourse?
should be recognised which it is within contrary such an approach can never be The answer to this consists of two parts:
the capacity of the State, in our case the accepted by any bourgeois formation, in- first, just as “democracy” in a bourgeois
bourgeois state, to enforce. This is an in- cluding the one leading the Government society serves to camouflage exploita-
version of logic, since it makes the domain in India. tion, just as “equality” in a bourgeois so-
of rights dependent upon the capacity of ciety is only the equality of commodity-
the capitalist order, instead of deriving the 4 owners in the marketplace, underlying
optimal social arrangement from the ca- To argue that a left approach must be a which is the reality of exploitation, like-
pacity of any such arrangement to guaran- rights-based approach, as opposed to the wise “rights” in a bourgeois society are
tee certain basic rights. Liberal theory in means-based approach of bourgeois for- meant only to sustain a structure of ex-
short does not go beyond the confines of mations, may appear odd at first sight, ploitation. But this does not make “rights”
capitalism; it takes capitalism as its peren- since Marx was quite contemptuous of meaningless, no more than it makes “de-
nial premise and hence denies any rights the rights discourse. He saw all talk of mocracy” or “equality” meaningless. On
that the bourgeois state cannot guarantee. “human rights” in a bourgeois society as the contrary, just as “democracy” and
The left position by contrast must take ensuring only the possibility of free sale of “equality” can get realised only in a society
certain basic rights, for example rights labour-power in the market, by giving the transcending capitalism, i e, in a socialist
to minimum bundles of commodities, worker the right to dispose of his pro­ society, likewise “rights” too become
services, and material security (the last of perty, viz, labour-power, unencumbered meaningful only in a socialist society,
which for instance the right to employ- by any restrictions. “Human rights” in which is why the left must struggle over
ment guarantees), as its premise and other words were both a premise and a “rights” in a bourgeois society, as it strug-
hence not confine itself to the boundaries of camouflage for exploitation in a bourgeois gles over “democracy” and “equality”.
bourgeois society. This is exactly what a society. How, it may be asked, can the left Bourgeois society’s “hypocrisy” over rights

Training Programme on
Indian Corporate Sector
for Young Economists
The Institute for Studies in Industrial Development (ISID) is organizing a two-week Training
Programme on the Indian Corporate Sector during 27th September to 9th October 2010. The
programme is being conducted in the context of increasing use of company level data by economists for
analytical purposes and the felt need to improve their understanding of the Indian corporate sector,
various concepts involved, limitations of the reported data, further avenues for research thrown open by
the enhanced disclosure requirements for stock exchange listed companies, etc. Broad elements of the
programme are: (i) the institution of Joint-Stock Company; (ii) Corporate Sector in India; (iii) Policy
Environment; (iv) Corporate Finance; (v) Foreign Investments; (vi) Corporate Restructuring; and
(vii) Corporate Disclosures & Databases. The programme is sponsored by the Indian Council of Social
Science Research (ICSSR), New Delhi.
Young researchers/teachers in academic institutions, colleges and university departments who are
primarily from the economics discipline and whose work is related to the Indian corporate sector form the
target group for the programme. The batch will consists of 25 participants and selection will be based on
relevance of the topic under research/proposed to be taken up. Selected participants need to pay a
nominal fee: lecturers or equivalent — Rs. 800; scholars getting fellowship — Rs. 400; and those without
any fellowship or financial support — Rs. 200. The selected scholars will be paid to and fro Second Class
railway fare from the place of study/work. For outstation participants there is provision for boarding and
lodging in Delhi for the duration of the programme.
Those desirous of participating in the programme may kindly send their brief CV along with a write-
up of around 1,000 words on their research topic so as to reach the Programme Coordinator, preferably
through email at corprog@isid.org.in, before August 16, 2010. Further details and programme updates
are regularly posted at: http://isid.org.in/corprog.html.
Institute for Studies in Industrial Development
4 Institutional Area, Vasant Kunj, New Delhi - 110070 (Phone: 011 26761606/07, Fax: 011 26761631)

36 july 24, 2010  vol xlv no 30  EPW   Economic & Political Weekly
PERSPECTIVE

therefore, far from robbing the concept of its justification from the striving for free- Its precise content can be subject to dis-
legitimacy, makes it an important transi- dom, exactly the way that “democracy” cussion but the principle that must under-
tional demand for the left. does, and indeed is seen as an essential lie it is clear.
counterpart of, and pre-requisite for, “de-
Not Identical with Human Rights mocracy”, whose authentic realisation re- 6
Second, “rights” must not be taken to be quires the protection of the people from The left approach to development it
identical with “human rights”. More than the “spontaneity” of the economic system, f­ollows can neither be the “means-based”
half a century ago Hannah Arendt had ar- is therefore in complete conformity with approach, so favoured by bourgeois for-
gued that “rights” were a political con- Marxism. Far from being a retreat from mations, nor the “welfarist” approach that
struct; they did not derive from “human Marxism into some sort of humanism, as social democracy, at its best, espouses.
nature”. The problem she was concerned many may fear, it is part of a political The former squeezes the workers and
with was the “rights” of refugees and o­thers praxis informed by Marxism. peasants today while promising them a
reduced to “worldlessness” who did not prosperous future, but this future never
enjoy “citizenship” of a particular nation- 5 comes. The latter, while empirically im-
state. What, she asked, was their “right to The question that immediately arises is: proving the lot of the workers and peas-
have rights”? The only “human right” she what are these “rights” that the left should ants, does not necessarily locate this im-
recognised was the “right to have rights” demand? (And of course what it demands provement within a discourse of “rights of
and the basis for this according to her was also provides a sense of direction to its the people”, which is an essential compo-
not “human nature” but “human dignity” policies in states where it is in power, nent of democracy and whose violation is
whose roots lay in the Aristotelian notion though the limitations placed by the Indian fundamentally anti-democratic. The left
of man being a “political animal”. Arendt federal polity make it impossible for it to approach must begin with this last propo-
in other words had already shifted the come anywhere near achieving what it de- sition and must be “rights-based” in this
b­asis of “rights” from the moral to the mands.) In the case of what are normally sense rather than in any humanistic sense.
p­olitical universe.2 recognised as “rights” under the Constitu- The adoption of a rights-based approach
But one can go further along this direc- tion, there is no question of the quantum on the part of the left will not only bury
tion. Since freedom is incompatible with of such “rights” being time-dependent. once for all the fears of authoritarianism
the “spontaneity” of capitalism, it requires The right to freedom of expression or the associated with it (because of the one-­
going beyond capitalism to a system where right to freedom of speech does not acquire Party dictatorships that had characterised
people, organised politically, control their radically different connotations between former socialist regimes for historical rea-
own destinies, by setting up an economic rich and poor economies, but the right to sons), but also put it in a vantage position
arrangement that is amenable to political employment at a decent living wage does, to struggle against the hegemony of inter-
control instead of being driven by its own for what is considered a decent living national finance capital in the context of
inner logic. Political praxis on the part of wage in a poor economy is vastly different the current profound capitalist crisis.
the people therefore is the weapon for from what is considered so in a rich eco­
transcending the “spontaneity” of the cap- nomy. Over time the concept of a decent Notes
italist system, which means transcending living wage is likely to change in any econ- 1 The views of Mikhail Tugan-Baranovsky and
P­eter Struve are discussed in Luxemburg (1963).
capitalism. In this struggle, every welfare omy, but if “rights” are not to become See also Kalecki (1971) for a discussion of the
gain they make strengthens them. And subject to the vicissitudes of a capitalist ideas of Luxemburg and Tugan-Baranovsky.
2 For a discussion of Hannah Arendt’s views on
since “rights” are guarantors of welfare e­conomy, there must be some invariance, “human rights” see Birmingham (2006). The
gains, every winning of “rights” likewise at least in a downward direction, to the present note can be seen as a preliminary attempt
to revisit the question raised by Arendt by locat-
strengthens them. The acquisition of “bundle” which the right guarantees to ing “rights” within a theory of political praxis
“rights” on the part of the people, includ- every citizen. So, what should be the size against the “spontaneity” of capitalism.
ing “rights” to minimum bundles of goods, of this “bundle”?
services and security, amounts therefore While the concept of “rights” is per- References
to winning crucial battles in the class war ceived here as being part of the dialectics Birmingham, Peg (2006): Hannah Arendt and Human
Rights: The Predicament of Common Responsibility
for the transcendence of capitalism. The of subversion of the logic of capital, its (Bloomington: Indiana University Press).
left’s putting on its agenda a struggle for justi­fication is seen to lie not in any ab- Kalecki, Michael (1971): “The Problem of Effective
people’s “rights”, adopting a “rights-based stract h­uman nature but in its necessity Demand with Roza Luxemburg and Tugan-
Baranovsky” in Selected Essays on the Dynamics of
approach” to development as opposed to for democracy, as constituting a mini- the Capitalist Economy (Cambridge: Cambridge
the “means-based approach” of the bour- mum condition for the people, insulated U­niversity Press).
Luxemburg, Roza (1963): The Accumulation of Capital
geois formations, constitutes therefore not through the exercise of such “rights” (London: Routledge).
a retreat into abstract humanism but an against hunger, insecurity and ignorance, Patnaik, Prabhat (2010): “Socialism or Reformism?”,
Social Scientist, May-June.
integral part of the dialectics of subver- to participate meaningfully in the demo- Patnaik, Utsa (2007): “Neoliberalism and Rural Poverty”,
sion of the logic of capital. cratic process. It follows then that the Economic & Political Weekly, 28 July-3 August.
– (2010): “Trends in Urban Poverty under Economic
A “rights-based approach” which does definition of this minimum bundle must Reforms 1993-94 to 2004-05”, Economic & P­oli­tical
not appeal to “human nature” but derives be in accordance with this justification. Weekly, 23-29 January.

Economic & Political Weekly  EPW   july 24, 2010  vol xlv no 30 37

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