Why Economic Democracy

Why Economic Democracy?

Ever wondered why the people in places with rich natural resources the poorest or are engaged in some conflict? Why the people of states like Orissa, Chhattisgarh, Jharkhand in India are working as wage labors outside their states even though they are so rich in natural resources? Why are African countries in conflict even though they have so much vast resources? Why are Gulf countries in conflict even though they have huge reserves of oil? Why Ukraine is in conflict? Why Qatar was blamed as supporter of terrorism when natural gas reserves were found with them? Is there really a conflict of religion or is it more about grabbing natural resources? 

Countries pioneer in industrialization understood they need more and more natural resources to earn more profit. More profit leads to more accumulation of wealth and more objects of physical enjoyment. And from thereon colonialism started to grab these resources. Be it through hook or crook, they ensured to collude with power in different countries and capture their resources at cheapest price, process them at their factories and sell back to these people at higher rates. This way they made profit. With this capitalistic system, it became a system that government will have right on all natural resources.

Now in capitalistic system, big industrialists or riches made politicians to dance on their whims based on power of money. Capitalists fund these politicians to win elections by hook or crook. Whatever it takes, whether by threatening media and other protestors, or buying the people, manipulating them or getting the protestors killed. These capitalists like to place politicians at the helm who gives them maximum benefit. These crony capitalists captured the resources in name of license fee. In turn, people were displaced from their homes or paid a paltry amount to give up their land.  

Nature has been kind enough and has given natural resources in most of the places so that humans can make their living. But it is human’s greed that we are trying to capture everyone’s resource without caring about the people there. They are allowed to exploit the nature as much as possible for their profit and now people are seeing impact of it in global warming, ecological imbalance and other health hazards.   

In communist system, everything belongs to State and they use it as per their whims. It is state which takes all decisions and individual liberty is minimal. People are badly oppressed. In one of the communist country, their own people are not living good life but that country is giving loans to other countries and trapping them in debt to rule over them so that it can get their natural resources. 

What should be done to address this?

That’s where Economic Democracy is important. People need to have their rights on natural resources for the areas they belong to. They should have usufructuary rights over resources like forest, minerals, mines and ores etc and it should not be partitioned to be sold. They should collectively decide how to make finished products of it and then they can export it or consume it. It has to be done in controlled manner to preserve balance with nature and government should be helping them in setting these industries. Economic decisions for resource utilization rights should be with local people rather than government giving rights over resources to their pet friends/ industrialists / financers. There has to be standardized system to curb misuse of the system.

With current political system in India, taxpayers’ money is wasted at whims of government. They introduce various schemes in name of pro-poor. Most of these are to make money for themselves, generate fund for their party or to win seats in next elections. Someone promises that he will bring all black money stashed in foreign banks and wins elections but after winning election, nothing is done as they receive funding for party. Some will announce lucrative schemes like free travel for women. Someone announces free monthly basic income for poor. Do we really need such schemes?  Are we looking for free things or better quality of life? Shouldn’t we aim that everyone gets sufficient opportunity to make their own living instead of living on government doles? People are dreaming that present political class will do good for them. In today’s world, this is not going to happen as there is party pressure to bring funds for party and fill their own pockets. People will have to shun this “expectation from political government” mentality and take collective decisions for their benefit.

In today’s scenario, first contract is given to construct new road by breaking old road which still has some decent life available. Once the road is constructed, it will again be broken to construct drinking water pipeline. Again the road is repaired and it will be broken to put drainage system. It is just loot of public money to fulfill their own pocket by receiving kickbacks for every contract. These kind of decisions should be at the lowest level planning body and it should be very transparent mechanism.  Technology has evolved a lot and transparency is not difficult if one wishes. People can vote for economic decisions in their area. Technology can play big role here.   

Comprehensive solution for Economic Democracy 

PROUT (Progressive Utilization theory), propounded by Shri PR Sarkar is a socio-economic theory which explains how economic democracy is important and will give more employment to local people based on decentralized economy. It discusses about planning at lowest level for development. In today’s world plans come from top but the problems of various areas are different. Government tries to force one plan for every state. There are some areas which have problem of flooding, some areas are hilly and hence don’t have sufficient water being stored.

People with common economic problems and cultures need to be united. Proper plan should be chalked out by the intellectuals (social workers, academicians,  having good knwoledge of flora and fauna) amongst them to uplift their condition rather than depending on corrupt politicians. 

This issue is vast and will try to cover bit by bit in other posts to help develop a comprehensive understanding of the subject.