Vivekonomics

On this day some 110 years back, the man in saffron represented India at the Parliament of Religions in Chicago. People were as enthusiastic to hear Vivekananda then as they now go gaga over Justin Timberlake's performances. Today, when India's economy is on the move, Vivekananda’s suggestions in this sector seem all the more relevant, leading suchayan mandal to wonder how Swamiji would have served as PM's economic adviser

On the morning of 11 September, 1893, Swami Vivekananda received a thundering applause that lasted for about two minutes. Credit goes to his choice of gender preference and words, "My Sisters and Brothers of America..." Little did people know that the flame, which flared up that day would enlighten his fellow human beings with a vision for a better world, where man would muster courage to fight the evil and believe in himself. His speech, "The Christian is not to become a Hindu or a Buddhist, nor a Hindu or a Buddhist to become a Christian. But each must assimilate the spirit of the others and yet preserve his individuality and grow according to his own law of growth," could have been a prelude to the anthem that the West and the Orient would sing in times to come. 
Swamiji believed that philosophical doctrines are not effective when it comes to the ill health of his country's economy and the worsening condition of his countrymen. On his return from the US in 1897, he delivered lectures across India on his views of the socio-economic condition of Indians and its betterment ~ the speeches were later compiled into a book, Lectures from Colombo to Almora.  

While Mahatma Gandhi's belief was in cottage industry, Swamiji's vision predicted that to develop India into a true "independent" country, industrialisation was the need of the hour. In one his speeches in Chicago, Swamiji said it was "bread and not religion" that India needed the most. His pragmatism made him the celebrity whose lectures were, in the current context, like a Lady Gaga or Justin Timberlake's performance, with people gathering just to hear him perform with his thunderbolt speech.
 The relevance of Swami Vivekananda’s opinions to make India self-sufficient economically is reflected in the new government at the Centre leaving no stone unturned to pull in maximum industrialisation and  investments.
So, in this context, it appears quite relevant to discuss Swami Vivekananda's thoughts and opinions to make India self-sufficient in its economy, and who had thought of this in a smarter way some 110 years back.

Economic backdrop
During the last phase of the 19th Century, India's economy was far from being stable. Dadabhai Naoroji calculated that the national income of India during 1867-68 was Rs 3.4 billion for a population of 170 million, with a per capita income of just Rs 20. Comparison of per capita incomes of different countries revealed that India's income was very low ~ "even the most oppressed and mis-governed Russia" was much better and it was believed that India was "the poorest country in the civilised world".  
 The British domination had made India, the nation with a heritage, turn into ruins. The country's agricultural, industrial and business sectors were destroyed. Replacement of the traditional education with the Macaulay system resulted in changing the entire course of education, apart from denying it to a larger section of the society. The value-based systems that governed the functioning of the society and economy since ancient times suffered severe damages.
Political economists like John Stuart Mill influenced Vivekananda to a great extent. Though he had never been an economist by profession, having toured India and abroad and talking to grassroot people gave Swamiji an insight into economy and the whole idea of what kind of change was required. His expertise on economic concepts could be understood from the fact that he gave a lecture to the experts at the American Social Science Association in the US on the "Use of Silver in India" during his stay in 1893. 

Swamiji's warning
Today, while the West is practising yoga, studying Vedas and considering eastern spirituality on a serious note, Swamiji had cautioned them long back that emphasising on money-making and enjoying material pleasures were "just for the time being with a permanent side effect". In his lectures in various US cities, he clearly said it was necessary to imbibe higher principles for a meaningful life. Vivekananda opined that the economic theories and models that they were advocating over the years would prove to be failures. It is only now that the West has begun to understand that life is a complex process, of which economics is only a part.
 
Wealth drain
Swamiji was one of those who understood that the primary source of wealth of the Europeans was a result of the wealth drain to Europe from India. Until the 18th Century, India was performing better in terms of economy and wealth. 
In Complete Works of Swami Vivekananda, Vol VII, Swamiji said, "Indian commerce, Indian revenue and all are now in the possession of the English; it is, therefore, that they are foremost of all nations now. ...That India, the India of the 'natives', is the chief means and resources of their wealth and civilisation, is a fact which they refuse to admit, or even understand." 
Economic historian Angus Maddisson has established the supremacy of the Indian economy at the global level since the beginning of the Common Era. Andre Gunder Frank in ReOrient: Global Economy in the Asian Age has discussed how the western historians were engaged in projecting a wrong image of the West over the years. While these efficiently accuse the West of looting India, Vivekananda’s understanding of economy with agriculture and industrialiaation were a solution to develop India on her own.

Industrialisation
Swamiji went on to say, "In this country of abundance, the produce of which has been the cause of the spread of civilisation in other countries, you are reduced to such straits! Your condition is even worse than that of a dog...People of foreign countries are turning out such golden results from the raw materials produced in your country, and you, like asses of burden, are only carrying their load. The people of foreign countries import Indian raw goods, manufacture various commodities by bringing their intelligence to bear upon them, and become great."
According to  Dr P Kangasabapathi, professor of economics at Madras Institute of Technology, "Swamiji strongly advocated what the economists in the recent periods call  ‘inclusive economics’. His priority was the removal of poverty and uplifting the poorer and downtrodden sections of the society. He wanted all sections of the country to progress. His emphasis was on the weaker sections and women. He underlined that education and basic facilities must be provided to all." 
Swami Vivekananda understood that India being an agrarian land, emphasis on agriculture and the people tilling the soil is of utmost importance. In Swami Vivekananda’s Economic Thought and in Modern International Perspective: India as a Case Study by Sarup Prasad Ghosh, Swami Vivekananda is shown to be fully aware of the importance of agriculture and noted that "Indians must not shy off from their unique characteristic of being an agrarian economy".  Ghosh wrote, "Few people in India sincerely think about this matter. This has happened due to our education system. But he thinks that proper development of agriculture is needed for the economic development of India."

Agro based industry 
"His emphasis on agriculture remains true even in the present context, as about 60 per cent of the population still depends on agriculture and rural activities," believed Kangasabapathi while discussing Vivekananda’s economic policy. "We are witnessing how the neglect of agriculture after Independence is resulting in suicides and the younger generations leaving farming activities. This is not good for the future of the country. India has inherent strengths in agriculture, which the other countries lack. Besides, there is no other nation in the world that is capable of feeding our population, which is one sixth of humanity."
Not only did Vivekananda want industrialisation for the progress of the country, he was confident of what kind of industry was needed. He wanted Indians to take steps to make the required items without depending on foreign countries. On  his voyage to Chicago in 1893, he met Jamshedji Tata on board and discussed his vision of development. He said emphasis should be on domestic production instead of imports.


Entrepreneurial advice
"Take up one idea. Make that one idea your life ~ think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success." This sums up Swamiji’s advice for entrepreneurs. He was concerned that the art works of the village communities were neglected and wanted them to be taken up by those in the towns. 
He would say "Go and see, even now in the distant villages, the old woodwork and brick work. The carpenters of your town cannot even turn out a decent pair of doors. Whether they are made for a hut or mansion is hard to make out! They are only good at buying foreign tools, as if that is all carpentry! Alas! That state of things has come upon all matters in our country. What we possessed as our own is all passing away and yet, all that we have learnt from foreigners is the art of speechifying [sic].”
 "Swamiji emphasised the use of modern science and technology to solve India’s problems," added Prof Kangasabapathi. "He wanted India to develop into a scientific and technological power. In this connection it is necessary to remember that it was the suggestion made by Swamiji to Jamshedji Tata that led to the establishment of the prestigious Indian Institute of Science."
 

Indian way of development

He believed that each country has its own way of development, which shouldn’t be emulated from others. Ideas can be taken but the model of development can’t be the same. In this context, he quoted Japan to admonish Indians who imitate the West. He said in one of his speeches, "There, in Japan, you find a fine assimilation of knowledge, not its indigestion, as we have here. They have taken everything from the Europeans, but they remain Japanese all the same and have not turned European; while in our country, the terrible mania of becoming westernised has seized upon us like a plague."
  Ghosh notes in his book the development model suggested by Swamiji: "The uniqueness of the Vivekananda doctrine lies in the fact that whatever remedies it suggests for India’s economic, political and spiritual regeneration derives from Swami’s practical experiences of life. He used to meet the common Indians directly whenever he went to different places. This made him confident that India has to develop an economic model for herself, which will take the peculiarities of her social life into consideration."
 After the 2008 economic debacle, it's a recognized fact now that western model of economy is unstable. Indians need their own productive industry to shine. Involving everyone is the buzzword of Swamiji’s doctrine of economy as he suggested, "Let New India arise-out of the peasants’ cottage, grasping the plough; out of the huts of the fisherman, the cobbler and the sweeper. Let her spring from the grocer’s shop, from besides the oven of the fritter-seller. Let her emanate from the factory, from marts and from markets. Let her emerge from groves and forests, from hills and mountains."