Lessons for Yogi from Gandhi and Lee

Context: COVID 19 has put India at the cross from where it has to be decided whether to follow ‘normal’ economics of GDP or move towards more human and more local economics as suggested by Lee Kuan Yew (the founding father of modern Singapore), and Gandhi.

Challenges due to globalization/ de-globalization 

• Easy movement of migrant capital but not migrant labour.
• De-globalization since 2008: led to many countries raising barriers against migrants. COVID-19 has increased those barriers as supply chains have broken up.

Lee’s Idea of a developed economy:

• Measure of development: per capita income rather than GDP. 

• Lee wanted wages to rise in Singapore so that per capita in­ comes would rise.

• Diversified resource generation: Due to lack of natural resources, Singapore banked on its strategic location in providing sea access routes and port facilities.
• Ensured up-gradation of citizens: in exchange of world-class infrastructure, efficient administration and low taxes from the MNC’s
• Captured long-term investments: by setting up a training center and a precision tool room in partnership with J.R.D Tata.

Principles of Gandhian Economics

• Village centric development (Poorna Swaraj): Unless people in India’s villages have economic and social freedom, India cannot be a free country.

• Strengthened decentralized governance at the village and local levels.

• Potential of poor people: should not be considered as mere statistics for economists.
• Foundation of Human Development: The Economy must serve human needs, rather than human beings becoming fodder for the GDP.

• Test of public policies: must be what is good for the people, especially the most powerless. And not what is good for investors and the GDP.

• Means of progress: must be human beings and local communities, and their wellbeing its purpose.
• Wealthy should be trustees only: of the community wealth and not owner.
• Create new models of cooperative capitalist enterprises: where workers and not some remote capitalist or state are the owners.

Conclusion: 

• Both Gandhi and Lee believed in the foundation of actual growth lying in the prosperity of people and not some statistical, manipulative GDP numbers.
• It could run behind the West to catch up; or it could take a path less taken, using a ‘Gandhian’ approach for human development.