ENGLISH

West of Suez.–By S. Natarajan (The Indian Social Reformer Ltd., Bombay. Price Rs. 3.)

This book is so much the antithesis of heavy that one wonders whether the irreproachably serious auspices under which it is launched–it is published by the Indian Social Reformer Ltd, and contains a Foreword by Sir S. Radhakrishnan–is not, in fact, yet another illustration of a certain sub-acid humour which the author possesses in abundance. Mr. Natarajan records in these pages his impressions of a European tour which he undertook in 1937. Anyone who writes about European travel nowadays might be excused for concentrating on politics. Mr. Natarajan, while interested in politics, is fortunately much more interested in the rich variety of human types one meets in travel. The result is that there is little in the book that is out of date. Mr. Natarajan’s thumb nail sketches of persons are often extremely clever and the narrative never fails to be human and amusing. Very human too are the author’s repeated adversions to a certain temperamental weakness for economy: indeed Mr. Natarajan makes it quite clear that he resisted all illegitimate onslaughts either on his purse or on his heart. The style is in the best traditions of modern journalistic English.

V.

What is Wrong with Indian Economic Life?–By Dr. V. K. R. V. Rao, Ph. D., (Cantab). (Published by Vora and Co., Publishers Ltd., Bombay 2. Price Rupee One.)

A series of six talks given by Dr. V. K. R. V. Rao at the Bombay Broadcasting House on the subject of Indian economic life have been here published in a handsome little volume by Vora and Co., Publishers Ltd., Bombay. In an amazingly short space, Dr. Rao has given a comprehensive survey of the economic life of India, its glaring defects and the remedies therefor. The book is easily understood by the layman because it is singularly free from technical language without thereby losing in accuracy of statement.

In the introductory chapter Dr. Rao gives a more or less general description of Indian economic conditions on the assumption that something is very much wrong with the economic system of India. In support of this he cites the Iowa average per capita income of an Indian, the low average life, high death and birth rates, scarcity of food to the masses, and the prevalence of diseases of all sorts.

Agriculture being our main economic activity, Dr. Rao suggests that any improvement in the lot of agriculturists is bound to be followed by a general improvement of the country’s economic condition. Increasing the cultivable area of the land, increasing the yield per acre of the land by scientific means, and prevention of fragmentation or sub-division of holdings by legislation are some of the ways in which an attempt may be made to ameliorate the general condition of agriculture.

In Chapter II Dr. Rao points out the more prominent defects of our agricultural economy such as lack of funds to finance agriculture, indifference of the State towards agriculture, absentee landlordism, inability of the cultivator to replenish the deteriorated soil and to effect improvements in the land, the illiteracy of the cultivator, heavy burden of his family debt, inadequate water-supply for irrigation purposes, and recurrence of famines. This exhausts the list of serious defects which require the immediate attention of the State and the public.

In Chapter III Dr. Rao narrates the defects peculiar to our Industries, which are the lack of financial aid from the State and banking concerns, the paucity of skilled labour, the absence of proper entrepreneurs, and the evils of the managing agency system. These patent defects of our system require to be rectified if our industrial system is to be improved.

In Chapter IV Dr. Rao asserts that our currency system lacks the three prime requisites of a sound currency, viz., public confidence, elasticity, and the power to alter the exchange value of the currency. He has rightly attributed the above defects to the State in India not differentiating between the interests of the rulers and the interests of the subjects. But so long as an alien government is at the helm of our affairs, there does not seem to be a way out of this sad condition.

In the matter of public finance our country is exposed to greater and graver dangers. Taxes are not levied according to the taxable capacity of the people, the rich paying less than they ought to and the poor paying more than they can afford. On the expenditure side, a greater amount (80% of the income of the State) is spent on defence and unproductive services of the State, thus leaving a paltry sum for the really productive services. Dr. Rao suggests, as anyone should suggest, a redistribution of expenditure–but this must remain a remote possibility as long as the power of the purse is vested in foreigners’ hands.

In Chapter V Dr. Rao points out the inequality of incomes in India, the highest income being Rs. 50,000 per month and the lowest Rs. 6. The same inequality exists even among agriculturists and agricultural labourers. Dr. Rao categorically lays down that large numbers of income-holders in our country have considerable rent elements in their incomes. State officials absentee landlords, and captains of industry and commerce are the persons to be taxed, a reduction in whose incomes will not react adversely on the output of their effort. It cannot be denied that this goes a great way towards lessening the inequality.

On the consumption side also, Dr. Rao advises a readjustment, the poor to be enabled to spend more on food, clothing, etc., and less on liquor, tobacco, etc.

In Chapter VI Dr. Rao makes out a strong case for a planned policy of economic development on the part of the State and the individual. In agriculture the State can increase the size of agricultural holdings by legislation, improve methods of ploughing and improve the quality of seed and manure.

In the output of manufactured commodities, the State alone can do something by a policy of unqualified and determined protection and a high basic tariff on all imports, and can thus encourage Indian capital. The State alone can manipulate the currency policy in the best interests of the country, change the railway policy of the country so as to encourage Indian industries, improve the efficiency of labour, and extend banking facilities in the country. The private individual can play his part by using only Indian-made articles, by offering voluntary services to remove illiteracy, etc.

In the last chapter Dr. Rao demands the devaluation of Indian currency as a way of counteracting the effect of foreign competition from countries like Japan.

By a coordinated policy as between the Government of India and the various Provincial Governments on the one hand, and generally between these Governments and the public on the other. Dr. Rao’s proposals and suggestions deserve to be put into execution. And his proposals are bound to achieve most of the results which he claims for them.

Dr. Rao is one of our brilliant young economists, and this volume of his talks is bound to be of great use to many people who can understand the subject, if some one who really knew it knew also to convey such knowledge to others without needless recourse to highly technical terms. At a moment in our country’s politics, when it is recognised on all sides that economic issues mean more than political sentiments, it is with the help of volumes like this that the general citizen can learn to think on the really important issues involved in political conflicts.

P. VENKATADRI SASTRY

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