Q. The New Economic Policy – 1921 of Lenin had influenced the policies adopted by India soon after independence. Evaluate. [UPSC- 2014]
Ans:
The New economic policy (NEP) was adopted by Lenin after the period of war communism(1918 -1921) was over in Russia. The establishment of pure communism had brought a perilous economic situation and a change in policy was a crying necessity. So, Lenin introduced NEP as a strategic retreat from Marxian Communism and a compromise between socialism and capitalism.
The similarities of the policies, the inclination of Nehru towards socialism and the Nehru’s own statements praising the soviet experiments have led to the view that the NEP had influenced the policies adopted by India soon after independence. ©crackingcivilservices.com
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The economic policies of India soon after independence was hugely influenced by the NEP of Lenin:
- Early years of post independence had similar crisis situation (as in Russia) because of around 200 years of colonial exploitation, destruction caused by world war-II and partition.
- Long before India attained independence, Nehru had visited the Soviet Union as an invitee for the tenth anniversary of the October Revolution when he saw the stupendous socio-economic transformations brought about by the NEP.
- He was immensely impressed, and must have, at that time itself, thought of devising an economic programme for the development of India along the lines of what he found in the Soviet Union under the NEP. ©crackingcivilservices.com
- He himself had acknowledged that, the soviet experiment helped in his thinking and played a part in his decision to opt for the ‘mixed economy’.
- Thus, it cannot therefore be disputed that Nehru’s economic policy was virtually the NEP adapted to suit the Indian conditions.
- There were broad similarities between the NEP and the policies adopted by India soon after independence:
- Mixed economy was feature of both the policies. Private enterprises for the small sectors were allowed and the State was in control of the commanding heights of the economy.
- Like Soviet, the nationalisation of heavy and capital goods industries was taken up seriously by P.M. Nehru.
- Agriculture reforms: Under NEP requisition of food stuff was dropped and peasants were allowed to sell their surplus in the open market. In India too the 1st Five Year Plan was focused on Agricultural growth promoted by community development programmes, agricultural cooperatives and comprehensive land reforms.
- Although the self-reliance and reduction of external dependence was crucial but the importance of foriegn aids and capitals was acknowledged and allowed in both NEP and Indian policy after independence.
- Mixed economy was feature of both the policies. Private enterprises for the small sectors were allowed and the State was in control of the commanding heights of the economy.
However, there were other factors too that shaped Nehru’s policies soon after independence:
- Although he was profoundly influenced by the Soviet Union, he was not a Marxist. But he was inclined to Fabian Socialism. he was also heavily influenced by the socialist ideology and introduced welfare state of the then British Labour Party. He incorporated that concept in his economic programme. ©crackingcivilservices.com
- His vision of socialism did not go beyond the concept of a Welfare State and that could be achieved, he thought, by confining state-ownership to the commanding heights of the economy like heavy and key industries and taking care of food, health, education, transport and such other welfare programmes.
- The idea of planned economy based on five year plans was inspired by the planed developments experimented by Stalin.
The NEP of Lenin was only a temporary arrangement to avoid great catastrophe and saving the Bolshevik government. It helped revitalise the economy but ultimate aim was still the pure communism. However, Lenin didn’t live long enough to see the full working of the NEP. In case of India, the policies adopted was not a temporary makeshift. It was aimed at creating a welfare state, addressing the challenge of poverty though rapid growth and increasing India’s autonomy from the advance country. ©crackingcivilservices.com
