DO NOT GIVE UP IDEALISM AND SKEPTICISM
THIRTEENTH CONVOCATION OF IRMA
APRIL 13, 1994
IG Patel
I feel deeply honoured by your invitation to be the Chief Guest at this thirteenth annual convocation function of this institution. I have attended many convocations in the past, but I must say that I haven't seen any other convocation as colourful as this one!
The Institute of Rural Management at Anand is not just any other academic institution. It is an institution characterised not just by academic excellence; it is also an institution committed to social responsibility and social service. The graduating students should consider themselves privileged to have got an opportunity to spend some time with this institution which puts before its forefront ideals such as knowledge not just for oneself but knowledge for society.
Convocations are for the graduating students. It is basically a celebration, a festive occasion when students feel that after one or two, in fact many, years of hard work, they have finally arrived. I think, a convocation is also an occasion for graduating students to look back. Looking back, we must have a sense of gratitude to so many people, who have contributed to your studies -- your parents, teachers and many such individuals at some stage or the other. I hope you will spare some thought for them on this day.
But primarily I think convocation is a day when the graduating students look forward. There is a great deal of expectation on such an occasion, and a certain degree of anxiety if not apprehension. Leaving behind parent's home, you do not have any more the security or the shelter of a university or home. You are on your own. Therefore it is natural to ask "What kind of world is it going to be?" Is it going to be a world which will sustain the high ideals that you have been taught here? Is it a kind of world where these ideals will be severely tested? That they will be tested, we know but we do not know whether they will prevail or not. It is these aspects I will devote some time to in this speech.
A lot of talk is going around the country about changes, about bringing about a new philosophy and even a new mind-set. But I can assure you that one thing will not change. Dr. Kurien has demonstrated that rural development is important; you can't do without it, that it is feasible; that it can be done. But it requires certain institutional arrangements like cooperatives or voluntary organisations and a certain spirit of working together. But most important, it requires, in the modern context, efforts of the highest intellectual order -- be it in management or technology. That is the philosophy behind your education - behind this institution.
The philosophy behind the liberalisation policy, to put it briefly, is that idealism is important but more important is the market forces, the financial incentives. You can't live without financial incentives is the lesson many economists, especially liberal economists, are emphasising. Marshall, one of the greatest economists, once said -- "In social policy, we can't do with the noblest of the motives, we also need to address to the strongest of the motives!"
Somebody once asked -- what is it that an economist economizes? The answer given was that he economizes the scarcest thing -- the scarcest thing is charity, consideration for others! You minimize the use of that and that is to say you maximize the use of financial incentives and motivation. That is the philosophy behind the process of liberalisation, behind greater reliance on markets and competition, and behind privatisation. All these are supposed to give a greater play to the natural instinct of man; the incentive for uplifting oneself and thereby uplifting the society. It is better to remember that there are these two broadly contrasting philosophies.
How do we prepare ourselves for this new world? There is no denying the fact that the national and international community is going towards privatisation, globalisation and liberalisation -- slowly or not so slowly -- the trend is towards that. How do we prepare for that? Is it a world in which you relinquish your idealism or optimism?
Let me say that in the new world, your education - training - the values that Dr. Kurien mentioned -- should find you completely at home. I am sure you are not encouraged to say at IRMA that for achieving something for yourself or for the people around you, you always need a government. It is the biggest curse in independent India that we have believed and thought that government knows everything; it is all powerful to do everything; it can deliver anything, it is benevolent! We realized that it is not benevolent, it doesn't know everything and certainly it is not all that powerful! What is more, it has nothing with which it can subsidise because it takes with one hand and gives with another. Even inflation does that - more unjustly. So that is something which need not cause you a shock. You believe in self-reliance - even when it is sought cooperatively. Can a society do without some moral standards? Consider just one example.
A lot of talk is going on about our fast depleting natural resources. Those of you who want to work for the environment, starting with our own environment, can't say that economics does not play a role in stimulating a better administration of the environment. But economics cannot ultimately do without the moral values which put the interests of the future generation on a slightly higher plane over and above the interests of the present generation. At what rate of interest do parents discount the welfare of their children to determine the level of their sacrifice? Something akin to that is also true if we are to preserve the environment for future generations.
Let us keep reminding ourselves that the philosophy of liberalisation and market forces or privatisation has a distinct bias towards efficiency - but that this efficiency is economic efficiency - on the assumption that the existing distribution of income and wealth is fair or just. We all know that the existing distribution of income and wealth is not always fair. I do not mean that distribution can or will always be inequitable. Even if there are corrections, they may be of only a minor nature, and we will be fooling ourselves if we think and say that any society can solve the problems of equity and distribution for ever. But that does not mean that we can sacrifice anything at the altar of economic efficiency.
Having said that, let me go back to what Dr. Kurien mentioned and say that your faith in rural development is important. Can anybody ever say that without rural development in India, we shall ever be able to provide employment to growing population? It is simply not possible. People who are talking about liberalisation are also aware of this but nobody talks about this because they do not have serious answers to the riddle of unemployment. They say that, in the long run everything will be fine and it will be taken care of; some are talking about safety net and re-training and so on. But the fact of the matter is that modern industry which enables you to compete globally, necessary as it is, will not provide employment at a reasonable standard of living for the large masses of rural people. So in India, there is no escape from trying to do whatever little we can do to improve the lot of people living in the countryside who have only labour as the resource. Some may have same land and access to uncertain water resources. But their most important asset is their labour.
People talk of trickle down of growth. Nobody is saying that growth should not trickle - down, or up, or sideways. What we are saying is that unless we assure that the small man can enhance his productivity, rural development has no meaning. That is the biggest challenge in rural development -- how to increase the productivity of the smallest man, that takes technology, organisation - and some selfless commitment from persons trained in institutions like IRMA.
There is another aspect to this. When we are talking about rural and industrial sectors, the tendency is to treat them as if these are two water-tight compartments such as Rural - Urban, Agriculture - Industry. It is something like a caste system. That you are a farmer and therefore you can't become a trader and you can't be a manufacturer. It is no longer necessary. A group of farmers can be traders, they can be manufacturers of certain goods. You need to bring certain degree of vertical integration in the farming operations so as to make a farmer a better farmer, a rural worker into an entrepreneur. A rural worker can also be a trader of his own goods, he can also be a manufacturer of some goods using his skills. So he not only shares benefits of enhanced agricultural productivity but also benefits through growth coming through trade or exports or industrialisation. Once again, small man can climb up the ladder. But it requires the same combination of organisation, technology and commitment.
It is here that your education is going to be of utmost importance. Here, you have also learnt theory. Do not underestimate it. Not that practical knowledge is not important. But theory tells you, "Why of things." Even if circumstances change, problems differ; it is the "Why of things" that is going to be relevant. Once you begin to look at situation with this framework, you are better equipped to address it. I am sure the education that has been imparted in this institution has taught you this skill. I have no hesitation in saying that in future you will have to face greater challenges. You will have to fight with lot of prejudices, prejudices such as looking at things with a belief that there is a panacea for all ills - or that none for a particular ill. Beware of that.
What advice I have for you? As I told you, Convocations are festive occasions for students when they will not be receptive to advice! But people like me who give Convocation addresses are fond of giving advice. When I was in Baroda College, I was the magazine editor for one year. For every issue, we wrote to distinguished personalities requesting them to send a message for the student community. I wrote to Shri KM Munshi with a similar request. He promptly sent a reply. The reply read: "Please read all the earlier messages and decide to follow anyone of them!"
On my part, I will give you one advice. This is very important for people who are starting a new life. Please do not give up your skepticism! Don't believe in everything that you are told or for that matter you have learnt in last two-three years. Skepticism is very important because the journey for truth begins when you start asking questions. Nothing in life is unidimensional, all problems are mixed up and if you are not used to asking for something different from what one is used to, you will overlook many things. In life, things don't come to you in a single or simple package, they come in a mixed pack. Ultimately skepticism, I feel, is nothing but an academic value. You practice this and you will feel deeply enriched. I remember my many meetings with the late Shri JRD Tata. What do I remember best of him? If he didn't know something, he will interrupt the conversation and say, "Can you explain, what do you mean by that?" He wanted to be sure as to what was being said. That skeptical, questioning mind is very essential.
But I will also caution you that you should also be skeptical about skepticism. If you become too skeptical, you will become inactive! So don't become just skeptical, don't just ask questions. Ask questions and come to a conclusion. Don't give up your idealism, don't give up your skepticism. Be decisive. I wish you a very happy future
