Dear Sri Reddy,
The problems arising in the wake of SEZ are basically due to our discarding the Nehruvian model of growth. This model was the result of the thinking on socio-economic problems, developed during the freedom struggle. This model did not give prime importance to profitability. It stressed that the country should go about tackling the problems of social and economic development in a planned way so that regional imbalances and socio-economic inequalities are removed as quickly as possible so that forces of national integration and unity are strengthened. This model assumed that the development will take place, basically, on the basis of domestic resources, manpower and domestic market.The role of the state was to be of the prime mover and regulator. This model faced stiff opposition from several quarters. Among the political parties here Bhartiya Jan Sangh and Swatantra Party campaigned against it. Pressures were exerted by Western countries like USA, institutions like World Bank and IMF and Forum of Free Enterprise. Consequently, it was gradually watered down and, ultimately, given up when Narasimha Rao government came to power. Now, the approach to development is based on the ten points of the Washington Consensus. Without going into details, we can say that regional imbalances and inequalities in the society are bound to increase. We have been witnessing the phenomenon of jobless growth of 8 per or above. Whatever wealth is created is cornered largely by a small section of the society. Trickle down has failed to give an adequate share in the fruits to people at lower rungs. Consequently, we are witnessing all sorts of social tensions and conflicts. The pattern of production is not oriented towards satisfying the needs of the masses but of the rich. The motto now is growth by hook or by crook. Capital whether foreign or indigenous must be attracted no matter what it is going to cost in human sufferings and environmental damage. Instead of going about the problem of growth in a piecemeal manner, we have to tackle it in totality. The paucity of space does not allow me to go in details. Girish Mishra
