Dr. babasaheb ambedkar 2016

Economic Thoughts of
Dr. Ambedkar
Dr. CA. Varadraj Bapat
Indian Institute of Technology,
Mumbai
varadraj@som.iitb.ac.in
9892413119

Dr. Varadraj Bapat
CA., CWA., M.Com., DISA, PhD.
School of Management
Indian Institute of Technology, Mumbai
अखिल भारतीय विद्यार्थी पररषद प्रदेश अध्यक्ष
भारतीय अर्थथव्यिस्र्था, भारतीय संस्कृ ती, शशक्षण, संस्कृ त,
योग, ब्रह्मविद्या या विषयाची आिड

Education of Dr. Bhimrao Ambedkar
• Columbia University
• M.A., 1915, Ancient
Indian Commerce.
• MA, 1916, National
Dividend of India-A
Historic and Analytical
Study

Education of Dr. Bhimrao Ambedkar
• PhD, 1917, "The Evolution of
Provincial Finance in British India",
(is considered a seminal contribution
to the field of public finance. It
analysed the evolution of the centre-
state financial relations in British
India)

• Columbia University
• M.A., 1915, Ancient Indian Commerce.
• MA, 1916, National Dividend of India-A
Historic and Analytical Study
• PhD, 1917, "The Evolution of Provincial
Finance in British India",
(is considered a seminal contribution to the
field of public finance. It analysed the
evolution of the centre-state financial
relations in British India)

Education
• London School of Economics
• DSc, 1927, "The Problem of the
Rupee: Its Origin and Its Solution", (is
a magnum opus and seen as a major
contribution to the field of monetary
economics)
• http://www.ambedkar.org/ambcd/28H.%20Problem%2
0of%20Rupee%20CHAPTER%20VIl.htm

Books
• He wrote three scholarly books on economics:
• Administration and Finance of the East India
Company
• http://www.ambedkar.org/ambcd/26.%20Administr
ation%20and%20Finance%20of%20East%20India
%20Company.htm
• The Evolution of Provincial Finance in British India
• The Problem of the Rupee: Its Origin and Its
Solution
• The Reserve Bank of India (RBI), was based on
the ideas that Ambedkar presented to the Hilton
Young Commission

• Various memoranda and statements that he
submitted to the government (under British
rule as well as in independent India) are
indicative of his deep insights into India's
economic problems.
• His speeches are replete with stimulating
economic thoughts. He is probably the first
thinker to analyse economic dimensions of
social maladies in India, such as the caste
system and untouchability.

• SMALL HOLDINGS IN INDIA AND THEIR REMEDIES
• http://www.ambedkar.org/ambcd/11.%20Small%20Holding
s%20in%20India%20and%20their%20Remedies.htm#c05
• the production of food is enough to make its problems
demand our most serious thought. But when a country, like
India, depends almost wholly upon farming its importance
cannot be exaggerated. The problems of agricultural
economy dealing directly with agricultural production are
what to produce, the proper proportion of the factors of
production, the size of holdings, the tenures of land etc. In
this paper it is attempted to deal only with the problem of
the size of holdings as it affects the productivity of
agriculture

• He also spelt out his views on the ideal
strategy for India's economic development in
his Memorandum, "States and Minorities"
(1947).
• http://www.ambedkar.org/ambcd/10A.%20St
atesand%20Minorities%20Preface.htm

• Ambedkar presented a perceptive
critique of Marxism in his essay,
"Buddha or Karl Marx“.
• http://www.ambedkar.org/ambcd/20.Buddha%20or%20Kar
l%20Marx.htm
• The Marxists may easily laugh at it and may ridicule the
very idea of treating Marx and Buddha on the same
level. Marx so modern and Buddha so ancient! The
Marxists may say that the Buddha as compared to their
master must bejust primitive. What comparison can there
be between two such persons? What could a Marxist learn
from the Buddha? What can Buddha teach a Marxist?

• "Buddha or Karl Marx“.
• http://www.ambedkar.org/ambcd/20.Buddha%20or%20Karl%20Ma
rx.htm
• None-the-less a comparison between the two is a attractive
and instructive Having read both and being interested in the
ideology of both a comparison between them just forces itself
on me. If the Marxists keep back their prejudices and study
the Buddha and understand what he stood for I feel sure that
they will change their attitude. It is of course too much to
expect that having been determined to scoff at the
Buddha they will remain to pray. But this much can he said
that they will realise that there is something in the Buddha's
teachings which is worth their while to take note of.

• COMMERCIAL RELATIONS OF INDIA IN
THE MIDDLE AGES OR
• THE RISE OF ISLAM AND THE
EXPANSION OF WESTERN EUROPE
• http://www.ambedkar.org/ambcd/47.Commercial%20Relations%20
of%20India%20in%20the%20Middle%20Ages.htm
• The birth of Islam is synchronous with the consolidation of Papal power in
Rome under Gregory the Great. It was the era of theocracies and the east
was once more spreading a wave of religion that had almost succeeded
in Mohomedanizing the entire continent of Europe. Not to speak of Africa
and Asia and like many big things ;

• COMMERCIAL RELATIONS OF INDIA
IN THE MIDDLE AGES
• But this system was early disturbed by the rise of Islam. When we imagine
that trade was carried on by land Caravans with all the cumbersomeness
we can imagine the hindrances it must have underwent owing to the rapid
military movements of the Saracens We will recall that there were four
principal trade routes from Asia to Europe and they all lay through the
dominions of the Saracens." During the Crusades, so long as the avenue by
the Persian Gulf and the Red Sea were controlled by
hostile Mohomedan powers, it became necessary to adopt another more
expensive and circuitous route, requiring much land-carriage and several
transfers of freight.

• COMMERCIAL RELATIONS OF
INDIA IN THE MIDDLE AGES
• " Islam had hemmed Christendom on every side. On the East
as on the South, the Crescentraised a barrier against the
advance of the Cross." [f39] But in this mighty struggle of
theCrescent and the Cross commerce suffered
immensely. " The Ottoman seizure or obstruction of the
Indian trade routes brought disaster not alone to the
Mediterranean republics. The blow fell first on Genoa and
Venice, but it sent a shock through the whole system of
European commerce.

• COMMERCIAL RELATIONS OF INDIA IN THE
MIDDLE AGES
• The chief channel by which the products of Asia reached the central and
northern nations of Christendom was
the Hanseatic League."[f40] The Hanseatic had profited mainly owing to its
control of Oriental wares coming through Italian Republics.
• “. From very early times "Germany and the north Italian upland
were dependent on the Republic (Venice) for the products of the
east, and when 1017 of ([f41] ) ships laden with spices suffered
shipwreck, the event is noticed by a (*[f42] ) chronicler as a
serious misfortune." [f43]" The Indian trade formed an important
contributory to this Hanseatic commerce. When the eastern traffic
began to dry up, its European emporiums declined." 3[f44] In this
blockade of old trade routes lies the (*[f45] ) expansion of western
Europe.

• COMMERCIAL RELATIONS OF INDIA
IN THE MIDDLE AGES
• The whole situation is well summed up by Prof.
A. F. Poland when (*[f46] ) as to why America was
discovered towards the end of the fifteenth
century, he says, (*[f47] ) would be the
paradoxical assertion that Columbus discovered
America in 1492 or there abouts because the
Turks are an obstructive people. The connection
is not quite obvious, but obvious connections are
always superficial, and this is more profound.

18
• What is world economic history ?

19
Share of World GDP from 0 to 1998
Year 0 100
0
150
0
160
0
170
0
182
0
187
0
191
3
195
0
197
3
199
8
W.
Eur
10.8 8.7 17.9 19.9 22.5 23.6 33.6 33.5 26.3 25.7 20.6
USA 0 0 0.3 0.2 0.1 1.8 8.9 19.1 27.3 22.0 21.9
Chin
a
26.2 22.7 25.0 29.2 22.3 32.9 17.2 8.9 4.5 4.6 11.5
Indi
a
32.9 28.9 24.5 22.6 24.4 16.0 12.2 7.6 4.2 3.1 5.0
Worl
d
100 100 100 100 100 100 100 100 100 100 100
Source: Table-B-20 Appendix B; pp263; The World Economy: A millennial Perspective—Angus Maddison OECD Development Centre Studies --2007

GDP during 2,000 years
Source: Angus Maddison. 2001. The World Economy: A Millennial Perspective. OECD, Paris
Share of Global GDP (%): Year 0-1998
0
5
10
15
20
25
30
35
40
0
1000
1500
1600
1700
1820
1870
1913
1950
1973
1998
Western Europe
United States
Japan
China
India

21
• India is not a story from Rags to Riches.
• It’s an economic empire re-establishing itself
• Western economies have to loot others to
sustain

22
• Dr. Ambedkar considered both Capitalism
भाांडवलशाही and Communism मार्क्सवाद as
incomplete models

23
Capitalism भाांडवलशाही
• १७७०

24
• १७७०

25
• १७७०

26
• Communism मार्क्सवाद
• शोषण मुक्ती
• समानता

Marxism
• Marx and Engels
studied the history
of the world’s
economies
Basic
Communism
Feudalism
Capitalism
Communism!!!
!
Socialism
•They believed
they
discovered an
inevitable
pattern

USSR
• USSR stands for:
Union of Soviet
Socialist Republics.
• The USSR was
formed in December
1922.
• USSR a.k.a. Russia.
• The USSR is a
Communist party.

Communist control of the USSR by 1924
• Moscow
• Leningrad

Communist control of the World
• Moscow

माक्सथ िाद
शोषण मुक्ती / समानता
•धमथ / परंपरा नष्ट करा
•मानिी मुल्य पायदळी

माक्सथ िाद
•हुकु मशाही
•हत्या
•िून
•गररबी

माक्सथ िाद १० कोटी हत्या

37
• Capitalism भाांडवलशाही
• Vs. Communism मार्क्सवाद
•
• Post 1990
• Communism lost completly
• Capitalism got converted into Consumerism

38
• Consumerism अनिर्बंध उपभोग

39
• Bush urged the U.S. public to go shopping and
take vacations (2001 -9/11)
• (http://consortiumnews.com/2011/09/11/chronicling-americas-911-descent/)

40

43
• Market Economy
• Market Society
• Market Family

44
• Market Economy
• Market Society
• Market Family

45
Family Destroyed - Marriage
In US, More than 50 % of children born to under 30
women are out of wedlock
- Marriage is Luxury Good
http://parenting.blogs.nytimes.com/2012/02/19/for-younger-
mothers-out-of-wedlock-births-are-the-new-normal/
http://www.nytimes.com/2012/02/18/us/for-women-under-30-
most-births-occur-outside-marriage.html?pagewanted=all

46

47

48
A million children growing up without fathers in UK
In UK there are more households with TV’s than fathers
http://www.bbc.co.uk/news/education-22820829 (9 June 2013)

Avg persons per house in us
• Pic

10/17/2016 Dr. Varadraj Bapat, IIT Mumbai 50

51
High rate of crime
प्रचंड गुन्हेगारी.
भ्रष्टाचार
िून
मारामारी
बलात्कार

52
High rate of crime
The dataset includes figures for 126
countries. India a rate of Murders
reported per 100,000 population

53
High rate of crime
countries. No of prisoners

54
High rate of crime
countries. India is 79th on that list with a
rate of 1.8 rapes reported per 100,000
population

55
्ृष्टीचे शोषण
नैसर्गथक संपत्ती चा विध्िंस
प्रचंड प्रदूषण

Impact ?
• Saving Rates ?

US personal savings
U.S. personal savings rate has been on its way
down. In other words, consumers have been
spending more than they have been earning.
Some economists warn that this is troubling
and unsustainable.
http://www.businessinsider.in/CHART-OF-THE-DAY-Why-The-Personal-Savings-Rate-Is-
Tumbling/articleshow/21189234.cms 9 Apr 2013

Indian Economic Model
In india, we should stop cpying failed Western
models (Both Communism and Capitalism).
we need a model based on Indian ethos

Economics that hurt the moral well-
being of an individual or a nation are
immoral and therefore sinful.
MM-263
That economics is untrue which
ignores or disregards moral values.
XXV-475

Our object in framing the Constitution
is rally two-fold: (1) To lay down the
form of political democracy, and (2) To
lay down that our ideal is economic
democracy and also to prescribe that
every Government whatever is in
power shall strive to bring about
economic democracy. The directive
principles have a great value, for they
lay down that our ideal is economic
democracy.

Deendayal Upadhyay “I visualize for India a
decentralized polity and self-reliant economy
with the village as the base. We cannot rely
upon superficial Western concepts like
individualism, socialism, communism,
capitalism and need to be rooted in the
timeless traditions of our ancient culture. He
was of the view that the Indian intellect was
getting suffocated by Western theories and
ideologies and consequently there was a big
roadblock on the growth and expansion of
original Bharatiya thought.

• Maharishi Aurobindo said:
“India shall arise upon the ruins of
the west” He said by the year
2011 the western countries will
fall and India will rise.

India has to get into act
•The Question is are we
getting ready to create a
new world order?

References
1 Indian Models of Economy, Business and
Management Models- K Kanagasabapathi
2 India Unincoporated- L Vaidyanathan
3 Indian Business and Financial Models course
by S Gurumurthy conducted at IITB.

Further readings
1 Too big to fail- Andrew Ross Sorkin
2 The Inside Job- A Documentary on how the
global economic crisis happened.

Dr. babasaheb ambedkar 2016

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Dr. babasaheb ambedkar 2016