FROM DISCONTENTS TO PROGRESSIVE CAPITALISM: IS IT WORKABLE IN INDIA ?

Nobel Laureate Joseph  E Stiglitz a public policy activist and development economist associated with research and policy making in World Bank and other countries including USA, China and Singapore made a scathing attack against ongoing globalisation and activities of global institutions  in his  brilliant work "Globalisation and its Discontents " in 2001 .After two decades he has brought another path breaking study entitled " People ,Power and Profits:Progressive Capitalism for an age of discontent" suggesting various measures to overcome inequality of income and wealth, unemployment, malnutrition,poverty, climate change etc as bye products of discontents of globalisation.In this context it is relevant to mention about the role of economic system which refers to the sum total arrangements for  production and distribution of goods and services in an economy. While in a primitive feudal society customs and practices shape the pattern of resource allocation and distribution, under capitalsm or market economy the forces of demand and supply or "price mechanism " sets the patterns of resource use and production. Under socialism and Centrally planned economies it is the Planning authority that take decision on production and distribution of goods and services. In other words the basic questions of an economy namely- what to produce, how to produce, for whom to produce,when to produce and where to produce are decided broadly by either the  market mechanism or the Planning authority or a combination of  both, Advocates of capitalists system indicated the guarantees of economic rights like right to own property, make profit,make free choices and the right to compete.Under socialism basic industries are  owned by Government or by the private sector with  strong Government control. .Centrally planned economies usually provides services like food,health, education, right to  work and unemployment benefits to all or the needy.Working of capitalism though facilitates high growth but allows private  firms to amass huge  wealth and economic power leading to grave  inequalities in distribution of income and wealth. On the otherhand centrally planned economies are capable of providing basic necessities like food,clothing , shelter, health and education to all without any incentives for entrepreneurship, innovation investment or  profits .But it may lead to chances for favouritism, corruption and redtapism under planned economies. During Cold war period both blocks(Soviets and Western)  attempted to emulate best practices of other systems like capitalist countries undertaking more public welfare programs and Socialist countries  providing more awards and incentives to best individual talents,experts  scientists etc. Once basic necessities of life are fulfilled people aspire for more  comforts and luxurious .Even Soviet president it self complained the quality of consumer durables especially refrigerators are  far below the quality maintained in developing countries including India .Youth of Soviet Union during the late 1980s were very much infatuated by cowboy style fashion to wear jeans and sip coke. Moreover major policy changes initiated in Soviet Union at that time namely Glasnost or openness and freedom and  Perestroika -the policy of restructuring and reforming the economic and political system of Soviet Union, along with  the fall of Berlin wall in Germany and so on led to disintegration of Soviet economies into 13 independent states that embarked on transition from socialist economies  to  market economies and witnessed a new phase of globalisation .USA is commonly referred as an example of Capitalism, China for State Capitalism, former Soviet Union for Planned Socialism and India for mixed economy where both market mechanism and economic planning operates simultaneously. On the otherhand progressive Capitalism is an economic framework advocated  by Joseph Stiglitz, seeking to balance between markets, state and civil society and to address societal challenges which can be effectively tackled through Government intervention to regulate markets, investment in public goods like health education and infrastructure and more significantly to curb the influence of large corporations. 

 Joseph E Stiglitz observed that India has tremendous scope to pursue  progressive Capitalism in a highly integrated society where what one person does affects others. which not only needs collective action but also need  Government regulation and public investment. Unregulated free markets in fact tend to reduce economic opportunities for the  majority and helps few shrewd individuals to siphon wealth from  many to the few.In fact neolibarilism or unfettered capitalsm increases the freedom of the rich at the costs of the poor. In this context a distinction is made between wealth creation and wealth extraction. If individuals take wealth from others through various forms of exploitation it is wealth creation whereas the true source of wealth of a nation lies in creating and ent   productivity of nations people, and their productive transactions with each other. This in turn is determined by institutions broadly referred as healthy democracy, rule of law, system of checks and balances and due processes. According to Stiglitz it is greedy capitalists and other private rent seekers who exploit the people and the state simultaneously. Infact unregulated free markets reduces economic opportunity for the  majority and helps individuals to siphon off wealth from many .Neoliberalism may eventually pave the way for fascist populism,further leading to more inequality, exploitation, monopoly power, economic volatility and climate change. US have technological advantages over other countries mainly due to progress achieved through Research and Development and education etc.Unequal access to technology and the revenue it creates is one of the  most pressing problem in USA. Similarly digital revolution, geographic divide between those in the coastal tech industry further aggravates existing inequalities in technological access to different social groups. According to US congressman RO Khanna Progressive Capitalism tackles these challenges by providing access to technology through democratising access to technology and strengthening every sector of economy and culture and creating jobs through public private partnership. 

Professor Joseph Stiglitz argued against the notion of "free markets"and observed that it often leads to increase inequality and economic instability which  can be tackled through a more regulated " progressive capitalism ". On the other hand unfettered capitalism benefits the wealthy at the expense of the poor.Business Corporations can exploit market power through monopolies and deceptive practices ruining consumers and workers. Progressive Capitalism on the other hand seeks to balance the benefit of market economy with the need for social and economic equality and harmony. Emphasis on government intervention  can mitigate negative impacts of capitalism and Government regulation of markets can prevent monopolies, ensure fair competition and protect consumers. 

Progressive Capitalism can provides essential services like health, housing education to all.Apart from providing infrastructure, health, education research and development it can integrate environmental protection with other economic policies. As the above brief discussion indicates India with its inherent advantages like demographic dividend, better infrastructure, large scientific and technical manpower, digital revolution, startups and surging services sector exports etc if properly utilized with adequate progressive Capitalism instruments like healthy democracy, rule of law, strong and effective regulatory mechanisms,with transparency both in appointment of competent regulators and their committed activities in economic, financial, social,health and education sectors will ensure drastic change in the pace and quality of our development so as to meet the aspirations of a developed India even prior to the targeted year.