Prabhat Patnaik’s Blog

In a recent report the People’s Commission on the Public Sector and Public Services has rightly drawn attention to the sheer un-constitutionality of the Modi government’s plan to privatise en masse the assets of the public sector. The constitution of the country is not just a set of procedures and rules for the governance of the polity. It expresses above all a certain social philosophy which is supposed to inform the behaviour of the various organs of the State and which constitutes the foundational beliefs around which the nation has come into being. This is particularly true of ex-colonial countries…

The very day, December 11, when the Indian finance ministry spuriously claimed a robust recovery in the post-pandemic Indian economy, newspapers carried news of an acceleration in the US inflation rate. The inflation rate in November 2021 over November of the preceding year had been 6.8 per cent in the US, which was higher than the corresponding rate in any month over the previous 40 years; in particular, petrol prices had increased in November 2021 by 58 per cent, which was the highest for any month since 1980. The Indian finance ministry however blithely ignored this inflation in the US…

The pandemic alas is not yet over, but there are no economic disruptions in the current fiscal year in the form of lockdowns or workers’ absence. The economy’s performance therefore can no longer be attributed to the prevalence of the pandemic; whatever it is, it is caused by economic factors. Government spokesmen are busy claiming that the economy is displaying a robust recovery, and that the current fiscal year will post a double-digit growth rate. But a double-digit growth rate in the current year means nothing; since the previous fiscal year had witnessed a sharp absolute drop in GDP, in…

The MGNREGS was introduced by the UPA-I government despite opposition from the neo-liberal lobby within it, owing inter alia to the active intervention of the Left which was supporting that government from outside. It was restrictive from the beginning: it promised a maximum of only 100 days of employment in a year, and that too for just one member of a rural household. But within those restrictions it conferred an economic right: employment could not be refused and if it was not provided within a certain period then the person seeking employment had to be paid a compensation. It was,…

Particular battles often have a significance that goes beyond the immediate context, of which even the combatants may not be fully aware at the time. One such was the Battle of Plassey, which was not even a battle since one side’s general had already been bribed by the other not to lead his troops against it; and yet what happened in the woods of Plassey that day ushered in a whole new epoch in world history. The battle between the kisan movement and the Modi government falls into the same genre. At the most obvious level it has been seen…

The Modi government has been raising taxes on petro-products as its main instrument of resource mobilisation for government spending. This ironically has the dual effect of not stimulating the economy, but stimulating inflation instead. An alternative fiscal policy of raising resources through direct taxes on the rich (of which wealth taxation is the best possible option) and using those proceeds to increase government expenditure would have both stimulated the economy and kept down the rate of inflation. To see why this is the case, consider the following simple example. Suppose the government wants to spend an additional Rs 100 and…

In the entire history of post-independence India, no single economic measure has been as devastating for the people and as utterly futile in achieving its stated objectives, as the demonetisation of currency notes, of Rs 500 and Rs 1000 denomination, decreed by the Modi government on November 8, 2016. The fact that it did not achieve its stated objectives was not unforeseen; on the contrary, it was obvious to every economist that demonetisation was the height of folly even as it was announced, which is why it was opposed by all, except a handful of “climbers” keen to please the…

There are a number of misconceptions about Indian agriculture which, if not removed forthwith, can have potentially adverse effects on the ongoing kisan agitation against the three farm laws. The first of these is the belief that corporate encroachment on peasant agriculture is a matter concerning only the corporate encroachers and the peasants. This is wrong: corporate encroachment on peasant agriculture is a matter that affects the economy as a whole; it concerns everybody. This is not a rhetorical statement; it is literally true. In this sense the kisan agitation against corporate encroachment is not a bilateral issue like industrial…

Education in post-independence India was supposed not just to provide knowledge and skills to students, but also to facilitate the process of “nation-building” (to use a clumsy word). Since the concept of an “Indian nation”, although it existed in a rudimentary form earlier (going back even to the writings of Amir Khusrau), came into vogue only during India’s anti-colonial struggle, the “nation-building” role of education requires above all an awareness of this struggle, which in turn demands familiarity with the condition of India under colonial rule, and the facts of exploitation of its people. It is not just students of…

The Modi government’s attempt to “explain” away India’s slipping from being 94th on the world hunger index in 2020 to 101st in 2021, a rank well below that of neighbours Pakistan, Nepal or Bangladesh, by questioning the “methodology” of the index, is jejune enough; but even more shocking is its total inability to see the reason behind the acute hunger in the country. Precisely when India has been slipping on the hunger index, the country has had more foodgrain stocks than are required by it according to official “norms”; in fact on September 1, 2021, the FCI had 50.2 million…