Raghuram Rajan (University of Chicago Professor) – Strengthening Free Enterprise in India (Nov 2017)


Chapters

00:00:00 Nani Palkiwala Award for Protection of Civil Liberties and Human Rights
00:03:33 Naniye Palkhiwala Awards for Civil Liberties and Human Rights
00:17:14 Arogya Swaraj: Liberating People from Disease and Dependence
00:21:59 Anandwan: A Model Village for Leprosy-Affected and Disabled Individuals
00:33:24 Social Prisons and Fellowships of Pain: Vikas Amte's Work in Anand
00:39:59 Nani A. Palkiwalla Memorial Trust Initiatives
00:42:58 Promoting Liberal Thought and Intellectual Engagement
00:48:24 Strengthening Free Enterprise in India
00:50:29 Conditions Necessary for Free Enterprise to Flourish
00:59:20 Governments and Free Enterprise: The Double-Edged Sword
01:05:02 Government Reform for Improved Business Conditions in India
01:08:04 Uneven Playing Field in India's Entrepreneurial Landscape
01:18:03 Key Elements of a Free Enterprise System
01:25:53 Government's Role in Supporting Free Enterprise
01:28:34 The Significance of Free Enterprise for Societal Progress

Abstract

Updated Article: Championing Civil Liberties and Economic Progress: A Tribute to Nani Palkhivala’s Legacy and the Pioneers of Social and Economic Change in India

In a remarkable confluence of honoring civil liberties and fostering economic development, the Nani Palkhiwala Memorial Trust recently celebrated the contributions of eminent figures and organizations in India. Justice Sujata Manohar graced the ceremony, featuring luminaries like Dr. Abhay Bang and the Amte family of Anandwan. The event underscored the intertwined nature of social justice and economic empowerment, emphasizing the importance of individual rights, healthcare innovation, the transformative power of self-reliance and dignity, and Nani Palkhiwala’s enduring influence on India’s legal and economic landscape.

Details of the Nani Palkiwala Civil Liberties Award:

The Nani Palkiwala Award for the Protection and Preservation of Civil Liberties and Human Rights in India recognizes individuals and institutions making exceptional efforts in these areas. Established in 2006, the award consists of a monetary prize of two and a half lakhs rupees and a citation. Nominations for the award are evaluated by a distinguished panel of three persons, including Justice Mrs. Sujata Manohar (Chairperson), Mr. Justice Sam Bharucha, and Mrs. Sudha N. Murthy.

Contributions of Dr. Abhay Bang and MSS Anandwan:

One of the recipients of the Naniye Palkhiwala Award was Dr. Abhay Bang, the founder of the Society for Education, Action, and Research in Community Health (SEARCH). Dr. Bang, inspired by Mahatma Gandhi, established SEARCH to provide community-based health care in Gachiroli, Maharashtra, one of India’s most underdeveloped districts. He developed a village health care program that has become a national and international model, influencing health care policy in India and abroad. Dr. Bang’s innovative approaches have raised awareness of gynecological diseases, pneumonia in children, and newborn care. His home-based newborn care approach has been replicated in several countries and adopted as a national program in India. He also established Shodha Gram, a community health care and research center in a tribal area, and studied hidden child mortality in the state. Additionally, Dr. Bang worked with the Maharashtra government to control alcohol and tobacco usage in Gachiroli district and started Nirman, a youth initiative to address social problems.

The other recipient of the Naniye Palkhiwala Award was MSS Anandwan, a rehabilitation center for leprosy-affected and disabled people founded by Baba Amte and continued by his sons, Dr. Vikas Amte and Dr. Prakash Amte. MSS Anandwan provides rehabilitation and a new life for thousands of leprosy-affected and disabled people, teaching them lessons of self-respect, self-help, and selfless service. Baba Amte, a renowned human rights activist and peace worker, devoted his life to serving leprosy-affected people and the poor and helpless. He established the Shram Ashram Mitravasti ashram, where everyone worked together and pooled their income and expenditure. Dr. Prakash Amte moved to a forest region to help secluded tribal communities, weaning them from primitive rituals and beliefs. Dr. Vikas Amte joined Anandwan in 1974, managing the institution and setting new standards in environmental protection, social reform, civil rights, health, and human rights. Anandwan is a self-made, self-sustaining model village that promotes unity, harmony, joy, and love. It houses over 4,000 disabled persons engaged in various trades and disciplines, including agriculture, agro-industries, and handicrafts. Anandwan runs colleges and schools for disabled and non-disabled students, fostering a diverse and inclusive community. Anandwan has experimented with low-cost housing construction, waste plastic reuse, and improved farming techniques. It established a unique orchestra consisting of leprosy-affected, visually or physically challenged, and hearing or speech-impaired individuals. Anandwan expanded its reach to disaster-stricken areas, providing aid, empowering communities, and restoring the environment.

Fringe Elements in Society:

The increasing influence of fringe elements in society is a dangerous trend that needs to be addressed. A greater spread of liberal thought and intellectual debate is necessary to combat this trend.

Nanipal Kevala Lecture Series:

The Nanipal Kevala Lecture Series was initiated to promote liberal thought and educate the youth. Eminent persons from various disciplines volunteer to lecture at IIMs and IITs. The lectures have been well received and have generated a lot of debate among students.

Memorial Lecture:

The Memorial Lecture is the marquee event for the Trust. Persons of great eminence have delivered these lectures, which have been printed and widely distributed. This year’s speaker is Dr. Raghuram Rajan, Governor of the Reserve Bank of India.

Nani Palkhiwala’s Legacy and Influence:

Nani Palkhiwala, a prominent figure in the 1970s, is known for his dedication to civil liberties and human rights. He played a crucial role in the Keshavananda Bharti case, which established the basic structure doctrine, protecting certain fundamental features of the Indian Constitution from amendment. Palkhiwala was also a vocal critic of socialism, advocating for economic freedom and individual liberty. His legacy continues to inspire individuals and organizations working towards social justice and economic empowerment in India.

The Work of the Nani A. Palkivala Memorial Trust:

The Nani A. Palkivala Memorial Trust was established to preserve Palkhiwala’s memory and promote liberal thought and intellectual debate. The Trust organizes various initiatives, including the Nani A. Palkivala Memorial Lecture Series, which brings together eminent thinkers and practitioners to discuss issues related to civil liberties, economic freedom, and the rule of law. The Trust also supports research and publications that promote liberal values and principles.

New Supplemental Information:

Elements of a Free Enterprise System:

Effective markets require enforced rules, government-set guidelines, and a functioning regulatory apparatus to ensure adherence to contracts and prevent cartels. However, regulatory structures can bias these rules in favor of certain entities, leading to limited competition and crony capitalism. Property rights protection incentivizes economic activity and investment. Balancing free entry and exit with property rights is important to prevent excessive advantage for property owners. Moderate and predictable taxes, along with improved tax administration and transparency, promote better compliance. The government has clarified its position on retrospective taxation, addressing concerns from multinational corporations. In today’s economy, basic education and business knowledge are essential for participation in the free enterprise system. As a society, it is crucial to provide opportunities for everyone to acquire these capabilities, ensuring equal access to economic opportunities.

The Foundation and Safety Net of Capitalism:

Government support for free enterprise requires ensuring universal access to essential capabilities, such as education, healthcare, and insurance. Social programs can be provided by the government or the private sector, but government oversight is essential to guarantee accessibility. Capitalism begins at the age of 21 when individuals possess the capacity to compete. Nurturing children’s skills and abilities is crucial for their future success in the capitalist system. Free enterprise systems experience economic fluctuations. Establishing a safety net focused on individuals prevents severe downturns and enables risk-taking and confidence. The safety net should prioritize individuals, not firms or institutions. The goal of free enterprise is to let the most capable institutions succeed. Organizations may become outdated and should be eliminated through bankruptcy, while individuals should be protected. Individual insurance and protection are necessary to ensure individuals’ survival and well-being.

Essential Elements of Strengthening Free Enterprise:

Raghuram Rajan emphasizes four key aspects of strengthening free enterprise: Protecting the individual rather than the organization, ensuring an appropriate level of insurance and social safety nets within budgetary capacity, creating a supportive environment for entrepreneurship, and changing the mindset of businesses from seeking special dispensations to advocating for frameworks and improvements. Rajan highlights the remarkable transformation of India’s business landscape, from small shops to vibrant internet marketplaces. He recognizes the spirit of entrepreneurship and the increasing interest among graduates to pursue business ventures. Rajan notes the positive shift in attitudes towards doing business and accumulating wealth in India. He commends individuals like Narayan Murthy, Nandan Nilekani, and the Bansals for their contributions to creating wealth and inspiring young entrepreneurs. Rajan emphasizes the need for established businesses to focus on improving the environment for all rather than seeking specific benefits. He encourages businesses to offer good ideas and frameworks for moving forward and creating a free enterprise system that benefits everyone.

Recognition of Excellence:

The Nani Palkiwala Civil Liberties Awards are presented to individuals and organizations for their contributions to civil liberties. Shyamali Divya Chandra receives the gold medal for Mumbai University, and Dr. Vikas Amte and Dr. Abhay Bang receive awards on behalf of the Maharog Seva Samiti and as individuals, respectively.

Appreciation for Support and Participation:

The Nani Palkiwala Memorial Trust expresses gratitude to individuals, organizations, and sponsors who contributed to the success of the event. The audience is acknowledged for their presence and support.


Notes by: QuantumQuest