Capitalism, Economy of nordic countries, Food Security, inclusive growth, Mahatma Gandhi National Rural Employment Guarantee Act, MNREGA, Philanthropy, Prof Arun Ramanathan, Prof Harkant Mankad, Social enterprise, social entrepreneurship, Socialism
We’ve seen that socialism had it’s problem, capitalism is no less culprit. I’ve been thinking about both together and have written about it. Regularly I asked this questions of how to two of my MBA professors – Prof Harkant Mankad and Prof Arun Ramanathan. Prof Ramanathan suggested me to read functioning of Nordic countries – heavy tax but less social security. Once I shared this logic –
If we look at both simultaneously we see some good and some not so good practices. Socialism had social benefit at center but execution sucked. On the other hand capitalism has profit at center and execution is better, and also capitalism largely never considered social good as one of the concerns.
The very bird-eye-view (yes MBAs use this kind of jargon) solution could be – What is we bring social benefit and profit together at center and use execution efficiencies of capitalism around? The profit does not necessarily become – extracting whatever available consumer surplus is there with consumer. Take an example of social entrepreneurship, that is one good approach. Here, I do not intend to say every business should be like that. Also, yesterday I tweeted and updated on LinkedIn – If you want to be social entrepreneur, remember funder of social enterprise has impact in mind+heart & investing in head, so impact weighs higher! those kind of initiative can help in inclusive growth.
I see that PPP – Public Private Partnership – can also be great boon for inclusive growth. However, greed has created more problem in the Indian context than giving us Inclusive Growth.
Take an example of MNREGA, it has been failing, benefits are not reaching where they should. How can political parties be kept away from execution? Politicians asking for bribe in such cases is nothing but extortion. How about giving the executioner tax benefits to get involved in it and ask for accountability? Audit Done periodically by people (an independent body monitoring). The people affected and benefited can vote for continuation or stopping that company from involvement. So this can be kind of election on performance of NREGA.
What I think is – people want a respectable life and not bread thrown at them condescendingly. Inclusive growth is possible when we think more like a combination of socialistic -capitalistic society.
This way we’d be capitalist but in a socialist manner where besides profit, social uplifting would be a core of philosophy and growth.