Question

Read the following passage and answer the questions below :

“In the early years of Independence, two contradictory tendencies were already well advanced inside the Congress Party. On the one hand, the national party executive endorsed socialist principles of state ownership, regulation and control over key sectors of the economy in order to improve productivity and at the same time curb economic concentration. On the other hand, the national Congress government pursued liberal economic policies and incentives to private investment that was justified in terms of the sole criterion of achieving maximum increase in production”. - Francine Frankel

(a) What is the contradiction that the author is talking about? What would be the political implications of a contradiction like this?

(b) If the author is correct, why is it that the Congress was pursuing this policy? Was it related to the nature of the opposition parties?

(c) Was there also a contradiction between the central leadership of the Congress party and its state level leaders?

Answer 1

(a) The author is talking about contradiction regarding adoption of development models either socialist or capitalist. Political implications of this contradiction may result the differences among party members itself and government can issue licensing and permits in more complicated manner.

(b) Congress was pursuing this policy as a sole criterion of achieving maximum increased in production. Yes, it was related to the nature of opposition parties to be pursued liberal economic policies and incentives to private investment.

(c) No, there was not a contradiction between the central leadership of the Congress Party and its state level leaders because state emphasised on states’ ownership, regulation and control over key sectors improve productivity whereas control leadership pursued liberal economic policies and incentives to private investment.