INCLUSIVE GROWTH AND GANDHIS SWARAJ

GENDER, ETHNICITY AND INCLUSION

Kathmandu University School of Arts

Hattiban, Lalitpur, Nepal
July 2, 2013

Submitted To:
Dr. Uddhab Pyakurel

Submitted by:
Rubina Pradhan
MDEVS 2013-2015

Inclusive growth and Mahatma Gandhis Swaraj

Abstract
This paper centers around two concepts of growth and development that stand in
opposition to one another in both principle and in theory. Inclusive growth is centered towards
making growth more equitable to people from all sectors. Gandhis Swaraj is a more
philosophical take on solving social, political and economic problems of today. In todays
modern era of civilization, it is worth revisiting Gandhian principles and comparing it to the
concept of inclusive growth to realize its relevance and potential.
Introduction
Growth has been identified in not just economic terms; it reflects a well-organized
society with good governance, strong markets, high technological advancement and proper
utilization of resources. (Growth Report, 2008). According to the Growth Report (2008),
inclusive growth, on the other hand, focuses on both the pace and pattern of growth, which will
lead to a sustainable development and reduction in poverty.
In contrast to the modern view of growth and inclusive growth, Mahatma
Gandhi's model of development does not differentiate between ethics and economics - his idea of
Swaraj is of one living in perfect harmony and self-control, is self-sufficient, to believe in the
power of truth and love and to utilize local resources rather than import goods from foreigners.
(Gandhi, 1938). The idea of Swaraj or self rule, albeit idealistic, helps find answers to
important questions regarding the present challenges brought about by globalization and
industrialization.
The main focus of this paper is to establish the concept of inclusive growth in the
modern perspective, its impact in Nepal and understanding the Gandhian perspective. The main

objective is to recognize the contrasts in the views of development from a modern and a
Gandhian perspective. The paper first discusses the concept of social exclusion and inclusion,
which provides the necessary idea for understanding inclusive growth. The second part discusses
inclusion and inclusive growth in Nepal. In addition, we look at growth in terms of a modern
perspective, where the key driver of change has been globalization. We then look at Gandhis
perception of Swaraj and his ideal model of development which discusses ethics and
economics, morality, spirituality, political ideologies of brute force and passive resistance.
Finally, the paper presents the relevance of Gandhis Swaraj today and compares the two
viewpoints, i.e. modern growth versus Gandhis Swaraj.

Social exclusion and inclusion concept

The term social exclusion can be defined as, the process through which
individuals or groups are wholly or partially excluded from full participation in the society in
which they live. (Haan 1998, cited in Pradhan, 2006). Social exclusion is deprivation arising
from economic, social and political problems. Amartya Sen (2000), defines social exclusion from
a capability perspective, where exclusion stems not just poverty, rather it arises because of the
inability to live ones life the way he/she chooses and because one cause of deprivation leads to
other kinds of socio-cultural, economic and political deprivations. (Sen A. , 2000). Hilary Silver
on the other hand, defines social exclusion as, the rupturing of the social bond at an
individual and a group level, which leads to the lack of access to information, resources,
sociability, recognition, and identity, which in turn erodes self-respect and reduces the
capabilities to achieve personal goals. In essence, social exclusion is a multidimensional
concept which affects individuals and societies at not just an economic level; rather it also affects

their ability to live a good life, build social relations, get social and political opportunities and
creates feelings of inferiority.
Social inclusion is usually defined as the opposite of social exclusion. If the logic
is flipped from the definition of social exclusion as described above, social inclusion can be
viewed in terms of creating a sense of belonging, acceptance and recognition. (ADB, 2010). It
identifies the need and importance of full and equal participation of diverse groups of people and
societies in economic, social, cultural and political institutions which leads to social equality of
disadvantaged groups. Inclusion also has its own complexities. As Pradhan (2006) points out,
one needs to look at inclusion not from an opposing perspective to exclusion, rather despite the
inclusionary policies; social values and attitudes make deprivation and exclusion possible. The
danger of being included and yet excluded is an ongoing problem. For example, the fact that
Nepali women have a 33% representation in the Constituent Assembly may be reflected as a
good inclusion policy, but in reality mere presence is not enough. The need is of women
participation in policy making procedures, which is still lacking. (Gurung, n.d.).

Inclusion and inclusive growth in Nepal:

Social inclusion in Nepals development discourse became prominent during and
after the two Peoples movements in 1990 and in 2006. After the Peoples movement, (Jana
Andolan II) in 2006, significant changes have been made in terms of creating inclusionary
policies for the indigenous people, marginalized people, Dalits and women. The 2007
constitution of Nepal has specified separate article for women and other marginalized peoples
that is more inclusive. The article establishes the right to equality and the rights against
untouchability, racial discrimination and forced labor. In addition, it specifies the need of all

groups to be proportionately represented in the policy making processes and state activities.
(ADB, 2010). With these amendments, in the political scenario, Nepal has made some progress
towards creating a more inclusive society.
Where social inclusion refers to an elimination of institutional barriers so as to
increase the access of social, political, economic and development opportunities to individuals
and various groups of people, (ADB, 2010), inclusive growth on the other hand focuses more on
the economic growth aspect of individuals and other marginalized communities. Inclusive
growth refers to the pace and pattern of growth which is important for achieving high,
sustainable growth and reducing poverty. It is a concept that encompasses equity, equality of
opportunity, and protection in market and employment transitions. (What is Inclusive Growth?,
2009).
Hatlebakk, (2008) describes that Nepal has seen a rise in economic growth since
the mid-80s and throughout the 1990s. However, a study on Nepals development constraints
shows that it is still lagging behind in terms of economic growth and poverty incidence was one
of the highest in South Asia. In addition to this, income inequality is also a major problem.
(Hatlebakk, 2008). Fuelled by political instability, Nepal governments focus shifted from
development needs and delayed implementation of much needed reforms which weakened
Nepals economy further. (2009, p. 11). Despite these differences, Nepal has seen a decline in
poverty incidence; it was lower than India (35.1%) according to the statistics of 2004. The major
reasons for fall in poverty were overseas remittances, increased rates of rural to urban migration
and increased entrepreneurial activities in agriculture. (2009, p. 12). Despite the fall in poverty,
inequality in incomes across sectors rose from 0.38 (1995/96) to 0.42 in 2003/04 at an annual
rate of 2.85%. (2009, p. 13). The major reason for the rise in inequalities was the education level

of people with regard to gender, caste and ethnicity. These inequalities stem from the ingrained
class, caste, gender and ethnic discrimination practices in Nepal. (2009, pp. 14-15).
Nepals major development reform policies (Five Year Plans) include setting
goals and specific objectives to increase output and employment, develop infrastructure,
establish private and public enterprises, and create labor intensive production techniques to
reduce underemployment. (ADB, DFID and ILO, 2009). In addition, other major goals include
improving health facilities and creating an equitable income distribution. The three year interim
plans (2007/08 and 2009/10) main goal was also to achieve pro-poor and broad based economic
growth in other words, inclusive growth. (ADB, DFID and ILO, 2009)
Nepals poor performance in economic growth is the result of poor political status
of the country and due to lack of investment from the private sector. Being a neighbor country to
two rapidly rising economies, the government could learn from their inclusive growth policies.
For example, India carried out major poverty alleviation programs like the MG National Rural
Employment Guarantee Act (NREGA), which started in 2006 and provided a legal guarantee of
at least 100 days of wage employment in a financial year to every rural household and to poor
and non-poor alike. (Sen D. P., n.d.). Another program is the Swarnjayanti Gram Swarozgar
Yojana (SGSY) which is a program that covers all aspects of self-employment, helps in capacity
building, training and planning activities. (Sen D. P., n.d.). With such programmes carried out by
the Indian government, the Federation of Nepalese Chambers of Commerce (FNCCI) and
Samriddhi Foundation has collaborated, and come up with a holistic plan that focuses on the
encouraging economic growth in Nepal. (FNCCI, Samriddhi, 2012). This plan is called the Nepal
Economic Growth Agenda (NEGA), 2012 and its main objective is to bring Nepals economic
issues to mainstream discussion. (FNCCI, Samriddhi, 2012). The report centers on five major

sectors, namely agriculture, education, hydropower, infrastructure and tourism. (FNCCI,

Samriddhi, 2012). NEGA, 2012 has addressed problems within these sectors and has provided
recommendations as well.
Table 1: Problems and recommendations to boost economic growth NEGA, 2012
Sectors

Problems identified

Agriculture

Lack of commercialization due to lack of inputs

like fertilizers and irrigation. No market access
and market development, lack of risk management
and lack of research. High degree of land
fragmentation and low returns from agriculture
sector.

Education

Meeting the economic outcome of education

compared to public spending on education.

Hydropower

Investment and challenges.

Infrastructur
e

Access to quality transport modes and

infrastructure

Ways to increase its economic contribution. Poor

Tourism
performance of Nepal Airlines Corporation.
Adapted from: (FNCCI, Samriddhi, 2012)

Recommendations

To increase access to inputs,

develop insurance programs,
develop market centers and
enhance research by encouraging
private investment.
Encouraging private sector
investment, developing national
qualification system, promoting
skill development programs and
other modes for spending in
education like education voucher
system.
To boost Foreign Direct Investment
(FDI) and recommendations as per
the specific project.
Private sector involvement to boost
economic activities and returns to
people.
More initiation from NAC, focus
on removing culture of riots and
strikes, and finding a solution to
infrastructure issues like load
shedding, pollution, transport.

Inclusive growth perspective is closely linked with the idea of growth. Looking at
the table above, NEGA 2012 is a benchmark that policymakers can use to make strong, inclusive
growth policies.
However, the question that arises is if inclusive growth is really sustainable. When
turning to analyze this through the Gandhian model of development, one begins to question the

very logic behind the theories of economics and the ideals through which the society and an
individual is governed.
Mahatma Gandhis Swaraj
The Swaraj I wish to picture is such that once we have realized it; we shall endeavor to the end of our
lifetime to persuade others to do likewise. (Gandhi, Hind Swaraj, 1938, p. 56)

Swaraj: Concept and history

Bidyut Chakrabarty, (2006) points out that Gandhis Swaraj is both an ideal and
a principle. Gandhis idea of Swaraj set the ground for Indias struggle against the British
during Indias fight for independence The political importance of Swaraj lay in the fact that it
instilled amongst the Indians a sense of nationalism which the nation lacked, as India was and is
still a multi-ethnic, diverse country with as many different types of religions and languages as
there are ethnicities. (Chakrabarty, 2006). Gandhis strategy to attain freedom consisted of three
steps. The first step was to drive out the British to gain political independence, second, to end the
economic exploitation of the country by people of the nation and by foreign forces and third, to
free India from the clutches of Western civilization, and free it from their cultural and moral
domination. (Chakrabarty, 2006, p. 28). However, mere political freedom was never Gandhis
only goal. His idea of Swaraj meant much more than a political strategy to rid India of the
English. Swaraj meant freedom in its totality, i.e. freedom achieved through the means of truth
and love, in other words, Gandhi specifically named it soul-force. (Gandhi, Hind Swaraj,
1938). His view of attaining true freedom meant using soul-force or love-force as a tool for
revolution, which meant passive resistance or civil disobedience. His idea was, if I do not like
your law, I am not going to follow it. He abhorred brute force and expressed how using force
was only a short term solutions. (Gandhi, Hind Swaraj, 1938). In addition, Gandhi wanted to
create communities that were self-sufficient and were Swadeshi, i.e. localized in every way. He

did not want capitalism to set its roots in India because of the madness it creates among people,
the craze people have for machines, for consumerism and for the differences it creates among the
haves and the have nots within the society. Thus, Indias nationalist struggle is enmeshed with
the concept of Swaraj. (Chakrabarty, 2006). However, Gandhis idea of Swaraj was not merely a
political strategy to drive out the British and free India, rather it encompasses Gandhis ethics
regarding his ideas on non-violence, the power of truth and soul-force, moving towards
localization over globalization (Swadeshi) and his most important ideal that true Swaraj can be
obtained only through self-rule or self-control. (Gandhi, Hind Swaraj, 1938).
The importance of the various features of Gandhis Swaraj
The Swaraj of my dream is a poor mans Swaraj. (Gandhi, 1931)
After eighty three years, Gandhis philosophies still carry the
same weight and importance as it did when the world witnessed the path he chose to free India.
The importance of Gandhis Swaraj is intricately tied to his beliefs and ideas on non-violence
(Ahimsa), self-sacrifice or soul-force (passive resistance/Satyagraha), his rejection of the
modern civilization, localization of all goods and services (Swadeshi) and trusteeship and finally
the one ideal that ties everything together self rule or self control, which is the essence of
Swaraj. (Gandhi, Hind Swaraj, 1938). The critical features that embody Gandhis Swaraj are
explained as follow:

Non-violence or Ahimsa

"The fact that there are so many men still alive in the world shows that it is based not on the force of arms but
on the force of the truth and love. Therefore, the greatest and most unimpeachable evidence of the success of
this force is to be found in the fact that in spite of wars of the world, it lives on." (M.K.Gandhi)

In the quest for freedom, Gandhi popularized the ideal that the only way one
could achieve freedom was through love and through non-violence. The three major drivers of

Swaraj were compassion, love and truth; which were also the motivating factors for leading the
National struggle against the English. (Chakrabarty, 2006). The idea was that violence breeds
violence, and that a non-violent movement meant that an individual places utmost belief in the
power of love and truth. (Gandhi, Hind Swaraj, 1938). The guiding principle was the soul-force
or passive resistance against anyone who uses brute force. Individual freedom can only be
retained by practicing non-violence and this comes from the moral strength of ones being.
Chakrabarty (2006) describes four ways through which non-violence could be expressed:

Non-violence against the established government,

Using non-violence in internal disturbances like riots,
Using non-violence against external attack and
Establishing the culture for ahimsa or non-violence within families. (Chakrabarty, 2006)

Self-sacrifice or soul-force (Passive resistance or Satyagraha)

Those that take the sword, perish by the sword. (Gandhi, 1938)

A moral method to bring about change, understanding soulforce and making individuals realize the idea of soul-force or self-sacrifice is difficult. Soul-force
refers to acting on the power of love. The idea is to sacrifice oneself even if the other is at fault.
(Gandhi, Hind Swaraj, 1938, p. 67). Gandhi was a man of both thought and action. Gandhi
applied this principle himself, and called it passive resistance or Satyagraha as opposed to
using force by arms. He detested violence of any kind. The belief was that sacrificing oneself is
infinitely superior to using force. (Gandhi, Hind Swaraj, 1938, p. 71). This is the reason why he
was able to build a strong political platform based on this moral principle without having to
compromise ones integrity. (Chakrabarty, 2006, p. 17).When we use soul-force, we project love,
goodness and truth, and these ideals could never be seen in a negative light. It makes people
conscious of their own limitations and opens for them a path of self-discovery. This is what
Gandhi targeted to make people aware that using force is to realize that we need to be just to

ourselves and only then can we act justly for others too. Thus, soul force is the force behind real
courage and it brings people together, allow people to live in harmony and peace. (Gandhi, Hind
Swaraj, 1938, p. 68).

Gandhis take on civilization

A man laboring under the bane of civilization is like a dreaming man. (Gandhi, Hind Swaraj, 1938)

Civilization, as Gandhi described was a projection of the

increasing influence of globalization and capitalism. Modernization meant free trade, enhanced
consumerism and according to Gandhi, the driving force that made people more engrossed in
bodily welfare. (Gandhi, Hind Swaraj, 1938). People today are driven by greed and the lure of
money they earn more, they consume more. (Gandhi, Hind Swaraj, 1938, p. 32). Professions
we call noble are not noble anymore, they have become a means to gaining social prestige and
fuelled by greed. In relation to this, Gandhi states that if people are patient, this civilization will
destroy itself. (Gandhi, Hind Swaraj, 1938, p. 33). What he meant with this statement is that
people have become so irrational with greed for money and the lust for power that they forget
how to love and act with love and kindness. Overconsumption and the degrading moral values of
people will be or could be the end of this so-called civilization.

Self-sufficiency and Swadeshi

I see no distinction in ethics and economics; they are one and the same. (M.K.Gandhi)

Gandhis concept of Swaraj has a chief distinctive factor. He

never differentiated between ethical conduct and economics. Where economic growth is about
competition, industrialization and growing market economies that utilize scarce resources, the
Gandhian ideology is exactly the opposite. His idea of a full economic freedom referred to all
the Indian villages working together to specialize in local, nationally produced goods. (Gandhian
Model of Development, n.d.). This era of globalization and industrialization has turned people in

to slaves slaves of machineries, of fulfilling material wants rather than fulfilling ones basic
needs. Gandhi therefore was extremely critical of modern economics. This is because he did not
see a difference between ethics and economics. According to Gandhi, any economics that would
hurt the moral well-being of any individual or nation is immoral and sinful. (Gandhian Model of
Development, n.d.)
According to the Gandhian ideology, if Swaraj was the
goal, then Swadeshi was the means to achieving the goal. (Chakrabarty, 2006, p. 22). He put
this principle into practice by encouraging Indian people to wear clothes made out of home-spun
cloth (khadi) and using the spinning wheel (charkha) to produce khadi. These two concepts of
Swaraj and Swadeshi (localization) are therefore, intricately linked. (Chakrabarty, 2006, p.
22). Another difference that can be noted is Gandhis emphasis on self-sufficiency. The use of
charkha to make home-spun cloth was one way. Gandhis view of sustainability was ethicospiritual and community-driven in the sense that he believed that resources were abundant, and
all people in the villages would be able to share this abundance if each specialized in their own
way and worked with one another. (n.d., p. 189). The sole purpose here is to encourage sharing,
service and build trusteeship. Trusteeship refers to that view in which the capital and labor are
mutual trustees, and function as joint-trustees to the consumers and the entire community.
(Behuria, 2010). Decentralization of political and economic power was promoted so as to create
self-sufficient villages that were the models of non-violence. (Behuria, 2010).

Self-rule
It is Swaraj when we learn to rule over ourselves. (Gandhi, Hind Swaraj, 1938)

Gandhi was very religious. Therefore, his philosophies

always have a spiritual quality about them. The Swaraj he envisions can be achieved if
individuals are able to maintain self-control, which is the real home-rule or self-rule. (Gandhi,

Hind Swaraj, 1938, p. 90). The points mentioned above are a means to achieving true Swaraj.
But without maintaining self-rule, Gandhi expresses that one cannot achieve true Swaraj.
Modern civilization lures people and societies to be enslaved by material wants and passions. It
fuels greed and lust for possessions and noble professions have become tainted with the need for
recognition and prestige rather than serving people. (Gandhi, Hind Swaraj, 1938, pp. 47-57).
Thus, to overcome these weaknesses, Gandhi proposes people to have control over their minds
by maintaining abstinence and being self-sufficient. Only then, will the nation as a whole be able
to enjoy true self-rule.
Thus, the importance of the Gandhian concept of Swaraj can be
appreciated by understanding the various components or features that can lead to the
achievement of Swaraj. As highlighted above, the relevance of Gandhis philosophies leads us to
question the civilization we are living in today.
Relevance of Gandhis Swaraj
It is essential to pose serious questions as to where our world is
headed the more global and interconnected we have become, the more problems we see rising
every day. Gandhi had the foresight to see how globalization would impact the world. (Gandhi,
Hind Swaraj, 1938). Looking at a more global perspective, Meredith (2008), in her book
expresses her fears regarding the massive rise of two economies, namely China and India. Both
these nations are industrial superpowers and both are consuming natural resources, jobs and
technological advancement within their country and of their competitors. It has led to an
environmental degradation of appalling proportions; people in different parts of the world are
losing their livelihood as jobs are being outsourced to India. (Meredith, 2008). Similarly, because
labor market is cheap in China, the worlds factories are all establishing themselves in China

this may mean a rise in Chinas economy, but statistics show that laborers in their home countries
are losing their source of income and Chinese workers are exploited for they are paid a minimum
wage that is less than a dollar. (Meredith, 2008). Looking at these trends of the modern economic
globalization, the Gandhian perspective of Swaraj seriously questions human values, morality,
ethics and our spiritual values. Gandhian ethics did not see a difference in ethics and economics.
Gandhi expressed strong views regarding this ideal Chakrabarty (2006), quotes that, any form
of deprivation, like poverty was like an act of violence because it was the result of exploitation of
human beings by human beings. It is yet another violent act to do nothing to remove this
suffering.
Gandhian philosophy focused on the welfare of all, i.e.
Sarvodaya, which was a social ordering meant to include the poorest of the poor without
creating the typical economic division of the haves and have nots. (n.d., p. 191). Mainstream
economics of growth on the other hand creates divide because despite the economic growth, the
gap between the opulent and the poor become bigger and bigger. The current condition of the
world seems the same. According to the United Nations Development Programme (UNDP), the
data in 2010 reflects that 29.8% Indians live below the national poverty line. Despite its meteoric
rise over the last decade and with a growth rate of 5.7% as of 2013, many communities in
various parts of India are still subject to abject poverty.
At the heart of the Gandhian ideology of development lays the
road to sustainability. (Mishra, 2012). Gandhi promoted Swadeshi, i.e. localizing goods and
services and giving agency to the people in the rural parts of the country. In addition, he
advocated that true sustainability could be achieved if people practice self-control over their
wants and desires, i.e. limitation of wants and self-restriction at a personal and an environmental

level. (Mishra, 2012, p. 43). With the current idea of growth and development fuelling
consumerism and competition, people have become greedier, more materialistic; the Gandhian
perspective of sustainability condemns this as immoral. (Mishra, 2012). Thus, Gandhian ethics
rejects the idea of economy or the economic man for there is a moral code of conduct attached
to it. Where economic progress is measured in the amount a country produces and what its
people earn, Gandhian ideology measures progress by the effects of ones actions on the bodies,
souls and spirits of the people attached in it.
Inclusive growth policies are carried out by governments and
private investors with the notion of providing equal opportunities to people. As discussed earlier,
many of the policies do work within a given time frame, but its sustainability is still questioned.
This is because despite the formulation of policies and encouraging trade for growth, the
assumption of creation of wider inequalities still prevails. (Pandey, n.d. ). The problem with trade
is that it creates winners and losers, and the losing end is usually the country with poor political,
social and economic clout. Gandhi believed in sustainability and he wanted a society and a
country which did not have the need to create inclusive policies for the poor, or provide poor and
other marginalized groups to be included on the basis of quotas. His picture of Swaraj was one
where people lived in harmony with oneself, were trustees of one another and were at peace with
the environment. (Gandhian Model of Development, n.d.). He believed in creating labor
intensive socially cohesive societies, where every individual had means to work and use their
hands and feet. (Gandhi, 1938). Furthermore, he emphasized on the use and consumption of local
produce in terms of agriculture, attire, everything. His belief that Swadeshi was a way to true
home rule and economic freedom. With an ideal philosophy as such, it is difficult to incorporate
his ideals into inclusive growth policies. However, if governments and policymakers recognize

the value of the Gandhian model of development and are able to incorporate some of his beliefs
of sustainability in inclusive growth policies, then that could probably make for a more equal and
equitable society.
Conclusion
The principles of inclusive growth and Gandhis Swaraj stand in
stark contrast to one another. Where one ideology promotes economic growth or broad-based
growth that includes various sections of deprived individuals, Gandhian Swaraj shows people a
path to self-discovery where everyone is equal and is at peace with themselves. His idea
incorporated moral values with economics, which mainstream economics rejects. Mainstream
economics is a driving factor for capitalism and globalization. This era of globalization has made
economists, governments and individuals at all levels question; if the world will be able to
sustain itself with the rising level of consumption patterns, degrading environment to stimulate
industrialization and increasing level of inequality in the world. Gandhis Swaraj could probably
be the answer to overcome these issues if incorporated with growth policies.

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