Making Right to Work Fundamental

Author(s): V. M. Dandekar
Source: Economic and Political Weekly , Mar., 1991, Vol. 26, No. 11/12, Annual Number
(Mar., 1991), pp. 697-699+701-703+705-708
Published by: Economic and Political Weekly

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 Making Right to Work Fundamental
V M Dandekar

The demand to make the right to work afundamental right in the Constitution is not new. The issue h
once again been brought into focus by both the election manifesto of the National Front and the subsequent
discussion initiated as also by the Approach to the Eighth Five-Year Plan (1990-95) whose central thrust is employ-
ment generation.
This article argues that there are two aspects to the question: one, the legal implications, and two what the
state can do to ensure such a right. The author examines both aspects together with a view to establishing how
the right may be made fundamental without imposing on the state a burden beyond its capacity.
THE present discussion and debate on the and in the event of its failure to provide work ensuring a decent standard of life and
right to work has its origin in the promises work, give them employment assistance, and full enjoyment of leisure and social and
the National Front made in its election thus honour the long ignored directive prin- cultural opportunities' in article 43 will have
manifesto released on the eve (October 21, ciples enshrined in article 41 of the Constitu- to be more precisely defined and defined in
1989) of the general election to the Ninth tion"? The important difference now is that a manner that the rights of citizens do not
Lok Sabha. The manifesto stated: the previous government was committed to go beyond the economic capacity of the state
The National Front believes that every this position. Naturally, there is now an ac- as article 41 clearly requires. For instance,
citizen has the right to productive and gain- tive debate on the pros and cons of this 'adequate means of livelihood' cannot be
ful work in order to live meaningfully and commitment. more than what the average per capita na-
with dignity. The social and economic policy There are two parts to this question. One tional income can provide and 'a fair wage'
of the National Front will be geared to the is the legal implications of making the right cannot be more than the same national in-
realisation of the 'Right to Work' as a fun- to work a fundamental right. The second is come per adult of working age. Even this
damental right of the citizens of India. what the state can in fact do to fulfil the will require an entirely equal distribution of
We have to find productive work for the right to work. The two parts need to be con- national income; and if this is not considered
people at wages that are commensurate with
sidered together so that making the right to politically feasible, economically advisable,
the human needs and dignity. It is well within
work fundamental may not place a burden or operationally practicable, what may be
our means to generate socially productive
on the state beyond its means. legally guaranteed will have to be much less
employment on a scale necessary to convert
Though reference is usually made to ar- than the average.
the right to work into a reality. As a first step,
ticle 41 of the Constitution, there are in fact National Front's election manifesto uses
new Employment Guarantee Schemes will be
introduced all over the country. To realise three articles, namely 39, 41 and 43, which similar imprecise and even loftier phrases
conditionsof full employment, an alternative are relevant to right to work. Article 39 such as 'right ... to live meaningfully and
strategy of social and econonlic development relates to right to an adequate means of with dignity' and 'wages that are commen-
will be followed which accords primacy to livelihood; article 41 relates to right to work surate with the human needs and dignity'.
development of agriculture and allied oc- and to public assistance in case of unemploy- The difference between an election mani-
cupations, with investment on building up ment. Article 43 relates to right to work, and festo and a legislative bill needs to be kept
infrastructure of essential physical and social to a living wage. The three articles read as in mind.
services in villages and towns. Production of under: Article 41, while directing the state to
basic consumer goods will be reserved for Article 39: "The state shall, in particular, make provision for securing right to work
cottage and small industries. direct its policy towards securing-(a) that the and to public assistance in case of unemploy-
On December 3, 1989, prime minister citizens, men and women equally, have the ment, explicitly recognises that it may not
V P Singh in his first broadcast to the na- right to an adequate means of livelihood." all be within the limits of the state's
tion after assumption of office, said: Article 41: "The state shall, within the limits economic capacity. National Front's election
"Human resources is our country's greatest of its economic capacity and development, manifesto shows no signs of such recogni-
asset. Unemployment stands in the way of make effective provision for securing right tion of limits of state's economic capacity.
proper utilisation of this resource. We will to work, to education, and to public It confidently asserts: "It is well within our
make the right to work a part of the Con- assistance in cases of unemployment, old means to generate socially productive
stitution. This does not mean that everyone age, sickness and disablement, and in other employment on a scale necessary to convert
will be given jobs in the government. cases of undeserved want" the right to work into a reality"'
However, it certainly does mean that peo- Article 43: "The state shall endeavour to The rererence to cottage industries in ar-
ple will have a political right which will bind
secure, by suitable legislation or economic ticle 43 suggests that the framers of the
the government to adopt such policies which organisation or in any other way, to all Constitution thought that promotion of cot-
can generate work for the unemployed" On workers, agricultural, in4lustrial or other- tage industries was at least one means to
January 1, 1990, the government announced wise, work, a living wage, conditions of work secure, to all workers, work, a living wage,
its intention to introduce a bill in the budget ensuring a decent standard of life and full and conditions of work ensuring a decent
session of parliament to include the right to enjoyment of leisure and social and cultural standard of life and full enjoyment of
work as one of the fundamental rights. opportunities and, in particular, the state leisure, etc. After 40 years, the drafters of
The demand to make the right to work a shall endeavour to promote cottage in- National Front's manifesto seem to hold the
fundamental right in the Constitution is not dustries on an individual or co-operative same position when they propose that 'pro-
pew. Political parties, trade union leaders,basis in rural areas"' duction of basic consumer goods will be
and others have been demanding the right These articles are all listed under the direc- reserved for cottage and small industries'.
to work as a legal right. An official expres- tive principles of state policy and not under New elements in National Front's
sion of this demand appears in the report fundamental rights and therefore they are manifesto are the proposal to introduce
of the Estimates Committee (1978-79) of the not justiciable. The proposal now is to make all over the country 'new Employment
Sixth Lok Sabha: "The time has now come the right to work fundamental and thus Guarantee Schemes' and 'an alternative
when the citizen's right to work should be justiciable. Hence, phrases such as 'the right strategy of social and economic development
recognised, and the state should accept to an adequate means of livelihood' in arti- which accords primacy to development of.
responsibility to provide work to its citizens cle 39 and 'a living wage' and 'conditions of agriculture and allied occupations", and/to

Economic and Political Weekly Annual Number March 1991 697

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investment on building up infrastructure of
esse'ntial physical and social services in
villages and towns'. These are elaborated in
the 'Approach to the Eighth Five-Year Plan
(1990-95)' which the Planning Commission
released in May 1990. We shall turn to them
in due course.
V P Singh's statement in his first broad-
cast to the nation on December 3, 1989, was
more circumspect. Evidently, V P Singh had
chosen his words carefully. He did not say
that his government would make the right
to work a fundamental right under the Con-
stitution; he only said that his government
would make the right to work 'a part of the
Constitution'. As we have seen, the right is
one of the directive principles of state policy state shall do to ensure it. It reads as follows:
and as such is already a part of the Con-
stitution. V P Singh also refered to the right economic system by steady growth of the
to work-as a 'political' right and not a 'legal'
right. Probably, the choice of these words
were not meant to mean what is being sug-
gested here and V P Singh meant that his
government would make the right to work
a fundamental right under the Constitution
and hence justiciable. But he made it clear
that the right, political or legal whatever it
is, 'does not mean that everyone will be given
jobs in the government' but only that it 'will
bind the government to adopt such policies
which can generate work for the un-
employed'. This seems prudent. But one
wonders what will be justiciable in it.
Besides the drafters of the National
Front's election manifesto, there are some
other advocates of making the right to work
a fundamental right who also do not
recognise any limits on the state's economic
capacity which the framers of the Constitu-
tion recognised. They owe their allegiance
to the United Nations and derive their in-
spiration from the Universal Declaration of
Human Rights. At about the same time that
the Indian Constitution was being given the
final shape, that is, in 1948, the United
Nations unanimously passed the Universal
Declaration of Human Rights. Article 23(1)
of this Declaration specifically lays down
that "everyone has the right to work, to
free choice of employment, to just and
favourable conditions of work and to pro-
tection against unemployment".3 D
Malcolm Adiseshiah pointedly mentions
that India not only voted for the Declara-
tion, but took an active part in its formula-
tion, and actually provided the chairperson
for that session of the general assembly and,
therefrom, argues: "India is therefore
morally bound to incorporate the Right to
Work in its Constitution and laws".4
Presumably, all the member states of the
United Nations voted for the UN Declara-
tion of Human Rights but one wonders how
many of the capitalist countries have incor-
porated in their constitutions the right to
work as a fundamental right. Article 26 of
the Japanese Constitution framed in 1946
provides for right to work as a fundamen-
tal right; but- that was before the UN
Declaration of Human Rights and we do not
know whether, in Japan, it is justiciable in
698 Economic and Political Weekly Annual Number Marh 1991
13.234.121.200 on Mon, 12 Feb 2024 22:34:37 +00:00
the sense that an unemployed person can go full and immediate implementation, along
to the court and compel the government to with such compensation as is appropriate.
give him work. In most developed capitalist This will keep the government authorities in
countries, the right to work is guaranteed in a constant state of preparedness, through
the sense that there is social security and review and updating of data by district,
unemployment insurance. Creating and block and village, on the state of employ-
giving work is a different matter. ment and unemployment in each locality,
It is only in the socialist countries that the together with provision through a shelf of
citizens have a right to work in the sense of work projects in each block to meet this
right to employment and not to unemploy- demand for work: or, in the alternate, make
ment benefit as an alternative. But, even adequate social security provisions to main-
here, one is not sure that the right is tain the unemployed person and his/her
justiciable. For instance, Article 40 of the family with the needed food, clothing and
1977 Soviet Constitution mentions a right to housing".6 This is a vivid description of
a 'guaranteed employment' but immediately, how the right to work, once it becomes
in the second paragraph, clarifies what the justiciable, will be exercised. But it is all too
brief and will bear some elaboration.
"This right is ensured by the socialist As Adiseshiah says, 'anybody car) go to
the court'. In fact, we suspect, everybody will
productive forces, free vocational and pro- go to the court, not so much to enforce
fessional training, improvement of skills, his/her right to work but, to secure whatever
training in new trades or professions, and compensation and social security provisions
development of their systems of vocational he/she may get. In consequence, there will
guidance and job placements' It is thus clear be a vast expansion of employment itt the
that the duty of the state is to-make every entire judicial system, public and private,
citizen fit for employment. It does not ap- formal and informal. To meet this challenge,
pear that, even in the Soviet Union, an government must remain, as Adiseshiah ex-
unemployed person can go to the court and plains, 'in a constant state of preparedness,
compel the state to give him a job.5 India through review and updating of data by
could follow this example and, after mak- district, block and village, on the state of
ing the right to work a fundamental right, employment and unemployment in each
add that 'the right shall be ensured by the locality, together with provision through a
state adopting such policies which can shelf of work projects in each block to meet
generate work for the unemployed'. There this demand for work. Our suspicion is that
will be hardly anything justiciable in this new such a state of preparedness will by itself
fundamental right and it will not create any employ all the unemployed and no other
new problems in the economy. But one nevcr work project may be necessary; all work pro-
knows. Some one may go to the Supreme jects may remain on the shelf for ever.
Court with a writ petition that the govern- It is sad and surprising that, for some four
ment was not 'adopting such policies which decades after the Constitution directed the
can generate work for the unemployed' and state to secure for every citizen the right to
hence not ensuring the fundamental right to work, this simple legislative device to mae
work. And, the Supreme Court may sit in that right a reality and tackle 'at long last
judgment and decide one way or the other. the massive problem of poverty in the coun-
The courts have often shown inclination and try' escaped the attention of all. Adiseshiah
willingness to decide on issues which one bemoans: "Some four decades after
would have thought were outside their independence, the absence of this right in
jurisdiction. Indian Constitutional and legislative
In any case, Adiseshiah would not approve jurisprudence is not only a serious lacuna
if the right to work is not made justiciable in our legal structure, it is the major factor
and enforceable in practice. He insists that accounting for the persistence of mass
"7
the 'right has to be justiciable, if it is to be poverty and destitution in the economy"
effective and operatiQnal'. Any individual But never too late.
could then go to court and get the right to To make the right to work a fundamental
work enforced. It could also be in the form right and therefore justiciable, it will have
of public-interest litigation where the fun- to be defined in much greater detail so that
damental right of any citizen or a group of it may be legally enforced. An initial
citizens can be agitated at the concerned clarification needed is whether the right to
courts of law for its enforcement. Adiseshiahwork should also include right to a free
describes how the right to work will then choice of employment. For instance, the UN
become effective and operational. He says: Declaration of Human Rights lays down
"In making the right to work part of the that everyone has not only right to work but
Constitution's section on fundamental also right to a free choice of employment.
rights, there is acceptance of the justiciable
Article 6 of the International Covenant of
nature of this right. This aspect-its Economic, Social, and Cultural Rights also
justiciable character-is essential as a means recognises the right to a free choice of
of tackling at long last the massive problem employment. It says: "The state parties to
of poverty in the country. Under this facility, the present Covenant recognise the right to
anybody can go to court challenging the work, which includes the right of everyone
government, the State or the Union, for the to the opportunity to gain his living by work
non-fulfilment of the right and demand its which he freely chooses or accepts....
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The Employment Policy Convention of the right and it does not help to say that it wouldfundamental,rights they will prove disastrou
Ipternational Labour Organisation (ILO) not exclude any individual. to the economy.
does the same. Article I of the Convention In the Soviet Union, along with the right It is obvious that the occasions when
provides that "each member [state] shall to work goes the right of choice of occupa- government offers work on demand must be
declare and purstue, as a major goal, an ac- tion; but there it is circumscribed differently. kept to a mini'mum. Reliance must be on the
tive policy designed to promote full, produc- Article 40 of the 1977 USSR Constitution economic system on its own generating suf-
tive and freely chosen employment"9. India sets out the rights of citizens to work, ficient employment. It is only to the extent
is a party to all these declarations, covenants, including the right of pay in accordance with that the economic system fails to provide
and conventions. So, as Adiseshiah would the quantity and quality of work done, and employment to all and there is left a residue
say, we are indeed morally bound. right of choice oF trade, profession, and type of unemployment that the government's
Logically, the right to a free choice of of job, 'with due account of the needs of responsibility under the citizen's right to
employment must extend even to those society'. Article 60 imposes a corresponding work should be invoked. This is well em-
already employed and, because almost obligation to work conscientiously in a plasised in the document prepared by the
nobody is happy with his/her present chosen, socially useful occupation and to ministry of labour. It says: "The overall
employment, we shall have to begin virtually observe discipline. There are two points to approach to the concept of right to work has
on a clean slate with the state becoming a note. First, the right to choice of occupation essentialy to be that of creating conditions
vast employment exchange trying to locate is qualified by the 'needs of the society' and for the people to find productive work in the
everyone in a-job of his/her choice and fin- that the cfiosen occupation has to be process of development.... However, the
ding it impossible to do because the demand 'socially useful'. Thus the right of the in- inclusion of right to work as fundamental
for certain types of jobs far exceeds available dividual is balanced by his obligation right in the Constitution would make it
positions. Add to these those who are incumbent upon the goyernmept to provide
towards the society. The society grants the
presently unemployed and give to everyone individual the right to work and to chooseemployhment to the residuary categories of
not only right to work but also right to a his occupation, but the work must be persons who will still be unemployed or
free choice of employment and we see the socially usetul. This point is ruissed in arti- underemployed during the transition
dimension and complexity of the problem. cle 39, 41, and 43 of the Indian Constitu- period". 3 But, the document does not s'ee
It seems therefore that the right to work tion and will have to be appropriately incor- the corollary that should follow, namely, that
cannot include right to choose k poratecd When the right to work is made a special programmes to provide such transi-
Evidently, this is now officially fundamental recognAt4. right. tional employment, particularly the condi-
We shall quote from a recent document For this purpose, phrases such as 'socially tions of work and wages paid on them,
prepared by the ministry of labour for the useful' and 'needs of society'. are not robustshould not interfere with the normal process
consideration of the National Development enough to stand close legal scrutiny and may of development. It seems that some of the
Counc'il: "Right to work can be included in leave too much to the courts to interpret suggestions put forward in the documerit
the list of fundamental rights with suitable. Moreover, one must make a distinction bet- prepared by the ministry of labour will
proviso regarding reasonable restrictions, as ween what is 'socially useful' and what is affect adversely the normal process of
it would not be feasible... to guarantee right 'socially needed' and further between what developnment.
to work to every individual according to is 'socially needed' and what the society is We quote from the relevant paragraphs of
his/her qualifications, choice and able and willing to pay for. We may grant the document: "(6) The operational needs
preference'.'0 But then the document goes will be needed unless it is
that nothing will require that there has to be an effective
on to say: "It is, therefore, essential that useful. But everything that is useful may institution
not at the village/town level, that is,
along with introduction of Constitutional be needed and certainly not in quantities it an elected local body (panchayat/nagar
amendment to include right to work among may be offered. palika) in position for the right to work to be
fundamental rights, legislation is also This brings us to the second point, put into operation on a sustained basis. Ii
namely, right to work but at what wages?
adopted... to specify conditions and restric- is important that the responsibility of plan-
tions and manner under which the right to Article 40 of the USSR Constitution refers ning and implementation of works under the
work could be guaranteed"." This may not to the 'right of pay in accordance with the guarantee is entrusted to these bodies as they
work because any legislation specifying con- quantity and quality of work done. This have to bear the brunt of day to day opera-
ditions and restrictions under which a fun- means that a larger quantity and a better tions and have to satisfy those seeking work'
damental right could be guaranteed will be quality will be paid more. But it does not "(12-iii) The location of work shall ordinari-
disputed intermiiably in the courts whethersay how much a given quantity of work of ly be within the jurisdiction of the local
the conditions and restrictions are given quality will be paid. The Indian Con- authority designated fbrthe implementation
'reasonable. To avoid this happening, it will stitution, while talking about wages, does of the scheme. (12-iv) Wages paid to the
be necessary, while including the right to not even make a reference to the quantity workers will be the same as the minimum
work among the fundamental rights, to and quality of work performed" Article 39 wages for agricultural labourers/unskilled
categorically say that to exercise the right, recognises everybody's 'right to an adequate workers for that state/region fixed under the
one must be willing to do whatever work is means of livelihood' without reference to Minimum Wages Act, 1948. (12-v) If work
offered. This is hard and would undoubtedly quantity and quality of work the person willcannot be provided, as per guarantee, an
exclude some persons from exercising their perform. Similarly, article 43 recognises allowance equal to say, one-third of the
right to work. But presumably, those who everybody's right to 'a living wage, and 'con- minimum wage subject to a minimum of
ditions of work ensuring a decent standard
will exercise their rfight under this hard con- Rs 5 per day will be payable whichever-is
dition will be ihe most needy. Others must of life and full enjoyment of leisure and higher". 14
wait for some time. The labour ministry's social and cultural opportunities' again The sum total of these conditions is that
document says as much as this but with without reference to the quality and quan- the work under the guarantee will be close
characteristic equivocation. It says: "While tity of work the person will perform. The to everybody's home and hence as conve-
the provision may not exclude any individuial presumption seems to be that everybody has nient as the work in agriculture. Besides,
from the programme, it is presumed that the a right to an adequate means of livelihood there, the worker will get the wage prescrib-
really needy and poor would opt for it, and and a decent standard of life by the simple ed under the Minimum Wages Act which
it is that group that needs to be covered, in fact of being there. Such one sided com- he/she hardly ever gets in agriculture; in fact,
the first instance, on a priority basis". 2 mitments may be good in an election the small and marginal farmers do not earn
Any legal provision which places conditions manifesto. One does not know whether they this wage working on their own farms.
or restrictions on any right ipso facto are good as directive principles of state Moreover, conditions of work under the
excludes some persons from exercising that policy. But, there can be little doubt guaranteethat as will be much more easy and lax,

Emconomic and Political Weekly Annual Number March 1991 699

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 to put it mildly, because these works will be (1990-95). Its publication, by the Planning had all emphasised growth rate per se is not
planned and implemented by elected local Commission, in May 1990, has brought into fair; and, it will be equally unfair to suggest
bodies who must keep the workers happy sharp focus the approaches, old and new, to that the Planning Commission was empha-
and satisfied. As a result, workers will move planning and development in India. The sising full employment per se.
out of agriculture and seek work under the Planning Commissionw(Planning Commis- Let us first examine what is meant by
guarantee. This is the best that can happen. sion wherever used in this paper refers to thedevelopment for 'growth rate per se' and
Very likely, worse will happen. Because it is commission constituted by the National what it may result into. It means choosing
not easy to provide work in each local area Front government) sincerely believed that it that pattern of development which maxi-
on a sustained basis, rather than providing was making a sharp and radical departure mises the annual rate of growth, no matter
work, compensation will be given to any- from the past approaches. Moreover, it has what the content of development is; in par-
body and everybody who walks in at the rate the conviction that it has the popular man- ticular, no matter what one produces. If one
of one-third of the minimum wage or a date to do so. Referring to the results of the were really serious about this, the develop-
minimum of Rs 5 per day. In any case, it is last general election and consequent change ment plan would consist of a single pro-
easy and convenient for all concerned to dole of government at the Centre, it says: gramme, namely, breeding of mice, or any
out compensation money than organise The people of India have once again other fast breeding species. In this pro-
work. This will irreparably undermine the shown great democratic awareness. They gramme, employment of humans will be
entire development process and indeed the have signalled their powerful desire for minimal. Presumably, some humans will be
whole economy. change. Their mandate calls for an alter- employed in biological research to develop
To avoid this, while making the right to native model of development within the faster breeding species and in the produc-
work a fundamental right under the Con- framework of national planning. ... The tion of necessary food for the mice, or
stitution, one must move with great caution. development patterns and processes have to whatever species one is breeding, and, of
Care must be taken to avoid using such loose be explicitly oriented to-enabling everyone tocourse, in providing minimum living for the
terms such as 'adequate means of livelihood' have adequate employmedt, afford at least humans so employed. The previous planning
or 'a living wage' or such lofty terms as 'de- the minimum desirable requirement of food, commissions did not come up with such a
cent standard of life and full enjoyment of clothing, and shelter, and have access to development plan, not because they did not
educational, health, child care, and other
leisure and social and cultural opportunities' know of such a 'model' of economic growth
related services.
for the simple reason that it will leave too but because they were not seeking growth
"Meaningful development consists in
much to the Courts to interpret. It should be rate per se. They did not suggest a pro-
mobilising the skills, strength, and creative
made explicitly clear that the conditions of gramme of mice breeding, even if it could
capacities of the masses of the people and
work, including place of work, will differ give a high growth rate, because'that would
securing their participation. The reconsti-
from work to work and will be associated not increase the supply of commodities of
tuted Planning Commission has been review-
with the work that the government shall of- ing the approach to the eighth plan from this human consumption. Hence, to put it fairly,
fer. The wage can be a certain money wage viewpoint in full awareness that even after the objective of the previous planning com-
which the government shall announce at the four decades of planning, the task of ensur- missions was to maximise the rate of growth
beginning of each year. The nature and type ing full employment and even a moderate of commodities of human consumption on
of work, the associated conditions of work, minimum standard of living to everyone re-a continuing and sustainable basis and not
and the wage shall not be justiciable. These mains unfulfilled. The attainment of these growth rate per se. The composition of the
cannot be determined or improved upon in basic tasks must be the central concern of
commodities to produce is a matter of detail,
courts of law. What can be justiciable is the development strategy in the nineties'"15 and an important detail, to which we shall
right to work on any work which may be of- Again, in its Summing Up of the Ap- presently return.
fered with associated conditions of work and proach, it says: "The central thrust of the Consider next, full employment per se. It
a wage which the government shall an- eighth plan is employment. The plan will means choosing that pattern of development
nounce at the beginning of each year., Any seek to give operational content to the com- which maximises employment. To this pur-
improvement in the conditions of work and mitment to guarantee the right to work to pose, there is the famous model of digging
the wage are matters of political struggle and every citizen through appropriate develop- holes and filling them up. Of course, some
ment programmes. The development process,
every citizen has a political right to wage people will have to be employed in the pro-
properly engineered to generate additional
such a struggle. This is probably what V P duction of food and other necessities of life
employment opportunities on a sufficiently
Singh meant when he said that people will for themselves and for those-emptoyed in the
large scale and in a widely dispersed manner
have a political right which will bind the principal activity of digging holes and filling
to absorb the increments to the labour force
government to adopt such policies which can them up. The Planning Commission was not
and the backlog of unemployed and under-
generate work for the unemployed. All this suggesting such a development plan, not
employed is the only viable way of realising
sounds harsh. But that is what it is. The the cherished goal of the right to work on because it is not aware of this possibility but
country cannot afford to offer anything a continuing basis. To.repeat, emphasis is on because it was seeking full employment not
more than this. As we shall presently see, the content of development than on a growth per se but full employment in meaningful
even this is not easy to achieve. In any case, rate per se. Growth should be such as to pro- work. Digging and filling of holes is not
it will be only prudent to begin with such vide meaningful work, a reasonable mini- meaningful work because it would not in-
a minimal right and improve upon it as more mum standard of living and essential social crease the supply of commodities of human
experience gathers. amenities to everyone as speedily as consumption. Hence, to put it fairly, the ob-
As earlier said,'while making right to possible. 16 jective of the Planning Commission, we sup-
work a fundantental right, primary reliance Undoubtedly, there is a departure from pose, is to maximise employment in activities
must be on the economic system on its own the previous approaches. The Planning which will maximise the supply of commo-
generating sufficient employment. It is Commission puts it sharply by saying that dities of human consumption on a continu-
therefore relevant to assess the capacity of the emphasis now is on 'the content of ing and sustainable basis. Again, the com-
the economy to generate employment and development and not on a growh rate per position of the commodities to produce is
possible policies which may maximise this se' Of course, this is not a mere rhetoric and a matter of detail, a1nd an important detail,
capacity. In particular, we should examine we should examine what difference there, is to which we shall presently return.
whether the policies pursued in the past have or there can be. But to see what it is, it will The Planning Commission cannot also be
been unsatisfactory, if not downright wrong, be useful first to narrow down the apparent entirely indifferent to the rate of growth of
from this point of view and, if so, what differences between the old and the new ap- these commodities because, by its own terms,
reorientation is needed. This brings us to the proaches. For instance, the implied sugges- growth must provide not only meaningful
Approach to the Eighth Five-Year Plan tion that the previous planning commissions work but also a reasonable minimum stan-

Economic and Political Weekly Annual Number March 1991 701

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dard of living and essential social amenities labour force and at the same time clear the sion proposed to restructure growth in order
to everyone as speedily as possible (emphasis presentbacklog of unemployment. to accelerate growth of employment oppor-
added). If one wants to assure minimum For instance, taking into account the age tunities in the economy and put down policy
standard of living and essential social ser- composition of the population, it is esti- guidelines for the purpose. These are: "(i)
vices to everyone as speedily as possible, one mated that addition to the labour force will Economic growth would be mainly derived
is already thinking in terms of a growth rate. be about 37 million during 1990-95 and from sectors which have high observed and
Moreover, what today are regarded reasona- another 41 million during 1995-2000. To this potential employment content; (ii) Within
ble minimum standard of living and essen- we need to add the presently unemployed each major sector, growth of commodities
tial social services, cease to be so as soon estimated at 28 million. Hence, to reach full and lines of production with high employ-
as, or even before, everyone gets them, employment by L995 will need 28 + 37 = 65 ment intensity would be accorded high
because expectations rise. Besides, of course, million new jobs to be created during priorities, subject, of course, to the overall
there is the fact of increase in population. 1990-95. If we relate this to the present supply and demand (including export)
If we reckon these circumstances, it will be employment estimated at 300 million, it ba,lances; (iii) Wherever possible, use of pro-
hard to see how the Planning Commission means that to reach full employment by duction techniques, with higher employment
could neglect the rate of growth of com- 1995, the employment must grow at the rate potential per unit ot capital, would be en-
modities of human consumption. What then of 4 per cent per annum during 1990-95. If couraged in different production lines; and
is the difference between the old and new the pattern of development continues to be tendency towards indiscriminate and often
approaches? what it has been in the past with I per cent unnecessary increase in capital intensity
The difference, as much as we can make growth in the GDP giving just 0.38 per cent would be discouraged; and (iv) Besides
of it, seems to be the following. The previous
growth in employment, to reach full employ- reorienting public sector investment towards
planning commissions aimed at maximiiing ment by 1995 will therefore require an employment inducing sectors and lines of
the rate of growth of supply of commodities annual growth of 10.5 per cent in the GDP production, macro economic-fiscal and
of human consumption. The new approach during 1990-95. This is admittedly an im- credit-policies would be used for more ef-
aimed at maximising employment in the pro- possible task. Therefore, the same pattern fectively influencing private investment deci-
duction of these commodities. It means that, of development continuing, it is out of ques- sions in favour of the sectors and
if there is a conflict between the two aims, tion to achieve full employment by the end technologies with high employment
the previous approach would presumably of the eighth plan. potential". '9
opt for maximising the rate of growth of Even if we lower our sights and aim at full The first two, (i) and (ii), are concerned
commodities of human consumption even employment by the year 2000, it will need about what to produce; in other words, the
at the cost of some present employment; on 28+37+41=106 million new jobs to be commodity composition of the domestic
the other hand, the new approach would opt created during the decade 1990-2000 which product. The principal idea is that we pro-
for maximising present employment in the means a 3 per cent annual growth in employ- duce those commodities which have a large
production of such commodities even if that ment. With the present pattern of develop- employment content. The third (iii), is con-
meant somewhat lower rate of growth of the ment continuing, this requires an 8 per cent cerned about the techniques of production,
supply of these commodities. annual growth in the GDP over the decade the idea being that, to produce desired com-
Is there a necessary conflict between the 1990-2000. This too is an impossible task. modities, we adopt those techniques which
two objectives of maximising the rate of It is with this background of past ex- have high employment potential per unit of
growth and maximising employment? At perience and future projections of the capital. The last (iv) concerns the pattern of
least until two decades ago, no such conflict pattern of development pursued in the past investment. The proposal was to reorient it
was suspected. In fact, in the Fourth Five- that the new approach has emphasised the in favour of sectors and technologies with
Year Plan (1969-74), after a very careful con-
need to restructure the pattern of growth in high employment potential. In the follow-
sideration of the problem of unemployment, order to increase the employment content of ing, we shall refer to these four principles
it was asserted: "The principal means of production and growth, so that full employ- as the policy guidelines of a strategy for full
enlarging employment opportunities is toment get may be achieved by the year 2000 even employment. We shall examine them in that
the economy move as fast as possible with if that meant a somewhat lower rate of order.
the maximum dispersal of productive activi- growth of the GDP. For instance, if no more Let us first consider (i) and (ii). In this,
ty throughout the country.'7 The Janata than a 6 per cent annual growth in GDP is the Planning Commission was entirely
Dal Planning Commission was unconvinced considered feasible, the ratio of the rate of mistaken. To decide what to produce, it had
and concerned that employment had not growth in employment to the rate of growth chosen a very strange criterion. Having
grown pari passu with the growth in the in GDP will have to be raised from the pre- decided that the central thrust of the eighth
gross domestic product (GDP) and further sent 0.38 to 0.5 so that employment may plan shall be employment, it suggest that
that the gap between the two has been grow at 3 per cent per annum necessary to those commodities should be produced
widening over the years. For instance, dur- reach full employment by the year 2000. Fur- which have a larger employment content.
ing the quinquennium 1972-73 to 1977-78, ther, if the efforts to increase the employ- This is almost recommending digging holes
a I per cent growth in the GDP was accom- ment content of production affects the rate and filling them up and may be truly des-
panied by 0.6 per cent growth in employ- of growth and it comes down to say 5 per cribed as development for employment per
ment; and this came down to 0.55 per cent cent per annum, the ratio of rate of growth se without concern for what one produces.
in the next quinquennium 1977-78 to in employment to that in GDP will need fur- The caveat that the choice of what to pro-
1982-83. There was a further and steep ther raising to -0.6 per cent. And, if this duce must be subject to overall supply and
decline in the next quinquennium 1982-83 brings down the rate of growth in (JIP to demand balances appears to have been add-
to 1987-88 when, for I per cent growth in say 4, the ratio will need raising to tb'.<. ed rather casually as though some economic
the GDP, there was only 0.38 per cent growth cent. The moral of this arithmetic is that the adviser to the Planning Commission mut-
in employment'8. This means that even Planning Commission, while emphasising tered 'supply and demand balance' and the
with a rate of growth of'5 per cent per an- employment, must take care that it does not Planning Commission graciously said: "Yes.
num, which is not quite easy to achieve and adversely affect the rate of growth, if for no Of course" The Commission did not show
maintain, employment will grow only at 1.9 other reason, because that will make its own even elementary grasp of what this means
per cent which is less than the rate of growth task of reaching full employment by the year and implies. In fact, that caveat undermines
in population. Clearly, if the same pattern 2000 more difficuilt. The Planning Commis- the first two directive principles which
is to continue in future, a much higher rate sion cannot be entirely indifferent to the rate together require that we produce those com-
of growth will be necessary to provide of growth. modities which have a large employment
employment to the new entrants to t he Be that as it may. The Planning Commis- content. Supply and demand balance re-

702 Economic and Political Weekly Annual Number March 1991

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qtiires that decisions regarding which com- not all that remote or hypothetical. In fact, son. The principle (iii) clearly applies. Pro-
modities to produce must be taken in for the Planning Commission, it is almost bably the use of copying machines is a case
response to the demand for these com- immediate. If it is serious about maximising of what the Planning Commission calls
modities and not on the basis of their employment, it may as well begin at home; 'tendency towards indiscriminate and often
employment content. For a moment, let us it may prohibit the use of carbon paper and unnecessary increase in capital intensity' and
suppose, as the Planning Commission im- expand the employment of typists at least persumably will want to discourage it.
plies and seems to believe, that the com- a fewfold. The Planning Commission is aware,that
modities which shall provide a reasonable Presumably, the Planning Commission it is 'not writing on a clean slate' and
minimum standard of living and essential would not opt for this and instead allow the
therefore proposes to begin changing prio-
social amenities to everyone shall in fact be use of carbon paper. Of course, it would be rities in respect of new investments. That
demanded. In that case, these commodities, right in this decision but it should know why. brings us to the policy guideline (iv), name-
in needed quantities, will have to be produc- The reason simply is that the technique of ly 'to reorient public sector investment
ed, if not today, as early as possible, nc typing with no carbon paper uses both more towards employment inducing sectors and
matter what their employment content is. capital and more labour without adding to lines of production, and use macro econo-
The principles (i) and (ii) must be set aside. the output; it uses both extra capital and ex- mic-fiscal and credit-policies for more ef-
They are wholly erroneous. tra labour unproductively. In economic fectively influencing private investment deci-
But commodities can be produced by dif- terms, it is an inefficient technique. That is sions in favour of the sectors and techno-
ferent techniques or technologies which re- the reason why it has been discarded and, logies with high employment potential' In
quire different amounts of employment and hopefully, the Planning Commission, will the present case of typewriters versus copy-
this brings us to the principle (iii), namely, not revert to it. It is of no relevance that the ing machines, it will probably prohibit use
wherever possible, use of production techni- capital to labour ratio is the same in the two of copying machines in public sector esta-
ques, with higher employment potential per techniques. blishments. In the private sector, it will en-
unit of capital, would be encouraged in dif- This is by no means a queer case. It is like- courage investment in typewriters and
ferent production lines. The Planning Com- ly to be true of most outmoded techniques discourage investment in copying machines
mission did not explain what it means by the of production. For instance, hand-spinning by lowering the excise duties on typewriters
qualification 'wherever possible'. We shall and hand-weaving, compared to mill-spin- and raising them on the copying machines;
interpret it liberally to make sense. ning and weaving, uses less capital per or by giving development rebate on type-
A choice of technique is available and worker; but it cannot be supported on that writers but not on copying machines. It will
possible when there are two techniques pro- ground. Because, it can be demonstrated that also encourage production of typewriters
ducing the same quantum of output but with it requires both more capital and more and discourage production of copying
different proportions of capital and labour, labour per metre of cloth produced. In the machines by offering more liberal credit to
that is to say, where one technique, in com- choice of techniques, arhount of capital the former and restricting it to the latter. It
parison with the other, employs more labour needed to employ a worker cannot be the will of course not approve any foreign colla-
per unit of capital. The new approach asks deciding factor. The relevant considerations boration for the manufacture of copying
that the technique using more labour per are the amounts of capital and labour a machines.
unit of capital should be used. An implied technique uses to produce a given output. The case of typewriters versus copying
assumption is that such a technique uses If, of two techniques, one uses both more machines illustrates major issues involved in
more labour but less capital per unit of out- capital and more labour to produce a given the choice between labour-intensive and
put. But this is not generally true. It is not output, that technique is simply inefficient capital-intensive technologies. In spite of
uncommon that of two techniques produc- in the sense that it uses productive resources their adverse effect on present and prospec-
ing the same output, the one using more wastefully. It cannot be accepted on any tive employment, capital-intensive techno-
labour does not use less capital; it uses both rational grounds. A closer, case by case, ex- logies are adopted because they improve
more labour and more capital per unit of amination will show that this is the case with labour productivity which is considered the
output. most traditional techniques of producing hallmark of economic development. They
Consider a typist with a manual type- commodities of mass consumption. are favoured both by the employer and the
writer who, using carbon paper, makes I+ 4 Let us consider a more favourable case employees, at least the fortunate ones who
copies. Notice that, by simple device of where, of two techniques, one uses the same continue to remain employed. The employers
a carbon paper, which does not need a great amount of capital but more labour to pro- favour them because they case the problems
deal of additional capital, he does the work duce given output. Continuing the case of of labour management; the number of
of five typists and has therefore displaced typewriters, we shall consider a more labour- employees is reduced and they can be paid
and thrown out of employment four other saving technique than the carbon paper for higher wages and kept happy. The employees
typists. There is therefore a case for making copies, namely, the copying machine. approve because, through higher wages, they
abolishing carbon paper and providing Thus we have two techniques to choose share the benefits of improved labour
employment for five typists instead of one. from: one is the manual typewriter and the productivity.
Let us call these two techniques (1) typing other is the copying machine. Let us suppose The Planning Commission would not ap-
with carbon paper and (b) typing with no that the cost of a manual typewriter is prove. It is as if capital which could employ
carbon paper. To simplify the argument, we Rs 5,000 and that of a copying machine 20 typists is all piled up on one worker, the
shall neglect, as negligible, the capital cost Rs 1,00,000; and let us further suppose that operator of the copying machine, and he and
of carbon paper required by technique (a), 20 typists with 20 typewriters do the work his employer get the benefit of technological
and we shall also neglect, though it is by no of one copying machine, which of course is progress while 19 typists are thrown out of
means negligible, the capital cost of addi- a very doubtful proposition. Thus, the two present or prospective employment and
tional office space which technique (b) will techniques have the same capital cost of denied even minimum living. Thus viewed,
require. On these assumptions the capital Rs 1,00,000; we neglect the fact that 20 the adoption of a labour-intensive tech-
cost per worker is the same in the two cases,manual typewriters require 20 times as much nology is a method of distributing given
namely, one typewriter per typist. But typ- office space as does one copying machine. amount of capital among a larger number
ing with no carbon paper uses five times as The manual typewriters employ 20 times as of workers. That keeps the productivity of
many typewriters, that is, five times as muchmany persons as does a copying machine labour low but more are employed. The
capital and five times as much labour as with the same capital; they require only typewriters have the advantage that they
does typing with carbon paper producing the Rs 5,000 worth of capital to employ a per- come in a form such that the same amount
same output. The choice to be made, son while the copying machwine requires of capital as embodied in a copying machine
wvhether to use or not use carbon pap-er, Rs 1,00,000
is worth of capital to employ a per- can be shared by 20 workers instead of one.

Economic and Political Weekly Annual Number March 1991 703

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What is suggested is that, while capital is in reduction in wages. Of course, such formal particularly manufacturing, activities in
short supply, the available capital should be reduction in working hours and wages is rural areas, including rural towns; (iv) em-
so used that everybody gets employed how- conceivable only in the organised sector and phasis on small and decentralised segments
soever low may be the labour productivity. hence possibly somewhat greater reduction of the manufacturi'ng sector 'as a major
It is presumed that, as a corollary, everybody in the working hours and wages will be source of industrial growth, particularly in
would accept a low enough wage commen- necessary to relieve unemployment. Also, to the production of.consumption goods and
surate with the low labour productivity. Then, make the same capital equipment available manufactured exports; (v) large scale pro-
technology should progress gradually, step for the employment of a larger number, the grammes of construction both of infrastruc-
by step, so that, in the process, no one is reduction will have to be not in daily work- tural and residential accommodation; and
thrown out of employment and wages would ing hours but in the annual working hours (vi) expansion and strengthening of social
rise in step with the rise in productivity. In such as by granting more leave; or reduction infrastructure, education and health, par-
other words, capital should remain, at all in the working life by lowering the age of ti'cularly in rural areas. These are all iden-
times, widely distributed and almost every- retirement. These are matters of detail. The tified as being 'sectors and sub-sectors with
body should find some capital to employ important point is that such distribution of high employment intensity'.20 They may
himself with. employment by reduciion in the working well be. But most of them could be chosen
Unfortunately, that is not how technology hours will not be detrimental to techno- on quite independent grounds. For instance,
progresses. Evvn if the Planning Commis- logical progress and in fact will allow the having achieved a certain level of agricultural
sion were writing on a clean slate, which it workerm'full enjoyment of leisure and social production by concentrating on agrikultural-
knows it is not, it could not arrange such and cultural opportunities' as article 43 of ly more favourable areas, it is only right that
a controlled technological progress. Techno- the Constitution requires. agricultural development should now move
logy has its own dynamics. It does not pro- This is not as'bizarre as it sounds. In the to less favourable areas not because the
gress evenly and uniformly across the Soviet Union, in 1927, when unemployment development there is necessarily employment
economy. At no point, labour productivity Was still persistent, there was a decision to intensive; in fact, it is'not unlikely that
and hence wages are the same in all lines of reduce the standard working day though, development in many unfavourable areas
production and in all firms or establishments because of the switch to rapid industrialisa- will require large amounts of capital.
in the same line of production. Workers tion between 1927 and 1929, this became Similarly, in the areas with relatively
employed with lower productivity technolo- largely unnecessary. More recently, in the developed agriculture, diversification of pro-
gies and therefore with lower wages are not depression of the 1970s, to fight growing duction into non-staple high value crops is
'happy and satisfied. They look to the wages unemployment, the socialist government of a natural process and it should be supported
which workers employed with higher pro- Mitterrand in France had proposed to reduce and promoted not because it is necessarily
ductive technologies get and ask for the the working hours and the trade unions had employment-intensive-but because there is
same or similar wages. Employers respond agreed. But, when the decision was about demand for the products. Growth of non-
by adopting higher productive technologies to be given effect to, it was realised that, agricultural, particularly manufacturing, ac-
and thereby reducing the present or poten- characteristically, the trade unions had tivities in rural areas is necessary to make
tial employment. In fact, the employers are agreed to reduction in working hours but not the rural life more diverse and to keep the
in continuous search of more productive to any reduction in wages. Of course, the unemployed and the underemployed from
technologies often in response to, sometimes scheme would not operate if, along with the moving into urban areas in search of jobs.
in anticipation of, demand for higher wages. reduction in working hours, the workers That such industrial development has to be
That is how technology progresses. Curbing would not accept proportionately lower in small and decentralised segments is also
or otherwise restraining this process by fiscalwages. inevitable. But it does not have to be and will
and credit policies will prove detrimental to In India, in the context of educated not necessarily be employment-intensive. If
economic development. In this environment, women's employment, this may prove to be it is in the shape of small but modern in-
if one deliberately fosters a low productive a practical solution. Rather than saying that dustrial units, the employment intensity
technology, the wages of workers so only one job will be given to each family and there is unlikely to be very different from
employed will have to be highly subsidised thus effectively keeping women out of what it is in theircounterpart in urban areas.
and the technology will prove unsustainable. employment, it would be just and fair to of- None of these propositions signals any
This is what has happened to the khadi pro- fer part-time jobs when both husband and radical departure from the pattern of
gramme of the Khadi and Village Industries wife desire to work. Equality of status bet- development pursued in the past. It is
Comrnission. ween men and women requires that men notable that, in none of these, the Planning
The developed capitalist countries have share with women both paid outside work Commi'ssion explicitly insists on employ-
opted for high productivity technologies and unpaid h6usehold work. ment-intensive technologies. It does not
coupled with social security and unemploy- Let us leave it at that. In any case, these explicitly debar agricultural machinery nor
ment benefits to the unemployed. This seems are not the suggestioqs coming from the does it explicitly suggest that the growth of
to be appropriate where unemployment Planning Commission. Let us return to more manufacturipg activity in the rural areas
arises either from lack of demand or is fric- specific proposals, besides the general should be in the field of traditional village
tional and temporary. In India, unemploy- guidelines discussed above, coming from the industry. Probably it does not feel so cer-
ment is due to shortage of capital and is Planning Commission. Here, fortunately, tain when it comes to specifics.
therefore endemic. Hence, we cannot accept advocacy of labour-intensive technology ap- Therefore, the first four elements (i) to (iv)
eit'her low productivity technology or un- pears to be more of a stance than a serious of the strategy mRentioned above are unlikely
employment benefits. In other words, we proposition to be pursued case by case. to raise more t-han marginally the employ-
need to distribute available capital among Major elements of the proposed strategy to ment content of production and growth. If
a larger number without rejecting high pro- achieve full employment by the year 2000 the ratio of rate of growth in employment
ductivity technology. One way is to reduce are: (i) a rapid and geographically diversified to rate of growth in GDP is presently 0.38,
the working time. For instance, as mention- growth of agriculture so that the hitherto it may rise to say 0.40 but no more; and that
ed earlier, the estimated labour force in 1990 lagging regions have a major share in agri- will still require 7.5 per cent annual growth
is 328 million of which 300 million are cultural growth during the 1990s; (ii) diver- in the GDP to reach full employment by the
employed while 28 million are unemployed. sification of agriculture into non-staple high year 2000. Reportedly, the eighth five-year
In other words, 8.5 per cent of labour force value crops, particularly in areas of relatively plan as finally approvedby the government
is unemployed. This can be relieved by, say,
developed agriculture; (iii) development of aims at a 5.5 per cent rate of growth in the
a 10 per cent reduction in working hoursanofappropriate support and policy frame- GDP and a 3 per eent rate of growth in
the employed together with corresponding work for the growth of non-agricultural, employment. This means that the ratio of

Economic and Political Weekly Annual Number March 1991 705

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rate of growth in employment to rate of Enterprises are allocated ambitious plans for employment in the social infrastructure and
growth in GDP is expected to rise, from the incremental output and liberal soft budgets. employment in the creation of physical in-
present 0.38, to 0.545. The elements (i) to Because performance is judged by fulfilment frastructure. First, by and large, employment
(iv) of the new strategy by themselves are of the targets and, since prices of materials
in the social infrastructure-teachers, doc-
unlikely to achieve this. and wages are held down, enterprises resort tors, nurses, public health engineers, etc-
The real employment potential lies in the to speculative hoarding of materials and will be educated and skilled; of course, there
last two elements (v) and (vi), namely, ex- labour creating excess capacity. As a result,
will be some unskilled employment at the
pansion and strengthening of physical and there is excess. monetary demand for materials
bottom such as in conservancy services. Se-
social infrastructure; soil and water conser- and labour. Industrial materials have to be cond, the employment here will be of a per-
vation and development; afforestation; roads rationed and an iuformal wholesale market manent or continuing nature; a social ser-
and other communications; electricity and emerges. What is true of materials is also vice once established will have to be con-
other energy; education; public health, true of labour. The enterprises resort to tinued in future. Third, the employment will
hygiene, and protected drinking water. All hoarding of labour and conceal labour be stationary in the sense that it will be
these, including education and health, are reserves. This is how unemployment is loeated at a given place subject only to rules
in the nature of investment and fortunately eliminated and there appears an all round of transfers.
mostly public investment. Their employment shortage of labour. Organisational problems of expanding
potential is well known. But, resources Because of the almost exclusive concern and strengthening major social infrastruc-
devoted to them in the past have been in- for capital construction, the production of ture are also relatively simple and we have
adequate because they were devoted in large consumer goods and services is neglected enough administrative experience for the
part to heavy and basic industry and to some and their supply falls short of demand purpose. Even a moderate expansion and
extent to irrigation; and that was necessary. generated by even the low money wages of strengthening of education and public health
But now, there is need to reorient public sec- workers. But the prices are kept down. The and supply of protected drinking water can
tor investment largely to physical and social result is rationing, long queues, illegal ex- absorb almost all the educated unemployed.
infrastructure. If necessary, and with limited changes on the retail market, and frustrated All that is needed are financial resources to
resources that will be necessary, other areas consumers. Cash accumulates with the pay the salaries. In comparison, we have
of investment may have to be left to the households because there are no commodi- paid inadequate attention and have little ex-
private sector where private sector invest- ties to buy. perience in the matter of public hygiene,
ment is forthcoming. Ideological positions One consequence of such an overfinanced sanitation, and conservancy in rural areas.
on public and private sectors will have to be economy and repressed inflation is lack of The reason primarily is wrong cultural
revised. labour discipline and morale. In capitalist values deep in the Indian society. To keep
There are many and serious problems in economies- labour discipline is fostered our villages clean will need at least a.million,
using capital construction, or capital creat- through economic competition-the threat not necessarily educated but motivated, per-
ing works or programmes, as major avenues of dismissal and lure of bonuses. In the sons. They should be paid the salaries of
of providing employment and, so to say, Soviet economy, these competitive market school teachers, first to compensate for the
soaking up pools of unemployment and disciplines are rendered ineffective by over- unpleasantness of the task and second, to
underemployment in rural areas. Rather financing of enterprises and households. impress upon the people that their task is
than discussing them hypothetically, it will While enterprises hoard labour, labour does not just to sweep the streets but also to
be useful to briefly review the Soviet ex- not work. Disguised unemployment, once a educate the public in hygiene and sanitation.
perience in the matter and draw lessons rele- feature of backward agrarian Russia, now Apart from the cultural value of cleanliness,
vant to our circumstances.21 emerges in the modern world of Soviet of- even in pure economic terms, investment in
In the 1920s, the Soviet Union was charac- fice and giant factory. Workers might as well public hygiene and sanitation will show large
terised by widespread rural underemploy- be redundant, but their dole is simply paid returns in terms of saving in medicines. As
ment and open urban unemployment typical out as a wage by the factory, not by the the Planning Commission has suggested,
of backward agrarian economies. By the end labour exchange. It means that for most most of these subjects may be left to the
of the decade, unemployment had been workers for most of the time the pace of local government at appropriate levels. The
eliminated. Since then, there has been a vir- work is slow and irregular with plenty of op- responsibility of the Central and State
tual absence of involuntary unemployment portunity for tea breaks and unauthorised governments shall be to provide adequate
and, indeed, an almost systemic labour shor- absences. Labour is fully employed but funds shared on an agreed basis.
tage in the Soviet economy. All this was poorly utilised. The problem of securing In contrast, employment in the creation
achieved not by a legal enforcement of a labour discipline runs deep in Soviet life. of physical infrastructure is a very different
justiciable right to work but by a political, What is worse, these problems seem to stem matter. By and large, it is unskilled and tran-
often brutal, enforcement of the duty to from basic features of the economic system, sitional; employment on roads, and soil and
work and mobilising all available labour to and from the way in which full emplovment water conservation works, etc, ends when the
meet the goals of Stalinist industrialisation. is achieved. works are complete. Of course, at the top
The aim was the most rapid possible in- It will be a good idea to adopt this model there will be some skilled and educated
dustrialisation and it required transformation and adapt it to suit our circumstances and employment-civil, irrigation and electrical
of the whole country into a gigantic building to avoid some of the pitfalls of the Soviet engineers, etc-and some of the transitional
site for projects of capital construction. The system. The Soviets focused on capital con- employment will get duly converted into per-
investment plan wes used not so much to struction for rapid industrialisation. Instead, manent employment for purposes of opera-
balance capital construction with other com- we shall attend to social and physical in- tion and main'tenance of the completed
peting needs and with the overall ability of frastructure. That does not make any dif- works. But, the bulk of the employment will
the economy to supply them, as to mobilise ference of principle. We may therefore turn be unskilled and transitional.
all possible resources and pour them into to organisational matters and consider how Our experience of organising works pro-
capital construction. we may organise the programmes of expan- grammes of this kind is largely based on and
The prime objective of the Soviet econo- sion and strengthening of social and physical confined to the Employment Guarantee
mic system at all levels, the central planninginfrastructure. Here, the Soviet experience Scheme (EGS) of the government of Maha-
authority, intermediate agencies, and the is not of much relevance. We shall have to rashtra. Thanks to the almost single-minded
enterprises, has been the expansion of the devise our own organisational structure. For-and single-handed devotion of late V S Page
capital stock. Construction enterprises are tunately, we have greater flexibility and moreto working out its operational details and
given targets to fulfil and are provided with choice in these matters. codification of its rules and regulations, the
generous budgets to finance their work. There are important differences between scheme has been relatively well implemented

706 Economic and Political Weekly Annual Number March 1991

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and has made a deep impression on the
previous government at the Centre. With
EGS were combined certain romantic or at
best some populist notions of village govern-
ment and village lesel planning and the out-
come was the celebrated Jawahar Rozgar
Yojana (JRY). From the document on right
to work prepared by the ministry of labour
earlier referred to, it seems that official
thinking on this subject has not progressed
much further.
We have already referred to some of the
operational suggestions made in that docu-
ment, in particular, that the responsibility
of planning and implementation of works
time and move to the next if they desire
under guarantee be entrusted togelected local
bodies such as village panchayats and town
municipalities. This is not practicable. Works
of productive investment cannot be found
in each local area nor can continuous work
be provided to everyone near his home.
Hence, to keep the labour continually
employed, works will have to be found one
after another and the labour moved from
one work to another. Employment can be
offered on a continui.ng and sustainable
basis provided the worker is willing to move
where work is available, transport and
hutments provided. Moreover, a minimum
labour discipline cannot be enforced unless
the workforce is appropriately organised.
Therefore, though identification and
preliminary planning of these works may
begin at the local level, such as the zilla
parishads, not village panchayats, their
ultimate plAnning and execution must rest
with the Central and State governments.
Maybe 10 million people will have to be so
employed well beyond the year 2000.
Therefore, it will be necessary to organise
them in units which will be essentially
mobile, capable of moving from work to
work, needed transportation and hutting
provided.
We do not have enough experience in this
matter and it seems that we may have to try of the army. Nevertheless, a minimum uniform
two forms of labour organisations. One is
labour cooperatives which will execute con-
tract works, say, within their districts.
Labour cooperatives have not been giveni a
fair trial in the past and present employment each year and need re-employment. These
schemes on grounds that their chairmen are
essentially private contractors. This is of
course at least partly true and adequate
measures and supervision will be necessary
to prevent exploitation of labour by the
labour cooperatives. However, we should
recognise that exploitation of labour is not
confined to private and cooperative contrac-
tors. Experience of employment schemes
shows that it is equally common and rampant fully detailed works and the land army will make. How to let the economy respond to
in schemes administered by revenue agencies,execute them wherever they may be located.
development departments, public works
departments, or local bodies. But, for that
reason, poor must not be left unemployed
for fear that he will be exploited if employed.proving the skills in the labour force. No one
Unemployment keeps the poor unorganised
and helpless. Employment creates a forum
to organise and revolt against exploitation;
and the poor can and wi1X revolt more readily
against the chairman of the cooperative
Economic and Political Weekly Annual Number March 1991 . 707
13.234.121.200 on Mon, 12 Feb 2024 22:34:37 +00:00
whom, at least in principle, he elects than
against the government officers who are well
protected from bottom upwards.
It will also be easy for the government to
deal with a labour cooperative than with in-
dividuals asking for work. There has to be
a minimum unit, say, of 50 workers with
propriate composition of skills and abilities,
to be employed productively. There is a well
established legislation governing the labour
cooperatives. All that needs to be done is to
offer them continuous contract work at
prices estimated by the relevant agencies and
departments. It will be the responsibility of
the cooperatives to complete the work on
another. With employment so assured, their
ranks will stvell and a large number of
unemployed will organise themselves in co-
operatives. It is through this process thsat
grassroots leadership with experience in
organisational and business matters will
emerge. The responsibility of the govern-
ment will be to identify and plan produc-
tive works and to finance their execution.
Identification and preliminary investigations
and cost-estimates can be left to the local
government at appropriate levels. Final plan- to the newly employed create additional pur-
ning and their execution through the co-
operatives has to be the responsibility of the
State governments. Financial responsibility
must rest with the Central governmenit with
such provision for sharing by the State
governments as may be agreed upon between
the two.
The second form of labour organisation
is the land army, mentioned in the First Five-
Year Plan, with a hierarchical structure from
Centre, States, to districts. It will be open
to any unemployed person who does not
want to join a labour co-operative to join
the land army subject to minimum physical
fitness and his accepting conditions of work
and pay. Though it may be called land army,
there is no suggestion that it should be a wing
such as a pair of shorts and a shirt and a
general army environment will be useful and
desirable. Reportedly, several thousand non-
commissioned officers retire from the army
are young men with fifteen years' experience
in the army able to handle groups of any-
thing up to 50 persons. Their experience and
abilities will be best utilised in the land army.
As the land army will be paid anyhow from
month to month, it will be the government's cess capacity and will respond to the market
responsibility to see that it is not paid for
doing nothing. Central and State govern-
ments will each year identify and prepare
There need be no objection to use of machi-
nery. Use of machinery helps in building up expected or desired demand or by leaving it
a better organisation and progressively im-
should be kept permanently unskilled on
grounds that it requires less capital to
employ an unskilled person.
This brings us face to face with the pro-
blem of financing the employment program-
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mes and economic management of its con
sequences. With the right to work made fun-
damental, the government will be under
obligation to offer work to any labour co-
operative on demand and enlist any person
in the land army subject to minimum
ap- physical fitness and his accepting conditions
of work and pay. The dimensions of the
financial liability of this undertaking will be
known only over the next three to five years
as experience gathers. In the meanwhile, am-
ple provision will have to be made in the
budget of the Central and State govern-
ments. We have now a reasonable idea of the
quantum of resources that the government
can mobilise. Any substantial increase in
them will require, on the one hand, higher
taxation of the rich, and on the other,
restraining the organised labour. In the cir-
cumstance, it will be only prudent to let the
private sector do what it will and undertake
public responsibility only for what the
private sector will not do.
The central problem of providing employ-
rnent on capital creating works and social
services is that the wages and salaries paid
chasing power in the economy without at the
same time bringing forth additional supply
of consumer goods. Sometimes the con-
sumer goods are referred to as wage goods
and it is somewhat naively believed that they
are essentially foodgiains and coarse cloth.
This is not true. There is a whole range of
commodities and services-which the poor
will demand as soon as they have some pur-
chasing power in their hands. Moreover,
after the first round of spending, the pur-
chasing power passes into the hands of
others creating more incomes and more de-
mand not only for what are called wage,
goods but, in varying degrees, for all con-
sumer goods, and for the intermediate and
capital goods needed for their production.
Depending upon how the initial expenditure
is financed, whether by additional taxation,
by borrowing, or by deficit financing, that
is by printing money, the nature and com-
position of additional demand will vary, but
the essential fact remains, namely, that a
massive programme of capital works creates
additional demand and pressure on prices
of all goods and services.
There are inherent dangers but there is
also an opportunity. If the economy has ex-
demand, it can expand and grow. If it fails,
it shall face an inflationary situation. There
is a crucial choice and a critical decision to
the increased market demand? By elaborate
planning so that the supply may match some
to the private sector to act in response to the
market? Fortunately, we did not attempt
total centralised planning, as in the Soviet
. Union, and there is left behind a sizeable and
vibrant private sector manned by competent
technical and management personnel. If
there is one thing which the private sector
 is particularly suited to do, and the public Notes Orher Considerations, September 1990,
sector is not, is to respond to the market; para 9.
[This is the text of the Justice Bal Memorial Lec-
the private sector has both better market in- 11 Ibid, para 11.
ture which the author delivered at the Indian
telligence and flexibility and speed of pric- 12 Ibid, para 12(ii).
Law Society, Pune, on November 3, 1990.1
ing and production decisions essential for 13 Ibid, paras 1-2.
1 National Front Manifesto, p 16. 14 Ibid, paras 6, 12.
the purpose. To derive the full advantage of
2 Lok Sabh- Secretariat, Estimates Commit- 15 Planning Commission, Approach tohe
this facility of the private sector, the govern-
tee (1978-79), Thirty-Fourth Report, para Eighth Five-Year Plan: 1990-95, May 1990,
ment should avoid interfering with its deci-
2.28. paras 1-4.
sion making processes and motivations. The
3 United Nations, Human Rights: A Com- 16 Ibid, para 117.
Planning Commission intends to use fiscal
pilation of Intecnational Instruments, p 5. 17 Planning Commission, Fourth Five Year
and credit policies to 'more effectively in-
4 Adiseshiah, 'Adopt Wage-Goods Model to Plan 1969-74, p 434.
fluencing private investment decisions in
Implement It', Kurukshetra, March 1990, 18 Planning Commission, Employment: Past
favour of the sectors and technologies with p 1. Trends and Prospectsfor 1990s, May 1990,
high employment potential'. This should be 5 Basu, D D, Commentary on the Constitu- 'para 24.
avoided because thereby you lose the advan- tion of India, 1981, p 113; referred to by 19 lbid, pp 22, 23.
tages of the private sector management. The Kashvap, Subhash in Kurukshetra, March 20 Ibid, para Summary (15).
primary function of fiscal and credit policies 1990, p 20. 21 The following account is drawn from Markh
should be t6 allocate resources between the 6 Ibid. Harrison, 'Lessons of Soviet Planning of
private and public sectors commensurate 7 Ibid. Full Employment' and Philip Hanson, 'The
with their respective responsibilities and 8 Ibid, p 9. Serendipitous Soviet Achievement of Full
these policies should be oriented to that pur- 9 Ibid, p 35. Employment: Labour Shortage and Labour
pose alone. 10 Ministry of Labour, Right to Work: Ap- Hoarding in Soviet Economy' in David
One thing which the private sector certain- proach, Constitutional Amendment, Legis- Lane (Ed) Labour and Employment in the
ly cannot do is to Honour the coristitutional lation on Work Guarantee, Financial and USSR, Wheatsheaf Books Ltd.
right to woik and offer employment to
whosoever may need it. This is par excellence
the responsibility of the government and the
government should reserve all its resources,
financial, technical, and administrative, to
this single purpose if employment is to be
A.P.S.S.D.C.
the central thrust of the Eighth Five-Year
LARGEST PRODUCER & SUPPLIER
Plan.
If this works, we shall have eliminated
unemployment 'and harnessed our human
OF HIGH QUALITY CERTIFIED SEEDS
resources to achieve a higher rate of growth.
If it does not, and if it turns but that what
we are attempting is beyond our immediate
economic capacity, we shall land ourselves HYBRIDS
in an inflationary situation calling for price
and wage restraints and queues for all goods JOWAR, MIVAZE, BAJRA,
and services; a situation out of which the
Soviet Union and other socialist countries HIGH YIELDING VARIETIES
are trying to get out.
Such are the complexities of the problem PADDY, PULSES, CASTOR, COTTON.N /
of employment. It is for this reason that, in GROUNDNUT. AND TOBACCO
making the right to work a fundamental
right under the Constitution, we must move
cautiously: offering low wage and stricter AT REASONABLE PRICES 1'
conditions of work to begin with. We may
relax after we gather sufficient experielce USED ALL OVER THE
and know what the economy can bear. The COUNTRY
most important lesson to draw from the
Soviet experience is the problem of main-
taining labour discipline under conditions
of full employment. We, by nature, are not
PRO'ZESSING PLANTS AND OFFICES
a hard working people and there is a tradi-
VIJAYAWADA, TANUKU, NIZA MA 3AD, SRIKALAHASTI, AMBE
tion of leaning on government which has
been further fostered and strengthened since Ph. 84297 Ph. 24 Ph 2007 Ph. 376 Ph. 21850
independence. It will be a national disaster HYDERABAD WARANGAt KURNOOL G
if the constitutional right to work degene- Ph. 222t53 Ph 7230 Ph 18
rates into a legal right not to work. Hence,
utmost care will be necessary to ensure that GRAMS "APSEEDE' HEAD OrTICE PONEB 34001, 3401 0, 224452
nothing is left to the interpretations of the
courts. Employment cannot be created by * THE ANDHRA PRADESH
legislation and won in the courts. It requires
a certain economic and organisational
capability on the part of the state. State
STATE SEEDS DEVELOPMENT
should accept responsibility for what it can
reasonably do and not fall prey to populist
APSS DC CORPORATION LIMITED
election manifestos or high souJnditig
11-5-471/1, RED HILLS, HYDERABADE50O 004.
Declarations of Human Rights.

708 Economic and Political Weekly Annual Number March 1991

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