Ultimate. Isnt it??
Sunday, April 20, 2008
Sunday, April 6, 2008
Government - Do we need one?
Of late the concept of being a 'Libertarian' has been the hot point of discussion. Everyone wants to be free. No one wants to be controlled by anyone. The question as to why at all there should be a government has arisen. There is a common feeling that everyone can mind his or her own life and therefore there is no need for any external force to exercise control over them. The idea of Capitalism has been implanted deep into their minds. They seem to be unanimously saying no to Socialism. They feel it is out of fashion, back-dated and irrelevant.
But I think one needs to understand the importance of Socialism. 100% of anything is bad. Socialism is bad, but at the same time Capitalism is not the answer to it in India. In India we need to understand the importance of having a Government and I hope can be best explained as below.
1.WHAT IS THE ROLE OF A GOVERNMENT?
This is a question that a specialist needs to answer, the simple reason being that everyone (a common man) wants the government to satisfy his or her needs. What is good becomes very subjective. In other words, if the Government satisfies ones needs then it is a good government, or else it is a bad government. So, it is basically the selfish motive of the people that guides them in deciding whether a Government is good or not.
The concept of a Government or something similar to it has evolved over a period of time, you can say right from the time Kings existed. In India, the King was considered to be the representative of the people and he was the person-in-chief to take care of the needs of the people. There was a certain degree of Rajdharma attached to him. This Rajdharma is nothing but the basic duties of a King, viz., Protection of the territory from external aggression as well as maintaining internal peace & security for better governance. But, over a period of time, with education being the need of the hour and with huge advancements in the field of Science & Technology, the basic duty of a State (Government) became much more than the aforesaid duties. The concept of a Welfare State thus developed.
2.WHAT IS WELFARE STATE?
One may ask as to what is a Welfare State. Well, as one knows, apart from the basic duties of Protection of the State from external aggression and maintenance of Internal security and order, a State has many more functions to perform like providing basic infrastructure like roads, electricity, water, primary education etc. All these functions are basically social functions which the State has to function. In a vastly populated country like India it is practically not possible for and individual to do all this.
One must also understand that in today's world, everyone is dependant on the other in one way or the other. So, it is equally important to understand that in other's welfare lies your welfare too and that's where the concept of welfare state arises.
3.WHY SHOULD I PAY INCOME TAX?
To be frank, this is a perfectly valid question for which there is no convincing answer. Even I agree to the fact that "why should I pay for someone else whom I do not even know?" and also strongly support to the view that every man must earn his bread rather than depending on others.
This is one of the major disadvantages of a Democratic set-up of Governance. The State in this case feeds the lazy and incompetent people and also does not adequately rewards Competent & Hard-working people. But you must realize that no system is perfect and some defects are bound to be there.
Regarding the answer to the question as to "why should I pay Income tax?" all that I can say is that the Government needs funds to carry on its social welfare programs and for this they need money and this is by way of Income Tax.
4. LEGAL ASPECTS AS REGARDING FREEDOM
One also needs to know the legal aspects as regards freedom as is relevant in India. According to Article 19(1) of the Constitution of India, it provides for certain freedoms available to every citizen namely, freedom of speech & expression, freedom to move freely throughout the territory of India, freedom to reside and settle in any part of the territory of India, freedom to form associations or unions, freedom to practice any profession, or to carry on any occupation, trade or business.
However these are not absolute freedoms and are subject to certain restrictions as provided in Articles 19(2) to 19(6). These are known as Permissible Restrictions which may be enumerated as Sovereignty & Integrity of India, Security of the State, Public order, decency & morality, Contempt of Court, Defamation, Friendly relations with foreign States and Incitement to an offence.
Thus it can be said that with a Government control hovering over your head, it does not necessarily mean that one is being subjugated and that his freedom is restricted. It would be apt to understand that what freedom means to one would very much means the same to others also. In other words, if you have the right to enjoy your life freely, so do other people. To maintain equilibrium, the Government takes over this function.Thus, the Government by way of laws in NOT controlling your life, rather it is just ensuring that you live life your way without you causing hindrance to others from living theirs.
5.HOW ABOUT LEAVING THIS TO THE PRIVATE SECTOR?
It is not a question of whether Private hands can do it, it is rather a question of will Private hands do it. It is worth noting that in today's corporate world, there is a concept of Social Responsibility growing up and Private hands also slowly lending their helpful hand to the Governments in the effective functioning of the Social and Welfare functions of the State
6.CONCEPT OF PRIVATISATION AND ITS EVOLUTION
Privatization is the latest trend in the Indian economy and it would be noteworthy that never before in Indian parliamentary history has there never before been a Disinvestment Ministry and a Minister incharge if it.It is a well known fact that Government control causes inefficiency and Privatization is the only cure to it. The Government has realized this and are thereby selling of loss making PSU's to Private Industries to revive such loss making units. There is a gradual shift from Socialism to Capitalism in India. However it is always advisable to have a judicious mix of both. It is to be noted that USA itself is not a 100% Capitalist Country.Therefore, Privatization is definitely there and will be there, but everything has a limit.
7.WHAT IS THE SOLUTION?
The solution is simple. Everything has its own advantages and disadvantages. Government is always a must in every Country and total absence of Governmental control would lead to absolute chaos and anarchy.Instead of totally boycotting or opposing Governmental control, it would be better to think on how to make the Government accountable or how to wipe out corruption and red tapism or how to efficiently make use of the current system?Thus, instead of thinking in a single direction, one must start thinking in a broader sense and try to find solutions with the existing resources. Thus, it would be apt to conclude that Total Capitalism is not the solution to the problem in India, It would be like selling of a Company if you are unable to make profits. It would only show inefficiency rather than making sense.
But I think one needs to understand the importance of Socialism. 100% of anything is bad. Socialism is bad, but at the same time Capitalism is not the answer to it in India. In India we need to understand the importance of having a Government and I hope can be best explained as below.
1.WHAT IS THE ROLE OF A GOVERNMENT?
This is a question that a specialist needs to answer, the simple reason being that everyone (a common man) wants the government to satisfy his or her needs. What is good becomes very subjective. In other words, if the Government satisfies ones needs then it is a good government, or else it is a bad government. So, it is basically the selfish motive of the people that guides them in deciding whether a Government is good or not.
The concept of a Government or something similar to it has evolved over a period of time, you can say right from the time Kings existed. In India, the King was considered to be the representative of the people and he was the person-in-chief to take care of the needs of the people. There was a certain degree of Rajdharma attached to him. This Rajdharma is nothing but the basic duties of a King, viz., Protection of the territory from external aggression as well as maintaining internal peace & security for better governance. But, over a period of time, with education being the need of the hour and with huge advancements in the field of Science & Technology, the basic duty of a State (Government) became much more than the aforesaid duties. The concept of a Welfare State thus developed.
2.WHAT IS WELFARE STATE?
One may ask as to what is a Welfare State. Well, as one knows, apart from the basic duties of Protection of the State from external aggression and maintenance of Internal security and order, a State has many more functions to perform like providing basic infrastructure like roads, electricity, water, primary education etc. All these functions are basically social functions which the State has to function. In a vastly populated country like India it is practically not possible for and individual to do all this.
One must also understand that in today's world, everyone is dependant on the other in one way or the other. So, it is equally important to understand that in other's welfare lies your welfare too and that's where the concept of welfare state arises.
3.WHY SHOULD I PAY INCOME TAX?
To be frank, this is a perfectly valid question for which there is no convincing answer. Even I agree to the fact that "why should I pay for someone else whom I do not even know?" and also strongly support to the view that every man must earn his bread rather than depending on others.
This is one of the major disadvantages of a Democratic set-up of Governance. The State in this case feeds the lazy and incompetent people and also does not adequately rewards Competent & Hard-working people. But you must realize that no system is perfect and some defects are bound to be there.
Regarding the answer to the question as to "why should I pay Income tax?" all that I can say is that the Government needs funds to carry on its social welfare programs and for this they need money and this is by way of Income Tax.
4. LEGAL ASPECTS AS REGARDING FREEDOM
One also needs to know the legal aspects as regards freedom as is relevant in India. According to Article 19(1) of the Constitution of India, it provides for certain freedoms available to every citizen namely, freedom of speech & expression, freedom to move freely throughout the territory of India, freedom to reside and settle in any part of the territory of India, freedom to form associations or unions, freedom to practice any profession, or to carry on any occupation, trade or business.
However these are not absolute freedoms and are subject to certain restrictions as provided in Articles 19(2) to 19(6). These are known as Permissible Restrictions which may be enumerated as Sovereignty & Integrity of India, Security of the State, Public order, decency & morality, Contempt of Court, Defamation, Friendly relations with foreign States and Incitement to an offence.
Thus it can be said that with a Government control hovering over your head, it does not necessarily mean that one is being subjugated and that his freedom is restricted. It would be apt to understand that what freedom means to one would very much means the same to others also. In other words, if you have the right to enjoy your life freely, so do other people. To maintain equilibrium, the Government takes over this function.Thus, the Government by way of laws in NOT controlling your life, rather it is just ensuring that you live life your way without you causing hindrance to others from living theirs.
5.HOW ABOUT LEAVING THIS TO THE PRIVATE SECTOR?
It is not a question of whether Private hands can do it, it is rather a question of will Private hands do it. It is worth noting that in today's corporate world, there is a concept of Social Responsibility growing up and Private hands also slowly lending their helpful hand to the Governments in the effective functioning of the Social and Welfare functions of the State
6.CONCEPT OF PRIVATISATION AND ITS EVOLUTION
Privatization is the latest trend in the Indian economy and it would be noteworthy that never before in Indian parliamentary history has there never before been a Disinvestment Ministry and a Minister incharge if it.It is a well known fact that Government control causes inefficiency and Privatization is the only cure to it. The Government has realized this and are thereby selling of loss making PSU's to Private Industries to revive such loss making units. There is a gradual shift from Socialism to Capitalism in India. However it is always advisable to have a judicious mix of both. It is to be noted that USA itself is not a 100% Capitalist Country.Therefore, Privatization is definitely there and will be there, but everything has a limit.
7.WHAT IS THE SOLUTION?
The solution is simple. Everything has its own advantages and disadvantages. Government is always a must in every Country and total absence of Governmental control would lead to absolute chaos and anarchy.Instead of totally boycotting or opposing Governmental control, it would be better to think on how to make the Government accountable or how to wipe out corruption and red tapism or how to efficiently make use of the current system?Thus, instead of thinking in a single direction, one must start thinking in a broader sense and try to find solutions with the existing resources. Thus, it would be apt to conclude that Total Capitalism is not the solution to the problem in India, It would be like selling of a Company if you are unable to make profits. It would only show inefficiency rather than making sense.
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