Critical Evaluation of Mixed Economy
Let us assess briefly the working of the mixed economy system. Although, a we have aid above, all capitalistic economies have become more or less mixed economics. yet we do not propo c to make a survey of the working of the system close where. We confine ourselves to the assessment of the working of mixed economy in India. for. as India IS the biggest democracy. it is also the biggest experiment in mixed economy. We may notice two opposite views on the working of mixed economy one represented by the business business community or ‘big business’ properly speaking and the other by the political leaders in the Government. These views are usually given expression to in the annual concr uccs of the Chambers of which arc adore vscd usually hy the Prune.
Minister and other high government spokesmen. There is usually a wordy warfare between the two. The business leaders are frankly critical of the government and
the government spokesman of the business community.The government charges the business of the community with black marketing, profiteering and nut being patriotic enough to playa proper role in the economy whereas the business leaders hold the government responsible for inflation, economic stagnation and for the ills of the economy and of trying to squeeze out the private sector in a variety of ways.
For instance, in the annual meeting of the Associated Chamber of Commerce and Industry held in April, 1975, J.R.D. Tata said that mixed economy was dead or dying, He said, “our economy will continue 10 stagnate while our population grows and WQ shall end up before the turn of the century under dictatorship or in a state of chaos and violence.” The Prime Minister Onon the other hand. extolled the virtues of the public sector and harped on its achievements. Mr. P. N. Haksar, Deputy Chairman of the Planninn Commission, addressing the annual session of the Federation of Indian Chamber of Commerce and Industry termed Mr. Tara’s speech as a ‘funeral oration’ and said that this oration would be justified if mixed economy was really dead. I Ie said that the problems of the county could not be solved by “composing lyrical passages on the death of mixed economy, raising ‘macabre’ vision of the hold of communists”, He further said that it would be doing all injustice to argue that the concept of mixed economy obtained only abroad and what obtained in India was “mixed-up economy.
vision of mixed economy, The reality is that despite the present ills of the Indian economy. the marriage of the public and private sectors in Indian economy is merrily going on and doing well. Both Actors arc making a valuable contribution to the duel functioning of the Indian economy. poured out y Mr. l Ursula, the country produced III tel ms of output 1)0’70 or the goods and services through private economy. This bears ample testimony to the Vitality and virility of he sector, from being dead. it is alive and kicking. There little danger of becoming exact or being lowed lip by the public While private sector national economy, Stale controller in the inter t of growth of 1 economy in India is a byproduct 01 lill involvement in the task.
The country. There is no doubt that government has played a remarkable role in developing infrastructural facilities and setting up industrialist units which have
helped the private sector a great deal in its functioning.The fact is that the public sector and the private sector are the two necessary limbs of the economy and both must be in good health and functioning properly. There should be cordial co-operation between the two. Mixed economy cannot function in a State of cold war. Besides, government regulation is essential to bring about a proper co-ordination between the two wings of the economy. It may also be borne in mind that mixed economy cannot function in a static framework. It is a dynamic concept and the proper relationship between the two sectors must go through a continuous evolutionary process to ensure that they do not work at toss purposes. Both sectors must work in the interest of Economy as a whole rather than promote their own selfish interests. ‘That mixed economy which reflects the callous indifference of the omnipotent bureaucratic machine of the public sector on the
one hand and massive profiteering with unfertilized capacities and high prices of he private sector on the other, stands totally condemned in the eyes of the people The amorphous opportunism of the political elite and'”the greed of the private big business stare us in the face every day.This situation must change so that the economy is restored to full health and soundness.