Ratan Lal Basu

Document Type




The new millennium, endorsing the paradigm of globalization, has been characterized by the revival of the concept of laissez faire conceived long ago by the French Physiocrats and later on corroborated by the neo-classicists. Karl Marx opposed this view and put forward his concept of socialism (as an interim path towards communism) based on a completely state-controlled centralized economic system. Later on, the mainstream laissez faire view was also challenged by Keynes and his followers who emphasized that State intervention is essential for sustainable development; but to this end, democracy instead of Marxian socialism is the better form of governance and there is no need to abandon the capitalistic mode of production. The newly independent countries after the Second World War, languishing in abject poverty and associated maladies, adopted various prescriptions of socialism and Keynesian economics and endeavoured to modernize their economies through excessive State intervention. The political set ups of these countries were both democratic and dictatorial.