Democratic socialism
Topic: Schools of Economic Thought and Economic Laws · NCERT: Beyond NCERT
Meaning
Democratic socialism pursues socialist goals, such as equality and social ownership, through elections and step-by-step reform rather than revolution. Private property and multi-party democracy stay in place. This was the path India chose. Nehru was drawn to socialism, but not the Soviet kind where the government owned all the means of production. India would have a strong public sector along with private property and democracy. The result was the mixed economy, in which the public and private sectors work side by side.
Example
Indian milestones: the Industrial Policy Resolution of 1948; the "socialistic pattern of society" adopted at the Avadi session of Congress (1955); the "commanding heights" for the public sector in IPR 1956; and "socialist" added to the Preamble by the 42nd Amendment (1976).
Don't confuse with
- Soviet central planning: here the state owned nearly all the means of production and there was no democratic choice. India borrowed the five-year plan form, not full state ownership.
Related concepts
- Marxian economics
- Historical materialism
- Class struggle
- Surplus value
- Reserve army of labour
- Fabian socialism
- Market socialism
- State capitalism