Societal Analysis

Extractive & Inclusive Institutions - Dec 2023

Centralised Solutions & Economies

For the past one and a half years, I have spoken about centralised solutions Kēndrīkr̥ta Pariṣkārālu versus decentralised solutions Vikēndrīkr̥ta Pariṣkārāla.

Then I explained about centralised Kēndrīkr̥ta Ārthika Vyavasthalu and decentralised economies Vikēndrīkr̥ta Ārthika Vyavasthalu.

Centralised enterprises are owned Yājamān'yaṁ and controlled Niyantraṇa by a few very rich capitalists Atyanta Dhanavanta Peṭṭubaḍidārulu.

Very soon, the vast majority do not have any possibility to enterprise.

Political Theory

Today, I will talk about the theory Sid'dhāntaṁ behind politics.

Political theory is not about party politics and elections Ennikala.

Politics is about Rulers Pālakulu and the manner in which they rule Pālin̄cē Vidhānaṁ.

Different Rulers have different Ideologies Bhinnamaina Bhāvajālālu or world views prapan̄ca dr̥kpathālu.

These ideologies Bhāvajālālanu can be broadly classified Vargīkarin̄cavaccu as Patriarchal Pitr̥svāmyaṁ or Feminist Strīvādaṁ.

Political Parties

An entire caste-class of people with the same or similar ideologies Sārūpya Bhāvajālantō group together to form political parties.

After a while, these caste-class groups may split Cīlipōvaccu into two or more parties.

But for our understanding Avagāhana Kōsaṁ, we will treat them as a single party Parigaṇistāmu.

Let us therefore look at a two-party situation; one that has a patriarchal ideology pitr̥svāmya bhāvajālaṁ, and another a feminist one strīvāda bhāvajālaṁ.

Extractive & Inclusive Political Institutions

In order to understand how Politics works, we need to understand the Extractive Institutions Velikitīta Sansthalu or Absolutist Institutions Niraṅkuśa Sansthalu that the elite Unnatavargaṁ create.

On the other hand, Political parties that believe in a Feminist ideology create Inclusive Institutions Kalupukoni unna Sansthalu

These political institutions are the Legislature, Executive or Bureaucracy and the Judiciary. And the paramount Pradhānamaina institution are Banks and finance.

The laws they pass, the rules they frame, tax structure, judgements they pass, who gets access to large capital needed for centralised capitalist ventures, all demonstrate if the institutions are extractive Velikitīta or inclusive Kalupukoni unna.

Extractive & Inclusive Economic Institutions

Depending on this style of functioning śaili Panitīru and governance Pālanapai, the political policies Vidhānālu will allow either extractive economic institutions Velikitīta Ārthika Sansthalu or inclusive economic institutions Sam'miḷita Ārthika Sansthalanu.

Rulers who believe in the patriarchy ideology Pitr̥svāmya Bhāvajālānni say that the most efficient way Samarthavantamaina to increase productivity Utpādakata is when a few very rich capitalists Dhanika Peṭṭubaḍidārulu run the economy.

Our first problem is that this economic policy Vidhānaṁ will deprive crores of the population from enterprising.

Our second problem is that this claim is very short-sighted and just not true. It is a lie.

It is a pseudo argument given by pseudo economists who serve the interests of rich capitalists who want to plunder by extracting human labour and natural resources.

Limited Growth, Temporary &Unsustainable Economy

Yes, limited growth is possible with extractive political Velikitīta Rājakīya Sansthalu and economic institutions Nirāṅkuśa Ārthika Sansthalu But it will not last Kānī adi Sāgadu. It will not be sustained Idi Silakaḍagā Uṇḍadu.

Every one of you remembers the feudal peasant economy where all the wealth was concentrated in the hands of a few landlords and big peasants.

That was not efficient Samardhavantaṅgā Lēdu. It did not increase productivity Utpādakatanu Pen̄calēdu. Your lives were poor and miserable. Even the rich peasants and landlords did not have a very high standard of living.

That economy collapsed Kuppakūlindi. Capitalism Peṭṭubaḍidārī Vidhānaṁ came into the countryside.

Capitalism Peṭṭubaḍidārī Vvidhānaṁ destroyed feudalism and freed Vimukti the small and poor peasants from the clutches of landlords and rich peasants.

Pseudo economists Nākāli ārthikavēttalu will give many pseudo arguments Nākāli Vādanalu as to why the peasant economy failed. They will say there was not enough technology Sāṅkētikaṁ, etc.

But the real reason was that Inclusive Institutions that encouraged crores of poor peasants to participate and get benefits were not there.

Only Inclusive Institutions make Capitalism work

But, as we have seen, the same Capitalism that was a liberating force Vimukti śaktigā unna in the beginning, has now changed into an extractive economy Velikitīta ārthika Vyavasthagā Māripōyindi.

A new form of Capitalism has now emerged.

Extracting both, our labour as well as all natural resources Anni Sahaja Vanarulanu Velikitīstundi.

The obvious solution Spaṣṭamaina Pariṣkāraṁ is that we need Inclusive Political Institutions Sam'miḷita Rājakīya Sansthalu that support an Inclusive Economy Sam'miḷita ārthika Vyavasthaku where everyone can participate Pālgonagaligē.

Not just for the poor and minorities. For everyone, rich and poor. For the whole country.

This is true patriotism Dēśabhakti, by showing love and concern for all citizens.

This is true nationalism Nijamaina Jātīyavādaṁ which is needed to save the country from destruction through over exploitation.

And this Idea must be fiercely protected Tīvraṅgā Rakṣin̄cāli by ordinary people, the entire population Mottaṁ Janābhā.

This is known. Every one of you know this.

Today, I have come to share a deeper truth Lōtaina Satyānni that is not so obvious.

Extreme Decentralisation needs Extreme Centralisation

Yes, Inclusive Political Institutions Sam'miḷita Rājakīya Sansthalu are very important.

But 31 years back, Rajiv Gandhi told us that extreme decentralisation Viparītamaina Vikēndrīkaraṇaku needs extreme centralisation Tīvra Kēndrīkaraṇa.

We asked Rajiv Gandhi why Inclusive Political Institutions Sam'miḷita Rājakīya Sansthalu should be severely centralised Tīvra Kēndrīkaraṇa.

Is this not a paradox Vairudhyaṁ kādā?

He said, "No" and explained:

Do not Under-estimate the Ruling Elite!

It is this ruling elite who create Sr̥ṣṭin̄ci and perpetuate Extractive Institutions Velikitīta Sansthalanu. Because centralised economies benefit the ruling elite Pālaka Unnatavargaṁ. Even with a temporary loss Tātkālikaṅgā Kōlpōyinā of political and economic power, the economic elite will still remain very powerful.

Strong Central Leadership

Inclusive Institutions Sam'miḷita Sansthalu serve the entire population. They have to be defended Kāpāḍukōvāli by all the people together.

But ordinary people alone Sādhāraṇa Prajalu Mātramē, by themselves and in different towns and villages, may not be able to do this Dīnni Cēyalēru.

Without a strong central leadership that attacks Patriarchy, a leadership that believes in Feminism Strīvādaṁ, can a Political Institution Rājakīya Sanstha genuinely promote Inclusive Economics?

The central leadership of even the Inclusive Political Institutions Sam'miḷita Rājakīya Sansthala must protect Rakṣin̄cāli and take forward the Idea Ālōcananu behind the decentralised economy.

Today, the answer Samādhānaṁ to my question can be seen right before me.