Capitalism & trusteeship – The Economic Times

Capitalism has yielded significant benefits over the last century. It has driven economies and businesses towards high growth powered by competition, productivity and innovation. This growth has been accompanied by unprecedented job creation, growth in per-capita incomes and standard of living, urban infrastructure and development, free trade, and the creation of market-driven economy. It can also be argued that capitalism has been a driving force for poverty reduction. Capitalism has also created adverse side effects in the form of deeper inequalities, excessive consumption and the resultant impact on the planet and environment.

M K Gandhi had propagated the principle of trusteeship, in which the wealthy would use their resources for the benefit of society after keeping a reasonable portion for themselves. Capitalism and trusteeship are actually two sides of the same coin. While the former provides the framework of creating wealth, the latter provides a framework of putting that wealth to use.

Fortunately, for India, trusteeship has not gone anywhere and is thriving. Social service organisations, funded by donations and CSR, are redistributing that wealth. Multiple government schemes for the masses are redistributing wealth through taxes. Many wealthy families are creating philanthropies. Whether his terminology of trusteeship is used or not, the idea conceived by Gandhi is vibrantly alive in our country.