Kumarappa – The Economist from Tamil Nadu

Portrait of Kumarappa

January 4, 2025, marked the birth anniversary of J. C. Kumarappa – an economic thinker from Tamil Nadu (India) who extensively focused on the village economic development and economics of peace. An original thinker, student of public finance, member of planning committee and congress agrarian reforms committee, and traveler who observed various countries and developed his village economic philosophy stands still relevant today for his village economics and economics of peace..

Tamil Nadu, the southern state in India, was the birthplace of economists who chose different paths: J. C. Kumarappa, C. N. Annadurai (who was also former chief minister of Tamil Nadu), Sarada Raju, and Jeyaranjan J. Even Thiruvalluvar can be seen as an entry point to engage with Tamil History of Economic Thought. However, this essay argues, Kumarappa remains unique among them in how his economic ideas can be useful today.

The Young Kumarappa

J.C. Kumarappa was born on January 4, 1892 in a Tamil Christian Family in Thanjavur, the rice bowl of Tamil Nadu (Vinaik, 1956; Lindley, 2007; Govindu and Malghan, 2016). His father, Solomon Doraiswamy Cornelius was working in the Public Works Department in Madras Government (Vinaik, 1956, p. 3). Joseph Cornelius moved to Madras (or today’s Chennai), in his twelfth age, attending the Doveton European School, followed by an honours degree in history from the Wesleyan Mission College. In 1913, he went to London to pursue his career as Chartered Accountant, and came back to Bombay, continuing his career in accounting. However, the young man’s decision to travel to United States in 1927 after years of promising career in Bombay, changed his entire career path afterwards (Vinaik, 1956; Lindley, 2007; Govindu and Malghan, 2016). Though he went for his elder brother in the United States, the young Kumarappa enrolled himself at Syracuse University where he completed his Bachelor’s in Business Administration. From there he went to Columbia University to pursue his Masters in Public Finance (Vinaik, 1956; Lindley, 2007; Govindu and Malghan, 2016). Throughout his economic education in the United States, he was taught by eminent professors: Harvey W. Peck, Edwin R. A. Seligman and Herbert J. Davenport (Vinaik, 1956; Lindley, 2007; Govindu and Malghan, 2016). Seligman pushed Kumarappa to pursue his Master’s Thesis on India’s Poverty at that time, which resulted in his brief work which discusses how the public finance system of the British Empire in India contributed to India’s then poor economic conditions (Vinaik, 1956; Lindley, 2007; Govindu and Malghan, 2016). This thesis became the entry point of Kumarappa’s engagement with Gandhi, which was an overall entry point of Kumarappa’s engagement with anticolonial struggle at that time.

Portrait of Edwin R.A. Seligman

Kumarappa’s Village economics and his Economy of Permanence

Though he proved, to those who approached him, a suave and affable figure, Manin was also somewhat intimidating: a trait that was already apparent to his friends in his youth and had nothing to do with his subsequent academic reputation. The reason was probably his fundamental, utter seriousness. He was completely uninterested in the trivia of academic life, as well as in ideological disputes. On the other hand, he was prepared to discuss for hours on end any question he judged worthy of attention, dissecting concepts and turns of phrase, without any reservations or prejudices. In private exchanges he displayed the same passionate concern for aesthetic objects, such as a detail of baroque architecture (his favourite), the atmosphere of a building, or the presence of a bird in some beloved landscape of the Alps. It is his calm, confident openness that we shall miss above all.

Economy of Permanence Book

Kumarappa served as the organizer and secretary of All India Village Industries Association, which was founded in December 1934 (Govindu and Malghan, 2016, p. 74). He dedicated himself to theoretically outline the Gandhian Economic Philosophy and also pursue the welfare of the economic future of Indian villages (Kumarappa, 1946, 1948, 1949). He constantly argued for introducing science, technology, and research in villages for their development (Kumarappa, 1949). He noted that India is abundant in labour but scarce in capital, and recommended India to pursue village development in this line of utilizing the ‘abundance of labour’. The Political Economy of Kumarappa accommodated both decentralized village industries and centralized massive industry, where he emphasized on the welfare of women, and deprived sections of the society, through these village models, ensuring social and economic justice (Kumarappa, 1947, 1948; Redkar, 2019).

He classifies economies into five different types:

  1. Parasitic Economy: referring to a parasitic economic behaviour where one country / one entity completely depends upon another one, exploiting their resources and causing huge violence for the second one (Kumarappa, 2017, pp. 5–6).
  2. Predatory Economy: referring to a ‘monkey’ behaviour where a country just takes away the fruits of another one, without contributing anything in return (Kumarappa, 2017, p. 6).
  3. Economy of Enterprise: referring to economy pursued by ‘active constructive units’ where benefits and contributions are shared (Kumarappa, 2017, p. 6).
  4. Economy of Gregation: referring to economy where the focus is shifted from individual interest to group interest and from present need to future need (Kumarappa, 2017, pp. 6–7).
  5. Economy of Service: referring to ‘the highest form of’ economy like a mother feeding to child, focusing upon the benefits for upcoming generation (Kumarappa, 2017, p. 7).

Kumarappa was arguing this economy of service is what should be followed, which he considers as the ‘nonviolent economy of permanence’ (Kumarappa, 2017, p. 7).

‘Gandhian economics’ but not a ‘Gandhian economist’

Kumarappa is possibly the only economist who pursued the development of ideas as well as experiments in Gandhian economics. Yet, he clearly noted that Gandhian economics lacks governing principles, but is rooted in the two life principles: truth and non-violence (Kumarappa, 2019). He also wrote that the aim of Gandhian economics is to ‘establish a casteless and classless society’ (Kumarappa, 1952). Though Gandhian Economics lacks standard definition, there can be close parallels drawn between the idea of village swaraj and ‘Gandhian economics’, as interpreted and discussed by Kumarappa. The word ‘swaraj’ means ‘self-rule’ or ‘self-governing’. Gandhi fought for self-governance of villages, through which he saw the ‘real independence’ of the country at that time. Kumarappa takes a similar tone and argues, true nationalization necessitates the self-sufficiency and self-rule of the villages (Kumarappa, 2017). He along with Gandhi (at certain times beyond Gandhi!) worked towards the development of village industries: khadi (local cotton spinning), oil-churning, village handicrafts, etc. (Vinaik, 1956; Zachariah, 2012). However, Kumarappa was rational enough to distance himself from completely avoiding centralized industries, when it comes to certain sectors – like railways, posts, and telegraphs – where he argues these kinds of industries must be brought under state control (Kumarappa, 1948). His contributions towards the Gandhian cause, as well as Gandhian organizations, is highly commendable. However, it is challenging to impose a ‘Gandhian label’ on his economics, as the author of this blog post would like to point out that he has different influences – from Seligman, from Harvey W. Peck, from Christian traditions and Bibles, and from communist countries as well! He was a committed ‘Gandhian’ who developed the foundations of Gandhian economics, but never was a ‘Gandhian economist’.

Mahatma Gandhi

Kumarappa’s engagement with Environment & Agriculture

Beyond village industries, Kumarappa propounded strong ideas when it comes to agriculture and villages. He specifically pointed out the self-sufficiency, and primary consumption of agrarian output by the village itself. Kumarappa served as the chairperson of the Congress Agrarian Reforms Committee (1948-1950) (Zachariah, 2004). He emphasized on the importance of multi-purpose cooperative societies and also trade unions in regard to agrarian development (Kumarappa, 1948). Tamil Nadu has had distinct thinkers who contributed to political ecology and deep ecology since the times of Thiruvalluvar. However, Kumarappa stands tall among them because of the depth of his ideas and philosophical influences and examples which he encountered: Gandhi, Soviet Union, and Christianity. Beyond his engagement with agrarian question, he also spoke about forest conservation, limits in mining of minerals, and self-sufficient economy (Kumarappa, 1946, 2017). Kumarappa’s environmentalism is rooted in the village question in Indian economy. Still today, Kumarappa is resonated and studied by many agrarian enthusiasts including Pamayan[1]. Kumarappa’s ideas are still relevant today in the search for a perfect balance between urban economy and rural economy, creating self-sufficient models for every village.

Athmanathan Indrajith Elangai Vendan is a Swiss Government Excellence Scholarships PhD student at the University of Lausanne, and a member of the Walras Pareto Centre for the history of economic and political thought. He is working on Keynes’ and Kumarappa’s economics of World War I.

References

Govindu, V.M. and Malghan, D. (2016) The web of freedom: J.C. Kumarappa and Gandhis struggle for economic justice. First edition. New Delhi: Oxford University Press.

Kumarappa, J.C. (1946) Why The Village Movement. 4th edn. Wardha: The All India Village Industries Association. Available at: https://www.tamildigitallibrary.in/book-detail?id=jZY9lup2kZl6TuXGlZQdjZU8lJQe&tag=Why%20the%20Village%20movement.

Kumarappa, J.C. (1947) Women and Village Industries. 1st edn. Wardha: J.C. Kumarappa: Self Published. Available at: https://www.tamildigitallibrary.in/admin/assets/book/TVA_BOK_0060282/TVA_BOK_0060282_Women_and_Village_industries_1951.pdf (Accessed: 7 October 2024).

Kumarappa, J.C. (1948) An overall plan for rural development. 2nd edn. Wardha: All-India Village Industries Association. Available at: https://www.tamildigitallibrary.in/book-detail?id=jZY9lup2kZl6TuXGlZQdjZY9l0Q9&tag=An%20overall%20plan%20for%20rural%20development#book1/ (Accessed: 21 November 2024).

Kumarappa, J.C. (1949) Science and progress. Wardha: The All India Village Industries Association. Available at: https://www.tamildigitallibrary.in/book-detail?id=jZY9lup2kZl6TuXGlZQdjZU8luU3&tag=Science%20and%20progress#book1/5 (Accessed: 8 November 2024).

Kumarappa, J.C. (1952) The Gandhian way of life. 1st edn. Wardha: The All India Village Industries Association. Available at: https://www.tamildigitallibrary.in/book-detail?id=jZY9lup2kZl6TuXGlZQdjZU8lJp7&tag=The%20Gandhian%20way%20of%20life#book1/ (Accessed: 8 November 2024).

Kumarappa, J.C. (2017) Economy of Permanence: A quest for social order based on non-violence. 8th edn. Varnasi: Sarva Seva Sangh Prakashan.

Kumarappa, J.C. (2019) Gandhian Economic Thought. 4th edn. Varnasi: Sarva Seva Sangh Prakashan.

Lindley, M. (2007) J. C. Kumarappa: Mahatma Gandhi’s economist. Mumbai: Popular Prakashan.

Redkar, C. (2019) Gandhian engagement with capital: perspectives of J.C. Kumarappa. New Delhi: SAGE.

Vinaik, M. (1956) J. C. Kumarappa and his quest for world peace. 1st edn. Ahmedabad: Navajivan Publishing House. Available at: https://www.tamildigitallibrary.in/admin/assets/book/TVA_BOK_0059778/TVA_BOK_0059778_J_C_Kumarappa_and_his_quest_for_world_peace_1956.pdf (Accessed: 10 July 2024).

Zachariah, B. (2004) ‘In Search of the Indigenous: JC Kumarappa and the Philosophy of “Gandhian Economics”’, in Colonialism as Civilizing Mission: Cultural Ideology in British India. London: Anthem Press, pp. 248–269. Available at: https://www.academia.edu/8597717/Zachariah_In_Search_of_the_Indigenous_JC_Kumarappa_and_the_Philosophy_of_Gandhian_Economics_ (Accessed: 9 November 2024).

Zachariah, B. (2012) Developing India: an intellectual and social history, c. 1930-50. Paperback edition. New Delhi: Oxford University Press (Oxford India paperbacks).

Footnote

  1. பாமயன் எனப்படும் மு.பாலசுப்பிரமணியன் (no date) pothigaisolai. Available at: https://pothigaisolai.com/pamayam.html (Accessed: 3 January 2025).

To cite this blog post : Athmanathan Indrajith Elangai Vendan, « Kumarappa – The Economist from Tamil Nadu », Blog of the Centre Walras Pareto, February 4, 2025, https://wp.unil.ch/cwp-blog/2025/02/kumarappa-the-economist-from-tamil-nadu/.

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