THOMAS ON THOMAS

The Story of PJ Thomas—An Unsung Economist  by EM Thomas ; Published by Academic Foundation ; Pages 190; Price Rs 895/- 

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Dr.EM Thomas, the author of the book under review is a Faculty Member of the Inter-University Centre for financial economics and financial engineering in the University of Calicut. He is the author of 12 books and a large number of articles. He has specialised on decentralised planning from the  University of Belgrade.

The subject of this book—Dr.PJ Thomas was the First Economic Adviser for the Government of India. He was deputed to sign on behalf of India the vital document of the League of Nations. He donated all his wealth for welfare measures like Health Care and Education for the downtrodden of Kochi. He was a scholar, a parliamentarian  and a writer who played an important role  in the fledgling nation’s history, both before and after Independence.

Thomas strode like a colossus in economic thinking before India became free. He proved prophetic in his observations on several subjects—General Sales Tax, Population Growth, Rural Employment, Land Reforms, Green Revolution, Local Self-Government, Cooperatives and Rural Indebtedness.

Dr.Thomas played a crucial role in our country’s development.He was Professor in the Madras University for 15 years.He was the first Economic Adviser in the Finance Ministry of free India.He participated in the International Conferences which culminated in the birth of the IMF  and the IBRD. His most important book was            “ The Growth of Federal Finance in India  1833—1939” which was published in 1939.

The book under review is the product of 15 years of painstaking research. PJ Thomas began his teaching career in the University of Ceylon where he was Professor of Economics. C.Rajagopalachari, then Prime Minister of Madras made him his Economic Adviser. He earned a name by implementing India’s first prohibition in Salem. To make up the loss to the Exchequer created by prohibition Thomas devised a General Sales Tax System—introduced for the first time in India.

Rajaji nominated him to the Madras Legislative Assembly. A few years later, the Chief Minister of Kerala, Shri.E.M.S.Namboodiripad nominated  him as a member of the Rajya  Sabha. History has recorded that Thomas helped the Kerala State to climb up the ladder.

Thomas argued that India’s greatest wealth is its large population and that it was our duty not only to control birth but take effective steps to enhance health of the people and increase the productive efficacy of our population.

Thomas stood for  legislative measures to tackle the problem of inequality in the distribution of land and productive resources. He had suggested this three decades before the actual land reform legislation made by the Kerala Legislative Assembly in 1957.

Thomas thoroughly studied the problem of farmers’ debts.He compared the debt-ridden community to a volcano and concluded that it would weaken the growth of the country and promote communal clashes and even engender revolutions. The solution he suggested was the introduction of cooperative society and the rationing of credit among farmers.

In a  paper "The Trend of International Trade" the economist proved  that ‘ thoroughgoing free trade is for the time being a thing of the past.Its advantages still remain.But the rest of the world pursued a policy of arrogant nationalism, not even the most powerful nation in the world can afford to maintain a purely free trade policy.’He suggested a policy of regional grouping of similarly situated developing countries to reap maximum gains from trade.

Thomas was always against devaluation of the Indian currency. In his view,devaluation may give relief in certain circumstances but it must be accompanied by other measures like extensive public works, readjustment of production, control of prices and various other controls.

The much flaunted NREGA has its seeds in a paper written by Thomas entitled, ‘A Plan for Recovery’.

Thomas was convinced of the need and scope of the cooperative movement. He believed that the development and growth of rural India is based on the three pillars of society, viz.,---the Village School, the Cooperative Society and the Village Panchayats. The inclusive growth strategy of the present Government will get full meaning if it is based on the three pillars suggested by Thomas years ago.

In his brief Foreword, Dr.C.Rangarajan, the ex-Governor of RBI writes, "It is important that the current generation must be fully aware of the pioneering contributions made by the economist at the dawn of Independence. They had laid strong foundations.PM Thomas deserves to be remembered by the present generation. The author EM Thomas has made available to all of us the quintessence of the contribution of the “ Unsung Economist Dr.PJ Thomas.

The book will be useful for all research workers, students of economics, policy makers and those interested in federal finance.

P.P.Ramachandran.

14/04/2019.