India's economic relations with USA and USSR

During the last two decades the question of helping the developing countries acquire a reasonable level of economic progress has assumed great urgency and the problems inter related to this question have gained a dimension that puts it at the top of the world issues brooking no delay in solution. Except for the few remaining ones, the attainment of political independence by former colonial countries, has not only changed the political configuration of the world balance of forces but has also helped developing countries consolidate their position to some extent and acquire a certain capacity to bargain with the developed countries. There is, however, a tendency, very subtly abetted by western countries, to divide the world simply into two groups-developed and non-developed or developing without taking into account the socio-economic bases that determine the character of a country.

There are indeed vast differences between a developed socia list country and a developed capitalist country, foremost among which is the fact that the wealth of a developed capitalist country is essentially built on accumulations accruing from the exploitation of colonies, dependent markets and of course from unequal terms of trade. There is no such basis, much less such option for a socialist country, developed or otherwise. In effect, while a developed capitalist country has progressed economi cally and established for itself a strong industrial base through exploitation of other peoples plus the surplus generated from exploitation of workers within the country itself, a socialist country's economic growth is dependent purely and entirely on the sweat and toil of the working people of that country alone. The element of acquisition of wealth through operations in foreign countries is not a consonant feature for a socialist country. Also it should be clearly understood that not all socialist countries are developed countries; and neither are all capitalist countries the same.