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What, then, is the solution? Decentralised cottage industrialism shows the way. The Indian village communes had evolved a well-balanced economic system by eschewing the two extremes oflaissez faire and totalitarian control. After serious experimentation they had discovered a golden and happy mean between capitalism and socialism. They had developed an ideal form of cooperative agriculture and industry, in which there was scarcely any scope for exploitation of the poor by the rich. As Gandhiji puts it, production was almost simultaneous with consumption and distribution. Commodities manufactured in cottages and domestic factories were for immediate use and not for distant markets. Such small scale and localised production on a self-sufficiency basis automatically eliminated capitalist exploitation. It virtually established economic equality without either ruthlessly curtailing individual liberty or allowing a few individuals to boss over others. Needless to mention that, according to Gandhian ideals, the decentralised cottage industries should be organised on a cooperative and not capitalistic basis. If a few capitalists are allowed to control the domestic factories as in Japan, the cottage workers will continue to be exploited as mere labourers. /japan#/

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