76 SOCIAL SCIENTIST analysis of the deepening crisis and the failure of previous Plans, but purports to propound a new strategy of industrial development as a way out. Contrary to the pious declarations of the document, the strategy set out as well as the economic policies of the Janata government, do not constitute a radical departure from the strategy and policies pursued by the previous regime. The class character of these policies continues to be the same, that is, in favour of big landlords. While in essence there is continuity, the deepening of the economic crisis, and the experience of the recent political crisis, necessitate both a new ideological garb and a more intensive pursuit of these policies. In this lies the novelty of the new strategy. Employment and Technology The document declares employment generation on a massive scale to be a major objective of industrial policy. It identifies the failure on this front in previous plans as being due to a highly capital intensive technology and product mix. It therefore advocates a strategy of industrial expansion based on small-scale, labour intensive technology as the basic solution to the problem of unemployment.. This argument obscures the fact that the real constraint on the expansion of employment is not the capital intensity of technology per se, but the overall, persistent stagnation in investment. As pointed out earlier, the roots of this stagnation are to be traced to the path of capitalist development pursued so far. Further, the relationship between large and small industry is often one of interdependence, where th^smaTT^lndustry depends on the large either for inputs or markets or both. Thus the proclaimed strategy which counterposes the development of small and large industry is self-defeating. With regard to the argument that small industry creates greater employment, it must be pointed out that small industry is not always labour intensive. Even where it is labour intensive, it is not necessarily capital saving. ^ /It is, however, true that the thrust towards small industry will create more employers. In this context, it must be pointed out that historically sjnallj>roduc t ion has provided the social basis Jor fascist movements. It is also to be emphasised that small production impedes the socialization of production, and effective organization of the working class. It is further to be noted that the protection sought to be given to village and traditional industries overlooks the relations of domination and exploitation of the direct producers by merchants, moneylenders and landlords.