ABSTRACT
A social democracy combines socialism with democracy. It is the golden mean between capitalism and communism. It gives equal weight to both liberty and equality, promoting both. Social democracy is not socialism in the sense of state ownership of means of production, as it allows private enterprise. It is socialism in the sense that no individual is deprived of basic needs and equal opportunities, and inequalities are reduced to morally justifiable or acceptable limits. Though growth of GNP is necessary, it should be sustainable and equitable. That is how social democracy contributes to cohesive development. In practical terms, a social democracy is that which provides basic needs like free and good quality education, health and social security for all. Lest such a state should tend to be authoritarian and bureaucratic, it has to be at the same time a genuine democracy, with a democratic constitution and rule of law both for the state and people, and decentralised, being accessible and responsive to people. That India should be a social democracy and a welfare state is written in its constitution. The paper argues that India should be a genuine social democracy. Tax efforts are presently inadequate for this purpose.
