kalyan on the colossal colonial loot by the limeys, and now by the neo-colonialists.
From: Shahryar
By Dr S Kalyanaraman |
Lord Curzon, the late Viceroy of India, in an address delivered at the great Delhi Durbar in 1901 said: "Powerful Empires existed and flourished here [in India] while Englishmen were still wandering painted in the woods, and while the British Colonies were a wilderness and a jungle. India has left a deeper mark upon the history, the philosophy, and the religion of mankind, than any other terrestrial unit in the universe."
R. C. Dutt, author of the Economic History of India explained the impoverishment of colonial India because of the colonial loot of her wealth: "A sum reckoned at twenty millions of English money, or a hundred millions of American money [some other authorities put it much higher], which it should be borne in mind is equal to half the net revenues of India, is remitted annually from this country [India] to England, without a direct equivalent. Think of it! One-half of what we [in India] pay as taxes goes out of the country, and does not come back to the people.
No other country on earth suffers like this at the present day; and no country on earth could bear such an annual drain without increasing impoverishment and repeated famines. We denounce ancient Rome for impoverishing Gaul and Egypt, Sicily and Palestine, to enrich herself. We denounce Spain for robbing the New World and the Netherlands to amass wealth. England is following exactly the same practice in India. Is it strange that she is converting India into a land of poverty and famine?"
Economic and social impact of colonial rule in India is summarised by Angus Maddison (1971): "British interests were of several kinds. At first the main purpose was to achieve a monopolistic trading position. Later it was felt that a regime of free trade would make India a major market for British goods and a source of raw materials, but British capitalists who invested in India, or who sold banking or shipping service there, continued effectively to enjoy monopolistic privileges. India also provided interesting and lucrative employment for a sizeable portion of the British upper middle class, and the remittances they sent home made an appreciable contribution to Britain's balance of payments and capacity to save. Finally, control of India was a key element in the world power structure, in terms of geography, logistics and military manpower. The British were not averse to Indian economic development if it increased their markets but refused to help in areas where they felt there was conflict with their own economic interests or political security. Hence they refused to give protection to the Indian textile industry until its main competitor became Japan rather than Manchester, and they did almost nothing to further technical education. They introduced some British concepts of property, but did not push them far when they met vested interests. The British educational effort was very limited. There were no major changes in village society, in the caste system, the position of untouchables, the joint family system, or in production techniques in agriculture. British impact on economic and social development was, therefore, limited. Total output and population increased substantially but the gain in per capita output was small or negligible."
Describing the social structure of India at the end of British rule, Angus Maddison notes that 18 per cent of labour force in non-village economy accounted for 44 per cent of national income after tax; that 75 per cent of labour force in village economy accounted for 54 per cent of national income after tax. British officials and military British capitalists, plantation owners, traders, bankers and managers who accounted for 0.06 per cent of labour force took away five per cent of national income after tax. Their allies, the native princes and zamindars took about three per cent. Thus a total of eight per cent was appropriated by the ruling class. (Angus Maddison, 1971, Class Structure and Economic Growth: India & Pakistan since the Moghuls, Taylor and Francis, Table 3-4). "Little was done to promote agricultural technology.There was some improvement in seeds, but no extension service, no improvement in livestock and no official encouragement to use fertilizer. Lord Mayo, the Governor General, said in 1870, 'I do not know what is precisely meant by ammoniac manure. If it means guano, superphosphate or any other artificial product of that kind, we might as well ask the people of India to manure their ground with champagne." (p. 53 opcit.)
The story of Independent India has been a continuation of the social structure left by the British colonial regime with the ruling class appropriating a significant percentage of the national income. The impoverishment of the 65 per cent of the people dependent upon the village economy is the most serious impediment to India regaining its rightful place in the comity of nations as an engine for increasing total world output. Maddison had shown that "India had the world's largest economy in the 1st century and 11th century, with a 32.9 per cent share of world GDP in the 1st century and 28.9 per cent in 1000 CE. United India had 22.6 per cent of global GDP in the year 1700 compared to 23.3 per cent of entire Europe".
It is possible to regain that stature for India in the world economy. Two immediate steps should be taken.
The monies held in Swiss Bank accounts by Indians should be nationalised under Benami Transactions Prohibition Act, 1988 and the onus of proving legitimate holdings should be on the account holders. Swiss Banks should be asked to remit the monies into the Indian treasury. Holding benami accounts is a cognizable offence. This was an Act intended to prohibit benami transactions and to establish the right of the State to recover property held benami. Under 5 of the Act, Property held benami liable to acquisition-(1) All properties held benami shall be subject to acquisition by such authority, in such manner and after following such procedure, as may be prescribed. (2) For the removal of doubts, it is hereby declared that no amount be payable for the acquisition of any property under sub-section(1)
2. The dismal trend of negative growth rate in agriculture should be reversed.
Deposits in Banks located in the territory of Switzerland by nationals of following countries:
| India | $1456 billion |
| Russia | $470 billion |
| UK | $390 billion |
| Ukraine | $100 billion |
| China | $96 billion |
Primacy of agriculture in the economy of Hindusthan
There is no industrial-services-driven economic model which can provide for full employment in a situation where 65 per cent of the population is in the village economy. For the foreseeable future, urban facilities and employment opportunities have to be provided to this majority population dependent upon the village economy.
For the quarter ended December 2008, GDP growth by sectors has been presented:
Growth in services 106 per cent of incremental GDP at factor cost, growth in manufacturing remains flat, growth in mining 2 per cent of incremental GDP, growth in electricity, water, etc., one per cent and agriculture declines by nine per cent.
The staggering decline in agriculture has a devastating effect on the standard of living of the majority of the population dependent upon the village economy. Farmers' suicides caused by the inability of the farmers to repay the loans taken from moneylenders are only the tip indicator of the iceberg. The farm incomes have to become remunerative and the agriculturist has to get his/her due share of the national income. This can happen if a National Water Grid is put in place with assured 24X7 availability of water for irrigation. This Grid can bring about a veritable revolution in Indian economy. About nine crore acres of additional alluvial land with assured irrigation facilities can be created and distributed to 9 crore agricultural families at the rate of 1 acre per family. This will create the potential to have three or four crops per year, more than doubling the agricultural production and to feed the world caught in a deep recession.
This blue revolution accompanied by tough fiscal measures to repatriate stashed away wealth in Swiss banks and other foreign financial sanctuaries will usher in a new dawn for Hindusthan and place her on the map of global economy as an economic powerhouse. Hindusthan should also take the lead in forming an Indian Ocean Community of 50 Indian Ocean Rim states from Madagascar to Tasmania with a potential total GDP of over six trillion dollars as a counter poise to the European community. The IOC, in the context of the Special Economic Zone created in the Indian Ocean within a 200-km zone from the coastline will create opportunities for growth in a world caught in deep recession. Project such as Trans-Asian Highway and Trans-Asian Railway should be taken up to energize the IOC and make it a global socio-economic reality.
Hindusthan has 32 per cent of the world's thorium reserves (circa 2,25,000 tonnes of thorium metal is available for nuclear power programme) and the development of fast-breeder reactor technology in Hindusthan, using thorium blanket has the potential to generate the electricity required to support the nation's development imperative. India should also encourage researches into cold fusion technologies, consistent with her stature as a space power. Hindusthan's space technologies and competence in information technologies can be of significant benefit to the IOC nations. Given her geostrategic location, Hindusthan has to play a lead role in maintaining the security of the sea-lanes for navigation across the Indian Ocean.
(The writer is the Director, Sarasvati Research Centre and former Sr. Exec., Asian Development Bank.)
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