Economy Of Asia

"India held back a little longer, but an Indian economist, Parth Shah, tells me that the country started looking at what was happening around them, in Taiwan, South Korea and now also China: ‘We saw that they actually changed their model and they did succeed in what they had done, and it was time for India to learn the lesson.’ That was decisive in 1991, when a debt-financed boom crashed and the foreign exchange reserve had shrunk to such a level that India was three weeks from running out of money. The crisis prompted the Minister of Finance Manmohan Singh to quote the nineteenth-century romantic Victor Hugo in parliament: ‘No power on earth can resist an idea whose time has come.’ The idea was to dismantle trade barriers and stifling regulations that held India back and kept half the population in extreme poverty. In the past, economists spoke condescendingly of the ‘Hindu growth rate’ as if there was some kind of complacency built into the country’s tradition that stopped the economy from growing faster than the population. After the reforms of 1991 and those that followed, this culture changed as if by magic and growth took off. Today, average income is three times greater than before reform and extreme poverty is only one-fifth of previous levels."

"She reads the mind behind the capitalist conspiracy to reform Hinduism thus: "Capitalism is often believed to thrive among Semitic religions such as Christianity and Islam. The argument would then run that if capitalism is to succeed in India, then Hinduism would also have to be moulded in a Semitic form"."

"‘Under the capitalist system, in order that England may live in comparative comfort, a hundred million Indians must live on the verge of starvation – an evil state of affairs, but you acquiesce in it every time you step into a taxi or eat a plate of strawberries and cream’."

"If we stop thinking of the poor as victims, or as a burden, and start recognising them as resilient and creative entrepreneurs and value-conscious consumers, a whole new world of opportunity will open up.""

"The Sultans drew from the people every rupee of tribute that could be exacted by the ancient art of taxation, as well as by straightforward robbery; but they stayed in India, spent their spoils in India, and thereby turned them back into India’s economic life. Nevertheless, their terrorism and exploitation advanced that weakening of Hindu physique and morale which had been begun by an exhausting climate, an inadequate diet, political disunity, and pessimistic religions. The usual policy of the Sultans was clearly sketched by Alau-d-din, who required his advisers to draw up “rules and regulations for grinding down the Hindus, and for depriving them of that wealth and property which fosters disaffection and rebellion.”80 Half of the gross produce of the soil was collected by the government; native rulers had taken one-sixth. “No Hindu,” says a Moslem historian, “could hold up his head, and in their houses no sign of gold or silver . . . or of any superfluity was to be seen. . . . Blows, confinement in the stocks, imprisonment and chains, were all employed to enforce payment.” When one of his own advisers protested against this policy, Alau-d-din answered: “Oh, Doctor, thou art a learned man, but thou hast no experience; I am an unlettered man, but I have a great deal. Be assured, then, that the Hindus will never become submissive and obedient till they are reduced to poverty. I have therefore given orders that just sufficient shall be left to them from year to year of corn, milk and curds, but that they shall not be allowed to accumulate hoards and property.”"

"Internal trade flourished; every roadside was—and is—a bazaar. The foreign trade of India is as old as her history;22 objects found in Sumeria and Egypt indicate a traffic between these countries and India as far back as 3000 B.C.23 Commerce between India and Babylon by the Persian Gulf flourished from 700 to 480 B.C.; and perhaps the “ivory, apes and peacocks” of Solomon came by the same route from the same source. India’s ships sailed the sea to Burma and China in Chandragupta’s days; and Greek merchants, called Yavana (Ionians) by the Hindus, thronged the markets of Dravidian India in the centuries before and after the birth of Christ.24 Rome, in her epicurean days, depended upon India for spices, perfumes and unguents, and paid great prices for Indian silks, brocades, muslins and cloth of gold; Pliny condemned the extravagance which sent $5,000,000 yearly from Rome to India for such luxuries. Indian cheetahs, tigers and elephants assisted in the gladiatorial games and sacrificial rites of the Colosseum.25 The Parthian wars were fought by Rome largely to keep open the trade route to India. In the seventh century the Arabs captured Persia and Egypt, and thereafter trade between Europe and Asia passed through Moslem hands; hence the Crusades, and Columbus."

"“The Indians,” says Megasthenes, “neither put out money at usury” (interest), “nor know how to borrow. It is contrary to established usage for an Indian either to do or to suffer wrong; and therefore they neither make contracts nor require securities.”"

"The wealth of the country reached its two peaks under Chandragupta Maurya and Shah Jehan. The riches of India under the Gupta kings became a proverb throughout the world. Yuan Chwang pictured an Indian city as beautified with gardens and pools, and adorned with institutes of letters and arts; “the inhabitants were well off, and there were families with great wealth; fruit and flowers were abundant. . . . The people had a refined appearance, and dressed in glossy silk attire; they were . . . clear and suggestive in discourse; they were equally divided between orthodoxy and heterodoxy.”41 “The Hindu kingdoms overthrown by the Moslems,” says Elphinstone, “were so wealthy that the historians tire of telling of the immense loot of jewels and coin captured by the invaders.”42 Nicolo Conti described the banks of the Ganges (ca. 1420) as lined with one prosperous city after another, each well designed, rich in gardens and orchards, silver and gold, commerce and industry.43 Shah Jehan’s treasury was so full that he kept two underground strong rooms, each of some 150,000 cubic feet capacity, almost filled with silver and gold.44 “Contemporary testimonies,” says Vincent Smith, “permit of no doubt that the urban population of the more important cities was well to do.”45 Travelers described Agra and Fathpur-Sikri as each greater and richer than London.46 Anquetil-Duperron, journeying through the Mahratta districts in 1760, found himself “in the midst of the simplicity and happiness of the Golden Age. . . . The people were cheerful, vigorous, and in high health.”47 Clive, visiting Murshidabad in 1759, reckoned that ancient capital of Bengal as equal in extent, population and wealth to the London of his time, with palaces far greater than those of Europe, and men richer than any individual in London.48 India, said Clive, was “a country of inexhaustible riches.”49 Tried by Parliament for helping himself too readily to this wealth, Clive excused himself ingeniously: he described the riches that he had found about him in India—opulent cities ready to offer him any bribe to escape indiscriminate plunder, bankers throwing open to his grasp vaults piled high with jewels and gold; and he concluded: “At this moment I stand astonished at my own moderation.”50"

"Indians of old were keenly alive to the expansion of dominions, acquisition of wealth, and the development of trade, industry and commerce. The material prosperity they gained in these various ways was reflected in the luxury and elegance that characterized the society... The adventurous spirit of the Indians carried them even as far as the North Sea, while their caravans traveled from one end of Asia to the other."

"India survived only by virtue of its patience, its superhuman power and its immense size. The levies it had to pay were so crushing that one catastrophic harvest was enough to unleash famines and epidemics capable of killing a million people at a time. Appalling poverty was the constant counterpart of the conquerors’ opulence."

"There was no middle state. A man must be of the highest rank or live miserably."

"Most towns in Hindustan are made up of earth, mud, and other wretched material; that there is no city or town (that) does not bear evident marks of approaching decay. (...) In eastern countries, the weak and the injured are without any refuge whatever; and the only law that decides all controversies is the cane and the caprice of a governor."

"As the ground is seldom tilled otherwise than by compulsion… the whole country is badly cultivated, and a great part rendered unproductive… The peasant cannot avoid asking himself this question: Why should I toil for a tyrant who may come tomorrow and lay his rapacious hands upon all I possess and value… without leaving me the means (even) to drag my own miserable existence? - The Timariots (Timurids), Governors and Revenue contractors, on their part reason in this manner: Why should the neglected state of this land create uneasiness in our minds, and why should we expend our own money and time to render it fruitful? We may be deprived of it in a single moment… Let us draw from the soil all the money we can, though the peasant should starve or abscond…"

"[The Mughals maintained] “a large army for the purpose of keeping people in subjection… No adequate idea can be conveyed of the sufferings of the people. The cudgel and the whip compel them to incessant labour… their revolt or their flight is only prevented by the presence of a military force.”"

"No artisan can be expected to give his mind to his calling in the midst of a people who are either wretchedly poor, or who, if rich, assume an appearance of poverty, and who regard not the beauty and excellence but the cheapness of an article; a people whose grandeess pay for a work of art considerably under its value and according to their own caprice… For it should not be inferred that the workman is held in esteem, or arrives at a stage of independence. Nothing but sheer necessity or blows from a cudgel keeps him employed; he never can become rich, and he feels it no trifling matter if he have the means of satisfying the cravings of hunger and of covering his body with the coarsest garment. If money be gained it does not in any measure go into his pocket, but only serves to increase the wealth of the merchant."

"…grandees pay for a work of art considerably under its value, and according to their own caprice. … When an Omrah or Mansabdar requires the services of an artisan, he sends to the bazar for him, employing force, if necessary, to make the poor man work; and after the task is finished, the unfeeling lord pays, not according to the value- of the labour, but agreeably to his own standard of fair remuneration; the artisan having reason to congratulate himself if the Korrah has not been given in part payment."

"Staggering numbers also died as collateral damage of the deliberate impoverishment by Sultans like Alauddin Khilji and Jahangir. As Braudel put it: "The levies it had to pay were so crushing that one catastrophic harvest was enough to unleash famines and epidemics capable of killing a million people at a time. Appalling poverty was the constant counterpart of the conquerors' opulence.""

"The conclusion that the decay noticed in the early 19th century and more so in subsequent decades originated with European supremacy in India, therefore, seems inescapable. The 1769-70 famine in Bengal (when, according to British record, one-third of the population actually perished), may be taken as a mere forerunner of what was to come. (...) During the latter part of the 19th century, impressions of decay, decline and deprivation began to agitate the mind of the Indian people. Such impressions no doubt resulted from concrete personal, parental and social experience of what had gone before. They were, perhaps, somewhat exaggerated at times. By 1900, it had become general Indian belief that the country had been decimated by British rule in all possible ways; that not only had it become impoverished, but it had been degraded to the furthest possible extent; that the people of India had been cheated of most of what they had; that their customs and manners were ridiculed, and that the infrastructure of their society mostly eroded. One of the statements which thus came up was that the ignorance and illiteracy in India was caused by British rule; and, conversely, that at the beginning of British political dominance, India had had extensive education, learning and literacy. By 1930, much had been written on this point in the same manner as had been written on the deliberate destruction of Indian crafts and industry, and the impoverishment of the Indian countryside."

"The cities look attractive from a distance... Rich men have gardens... The common people live in huts and hovels."

"[In the seventeenth century John De Laet (1631) summarised the information he had collected from English, Dutch and Portuguese sources regarding the Mughal empire as a whole.] “The condition of the common people in these regions (south and west) is exceedingly miserable; wages are low; workmen get only one regular meal a day, the houses are wretched and practically unfurnished, and people have not got sufficient covering to keep warm in winter.”"

"The village communities are little republics, having nearly everything they want within themselves, and almost independent of any foreign relations. They seem to last where nothing else lasts. Dynasty after dynasty tumbles down; revolution succeeds to revolution; Hindoo, Patan, Mogul, Mahratta, Sik, English are all masters in turn; but the village communities remain the same... If a country remains for a series of years the scene of continued pillage and massacre, so that villages cannot be inhabited, the scattered villagers nevertheless return whenever the power of peaceable possession revives. A generation may pass away, but the succeeding generation will return. The sons will take the place of their fathers; the same site for the village, the same position for the houses, the same lands, will be occupied by the descendants of those who were driven out when the village was depopulated..."

"When any hungry wretch takes it into his head to ruin the kingdom, he goes to the king and says to him: 'Sire; if your majesty will give me the permission to raise money and a certain number of armed men, I will pay so many millions. The king then asks how it is intended to raise the money. It is by nothing else than the seizure of everybody in the kingdom, men and women, and by dint of torture compelling them to pay what is demanded. Such financiers are hateful and avaricious men. The king generally consents to their unjust proposals, as he thereby satisfies his own greed; he accords the asked-for permission, and demands security bonds."

"[When Aurangzeb died] “he left behind him the fields of these provinces (Deccan) devoid of trees and bare of crops, their places being taken by the bones of men and beasts.”"

"The common people (live in) poverty so great and miserable that the life of the people can be depicted or accurately described only as the home of stark want and the dwelling place of bitter woe… their houses are built of mud with thatched roofs. Furniture there is little or none, except some earthenware pots to hold water and for cooking…"