New Frontiers in Asia, a Challenge to the West

New Frontiers in Asia, a Challenge to the West

New Frontiers in Asia, a Challenge to the West

New Frontiers in Asia, a Challenge to the West

Excerpt

THAT INDIA possesses all the necessary qualifications for developing a prosperous expanding economy that could provide important outlets for American surplus production needs no further elaboration. The important question is: what has prevented India from developing such an economy in the past, and is it likely that these obstacles will continue to exist in the postwar period? The answer to that question is, in brief, that for 150 years India has been a British colony with an economy suited to the needs of British industry and finance, and that there is as yet no evidence that she will be able to free herself from that colonial relationship in the immediate future.

The conditions under which Great Britain might be expected to give up her preferential position in the Indian market and the special advantages that she enjoys by virtue of her control over Indian finance, industry, and trade, will form the subject of a later chapter. Here we are concerned with the background of India's present economic situation -- namely her development as the colony of a highly industrialized power.

Dr. Vera Anstey, a noted British authority on Indian economics, has aptly described India as a case of "arrested economic development." Prior to the British conquest, India's economy was based on small-scale agriculture combined with a highly developed system of handicraft industries, and the country enjoyed a large measure of economic self-sufficiency. Following the establishment of British rule and the completion of the industrial revolution in England, however, British economic policy toward India was designed to satisfy the needs of the new British manufacturing class for raw materials and markets. Indian handicrafts, unable to compete with the flood of British machine-made goods, declined in importance or were completely ruined. The basis of the traditional village economy was thus destroyed and, in the absence of a compensating development of modern factory in-

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.