This document summarizes an academic paper about the origins of uneven economic development between India and Britain from the 17th century to Indian independence in 1947. It presents a theoretical model showing how small initial differences in capital accumulation between two regions can lead to increasing specialization through trade, with one region industrializing while the other declines. It argues this helps explain India's relative economic stagnation under British colonial rule from 1757-1947, as British policies disrupted India's manufacturing industries and shifted its trade to primary goods exports and imports of British manufactures. While various factors contributed, these policies may have exacerbated India's deindustrialization according to the theoretical framework presented. The document considers some counterarguments but maintains British rule likely reduced India's
Impact Of British Rule De Industrialisation In IndiaDr. Subir Maitra
This document discusses the decline of handicrafts in India during British rule, known as de-industrialization. It provides various causes for the decline, including the disappearance of royal courts which supported artisans, the influence of British tastes which favored imported goods, exploitation of craftsmen by merchants, and the tariff policies pursued by Britain. Economic historians disagree on whether and when de-industrialization occurred. Nationalist economists argue it led to the decline of handicrafts, while others believe it was a myth or only occurred later. The document examines various indices and data used to analyze de-industrialization and whether India experienced absolute or relative de-industrialization under the British.
The document discusses the concept of economic drain from India to Britain during the colonial period. It defines economic drain as a portion of India's wealth and resources that was transferred to Britain for political reasons rather than being available for India's own development. The drain took the form of exports exceeding imports, resulting in a unilateral transfer of wealth. It consisted of an internal drain through taxes and an external drain of unrequited exports that did not return equivalent imports. Estimates show a significant portion of India's annual revenues, perhaps as much as one-fourth, was drained away to Britain. While critics argue the drain exploited India, supporters claim it enabled infrastructure development, but nationalists strongly objected to this view.
India has experienced significant growth in exports and imports since liberalizing its economy in 1991. Exports have increased from $442.4 billion in 2012 to include merchandise like software, petrochemicals, and pharmaceuticals with top partners being the EU, US, and UAE. Imports have also risen, totaling $616.7 billion in 2012 consisting of goods such as crude oil, electronics, and iron/steel with main sources being China, the EU, and Saudi Arabia. While economic growth has slowed in recent years, foreign investment and trade continue to be important drivers of India's developing economy.
The document discusses the industrial sector in India, including its structure, types of industries, and policies that have shaped industrial development. It covers primary, intermediate, and consumer goods industries, as well as the public, private, and joint sectors. Industry is also categorized based on investment size and type of ownership. The major industrial policies that have been implemented in India include the Industrial Policy Resolutions, liberalization policies, Special Economic Zones Act, and Micro, Small and Medium Enterprises Development Act. Challenges facing small industries are also outlined.
Dadabhai Naoroji was an Indian scholar and political leader who is considered the "Grand Old Man of India" and the "Father of Indian Nationalism". He developed the "Drain of Wealth" theory to explain how British rule in India negatively impacted the country's economy by draining its wealth. According to Naoroji, Britain exploited India's resources through factors such as lack of Indian representation in government, lack of Indian labor and capital influx, expenses of British administration being borne by India, infrastructure expenses in Britain also being paid by India, India being plundered of its resources through free trade, and capital drain as foreign income earners returned to their home countries with wealth. Naoroji believed India
Economic thoughts of Dr. B. R. AmbedkarVenu Praveen
Ambedkar was the first Doctoral Degree holder in economics among Indians. He is one of the great economist both by training and by practice. His economic expertise covers public finance , Monetary economics , agricultural economy and activities of uplifting downtrodden socially and economically. also he was a pioneering feminist of modern India.
The document provides historical economic data on India's GDP as a percentage of China's GDP from 1525-1950 CE during the Mughal Empire. It notes that in the early 16th century India's GDP was 40-50% of China's, reaching a peak of 90% in 1650-1675 CE under Emperor Shah Jahan before declining to 7% of the US by 1925-1950 as British rule took hold. It also lists annual government revenue amounts for several Mughal emperors.
Impact Of British Rule De Industrialisation In IndiaDr. Subir Maitra
This document discusses the decline of handicrafts in India during British rule, known as de-industrialization. It provides various causes for the decline, including the disappearance of royal courts which supported artisans, the influence of British tastes which favored imported goods, exploitation of craftsmen by merchants, and the tariff policies pursued by Britain. Economic historians disagree on whether and when de-industrialization occurred. Nationalist economists argue it led to the decline of handicrafts, while others believe it was a myth or only occurred later. The document examines various indices and data used to analyze de-industrialization and whether India experienced absolute or relative de-industrialization under the British.
The document discusses the concept of economic drain from India to Britain during the colonial period. It defines economic drain as a portion of India's wealth and resources that was transferred to Britain for political reasons rather than being available for India's own development. The drain took the form of exports exceeding imports, resulting in a unilateral transfer of wealth. It consisted of an internal drain through taxes and an external drain of unrequited exports that did not return equivalent imports. Estimates show a significant portion of India's annual revenues, perhaps as much as one-fourth, was drained away to Britain. While critics argue the drain exploited India, supporters claim it enabled infrastructure development, but nationalists strongly objected to this view.
India has experienced significant growth in exports and imports since liberalizing its economy in 1991. Exports have increased from $442.4 billion in 2012 to include merchandise like software, petrochemicals, and pharmaceuticals with top partners being the EU, US, and UAE. Imports have also risen, totaling $616.7 billion in 2012 consisting of goods such as crude oil, electronics, and iron/steel with main sources being China, the EU, and Saudi Arabia. While economic growth has slowed in recent years, foreign investment and trade continue to be important drivers of India's developing economy.
The document discusses the industrial sector in India, including its structure, types of industries, and policies that have shaped industrial development. It covers primary, intermediate, and consumer goods industries, as well as the public, private, and joint sectors. Industry is also categorized based on investment size and type of ownership. The major industrial policies that have been implemented in India include the Industrial Policy Resolutions, liberalization policies, Special Economic Zones Act, and Micro, Small and Medium Enterprises Development Act. Challenges facing small industries are also outlined.
Dadabhai Naoroji was an Indian scholar and political leader who is considered the "Grand Old Man of India" and the "Father of Indian Nationalism". He developed the "Drain of Wealth" theory to explain how British rule in India negatively impacted the country's economy by draining its wealth. According to Naoroji, Britain exploited India's resources through factors such as lack of Indian representation in government, lack of Indian labor and capital influx, expenses of British administration being borne by India, infrastructure expenses in Britain also being paid by India, India being plundered of its resources through free trade, and capital drain as foreign income earners returned to their home countries with wealth. Naoroji believed India
Economic thoughts of Dr. B. R. AmbedkarVenu Praveen
Ambedkar was the first Doctoral Degree holder in economics among Indians. He is one of the great economist both by training and by practice. His economic expertise covers public finance , Monetary economics , agricultural economy and activities of uplifting downtrodden socially and economically. also he was a pioneering feminist of modern India.
The document provides historical economic data on India's GDP as a percentage of China's GDP from 1525-1950 CE during the Mughal Empire. It notes that in the early 16th century India's GDP was 40-50% of China's, reaching a peak of 90% in 1650-1675 CE under Emperor Shah Jahan before declining to 7% of the US by 1925-1950 as British rule took hold. It also lists annual government revenue amounts for several Mughal emperors.
The document provides guidance on how to write an effective introduction for a formal paper. An introduction should attract the reader's attention with a hook, provide necessary background or definitions, and state the thesis clearly. The thesis should communicate the paper's significance and take an original position that others could challenge or oppose. An introduction typically includes a hook to engage the reader, a brief background if needed, and a clear thesis statement outlining the paper's argument or process. It should be concise and avoid long background details or definitions not essential to understanding the thesis. The goal is to attract and orient the reader to the central idea and purpose of the paper.
- The document discusses using an aggregate production function to isolate the effects of technical change on output over time.
- It presents a method for estimating an index of technical change (A(t)) based on time series data for output per worker, capital per worker, and the share of capital, using the assumption that factors are paid their marginal products.
- The method is applied to U.S. data from 1909-1949 to generate an estimated index of technical change, which increased steadily over that period.
Ancient Egypt was one of the earliest and most advanced civilizations, located along the Nile River in northeast Africa. It was divided into Upper and Lower Egypt, and was ruled by powerful pharaohs who were believed to be gods. The Egyptians built massive pyramids and developed hieroglyphics, mummification practices, and other cultural achievements that still fascinate modern audiences. When the biblical figure Moses demanded the pharaoh release the Israelites, a series of plagues were inflicted on Egypt as divine punishment for refusing this command.
This document outlines the details of the Inter Hall Ad Design Competition 2010. It describes the specifications of the car being advertised called the Vayu, including its ability to drive 1000 miles on one fill of air and 30 liters of fuel. It also lists the deliverables for the competition which are a black and white poster, color poster, hoarding, website at vayuthecar.com, radio commercial, and video commercial. The goal is for teams to create a branding and advertising campaign for this new eco-friendly car called the Vayu.
O documento discute propriedades coligativas como pressão de vapor, ponto de fusão, ponto de ebulição e osmose. Explica como a presença de um soluto afeta essas propriedades, incluindo a Lei de Raoult e como soluções afetam a temperatura de fusão e ebulição de um solvente. Também fornece exemplos como o sal abaixando o ponto de congelamento da água e aumentando o ponto de ebulição para cozinhar macarrão mais rápido.
The document discusses that the value of technology is not just about apps, but how people configure platforms and connect them together in new ways to solve specific problems. It notes that niche user groups can deliver more value than mass production models. Structuring configurations can help with re-use while still allowing for expression. The most important things are learning from each other and sharing stories of both success and failure.
This document provides information about the city of Pamplona, Spain. Pamplona is the capital of Navarra, located in northern Spain. Some key facts about Pamplona are that it is home to the famous San Fermin festival where people come from around the world to see running of the bulls. The document also mentions local activities like visiting parks, the local Osasuna football team, and shopping centers in Pamplona.
The document discusses using technology to engage gifted learners through higher-order thinking skills (HOTS) challenges. It recommends using familiar software like Keynote, ComicLife, and GarageBand as well as Web 2.0 tools like Wordle, Google Docs, Glogster, and Prezi to encourage analysis, evaluation, and creation in line with Bloom's revised taxonomy of learning domains. Specific apps and websites are presented as examples for digital storytelling, brainstorming, providing feedback, and collaborating online.
The family has three children ranging from ages 9 to 16. They eat a mainly rice and seafood-based diet featuring spices and hot peppers. Buddhism is an important part of their culture - the oldest daughter was a nun for four years and most homes have a shrine for prayer. Betel nut is a chewed but unhealthy substance used like tobacco. Transportation is primarily trishaws, which are often rented.
Rugby is a contact team sport played between two teams of 15 players each. The main way to score points is by grounding the ball in the opponent's in-goal area, which is called a try and scores 5 points. Players advance the ball by running with it or kicking it while teammates can pass the ball laterally or backwards during play, with the aim of bringing the ball closer to the opponent's goal line to score points.
This is a selection of Facebook and Twitter posts intending to inspire students of my “Social Media Content Strategy” lecture.
I hope you get inspired, too!
This book provides an in-depth treatment of the overlapping generations model in economics incorporating production. It analyzes competitive equilibria and dynamics, optimal allocations, and various policy issues. The first chapter investigates existence, uniqueness, and stability of equilibrium as well as capital dynamics. The second chapter analyzes optimality of allocations using value functions and conditions. Later chapters discuss policy issues like transfers, pensions, spending, and debt sustainability. The book emphasizes global dynamics, general preferences and technologies, and tools for policy analysis involving intergenerational transfers.
El documento presenta una oferta de vehículos de otoño que incluye modelos Ford Escort de 1996, Ford Focus de 2000, Ford Galaxy de 2002, Mercedes CLK de 2000 y Seat Ibiza de 2003, con precios entre 6500 y 18350 euros, kilómetros entre 2500 y 80550, y extras como airbags, pintura metalizada o descapotable. Se incluye una tabla comparativa de precios.
The document defines and categorizes different types of software. It discusses system software, including operating systems and utility software. It explains that operating systems control hardware, provide interfaces, manage memory and tasks. It also defines application software, including personal, workgroup, and enterprise-level applications. Overall, the document provides a comprehensive overview of the main categories and functions of different software types.
Indian economy on the eve of independencerajarshi1974
The document discusses the impact of British colonial rule on the Indian economy. It states that the sole purpose of British rule was to transform India into a feeder economy for British industries. Before the British, India had a thriving manufacturing sector, particularly in handicrafts. Under the British, India became a net importer rather than exporter and its share of the global economy declined from 23% to 3%. Agriculture also stagnated under British policies like the zamindari system. After independence, India faced challenges reviving its economy and pursued policies like import substitution to develop domestic industries.
The document provides guidance on how to write an effective introduction for a formal paper. An introduction should attract the reader's attention with a hook, provide necessary background or definitions, and state the thesis clearly. The thesis should communicate the paper's significance and take an original position that others could challenge or oppose. An introduction typically includes a hook to engage the reader, a brief background if needed, and a clear thesis statement outlining the paper's argument or process. It should be concise and avoid long background details or definitions not essential to understanding the thesis. The goal is to attract and orient the reader to the central idea and purpose of the paper.
- The document discusses using an aggregate production function to isolate the effects of technical change on output over time.
- It presents a method for estimating an index of technical change (A(t)) based on time series data for output per worker, capital per worker, and the share of capital, using the assumption that factors are paid their marginal products.
- The method is applied to U.S. data from 1909-1949 to generate an estimated index of technical change, which increased steadily over that period.
Ancient Egypt was one of the earliest and most advanced civilizations, located along the Nile River in northeast Africa. It was divided into Upper and Lower Egypt, and was ruled by powerful pharaohs who were believed to be gods. The Egyptians built massive pyramids and developed hieroglyphics, mummification practices, and other cultural achievements that still fascinate modern audiences. When the biblical figure Moses demanded the pharaoh release the Israelites, a series of plagues were inflicted on Egypt as divine punishment for refusing this command.
This document outlines the details of the Inter Hall Ad Design Competition 2010. It describes the specifications of the car being advertised called the Vayu, including its ability to drive 1000 miles on one fill of air and 30 liters of fuel. It also lists the deliverables for the competition which are a black and white poster, color poster, hoarding, website at vayuthecar.com, radio commercial, and video commercial. The goal is for teams to create a branding and advertising campaign for this new eco-friendly car called the Vayu.
O documento discute propriedades coligativas como pressão de vapor, ponto de fusão, ponto de ebulição e osmose. Explica como a presença de um soluto afeta essas propriedades, incluindo a Lei de Raoult e como soluções afetam a temperatura de fusão e ebulição de um solvente. Também fornece exemplos como o sal abaixando o ponto de congelamento da água e aumentando o ponto de ebulição para cozinhar macarrão mais rápido.
The document discusses that the value of technology is not just about apps, but how people configure platforms and connect them together in new ways to solve specific problems. It notes that niche user groups can deliver more value than mass production models. Structuring configurations can help with re-use while still allowing for expression. The most important things are learning from each other and sharing stories of both success and failure.
This document provides information about the city of Pamplona, Spain. Pamplona is the capital of Navarra, located in northern Spain. Some key facts about Pamplona are that it is home to the famous San Fermin festival where people come from around the world to see running of the bulls. The document also mentions local activities like visiting parks, the local Osasuna football team, and shopping centers in Pamplona.
The document discusses using technology to engage gifted learners through higher-order thinking skills (HOTS) challenges. It recommends using familiar software like Keynote, ComicLife, and GarageBand as well as Web 2.0 tools like Wordle, Google Docs, Glogster, and Prezi to encourage analysis, evaluation, and creation in line with Bloom's revised taxonomy of learning domains. Specific apps and websites are presented as examples for digital storytelling, brainstorming, providing feedback, and collaborating online.
The family has three children ranging from ages 9 to 16. They eat a mainly rice and seafood-based diet featuring spices and hot peppers. Buddhism is an important part of their culture - the oldest daughter was a nun for four years and most homes have a shrine for prayer. Betel nut is a chewed but unhealthy substance used like tobacco. Transportation is primarily trishaws, which are often rented.
Rugby is a contact team sport played between two teams of 15 players each. The main way to score points is by grounding the ball in the opponent's in-goal area, which is called a try and scores 5 points. Players advance the ball by running with it or kicking it while teammates can pass the ball laterally or backwards during play, with the aim of bringing the ball closer to the opponent's goal line to score points.
This is a selection of Facebook and Twitter posts intending to inspire students of my “Social Media Content Strategy” lecture.
I hope you get inspired, too!
This book provides an in-depth treatment of the overlapping generations model in economics incorporating production. It analyzes competitive equilibria and dynamics, optimal allocations, and various policy issues. The first chapter investigates existence, uniqueness, and stability of equilibrium as well as capital dynamics. The second chapter analyzes optimality of allocations using value functions and conditions. Later chapters discuss policy issues like transfers, pensions, spending, and debt sustainability. The book emphasizes global dynamics, general preferences and technologies, and tools for policy analysis involving intergenerational transfers.
El documento presenta una oferta de vehículos de otoño que incluye modelos Ford Escort de 1996, Ford Focus de 2000, Ford Galaxy de 2002, Mercedes CLK de 2000 y Seat Ibiza de 2003, con precios entre 6500 y 18350 euros, kilómetros entre 2500 y 80550, y extras como airbags, pintura metalizada o descapotable. Se incluye una tabla comparativa de precios.
The document defines and categorizes different types of software. It discusses system software, including operating systems and utility software. It explains that operating systems control hardware, provide interfaces, manage memory and tasks. It also defines application software, including personal, workgroup, and enterprise-level applications. Overall, the document provides a comprehensive overview of the main categories and functions of different software types.
Indian economy on the eve of independencerajarshi1974
The document discusses the impact of British colonial rule on the Indian economy. It states that the sole purpose of British rule was to transform India into a feeder economy for British industries. Before the British, India had a thriving manufacturing sector, particularly in handicrafts. Under the British, India became a net importer rather than exporter and its share of the global economy declined from 23% to 3%. Agriculture also stagnated under British policies like the zamindari system. After independence, India faced challenges reviving its economy and pursued policies like import substitution to develop domestic industries.
The Indian economy on the eve of independence was characterized by low levels of economic development, stagnation in the agricultural sector, and deindustrialization under the colonial rule which aimed to transform India into a supplier of raw materials and market for British goods. The national per capita income was very low and poverty was rampant. After independence, India adopted a mixed economy approach under which the government played a key role in development through five-year plans while allowing private enterprise. The early plans aimed for self-reliant growth, modernization, and more equitable distribution of wealth through policies like land reforms and developing agriculture and industry.
The document provides an overview of the Indian economy on the eve of independence and the economic challenges facing the newly independent nation. It discusses the colonial policies that hindered India's economic development and left it with low levels of industrialization, widespread poverty, and a lack of infrastructure and modernization. The new government aimed to achieve balanced economic growth, modernization, self-reliance, and equity through a mixed economy approach and five-year plans. Key goals were land reforms, boosting agriculture through the Green Revolution, and increasing investment in infrastructure and industry. However, building a strong, self-sufficient economy remained a significant challenge.
- India's economy was transformed under British colonial rule from an independent economy focused on agriculture and handicrafts to a colonial economy focused on exporting raw materials and importing British manufactured goods.
- Key policies like deindustrialization, lack of infrastructure investment in India, and restricting India's foreign trade weakened India's economic development and caused per capita income to decline relative to Britain.
- At independence, India adopted a mixed economy, combining socialist policies like economic planning with private enterprise, in order to promote equitable growth while maintaining economic freedom.
Dada Bhai Naoroji (1815-1917) was the first Indian to occupy a seat in the British parliament. He argued that British colonial policies drained India's wealth and resources, impoverishing the Indian people. Specifically, he believed the drain of taxes, salaries, and business profits to Britain, as well as excessive spending on European administration and military activities, prevented India's economic development and caused widespread poverty. Naoroji suggested reducing this drain by equalizing salaries between British and Indian officials and limiting military expenditures. He is regarded as a founder of Indian economic thought and nationalism.
Essay On India In World War 1
Essay On Indian Historiography
Short Essay on History of India
India A Developing Country
Essay on It Industry In India
Essay On Nationalism In India
Essay on India—an Emerging Power in the World
Essay On Indian English Literature
Essay on Geography of India
Essay on India China Economic Growth
The Scenic Beauty Of India
Essay On Growth Of India
My Trip To India Essay
India s Development And Growth Essay
The British Rule Of India Essay
Essay on Indian Music
Ancient India Essay
India
The Indian economy at independence was primarily agricultural with over 85% of the population engaged in farming. Agriculture was stagnant under British rule, with low productivity and output growth of just 0.5% annually. The industrial sector was also underdeveloped to serve British interests in maintaining India's role as an exporter of raw materials and importer of British manufactured goods. Infrastructure like railways began under the British but mainly benefited their economic and administrative needs rather than broader development. Overall, the Indian economy was in a poor state with a large rural population and little industrialization by the time of independence.
The document provides an overview of the Indian economy, including key sectors. It discusses the history of the Indian economy from ancient times through British colonial rule to the present. Some key points:
- Agriculture has historically been the largest employment sector but its contribution to GDP has declined as other sectors have grown.
- Manufacturing, especially in industries like petrochemicals, pharmaceuticals, automotive and engineering, has increased significantly since economic reforms in the 1990s.
- The services sector now contributes the largest share (57%) to India's GDP, with industries like IT and business outsourcing among the fastest growing.
This document provides an overview of industrialization in India from ancient times to the present. It discusses the key periods of industrial development including the ancient and Mughal eras, the impact of British colonial rule, and policies and plans for industrialization after independence under Nehru, Indira Gandhi, and subsequent governments. Major industries discussed include cotton, iron and steel, mining, railways, and policies around licensing, public sector involvement, and liberalization in the post-1991 era.
The document summarizes the negative economic impact of British colonial rule in India. It led to deindustrialization, decline of the handloom/handicraft sector, commercialization of agriculture focused on exports, and massive wealth extraction in the form of revenue drained from India to Britain. India was transformed from a manufacturing economy into primarily an exporter of raw materials and importer of British manufactured goods. This arrested India's economic development and weakened its domestic industry.
Indian entrepreneurship has a long history, though the term is relatively new. After independence in 1947, India sought to revive an entrepreneurial spirit after centuries of foreign domination hurt indigenous business. Dr. Akhouri notes that pre-colonial India had thriving trade and skilled artisans, but Portuguese and British colonizers later forced Indian entrepreneurs into trader roles while taking the entrepreneur roles themselves. This colonial policy led to a decline in Indian business. After independence, India worked to rebuild an entrepreneurial mindset and economy.
The Indian economy on the eve of independence in 1947 was underdeveloped and stagnant due to British colonial rule. Around 85% of Indians lived in rural areas and depended on agriculture, however the agricultural sector had stagnated under the zamindari system and commercialization of crops. Industry was neglected, with the colonial government enacting policies that destroyed India's traditional industries and reduced India to a supplier of raw materials and market for British manufactured goods. Infrastructure like railways and ports was developed but not for the benefit of Indians. The population faced high levels of poverty, illiteracy, and disease. India's economic growth was less than 2% annually and per capita income was very low. The nation faced major challenges in developing its
Indian Economy at the eve of Independence. Aaditya Pandey
Under British colonial rule, the Indian economy experienced significant underdevelopment and stagnation. Agriculture was the primary occupation but was inefficient due to the colonial land revenue system and lack of infrastructure. The industrial sector declined as the British pursued a policy of de-industrialization, destroying India's handicraft industry. India primarily exported raw materials and imported finished British goods, leading to a large trade surplus that drained the Indian economy. Overall economic growth was less than 2% annually and per capita income growth was half a percent. Infrastructure like railways and ports was developed mainly to benefit British interests rather than support Indian development.
British rule in India had devastating consequences for the country's economy and society. When the British arrived in the 1600s, India accounted for 23% of the global economy, but by the time they left in 1947 this had plummeted to under 4% as Britain forcibly deindustrialized India to serve their own economic interests. The railways and other infrastructure built by the British also primarily benefited Britain rather than Indians. Partition in 1947 left over a million dead and millions displaced, failing to account for religious and cultural diversity in the country. Overall, British colonial rule exploited India's resources and people for over two centuries to finance Britain's own industrial revolution, with little long term benefit provided to India.
Gurcharan Das' book "India Unbound" analyzes why India failed to industrialize as rapidly as other countries despite having significant infrastructure and trade by 1914. Das argues that India's development strategy after independence of pursuing an inward-looking, state-led model of industrialization through massive public sector investments was flawed and led to inefficiency. An alternative strategy proposed by Bombay economists of focusing on labor-intensive small industries producing simple goods for domestic consumption and export may have been better suited to India's resources and needs. Additionally, Das discusses the impact of British colonial rule on India's development, noting it had positive and negative effects.
Gurcharan Das' book "India Unbound" analyzes why India failed to industrialize as rapidly as other countries despite having significant infrastructure and trade by 1914. Das argues that India's development strategy after independence of pursuing an inward-looking, state-led model of industrialization through massive public sector investments was flawed and led to inefficiency. An alternative strategy proposed by Bombay economists of focusing on labor-intensive small industries producing simple goods for domestic consumption and export may have been better suited to India's resources and needs. Additionally, Das discusses the impact of British colonial rule on India's development, noting it had positive and negative effects.
La Unión Europea ha acordado un embargo petrolero contra Rusia en respuesta a la invasión de Ucrania. El embargo prohibirá las importaciones marítimas de petróleo ruso a la UE y pondrá fin a las entregas a través de oleoductos dentro de seis meses. Esta medida forma parte de un sexto paquete de sanciones de la UE destinadas a aumentar la presión económica sobre Moscú y privar al Kremlin de fondos para financiar su guerra.
This paper proposes a theoretical model to distinguish between "reproductive cycles" and "nonreproductive cycles" and explain their relationship to long economic expansions and crises. The authors define a reproductive cycle as one where a economic downturn restores conditions for rapid economic growth, while a nonreproductive cycle requires fundamental changes to institutions. They argue long expansions are characterized by reproductive cycles that sustain profitability, while long crises feature nonreproductive cycles that lead to stagnation until a new social structure of accumulation is established. The authors present evidence that business cycles function differently depending on whether it is an expansion or crisis period of the long swing in economic activity.
This document presents an alternative account of the productivity slowdown in the United States since the mid-1960s. It argues that declining work intensity and lagging business innovation, which have been overlooked by conventional economic analyses, provide crucial clues. The authors develop a "social" model of productivity growth integrating technical and social factors. An econometric test shows their model can account for almost all of the productivity slowdown. The analysis raises issues for further research but provides a promising approach to solving the puzzle.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
La Unión Europea ha acordado un paquete de sanciones contra Rusia por su invasión de Ucrania. Las sanciones incluyen restricciones a las transacciones con bancos rusos clave y la prohibición de la venta de aviones y equipos a Rusia. Los líderes de la UE esperan que las sanciones aumenten la presión económica sobre Rusia y la disuadan de continuar su agresión contra Ucrania.
This document summarizes an article titled "Increasing Returns and Long-Run Growth" by Paul M. Romer. It proposes an economic growth model where knowledge is assumed to have increasing marginal productivity, unlike standard models that assume diminishing returns. The key aspects of the model are: 1) Knowledge exhibits increasing returns in production but decreasing returns in creation; 2) Knowledge spillovers create externalities; 3) The model can generate unbounded long-run growth without exogenous technological change. The model aims to explain how long-run growth rates may increase over time and initial conditions can have permanent effects, challenging standard neoclassical assumptions.
This document discusses the concept of increasing returns and economic progress. It begins by noting that while economists have developed complex models to analyze industries with increasing returns, these models can obscure more general aspects of the phenomena. It argues that the growth of indirect or roundabout production methods, enabled by greater specialization and division of labor, is a key source of increasing returns. However, the extent of these returns depends on the size of the market, as larger markets allow for greater specialization and use of capital-intensive production methods. While rationalization may improve efficiency, the fundamental driver of economic progress is the expansion of markets that comes from overall economic growth and development.
La Unión Europea ha acordado un paquete de sanciones contra Rusia por su invasión de Ucrania. Las sanciones incluyen restricciones a las transacciones con bancos rusos clave y la prohibición de la venta de aviones y equipos a Rusia. Los líderes de la UE esperan que las sanciones aumenten la presión económica sobre Rusia y la disuadan de continuar su agresión contra Ucrania.
This document summarizes a paper by Richard R. Nelson and Sidney G. Winter titled "The Schumpeterian Tradeoff Revisited". It discusses Joseph Schumpeter's view that competition between firms involves research and development and innovation, and that technological progress provides greater long-term gains to society than competitive pricing. It also discusses the "Schumpeterian Hypothesis" that market power and large firms are necessary for rapid technological advancement, representing a tradeoff between static efficiency and dynamic innovation. The document outlines the authors' model of Schumpeterian competition and how it examines the relationship between technological change, market structure, and industry performance under different conditions.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help alleviate symptoms of mental illness and boost overall mental well-being.
This document is a response by Nicholas Kaldor to criticism from Professor Wright regarding Kaldor's previous work on economic methodology and models of business cycles. Kaldor argues that Wright misunderstood the purpose of analytical models, which is to isolate causal factors, not prove hypotheses as absolutely "true". Kaldor also defends using simplified assumptions and examples to illustrate essential features, noting more realistic assumptions were introduced later. While acknowledging room for improvement, Kaldor maintains Wright failed to demonstrate any logical flaws or inconsistencies in the work.
This document summarizes an article titled "Increasing Returns and Long-Run Growth" by Paul M. Romer. It proposes an alternative model of long-run economic growth where knowledge, rather than physical capital, is the main driver of growth. Knowledge exhibits increasing marginal returns in production but decreasing returns in research and development. This allows for perpetual economic growth without limits in a competitive market equilibrium framework. The model overturns conventional assumptions that growth rates decrease and countries converge over time by introducing externalities from new knowledge and increasing rather than diminishing returns to knowledge accumulation.
This document summarizes a paper about the relationship between capital accumulation, the rate of economic growth, and employment. It makes the following key points:
1) For a capitalist economy to maintain full employment, national income must grow at a rate that matches the combined rate of growth of the labor force and productivity.
2) Investment increases both productive capacity and generates income, so examining growth from the investment perspective may help determine the equilibrium growth rate needed.
3) If investment proceeds at rate I per year, and each $1 invested increases productive capacity by amount s, then new projects will increase potential output by Is annually. However, the overall economy's capacity may increase by less if new projects require transferring labor from
This document summarizes an academic paper that examines how increasing returns to scale in industry can allow for unlimited economic growth even with diminishing returns in agriculture. It presents a model of an economy with three sectors: agriculture, manufacturing, and investment goods. Agriculture has constant returns to scale while manufacturing and investment goods have increasing returns at the plant level. The model analyzes short, medium, and long run equilibriums under different assumptions about factor supplies and returns to scale. The key finding is that large enough increasing returns in investment goods can outweigh decreasing returns in agriculture, allowing overall growth without constraints from agricultural productivity.
This document summarizes a paper that aims to test the hypothesis that accurately measured real product and real factor input growth can fully explain observed total factor productivity growth. It defines key economic concepts like production functions, real product, real factor input, and total factor productivity. It also outlines the authors' methodology for developing a system of social accounts to more accurately measure real product and real factor input, thereby providing an empirical test of the hypothesis.
This document provides a critical analysis of Thirlwall's formal presentation of Kaldor's model of growth and development. It develops its own formal Kaldorian model with two sectors (agriculture and industry) and analyzes the underlying dynamics and equilibrium conditions. The key points made are:
1) Thirlwall's specification of the industrial sector assumes non-competitive pricing through markups, which is inconsistent with the rest of the model that assumes perfect competition.
2) The model assumes full capacity utilization in both sectors, which is also inconsistent with Kalecki's markup pricing theory that Thirlwall references.
3) The paper argues the model's dynamics and stability cannot be properly analyzed using
1. American Economic Association
The Origins of Uneven Development: The Indian Subcontinent
Author(s): Amitava Krishna Dutt
Source: The American Economic Review, Vol. 82, No. 2, Papers and Proceedings of the
Hundred and Fourth Annual Meeting of the American Economic Association (May, 1992), pp.
146-150
Published by: American Economic Association
Stable URL: http://www.jstor.org/stable/2117391
Accessed: 26/10/2010 16:50
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at
http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless
you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you
may use content in the JSTOR archive only for your personal, non-commercial use.
Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at
http://www.jstor.org/action/showPublisher?publisherCode=aea.
Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed
page of such transmission.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of
content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms
of scholarship. For more information about JSTOR, please contact support@jstor.org.
American Economic Association is collaborating with JSTOR to digitize, preserve and extend access to The
American Economic Review.
http://www.jstor.org
2. THEORIGINSOFUNEVENDEVELOPMENT:THERISEOF THE
WESTANDTHELAGOF THERESTt
The Originsof Uneven Development:The IndianSubcontinent
By AMITAVA KRISHNA DUTT*
In the 17th century, the Indian subconti-
nent (henceforth: India) was not signifi-
cantly less developed than Britain. But be-
tween 1757, when Britain began colonizing
India, and 1947, when India gained inde-
pendence (and British growth had already
slowed down), the ratio between British and
Indian per capita income increased at least
tenfold (Angus Maddison, 1971), and sev-
eral countries initially less developed than
India grew rapidly while India stagnated.
The obvious question is: what caused this
"uneven development"? The answer to this
question is important for understanding
both the roots of India's present economic
backwardness and the current division of
the world into rich and poor nations.
No clear answer to the question has
emerged, in part because of the paucity of
data, but also because of the heat and smoke
generated by the debates on the impact of
colonialism, which show no sign of abating
(see Neil Charlesworth, 1982). India's re-
lative stagnation is explained in the "nation-
alist" view by colonialism, and in the
"imperialist" view by the socioeconomic
structure established during the ancient
Hindu period.
This paper briefly discusses some issues
relevant for a reexamination of the origins
of uneven development in the Indian case,
confining attention to the Indian side and
using some recent developments in the the-
ory of North-South trade.
1. Theory
To explain the origins of uneven develop-
ment, it is useful to turn to a class of
North-South models which assume an ini-
tially identical structure for two regions and
examine how differences between them
come about. A model of this type (see Dutt
[1986],which drawson Paul Krugman[1981])
considers two regions that differ only in
their amounts of capital accumulated, each
producing two goods, an agricultural good
with only labor and a fixed labor:output
ratio and an industrial good with labor and
capital (which is the produced industrial
good) with fixed coefficients at a point in
time. Labor is perfectly mobile within each
country and is available in fixed supply in
each region. Both labor and capital are fully
employed, and a fixed fraction of profits in
the industrial sector is saved and invested in
the industrial sector, there being no interna-
tional capital flows. Consumption expendi-
ture is allocated in value terms between the
two goods in a fixed ratio. The productivity
of labor in industry in each region depends
positively on its stock of capital, with a
constant elasticity, and capital productivity
is assumed to be constant.
The model implies that if the two regions
do not trade with each other, they will end
up at a stationary state with identical stocks
of capital. If they engage in free trade, the
region that has even a slightly higher stock
of capital and exports industrial goods will
tDiscussant: Lance Davis, California Institute of
Technology.
*Department of Economics, University of Notre
Dame, Notre Dame, IN 46556. I am grateful to Ned
Lorenz for discussions and to Maria Rizo Lopez for
research assistance.
146
3. VOL. 82 NO. 2 THE ORIGINS OF UNEVEN DEVELOPMENT 147
cumulatively increase its capital. The other
region, even if it accumulates capital ini-
tially, will eventually undergo deindustrial-
ization. This model belongs to a general
class of models that stress the importance of
increasing returns and learning in manufac-
turing and demonstrate how small changes
in history can have large effects.
11.History
The model just described is obviously too
simple to provide definitive answers to the
question of the origins of uneven develop-
ment. India and Britain were parts of a
world economy, which violates the two-
region assumption of the model, and the
structures of the two economies when they
came into contact in the 18th century were
not identical, as assumed in the model.
However, since Britain was India's major
trading partner in the 19th century (K. N.
Chaudhuri, 1982) and since the perfect-sym-
metry assumption is not required for the
validity of the result on the implications of
the specialization, it is possible to explore
the consequences of taking the two regions
of the model to represent India and the rest
of the world dominated by Britain.
India's pattern of trade changed drasti-
cally after a few decades of colonial rule
(see Tapan Raychaudhuri, 1968; Chaudhuri,
1982). When the British began their colo-
nization, India was an exporter of industrial
goods and an importer of primaryand inter-
mediate goods. Before 1800, India was the
major supplier of cotton and silk textiles
(fine clothes as well as everyday wear for
the masses) in international markets, includ-
ing Europe; Indian textiles were consider-
ably cheaper than British woolens because
of India's lower wages and technical advan-
tages. In addition to these, which consti-
tuted the overwhelming bulk of Indian ex-
ports, India exported raw silk, sugar, and
saltpeter, which do not fit the description of
primary agricultural products; even indigo
involved some amount of processing. India's
main imports were foodstuffs such as coffee,
tea, sugar, and spices; luxury items such as
wine and horses; and a considerable amount
of precious metals (given India's chronic
merchandise export surplus). Except for an
insignificant amount of luxury goods and,
occasionally, cannon, no manufactured
metal products were imported before the
19th century. After the first few decades of
the 19th century, India became primarilyan
exporter of agricultural products, including
raw cotton and jute, tea and coffee, opium,
indigo, oil-seeds, and foodgrains, and an im-
porter of manufactures such as cotton yarns
and cloth, metals, and machinery. The case
of textiles is most striking: Bengal handi-
craft manufactures, so dominant in the
1770's that an European observer wrote that
the incomparable quality of the product
guaranteed that their demand would never
falter due to competition, were almost com-
pletely eliminated from international mar-
kets by the first three decades of the 19th
century. Between 1814 and 1835, exports of
cotton goods from India to England fell
from 1,266,608 pieces to 306,086, while im-
ports rose from 818,208 yards to 51,777,277;
a similar fate befell Indian exports to other
markets (Romesh C. Dutt, 1903). By the
turn of the century imported piece goods
supplied about 60 percent of Indian cloth
consumption, a proportion which was prob-
ably higher earlier in the century (Maddi-
son, 1971).
An examination of some features of for-
eign rule provides some plausible explana-
tions for this shift in India's pattern of
specialization, which has been carefully doc-
umented by nationalist historians (Dutt,
1901, 1903; B. D. Basu, 1935; see also Bipan
Chandra, 1966). First, Indian handicraft in-
dustries were adversely affected by the de-
cline of Indian royal courts, which had been
important buyers of quality products and
promoters of factories that made to their
order. Second, the same industries were dis-
located as a result of the exploitation by the
English East India Company after it gained
important trading privileges in Bengal, as its
traders imposed arbitrary prices and other
conditions and subjected the artisans to
flogging, imprisonment, and worse (cutting
off the thumbs of winders of raw silk has
been documented). Third, while internal
4. 148 AEA PAPERSAND PROCEEDINGS AMAY1992
tariffs and transit duties restricted trade in
Indian goods, British goods were granted
exemptions. Fourth, while import duties
were imposed in Britain on imports of In-
dian manufactures (in 1812, calicoes were
taxed at about 72 percent, and import taxes
on other goods ranged from 100 percent to
600 percent), British goods were allowed
into India duty-free or at low duties of 2.5
percent.
These features, by worsening the compet-
itive position of Indian handicrafts even
slightly, could have led to the cumulative
process of uneven development and struc-
tural change analyzed by the model, and as
indeed hinted by early nationalist writers
like Mahadev Ranade and G. V. Joshi (see
Chandra, 1966).
Another relevant consequence of British
rule is the so-called "drain" of wealth from
India to Britain, initially as a result of direct
plunder and looting, and later through the
payment from Indian revenues of adminis-
trative charges incurred in India and else-
where in the empire, interest payment on
debt, and remittance on retained profits.
Various inconsistencies of the early presen-
tation of this theory by Dadabhai Naoroji
have been pointed out, and it has been
argued that, if one takes into account the
fact that India received a great deal in re-
turn for the outflow of capital (railway con-
struction, far instance), the drain becomes a
negligible proportion of Indian income (see
Charlesworth, 1982). My model, however,
implies that a relatively small drain of capi-
tal during the early stages of interaction
between the two regions can explain the
shift in the pattern of specialization, and if
the model is expanded to allow for unre-
quited capital flows through time, this drain
exacerbates the tendency toward uneven
development due to deindustrialization (a
connection that was noted by Naoroji and
others). It is relevant to note here, first, that
the extent of the drain during the early
period of foreign rule is less controversial
than that of the later period and, second,
that the development of railways had the
effect of reducing the effective protection of
Indian industries after uneven development
was already under way, therefore exacerbat-
ing it.
III. Further Comments
I conclude with three comments address-
ing some possible objections to my analysis.
First, the analysis may appear to be contra-
dicted by claims made by "imperialist"writ-
ers and their modern counterparts that
British rule had some favorable effects on
the rate of Indian economic growth through
the establishment of law and order, the
development of railways, and the spread of
commercialization in agriculture. Moreover,
theory and empirical evidence is marshaled
to argue that India experienced no absolute
decline in industrial employment. However,
the present interpretation of the model is
quite consistent with temporary increases in
per capita output and modest increases in
the industrial labor force (if it is extended
to allow for population growth). My model
predicts that, other things constant, there
would eventually be a stagnation in per
capita income growth and a decline in the
share of the population dependent on in-
dustry (that this may have been slight can
be explained by the relative self-sufficiency,
due to inadequate transportation, of many
village communities), and available evidence
seems to corroborate these tendencies.
Second, it must be conceded that the
kinds of events described above may not
have been responsible for the reversal in
India's pattern of specialization, even in
terms of the model. It has been claimed,
instead, that technological change in British
industry was responsible for the shift and
that this was independent of British rule in
India. To buttress this argument, it is also
suggested that the reduction in import du-
ties in Britain on Indian goods in the 1820's
and 1830's did not revive Indian cotton-good
exports to Britain. However, against this it
can be argued that, had India been politi-
cally autonomous, she could have provided
tariffs and other forms of support to her
industries. Moreover, even in 1813, witness
after witness in the Select Committee of the
House of Lords testified that free Indian
5. VOL. 82 NO. 2 THE ORIGINS OF UNEVEN DEVELOPMENT 149
textile imports (of both finer and coarser
varieties) would damage British industry
(Basu, 1935), and Horace H. Wilson (1845
pp. 538-9), based on this testimony, calcu-
lated that cotton and silk goods manufac-
tured in India could be sold for a profit in
Britain at a price 50-60 percent lower than
those manufactured in Britain. It may be
speculated that the subsequent sharp fall
(almost 60 percent between 1819-1821 and
1829-1831 for cotton piece goods) in British
costs was due to learning which resjilted
from the expansion of British exports to
colonies such as India, and only after this
occurred could tariffs be reduced without
jeopardizing British industry.
Finally, it may be argued that the model
takes an overly mechanical view of technical
change and industrial growth: that it fails to
distinguish between the handicraft industry
of India and factory industryof Britain (with
only the latter having a potential for scale
economies and technical change) and that it
fails to take into account the potential for
industrial growth in an economy that is ini-
tially an exporter of primary products.
Against the former claim it must be argued
that conventional wisdom seems to over-
stress the distinction between factory and
craft production and the technological ad-
vantages of the former (see Charles Sabel
and Jonathan Zeitlin, 1985): in Europe and
the United States, craft production had all
the technological dynamismof mass produc-
tion. The role of small-scale handicrafts in
the industrialization process in Meiji Japan
is also well known. There is also evidence
that the Indian cotton industry was flexible
in expanding its production and adjusting its
product to European tastes and in adopting
foreign methods (the shipbuilding industry
also showed a capacity for imitative innova-
tion); and the fact that it remained highly
labor-intensive and did not mechanize can
be explained in terms of low wages, expand-
ing markets, and the absence of competition
(Raychaudhuri, 1982). This is not to argue
that Indian craft industry was as sophisti-
cated as the western cases of flexible spe-
cialization or that India was on the brink of
an industrial revolution before the British
invasion. What is being argued, however, is
that, especially by hitting hardest the finer
end of the textile industry, deindustrializa-
tion considerably reduced the chances that
the Indian economy could experience indus-
trial development based on its handicraft
industry (perhaps by drawing skilled labor
and entrepreneurship from it, or through
technical change in the craft shops them-
selves). On the latter point, it must be con-
ceded that the model overstresses the
knife-edgedness of the uneven development
process, ignoring various channels by which
latecomers can industrialize. However, as is
well documented (see Dutt, 1901, 1903;
Basu, 1935), India's foreign government, by
obstructing Indian industrialization, or at
least failing to support it systematically (as
admitted even by modern critics of early
nationalist views), arguably blocked these
channels.
REFERENCES
Basu,B. D., Ruin of Indian Tradeand Indus-
tries, 3rd Ed., Calcutta: R. Chatterjee,
1935.
Chandra,Bipan,TheRise and Growthof Eco-
nomic Nationalism in India, New Delhi:
People's Publishing House, 1966.
Charlesworth,Neil, British Rule and the In-
dian Economy, 1800-1914, London:
Macmillan, 1982.
Chaudhuri,K. N., "Foreign Trade and the
Balance of Payments (1757-1947)," in D.
Kumar, ed., The Cambridge Economic
History of India, Vol. 2, Cambridge:Cam-
bridge University Press, 1982, pp. 804-77.
Dutt,AmitavaK., "Vertical Trading and Un-
even Development," Journal of Develop-
ment Economics, March 1986, 20, 339-59.
Dutt, Romesh C., The Economic History of
India, Vols. I and II, London: Routledge
& Kegan Paul, 1901, 1903.
Krugman,Paul, "Trade, Accumulation, and
Uneven Development," Journal of Devel-
opmentEconomics, April 1981, 8, 149-61.
Maddison,Angus, Class Structure and Eco-
nomic Growth, New York: Norton, 1971.
Raychaudhuri,Tapan, "A Re-interpretation
6. 150 AEA PAPERSAND PROCEEDINGS MAY1992
of Nineteenth Century Indian Economic
History?" Indian Economic and Social
HistoryReview, March 1968, 5, 77-100.
,"Non-Agricultural Production-
Moghul India," in T. Raychaudhuri and
I. Habib, eds., The CambridgeEconomic
Historyof India, Vol. 1, Cambridge:Cam-
bridge University Press, 1982,pp. 261-307.
Sabel, Charles and Zeitlin, Jonathan, "Histori-
cal Alternatives to Mass Production: Poli-
tics, Markets and Technology in Nine-
teenth-Century Industrialization," Past
and Present, August 1985, 108, 133-76.
Wilson, HoraceH., History of British India.
From 1805 to 1835, Vol. I, London: James
Madden, 1845.