Coming from India and lived there for 30 years of my life, many of my friends talk about the problems India has and how we can solve it. India has solved many problems; like polio, mid-day meals, industrialisation, etc; but when it comes to becoming a complete developed economy, I tell my friends that is many decades in future or may be even centuries before India can become a developed country.
I can only take examples from history.
Development of Europe
The above 3 are big examples how the imperialists sucked up all the resources across the planet to grow at a pace faster than the rest of the world and become developed. I don't think this imbalance can ever happen again.
Development of USA
I think USA will always have an upper hand in the world economy for next 200 years, as competition and attitude in that country propels it towards growth and development.
Development of Arab Countries
Development of China
India might never become a develop country unless it creates an economic imbalance. The question now remains, where is India's opportunity to create that imbalance?
I can only take examples from history.
Development of Europe
- Industrialisation - during the mid-1800s there was rapid growth of the Industry in Britain, France, Germany and Italy. These countries became the pioneers of producing whatever humans needed through machines. Machines produced and transported good from A to B and in quick time. This gave the European Manufacturers an edge over rest of the world and once you have an edge over rest of the world its difficult to catch-up.
- Colonialism & imperialism - Industrialisation also pushed these countries to do business with countries outside of Europe. French went to Europe and British went to the Indian subcontinent. The farmers were forced to produce what the companies wanted. The raw material was sent to the home nations and then the finished goods were sent all across the globe. The natural resources of Africa was transported to Europe where the factories produced goods, that was transported across the globe.
- Slave Trade - Humans were used as machines to work in fields across the globe by these colonial nations. Slaves were used as we use cattle in the fields without any pay and this helped the companies from the imperial nations grow at a tremendous pay without worrying about salaries.
The above 3 are big examples how the imperialists sucked up all the resources across the planet to grow at a pace faster than the rest of the world and become developed. I don't think this imbalance can ever happen again.
Development of USA
- Slave Trade - Humans, especially from Africa were transported in ships to USA and they were used as machines to work in fields across southern USA. This was quite similar to what was happening in Europe, but this time the colonies were not being built but human were bought from African merchants to be turned into cattle to work in fields of USA.
- Abundance of Gold & Oil - Free labour and natural resources propelled USA to a next level of growth. This also created a new concept of capitalism which USA currently works on.
I think USA will always have an upper hand in the world economy for next 200 years, as competition and attitude in that country propels it towards growth and development.
Development of Arab Countries
- Oil - When oil was found around the Persian gulf in 1970s, wealth lying under the sand was found and propelled Arab nations towards progress never before known off. If you go to places like Dubai, Abu Dhabi, Riyad, Doha; the amount of wealth gathered in these cities is imminence and can only be matched by the wealth in the west.
- Migrant labour - Just like to slaves worked in the fields of masters from Europe and USA, the labour force in this case came from the Indian sub-continent. The people from India, Nepal, Pakistan work in building these cities and people from the far-East work in the houses of the masters as nannies.
Development of China
- Manufacture everything in China - China currently manufactures everything and has created a huge devide in what was previously manufactured in West. Chinese companies flood the Western world with their steel, toys, shoes, clothes and the cost of these goods is so low that the companies can't compete and are kicked out of competition. We can now see that manufacturing has almost died here.
- Cheap Labour - Like the slave trade in Europe, USA & Arab world; Chinese needed the low cost slaves to create the goods at a very low price. They found this with their very high population and state controlled labour laws. The rise of Chinese GDP/ capita has been phenomenal in last 20 years. From $828 in 1998 to $8123 in 2017. Its nearly a 10 fold increase, never ever have the Chinese seen so much growth since their independence.
India might never become a develop country unless it creates an economic imbalance. The question now remains, where is India's opportunity to create that imbalance?
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