There is a story that is commonly told in Britain that the colonisation of India – as horrible as it may have been – was not of any major economic benefit to Britain itself. If anything, the administration of India was a cost to Britain. So the fact that the empire was sustained for so long – the story goes – was a gesture of Britain’s benevolence.
New research by the renowned economist Utsa Patnaik – just published by Columbia University Press – deals a crushing blow to this narrative. Drawing on nearly two centuries of detailed data on tax and trade, Patnaik calculated that Britain drained a total of nearly $45 trillion from India during the period 1765 to 1938.
It’s a staggering sum. For perspective, $45 trillion is 17 times more than the total annual gross domestic product of the United Kingdom today.
How did this come about?
It happened through the trade system. Prior to the colonial period, Britain bought goods like textiles and rice from Indian producers and paid for them in the normal way – mostly with silver – as they did with any other country. But something changed in 1765, shortly after the East India Company took control of the subcontinent and established a monopoly over Indian trade.
Here’s how it worked. The East India Company began collecting taxes in India, and then cleverly used a portion of those revenues (about a third) to fund the purchase of Indian goods for British use. In other words, instead of paying for Indian goods out of their own pocket, British traders acquired them for free, “buying” from peasants and weavers using money that had just been taken from them.
It was a scam – theft on a grand scale. Yet most Indians were unaware of what was going on because the agent who collected the taxes was not the same as the one who showed up to buy their goods. Had it been the same person, they surely would have smelled a rat.
Some of the stolen goods were consumed in Britain, and the rest were re-exported elsewhere. The re-export system allowed Britain to finance a flow of imports from Europe,
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This comment was chosen by moderator HS from the post “The case of MH17 and the imitation of a Maidan in Georgia: the provocations of globalists″. The moderator felt the comment was an excellent summary of the MH17 shoot down. With the five year anniversary coming up, the comment helps to counter all the lies that are pushed in the MSM media.
Comment by Terry
That pretty much tells us who really shot it down, doesn’t it? But, lets look at a few of the actual facts that are not in dispute.
First off, context. Five months earlier a US orchestrated and backed coup led by fascist militias had violently overthrown the legally elected government of Ukraine and replaced it with a government of the far right which among other things, had passed a law banning the Russian language spoken by most people in eastern and southern Ukraine. A hastily called fake “election” in which the two parties which had won 60 percent of the vote in the overthrown parliament were not allowed on the ballot had “elected” Poroshenko as “President”, and he had promptly launched an assault on the local governments in eastern Ukraine. The local people in Donetsk and Luhansk provinces had formed self-defence militias to protect their mayors and local governments from arrest and/or murder by fascist militias from western Ukraine. The local government in Crimea held a referendum to leave Ukraine and rejoin Russia, which passed by over 96 percent. In April around 100 people protesting the coup in Odessa were burned alive and/or shot in a massacre led by fascist militias thugs. In May, protected by hastily formed local militias, the provinces of Donetsk and Luhansk held similar referendums to secede from Ukraine which also passed by over 90 percent.
The United States CIA took over the top two floors of the Ukrainian SBU Intelligence agency and assumed control of the SBU and the developing civil war. Near the end of June CIA Director John Brennan made a secret visit to Ukraine over a weekend.
At the end of June, Poroshenko announced an all-out WWII style assault on Donetsk and Luhansk provinces with tanks, heavy assault rockets, artillery, mobile guns, helicopters, and SU-25 ground assault aircraft. By mid July this assault was in full swing and Donetsk and Luhansk were being bombed and shelled daily by the Ukrainian Air Force.
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