Portrait of India
India's Liberalization - A Boon or Curse
Part-1
East India Company's (EICs) Noble Motives and Glorified Commodities
In the year 1600 East India Company was formed and given exclusive right to trade with India and south east Asia by British Monarchy under the concept of Free Trade and Globalization. It was also given the right to civilize India. In the year 1965 club of Rome (top industrial houses-real owners of EICs or MNCs) divided the world in 10 economic segments and gave unbridled authority to ruthlessly exploit Segment 9 (India belongs to this segment 9) a group of mineral (diamond, gold, uranium, life saving medicinal plants, organic food and drinking water) oil natural gas rich south east Asian nations consisting one third of population of world- under liberalization (liberalize domestic economy to globalize its owners) and privatization (privatize so that Free Trade can further control domestic economy via global owners) to a group of MNCs. This article examines the group of MNCs involved, and tries to trace back the current ownership of these MNCs to the same owners, controllers of East India Companies 400 years earlier. Also we wish to present that the ideologies of trade are same as far as EICs or MNCs are concerned, what changed was just a flip of words. It is the same grand children of the original owners of East India Company which subjugated us ruthlessly, exploited miserably, slaughtered close to millions of innocents for sheer economic gain and to dislodge whom India took almost 100 years of intense struggle. We never recovered from the economic, social land geographical loss of that oppressive British EIC rule. It is the reemergence of this colonial monster EICs as MNCs in the modern time again to help modernize and civilize India may lead to another round of 400 year spiritual disaster-the only strength that we retained from being commercialized, if we do not watch the real intentions and motivations of these EICs turned MNCs and their Indian collaborators-domestic Indian Partners.
Introduction
East India Companies (EICs)
What we Know
East India Company, a group of British Merchants joined together and formed a company and British Dutch French Belgium Kings Gave unbridled charter rights to Trade over vast India China, Far East Asia and Africa. This company had 40 owners. They elected a governor, a deputy governor and a board consisting of 24 directors. The same structure identically followed when Bank of England was Chartered. Who are these 40 share holders/owners of this company. Also East India Company is not one but 4 companies chartered in 4 different countries and all are owned by the same owners ruled by same governor, deputy governor and elected directors. They are British East India Company, French East India Company, Belgium East India Company and Dutch East India Company. We also know that in 1858 one of these four, British East India Company was relieved from managing India and India became part of British Empire. While other East India companies functioned until late 20th Century.
This series is written in Four Parts. Part -1 examines the Origin of these EICs, their motives and the motives of MNCs along with the commodities EICs dealt with and MNCs going to deal with or dealing with. This East India Company’s commodities of trade were praised by both Adam Smith-Father of Modern Economics- and Karl Marx-Father of Democratic Socialism or Communism-as necessary for civilizing mankind and making it noble. The Part-2 examines the elusive owners of these MNCs and trace back their roots to East India Company. But in reality East India Companies-British East India Company, French East India Company and Dutch East India Company-in their noble cause of civilizing mankind looted close to $ 1.6 trillion worth of wealth from the countries they traded with. Ruthlessly exploited more than dozen countries by selling their subjects as slaves. Killed more than 100 million people in order to maximize their profit and minimize their cost, encouraged wholesale addiction of opium among 30 million people, created more than 30 famines all across the nations. These gigantic behemoth East India Companies were the true Multinationals of their time. They disappeared from the face of earth-we should believe so-and reappeared as Multi National Corporations controlled by the same owners their heirs successors. This part examines the origin of these industrial houses that owned EICs and the other industrial houses that were involved with these East India Companies. In the Part-3 we examine why the above facts never come to light. This section examines the media (print, electronic-television, movies) control exercised by the same EICs in those days and MNCs today. In Part-4 we see the behemoth MNCs economic, media power in action-Liberalization and Privatization. How these two noble concepts since 1935-1995 bankrupted 20 countries in South America, Russia, robbed them from their trillions of dollars mineral, oil and natural gas wealth and plunged these countries in perpetual debt, governments in total chaos, leadership in perennial disarray, people in damning despotism, all the while killing millions in unwanted unnecessary conflicts just to sell their arms to fight and medicines to cure injuries. Then we depict the Indian scenario, and advise the reader to draw his own conclusion as to the progress of (thrusting through neck of Indians by manipulating state central governments) Liberalization and Privatization in India in the above light-as EICs projected that Free Trade will help Indians-, and to reexamine the need to change our course of action surely to save millions of Indians from sure path of destruction.
The Beginning
The East India Company (the "Company") was one of the institutions created as a product of the Venetian Merchants takeover of England’s commerce. In England it was called British East India Company. The Levant Company, set up to trade with the East, had been formed in 1592 as a fusion of the Turkey Company (with predominant partnership by house of Sassoon, fathers- in-law of Rothschild) and the Venice Company (probably the House of Rothschild). In 1600. The East India Company was formed as a spin-off (subsidiary of) of the Levant Company. It received a perpetual charter from the British Monarchy for a monopoly on trade with the East Indies. This east india company had many partners under various names belonging to various nations, Dutch, British, Belgium and French East India Companies and Dutch, British and French East African Companies and received same perpetual charters from all these countries.
Most importantly The Levant Company or Turkey Company or The Venice Company and East India Companies are all partnerships. Meaning they need not declare their profits, nor assets nor the partner names or addresses. An appointed representative of the company will file returns and act as liaison of the principal owners. Worst with East India Company was, it was a subsidiary of The Levant Company. As we see with many Multi National Companies (MNCs) that are forming partnership in India are also Subsidiaries of some other holding companies, and these holding companies in turn are subsidiaries of another set of numbered companies and these numbered companies in turn are held in trusts and these trusts are held in partnership, and the partnership address is a P.O. Box number some where in Central London or in New York. We see only the officers and lawyers of these MNCs not the real owners. It is the identification of the ownership of these MNCs and EICs will solve the puzzle of disappeared EICs, a puzzle probably except Japan none in Asia ever understood, Indians never thought of it so never worried about it and do not care about it.
Who are these 40 persons who owned this company? Why did British government pledged its soldiers for this company for next 400 years conquering every land this company touched? Where did the money they made in the company go? To British government or to the owners? How much money they made? What are the commodities these traders traded? Why after 275 years after its inception when this British East India Company was dissolved, all properties were absorbed by Lloyds-a behemoth of Shipping Insurance under writing and investment Bank- which is a subsidiary of N.M. Rothschild & Co. Though after Mrs. Victoria proclaimed India as part of British Empire why the Indian affairs were run by Privy Council, and Chancellor Exchequer of British Treasury who happened to be all the time the Chairman of Bank of England, another Family bank of House of Rothschild. And finally why Sir Stafford Cripps, another Chancellor Exchequer and Bank of England Chairman, and a representative of EICs in 1946 decides that India has to be given independence because one of the reasons put forwarded by him for the cause of independence was "the revenue from India was not enough to cover the expenses of running India." This gave plenipotentiary powers to Mr. Mountbatten to decide on the spot with out any consultation with British parliament, the fate of India.
The same Cripps never recommended independence to South Africa till 1970s as there are still diamonds and gold to extract from S. African mines and finally the need for giving independence was realized when the "revenue from S. Africa was less than expenditures." For the great job of brutal oppression in S. Africa the last white president of S. Africa Mr. Pik Botha was given a general amnesty. But to believe, assume, think, analyze, ponder and understand that the heirs of these EICs of Mr. Cripps and others who run these immense MNCs suddenly in 1997 realized that "let us go and spend billions of dollars in India, civilize it, modernize it for the benefit of billion Indians whose culture is very old and whose food (spicy) every body likes" just shows the wild fantasies of Bollywood, Tollywood, Mollywood cultures that imbibed in our mental thinking process. Neither their grand fathers came with a charity motto nor these MNCs came with a real intention of developing India. It is obvious that, with the given most latest technology in underground mineral discoveries, the heirs of EICs and current owners of MNCs have definite information about definite material or human resources which should be worth trillions of dollars that Mr.Cripps did not had a chance to have in 1946. If Mr. Cripps had such information then EICs/British Raj would have continued till the last worthy piece is extracted and would have saved lot of time for grand sons/heirs to form MNCs and come with novel idea of liberalization and privatization. To believe that ruthless business men for 400 years who toppled kingdoms, redrawn geographies, killed more than 200 million people in umpteen wars in last 100 years, suddenly transformed in to mendicants because they love India is also great wishful thinking of Hollywood style.
We have to find first, if possible from our central and state governments as to whether they knew what these huge EICs/MNCs found in terms of material and human resources. If our governments (local, state, central) did not know what is there in India, then probably it is better, as liberalization privatization advocates plead, to let these MNCs do their modern EIC job perfectly, as it assures "civilizing and modernizing India." If our governments did not know then it is the job of every responsible citizen to know as like Dr. Ambedkar said we have to educate first and become informed citizens then only we can defend our country or republic or sovereignty. It took 100 years to get rid of EICs but it will take less than 20 years to get the MNCs in if we are not vigilant, as "Eternal Vigilance is the pride of Liberty" as this liberty we earned for the Republic of India was on the sacrifices of many millions of souls who opposed the oppression, economic exploitation, moral ethical bankruptcy of colonizers, highly racist hate based intolerance of the white British Merchants and Rulers. By reversing this independence swaraj in 50 years, which was achieved by Mahatma’s Swadeshi Satyagraha, or Tilak’s heroic struggle for birth right to be free and self governed, or of Bose’s gallant battle to dislodge British to have a united India, shows callous attitudes of subjects and rulers and blatant refusal to understand the historical facts and truths that will haunt not only us but our coming generations. Satyameva Jayate should not only be on the logo of constitution or confined to Mahatma’s biographies, it has to transform our lives as this satya or truth alone is worth defending and beholding as it is "dharma-truth in action in real life".
Objectives of EICs and MNCs
Names EICs 1600 - 1900 MNCs 1995 - Current 1985 - 1995 1935 - 1985 Concentration Whole World India Russia S.America (20 Countries) Objectives 1.FreeTrade 2.Globalization
1.Privatization 2.Liberalization 1 Peristroika 2.Glasmonausdt 1 Privatize 2.Liberalize The main objective of the EICs were two fold. 1. Globalization of Trade. Excessive production of commodities within the European Nations needed a continuous markets for them to sell. Europe with its limited population cannot absorb this onslaught of commodities which are mostly of durable in nature like clothes. So they needed new consumers for their commodities which was provided by the Asian Markets who accounted more than 1 billion (China and India alone) during that time around 1800.
Free Trade. They wanted unrestricted authority to trade (sell or buy) the goods they manufactured or desired from all colonies. Who ever opposed their view were occupied conquered destroyed. For this free trade to flourish first nobody should manufacture the commodities that Europeans manufactured as then the competition will exist. So first they destroyed the domestic production of the goods that Europeans manufactured. In India for example British destroyed the cloth manufacturers to sell their cloth. But there are many European kingdoms who are at the same wanted the same markets to sell their goods. These kingdoms formed in to three camps. Spain Portugal Italy fall in one camp led by Italy (European Catholics). Germany, Hungary and Austria in other camp led by Germany (European Protestants). Britain, France, Holland and Belgium in another camp EICs led by British (Anglo Venetian Merchants later called Anglo Dutch Aristocratic Elite or ADAE).
They nobly and benevolently divided the world in 1875 under concert of Nations (fore runner of League of nations and United Nations) in to colonies and each traded with a group of colonies. If these colonies were not producing enough for each of these groups then they fought with each other to get the markets and resources. At the beginning of 20th century Japan and USA joined the ADAE lobby. By mid of 20th century Japan broke of with ADAE and joined the German lobby. Same way Russia first joined German lobby then came to ADAE lobby. Since 1995 Russia with its Balkan republics is on its own lobby. Since 1975 Japan has its own lobby internationally. When all these groups engaged in mutual fighting then it became World Wars. When individual members are fought over few colonies then depending on who controlled media these wars are called "saving Civilization" to "saving mankind" to "protecting Freedom" to "protecting democracies" or "pirate wars", to "aggression" to "robbery" to "destruction of civilization."
In the 20th century when almost all EICs colonies became independent countries and got rid of all European colonialists. The above groups lost most valuable markets. Most of these colonies became either Socialist Nations, Communist nations, or Monarchies. They wanted to do their own things, produce their own commodities and live their own lives. But then what happens to the European nations who now produce more weapons, clothes, electronic equipment, and possess vast oil reserves. Who will buy all these. How to make these colonies buy the stuff they make. First is blocking the technology of production. With out technology no one can produce anything.
The second step re own these colonies once again not physically or politically but economically. So in 20th century EICs all are scrapped and they were given rebirth as MNCs. These MNCs have mostly belong to all the above group of nations and want like EICs uninterrupted trading rights to sell their products, exploit resources and manufacture goods including food and water in all these former colonies. But these colonies are now ruled by different forms of political governments. But MNCs need only economic resources to manufacture and human resources (people) to sell. Thus for all socialist and communist forms of governments a new concept of Liberalization and Privatization was evolved. For Monarchies and Dictatorial forms of government the concept of "freedom" and "democracy" was coined. (see this current war with Iraq is for Freedom and Democracy of Iraqi people).
The concept of preaching these socialist communist nations to privatize and liberalize can be defined as Privatization. Asking the governments not to control resource bases of their own countries, encourage native governments to sell government industries to private people. Then the private people in the small countries may not be that rich to buy these huge corporations which run in to billions of dollars. Then come the Liberalization. The above group of nations that used to trade under various EICs will come to these colonies as MNCs and invest there via domestic partners to buy privatized public industry and thus develop these countries to become modern and civilized. MNCs want no government or people control on resource utilization or commodity selling. MNCs want to decide as what people should consume (perishable non perishable goods), what people should enjoy (music, cinema and Television), and how people should live (where to live and how to travel travel-whether to use diesel or natural gas for their cars etc) what people should know (what to read, learn, analyze and how to teach). MNCs just want the local national governments to protect their economic interests in all the above fields.
Same thing happened with EICs. They allowed local national governments like monarchs etc to rule as long as they allow them to do what ever they wanted to do. Once local, national leaders say no to EICs they occupied them and ruled directly. MNCs, as they control what people should know (media) will immediately launch a media attack to mould public opinion on any local, national government that goes against their interests as regressive, racist, rightwing and will replace them with another government of their choice if these governments are democratic in form. These governments (state and central), after MNCs enter do not control anything within their countries including their own operating budgets except their political right to rule. Even to fight a political battle and enforce their rule these parties need vast amounts of money that is liberally provided by private corporate funding channeled via MNCs donations anyway. Once MNCs fully take over any nation nations and leaders are as helpless as kings and princes under EICs.
In those days when EICs bought their noble commodities to China under Free Trade and Globalization, and wanted unrestricted authority to sell the commodities Chinese emperor said they do not need these commodities as these commodities do not advance human civilization and values. EICs were enraged. All the above groups declared war on China stating that they have to civilize the Chinese people. England, Germany, France, Hungary, Russia, United States of America, Spain, Portugal Italy all at once engaged China and divided the country for next 25 years to sell their valuable products they thought will advance Chinese civilization. This war occurred in the year 1900 and is called Boxer War. Europeans won and what they did after that is history. Chinese said it is aggression. Europeans said it is for the Freedom and Democracy of China and to modernize them from oppressive rule. See the same statements with Iraq. Now these MNCs in India also want to sell noble commodities, ideas and concepts to back ward, retrograde Indians so that we can further civilize ourselves. These commodities apart from cars, computers, motorcycles, cell phones and roads are western Television with western values-immoral unethical family and social values driven solely by greed, break up of family, disrespect of one’s own culture, open attacks on ethical moral values in the society, personal aggrandizement, discarding spiritual values all in the name of progress. Anticipating resistance there are hundreds of groups conducting thousands of seminars, meetings, sessions to convince poor Indians to accept this mode of MNCs progress- liberalization and privatization- is the best for the nation and its thousands of years old culture. Everything is ok as long as we have cell phones, diesel cars, and western medicine to treat diseases. If we oppose all these countries will attack or not attack us depending on the military strength of a given nation. The y can simply stop MNCs aid that is needed for the economy to survive, and they demand the payments on the loans MNCs governments liberally advanced to us when we got independence and were rebuilding our nation in formative stages.
Let us study the commodities of EICs first, during the first wave of Civilizing China and India.
Commodities of EICs
EICs bought tea, spices from South East Asia. But what did they sell. What ever they sold gave them incredible profits and with this they maintained huge private army, traveled thousands of miles to do business conquering all nations in South East Asia. We know that they sold cotton and clothes to India. The other magical commodity which they sold is to Chinese was grown in India, after EICs forced poor Indian farmers at point to abandon all other agricultural production, the name of which if Indians hear probably they first laugh and then faint, it is the most addictive drug Opium.
Using Jesuit priests, who were in China since 13th Century to accelerate conversions, as their point men between Manchu Rulers of China and Mogul Empire in India, first Portuguese Jesuit priests and then British and latter Dutch merchants (under Dutch East India Company, a sister concern of British East India company) took over centuries old opium trading routs including cultivation of opium in Portuguese controlled Macao island. Latter Dutch negotiated monopoly over opium production and trade and was granted in 1659 by the then Indian Mogul Emperor. 1715 the East India Company started trading posts in Canton region (Hong Kong and vicinity) and started trading in Opium. But the actual beginning of this opium trade came from Portuguese Jesuit mission that was established in 1601 in Peking, which held the key to the Far East trade. In 1740, the Company's role in India was limited to trade through its centers at Bombay, Calcutta and Madras. By 1815, it had an army of 150,000 men, and governed most of India, either directly or indirectly. The Company utilized the vast superiority of European weapons to take over India in stages, through a series of wars. Its takeover was assisted by the collapse of power of the Indian Mogul Emperors, which left India broken up into sections, controlled by local rulers.
Bengal was the first ma jor area conquered by the Company. Its army defeated the native ruler in 1757 (Plasey War I), and proclaimed itself the official ruler of Bengal in 1765. It imposed incredibly harsh taxes. The province deteriorated rapidly. In 1770, the failure of monsoon rains, led to a famine in which an estimated one-third of the population of Bengal perished. With the dried lands, dead farmers, the stage is set for the large scale production of opium and Bengal then became the center of the East India Company's opium monopoly. However, giving the lie to the radical "privatizers," the ultimate muscle behind the company was the British military, as Lord Palmerston (Prime Minister of Britain 1830-1865) demonstrated by deploying it in the Opium Wars, to back up the British demand for "free trade."
Using this private army East India Company slowly but steadily started commercially cultivating large-scale production of opium in India, under the then Mogul Empire by the end of 16 the century. Under the land tax deals with mogul kings, for paying taxes, Dutch and British forced Indian farmers to cultivate opium. Bengal, Bihar, Orissa, and up to Varanasi became centers of this opium farming. Opium became number 2 commodity in exports in volume, next to spices. East India companies were shipping 100 tons of opium per year during that time to Indonesia. The Dutch found in Dutch East Indies (current Indonesia) " opium a useful means for breaking the moral resistance of Indonesians who opposed the introduction of semi servile but increasingly profitable rubber plantation system. They deliberately spread the drug habits form ports, where Arab traders used opium, to countryside."
In the aftermath of the disastrous Bengal famine, the British Crown took control over the East India Company's operations, and, under the India Act of William Pitt the Younger, in 1785, the Governor-General of India was made a Crown appointment1. A six-member ``Board of Control'' was established in London to "superintend, direct and control" the Company's possessions. On the Board were the British Chancellor of the Exchequer (also happened to be Bank of England’s Chairman), and a Secretary of State, both ministers of the British Crown. From this period, the "free-trade of East India Company was", effectively, a semi-official branch of the British government, until it was finally formally dissolved in 1858. Prior to the takeover of India by the East India Company, the Indian economy was characterized by the existence of native manufacture of cloth and other goods, which made possible a division of labor, and a higher level of productivity for the economy as a whole. British Empire's system of "globalization" had devastating effects on India. The British demanded one-half of the gross products of the land, as tribute from the areas that they controlled, and imposed a tax collection system, which severely disrupted the economy. Even more deadly, the British imposed a policy of technological apartheid, banning the export of machinery, from England to India, and refusing to develop India's rich iron and coal deposits. Taxes were imposed. To deliberately suppress native manufacturing. The introduction of steam driven machinery, was used by the British to devastate India's native cloth manufacturers. The British applied it to their slave labor system, filling the factories, farms with workers, including children, who worked 15 to 17 hours a day.
Free Trade Destroys Indian Cloth Manufacturing
British "free trade" removed tariffs on cloth imported into India, within twenty years, Indian cloth manufacturing was completely wiped out. The result was not merely mass unemployment and starvation of cloth manufacturers, but the impoverishment of cotton cultivators, since cotton now had to be shipped all the way to England, and the British now had a monopoly control of cotton consumption.
This British looting had the effect of reducing the ability of India to support its population. The destructive nature of the British system contained an inherent tendency toward bankruptcy, requiring it to constantly find new sources of loot. The conquest of Bengal led to an initial surge in tax revenues. However, by 1815, the Company was 40 million pounds sterling in debt. The Company's 150,000-strong army was consuming three-quarters of its annual budget. The looting of India had so severely damaged the Indian economy that taxes and revenues were declining. "This difficulty it was that drove the representatives of British power and civilization into become traders in that pernicious drug, opium." The Company's major source of revenue was now its China trade: Chinese tea sold in England and paid for by opium produced by Indian farmers.
The British East India Company's Opium Monopoly
The East India Company established a monopoly over the production of opium, shortly after taking over Bengal. Before each growing season, Company officers went through the villages contracting with the peasants on how much acreage to plant, and making loans to cover costs. Indian peasants sold the opium juice to the Company, whence it was taken to the factory. The opium juice was processed into a form suitable for smoking, and formed into three pound cakes, which were then wrapped in poppy pedals. Forty of these cakes were loaded into chests, each stamped with the symbol of the East India Company.
Civilizing China with Free Trade and Globalization
In a completely transparent fraud of "free trade," the Company then auctioned off these chests to "country traders," (whom it pretended were independent), at roughly four times the cost of production. These traders were licensed by the Company, and in some cases financed by it. The Company would even give the "country traders" opium on consignment, and collect payment in Canton (Guangzhou) after the opium had been sold. East India Company also set up their own country traders. The largest of the "country traders" was Jardine, Matheson & Co. William Jardine and James Matheson formed a partnership in 1828. Matheson was the first to see the potential of smuggling along the entire Chinese coast. Both returned to England, and became members of Parliament. Matheson used his opium fortune to become the second largest landholder in Great Britain, and was made a Baron by Queen Victoria.
In 1729, the Chinese Emperor banned the import of opium, except for a small amount, licensed as medicine. In 1799 a stronger Imperial decree was issued prohibiting both the smoking of opium and its importation. This imperial decree, based on thousands of years old Confucian ideals morals "that a man had a duty and debt to his ancestors. His body was given to him by his ancestors as their link to his descendants. Therefore, for a man to destroy his own body was a great offense against filial piety" prohibited the usage of opium and stated:
"Foreigners obviously derive the most solid profits and advantages ... but that our countrymen should pursue this destructive and ensnaring vice ... is indeed odious and deplorable."
The British were well aware of the destructive nature of opium, but argued that opium sales were necessary because it was the only item which they could sell to the Chinese. The destructive nature of opium was well known at the time of the Opium Wars. Opium is highly addictive, and induces passivity into the smoker. Addicts seldom lived past age fifty; heavy smokers had a life expectancy of only five years.
Payment for tea, which the British imported, had created a drain of silver from
England to China and created adverse balance of payments to EICs.
By 1800, the main source of revenues, from Company operations in India, was land taxes, imposed on conquered lands and opium trade. The opium trade increased from 4,244 chests in the 1820-21 season to 18,956 by 1830-31. By 1831, the opium trade into China was two-and-a-half times greater than the tea trade. It was probably the largest trade in a single commodity anywhere in the world.
By the late 1830's, there was no doubt that opium was leading to the destruction of China. By 1836, opium shipments were more than 30,000 chests, enough to supply 12.5 million smokers. The Chinese imperial army lost a battle against local rebels (triad gangs) because the army was addicted to opium. The financial drain on China in treating opium addicts was disrupting the entire economy. From 1829 to 1840, Chinese exports had brought in 7 million silver dollars, but imports, mainly opium had drained 56 million. The loss of silver was disrupting the internal economy leading to increased unrest.
Father of Modern Economics on Free Trade and Globalization of EICs.
Adam Smith, a leading economist of his time who proposed first "Free Trade" concept which now is renamed as "liberalization and privatization," was a paid official of the East India Company. He was instrumental in advocating the trade of opium to maintain the revenues of the company and as foundation of Free Trade. Adam Smith, in his Wealth of Nations, followed this belief, that human behavior was best ordered by each man following his hedonistic desires to their lawful conclusion. He argued that opium was a legitimate product, the same as any other commodity, that the objective laws of the "invisible hand" must be allowed to determine all economic activity, and anything which stood in the way, such as national governments, were an obstacle which must be removed.
Smith, a propagandist for British colonialism, argued that human progress was advanced with the spread of this "free market" globally, through the expansion of the British Empire. (see the similarities between this argument and the current liberalization campaign, it advocates free trade, destruction of all national government barriers, advancement of US British models of greed and profit maximization under globalization).
Karl Marx Defends Globalization and Free Trade of EICs
A similar defense of British colonialism was also advanced by Karl Marx. Marx has an undeserved reputation as an opponent of British imperialism, because his writings were designed to appeal to, and manipulate people, based on their grievances. Marx emigrated from Germany to England at age 30, where he became a dupe of British Prime Minister Lord Palmerston.
Palmerston dominated the British government from 1830 to 1865, and, was the central figure in efforts to make the British Empire into a new Roman Empire. He directed British strategy in the Opium Wars. He also kept a stable of radicals and terrorists for purposes of destabilizing other nations. (Eleven countries have recently denounced the British government for harboring terrorists, demonstrating that the British have continued this practice to this day.)
Marx called the great capitalist treatise Adam Smith's Wealth of Nations, "an immense step forward" because it reduced the value of all economic activity to the value placed on it, by the universal free market.
Marx's role as an apologist for the British Empire's "globalization" is explicit in his defense of the British Empire's rape of India. Marx advanced a Mandevillian argument, that, because "capitalism" is superior to "oriental despotism", even though the intent and actions of British colonialism were evil, British colonialism benefited India.
Even more explicit is Marx's defense of Britain's first Opium War. Amidst much bravado about the potential for world revolution, Marx praised the Opium War for throwing China into chaos. He claimed that Britain was advancing civilization in China, by destroying China's old culture, and opening up China to the international economy. He even reported, approvingly, that British policies were causing such unemployment in China, that displaced Chinese workers were being used as slave labor throughout the world. Karl Marx wrote in a July 22, 1853 article in the New York Daily Tribune:
"Whatever be the social causes, and whatever religious, dynastic, or national shape they may assume, that have brought about the chronic rebellions subsisting in China for about ten years past, and now gathered together in one formidable revolution, the occasion of this outbreak has unquestionably been afforded by the English cannon forcing upon China that soporific drug called opium. Before the British arms the authority of the Manchu dynasty fell to pieces; the superstitious faith in the Eternity of the Celestial Empire broke down; the barbarous and hermetic isolation from the civilized world was infringed; and an opening was made for that intercourse which has since proceeded so rapidly under the golden attractions of California and Australia. At the same time the silver coin of the Empire, its life-blood, began to be drained away to the British East Indies.''
Reflecting the racism which dominated England, where the majority of the population enthusiastically supported the first Opium War (there were popular demonstrations against the second Opium War), Marx defends the British-forced addiction of China: "It would seem as though history had first to make this whole people drunk before it could rouse them out of their hereditary stupidity."
Between 1836 till 1900 as Chinese Emperor resisted this abhorring practice of doping China, Europeans fought what now known as "Opium Wars" to further civilize China and advance the human civilization. Finally all European nations including USA joined hands to finally defeat Chinese Army in the boxer war in 1900, thus legalizing opium sale to millions of Chinese, with this free trade they secured their source of revenue.
The Company lost control of India with the Indian Revolt of 1857-58, when British troops poured in to crush the uprising. The British government, under Lord Palmerton (1830- 1865), took direct control of India. Queen Victoria, who noted that most Englishmen felt "that India should belong to me," was made Empress of India in 1877.
Finally Mohandas Karamchand Gandhi (father of India, The Mahatma) realized the deadly potential of this opium menace on domestic agriculture and on destruction of China. He started agitating against the production of Opium in 1921 and1922. Mohandas Karamchand Gandhi and all his followers were arrested under the clause of hampering and undermining revenues.
India Commission headed by Mr. Inchape Jr who chaired the commission to look in to complaints of Gandhi, endorsed the continued opium production in India in the year 1921. Finally in 1924 the opium production was completely shifted in to China, Iran and Afghanistan due to continuous pressure from US congress, Japan and Opium committee of League of Nations.
Another exciting product that was dealt on large scale by EICs (all) was selling slaves from all places to South America to work in sugar, tea plantations and ranches. From India they called them coolies, from china they are called pigs and from Africa proper they are called slaves. British EIC sold close to million slaves (these products are terrific as the cost production is zero and what ever the sale price is it is pure profit) till the beginning of 20th century.
Products of Current MNCs and how former colonies responding (Indonesia to India)
Currently these MNCs are first entering in to manufacturing and procuring surprisingly mining diamonds and gold. Every economic attaché is encouraging Indians to mine more and more diamonds which currently stands at US 450 million dollars according to one economic attaché. The next field they are entering is the oil natural gas sectors. (Indians have to remember that this Oil sector was in private Indian businessmen hands who refused to supply oil during the war with Pakistan in 1971 as these private owners figured out that war was not good, an the then Prime Minister natio nalized the oil and natural gas sector. Now we want to sell to MNCs who never want to have a war as it is not good for their business). Third field they are entering is biotechnology (understanding medicinal plant diversity and organic food production with out pesticides and insecticides they have patented turmeric, tamarind, basmati rice and it took couple of years to de list these items from patent, but they will patent every medicinal plant and we have to pay royalty even if we cook and use these plants). Fourth field is Banking and insurance sector (if all our savings are with MNCs along with life insurance then they can use this money in those segments that can make more money for MNCs like investing in stock market speculation which is surprisingly encouraged by many Indian economists too. In stock market in one day crash one can wipe out entire wealth of life time to zero leading to massive social unrest as happened in stock market crashes of 1911, 1939 in U.S.A). Fifth field is capturing the media television, internet, print media news papers and book publishing. On supply side every MNC want to sell hi-tech defense gadgets worth billions of dollars to us. Cosmetics and beauty products, genetically modified foods, processed foods, health destroying soft drinks, spirits and liquor, agriculture chemicals and seeds business. Like EICs the current MNCs want to control what we ear, wear, where we live and how we think.
Indian products are going to create adverse balance of payments with MNCs and their nations soon as all these items are high value items. So the adverse balance of payments with MNCs is a dire situation (as with EICs) and may lead to the discovery of a new "opium" for India, even if not now, it will be petty soon. What MNCs are selling to us is of no use to us as opium was no use to Chinese hundred years ago. What they are extracting is the national wealth which we ourselves would have done. There are inefficiencies in the socialist economy but the first remedy is to try to remove the inefficiencies which is the result of corruption, politicization of unions, nepotism, politicization of corporate officials. If father as a role model in the house is not up to the mark we do not replace the father by second one, we try to change him first. But these resources have to be controlled by either EIC or MNC as these are needed to technologically dominate, economically intimidate nations.
How other former EIC countries are responding for MNCs
Except India none of the former colonies are interested in this new wave of liberalization and privatization. Starting from China till Japan they still maintain that west can only share technology. Even in technology issues in many segments Japanese caught up and beat the west. Japan-(never occupied by any EICs, except withdrew from WW-II after nuclear explosions, brief interim rule by USA 1945-1952) None of the above sectors are opened for MNCs as Japanese still believe that west has nothing of value to offer them. Japanese do not even release their latest versions of electronic products in any of the Western Countries until they were first sold in Japan for at least 3-5 years, as they feel in the usage of these technological gizmos west is inferior to them.
They said categorically no to all MNCs in banking, insurance, media - print and television, bio-technology. In Japan stock markets are not open to multinationals. Even the domestic industry too can issue only up to 20 % of its common stock to general public. Rest has to be issued to government banks. This will remove the factor of playing with stock exchange, even one buys the entire stock of a particular company, still he owns only one fifth of the company. As foreigners are not allowed to trade in the local Japanese stock market the fear of EICs MNCs taking over the stock markets thus the industrial back bone of any country are virtually non existent. China-(Part of British, French Dutch Belgium East India Companies, USA Germany Russia had territorial rights) None of the above sectors are opened. They wanted only investment in manufacturing sectors along with the technology transfer.
They never allowed even CNN to broadcast its news on the grounds that it is biased towards the western perspective. No to insurance banking, media oil and natural gas exploration. China even never allowed Amway Corporation on grounds that it is propelling greed among the populations, and blaming Amway’s donation to universities to produce reports and mould public opinion in western favor.
China do not has a developed stock market. They follow their thousands of year old "Single Entry Accounting System of Book Keeping" which prevents western corporations to really play with any accounting numbers. This system is still followed in India too by native business men. But as usual our drive to modernize and civilize is driving us faster towards "double entry mode of book keeping" though being simple and with all advantages, fraught with corporate fraud, public cheating, swindling of public money by unscrupulous accountants. Indonesia- (Part of Dutch East India Company) They said no to most of the above to all former colonial powers.
When oil was found in East Timor and A(I)ryan Jaya, Holland/Dutch negotiated for exploration rights in 1975. Indonesian government denied. For past two decades massive social funding was pumped through various NGOs in to East Timor and most of this money went in to converting locals by missionaries. Once the converted Christian population reached the critical 50% they started agitating for independent state hood, Christian Republic. This demand was denied by Indonesian government. Then these rebels were armed. In 15 years armed struggle started. Every body in west knew there is no chance for these rag tag rebels to face the mighty Indonesian army. So in 1995 whole former European colonial powers raised hue and cry that religious freedom, human rights are abused in Indonesia. To free the people of East Timor from oppressive Indonesian government the matter was referred to United Nations. United Nations too want to guard the freedom and human rights of East Timorians. Thus a multinational force under Australia entered East Timor and liberated it in 1998/99. Republic of East Timor was born. The newly "democratically elected president" of East Timor gave oil exploration contracts to Dutch Oil Corporations.
Malaysia- (Part of Dutch and French East India Companies) Categorically said no to any MNCs as they follow the Japanese model of economic development. Malaysia was subjected to economic blockades, international loans were withheld, so much unrest is created to replace current presidents, but they are still resisting and holding off the entry of MNCs.
India- (Part of British East India Company) We are the first country colonized by EICs. But MNCs though want to do business with us never were interested till 1995. Between 1990-1995 they found some thing within India, some thing of extreme value which prompted them to move with full speed and vigor to re colonize us. As we were the naïve first and foremost colony, filled with more anglophiles (we love to speak and imitate English more than our mother and motherland) than Britain and USA combined populations posses. Many in India think that we have the largest English speaking people and that is why MNCs are coming to us to modernize India. This is a myth. For instance Japan contains more English speaking people than India. Japanese speak exceptionally excellent English. Like Europeans though Japanese speak English they do not communicate in English but in Japanese. But no MNCs are there in Japan. Any one who want to go or to do business with Japan first have to learn Japanese and must communicate in Japanese.
Conclusion
We have seen in the case of EICs the victim of their free trade and globalization was the agriculture sector and agrarian labor. This followed by the destruction of domestic labor intensive economy leading to massive unemployment and social unrest. Mahatma Gandhi started his movement aptly calling it satyagraha literally meaning angry for truth. The only solution he saw for the menace was Grama Swaraj-self sufficiency of Villages thus agriculture sector. After 50 years of independence we are first time seeing the destruction of agriculture both by state governments and central government. Agrarian labor are shifting towards cities, farmers are killing themselves, state governments are fighting over true national resource water and forcing millions of acres of agrarian land to dry up. Prices of seeds, electricity, manure are going up forcing many to abandon agriculture and move as labor to cities. The so called highly profitable Aqua Culture (prawn export) though initially profitable (like land taxes for EIC) now destroyed most agrarian lands permanently in coastal Indian towns. Incidentally all this is coinciding the dazzling and dynamic liberalization and privatization drive by all governments under EICs turned MNCs entry in to the country since past 5 years. Are we going to shift to our "Traditional Magic Crop under EIC-opium" or is there more sinister to this round of anti agricultural practices- a permanent destruction of food diversity of India and make it depend for food itself on all MNCs as now they are producing in way excess quantities of certain food items which now they can supply for next 500 years at dirt throw prices.
Are we repeating Bengal Famine again? Is gram swaraj, for that matter swaraj in real danger? Well the answer to this question depends on how much information any one has about what is happening in India and anywhere in the world.
Copyright ©2003 Indian Heritage Research Foundation, Ontario
