Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Monday, August 30, 2010

Gunpowder - The Indian Monopoly!

A vizcacha, relative of the chinchilla, in Chile's Atacama
Desert. These herbivores are among few who thrive
in the Atacama. (Photo shot o assignment for
"The Driest Placeon Earth," August 2003, National
Geographic magazine) Photographby Joel Sartore

Arid, Desolate Atacama

On Chile's northern border is the remote, arid Atacama desert. Desolate and dry, rain in Atacama happens once in 2-3 years. Some people living in the Atacama have never seen rainfall in all their lives. Yet, there is some sparse wildlife - a tribute to hardiness of living beings.
Strangely, the Atacama is home to a few ghost-towns - once boom towns. For five years, from 1879-1884, Bolivia and Peru fought with Chile over this rainless, arid and desolate terrain.
Behind this curious importance of the Atacama desert was nitrates. It was Atacama's nitrates interestingly that broke an important British monopoly - based on India's saltpetre production.

Untold secrets

In 1809-1810, the British had to mount a serious campaign in the Indian Ocean. The French, from their Indian Ocean naval bases at Île de France (Mauritius), Bourbon (Réunion) and Rodrigues, attacked East India Company ships carrying valuable saltpetre (also saltpeter, nitre, niter) - so essential for the Spanish War (1808-1809).
The British army, retreating across Spain, in harsh winter conditions, needed saltpetre. Under the onslaught of the French forces, ruthlessly pursued, the final escape of the British army, from Corunna was a miracle. The British General, John Moore's death, at Corunna, Spain, was turned into a heroic 'victory'. Charles Wolfe's poem, The Burial of Sir John Moore after Corunna became essential reading for every English schoolboy.
Indian saltpetre for could not reach Confederate armies due to Union naval blockade!

In 1800, a son from a rich family of refugees from the French Revolution in America, after a survey of business opportunities in America, wrote

There already exist in the United States two or three mills which make very bad powder and which do however a very good business. They use saltpeter from India which is infinitely better than that which is produced in France but they refine it badly.
The son was Eleuthère Irénée du Pont, the family was the Du Pont family - and their firm is now known as EI du Pont de Nemours and Co. EU du Pont's expertise in manufacturing saltpeter came from his training with the French Agency for Powder and Saltpeter (Regie royale des poudres et Salpetres) - and under the tutelage of Antoine Lavoisier, the French chemist, he boasted.
Behind the Dupont fortune was Indian saltpetre. Behind Lincoln's success in the American Civil War was saltpetre. Behind Anglo-French confidence against Germany in WW1 was the control of the saltpetre deposits from India. Germans were able to sink many of these British saltpetre shipments. In turn, Germans with the Haber-Bosch process, in BASF factories, continued the war - without Indian saltpetre or Chilean nitrate supplies.
Was Nalanda behind the gunpowder expertise in Bihar and
Bengal region. A section of the Nalanda Mahavihara. The
qualities of Buddhahood were personified in the vibrant style
of art that was created in the university's intellectual
atmosphere. (Picture by BENOY K. BEHL, courtesy: The
Frontline). Click for larger image.

Saltpetre - what's that?

What was saltpetre? Why was saltpetre important. Why did India play such an important role in saltpetre?
Unusually important, the chemical name of saltpetre is potassium nitrate - an essential ingredient in gunpowder. Indians had perfected the method of preparing potassium nitrate (KNO3). The other two ingredients in gunpowder being charcoal and sulphur - easily and freely available and cheap.
India's military technology is history's greatest 'hidden' secret. Official (and Western) portrayal of Indian military systems in the face of Islamic invaders, Mughal sultanate and the rise of British imperialism makes out India as a sitting duck with ill-trained and terrified soldiers, armed with bows and arrows, who were hopelessly outclassed by the enemy.
Facts being otherwise, it raises questions about motives for this deliberate wrong portrayal.

The story from Mongolia

In the last 1000 years, there are sketchy records of gunpowder in India, with Rai Hamir Deva of Ranathambore of the Malwa region, who supposedly used some Mongol deserters (1300 AD) to fight Khilji armies with gun powder. This may be misleading for two reasons.
Modern history credits China with the invention of gunpowder. Firstly, this is largely based on the work of a self-confessed Sinophile - Needham. With a dismissive one sentence, Needham opines, "On Gunpowder history in India, Oppert (1) was duly exploded by Hopkins(2)." And Indian history as the world's largest producer of gunpowder was swept under the carpet. Needham conveniently ignores evidence like how
Jean Baptiste Tavernier recorded a local tradition in the 1660s that gunpowder and artillery were first invented in Assam from whence they spread to China and he mentioned that the Mughal general who conquered Assam brought back numerous old iron guns captured during the campaign.
Secondly, Mongol territories extended from Mongolia to the gates of Vienna and Russia - but not India. How is it that a few deserters-soldiers could establish the world's largest gunpowder production system, so rapidly in non-Mongolian India. But, could not do so in conquered territories of China, Central Asia, Middle East, West Asia, and Europe.





Saltpetre from India kept the British 6-pounders
busy at Waterloo! Click for larger image.

A 100 years before Needham, India's pioneering status in saltpetre was common knowledge. English publications, for instance in 1852 and another in 1860 gave weightage to the opinion of
those who believe that gunpowder was invented in India and brought by the Saracens from Africa to the Europeans; who improved its manufacture and made it available for warlike purposes.
Unlike China, with an odd textual reference or a drawing or a singular artefact, was the entire industry in India - which remained unrivalled in the history of the world. Compared to China's paltry production of gunpowder, India's widespread and organized gunpowder production system points towards indigenous development. There are reports, that in "664 an Indian visitor to China reportedly demonstrated the peculiar flamability of saltpeter and provided instructions on how to locate it (Pacey 1990, 16)."

Tall tales ... thin stories

The deserter Mongol soldier source seems rather far-fetched considering that Mongol armies studiously avoided attacking India. India, the richest economy of the world at that time, known and famous for its wealth, was spared by Genghis Khan! Just why would history’s foremost looter, invader, pillager spare India?
When Genghis Khan’s Mongol armies were running rampant, Islamic refugees found shelter in India, during the reign of Iltutmish. In 1221, Khwarezm-Shah and other Persian refugees, sought refuge in India, across the Indus into the Punjab, India, from Genghis Khan's Mongol armies.
Encyclopedia Britannica says Fortunately, the Mongols were content to send raiding parties no further than the Salt Range (in the northern Punjab region), which Iltutmish wisely ignored …” (emphasis mine). As Indian military reputation waned under foreign Islamic rule, the Mongols mounted a military expedition. The Mongols could succeed in India only under the foreign rule of the much-derided Islamic Tughlaks.

India - the largest gunpowder source in the world

Now, combine saltpetre production with the fact that the heart of the Indian saltpetre production was in Bihar, which was also the home of the Nalanda seminary /university.
By the 16th-17th century,
In parts of India that never were frequented either by Mohammedans or Europeans, we have met with rockets, a weapon which the natives almost universally employ in war. The rocket consists of a tube of iron, about eight or ten inches long, and above an inch in diameter. It is filled in the same manner as an ordinary sky-rocket, and fastened towards the end of a piece of bamboo, scarcely as thick as an ordinary walking cane, and about five feet long, which is pointed with iron.

What about Europe

Saltpetre based gunpowder was in constant short-supply in Europe. Gold from the Americas, flowing into European trade channels, fuelled demand for gunpowder. Gunpowder became an essential ingredient for subjugation of natives, extraction of gold, capture of territories and slaves, piracy on the high seas - all the real reasons for ascent for European power.
The European gunpowder situation was grim. This can be gauged from "a letter of 1605 from the King of Spain to the Viceroy of Goa (the Portuguese trading settlement on the south-west coast of India) for example ordering the annual dispatch of 10 or 12 caskets of saltpetre." Remember in 1605, Spain was the prime power European power. Compare that to the Indian situation.
When Raja Pratapaditya of Jessore capitulated to Islam Khan in 1609, he agreed to surrender twenty thousand infantry, five hundred war boats, and a thousand "maunds" (41 tons) of gunpowder.
The outcome of Waterloo can be gauged from a forgotten statistic - "In the year before the battle of Waterloo (1815) the East India Company exported 146000 cwt. of saltpetre to England." 146,000 cwt is 7300 tons of saltpetre. British Ordnance Board powder mills in 1809,
produced 36,623¾ ninety pound barrels of powder and private contractors using government supplied saltpetre a further 24,433 ninety pound barrels. Some of British munitions output was supplied to allied governments: Portugal received in the years 1796-1801 ... 10,000 barrels of powder, 500 tons of saltpetre; the British Government put into execution the gigantic plan of being a depot, the manufactory, the place of arms, and the centre of the European war
Spain and Sweden also received munitions for fighting on the British side against Napoleon. British victory at Waterloo, was in no small measure "thanks to the use of Indian saltpetre, British gunpowder was widely recognised to be far superior to the charcoal-like French product." British creditworthiness received a boost just before Waterloo. British debt, trading at 25% discount in 1813, was boosted by Indian gold, in 1813, procured by Britain.
Western historians now reluctantly admit, that without the "accumulated credits from Indian transfers since 1757, Britain's financing of land warfare during the French wars could have been compromised." Napoleon and France could not "march their combined armies to India, and strangle the supplies of British gold that had been financing successive coalitions against France."
Without the advantage of Indian saltpetre, with a threatening Britain
in 1792 France was able to face danger on all sides, it was because Lavoisier, Fourcroy, Guyton de Morveau, Chaptal, Berthollet, etc., discovered new means of extracting saltpetre and manufacturing gunpowder.
Some 6000 factories manned by 'salpetriers' worked in France to overcome the naval blockade.

Meanwhile in India

Malwa's rulers recruited Purbias from Bengal and Bihar for their expertise in gunpowder. The British initially valued and later (after 1857) feared the Purbias for the same reason. The other reason was an established saltpetre production in the Malwa region till the 19th century. In Punjab, the main centres were Lahore, Hissar, Multan and Amritsar.

India's gunpowder production system

India was the largest gunpowder production system - in the history of the world, till the 20th century. Specifically Bengal and Bihar regions. Operated by a caste of peoples called the nuniah, saltpetre beds supplied the most vital element in gunpowder - saltpetre. And India produced virtually all of it.
Especially, Bihar, Bengal, Agra and Tamil Nadu, Andhra and Karanataka regions (Anantapur, Coimbatore, Guntur, Kurnool). The Guntur Sircar also manufactured saltpetre on a commercial scale. A mid 17th century Royal Society paper documented how saltpetre was made in India. Most of the miniscule amounts of saltpetre produced in the rest of the world was calcium nitrate, a hygroscopic salt, which spoilt easily by absorbing moisture from air.
The Armenians, the ill-fated Omichund, a "notorious Calcutta merchant who was later to engineer the Plassey Revolution" played an important part in the Bengal/Bihar saltpetre trade. They were all significant players in the export of saltpetre (potassium nitrate). Also known as niter, saltpetre was a necessary ingredient for gunpowder.

Gunpowder becomes a British monopoly

"By seizing Bengal, the British exerted mastery over 70 percent of the world's saltpeter production during the latter part of the eighteenth century. Since powder stocks could not be prepared quickly or easily, demand was no less during peaceful interims than during times of war, for, in addition to normal sales for peaceful purposes, gunpowder was steadily purchased or produced to build up military powder reserves for emergency use.

One reason why China developed fireworks, rockets, and other incendiaries rather than shot-firing artillery was China's reliance on artificial saltpeter for making gunpowder. The Chinese also often used a higher proportion of charcoal and sulfur, which resulted in more fire and less ballistic strength. (16) India, on the other hand, produced saltpeter of very high quality, enabling the development of gunpowder weapons, in particular heavy siege guns, in addition to rockets. In many ways, Indian gunpowder making was more advanced than that of China, particularly regarding the strength of the final product, in its commercial organization, and in its application to military purposes.

As early as the 1460s, nearly forty years before the commencement of the East India trade, these Persian sources make it clear that the rulers of Jaunpur and Bengal already had organized saltpeter production as state monopolies managed by their chief merchants.

India was roughly a century ahead of Western Europe in terms of developing the infrastructure for gunpowder technology. It is significant, though, that gunpowder was not shipped to India from Europe in any significant quantities. By 1617, the Portuguese king had joined the general European clamor for more saltpeter. The capitalization of the saltpeter trade at Rajapur was in the hands of Saraswat Brahmins, with investors participating from as far away as Goa and Diu. Shivaji (r. 1664-1680) and his successors made nitrate procurement into a state monopoly, thus forcing the Portuguese, their Indian agents, and Banjara peddlers to deal with the Maratha state.

The Mughal Empire has been styled a "gunpowder empire," which is a debatable characterization. (34) It is clear from Mughal records that guns were important, if only as symbols and occasional instruments of imperial power. The victory of Babur (r. 1526-1530) over Ibrahim Lodi (r. 1517-1526) often is attributed to his use of artillery, however, Babur himself valued his own judgment at least as much as his Turkish guns. (35) After the Battle of Panipat (1526), the first Mughal ruler ordered executions by firing squad, which are some of the first such killings recorded. Contemporary descriptions of Babur's battles, however, emphasize the continuing dominance of cavalry, with guns present but not decisive. Nevertheless, warfare was changing in South Asia. Babur's eldest son and successor, Humayun (r. 1530-1539/1555-1556), was keen to bring Rumi Khan, the Turkish artillery expert employed by the Sultan of Gujarat, over to his side. (36) The widespread use of firearms by Sher Shah (r. 1540-1545) during the brief Sur interregnum is significant, as is the fact that Sher Shah himself was killed by a gunpowder explosion. (37) The early sixteenth century, for India, was a time of significant military change, a watershed between the age of the blade and the age of the gun.

Sher Shah realized that a large army of peasant matchlockmen, recruited and paid by the state, could only exist in the context of a bureaucratic regime with enhanced revenue-collection capabilities and in a kingdom with strong commercial institutions. This lesson was not lost upon Akbar (r. 1556-1605), whose advisor, Abu al-Fazal, adopted many of Sher Shah's innovations. The rising importance of the saltpeter trade, as well as its lowly origins, may be gauged by the meteoric rise of the warlord Hemu, who had opposed Akbar's accession to the throne. Akbar's biographer-courtier, Abu al-Fazl, uncharitably informs us that Hemu was a member of "the Dhusar tribe, which is the lowest class of hucksters in India. At the back lanes he sold saltpetre (nimak-i-shor) with a thousand mortifications ... till at last he became a government huckster...." As Akbar's army set out to challenge Hemu, their spirits were roused by a giant image of the saltpeter merchant-turned-general, filled with gunpowder and set on fire. (38) Ironically, Hemu was killed by the Mughals not with a musket shot, but in the old-fashioned style, with an arrow in the eye, followed by a sword blow to the neck.

Significantly, Sher Shah's infantry, carrying firearms, were recruited from the eastern Ganges Plain, the same region in which saltpeter production had already become an important component of the regional economy. Later, this area provided infantry for the Mughals and eventually for the British, too. (from The Indian saltpeter trade, the military revolution and the rise of Britain as a global superpower. from: The Historian, Article date: September 22, 2009, Author: Frey, James W.)
After obtaining this vital monopoly, Britain protected this. Saltpetre exports were banned. Thus an ancient Indian technology was harnessed by the English to subjugate the Indian.



India's widespread manufacture of saltpetre was
private enterprise! Without state subsidy
or support! (Picture by BENOY K. BEHL,
courtesy: The Frontline). Click for larger image.

From gold came saltpetre, which made getting gold easier

Greater access of saltpetre to the British and with the shutting out of other European powers, saltpetre became essential for other European powers, because English had it. It became rare, as the English monopolised the trade.
In 1775, the French scientific publication, Observations sur la physique a proposal by Academie Royale des Sciences for increased saltpetre production within France. Finally, a prize was announced in 1783. Nicolas Leblanc set up a factory at St.Denis, during 1791-194, near Paris for manufacture of saltpetre in France. The whole of France was mobilized for this saltpetre collection and gunpowder production.
Directions for gathering of saltpeter were printed and sent all over France. The prescribed recipe for saltpeter, charcoal, and sulphur was dispatched to the flour mills and the powder was ground according to simple specifications. Each district was directed to send two citizens to Paris for a month's course in the casting of bronze and iron and in new methods for the manufacture of powder. (from From crossbow to H-bomb By Bernard Brodie, Fawn McKay Brodie.).
At the start of the American Civil War, against the Southern Confederates, The North started with the benefit of a stockpile of some 3 million pounds of niter - i.e. saltpetre. The Confederates sent James Mason and John Slidell to obtain saltpetre from Britain - and not empty diplomatic recognition from European powers. Mason and Slidell were captured by Unionist forces. Britain demanded release of Mason Slidell. Lincoln refused.
Queen Victoria issued a proclamation forbidding the export from all ports of the United Kingdom, of gunpowder, nitre, nitrate of soda, brimstone, lead, and fire-arms.—London Gazette, Dec. 4.
Britain imposed a ban on exports of saltpetre. Known in history as the Trent Affair, as Union saltpetre stocks went down, Lincoln backed down and agreed to release Mason and Slidell. Prices of saltpetre skyrocketed from some US$0.20 to US$3.0 within one year after the war began. The Confederates established a Niter Corps to manage this shortage. British godowns overflowing with Indian and Egyptian cotton, did not really depend on Southern cotton, declared neutrality - and supplied both sides with Indian saltpetre.
Well understood by the US Government, C.H.Davis, of the Bureau Of Ordnance, Navy Department, on November 22, 1862 reported to the US Congress,
I feel it, therefore, to be my first duty to urge that suitable provision of ordnance material be made for probable future necessities of the Navy. Most important among them is nitre, which enters so largely into the composition of gunpowder that it may be said to be gunpowder itself, with some slight additions of sulphur and charcoal under proper combination.

It is not produced naturally in this country, nor by any other but India, except in insignificant quantities.

Hindostan alone supplies the whole world, which being a British dependency, places us entirely at the mercy or caprice of that power for our stock of this essential article.

End of the saltpetre era

With the arrival of Chile's nitrate (sodium nitrate - NaNO3) deposits in Atacama desert, the world was weaned away from Indian saltpetre. Chilean nitrates were used to derive nitric acid, a key intermediate for explosives manufacture.
Chilean nitrate was sodium nitrate, (NaNO3), which could be used to derive nitric acid. Nitric acid was used for manufacture of explosives. HAPAG, the Hamburg based shipping line, became the biggest in the world, carrying Chilean nitrates to Germany. The end of Boer War (1899-1902) saw the emergence of Germany as a major producer of munitions - especially the smokeless gunpowder. Even Britain started buying from Germany.
For a brief while, guano, a natural fertiliser composed of bird droppings, was also a source of nitrates for explosives. But, with the Haber-Bosch process, Germany could manufacture explosives - without the Chilean nitrate.
With the discovery of nitroglycerine and TNT and its widespread commercialization by Alfred Nobel (of Nobel Prize fame) from the 1860s onwards, this British saltpetre monopoly end. As the British monopoly over gunpowder started weakening, the British policy changed.

Pirate nation to super-power

Till 1856, sea piracy was legal.
The British crown gave permits for pirates to operate on high seas – through, what were known as, letters of marque. With the sanction of the English State, high seas piracy became a national pastime in Britain. Pirates like Sir John Hawkins made money on slave trade and piracy - targeting Spanish ships. Queen Elizabeth, apart from knighting him, also participated in these criminal enterprises. The Spanish Armada was assembled by Spain to end British piracy. Further on, British propaganda made these pirates and privateers into heroes - and the Spanish Armada into an instrument of Catholic repression.
Piracy was outlawed by The Declaration of Paris, in 1856, ratified by various powers. Initially by Austria, France, Great Britain, Prussia, Russia, Sardinia and Turkey – but not by Spain, Portugal and the USA. Soon after, Britain became a buyer of explosives, munitions. Challenges to British power started soon after this.
In less than than a 100 years after invention of alternates to Indian saltpetre, Britain was a shadow of its former imperial self.

The end of Indian saltpetre

To cover the cost of the Anglo-Indian War of 1857, the British Raj increased taxes on saltpetre. British traders from India started clamoring for a reduction in export duty from 1860 onwards. From more 20,000 tons of saltpetre exports in 62-62, it fell to around 11000 tons by 1865, and continued declining there after.
By which time, Britain was already the preeminent power in the world. On the back of Indian gunpowder factories.

Thursday, March 20, 2008

The Nobel Prize For A Con (eCONomics)

U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press ... that allows it to produce as many U.S. dollars as it wishes at essentially no cost. ... ...the Fed could find other ways of injecting money into the system--for example, by making low-interest-rate loans to banks or cooperating with the fiscal authorities ... If we do fall into deflation, however, we can take comfort that the logic of the printing press example must assert itself, and sufficient injections of money will ultimately always reverse a deflation. Remarks by Governor Ben S. Bernanke, Before the National Economists Club, Washington, D.C. November 21, 2002 (ellipsis mine)

In the last 5 years more than10 trillion dollars were printed and the world is awash with dollars.

Asians Are Funding The US

"Lendings by US commercial banks in the period 2000 to 2004 soared by altogether

USD 1,500bn to USD 6,750bn. In the European Monetary Union lending to the private sector by monetary financial institutions (MFI) climbed from roughly EUR 6,200bn end-1999 to not quite EUR 8,700bn at the end of last year." - Allianz Report, Dresdner Bank.

Commodity prices are going through the roof. The recipients of this largesse, mainly Western banks have made (it is whispered) bad loans worth 300-400 billions dollars. The final figure may be larger.

Asians Are Funding The US

Who had landed with this hoard of dollars - getting devalued daily. China (with more than 1 trillion dollars), Japan (another trillion dollars), Russia (400 billion dollars), India (300 billion dollars) are the top 4 countries.

I hereby nominate the US Federal Reserve for the Nobel Prize for Conmanship. They truly deserve it.

The Urbanisation Experience - The World & India

World TotalsPost colonial India, in the last 60 years has seen the shift of 30 crore (300 million) people from villages to cities - which is nearly the population of the entire USA. In 1947, India's urban population was 6 cores (60 million) - and in 2008, it is estimated to have crossed 36 crores (360 million). Another 500 million are expected to move in the next 20 years.

It is the largest demographic shift in the history of mankind - without wars, revolts or persecution. Most revolts, wars and upheavals have been accompanied by urbanization. Urbanization as the cause or an enabler of the revolutions is a matter of debate, research and conjecture.

Major Urban Agglomerations

India is different.

Indian culture started with urban centres like Harrapa and Mohenjodaro (dated between 2000-4000 BC). India has gone through many cycles of urbanization and rural migration.

The last de-urbanization happened at the the start of British Colonialism during the 1800 period. Cities like Dhaka lost between 50% to80% of its population. British Colonialism immediately startedUrban Spread In History flooding India with its Lancaster wares - and restricted Indian handloom weavers from competing with Lancaster.

The Renewal Of Mumbai

In 1982, Dr.Datta Samant called for strike by the textile workers in Mumbai. The strike went on for a year. Textile industry in Mumbai, tethering on the brink of collapses, went bankrupt.

Half of Mumbai's population (my estimate) was, directly or indirectly, dependent on these mills. In one of the most heroic renewals in modern urban history, Mumbai re-invented itself. From the manufacturing capital of the country, Mumbai has become the services capital of the country. It is this spirit which has made the Indian urban growth a remarkable story in the urbanization of the world's population.

Many Religions

The largest Islamic population to co-exist peacefully with another religion in the world now lives in India. While the West has been demonizing Islam, Indians Muslims have been getting ahead. In the last 10 years, Indian Muslims have become the richest (Azim Premji), occupied the highest office in the land (APJ Kalam) in this country.

Europe - Revolution & Civil War

In 1800, 23 European cities boasted of a 100,000 population. By 1900, there were 135 cities with over 100, 000 citizens. Amongst other causes, increased urbanization was a feature of the French Revolution - which started a chain of revolutions for the next 125 years.

The Russian Revolution by the Communists succeeded due to the rapid urbanization of Russia. Urban Russian population doubled from 7.3 to 14.6 million between 1867 and 1897. Expansion of railways between 1892-1903 made migration and travel to cities easier. Tsarist Russia, built on the support an land owning nobility, with serfs used for production, found that the urbanized industrial workers supported the Communists.

With increasing urbanization and the decline of colonies, Spain slipped into a civil war.

The Balkans Civil War, now running in its 100th year, with intermittent breaks and under different names, started with the urbanization.

South America

Among other things, urbanization played a major feature in South American 150 years after de-colonization. From 1820 - 1970, South America went through de-colonization, urbanization, revolts, revolutions - and crime.

The tipping point in South America was initially de-colonization, peasant and slave revolts and thereafter urbanization.

Why Are Cities The Focal Point

Cities provided spaces where large numbers of people could gather - and a 'change process' can start. Red Square in Moscow, Champs de Mars (where the first public meeting after the French Revolution) took place, the Tian An Men in Beijing, or the Shivaji Park in Mumbai are places where such meetings can happen.

Marx famously dismissed peasants as "a sack of potatoes" - and saw the urban worker as the base for the workers revolution. Peasant revolts are more difficult to organize as the population is spread over vast areas.

Where Do We Go From Here

This urban growth in unprecedented - and unparalleled. It shows the tremendous adaptability and resilience of the Indian. The Indian urban concept aspires towards foreign idiom - and that is the problem.

Mumbai wants to become another Shanghai, says Chief Minister, says Vilas Rao Deshmukh. This is aspiration is something that is mostly referred in a derisive manner - thankfully.

What Indian cities needs are instead to learn from the home grown Mumbai urban train transport system. For a monthly cost of Rs.70-200 (US$2-US$5), people in Mumbai can travel any number of times, in relative discomfort. It is a safe mode of transport (unlike the legacy rail system of the Colonial Britain). Accidents on this system happen due to its popularity - overcrowded trains. It is also profitable - and devoid of subsidies. Similar metros (not in scale or traffic though) have come up in Kolkatta and New Delhi.

What Indian cities needs are an Indian idiom - to solve the problems of these Indian cities. Will Indian planners deliver!

Thursday, February 7, 2008

Country Business Model Of The West

The Myth Of Western Technology

In the last 50 years, after WW2, the rise of Japan, Korea and China in manufacturing and technology and the Indian software success, have taken away the sheen from the myth of western technological prowess. Post colonial revisions in history are eroding the euro-centric version of concocted history.

Failed Westernisations

For some time, the easy way out seemed to be 'copycat' westernisation. One of the first 'copycat' states was China. China, led by Sun Yat Sen, (original name Sun Wen and started calling himself Yat-sen; Chinese call him Sun Zhongshan), was the first major power which tried going down the western path. The Japanese invasion of Manchuria sounded the death knell of the Chinese Republic and Monarchy.

China - Mao & Sun

Sun Yat Sen decided to westernise and make China into a Republican democracy. Chinese were made to cut their queue - pleated hair braids. This diktat was enforced in 20 days time. Sun Yatsen and later Mao Ze Dong made the Chinese change their dress styles too. The effect of this westernisation - an enduring sense of being followers. The Chinese add a western name to their Chinese one - Bruce Lee, Jerry Yang, Tommy Tang, Tommy Chi. In Hong Kong and Macao, white tourists are royalty.

Ataturk's Turkey

Turkey - led by Mustafa Kemal Ataturk was the next 'copycat' attempt at westernisation. After WW2, the victorious allied powers dismantled the Ottoman Empire. Turkey was reduced to a rump state. Atatürk (much like Hamid Karzai) was 'installed' by Western powers. Thereafter, Turkey has lurched from crisis to another. Post WW2, it has been mostly ruled by military dictatorships. From being a arbiter in Europe, it has become a supplicant, begging for entry into EU. Instead of the queue in China, - it was beards in Turkey. Atatürk enforced a new dress code on the hapless Turks - and the traditional fez was banned. Stop wearing the fez or else ...

Russia - Westernising Since Peter The Great

Peter the Great, (of the Naryshkin family) co-ruler of Russia, (along with Ivan of the Miloslavsky family) ruled from 1682-1725. For more than 40 years, his agenda was to create Russia in the Western mould. His travels to Germany, Britain, Sweden (before becoming a Tsar) shaped this agenda. One of the first things he did after becoming a Tsar was to ask his boyars (Russian nobility) to shave their beards! Catherine The Great continued this during her reign from 1762-1796. For the next 125 years, Russia vacillated between a medieval country and modern western country.

Now, the imprisoned oil tycoon Mikhail Khodorkovsky takes pains to show how Russia is a western nation and should be democracy. Khodorkovsky, who at one time nursed political ambition, says, “…I’m convinced that Russia is a European country, it’s a country with democratic traditions …”

The Anglo Saxon Country Business Model

These Turkish and Chinese failures down the western garden path is to mistake the trees for the forest. There are five major features of the Anglo Saxon country model country model which these countries did not copy. Not that I am recommending that they be copied.

The Use Of Corporations

The use of the British East India Company was an eye opener for the rest of the West. After Vasco da Gama's discovery of trade route to India (for Europeans) round Africa, the British were the first of the block - with the English East India Company formed in the 1600. The Dutch started soon after with the Vereenigde Oostindische Compagnie (Dutch East India Co.) in 1602. The Danish Opperhoved initially started in 1616 and was reborn in 1732, as Asiatisk Kompagni. The Portuguese organised themselves as chartered company in 1628. The French came with the French East India Co. in 1664. The Swedes joined the rat race in 1731 with Svenska Ostindiska Companiet. The Italians came in as the Genoa East India companies. The Hanseatic League had its own operations.

In North America, the Hudson Bay Company (Compagnie de la Baie d'Hudson in French) was given a Royal Charter in 1670 by Charles II. It practically owned Canada when the Dominion of Canada was formed - and is the oldest surviving company in North America. It monopoly ended only in 1870 - a few years after the Indian Independence War of 1857.

Anglo American Oil Company (subsidiary of Standard Oil) of Iran plotted the the assassination of Iran's Prime Minister Haj Ali Razmara and the overthrow of the Mohammed Mossadegh regime. Thereafter, it was the puppet regime of Shah Of Iran which terrorised Iran for 30 years that paved the way for return of Ayatollah Khomeini - and Iran's regression to medieval times.New Clues to JFK’s Murder?

In South America

In 1997, the CIA de-classified papers which admitted it planned and executed the coup in Guatemala - something that was known all along. This was done to protect the interests of the United Fruit Company - which owned large tracts of agricultural land in South America, used South American labour and shipped out fruit to America. Guatemalan farmers were run out of the market.

When Guatemala proposed land reforms so that Guatemalans could prosper in Guatemala, the Government of Jacobo Arbenz was overthrown. By the way, the term Banana republics came into being from the frequent intervention of the US into South American countries - and then ridiculing these countries for instability. To obtain US Governmental intervention, the United Fruit Company engaged services of Sigmund Frued's nephew as PR front man.

The last 100 years saw the use of these companies as a means of economic dominance. ITT was used in South America for installing and removing dictators "... ITT papers published by Jack Anderson in March 1972, and in the hearings on these papers conducted by the Senate Foreign Relations Committee a year later. This material establishes that offers of financial aid aimed at stopping Allende were made by ITT president Harold S. Geneen to the CIA in July 1970 and to Henry Kissinger's office in September" (Foreign Affairs; January 1974). Had Richard Nixon and Henry Kissinger not responded to International Telephone & Telegraph and Pepsi-Cola by overthrowing Salvador Allende, Chile “would have found a less violent, more constitutional way out of its conundrum.” writes Stephen Kinzer in his book Overthrow: America’s Century of Regime Change From Hawaii to Iraq.

To gain control of the Panama Canal Company, the operator of the Panama Canal, US engineered the secession of Panama from Colombia. Subsequent interventions to advance Western oil interests in Colombia and the Canal interests in Panama have reduced Governmental authority in these countries. Drug cartels, kidnapping and ransom now control the economy of these countries.

Nearer home, of course, the next ruler of Pakistan (military or otherwise) is decided by US - at least for now.

The Cornering Of Gold Supplies

For the last 150 years, the ABC countries (America, Australia, Britain, Canada) comprising the Anglo Saxon bloc (countries, colonies and companies) have controlled 90% of the world's gold production. Till (a large part of) India was a British Colony, they also controlled more than 50% of the above-the-ground gold reserves. This gave them absolute liberty to print depreciating currency and flood the world pieces of paper(called dollars and pounds), manipulate the world financial system and keep other populations poor and backward.

The Annihilation Of The Natives

They could capture these gold supply by the annihilation of native Red Indian population in America and Canada (Red Indians today are tourist attractions), killed the aborigines in Australia (and apologise now).

They re-invented slavery (in the 20th century again) and renamed it as apartheid which made native populations into slaves. They could, of course, truthfully claim that the great Anglo Saxon frontiersmen settled great, empty continents - in 'hostile conditions'.

The Creation Of Client Sates

Japan, Korea, Indonesia, Pakistan, Afghanistan, Iraq, Kuwait, most of South America - have been reduced to the situation of client states. Uncle Sam knows best - or else! These states have become production centres for the USA, cheap labour will be given an 'opportunity' to serve the 'master' states.

All these states also have significant military presence of the Anglo Saxon Bloc -which is a matter of concern for India.

The Alternate Model

The western model of (natural and people) exploitation has runs its course. It is a dead end model. Parts of this model, have been used successfully by other countries - Japan with its keiretsus and Koreans with their chaebol. But obviously, this is a model that the West is an expert in - and what others copy, the West has finished with. Copycat models allow the west to also predict the next steps easily and taken competitive actions with certainty. The answer for others is to create another country model. The only country which has tried this is India.

Gandhiji, Nehru, Narasimha Rao have renewed the Indian model - which is non-exploitative, stable and can bring equity and growth. It is this model that before others, India (and Indians) should believe in - and beat a modern path for the world to follow.

© with respective copyright holders. Copyright details embedded in the links.