Lets us defy West. Enough is enough.

Time to wage a war of Economic independence!

Tarique Khan Javed
President, overseas Pakistani Investors Forum
                                                                    

                                                                   Dated 7^th March 2012

Biggest economy of World- India:

Before the Britishers defeated us in the Battle of Plassey in 1757, India was doing fine. We were the Biggest Economy of the World with 30 pc share in World Economy, China was second with 28pc share, Indonesia 3rd with 14 pc and Brazil 4th with 10pc share. Rest of the World was quit poor.

India imported NOTHING from the World but exported substantial amount of Textile products to the Far East and Africa. We were the envy of the World. People from Poor Nations like the Arabs, Iranians, Turks and Europeans came looking for jobs and charity which we readily gave out generously. 

A unique feature of this economy was that it was a least governed, Lizzie fair economy with all industrial production based in home. The industrial produce of the time i.e. Textile were produced at home by the Ladies of the house in Town and Villages, contributing upto 30pc of house hold income. Every house had spinning machine or weaving machine and garments were produce by hand.

Karl Marx called this Asiatic Society.

Arrival of the Looters and Gun ships:

In 1600 Portuguese arrived with their Gun ships and blocked Indian Exports to Africa unless a fee was paid to them. As India had no Navy, Indian ships had no choice but to pay hefty amounts or risk sinking of their ships. Portuguese later established their Corporate Office at Goe from where they took part in some trade but mainly issued Cartels or papers indicating that the carrying ship has paid their dues in Goa, thus may not be harassed. 

The French and British followed and established Trading Posts. However they were annoyed to learn that Indians were not interested in any items they brought from Abroad nor they were keep exporting any item. They watched the huge Indian Economy with well established, Transport and Banking system, flourish in which they had no place. With lots of marketing efforts they were able to Export Indigo from Indian and sell some Silk from China.

Frustrated the British decided to occupy the wealthy Country and succeeded capturing Bihar, Bengal and Orissa after the Battle of Plassey. 

Efficient Tax machine and surpluses:

To make money to put up a very efficient tax collection system and imposed 80 pc tax on net profit in money terms, they imposed road taxes, they taxed Salt heavily and established a monopoly on its production and sale, similarly they taxed Indigo and also took control of its production and sale, they imposed heavy tax on Rum and Opium. By 1776, Revenue of British Bengal was 6 times that of Siraj-ud-Daulah in 1757.

The revenue of Pound 60 million  was such that after meeting all Local Civil and Military expenses they were able to send to England Pound 26 million, as Home Charges in the form of Grain. Essentially this was profit of East India Co. Besides that a substantial amount (Pound 10 million on averages) was sent home by the Britishers working in India, at upto 6 to 10 time’s salaries, of Indian doing the same job.

A “Zero Sum Game” and cost to Indians:

Some ones gain is some ones loss in this zero sum game. By 1793 when Permanent Settlement was granted 10 million Indians died in Famines in Bengal due to heavy and ever increasing Taxes which did not allow any savings for rainy day. People became too mal-nourished that any normal disease could kill them.

Famines of Bengal are the worst man made tragedies of recorded History.

After defeating the French, Britishers captured Madras. In Madras they introduced Ryotwari System to get rid of the middle man Zamindar. A DC started to deal directly with upto 150,000 small land holders, imposing as much tax as he wished. Any one refusing the unreasonable and un economic demand would loose his land and become a Laborers.

Taxes soared in Madras as well. But the cost that Indians paid was 5 million deaths by starvation while export of food grains to England continued unabated. The same story was repeated in Bombay when it came under British control.

Here too 5 million death followed imposition of killing taxes.

Besides the Land tax, the Britishers took away all the well paying jobs from Indians and also systematically destroyed the huge Textile industry. They shifted raw cotton to England to be made into thread and cloths on machines to re-exported back to India. This took away jobs of ladies of the household already suffering from lack of surplus from Land, lack of jobs for their male folk.

In all some 30 million Indians died to produce USD 8,000 billion surplus which was transferred to Britain making it the Richest Country of the World while Indian became the poorest Country by 1947. Same thing happened to China, Indonesia and Brazil.

Reversal of fortune:

This kind of reversal of fortune is not known in Human History. The cost paid by Civilized and less violent Nation was too much. Funny thing is that the conquerors were tiny Nations; if the subjugated Nations would have risen up they could easily kill all invaders. But they remained divided by race, religion, language etc as designed and 
Manipulated by the conquerors. Common interest of getting rid of the invaders was not seen as more important than minor differences among themselves. Thus the Invaders ruled with lot of ease.

After independence China and India were able to largely throw away much of the yoke of slavery from Europeans and follow independent Foreign and Economic polices.

Pakistan the weakest link in the Area:

However Pakistan failed to get out of Western slavery. USA took over the role of Britain and used Pakistan as its tool in the Region. Putting it first against India for its support to Communist Block then Soviet Union and finally against Al Qaeda and Taliban and other Islamic forces up against American imperialism. Pakistan was forced to support the invaders against the Nationalist forces in Suez Crisis, Gulf War etc. these days we are being forced to act against Iran and vote in favour of intervention in Syria while China and Russia veto.

Economic cost of enslavement:

·       I have explained above the process of direct extraction as was practiced by Colonial power in India, in the past, when they directly ruled the Countries.

·       I wish to emphasis the indirect exploitation in the form not allowing other Countries to sell in these markets which was practice during Colonial rule and still continues today. During the Colonial period all trains which were imported came from British Cos only. Similarly the large net work of irrigation canals and their gates and locks were only imported from UK. I think often the commercial interest of the British Cos and the commission they paid to Administrators was at the heart of proliferation of these projects not the interest of Indians. 

·       During my extended stay in the Gulf I noticed that most large contracts went to US or UK companies at very high rates. They often sub contracted these contracts to cos from other countries, after keeping a hefty margin for them self. American and nationals of some other pro US countries, working for Cos like ARAMCO were paid 3 times more salary compared to others. This was also practiced in India during Colonial Rule when a Local Judge was paid just Pound 150 pa, while an European Judge was paid Pound 3,000 pa. This helped expatriates send home Pound 10 million pa home on the average.

Moving back home and in recent time we see that:

1.    We are not at Liberty to import Gas from Iran although the pipeline has reached our border and we are facing huge gas shortages. USA is openly threatening us against any such move in recent days.

2.    We are not at liberty to move our Foreign Exchange Reserves from US Dollars or trade in any other Currency other than Dollars.

3.    A US prints more a more notes; USD 4000 billion since Nov 2008. It is value goes down against Yen and Swiss Franc making every thing expensive in USD. Thus transferring International Inflation created due to extra printing of USD into our Economy.

4.    If we had our reserve in Yen for instance, they would have remain stable. However keeping them in USD has reduced over USD 100 saving to 32 only between 1985 and now.

5.    Following the Plaza Accord in 1985, US abandoned Fixed Parity agreed in 1945 under Bretton Wood System according to which the parity between 1945 to 1985 was fixed at I USD= Yen 244. Now the market rate is 1 USD= Yen 76 or just 32% of its 1985 value. This is the main cause of International Inflation.

6.    In Yen terms prices are stable or falling. For instance the price of Oil in 1980s was around USD 35 per barrel these days it is around USD 105. If you divide 105 by 35 you get 3 or 1/3^rd  or in other words the Oil price in Yen is same now as it was in 1985.

7.    Thus in Yen terms there is no International Inflation while it terms of USD it is. Getting out of USD can protect us from International Inflation therefore very much a desired move.

Can we do it or not that is the big political question?

Yes, thanks ALLAH, we can do it now!

Unlike our Arab brothers we are in a better position get free of yoke, if democracy flourishes. Strong democratic practices like very large Public meetings in which the Imperialists are warned of dire consequences in case they dared to intervene is the most effective tool in fight against domination.

As has been happening these days in one after the other large meetings. Most important in which was PTI, JUI and Difa e Pakistan rallies in Karachi. Such show of force is the best shield against the Imperialist forces. Present Government can site these as barometer of Public sentiment and refuse to go against the wishes of people.

Our recent closure of NATO supply is a good omen in this regards. We were able to withstand US pressure for so long as the whole Nation stood together. We should know our strength and test it from time to time.

Decision to continue to trade with Iran despite US pressure is the next testing point.

Decision to flung open gate for trade with India is another land mark development and we should stick to it despite internal pressure from paid Agents like JUD and SSP.

When people of any Country become aware of cost of enslavement and rise up united, Imperialist forces withdraw from such places to concentrate energy on democratically less developed Countries like the Gulf State.

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