INDIA ECONOMIC
POWER ( KANAGSABHAPATI )
The Gross
Domestic Product (GDP) figures for India since
the beginning of the
Common Era (CE) are fortunately available and so it is possible to know the economic performance of India
with quantitative figures for at least
past 2000 years. Angus Maddison has provided these
details and so his works are invaluable today. ‘(At 0 CE )The total
GDP of the world at $102.5 billions and India was
the largest contributor to the
global GDP at that time · with $33.75 billions.
China was following India with
$26.82 billions. Africa's contribution was $7.01 billions, while
that of Japan was $1.2
billions. The GDP figures are
not available for other countries individually, as they
came into existence
in their conten1porary forms only in the
later centuries. It clearly illustrates the predominant position of India in the international
economy during 0 CE. India s share of world GDP
was 32.9 per cent
and she alone was contributing
almost one-third of the global GDP,
India and China
together were contributing 59.1 per
cent to the global economy while the
other countries in Asia were contributing 16.1 per cent,
The total
contribution of Asia including Japan was
76.3 per cent.
This is very vivid when western Europe was at 10.8 per
cent, Africa's contribution
was 6.8
per cent. Even when compared with
China, India's GDP was more
than 125 per cent.
Agriculture and Food Production
In 6000 BCE, Mehrgarh, one of India's most ancient
settlements, had "a veritable agricultural economy solidly established." ( Jean-Francois Jarriger, the French excavator ) t Indians cultivated wheat, barley, peas, date palms
and cotton, among
other items, more than 4500 years ago. The earliest sample of cotton
cloth discovered in India was in the ruins of Harappa
around 5000 years ago.
Rice cultivation in India goes
back to 4300 years and so was
cultivating different varieties of cereals, cotton and
other items which was at
least a two or three thousand years ago
The Greek historian
Megasthenese, 2300 years ago from
now, had noted: "The
greater part of the soil is under
irrigation, and, consequently,
bears two crops in a year[7]."
Siculus had noted: "India bas many mountains which abound
in fruit trees of every kind,
and many vast plains of great fertility, which are
remarkable for their beauty
and are supplied with
water by a multitude of rivers.
The greater part of the soils, moreover,
is well watered and bears two crops in
the course of a
year.... In addition to the
cereals, there grows throughout India much millet,
which is kept well-watered by
the profusion of river streams, and
much pulse of superior quality, and rice also... as well
as many other plants useful for food, of which most are native to the country. The soils yield,
moreover, a few other edible fruits fit
for the subsistence of animals..."
The knowledge in
agriculture, equipped Indians
to develop superior techniques and
more productive tools for more
production on consistent basis. ''The
Hindoos have been long in possession of one of the most
beautiful and useful inventions in agriculture. This is the Drill Plough. This instrument has
been in use
from the remotest times in India." ( major General ……., 1820) But it is said
to have been first used
in Europe much later in 1662. "Its first
introduction in England dates to 1730. But it took perhaps another 50 years before it
was used on any scale"
Indian farmers used compost and organic
manure which ensured farming on
the same land for more than 2000 years
without a drop in yields. Some said that
Indian farmers are 'professors' and "decided that he could not do better than watch their operations ( Albert Howard ). He
admitted that from them, he learnt
growing healthy crops free from diseases, without the slightest help from artificial manures or
insecticides.
It
is noteworthy that there was neither
famine nor scarcity of food
in ancient India.
Water bodies:
"The
whole of South India is dotted with tanks. A British
expert writing in the
1850's estimated that the total
number of such tanks
in the Madras
Presidency to be over 50,000. Another estimate
indicated that in the
eighteenth century, there
were more than
38,000 tanks in the
region that later
constituted the Mysore
State.
South
India. In this relatively difficult region, and in that
period of extended war and
great disturbance, average productivity
of ]and was near 2.5 tons per
hectare. Even more strikingly,
the JocalitjeH of relatively intensive agriculture, that covered
about a sixth of the cultivated land,
produced as much
as 5 tons
per hectare on
the average. Per capita
production of food grains in
this region, covering about 45,000
households, was nearly a
ton per year.
This is five times
the production per capita
in India of todayl ." ('Cambridge Encyclopedia of India, Pakistan, Bangladesh and Srilanka', 1989.
Industry
India was
an industrial and a
manufacturing country from the
very beginning and different types of
industries, from the highly
specialized ones, to the most ordinary existed.. "It
may be a surprise even to an Indian
today to be told that in the ancient world, India was
in the forefront
in the field of shipbuilding. Her ships
flying Indian flags, sailed up
and down the Arabian sea, the Indian
Ocean and far beyond.
Her master-mariners led the way in
navigation. Riverine traffic within the country, shipping
along the entire length of India's coastline and on high seas, were brisk until
as recently as the days of the
East India Company." Archeologist Chhabra ) There were different sizes of industries as per
Basham. "Though the basis of ancient Indian industry was at all
times the individual craftsman, aided chiefly by
members of his own family, larger
manufactories, worked chiefly by
hired labour, were by no
means unknown. Not only did the
Mauryan state own spinning and
weaving workshops, but also shops
for the manufacture of
weapons and other
military supplies, employing
salaried craftsmen. The larger
mines were also
owned and worked by the state. But
though the economic
order approximated to a sort of
state socialism in the time of the Mauryas, it always left scope for the individual producer and
distributor. We read here and
there of private producers who had
far transcended the status of the small home craftsman, and who manufactured on a larger scale
for a wide market. Thus an
early Jaina text tells
of a wealthy potter named Saddalaputta
who owned 500 potters' workshops, and
a fleet of
boats which distributed
his wares throughout the Ganges valley; there
a few other references, which
confirm that large scale
production for a wide
market was not unknown in
ancient India, though such industrialists as Saddalaputta were no
doubt comparatively rare." This is corroborated by The Arthashastra, written about
2300 years ago, where the responsibilities of
the heads of
various departments of industries.
India
thus was globally well known
for her manufacturing who
had : "India is as
much a manufacturing country as agricultural, her manufactures of various descriptions have existed
for ages, and have
never faced competition from any nation,
whenever fair chance has
been given to
them." (Montgomery Martin, 1840)
"A large proportion of
the Indian population was engaged in various industries up to the first decade of the 19th century. Weaving was still
national industry of the people; millions of women eked out
their family income and
their earnings from spinning. Dyeing, tanning and
working in metals also gave employment to millions." ( British Historian
Agarwala ) .
India’s share in world manufacturing was close to mammoth
one-fourth of the
global output.
India was 24.5
‘This
means India's share of global manufacturing was more
than that of Europe as a
whole, and was
next only to China.
India and China
together contributed 57.3
per cent of the global manufacturing output. Among the western nations, the share of
the United Kingdom
was only 1.9
per cent, while
France contributed 4 per cent.
The share of Japan, that emerged as an industrial power
later, was 3.8 per cent. It is important
to note that the Third
World countries were contributing 73 per
cent of the global output during the middle
of the eighteenth century.’(
Kanagsabhapati)
Trade
Trade
was considered the third most
important activity after agriculture and
industry in ancient India. "In South Indian
ethos, trade is recognized as one of the
most important economic activities after agriculture and crafts, which also
signifies the sequence in which
the economy diversifies into more
specialized activities beyond subsistence." (Mukund) There was
a vast network of trade 5300 years
ago: "Even some 53 centuries
ago,
the people
were linked in a vast trade
network, much of Harappa’s trade
undoubtedly travelled along the Ravi river,
eventually reaching the Indus. And some surely went by
that main stream
river to Mohenjodaro,
Harappa's sister city some 400 miles to the south. Traders from the
north waited to present turquoise and lapis lazuli to a Harappan merchant weighing beads."
( Agarwala ) Trade was not just within India but was in far and wide
countries.with their command on sea routes. "The history of India's trade and commerce goes back to the
Phoenician times when spices, ivory, silks, fine cottons and precious stones were carried out.” Pliny’s quote “…:…the
love of gain brought the Roman Empire nearer India, his lamentation for the drainage of huge wealth to India to
meet the affiuent Romans' demand
for luxuries, the descriptive geography of the voyages and the Indian coasts in
the Periplus of the Erythraean Sea and the
mention of a Temple of Augustus
at Muziris (Cranganore, Kerala) in the Tabula Peutangariana spoke for
themselves." ( )
(Kangsabhapati )
"In
ancient times both the internal and
external trade were at their
peak. The trade in textiles was very (common ) . Sllks were imported
from China, and from Central Asia came pearls and very fine wool. India mainly
exported cotton cloth. The articles of export and import consisted of
seashells, areca nut,. sandalwood, gold, silver,
pearls, precious stones and coral.
, "...India
had a massive balance of
trade surplus with Europe
and some
with West Asia, based
mostly on its more efficient low-cost cotton textile
production and also of course
on pepper for export. These went
westward to Africa, West Asia,
Europe, and from there
on across the Atlantic to the Caribbean
and the Americas... . In
return, India received massive amounts of silver and
some gold from the
West, directly around the Cape
or via West Asia, as well as from West Asia itself." ( Historian
Frankeel …)
India was the
economic centre of the Indian Ocean
region during this period. "The geographical and economic centre of this Indian Ocean
world was the
Indian subcontinent itself.
Much of it was highly developed and already dominant in the world textile industry before the
Mughal conquest." (….)
India was a pioneer in developing new tools
and technologies since the
ancient days, when no country
had any
idea of them. Not only Agricultural efficiency was world class but even
in Industrial production was at very high level. "…..ancient India
not only had business forms that easily met
the notion of
a contracting entity, but also
had business forms that went
considerably further with
many features that are common
to more recent organizational
forms such as corporations." ( Khanna )
India was among the three economic powers of the world even
before beginning of the Common era is sure as per several records.
It
is notable that specialized industrial
and technical education
was offered in
the ancient periods including
things like the school
of sculpture. Thus the
development of the
education system led to economic prosperity of
the country. "Ancient Indian literature ... does
not furnish much evidence
on the subject
of industrial and technical
education, though it is
upon the basis
of such education that ancient India was
able to build
up her own economic life and prosperity, and figured in the
ancient world as the chief
exporting country..." (Mookerjee) The artisans and
the guilds ensured that various kinds of skill training units worked as schools
for imparting necessary skills to
the entrants. ''While the house
of artisans functioned as
the school for imparting education in the particular craft..., the collective
interests of craft as a whole in a
particular area or region were administered by an organization like a guild... The guilds
were of various kinds like the
crafts and were like
so many industrial schools."
(…….)
What
is significant is that literacy levels were
reported to be highest in
the world during the
eighteenth century in spite of continuous invasions from foreign
lands in the later centuries,. "Literacy was widespread; it was probably as high as 75 per
cent at the beginning of the 18th
century. In the contemporary world, no
other country had
such a high percentage of literate population." ( Makkhan Lal ) In the
nineteenth century, the British conducted studies on the prevailing indigenous educational system in
the Bombay Presidency during 1820-1830 and
the Madras Presidency during
1823-1826.
A semi official survey was also conducted in the Presidency of Bengal ten years later by a former missionary W. Adam, whose findings were published in 1835. ‘Mahatma Gandhi noted that the education system in India before the arrival of the British was like a "beautiful tree". Later, the noted Gandhian, Dharampal took upon himself the responsibility of studying the Indian education system from the archival materials. He published his works under the title 'The Beautiful Tree.' In his work, Dharampal writes on the Adam's report: "In his first report which is a general statement of the situation and a presentation of the data which he could derive from post-1800 official and other sources, W. Adam came to the conclusionfirstly, that every village had at least one school and in all probability in Bengal and Bihar with 1,50,748 villages based on details, Dharampal mentions that the education system in India in 1800 was much better than that of the British. He also notes that the Indian method of school teaching that prevailed here for centuries had helped the introduction of popular education in England. To quote: "According. to this hard data, in terms of content and proportion of those attending institutional school education, he. situation in India in 1800 (and it should be remembered that. It IS a greatly damaged and disorganized India that one IS referring to) does not in any sense look inferior to what obtained in England then; and in many respects Indian schooling.’ ( Kanagsabhapati)
|
‘Archaeologists
also found a 'ruler' made
with lines drawn precisely 6.7 millimeters apart, with an astonishing
level of accuracy. The
'Indus inch' was
a measure in
consistent use throughout the
area. The Harappans also invented
kiln-fired bricks, less permeable
to rain and floodwater than the mud bricks used by other civilizations of the
time. The bricks contained no
straw or other binding material and · so turned out to be
usable 5,000 years later when a British contractor dug them up
to construct a railway line
between Multan and Lahore.
And while they were made in 15 different sizes, . the Harappan bricks were amazingly consistent: their length, width and thickness were invariably in the ratio of 4:2:1." (Kangsabhapati,
……. )
“….the Arab world in 773 AD with
the diplomatic mission set .by the Hindu ruler of
Sind to the court of the Caliph
AI-Man ur..1lus .gave rise to
the famous Anrithmetical text
of Al-Khwnnznu , written around
820 AD, which contains a
detailed exposition. of Indian mathematics, in particular the usefulness of the zero. Wtth
Islannc civilization's
rise and spread, knowledge of Indian
mathematics reached as far
afield as Central Asia,
North Africa and
Spain.
In serving . as
a conduit for
incoming ideas and
catalyst for influencing
others, Teresi adds,
India played a pivotal
role"
( Kanagsabhapati,……..)
It is said that Sushruta defined the
function of the heart at very remote past i.e. almost 2600 years ago, something which in the west
was done only 300-400 years back. It is also now proved that Sushruta conducted surgeries even in
those days.
The Indian Sciences had great understanding of time
as well. A chaturyuga
or cycle of four ages
in the ancient
Indian system, is
supposed to be of
43,20,000 years, which is almost exactly same as the age of the earth.
Aryabhata I gave the accurate value of Pi and suggested that the earth is a sphere. India was also far
more superior in metallurgy, smelting of
metals and derivation of alloys
since 3000 BCE and steel
was exported to Europe, China,
Middle East from South India. British records are replete with eveidences that it continued
till the eighteenth century,
when there were more than 20,000 furnaces operating in India. This innovative and winning mindset
in Science, Technology, Medicine, Trade and Life as a whole ushered to us a
golden era of economic superiority.
Ethics
in Economics
There was always an ethical strain in all
Indian activities including Economics.in ancient India. The objective of Indian
agriculture was not just high productivity or production but
making each one happy and no one left unfed. And therefore the ideas like
sharing of food, considering eating as yajna and so on. "Another striking feature of the Chengalpattu in
ormation is the extensive sharing of the produce that
was practised then.
…and sharing of food
was insisted as the
essential condition of
dhanna, the noblest
ideal in life……
The next point
is that the discipline of taking care encompassed not only
human beings, but also animals,
birds, insects and all
aspects of nature. The rulers in
those days saw to
it that those who
traversed through their lands were
provided with food. In
this connection, it is worth reading the extracts of the letter written by the Sarfojee
Maharaja of Thanjavur (in Tamil
Nadu) in 1801 on the
arrangements made regarding food
in Chatrams.* "All travellers...,
pilgrims of every description ... are
fed with boiled rice;
those who do not
choose to eat the
boiled rice receive it
unboiled with spices etc. These
distributions continue till midnight when a bell
is rung and proclamation
made requiring all those who
have not been
fed to appear and take
the rice prepared
for them"
(……………….)
While
discussing the structure of business in
ancient India,
We had higher ideals, even when making
money was the objective. … "Thus the
ideals of ancient India, while
not perhaps the same as those of the acquisitive West, by no means excluded money-making. India had not
only a class
of luxury-loving and
pleasure-seeking dilettanti, but
also one of wealth-seeking
merchants and prosperous craftsmen,
who,
though less
respected than the brahmans and warriors, were honoured in society."
Wealth creation was encouraged in the ancient
society alongwith higher principles. Thirukkural says about the 'means
of wealth'. In one of the couplets he
said: "For those who earn wealth in abundance through right means, virtue
and happiness follow."
Same is said by the Upanishads, Gita and all Bhakti literarture.
The
Jainese texts advised 'to
follow truthful and peaceful means of earning wealth.' "A large
number of traders in western India
during the eleventh thirteenth centuries
were Jainas. They were exhorted
by their
teachers and
preachers to follow truthful and
peaceful means of earning wealth.
(Jinesvara Suri in eleventh century),
Satsthanakaprakarana, gives a code of conduct which a merchant was expected to follow.
Government and Business
"Along with the
family-run business and individually owned
business enterprises ancient India possessed a number of other forms of engaging in business or collective
activity, including the gana, pani, puga, vrata,
samgha, nigama, and
srenil."
There were codes of conduct and general rules
regulating businesses, though
many times they can be written as well as oral. These rules were upheld even by
kings.
“These
rules, called sreni dharma, could cover
a number of topics including production practices, prices, quality
controls and so forth."
Evidences
show that travelers, merchants, and in
general all were taken good care of. “Those
who travelled were not
allowed to suffer any expenses,
including towards carriage of their merchandise. \\'hile explaining the condition of India under the native
rulers, Naoroji makes
the following observations
collected from different sources. These observations
explain the responsibilities of the
Government and the society
with regard to all travellers,
including those with merchandise, in Bengal.” To
quote: "The traveller,
either with or without merchandise, becomes the
immediate care of
the Government, which
allots him guards, without any expense, to conduct him from stage to stage; and these are
accountable for the safety
and accommodation of his person and effects. At the end of
the first stage he is delivered over, with certain
benevolent formalities, to
the guards of
the next, who,
after interrogating the traveller
as to the usage
he had received in
his journey, dismissed the first
guard with a written certificate of
their behaviour and a receipt for the traveller and his
effects, which certificate
and receipt are returnable to the commanding officer of the
first stage, who registers the
same and regularly reports it to the Rajah. In this form
the traveller is passed through
the country; and if he only
passes he is not
suffered to be at any expense
for food, accommodation, or carriage for
his merchandise or baggage; but it is
otherwise if he is permitted to
make any residence in
one place above three days, unless occasioned by sickness, or
any unavoidable accident. If anything is
lost in this district, for instance a
bag of money or other valuables, the person
who finds it hangs it on the next
tree, and gives notice to the
nearest chowkey, or place of guard; the
officer of which
orders immediate publication of
the same by beat of tomtom, or drum."
The
government followed policy of
facilitation and minimum interference except when it was necessary to intervene
to ensure justice for all. Basic norms
in the interests of the society were set. Any exploitation by the
merchants and traders was considered a serious and punishable offence. "The
testimony
of Megasthenes, corroborated
by the Arthashastra, shows that
in Mauryan times, prices were regulated by market officials. The latter text
suggests that, as a further effort
at maintaining a just price,
government officers should
buy on.the open market when any staple commodity was cheap and
plentiful, and release stocks
from government stores when it was
in short supply, thus bringing down
the price and
making a profit…”
The people
of the town were 'noteworthy
for their excellence of justice, for keeping up their contracts,
and for the beauty of their character', and the people of the region practiced truth and
abhorred falsehood. ‘Marco Polo bestows yet more generous praise on
the merchants of Lata, whom by a
curious mistake he calls Abraiaman or brahmanas. He says,
'you must know
that these Abraiaman are the
best merchants in the world, and
the most
truthful, for they would not tell a lie for anything on earth,' and 'if a foreign merchant who does not know the ways of the
country applies to them and
entrusts his goods to him, they will
take charge of these, and
sell them in the most loyal manner, seeking zealously the profit
of the foreigner and asking o commission .except what
he pleases to bestow. These observations of. the foreign
travellers may reflect the
general ethos of the
mercantile community in western
India."
It was all governed by an expanded ego, selfless attitude, a
fair chance for all and universal, humanitarian
approach guided the
lives of all
people in all
their activities in life. Even in warfare this was
followed. "...our overall impression is that in no other part of the ancient world
were the relations of man and
man, and of man and
the state, so
fair and humane. In
no other early civilization were
slaves so few in number, and in no
other ancient law book are their rights
so well
protected as in the ' Arthasastra' ... In
all her history of warfare, Hindu
India has few tales to tell
of cities put to the sword
or of the massacre of non-combatants... To us
the most striking feature of
ancient Indian civilization is its humanity." (Basham )
A spiritual orientation governed all the activities of the society.
"from the sixteenth to
the nineteenth century, commercial policy was dominated by mercantilist assumptions. In England and
in continental Europe, it was taken for
granted that international
competition was beggar-your-neighbour
proposition." ( Maddison )
Agarwalal notes: "The
first Portuguese vessel appeared in
the Indian water at the end of
the fifteenth century and, within a short time, the concept of a new type of a colonial empire, the like
of which Asia had
not experienced in her
recorded history before, was manifested."
Source: Maddison, Angus, The World Economy-A Millennia/ Perspective, 1st
Indian Ed., Overseas Press (India) Private Limited, New Delhi, 2003, p. 261.
While
till 1820 since several centuries India had maintained her Top position in
world economy. However, in the next 130 years, India maintained top slots but
then nearly 75 per cent of her economic
worth was wiped out.
In just 250 years about 83 per cent
of India's economy got mercilessly killed.
Industry
"Moghul India had
a bigger industry
than any other country which became a European colony, and was
unique in being an industrial exporter in pre-colonial era and most of this industry was destroyed
as a consequence of Bntish rule.
''It had been the
settled policy of England in
India ever since
rise in political power, to
convert India into a land of raw produce for
the benefit of the manufacturers
and operatives of England ."
‘The steepest decline had occurred in just 50 years, between
1830 and 1880, with a decline of more
than five times. Overall
in just 150 years, the share
of India had come down from 24.5 per cent to 1.7 per cent, a
decline of more than 13 times. In the case of China too, there was a decline; but the proportion was many times less. Resultantly, the premier status of the
Third World as the dominant player in manufacturing came to an end. During the same
time the share of UK went up from 1.9 to 18.5 per cent,
nearly nine times an increase in 150 years.
The steepest increase was from
1830 to 1860, with a rise of more than 100 per cent.’
"India in the
eighteenth century was a
great manufacturing as well as a great
agricultural country, and
the products of the
Indian loom supplied the markets. of Asia and of
Europe. It is, unfortunately, true that the East India Company and
British Parliament following the
selfish commercial. policy of a hundred
years ago, discouraged Indian manufacturers
In the early years of British rule in order
to encourage the rising
manufacturers of England. Their fixed
policy, pursued during the
last decades of the eighteenth century and the first decades of
the ni et enth, was to make India subservient to the
industries of Great Britain
|
(Romesh
Dutt's monumental work, "The Economic
History of India'J)
….."employed the
arm of political injustice to keep down and
ultimately strangle a competitor with
whom he could not
have contended on equal termsl93l."
"Weavers, also, upon their inability to perform such agreements as have
been forced upon
them by the
Company's agents, universally known
in Bengal by the
name of Mutchulcahs, have had therr goods seized and
sold on the spot to make
good the deficiency; and the
winders of raw silk, called
Nagoads, have
been treated also with such
injustice, that instances have
been known of their cutting off thumbs to
prevent their being forced
to wind l941." (Dutt)
"By the end of
the 19th
century, however, most of
the indigenous industries of India had
either decayed beyond recovery or
were on the
road to ultimate ruin, while
the modern industry was
yet to reach
considerable proportionsl951."
The destruction of the industries forced these
people to go to rural areas in search of jobs breaking up
of the 'harmony
and balance that existed between agriculture and
industry' resulting in overload on
agriculture.
Historian
Bipan Chandral writes: "The
Indian leaders maintained that
this disruption of the
balance between the
agriculture and industrial
sectors of the economy and
the consequent industrial
depression
not only destroyed a
very important source of
national income but also deprived millions
of workers of their traditional
occupations and forced them to
fall back, in
the absence of
other avenues of employment, more
and more upon
agricultu1·e, the one
rema ning source of subsistence in sight. Thus the decadence
of handiCraft industries produced an
increasing pressure of population on land. The result was the
increasing ruralization of the country and dependence of the people
of India upon 'the
single and precarious' resources of agriculture."
Decline in production and productivity
The abundant agricultural production and
the historical levels of productivity achieved by India declined with the large-scale interference from
the state. Bajaj and
Srinivas[IOI] note: "The abundance of food
began to turn into a state of acute
scarcity within decades of the onset of British rule. As the British began to
dismantle the elaborate arrangements
of the
Indian society and began to
extract unprecedented amounts of revenue from
the produce of lands, vast areas began to fall out of cultivation and the
productivity of lands began to
decline precipitously. In the Chengalpattu region
where the lands had yielded at
least 2.5 tons of paddy per
hectare on an erage i he 1
60's, and where
average yields according to the
Bntish ad Inist.rabve records had
remained around that figure up to 1788 In
spite
of the devastating wars of the
period productivity hd d clined .to a
mere 630 kg
per hectare by 1798.':
tax in Madras. "In Madras, the
land tax first
imposed by the East India
Company was one-half the gross produce of the land."
Dutt1104l noted:"... the land
tax levied by the British Government is not only excessive, but what is worse, it is fluctuating and uncertain in many provinces." While
in England, the
land tax was
between 5 and
20
per cent of the rental, "in Bengal the
land tax was fixed at
over
90
per cent of the rental, and
in Northern India at over 80 per cent of the rental between 1793 and
1822. It is true
that the British Government only
followed the precedent
of the previous Mahomedan rulers, who also
claimed an enormous land tax. But the difference was that what
the Mahomedan rulers claimed
they could never fully
realize; what the British rulers claimed
they realized with rigour. The
last Mahomedan ruler of Bengal,
in the last
year of his administration
(1764), realised a
land revenue of £817,553; within thirty years the British rulers realized a
land revenue of £2,680,000
in the
same Provincel105l."
The
authorities never thought of reducing
the land taxes even in times of great difficulties. They rather used all
coercive methods to collect more taxes than compared to the previous years
and rejoiced when they
succeeded in doing
it. Warren Hastings had
proudly written the
following lines to the
Court of Directors in
1772. This was after the
death of one-third of population
of Bengal, or about ten millions of
people due to
famine, and a
third of the
lands returning to waste. "Notwithstanding the loss of at least one-third of the inhabitants of the province,
and the consequent decrease of the cultivation the net
collections of the year
1771 exceeded even those of
1768.... It was naturally to be expected that
the diminution of the revenue
should have kept an equal pace with
the other consequences of so great
a calamity. That it did not was
owing to its being violently kept up to its
former standard [lOG]." Dharampal has found that for long periods in the
late 18th and
the 19th centuries, the tax
on land in
many areas, exceeded ·the total
agricultural production of very fertile
land. The consequences of the
policy were easy to predict; in
the Madras Presidency, one-third
of the most fertile land
went out of cultivation bet\veen the
periods 1800 and 185011071.
One of the British Indian
administrators, John Shore, had
recorded his observations on the
issue of tax in the following
"ords: "They have been
taxed to the
utmost limit; every
successive province, as it has
fallen into our possession, has been made a field for
higher exaction; and it has always been our boast how greatly we have
raised the revenue above
that which the
native rulers were able
to extortIlOB]."
".1 know it is
said in the missionary meetings that we conquered
India to raise the level of the Indians.
That is cant. We conquered India as an
outlet for the goods of Great Britain. We conquered India
by the sword, and by
the sword we shall hold itl1141."
India's
prominent top position as exporting nation took a reverse turn during the British period. Bipan Chandral Pal wrote
"The composition of India's imports
and exports also underwent radical transformation during
the 19th century. While prior
to 1813, and ever
since remote antiquity, India had primarily been an
exporter of manufactures and importer of precious metals and luxury products, it gradually became, particularly after 1858, an
exporter largely of agricultural raw
materials and food
grains and importer of
manufactured products. Cotton and
silk textiles and other traditional staples of export were
gradually replaced by a variety of agricultural products, chief of them being
raw cotton and
jute, tea and
coffee, opium, oil seeds, and
wheat and rice, the
last two constituting nearly 17
and 26 per cent
of the total
exports in 1881-82 and
1904-05 respectively. Among the
imports, cotton yarns and cloth,
metals, machinery, sugar and oil
began to predominate, cotton products alone constituting nearly 24 and 39 per cent
of the total imports in 1881-82
and 1904-05 respectively."
"In 1815, the
cotton goods exported from India
were of the value
of
£100,000. In 1815, the
cotton goods imported
into India from England were only
of the value of £26,300
but by 1832 they
were over £400,000. The consequence was the
decline of India's manufacture.
The manufacture of silk and
cotton goods had declined, and the
people who used
to export these goods
to the markets of Europe and
Asia in previous centuries now
began to import them. India
was reduced from the
state of a manufacturing nation
to that of an agricultural country." (Agarwala ) "After 1813,
imports of cotton fabrics into India rose
spectacularly, from 1
million yards (1814) to 51 million
(1830) to 995 million
(1870), driving out many of the
traditional domestic producers
in the
process." ( Kennedy )
Agarwala quotes the evidence in
the Common's Report to
Stress how there was systematic elimination of the Indian manufacturers. "In the
early years of the 19th
century while the Company's trade
averaged £1,882,718 annually,
private trade averaged 5,451,452 per year. The
process of the elimination of
Indian manufactures went on,
however under the new arrangement. In 1813,
Calcutta exported to London £2
million worth of cotton
goods, …….”
".1 know it is said in the
missionary meetings that we conquered India to raise the level of the Indians. That is
cant. We conquered India as an
outlet for the goods of Great Britain. We conquered India
by the sword, and by
the sword we shall hold itl1141." India's long held position
as a significant exporting nation took a reverse turn during the British period. Bipan Chandral 115l writes: "The composition of India's imports and exports also
underwent radical transformation during the 19th century. While prior
to 1813, and ever
since remote antiquity, India
had primarily been an
exporter of manufactures and importer of precious metals and luxury products, it gradually became, particularly after 1858, an
exporter largely of agricultural raw
materials and food
grains and importer of
manufactured products. Cotton and
silk textiles and other traditional staples of export were
gradually replaced by a variety of agricultural products, chief of them being
raw cotton and
jute, tea and
coffee, opium, oil seeds, and
wheat and rice, the
last two constituting nearly 17
and
26 per
cent of the
total exports in
1881-82 and 1904-05
respectively.
Among the imports, cotton yarns and
cloth, metals, machinery, sugar and
oil began to
predominate, cotton products
alone constituting nearly 24 and 39 per cent
of the total imports in
1881-82
and 1904-05 respectively."
India
became an importer in less
than two decades in the
case of cotton textiles shows Agarwala :. "In 1815,
the cotton goods exported from
India were of the
value of £100,000. In 1815,
the cotton goods
imported into India
from England w·ere
only of the value
of £26,300 but by 1832
they were over £400,000. The
consequence was the decline of India's manufacture. The
manufacture of silk
and cotton goods
had declined, and the people
who used to
export these goods to the
markets of Europe and Asia
in previous centuries now
began to import them. India was reduced from
the state of a manufacturing nation to that of an
agricultural country."
Kennedyl
shows how domestic producers were driven
out of business after 1813 ‘due
to free imports of cotton
fabrics.’ To quote him: "After 1813,
imports of cotton fabrics into India rose
spectacularly, from 1
million yards (1814) to 51 million
(1830) to 995 million
(1870), driving out many of
the traditional domestic producers in the
process."
"In the
early years of the 19th
century while the Company's trade averaged £1,882,718
annually, private trade averaged 5,451,452
per year. The process of the elimination of Indian manufactures
went on, however under
the new arrangement.
In 1813, Calcutta exported to London
£2 million worth
of cotton goods, hut
in 1830……” ( Agarwala )
"The export to America
declined from 13,633 a es In 1801 to
258 bales in
1829; to Denmark
from 1457,..,
bales to_ 1000, to
1500
bales after 1820· and to Portugal
from 9 '14 bales In 1799 to
1000
bales after 1825.' The export to the Arabian and Persian Gulf,
which
rose to between 4000 and 7000 bales between 1810 and 1820, never exceeded 2000
after 1825[ ]."
The
Government to add to this devastation exported food grains which resulted in the starvation of people. "The
nationalists believed that
export of food grains was a cause of poverty and famine because India sent out not its
surplus of foodgrains but the stock
which was required to meet
its daily needs;
in reality, Indians
were half-starved in order
to make possible
the trade in
their foodstuffs" (
Bipin Chandra )
Economic Drain
"Unrighteous, despotic, plundering,
unnatural, destructive, were some
of the adjectives he applied
to the British policy which, in his opinion, was leading to the draining of 'the life blood'
of India and its wealth." Roared Dadabhai Nowroji
Nowroji : as he said : "drain as marking
the difference between the rulers of India in the past
and the British, for under
the former there was no drain of wealth from the country. The
wealth of the people remained within the country and
was spent inside it.
Individual citizens might suffer but
the country as a whole did not lose; the
loss of one citizen became the gain
of another. The British, on
the other hand, took wealth out of the country and spent it abroad" How much was the amount
of this drain? It was really fatal as observed by Justice Ranade in 1872
speech: "of the national income of
India more than one-third was taken
away be
the British in some
form or
other."
‘Dadabhai took lot of pains
to calculate the economic drain of India, meticulously gathering
details from the government sources. He devoted
a major part of
his later life on
this single issue, educating different sections and compelling
the authorities to stop the drain. He calculated the drain during 1835 to 1872, giving allowances for their 'profits' and 'interest on investments', ‘ ( Kanagsabhapati ) :"strictly speaking
£200,000,000 should be considered as a drain· from the
very produce of the
country...."
Dadabhai said:”The grinding extortion
of the English
Government … effected
the impoverishment of
the country and people to an
extent almost unparalleled."
The result was that
the lives of Indians had
become miserable and they had
started to make appeals to government for their needs,
as the very
fabric of the society was
destroyed . Frederick John Shorel136l expressed the views of the people through the following
sentences. To quote: "But
because the Indians are in the
present day so far behind
us in arts and sciences,
we are not justified in
concluding that they are not
capable of improvement were circumstances favourable to them.
Complaints are made that whatever is to be done, an appeal is made to Government-a road, a school,
a charitable institution
everything must be done
by Government! How can it be otherwise?
In England, where so much wealth is
possessed by the community, diffused
over all classes, and where there are local authorities to superintend them, the greatest improvements are planned
and executed by private individuals; but in India, where the Government grasps at everything and leaves the people only a
bare subsistence, having destroyed
almost every local authority which formerly
existed, and where
the interests, that is, the immediate interests, of the rulers
are very different from those of the
governed, the people have a right
to expect that some small part of what is taken from them shall be expended
on their benefit."
Same was mentioned by Saville Marriot,
one of the
Commissioner's of Revenue in Deccan, in 1836
"It will be difficult to satisfy
the mind that any country
could bear such a
drain upon its resources without sustaining very serious injury. And the
writer entertains the fullest conviction
that investigation would effectively
establish the truth of the proposition as applicable to India. He has
himself most painfully witnessed it in those parts of the country with which he was connected, and he has every
reason to believe
that the same evil
exists, with but
slight modification, throughout
our eastern Empire."
The drain had
affected the whole country and people were getting poorer. Sir JohnLawrence,
testifying as late
as 1864 about the situation,
noted:
….……………………..
." The authorities took all steps to kill competition. They even
took the extreme step
of cutting off the thumbs of
weavers, the very thumbs that were respected throughout the world
for centuries for the
highest quality of work.
Dutt had written on this:
"Weavers, also, upon their
inability to perform such
agreements as have been
forced upon them by
the Company's agents,
universally known in Bengal
by the name of Mutchulcahs,
have had therr goods seized and
sold on the spot to make
good the deficiency; and the
winders of raw silk, called
Nagoads, have
been treated also with such
injustice, that instances have
been known of their cutting off thumbs to
prevent their being forced
to wind
Since 1941."
This was
the most cruel and inhuman method
of preventing
Manufacturing and
to kill competition from an
enslaved nation.
"By
the end
of the 19th century, however, most
of
the indigenous industries of India had
either decayed beyond recovery or
were on the
road to ultimate ruin, while
the modern industry was
yet to reach
considerable proportions
l951."
The 'harmony
and balance that existed between agriculture and
industry' which existed since ages was broken by this as more and more
population ahd to go back to agriculture and then there was less land and less
production for more people to be fed.
Historian
Bipin Chandra wrote in 1961:
"The Indian leaders maintained
that this disruption of the balance between
the agriculture and
industrial sectors of the economy
and the consequent
industrial depression not
only destroyed a very
important source of national income but
also deprived millions of workers of their
traditional occupations and
forced them to
fall back, in
the absence of other avenues of employment, more
and more upon
agricultu1·e, the one
rema ning source of subsistence in sight. Thus the decadence
of handiCraft industries produced an
increasing pressure of population on land. The result was the
increasing ruralization of the country and dependence of the people
of India upon 'the
single and precarious' resources of agriculture."
……………………
"In Madras, the
land tax first
imposed by the East India
Company was one-half the gross produce of the land."
Dutt1104l noted:"... the land
tax levied by the British Government is not only excessive, but what is worse, it is fluctuating and uncertain in many provinces."
(While in
England, the land
tax was between
5 and
20
per cent of the rental,) "in Bengal the
land tax was fixed at
over 90 per cent of the rental, and
in Northern India at over 80 per cent of the rental between 1793 and
1822. It is true
that the British Government only
followed the precedent
of the previous Mahomedan rulers, who also
claimed an enormous land tax. But the difference was that what
the Mahomedan rulers claimed they could never
fully realize; what the
British rulers claimed they
realized with rigour. The last
Mahomedan ruler of Bengal, in the last
year of his administration
(1764), realized a
land revenue of £817,553; within thirty years the British rulers realized a
land revenue of £2,680,000
in the
same Province."
The
authorities had such a atrocious attitude that they did not reduce the land tax
even in most difficult times and resorted to more coercive methods to collect more taxes than
compared to the previous yearsand celebrated this ‘success’.
‘Warren Hastings had
proudly written the
following lines to the
Court of Directors in
1772. This was after the
death of one-third of population
of Bengal, or about ten millions of
people due to
famine, and a
third of the
lands returning to waste. "Notwithstanding the loss of at least one-third of the inhabitants of the province,
and the consequent decrease of the cultivation the net
collections of the year
1771 exceeded even those of
1768.... It was naturally to be expected that
the diminution of the revenue
should have kept an equal pace with
the other consequences of so great
a calamity. That it did not was
owing to its being violently kept up to its
former standard "
In
the late
18th and the
19th centuries, the tax
on land exceeded the
total agricultural production of
very fertile land. Thus in
the Madras Presidency, one-third
of the most fertile land
went out of cultivation between the
periods 1800 and 1850.
British
Indian administrators, John Shore, wrote that "They have
been taxed to
the utmost limit;
every successive province, as it has fallen into our
possession, has been made a field for higher exaction;
and it has always been our boast
how greatly we have raised
the revenue above that
which the native
rulers were able to
extortI."
".1 know it is said in the
missionary meetings that we conquered India to raise the level of the Indians. That is
cant. We conquered India as an
outlet for the goods of Great Britain. We conquered India
by the sword, and by
the sword we shall hold it." Bipan Chandra writes: "The composition of India's imports and exports also
underwent radical transformation during the 19th century. While prior
to 1813, and ever
since remote antiquity, India had primarily been an
exporter of manufactures and importer of precious metals and luxury products, it gradually became, particularly after 1858, an
exporter largely of agricultural raw
materials and
food grains and importer
of manufactured products. Cotton
and silk textiles and
other traditional staples of export
were gradually replaced by a
variety of agricultural products, chief of them being raw cotton
and jute, tea
and coffee, opium, oil seeds,
and wheat and rice, the last
two constituting nearly 17 and 26
per cent of
the total exports
in 1881-82 and
1904-05 respectively. Among the
imports, cotton yarns and cloth,
metals, machinery, sugar and oil
began to predominate, cotton products alone constituting nearly 24 and 39 per cent
of the total imports in 1881-82
and 1904-05 respectively."
Agarwala wrote "In
1815, the cotton goods
exported from India were
of the value of £100,000. In 1815,
the cotton goods
imported into India
from England were only of the
value of £26,300 but by
1832 they were over
£400,000. The consequence
was the
decline of India's manufacture.
The manufacture of
silk and cotton
goods had declined, and the
people who used
to export these goods
to the markets of Europe and
Asia in previous centuries now
began to import them. India was reduced from
the state of a manufacturing nation to that of an
agricultural country."
Kennedy wrote "After 1813,
imports of cotton fabrics into India rose
spectacularly, from 1
million yards (1814) to 51 million
(1830) to 995 million
(1870), driving out many of the
traditional domestic producers
in the
process."
Agarwala
quotes the evidence in the
Common's Report to
emphasize the process of elimination of the Indian manufacturers. "In the
early years of the 19th
century while the Company's trade averaged £1,882,718
annually, private trade averaged
5,451,452 per year.
Years |
Yearly Average |
1835 to
1839 |
5,347,000 |
1840 to
1844 |
5,930,000 |
1845 to
1849 |
7,760,000 |
1850 to
1854 |
7,458,000 |
1855 to
1859 |
7,730,000 |
1860 to
1864 |
17,300,000 |
1865 to
1869 |
24,600,000 |
1870 to
1872 |
27,400,000 |
Source:
Naoroji, Dadabhal, Poverty and
Un-Britlsh Rule in
India, 2nd Ed.,
Ministry of
Information and Broadcasting, Government of India, New Delhi, 1966, p. 31.
****
MANAGEMENT MODERN
4.
The
western era of management: the recent cycle
from Typal, Conventional to Individual age
a) The
chaos of middle age based on random use of men and machines
b) Scientific
management
c) Its
counterbalance by human factor brought in
d) Mental
age / Age of reason and individual : growth of industries Productivity and
efficiency : the pick of their achievements and contribution to evolution of
Humanity
e) The
colonisation of the model to Asia and other parts of the world.
Overview
of management history till today including the expression of Modern Global
Management (US, European, Japanese and Russian School of Management):Strategic
Management Aspects, Sales and Marketing Aspects, Finance and Costing Aspects,
Operations & Supply Chain Management Aspects, Theory of Constraints,
Quality Management Aspects, Human Resources Management Aspects, Legal and Compliance
Management Aspects, Environment and Sustainability Aspects, Analytics and
Knowledge Management
5.
The
imposition, imitation and own reactions or assimilation by India and Asia in
general: India and Asia prepare for next ascent of cycle
a) Asia
attempting to imbibe the model in its own way: Quality revolution in Japan.
b) The
early Businesses and entrepreneurs in India
c) The
glaring deficiencies of the model highlighted by wars, revolutions, social
unrest and economic recessions showing
insufficiency as a solution or panacea for mankind
d) Rise
of China, Korea and other nations in business
e) Indian
traditional systems still sustaining : thriving economy and growth story of
India
f) Indian
cultural system still valid in small medium enterprises, entrepreneurs, family
businesses, skill industry and arts and crafts.
g) Leading
thinkers, Management gurus and business heads leading to India management
story.
h) The
four powers: Wisdom, Strength, Harmony, Perfection.
The impact that management theory as well as the practice of
management the role of the manager is worth seeing. The need to continuously
access the external environment and the need to understand and address these
external forces for change are critical in this respect and so is the
contribution and role of systems theory and contingency theory especially to
the emergency management. Effective
planning ensures that organizational goals are aligned to the immediate tasks
at hand. Sustainable organizations alone can tackle emergency and crisis
situations.
Growth of the field of Management:
In the later part
of the Nineteenth Century and throughout the Twentieth Century we saw a growth
in Management as a science and art and the impetus of that was from the rise of
the industrial revolution. Management
concepts was needed to steer, and augument as well, as control the growth of
industrial manufacturing in the United States and Europe.
F.W.Taylor (1911) the
father of modern scientific management considered management a process and just
like other branches of science, one can approach it “scientifically” for
objective, rational, verifiable and useful results. Principles of scientific
management revolutionized this filed with ideas like fair day’s work, breaking
job in elements, standard time for a qualified worker to do specified task at a
defined level of performance and so on,.They said that there is a right way of
organizing work and accomplishing tasks (Gilbreth 1911). The engineering approaches to acknowledge the
impacts of bureaucracies (Weber 1947)and the role of the “manager” in directing
the organization to achieving goals in a rational manner (Mintsberg1971) or the
interpersonal, informational, and decisional roles a manager in the public, private and non-profit
organizational setting has to imbibe were stressed.
From the motion
studies of engineers to the Hawthorne studies and from a behavioral approach to more quantitative
approaches from “total quality
management (TQM)” (Gabor 1990) to TOC and BPR, several techniques and
philosophies emerged.
Organizational culture theory and Environmental
constraints have been revently seen as important factors in management theory
over the past fifty years (Kottler 1992, Schien 1985). The need to be aware of managing in a global
environment (Adler 1996)and the need to monitor the external environment not
only locally but on an international scale is very much a need now.
The need to monitor the
nature and changing character of external forces and how they impact the
operations of an organization is very essence of strategic management. Environmental scanning needs assessment of
technology, the law, the press, elected officials, citizens, and the natural
environment to know, monitor and control impact of these things on the internal
operations. The view of the organization
as a system and the view of the open system creates a more agile way to deal
with uncertainties and ambiguities and help to adapt to new and changing
requirements. This view says that
Management is a process, which spans and links the various sub-systems.
The basic
function of management is to align people, institution, technology, processes,
and structure so as to reduce uncertainty and foster flexibility.
The situations
which are dynamic, uncertain, chaotic and ambiguous, Management strives for a network of mutually
dependent relationships and bringing regularity or order in a world that will
never allow that to happen. Systems
theory evolved from the basic sciences plus social sciences which talked of a system
as composed of interrelated and interdependent parts arranged in a manner that
produces a unified whole is critical in understanding all parts. Even societies
are complex open systems which interact with their environment (Barnard,
1938).
Systems theory is based on the idea that everything is
part of a larger, interdependent arrangement and we have to know the whole, as
well as its parts, and the relations between them (von Bertalanffy 1972).
An open system
involves the dynamic interaction of the system with its environment. and says that everything is related to
everything else as it receives various
inputs, transforms or processes the inputs gives back outputs. It interacts not just with environment but also
within themselves, with their subsystems and parts of subsystems and adapts to
its environment as the internal components, processes and relations are changed
to suit the time and the need.
The combined and coordinated actions of the parts of the
system can achieve much more than all of the parts acting independently. This
is what is called as “synergy” as the whole being greater than the sum of its
parts. This is especially important in
an emergency management. (Bedeian, 1989).
Social organizations are not static mechanical systems rather they are
constantly evolving structure of events rather than fixed physical components,
Though these are structures made of humans and so the bonds are psychological
rather than biological and are rooted in the attitudes, perceptions, beliefs,
motivations, habits, and expectations of humans.
A systems
approach helps to understand relationships between interdependent parts in
terms of how these relationships affect the performance of the overall system
(Kast 1985; Freemont 1985). The
importance of leadership and adaptive behavior cannot be overemphasized in this
case. (Lewin 2000; Toffler 1985; Garvin 1993; and Sugarman 2001) who stated
that today’s leaders must discover ways of creating order in a chaotic
world.
Chaos theory
states that even a small change in the initial conditions can have significant
change in the long-term behavior of the system The flapping of a single
butterfly’s wing today produces a tiny change in the state of the
atmosphere. Over a period of time, what
the atmosphere actually does diverges from what it would have done. So, in a month’s time, a tornado that would
have devastated the Indonesian coast doesn’t happen. Or maybe one that wasn’t going to happen,
does (Stewart, 1989).
Contingency theory suggests that management principles and practices
are dependent on situational appropriateness.
Luthans (1976) especially when Management to an intercultural context
where customs and culture must be taken into consideration (Shetty 1974). The
efforts of many organizations to build a more sustainable community, business
or country are also for emergency management goals and hazard mitigation.
Sustainable development as “meeting the needs of the present
generation without compromising the ability of future generations to meet their
own needs”. (1987 the United Nations World Commission on Environment and
Development) To focus more on the renewable resources or at its extreme, leave
nature alone. The economy, the environment and the sustainability are three
issues link together.
Management theory acknowledges this view and encourages diversity,
non-discrimination, organizational values.
To summarise: Only a
sustainable and well rooted organization can face shocks, crisis and
emergencies.
References
Adler, N. (1996).
International Dimensions of Organizational Behavior. Cincinnati:
Southwestern.
Barnard, Chester I.(1938). The Functions of the Executive.
Cambridge MA: Harvard
University Press.
Bedeian, Arthur G (1994). Management,
Chicago: Dryden Press.
Blaikie, Piers et al.
1994. At Risk. London: Routledge.
Bolin, R. and D. Klenow.
1983. “Response of the Elderly to
Disaster: An Age Stratified Analysis.” International Journal of Aging and Human
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Bolin, R. and P. Bolton.
1986. Race, Religion, and Ethnicity in
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University of Colorado.
Burby, Raymond (Ed.). (1998). Cooperating
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Chiles, James R. (2001). Inviting Disaster: Lessons from the edge of
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Business.
Cutter, Susan L. (2001). American
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Joseph Henry Press.
Drucker, Peter F. (2002). The
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Enarson, E. and Morrow, B. 1997. “A
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W. Peacock, B. H. Morrow, and H.
Gladwin (eds.). Hurricane Andrew.
Miami: International Hurricane Center.
East, Freemont E. and James E. Rosenzweig (1985). Management: Systems and Contingency
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