6 Dec 2021

INDIA ECONOMIC POWER summaried part from KANAGSABHAPATI

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 othe 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 agesand  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: "Accordingto  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 'rulermade  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"

Text Box: ·

( 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. AText Box: •

 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  manand  of man and   the  stateso  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

 

 
 Indian artisans to  work  in  the  Company's factories; commercial  residents were legally  vested  with extensive powers over villages  and  communities of Indian weavers; prohibited tariffs excluded  Indian silk  and  cotton  goods from England; English  goods were  admitted into  India   free  of duty  or  on  payment of nominal dutyl921."

(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 ruinwhile  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 Bengalor 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  jutetea  and  coffee, opium,  oil­ seeds,  and  wheat and  ricethe  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  jutetea  and  coffee, opium,  oil­ seeds,  and  wheat and  ricethe  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  1829to  Denmark   from                           1457,.., bales  to1000, 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  handtook 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 ruinwhile  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 Bengalor 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  jutetea  and  coffee, opium,  oil­ seeds,  and  wheat and  ricethe  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

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