Posted By Joshua Keating Share

Many commentators give at least partial credit for India's economic success to the political institutions left in place by British colonialism. Fareed Zakaria, for instance, believes India "got very lucky" in that its first generation of post-independence leaders "nurture the best traditions of the British" including "courts, universities [and] administrative agencies."

But a new study by Lakshmi Iyer of the Harvard Business School casts some doubt on whether British governing institutions really has a postivie economic impact in the long run. Here's the abstract:

This paper compares economic outcomes across areas in India that were under direct British colonial rule with areas that were under indirect colonial rule. Controlling for selective annexation using a specific policy rule, I find that areas that experienced direct rule have significantly lower levels of access to schools, health centers, and roads in the postcolonial period. I find evidence that the quality of governance in the colonial period has a significant and persistent effect on postcolonial outcomes.

The finding is particularly interesting given that Iyer also shows that the areas directly annexed by the British tended be those with higher agricultural productivity. Despite their potential, these areas "did not invest as much as native states in physical and human capital."

Iyer's paper provides an interesting companion to another recent study by Alexander Lee and Kenneth Schultz of Stanford, which compared economic outcomes of formerly British and formerly French districts of Cameroon:

[W]e focus on the West African nation of Cameroon, which includes regions colonized by both Britain and France. Taking advantage of the artificial nature of the former colonial boundary, we use it as a discontinuity within a national demographic survey. We show that rural areas on the British side of the discontinuity have higher levels of wealth and local public provision of improved water sources. Results for urban areas and centrally-provided public goods show no such effect, suggesting that post-independence policies also play a role in shaping outcomes. 

Taken together, the moral of these studies could be that colonalism isn't great for a country's future political and economic wellbeing, but if a country is going to be colonized, they're better off with the British than the French. It's also very possible that the legacy of colonialism -- whether positive or negative -- manifests differently in national rather than local governance. Although on a purely anecdotal level, the French vs. British distinction seems to hold there as well. 

Hat tip: Chris Blattman

 

JAYAKUMAR.P

5:32 PM ET

November 16, 2010

Re : How helpful was British colonialism?

As far as India is concerned, the so-called British colonialism was nothing less than a tormenting oppression, which pillaged and pilfered our country's resources, pushed down generations of Indian people into slavery and serfdom, killed and maimed countless of our hapless compatriots in freedom struggle, all the while enjoying drinking and debauchery at the toil and sweat of our people. Indeed, it did bring in modern technology such as railways, telegraph, hospitals etc; but that were singularly for serving their own colonial ends. In short, the colonial period was no better than a nightmare for India, notwithstanding whatever its modern-day apostles would argue.

 

PRESTWICK

6:09 PM ET

November 16, 2010

Poor example.

Today's India is the result of a 700 - 800 year fiasco in which both its past rulers (British AND Indian) are equally to blame. It has produced a country that while now independent and powerful depends on a motley patchword of customs, laws, precedents and institutions left over from the British Raj, the East India Company days and the Mughal Empire.

India has had problems left over from the days of Empire both British and Mughal but it has hardly done itself any favours by not wiping the slate clean and starting again. How the hell it can still function under legislation dating back to the old Colonial government of the 1860s is beyond me!

When keys to India fell into Britain's lap it certainly wasn't part of a grand strategic plan more the result of greed and corruption in India itself on the part of Brits like Robert Clive and Indians who were happy to give way in return for a share of the loot.

Is it any wonder that it turned out like it did?

In any case this is a bad example. It doesn't explain how the likes of Malaysia and Singapore have turned into regional economic powers and yet Ghana and Nigeria (who were granted independence roughly at the same time and were given similiar levels of assistance by the British after independence) have since suffered slower starts to independent life.

Let us be clear though. By staring at our navels and bashing past colonial enemies, Africa and the 3rd World ignore a bigger danger at their peril: that of succumbing to the neo-colonialism being peddaled by China and even South Korea who are eager to secure rare earths for raw materials and land for food and are buying up land wholesale in Africa chucking indigineous landowers to the fringes.

 

SAM FROM CALIFORNIA

8:34 PM ET

November 16, 2010

Colonialism is a mixed bag

All colonialism was bad and harmful to local areas, but the article is correct in saying some kinds of colonialism were more pernicious and evil than others. Surely, Indians would have benefitted from an independent state of their own, but under the British they did better than the Congolese did under the Belgians.

Let's take two examples of something the British did in India; one, they ended the practice of immolating wives, two, they imposed a harsh free market system onto India, including its agricultural sector. Clearly, ending the practice of sati was a humanitarian end, and did good for the area. On the other hand, Britain's imposition of European-style property and economic systems also created famines that caused millions upon millions of deaths in India over and over again.

Let's take another two examples from West Africa; the British ended slavery, but they sublated local economic interests and political rights to their own. On one hand, ending slavery was a good thing which liberated Africans from an existential threat to their livelihoods and freedom. On the other, the European legal double standards and economic exploitation created other conditions that were in many cases just as horrid as slavery.

A last obvious example would be the Spanish, who replaced Aztec human sacrifice with inquisition and extermination of all local authority figures and a brutal system of feudal peonage. While they were roundly criticizing the Aztecs for their religious practices, they hypocritically used their own religion to justify the large-scale execution or imprisonment and torture of religious dissidents both in the "New World" and back home in Spain.

Colonialists often correctly saw moral failings of the society they invaded, due to their outside status. But on the other, they were totally uncritical of their own moral failings, and thus often imposed equal or greater evils onto the societies they encountered.

It is also racist to presume, as many seem to do, that the Indian, African and Asian kings would have not traded with Europe to improve their infrastructure on their own, without outside intervention. Japan and Siam, and even Ethiopia and China, traded with Europe once they understood the nature of European technological superiority, and were more than happy to modernize on their own account. Many conquered nations were on the path to doing this when imperialized themselves; Burma was beginning to build factories of its own, Egypt was beginning to modernize, Hawaii was too ... many Imperialized states had, on their own accord, begun to look outward, but the European empires instead exploited that for selfish national ends. We may remember the story of the Cherokee, Creek and Iroquois, who tried to adopt "civilization" on their own accord, but were annexed by the US thanks to their small size and the relative youth of development in their material culture.

So in otherwords, everywhere it went, Colonialism did *some* good but the social evils and human costs to the society in question always outweighed that good.

 

PRESTWICK

11:20 PM ET

November 16, 2010

Prestwick

It is also important to stress that a lot of this happened out of reach of those sitting in London. Keep in mind that until the telegraph was brought to Australia, the time it would take to communicate was in the months not weeks or days. So apart from dispatches arriving with a time-lag of months the Australians were on their own.

This in part explains how reckless the Colonists and then the convicts who would later settle there were when forcing the Aboriginies first off their land and then away from Colonial settlements. If there was some way of establishing a modicum of oversight from London over how things were run there then half of the atrocities would never have happened. Sadly there wasn't and the rest is history.

The same goes with India but I still find it laughable that many think India was subdugated as part of one big masterplan when actually it was done on the fly with very short term goals in mind: make money and get the hell out. Nobody really thought about how exactly they'd govern the place and the East India Company wanted to just do what the Chinese are doing now in Africa: exploit the country's riches and leave the actual administration of the place to the locals.

Clive of India and war with France put paid to such notions. In any case yes they did impose a free market system but at the same time they continued pre-Raj practices such as paying people all year round for frankly useless public works projects. This demeaning practice still survives today with Indians being paid to construct by hand useless and poor quality works such as earth banks to prevent flooding in India's driest areas.

Thats why I still think India is a poor example because it was always in some kind of perpetual crisis from the Muhgal Empire collapsing to the partition. The governing institutions of India were always fighting some kind of administrative fire. The entire show was a fiasco from start to finish and they're only now starting to get a grip on the issues which plague India.

 

GONZO

9:05 PM ET

November 16, 2010

"Many commentators give at

"Many commentators give at least partial credit for India's economic success to the political institutions left in place by British colonialism."

Only the grossly uninformed. India was one of the most economically advanced regions of the world when the Europeans arrived. Under British rule the Indian textiles industry was systematically destroyed so it couldn't compete wih textiles from Lancashire. Colonialism was a crime against humanity, and I'm British myself.

 

LEAN

10:51 PM ET

November 16, 2010

a small oversight...

"India was one of the most economically advanced regions of the world when the Europeans arrived.".......except for the Europeans. Europe generally, and Britain specifically, was THE most economically advanced region in the world at that time - and along with the US, still is despite the rapid rise of the east Asian economies and India's burgeoning economic strength. Yes, the British exploited the Indian sub-continent for empire and personal profit, but to say that they maintained anything resembling an advanced economy is false. At best, India was a mixed bag of differing linguistic, ethnic, religious, and familial/clan rivalries that made economic integration difficult if not impossible. The claim that the Brits destroyed much of the Indian textile industry is almost certainly true. There is likely much more that the British destroyed in India in order to feed their empire. If India was as advanced economically as you say they were, the British would not have had such an easy time taking over. And I agree with you that colonialism was a crime against humanity. That being said, SOME of the nations that were colonized did and still do benefit from the colonial system. I leave it to the people in these nations to decide whether the benefits outweighed the costs.

 

AHSON HASAN

11:12 PM ET

November 16, 2010

Colonization did wonders for South Asia...

Beyond the extraordinarily developed civilizations of Moenjodaro and Harappa, despite the rich Hindustani culture, colonization, as a matter of fact, brought character and polish, finesse and steadiness in South Asia.

The British were not the first colonialists to step into South Asia. However, they were the ones who absolutely transformed the Indians into the people they are now.

The value of colonization cannot be undermined. The British built structures that the Indians could never have created. Colonization gave South Asia the democratic mechanism ( the Pakis screwed up but the Indian have proudly held on to them ).

 

AEHSAN

1:17 AM ET

November 17, 2010

@Ahson

Man - have you got an Unlce tom complex (Assuming you aren't white with a name like that.). Tell the 3MM the British starved during WW2 to feed England. Or the partition. Or Kashmir. Or just general divide & conquer. S. Asia din't inherit all its evils from colonialism but to belive something like that was not a key inhibitor to development is ridicolous - might as well say Africa benefited from slavery as it allowed transportation of its population to the more prosperous west.

 

AHSON HASAN

10:27 PM ET

November 17, 2010

To AEHSAN...

I'm neither apologetic, complexed nor have any issues of my 'white' heritage! I'm just a realist - South Asia would have been a placid piece of land, with no railroads, no governmental infrastructures, no sense of organization and no knowledge of English language had the British not 'tamed' them.

As for Kashmir, please understand that it belongs to India. Pakistan may consider it as an 'unfinished agenda of Partition', the Indians have since long moved on. So, please forgt Kashmir and do not fret too much over this non-issue.

Nothing and no one is perfect in this world. I have always admired Jinnah's character as one of towering personalities of the 20th century. Yet, look what happened to him - he fell for the 'Muslim' argument and spent almost 30 years of his life building up a case for a homeland for the Muslims. Jinnah being a perfect secularist had no idea that the modern-day Pakistanis would distort his views and ideals. Jinnah could have instead of chasing the dream of Pakistan spent his time and energy in a much better way by focussing on issues of Indians at that time.

Yes, Pakistan was a bad deal and the British should have tackled the question in a better way. India should have remained one. As it is, the Pakistanis could have digest the idea of independence and hence did not deverse it as such.

 

SANDYBOY

6:21 AM ET

November 17, 2010

Giving Direction

I don't think anyone would claim that India would be better off still under British rule. But it is hard to deny the benefits colonialism has brought. Before colonialism, India was monarchical with local tax collectors. After colonialism Indians would file a tax return. Similarly, the judicial system became one of the people, rather than one of the mob. The British gave a lot to India, but admittedly they probably stayed too long.

 

XTIANGODLOKI

1:30 PM ET

November 17, 2010

British taught Indians English

And with English, Indians were able to take outsourcing projects en mass from the US and become the leaders in IT outsourcing. On the long run, although India missed the industrial revolution it is on the forefront of the next big wave: IT.

The other arguments on whether India would be better off not colonized are all too theoretical.

 

ASHOK CHOWGULE

7:56 AM ET

November 24, 2010

English as a language of progress

If only English is to be considered as a language of progress, then one would say that Japan and Korea are backward countries.

Namaste
Ashok Chowgule
Goa, India

 

DOUG GEORGE-KANENTIIO

11:18 AM ET

November 22, 2010

British colonialism in Canada

To add to the debate about the effects of British colonialism. As a member of the Mohawk Nation, Iroquois Confederacy, our experiences with the British have been controversial. We entered into formal treaty relations with Britain 340 years ago in which our status as independent nations, on equal par under international law with the Brits, was acknowledged. We affirmed this in other agreements for the next 100 years until Britain signed the Treaty of Paris with the US in 1783 and abandoned us to the avarice and revenge of the Americans. Nonetheless, we fought as allies to protect Upper and Lower Canada during the War of 1812. We literally saved those two colonies but were once again neglected by the Brits when they signed the Treaty of Ghent. Our experiences tell us the British have no inherent sense of honour, their foreign policies are entirely self serving and based on the manipulations of their ruling class. Their lack of compassion is reflected in the manner in which they have drawn boundary lines through indigenous lands without regard for the people. Their legacy has been one of warfare, environmental degradation, international conflict and religious strife. We, the Iroquois, offer our history to the people of India. Never trust a Brit.

 

GRAHAMDUBYA

9:12 PM ET

November 22, 2010

The French, at least...

"Peace and security were maintained with a minimum of repression. One could travel more safely in the bled or the brousse than in some big French cities. Population was growing, thanks to the cessation of civil wars and to better hygiene. Roads and railways had broken down tribal isolation and introduced foreign influences whose sudden impact upon primitive civilizations was not without danger. New techniques and the example set by the colonists had quickly developed the economic education of the natives."

Similar, but not from the same source: http://automaticballpoint.com/2010/02/01/for-love-of-country-part-i/

 

ASHOK CHOWGULE

7:54 AM ET

November 24, 2010

Will Smith's book "Case for India"

Talking about the supposed benefit of colonialism is insulting to the millions of people who had to lose their lives so that the coloniser could live a life of luxury. One has to read Will Smith's book which has narrated how much loot was taken out of India by the British. It is to the credit of the Indian character that they are not asking for compensation for the huge suffering that the people had to bear.

Namaste
Ashok Chowgule
Goa,India

 

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