Gunpowder monopoly ends
Towards the end of 19th century, newly discovered nitrate deposits (sodium nitrate) in the Atacama desert of Chile came onto world markets. Chile’s nitrates were a crucial intermediate for gunpowder.
Chile’s nitrates broke the British monopoly over the trade in Indian saltpetre for the first time in modern history. French domestic production of saltpetre, barely enough for their own needs, could not challenge Indian saltpetre output that the British monopolized.
Indian saltpetre (potassium nitrate) could be simply refined and used directly in gunpowder – unlike Chilean nitrates. Also Chilean nitrates were limited natural deposits, whereas Indian saltpetre was produced on an industrial scale, accounting for some 70% of global production.
Germans quickly secured supplies of Chilean nitrates. A few years into the WWI, Germans brought the Haber-Bosch process from the laboratory stage to industrial production. The Haber-Bosch process for production of ammonia, gave Germans industrial capacity to produce gunpowder.
Causes for WW1
With this industrial capacity for gunpowder in place, Germany and Turkey, both non-colonial, industrialized powers challenged colonial powers, Britain and France, for access to world markets.
Against Britain and France, the then dominant world powers, with extensive colonies, were Germany, the Austro-Hungarian Empire and the Ottoman Empire out of Turkey. Once WWI started, US funded both Britain and France. The US plied the Anglo-French alliance with extensive supplies and credit.
Emergence of USA
While millions died in European trenches, the USA bided its time. With mud, blood and disease taking a heavy toll, Britain, France, Germany, Turkey and Russia were soon exhausted and prostrate into a stalemate by the end of 1916. As the fate of WWI hung in balance, USA finally joined the Anglo-French side to gain a share of spoils.
Financially unaffected, industrially strong, militarily effective, the US emerged on the world stage.
Soon after WWI, as Anglo-French colonies and markets started opening up, US products gained new customers. Indians started buying Chevrolets, Buicks, Packards in small numbers. Victrolas started playing music in India – and on India. Michelin’s radial tyres from France became a byword in India for long-life. Indian natural rubber started going to Italy’s Pirelli and France’s Michelin.
Impoverishment of India
But Britain, a victorious nation was deep in debt – to USA and Colonial India. US emerged as the largest creditor nation. To settle these wartime debts, debtor Britain and creditor USA worked out a debt-repayment ‘mechanism’. Nothing but financial jugglery, this mechanism slashed the amount due to Colonial India and actually transferred the debt-burden of WW1 onto the backs of Indian peasant.
To settle this debt, Britain took recourse to gold from India. To give impetus to this transaction US supplied Britain with silver – then in abundant supply, in the form of US silver currency coins. This silver was ‘sold’ to Britain at double the market price – under the guise of the Pittman Act. Britain paid its wartime debt to India with this silver – at this inflated Pittman Act price. Abundant silver coins were stuck by the Colonial Raj, which are still available across India in large quantities.
To settle loans taken from USA to fight WW1, Britain extracted scarce gold from India. While payments for Indian exports were made in overpriced silver, the Indian peasant was forced to pay for imports and taxes in under-priced gold.
Due to this overpriced silver-under-priced gold combination, a surge in gold outflows started from India. Soon the US banking system was flush with liquidity.
Expecting the closed markets of Anglo-French colonies to open up, US economy expanded trade relations and industrial capacity. This expansion in trade and production of industrial goods was funded partly on the back of inflows of gold from India through Britain.
Finally though, protective barriers did not come down substantially enough – creating industrial over-capacity and excess liquidity in USA. Seeing ‘irresponsible’ bankers, waste ‘hard-earned’ gold on ill-planned trade expansion and production capacities, the US Federal Reserve clamped down on liquidity.
Great Depression followed. To ‘save’ gold-reserves, Roosevelt went further and nationalized gold.
Crime in the 20th century
In turn, Roosevelt’s gold nationalization, sparked a global crime tsunami. Only after the easing of restrictions on gold ownership by 1990, did the crime tsunami subside. The axis of this tsunami of crime was gold smuggling into India and narcotics trans-shipment through India.
A tsunami that engulfed all major economies of the world.
Unresolved issues of WW1 triggered WW2. Germany hemmed in from all sides by British client-states, unable to find markets for its industrial production, reacted.
Germany, allied with Japan and Italy, proposed creation of larger ‘home’ markets. This was to be done by ‘expanding’ their own borders – to include neighboring countries. As first steps, on 3 October 1935 Italy invaded Abyssinia, now Ethiopia, Germany on 11-12 March, 1938, swallowed Austria; and Japan occupied Manchuria.
These militant powers shared the same disregard for human life. Britain wreaked havoc by creating The Great Bengal Famine. Some 40-50 lakh (4-5 millions) Indians died. Hitler rained the Holocaust on the Jews. Some 50-60 lakh (5-6 million) Jews died.
Three faces of stagnation
Production capacity of non-OECD world was destroyed by years of colonialism, WW1 and WW2. Economic conditions after WW2 improved due to relative peace and as countries of the world started rebuilding their economies in the last 60 years (1950-2010).
The last 60 years has seen significant increase in industrial capacity of non-OECD nations. US extended supplier’s credit – using the US dollar, the favored currency of the Bretton Woods system.
A significant portion of economic expansion of OECD economies during 1950-1980 happened as production capacity of the world was rebuilt. The same capacities that were destroyed by colonialism, WW1 and WW2 – especially during 1850-1950 period.
This creation of production capacity in non-OECD countries means economic stagnation and loss of political power for a few decades across OECD. With greater production capacity in the hands of non-OECD producers, production capacity in OECD-USA must shrink.
Or a WW3 will be ‘needed’ to destroy the production systems of the poorest countries – to ‘save’ the West-OECD.
To get around this ‘problem’ of stagnation, the West has created artificial ‘crisis’ situations.
- Population Explosion
- Global Warming and climate change
- Civil Wars in Africa
- Islamic Demonization
- Financial meltdowns
Complicating the current situation is the US currency mechanism, called USCAP (by 2ndlook) which favors selected US allies with advantageous exchange rates. China, Asian Tigers, Japan and NATO-Europe have gained significantly from the USCAP program.
The most notable loss due to trade distortion has been Africa’s.
During the 20th century, the world had to contend with an intolerable situation. The Anglo-Saxon Bloc (America, Australia, Britain and Canada) accounted for 80% of gold production (between 1200-1800 tons per annum) and controlled 80% of global gold reserves (around 100,000 tons circa 1920) also. Not even Chengez Khan had that kind of control over global economy.
Dawn of a new century
At the beginning of 21st century, gold reserves in the hands of all the nation-States, are at a historic low. All the Governments in the world own less than 20%, i.e. 30,000 tons from global gold reserves of 150,000 tonnes.
Another 5 years of aggressive gold buying by global consumers will see this down to possibly 15%-17%. This will severely limit the ability of any State to wage a prolonged war.
A collapse of the currency systems in the world is imminent – in the next 5-15 years. Gold may give super-normal returns in the face of such an event.
Desert Bloc – beginning of the end?
The 20th century possibly saw the Desert Bloc reach its high-point. The world fully understands the bankruptcy of the Desert Bloc – and it may take some time for the effects of Desert Bloc propaganda to wear off.
Celebrations may, however, be premature. The alternate to Desert Bloc politics – भारत-तंत्र Bharat-tantra is yet to regain traction.
- U.S. losing its grip on world (timesunion.com)
- Anglo-Indians: Some corner of a foreign field (economist.com)
- India Now and Then (3quarksdaily.com)
- Profile: Thomas Babington Macaulay a giant of the British Empire (telegraph.co.uk)
- New revelations in ammonia synthesis (scienceblog.com)
- Why trapped miners “unwilling to die in darkness” (cnn.com)
- Recycling animal and human dung is the key to sustainable farming (energybulletin.net)
- Science History of the Renaissance Period (brighthub.com)
Good Job, Dinesh
I dont see Haiti mentioned in most discussions about the abolition of slavery – and I am intrigued by this whitewash. These two blogs possibly best represent attempts this ‘white wash.’
One is from a member of the US Conservative Right, part of the Republican propaganda team – aapla, our own, Dinesh DeSouza. He tries, speciously and very hard, to show how it is the White, Christian, Americans who actually freed the slaves – after the slaves were sold into slavery by their Black Brothers.
Of course, he cannot see the long history of trade in slaves, the laws and might of the State which enforced this trade. There is no mention of the continuing attempts (under disenfranchisement laws) to deny Blacks, their voting rights. He does not see the more than 200 slave uprisings in USA (alone). Dinesh does a fabulous hatchet job on why I should volunteer to become a colonial subject (if not a slave) of the West or the Raj again. Bro.Dinesh DeSouza does not publish dissenting comments.
The second blog, by an academic, celebrates a pseudo-anniversary. This post, by ‘a professor at a large state university,’ abandons academic integrity, to promote propaganda, instead of academic excellence. At least, he published dissenting comments.
Or for this matter this book review in The Times about slavery – which doesn’t once mention the one reason, why slavery was abolished – Haiti and slave revolts.
What most of these mainline and popular press fail to mention is the determined Black struggle for overthrow of slavery. Between 1789-1833, more than 20 slave rebellions occured in the Caribbean – one every 2 years. It were these slave revolts that ‘persuaded’ the West to abolish slavery. In the USA, about 200 slave uprising and revolts occurred in the USA before the Civil War.
In the beginning
Boukman Dutty, a Voudou N’Gan (oungan, houngan, voodoo priest), killed a pig as a part of an African tribal ritual Bwa Kayiman, dedicated to his ancestors and Ogoun, God of fire, iron and war. Ogoun and Erzulie Dantor (Ezili Dantor), a Vodou l’wha (loa) a warrior spirit, responded to this call to protect these slave warriors.
25th August. Night of Fire
50,000 slaves rose in revolt. More than 1000 sugar and coffee plantations were put to fire. Flames could be seen as far as Bahamas. From 31st December 1803, to 1st January, 1804, liberation brought about by vengeance was celebrated, and independence was declared.
St. Dominque, now called Haiti, was a French colony with 800 sugar plantations and 4,00,000 slaves from Niger and Dahomey (now Benin) in West Africa. Haiti, the jewel of French colonies, accounting for 40% of French GDP in 1700s, was the largest market for slaves in Atlantic trade. It was the largest producer of sugar in the world and competed with British colonies (like India) for indigo production and had thousands of coffee plantations.
Christopher Columbus was the first European who came to Haiti and started the exploitation of Haiti. What happened to the original population of Haiti? An estimated 1.3 million, may have been 3-4 million (admittedly not white, but nevertheless) people. Done to death by forced labour in silver mines over 10 years.
Birth Of Haiti
The Haitian Revolution earned the displeasure of Napoleon Bonaparte. The threat of a politically-free Haiti (then Saint-Domingue) with a freed black slave population challenged Euro-American imperial ‘needs’.
This created a “terrified consciousness” (Anthony Maingot) among slave masters. To restore slavery (the local population and its leaders were, of course, not consulted), and Napoleon sent General Charles Victor Emmanuel Leclerc (his brother-in-law) with about 10,000 French troops, the finest, in 1802 to accomplish this aim. A futile effort. “Napoleon lost the colony, his brother-in-law, and most of the 44,000 troops eventually sent out to conduct the savage and bitter campaign of reconquest”.
After the revolution in Haiti, Spaniards and the British rushed in to take advantage of this opportunity and to re-enslave the rebels. The newly freed slaves time and again beat back the new British and Spanish enslavers.
“The army failed. Five years and more than 12,000 British deaths later, the redcoats withdrew. An army of rebel enslaved Africans had defeated the army of the world’s superpower, and the largest slave-trading nation. The humiliation of this defeat sent a shock wave through the British establishment and, indirectly, strengthened the forces in parliament that voted to abolish the slave trade in 1807.” (from William Wilberforce: The Real Abolitionist? By Adam Hochschild)
The Haitians, initially led by Boukman Douty, re-grouped under Toussaint Louverture, Georges Biassou, Jean Jacques Dessalines and Henry Christophe.
Shivas dun mai spoiwne
Haiti’s developments stampeded Europe and USA. Afraid that US slaves will follow the Haiti example, US did not recognise Haiti, till November 1864 – 60 years after Haiti declared Independence.
“dull, tasteless and anomalous” Blacks would have “ten thousand recollections by the blacks of the injuries they have sustained, new provocations, the real distinctions which nature has made, and many other circumstances will divide us into parties and produce convulsions which will probably never end but in the extermination of the one or the other race.“
Controlled Onshore Slavery
Restrictions on slavery were discussed all over Europe and USA. The US placed restriction on import of slaves – which increased the price of existing slaves in the trade market. But slave traders like Jean Laffitte soon ran rings round this by smuggling slaves from Cuba. Merchants and traders protested against Jean Laffitte’s smuggling of other products. Planters did not like slave traders because the slave traders made slaves ‘expensive’. The planters pressured Government’s into passing various laws restricting ‘trade’ in slaves.
Jean Laffitte’s smuggling operations stopped in 1821. After 14 years of successful slave smuggling. Jean Laffitte became a ‘folk hero’ in New Orleans for flouting restrictions against import of slaves (slaves that white southerners needed). It was his ‘patriot outlaw’ image which got him his following. He was ostensibly seen as aiding the government during the 1812 war with the British – which was decided on the basis of his business interests.
Europe, Britain & Abolition Of Slavery
Britain technically abolished slavery in 1807, after the Haiti experience – and replaced slavery with indentured labour. Upfront, indentured labour was only slightly more expensive but was far more cheaper in the long run. Indentured labour also came fewer issues related to capture, transport, trade and maintenance of slaves – with a veneer of respectability that was needed for propaganda purposes. Also, Britain had India – a huge colony to fall back on for indentured labour.
British trade and agriculture brought pressure to stop slavery by other European kingdoms. Paid labour had made French products uncompetitive – which made Napoleon re-introduce slavery. This re-introduction of slavery by the French (circa 1804) diluted British resolve to end slavery.
While slavery was supposedly abolished in 1807, trade in slaves continued. Slave ships and traders had to pay a fine of GBP100 per slave, if caught. The law was not seriously implemented. In the few cases where slave ships and traders were caught, slaves were simply thrown overboard.
Other Slave Rebellions
Finally, further rebellions in Barbados (1816), Demerra or Demerara (1823) and Jamaica (1831-32) forced the British hand. Off shore British slaves finally became free in 1833 after the British Government passed yet another law, to outlaw slavery, Slavery Abolition Act in 1833 – and paid ‘compensation’ to slave owners. An egregious and glaring example was the ‘compensation’ to the Bishop of Exeter and his partners of GBP12,700 to ‘compensate’ them for the ‘loss’ of 665 slaves in 1833.
How could the British afford to buy indentured labour? Bought with new gold discoveries in Canada and Australia.
Beggar Thy Neighbour
It was also economic warfare. Based on immediate colonial interests, promises were made to American slaves by Britain. During the American War Of Independence, British Colonial forces, promised Black slaves to run away from their White masters. Property was promised to them in Canada and Sierra Leone. Some were sent to London. Based on these promises, an estimated 75,000-100,000 slaves abandoned their White American owners.
The key to Haiti’s wealth – slave labour. Hence, the British efforts to ban slavery – as a part of their beggar-thy-neighbour strategy. Haiti was contributing major surplus to the French – and Britain had to undercut French economic gains from Haiti. The French efforts to get back into India against Britain through Tipu Sultan (during the Mysore Wars) had made life difficult for Britain – and hence they needed to undermine French economic resources.
It had little to do with human rights. While slavery was being abolished, the same Britons were committing genocide in Australia, New Zealand, and Africa.
In America, opposition to slavery was about race. What if the Black slave population in the American South became like Haiti? Just before independence, against a population of 400,000-500,000 Black Haitians, there were about 25,000 whites and 40,000 mulattos.
What if the Black Population in the American South (nearly 80% at the start of the Civil War) rose to say, 150%. 4 million Blacks compared to 5 million whites in the American South at the start of the Civil War.
Another Haiti would have very well happened in Southern American South too. A truncated USA was a real fear – if not a certainty. None other than “Benjamin Franklin said with alarm that importing slaves had “blacken’d half America” …
Great White Chief In The Sky
So, what did the white fathers do? They set up Liberia, in Africa, (another land of the free?) and the successor of the British black deportation to Sierra Leone and the Israel’s predecessor. Behind this idea was Jefferson again, (dining alone again, Thomas?), who suggested that US should
“take measures for procuring on the coast of Africa, an establishment to which the people of color of these States might, from time to time, be colonized.”
Such racist concepts also were also tried by Germany – in Paraguay. Germany decided to breed a race of superior White Germans, in the colony of Nueva Germania. Heading the Nueva Germania project was Elizabeth Nietzsche – brother of Frederick Nietzsche.
In 1816, the USA decided to follow Jefferson’s idea and colonise Africa (Africa had to pay the price of Jefferson’s dining alone). An artificial situation was created, where escaped, freed Blacks were sent to Liberia. The local population were of no consequence – like latter day Palestine. With the setting up of Liberia, slavery was moved off shore. Large parts of Liberia were leased out to Firestone – for rubber plantations. Even in Africa, these ‘freed ‘slaves were enslaved again – which continues to this day.
A significant reason why slavery was not popular in the North was the depressing effect of slavery on wages and employment. Poor (free) whites had to compete with slave labour for employment – and that was a non-starter.
Haiti’s Contribution To Other Freedom Movements
Haiti, (unlike today’s Israeli Jews) supported liberation movements. Haiti’s successful revolt and the defeat of the Spanish and British armies encouraged other colonies of South America to demand and fight for Independence. This fight was led by Simon Bolivar – after whom Bolivia is named.
After being expelled from Venezuela, it was Alexandre Petion, the Haitian President sheltered Simon Bolivar in 1815, who supported Simon Bolivar with arms, ammunition , a printing press and other aid – after a clear promise that all the freed countries of the South America would abolish slavery.
This was a promise that Simon Bolivar did not keep – until significant pressure was put on him. In spite of winning freedom with the help of Black people, the newly freed countries of South America discriminated against the very Blacks who helped them get freedom. Moreover, in 1826, at the Congress of American States, under US pressure, Simon Bolivar did not invite Haiti.
Fear of success or opposition, in country after country of the Americas and Pacific, the USA has been involved in destabilisation and intervention. One time USA allies are now hot beds of terrorism. Afraid that US slaves will follow the Haiti example, US did not recognise Haiti, till November 1864 – 60 years after Haiti declared Independence. Moreover, in 1826, at the Congress of American States, under US pressure, Simon Bolivar did not invite Haiti.
The US record against the growth and stabilisation of Cuba does not bear repitition. Having ‘bought’ Cuba from Spain (like Puerto Rico, Guam and Philippines), USA believes and feels that they ‘own’ Cuba.
In 1904, the US pressured Tomas Estrada Palma, a ‘puppet’ Cuban President, to sign the Platt Amendment. This allowed US intervention in Cuban affairs, if ‘vital’ US interests were at risk (meaning at at US will) – finally modified only in 1934. Under this ‘new deal’ ‘Cuba would be allowed to export 22% of the sugar the US imported, by paying 0.09¢, a pound tariff duty. In return, little or no duty would be levied by Cuba on goods imported from the USA.’
Oppression – And Its Many Avatars
Legal support for slavery is a feature of the Western and Levantine societies. Trade of human beings in market place, had the support of the State.
In Europe and USA, laws and courts were enforced slavery (Kishore Mahbubani, please note that the West follows the law). In Indic legal systems, such a feature has not been seen for the last 3000 years. The last Indic system which had explicit slavery laws were the Hittites around 1000BC. To cover up this aspect, and to shore up their image as champions of human rights, Western powers have tried to fuzzy the definition of slavery through the ILO – an creation of the Western powers after WW1.
The Desert Religions
Judaism, Christianity, Islam were all born within 500 miles of each other and share a common culture and history. Judaism was (probably) born when Moses led the Hebrew slaves from the Pharoah (across the Red Sea) to freedom – possibly around 500 BC at the latest to 1500 BC at the earliest. His earliest followers were the Hebrews and they were a significant part of the Middle Eastern history all through till today.
The next major religious reformer in the Middle East was Jesus Christ. For the first 300 years, Roman slaves were the major believers in his teachings. Emperor Constantine earned the loyalty of his Christian troops and won the war for Roman throne by his win over Maxentius at Milvan Bridge. Prior to Maxentius, for the previous 30-40 years, Christians had been persecuted by “rule of four’ Tetrarchy reformists in Rome, headed by Diocletan. Hence, the Christian slave soldiers of Constantine were eager for victory – as the persecution under Maxentius would have been worse.
Liberated slaves were the founders and rulers of Islamic dynasties, (in India, the Slave dynasty – builders of Qutub minar). Thus all the three “desert religions” were first adopted by the slaves and only after gaining significant numbers of adherents, these religions became mainstream and commenced aggressive proselytising and conversions.
Slavery – and other Labour contracts
Slavery was different – and a distinctive feature, promoted (largely) by the Western and Middle Eastern powers. It had state sanction, state protection, laws passed by the kings, emirs, emperors, parliaments and legislating authorities.
The US Supreme Court (Dredd Scott Case) prohibited slaves from even approaching courts for any redress. There was an organised, legal, sponsored industry involved in the kidnap, sequestration, transport, trade and transfer (and might I add re-capture) of slaves – with the might of the state behind it. The West has now partially succeeded equalising slavery with the caste system - to ‘whitewash’ their own history.
Why Must Haiti Succeed
The USA and the West has been at war (or by proxy) with the Black Republics of Haiti, Cuba, Greneda for the last 200 years. Fuelled by a desperate desire to show White superiority. By a need to white wash history. To hide the origins of their misbegotten wealth – built on the foundation of the skeletons of dead and surviving slaves.
Haiti gave the world freedom. Not America – which claims itself to be a land of the free (as long as you are white).
It is for the same reasons why Haiti must now be protected – by the rest of the world. Make Haiti a UN protectorate. All the superpowers to be forced to declare Haiti as off limits.
Haiti must succeed.
The Myth Of Western Technology
In the last 50 years, after WW2, the rise of Japan, Korea and China in manufacturing and technology and the Indian software success, have taken away the sheen from the myth of Western technological prowess. Post colonial revisions in history are eroding the euro-centric version of biased history.
For some time, the easy way out seemed to be ‘copycat’ westernisation. One of the first ‘copycat’ states was China. China, led by Sun Yat Sen, (original name Sun Wen and started calling himself Yat-sen; Chinese call him Sun Zhongshan), was the first major power which tried going down the western path. The Japanese invasion of Manchuria sounded the death knell of the Chinese Republic and Monarchy.
China – Mao & Sun
Sun Yat Sen decided to westernise and make China into a Republican democracy. Chinese were made to cut their queue – pleated hair braids. This diktat was enforced in 20 days time. Sun Yatsen and later Mao Ze Dong made the Chinese change their dress styles too. The effect of this westernisation – an enduring sense of being followers. The Chinese add a western name to their Chinese one – Michael Tang, Bruce Lee, Jerry Yang, Tommy Tang, Tommy Chi.
In Hong Kong and Macao, white tourists are royalty. Chinese companies routinely parade White, Western investors – and the Chinese investors follow. Western marriage ceremony, Chinese couples think, is very romantic. The Christian Church wedding is common in China.
Not that Indians are too far behind – consider Steve Sanghi, Paul Parmar, or the best of them all, Bobby Jindal.
Mustafa Kemal Atatürk was ‘installed’ by Western powers. Thereafter, Turkey has lurched from crisis to another. Post WW2, it has mostly been ruled by military dictatorships. From an arbiter in Europe, it has become a supplicant, begging for entry into EU. Instead of the queue in China – it was beards in Turkey. Atatürk enforced a new dress code on the hapless Turks – and the traditional fez was banned. Stop wearing the fez or else …
Russia – Westernising Since Peter The Great
Peter the Great, (of the Naryshkin family) co-ruler of Russia, (along with Ivan of the Miloslavsky family) ruled from 1682-1725. For more than 40 years, his agenda was to create Russia in the Western mould. His travels to Germany, Britain, Sweden (before becoming a Tsar) shaped this agenda.
One of the first things he did after becoming a Tsar was to ask his boyars (Russian nobility) to shave their beards! Catherine The Great continued this during her reign from 1762-1796. For the next 125 years, Russia vacillated between a medieval country and modern western country.
Now, the imprisoned oil tycoon Mikhail Khodorkovsky takes pains to show how Russia is a western nation and should be democracy. Khodorkovsky, who at one time nursed political ambition, says, “…I’m convinced that Russia is a European country, it’s a country with democratic traditions …”
The Anglo-Saxon Country Business Model
These Turkish and Chinese failures down the western garden path is to mistake the trees for the forest. There are five major features of the Anglo-Saxon country model which these countries did not copy. Not that I am recommending that they be copied.
The use of the British East India Company was an eye opener for the rest of the West. After Vasco da Gama’s discovery of trade route to India (for Europeans) round Africa, the British were the first of the block – with the English East India Company formed in the 1600.
The Dutch started soon after with the Vereenigde Oostindische Compagnie (Dutch East India Co.) in 1602. The Danish Opperhoved initially started in 1616 and was reborn in 1732, as Asiatisk Kompagni. The Portuguese organised themselves as chartered company in 1628. The French came with the French East India Co. in 1664. The Swedes joined the rat race in 1731 with Svenska Ostindiska Companiet. The Italians came in as the Genoa East India companies. The Hanseatic League had its own operations.
In North America, the Hudson Bay Company (Compagnie de la Baie d’Hudson in French) was given a Royal Charter in 1670 by Charles II. It practically owned Canada when the Dominion of Canada was formed – and is the oldest surviving company in North America. It monopoly ended only in 1870 – a few years after the Indian Independence War of 1857.
Anglo-American Oil Company (subsidiary of Standard Oil) of Iran plotted the the assassination of Iran’s Prime Minister Haj Ali Razmara and the overthrow of the Mohammed Mossadegh regime. Thereafter, it was the puppet regime of Shah Of Iran which terrorised Iran for 30 years that paved the way for return of Ayatollah Khomeini – and Iran’s regression to medieval times. And who was leading this campaign – Kermit Roosevelt (Teddy Roosevelt’s grandson).
In South America
In 1997, the CIA de-classified papers which admitted it planned and executed the coup in Guatemala – something that was known all along. This was done to protect the interests of the United Fruit Company – which owned large tracts of agricultural land in South America, used South American labour and shipped out fruit to America. Guatemalan farmers were run out of the market.
When Guatemala proposed land reforms so that Guatemalans could prosper in Guatemala, the Government of Jacobo Arbenz was overthrown. By the way, the term Banana republics came into being from the frequent intervention of the US into South American countries – and then ridiculing these countries for instability. To obtain US Governmental intervention, the United Fruit Company engaged services of Edward Louis Bernays (Sigmund Freud’s nephew) as PR front man.
The last 100 years saw the use of these companies as a means to economic dominance. ITT was used in South America for installing and removing dictators
“… ITT papers published by Jack Anderson in March 1972, and in the hearings on these papers conducted by the Senate Foreign Relations Committee a year later. This material establishes that offers of financial aid aimed at stopping Allende were made by ITT president Harold S. Geneen to the CIA in July 1970 and to Henry Kissinger’s office in September” (Foreign Affairs; January 1974).
Had Richard Nixon and Henry Kissinger not responded to International Telephone & Telegraph and Pepsi-Cola by overthrowing Salvador Allende, Chile “would have found a less violent, more constitutional way out of its conundrum.” writes Stephen Kinzer in his book Overthrow: America’s Century of Regime Change From Hawaii to Iraq.
To gain control of the Panama Canal Company, the operator of the Panama Canal, US engineered the secession of Panama from Colombia. With a puppet Government in place, The Hay-Bunau-Varilla Treaty allowed the U.S. to build the Panama Canal. Subsequent interventions to advance Western oil interests in Colombia and the Canal interests in Panama have reduced Governmental authority in these countries. Drug cartels, kidnapping and ransom now control the economy of these countries.
Nearer home, of course, the next ruler of Pakistan (military or otherwise) is decided by US – at least for now.
For the last 150 years, the ABC countries (America, Australia, Britain, Canada) comprising the Anglo-Saxon bloc (countries, colonies and companies) have controlled 90% of the world’s gold production. Till (a large part of) India was a British Colony, they also controlled more than 50% of the above-the-ground gold reserves. This gave them absolute liberty to print depreciating currency and flood the world pieces of paper(called dollars and pounds), manipulate the world financial system and keep other populations poor and backward.
They could capture gold supplies by the annihilation of native populations in America and Canada (‘Red Indians’ are tourist attractions now), killed the aborigines in Australia (and apologise now).
Till the middle of 19th century, raw slavery continued. By mid 19th century new forms of slavery was introduced – indentured labour, share cropping, etc. They re-invented slavery (in the 20th century again) and renamed it as apartheid which made native populations into slaves. They could, of course, truthfully claim that great Anglo-Saxon frontiersmen discovered gold and settled empty continents – in ‘hostile conditions’.
Japan, Korea, Indonesia, Pakistan, Afghanistan, Iraq, Kuwait, most of South America – have been reduced to the situation of client states. The basic position is Uncle Sam knows best – or else! These states have become production centres for the USA, cheap labour will be given an ‘opportunity’ to serve the ‘master’ states.
All these states also have significant military presence of the Anglo-Saxon Bloc which is a matter of concern for India.
Elephants in the room
Western models, which have evolved through the prism of slavery, colonialism, genocide, concentration of power are an end-of-life model. To use end-of-life products may seem like a low cost solution in the short run. The bigger issue in most cases is the lock-in effect that these legacy systems impose on the ‘buyers’ – e.g. Singapore.
The western model of (natural and people) exploitation has runs its course – for instance, in India even salt was made into a high-tax commodity. It is a dead-end model. Parts of this model, have been used successfully by other countries – Japan with its keiretsus and Koreans with their chaebol. But obviously, this is a model that the West is an expert in – and what others copy, the West has finished with. Copycat models allow the west to predict the next steps easily and taken competitive actions with certainty. The answer for others is to create another country model. The only country which has tried this is India.
The Alternate Model
Bharat-tantra, the Indic political system that depends on local justice, low-policing, non-state free-coinage /gold-as-currency, absence of religion, property rights for all, low-tax systems, free-labour (as opposed to slave labour), enterprise instead of employment, wealth-and-property distribution instead of concentration, is the model that has a future – and a record of past success.
India, where non-State reform has played a very major role in crime, policing (JP’s dacoit reform), land reform (Vinoba Bhave’s Bhoodan movement), political change (JP’s Sampoorna Kranti movement). After the economic buffer from Bombay High oil discovery in 1974, the Indian State has certainly, steadily shed various aspects of its colonial legacy. More importantly, India did not go through the slavery-colonialism-capitalism route at all.
It has instead inching towards a republican, (largely) market-driven, democratic, declining role of State, multi-ethnic-religion-linguistic political model which is unique in modern history. What India needs to do is to one decrease the colonial inheritances further. Deliberate amnesia by historians, has obscured Bharat-tantra. India is today slotted as a socialist country – where as it has been reducing the features of a socialist State.
The underestimated and undermined political leadership in India, has worked at renewing the Indian model – which is non-exploitative, stable and can bring equity and growth. It is this model that before others, India (and Indians) should believe in – and beat a modern path for the world to follow.
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