Outsourcing Unrest

...puts a whole new perspective on Third World 'debt'...

'The great British adventure – three centuries spent pillaging the labour, wealth and resources of other countries - is over. We cannot accept this, and seek gleeful revenge on a government which can no longer insulate us from reality.'

Excerpt from George Monbiot's Guardian column, 9 June 2009

'I believe that the current political crisis has little to do with the expenses scandal, still less to do with Gordon Brown’s leadership. It arises because our economic system can no longer extract wealth from other nations. For the past 300 years, the revolutions and reforms experienced by almost all other developed countries have been averted in Britain by foreign remittances.

The social unrest which might have transformed our politics was instead outsourced to our colonies and unwilling trading partners. The rebellions in Ireland, India, China, the Caribbean, Egypt, South Africa, Malaya, Kenya, Iran and other places we subjugated were the price of political peace in Britain. Following decolonisation, our plunder of other nations was sustained by the banks. Now, for the first time in three centuries, they can no longer deliver, and we must at last confront our problems.

There will probably never be a full account of the robbery this country organised, but there are a few snapshots. In his book Capitalism and Colonial Production, Hamza Alavi estimates that the resource flow from India to Britain between 1793 and 1803 was in the order of £2m a year, the equivalent of many billions today. The economic drain from India, he notes, “has not only been a major factor in India’s impoverishment … it has also been a very significant factor in the Industrial Revolution in Britain.” As Ralph Davis observes in The Industrial Revolution and British Overseas Trade, from the 1760s onwards India’s wealth “bought the national debt back from the Dutch and others … leaving Britain nearly free from overseas indebtedness when it came to face the great French wars from 1793.”

In France, by contrast, as Eric Hobsbawn notes in The Age of Revolution, “the financial troubles of the monarchy brought matters to a head.” In 1788, half of France’s national expenditure was used to service its debt: “the American War and its debt broke the back of the monarchy”.

Even as the French were overthrowing the ancient regime, Britain’s landed classes were able to strengthen their economic power, seizing common property from the country’s poor by means of enclosure. Partly as a result of remittances from India and the Caribbean, the economy was booming and the state had the funds to ride out political crises. Later, after smashing India’s own industrial capacity, Britain forced that country to become a major export market for our manufactured goods, sustaining industrial employment here (and avoiding social unrest) long after our products and processes became uncompetitive.'