Unit 18 Colonialism: Structure
Unit 18 Colonialism: Structure
Structure
18.1 Introduction
18.2 Approaches to Colonialism
18.2.1 What is Colonialism?
18.2.2 Definition
18.2.3 Basic Features of Colonialism
18.6 India
18.6.1 First Stage
18.6.2 Second Stage
18.6.3 Third Stage
18.1 INTRODUCTION
In the previous Unit, you were familiarized with imperialism as a modern phenomenon
directly related to capitalism. You also learnt how the process of conquest, expansion
and domination brought wealth and prosperity to the economies of the European
countries. This Unit is a discussion of what this process meant to the economy and
society in the colonies. It will provide a definition of colonialism and prepare a typology
of colonies (colonies of settlement and of exploitation, inland colonies and overseas
colonies, colonies under direct rule and colonies controlled only indirectly). It will then
go into a discussion of the stages of colonialism and see how these stages functioned in
different colonies.
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Expansion of Europe South Africa, Australia, Canada were colonies of white settlers whereas India and
Indonesia were colonies exploited economically and politically over centuries. There
was a process of colonization which took place through inland expansion (as in Russia)
while there were many cases of overseas colonization as in the case of China. In this
Unit we shall be studying colonies of exploitation.
Similarly colonization could happen both through direct and indirect rule. Direct rule
meant a colonial state as in the case of India; indirect rule meant control over the politics,
economy and society without taking on the onus for ruling the country as was the case
in China. In this sense, colonialism could be both absolute and partial in terms of
political control. Hence, colonialism and semi-colonialism were different in basics.
In the case of a semi colony like China control was over the economy rather than over
the polity. Also, no one imperial power had a monopoly of control as it was exploited
by many powers unlike the case of India, where it was mainly Britain which retained
absolute political control.
Colonial economy was neither pre-capitalist nor capitalist, it was colonial, i.e., a hybrid
creation. Colonialism was distorted capitalism. Integration with the world economy did
not bring capitalism to the colony. The colony did not develop in the split image of the
mother country –it was its other, its opposite, non-developmental side. Colonialism did
not develop social and productive forces, rather, it underdeveloped them, leading to
contradictions and a movement forward to the next stage.
18.2.2 Definition
Colonialism is the internal disarticulation and external integration of the rural
economy and the realization of the extended reproduction of capital not in the colony
but in the imperialist metropolis.
The first stage had two basic objectives. In order to make trade more profitable
indigenously manufactured goods were to be bought cheap. For this competitors were
to be kept out, whether local or European. Territorial conquest kept local traders out of
the lucrative trade while rival European companies were defeated in war. Thus the
characteristic of the first stage was monopoly of trade.
Secondly, the political conquest of the colony enabled plunder and seizure of surplus.
For example, the drain of wealth from India to Britain during the first stage was
considerable. It amounted to two to three per cent of the national income of Britain at
that time. Colonialism was superimposed on the traditional systems of economy and
polity. No basic changes were introduced in the first stage.
18.4.2 Second Stage: Era of Free Trade
The interest of the industrial bourgeoisie of the metropolis in the colony was in the
markets available for manufactured goods. For this it was necessary to increase exports
from the colony to pay for purchase of manufactured imports. The metropolitan
bourgeoisie also wanted to develop the colony as a producer of raw materials to lessen
dependence on non-empire sources. Increase of exports from the colony would also
enable it to pay for the high salaries and profits of merchants. The industrial bourgeoisie
opposed plunder as a form of appropriation of surplus on the ground that it would
destroy the goose that laid the golden eggs.
Trade was the mechanism by which the social surplus was to be appropriated in this
stage. In this stage changes in the economy, polity, administration, social, cultural and
ideological structure were initiated to enable exploitation in the new way. The slogan
was development and modernization. The colony was to be integrated with the world
capitalist economy and the mother country. Capitalists were allowed to develop
plantations, trade, transport, mining and industries. The system of transport and
communications was developed to facilitate the movement of massive quantities of raw
materials to the ports for export. Liberal imperialism was the new political ideology.
The rhetoric of the rulers was to train the people in self-government.
18.4.3 Third Stage: Era of Finance Capital
The third stage saw intense struggle for markets and sources of raw materials and food
grains. Large scale accumulation of capital in the metropolis necessitated search for
avenues for investment abroad. These interests were best served where the imperial
powers had colonies. This led to more intensive control over the colony in order to
protect the interests of the imperial power.
In the sphere of ideology the mood was one of reaction. The need for intensive control
increased. There was no more talk of self government; instead benevolent despotism
was the new ideology according to which the colonial people were seen as children
who would need guardians forever.
A major contradiction in this stage was that the colony was not able to absorb metropolitan
capital or increase its exports of raw materials because of overexploitation in the earlier
stages. A strategy of limited modernization was implemented to take care of this problem
but the logic of colonialism could not be subverted. Underdevelopment became a
constraint on further exploitation of the colony.
The third stage often did not take off. Colonialism had so wrecked the economies of
some colonies that they could hardly absorb any capital investment. In many colonies
the older forms of exploitation continued. In India, for example, the earlier two forms
continued, even in the third stage. 41
Expansion of Europe
18.5 COLONIALISM IN DIFFERENT TERRITORIES
So far you have seen the general pattern of colonial expansion spread over three stages.
In the next two sections we will take up specific case studies of colonies.
18.5.1 Africa
The conquest of Africa took place in the last decades of the nineteenth century. Till as
late as 1880 only 20 per cent of Africa had come under European rule. With the
spread of the Industrial Revolution to other countries of Europe rivalries increased as
did the search for colonies. The emerging industrial powers looked for a place in the
sun. A continent of over 28 million square km was partitioned and occupied by European
powers by a combination of two strategies, treaties and conquest.
18.5.2 Egypt
Egypt was under the protection of both France and Britain. She became an agrarian
42 and raw material appendage of the metropolitan countries. Two stages of colonialism
were merged into one in Egypt.
Britain developed Egypt as a supplier of cotton for her textile industry. By 1914 cotton Colonialism
constituted 43 per cent of agricultural output. It accounted for 85 per cent of exports in
1913. Being a single crop economy was disastrous as Egypt became dependent on
imports for her essential food supply. The control of foreigners over cotton was total,
from owning or controlling the land it was grown on, the cotton processing and cotton
cleaning industry and the steamships it was transported in. There was not a single mill in
Egypt.
Egypt was also a valuable field of investment of banking capital. Five per cent capital
went into industry and construction, 12.36 into trade and transport and 79 per cent into
public debt, mortgage and banks. Egypt was enmeshed in indebtedness as a result of
exploitation by foreign powers.
The First World War showed up the exploitation of Egypt fully. Her natural resources,
manpower and economy were harnessed to the war effort. Crops were seized by the
army. The British Treasury took over the gold reserves of the National Bank of Egypt.
Egypt became a British protectorate in 1914.
18.6 INDIA
India has generally been considered a classic colony. A study of colonialism in India
can tell us a great deal about the functioning of colonialism in general. Let us see how
the different stages of colonialism operated in India.
18.6.1 First Stage
In the first stage both the objectives – the monopoly of trade and appropriation of
government revenues – were rapidly fulfilled with the conquest first of Bengal and parts
of South India and then the rest of India. The East India Company now used its political
power to acquire monopolistic control over Indian trade and handicrafts. Indian traders
were ruined while weavers were forced to sell cheap. The company’s monopoly ruined
the weavers. In the next stage cheap manufactured goods finished them.
The drain of wealth was admitted to by British officials. In the words of the Deputy
Chairman of the Court of Directors, “Our system acts very much like a sponge, drawing
up all the good things from the banks of the Ganges and squeezing them down on the
banks of the Thames.”
The colony did not undergo any fundamental changes in this stage. Changes were made
only in military organization and technology and at the top level of revenue administration.
Land revenue could be extracted from the villages without disturbing the existing systems.
In the sphere of ideology too there was respect for traditional systems in contrast to the
denunciation of traditional values in the second stage. The respect with which Sanskrit
was held by British Indologists like William Jones was in sharp contrast to Macaulay’s
later dismissal of traditional learning as not being enough to fill a bookshelf of a good
Western library.
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Expansion of Europe 18.6.2 Second Stage
The era of free trade saw India emerge as a market for manufactured goods and a
supplier of raw materials and food grains. Import of Manchester cloth increased in
value from 96 lakh sterling in 1860 to 27 crore sterling in 1900. Traditional weavers
were ruined by this competition. Rather than industrialization, decline of industry or
deindustrialization took place. In the middle Gangetic region, according to historian
A.K. Bagchi, the weight of industry in the livelihood pattern of the people was reduced
by half from 1809-13 to the census year 1901.
Estimates by Sivasubramaniam indicate that in the last half century of British rule per
capita income in India remained almost stagnant. Dadabhai Naoroji calculated per
capita income at Rs.20 per annum.
Railway expansion was undertaken and a modern post and telegraph system was set
up. Administration was made more detailed and comprehensive so that imports could
penetrate the villages and raw materials could be taken out easily. Capitalist commercial
relations were to be enforced. The legal system was to be improved so as to ensure
upholding the sanctity of contract. Modern education was introduced to produce babus
to man the new administration. Westernized habits were expected to increase the demand
for British goods.
Transformation of the existing culture and social organization required that the existing
culture be denounced. Orientalism, by depriving people of the power to study their
own languages, was an appropriation of the processes by which people understand
themselves. The new ideology was one of development. Underdevelopment was not
the desired but the inevitable consequence of the inexorable working of colonialism of
trade and of its inner contradictions.
The impression of the unshakable foundations of British rule, the aura of stolidity and
general prestige of the Raj contributed towards the maintenance of imperial hegemony.
The prestige of the Raj, by showing the futility of attempts to overthrow it, played as
crucial a role in the maintenance of British rule as the armed might behind it. The
prestige of the Raj was very largely embodied in its much vaunted ‘steel frame’, the
Indian Civil Service (ICS), and, more specifically, in the district officer, who represented
authority in the countryside: “At the centre of the ‘benevolent despotism’ that British
rule in the subcontinent adopted stood the steel frame of the Indian Civil Service... and
in particular the figure of the district officer himself, the physical ‘embodiment of
Government’ across the Indian countryside...”
A state structure of this kind, based on “semi-hegemonic foundations”, called for certain
specific policies in the political sphere. A reliable social base for the state had to be
secured on the one hand; on the other, strategies had to be devised to limit the social
reach and effective clout of the anti-imperialist forces. Active cooperation of ‘native
allies’ in running the country was gained by a variety of techniques, ranging from the
handing out of jobs, favours and positions of some authority to concessions to the
‘legitimate’ political demands of the loyalist and liberal sections. As regards the
snowballing of anti-British discontent, it was sought to be neutralized by confining it
within the constitutional arenas created by the political reforms. Constitutional
concessions were regularly made, though under pressure, to the demands raised by the
anti-imperialist forces. 45
Expansion of Europe
18.8 COLONIALISM OR COLONIALISMS?
If we look at British and French colonial rule it is clear that they are informed by different
perspectives though often the reality on the ground amounted to the same. Some scholars
point to this fact of the same reality on the ground to argue that all colonialisms were the
same. For example, historian D.A. Low disagrees with the view that there were different
patterns of colonialism on the ground that British and French colonies achieved
independence at the same time. In this section the existence of different patterns of
colonialism is discussed.
Wallerstein would have it that there was a basic paternalism which ran through the
philosophies of all the colonial powers. But this basic paternalism expressed itself in
very different forms, depending on the history and national character of the colonial
powers.
From the beginning there was a sparseness and economy about British colonial policy.
The British used trading companies to acquire colonies, insisted that colonies be self-
sustaining and varied the political structure in each of the colonies to suit local needs.
“This, then, is the classic contrast between Africa’s two colonial powers, Britain and
France: Britain – empirical, commercial, practising indirect rule, keeping Africans at a
distance, verging on racism; France – Cartesian in its logic, seeking glory, practicing
direct administration, acting as apostle of fraternity and anti-racism. Anyone who travels
in both British and French Africa will see the grain of truth in these generalizations. The
flavor of life is different; the two colonial governments have produced two different
cultures. And yet, anyone who travels there well knows the severe limitations of these
generalizations.”
In practice the differences were not so clear. The French often supported chiefs where
they were powerful rather than rule directly. As for ‘empiricism‘ versus ‘Cartesian
logic’, this comparison is more the stuff of polemics than of analysis.
To contrast motives of money and glory seems even more dubious. For the British
were surely proud of their empire, and the French surely profited by theirs. As for
‘racism’ and ‘fraternity’, it may be that French paternalism was based on the exclusive
virtue but universal accessibility of French civilization and British paternalism on the
equal virtue of all traditions but the unique accessibility of British culture. Nevertheless,
in practice, there were parallel degrees of political, social and economic discrimination
in two settler territories like Kenya and Algeria, and there were parallel ideologies
among the settlers. There was also parallel absence of legal discrimination in non settler
British and French West Africa, though until 1957 the exclusive white clubs of both
areas barred Africans as members or as guests. There were differences also regarding
the role of the civil service. In Britain civil servants were nonpartisan whereas in France
junior civilians were political. But after independence this made little difference.
No clear distinction can be made between French direct rule and English indirect rule
which allowed traditional institutions to survive when we look closely at the actual
working of administration. Fieldhouse has shown that after 1929 and especially after
1932 attitudes and practices came closer together.
18.9 SUMMARY
Colonialism is as modern a historical phenomenon as industrial capitalism. While the
metropolis experiences growth under capitalism the colony undergoes
underdevelopment. Colonialism is more than foreign political domination; it is a distinct
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social formation in which control is in the hands of the metropolitan ruling class. In short, Colonialism
colonialism is what happened in the colony and imperialism is what happened in the
metropolis.
18.10 EXERCISES
1) Define basic features of colonialism. How is it different from imperialism?
2) What are different approaches to the understanding of colonialism?
3) What were the different historical stages of colonialism? How did it impact the
Indian economy?
4) Can one talk of different types of colonies rather than one single colonialsm?
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