Saturday, December 21, 2024

The Post-Colonial Hangover – World System Theory

Empire to Imperialism to Colonialism to Neo-Colonialism with an introduction to World System Theory:

To understand Colonialism, it is pertinent to understand certain definitions clearly (source Etymology.com):

1. Empire -‘territory subject to an emperor's rule’.

2. Imperial - pertaining to an empire, having a commanding quality.

3. ImperialismImperialism is a depraved choice of national life, imposed by self-seeking interests which appeal to the lusts of quantitative acquisitiveness and of forceful domination surviving in a nation from early centuries of animal struggle for existence. Its adoption as a policy implies a deliberate renunciation of that cultivation of the higher inner qualities which for a nation as for an individual constitutes the ascendency of reason over brute impulse. It is the besetting sin of all successful States, and its penalty is unalterable in the order of nature. [J.A. Hobson, "Imperialism: A Study," London, 1902].

J.A. Hobson view is that adoption of imperialism as a policy a nation is choosing to abandon the development of higher values like reason, morality, and compassion, which should guide a society’s actions. Instead, it focuses on force and domination. This approach is seen as a flaw of all powerful nations, and the consequences of pursuing imperialism are harsh, according to the natural order of things. It’s driven by selfish desires for power, control, and material wealth, which are rooted in the survival instincts of early human history, when people fought for basic survival. He was not wrong, take a moment to step back from your lives and judge for yourself. Having done it, we have no choice but to step right back into it because at this very moment there are no other alternatives.

4. Colony - company or body of people who migrate from their native country to cultivate and inhabit a new place while remaining subject to the mother country.

5. Colonialism - the system of colonial rule by an imperialist.

6. Neo-colonialism – A new form of passive colonialism and is defined as the exertion of influence or control over other nations, especially former dependencies, without direct military or political control. Neo-colonialism operates through numerous indirect controls of a former colony which was under direct military and political control. 

Any form of direct or indirect control by nations lead to several theories because one nation is stronger and the other weaker (dependent). To understand this structure I introduce World System Theory (WST) whereby semi-periphery and periphery nations are dependent on core nations even to validate their own cultural practices (quite evidently seen in India). It almost appears nowadays that the people of Bharat following a rich culture seek to validate their system of knowledge which is already has foundation on practical knowledge in many instances (I am not speaking here about superstitions) are critiqued therefore they seek validation by the West (Core nations - US, UK, Australia, Canada, (richer countries in Europe) Germany, France, to name a few). In the modern context, Core Nations (read below), export ideas into semi-periphery and periphery nations impacting societal (cultural) structural changes to imitate and align with the West - meaning, societies in East is irrelevant/obsolete and the West is superior/relevant.


World System Theory (WST):

Prior to evaluating colonialism further, it is important to note here the framework developed by Immanuel Wallerstein (Sociologist) in 1974. World-Systems Theory (WST) offers a comprehensive framework for understanding structure of world’s societies in the historical and modern context. It captures the global interplay of power, economy, politics, arts, religion and culture. By understanding this theory, themes such as colonialism, economic dependency, cultural hegemony, historical struggles to name a few become very clear. The system is relevant in the modern world as an indirect system of control by core nations by exporting, in our context, critical theories, using a group of elitist as platform to continue indirect control of society, education, culture, religion, science, arts, politics, to name a few (to be discussed in future blogs).

At its core, WST divides the world into three interdependent zones: the core, semi-periphery, and periphery, explaining how economic, political, military, technology, arts, educational, trade, religion, cultural (to name a few) dominances are structured and perpetuated.


Core, Periphery, and Semi-Periphery

1. Core Nations: These are economically dominant, industrialised nations with advanced technology, capital accumulation, and strong state institutions. Core nations control global production chains and reap disproportionate benefits from trade and labour.

Example: Europe during the colonial era represented the core, leveraging industrialisation and colonial markets to consolidate its dominance.

In the modern context as a result of globalisation, the Core Nations have shifted from direct influence to indirect influence in retaining dominance within cultural, trade, technology, educational (brain drain), political structures, media, to name a few. The home culture, in context, seeks validation by the West to accept its own knowledge built over the years - a classical example of colonisation of the mind due to critiquing theories to show their dominance over an age old tradition and culture. Whilst there are, as I have said before, innate issues to be resolved is another matter similar to in Europe or the USA where societies are not without problems.

2. Semi-Periphery Nations: These occupy an intermediary position, exhibiting characteristics of both core and periphery. Semi-periphery nations often act as buffers, mitigating tensions between the core and periphery. They may aspire to core status but remain reliant on core nations for manufacturing, technology and investment with a large gap between the rich and poor with a concept of dependancy theory. where resources (of all forms) flow from semi-periphery nations to core to keep the core nations wealthy, in power and dominance. It is linked to modernisation theory of promoting liberal democratic societies by dismantling traditional institutions and structures.

Example: Post-independence India transitioned into a semi-peripheral role, with economic liberalisation in the 1990s allowing for significant industrial and technological growth. However, reliance on Western markets and multinational corporations underscores its continued semi-peripheral status.

As India aspired to become a semi-periphery nation, it was made to believe it had to let go of traditional systems, culture, art, poetry, economics, political views of its own and being subjugated by Europeans politically India adopted European structures of parliamentary system, constitution, and other institutions including retaining colonial symbols to retain their power of dominance over the Bharatiya.

Whereas modern India is being shifted towards material pursuits, the adhyaatmik (loosely translated as spiritual/the self - there is no direct translation for the sanskrit word aadyatmik in English) and moral obligations are left behind. Society is evolving and progressing materialistically, however, not in a balanced approach noting responsibilities to the environment, to fellow humans, the natural forces of the Earth, being grateful for where we are, to name a few.

3. Periphery Nations: These nations primarily provide raw materials, cheap labour, and markets for core nations. They are economically dependent and politically weaker, making them vulnerable to exploitation and manipulation.

Example: Colonial India was relegated to the periphery, supplying raw materials like cotton and indigo while importing finished goods from Britain. This economic dependency ensured limited industrial growth and suppressed local innovation.

India was a periphery because of weak government & institutions, large population, less industrialisation, targeted by East India company to exploit resources, to name a few.

Should India aim for Core Nation status?

It is important to note here, in my view, that as long as the Bharatiya spirit (Spirit of Dharma) is present, Indians become aware of European social studies, actively recognise how it erodes away the great pluralistic and integrated culture of Bharat, the aim of Indians should be use the positives that arise from these critiquing with a view to develop/re-shape society the Bharatiya way rather than adopting the European way. Whilst the best solution is to generate ideas internally from Bharat and export to the world as we have seen the India way of life is integrated, pluralistic and beneficial for all such as the world view for peaceful living – as the saying goes, Vasudaiva kutumbakam – The entire world is one family, however, if we are to import that the ideas are filtered and shaped for the Indian context and society recognising that law, politics, music, arts, poetry, economics, military, philosophy, culture, education, etc are not a consequence of colonisation. There were and are innate to India.

More to follow as we continue the path to unpack western theories with an intent to grasp a view of Modern Indian society (Where we are now and where do we want to go?), if you remember my first blog on identity - it is important to understand the context, what is happening to us prior to recognition and a drive to act using indegenous ideas to move society forward for the welfare of all....

This leads us towards colonialism and Neo-Colonialism to be explored further in the next blog....thanks for reading.

The views presented above (and all my blogs) are as a result of my understanding and knowledge of these theories, I am happy to receive your constructive feedback and amend as required.


Thursday, December 12, 2024

The Post-Colonial Hangover – Introducing (Western) Critical Theories – Setting the Context

Early Western political, social, and philosophical theories, particularly those developed during the Renaissance and Enlightenment, emerged as a reaction against Christianity and the religious orthodoxy of the time. These periods saw a profound questioning of religious dogma and the so-called universal truths promoted by Christian theology. Thinkers began to challenge the dominance of religious doctrine, seeking to replace it with rational inquiry and scientific exploration.

A scientific approach often begins with a theory, and as Western intellectuals sought to refute and critique religious (Christian) dogma, they began to develop theoretical frameworks to understand society, politics, arts, and culture. These theories, deeply rooted in the Western historical and cultural context, were tailored to address specific challenges and crises within Europe. However, due to colonialism and post-colonial hangovers, these frameworks have found their way into India for both political gains and to undermine Hindu religion which is fundamentally distinct to Christianity.

As an example, to maintain the context, amongst other differences and whilst Christianity and all abrahamic faiths are belief systems (blind acceptance is required to become part of the faith), Hinduism begins and encourages 'doubt'. Mimamsa shastra commences with doubt (samshayam). It took 700 shlokas, as the Srimad Bhagavad Gita, even for The Blessed Lord Sri Krishna to convince Arjuna to pursue the path of Dharma. There are several samvāda (conversations/discussions with doubts raised) in the shastra such a Vidura-Dhridhrāshtra samvādaViśvamitra & The Chandala samvādaSulabha & Janaka samvāda, even the upanishads promote doubts and discussions such as Maitreyi-Yajnavalkya samvāda in Brihadaranyaka Upanishad to name a few.

Hindu cultural system encourages doubt, we were revealed by Sage Gautama The Nyāya shastra (the science of debating) even before the West accepted the Earth was not flat. Hindus, traditionally, find an answer to a societal problem (through doubts, debates and discussions from within) that is suited for our culture and that is already how the Hindu culture has evolved. 

In India, certain actors—often influenced by a fascination with Western ideologies—have adopted and applied these theories, often for personal or political gains. This has resulted in an attempt to impose Western theoretical models onto a cultural system that is different. The values and assumptions embedded in these theories, rooted in Christianity and Western cultural systems, do not align with the pluralistic and integrative framework of Hinduism or the socio-cultural dynamics of Indian society.

Unfortunately, many of these theorists or their followers, rather than developing frameworks tailored to the Indic ethos, have chosen to import and superimpose Western ideas, often without critical analysis of their applicability. It is, therefore, my duty to unpack and critically examine these theories, providing insights (in my view) that may benefit individuals seeking to understand and engage with Indian society from a more authentic perspective. Whilst there may be a few works that attempt similar analyses, they are relatively scarce, and the need for more such efforts is urgent.

The application of Western theories to Indian systems often fail to account for the complexities of India’s diverse and evolving landscape, encompassing politics, religion, culture, arts, and more. This article seeks to introduce several significant Western theories, briefly explore their historical contexts, and analyse how they have been applied in India, often to serve political agendas. It also examines how consumerism, mass media, and education play influential roles in shaping ‘Grand Narratives’, further entrenching these theories in Indian discourse.

Based on my research so far, it is becoming evident that the West found it necessary to break away from religious dogma, as it was often not grounded in scientific inquiry and, in many cases, contradicted reality. The shift was crucial for their progress and development. However, whilst no society is without flaws, certain importers of Western thought in India, influenced by Western critiques, have, in my view, uncritically imported these frameworks into the Indian context without considering cultural misalignment. This lack of independent thought is unfortunate and regrettable. India has always had great thinkers and reformers, such as Sri Ramanujar and Adi Shankarar, who have demonstrated how transformative change can be achieved from within the culture itself, fostering progress and growth without losing cultural essence.

My work has finally commenced, after a long break, as I intend to analyse the following theories that appear to impact not just the political landscape in modern India also society as a whole, culture, arts, education/intellect and practices:

1. Communism, Marxism and Cultural Marxism

2. Orientalism

3. Modernism

4. Post-Modernism

5. Formalism, Structuralism and post-Structuralism

6. Nihilism and Skepticism

7. Critical Race Theories not limited to Feminism (Western) and Wokeism

8. Use of consumerism and mass-media to progress their 'Grand Narratives'

9. Western Geopolitical dominance as a result and the educational system

The Pav-Bhaji Analogy: Now imagine you’re making Pav Bhaji, and after completing the dish, you feel it doesn’t quite meet your expectations. An expert in European cuisine, unfamiliar with Pav Bhaji, tastes it for the first time. Based on its appearance and texture, they compare it to Arrabbiata (Spicy tomato) sauce & its Italian spices, then critique it with Arrabbiata in mind, rather than evaluating it as Pav-Bhaji. If the Indian chefs begin to believe the Pav-Bhaji should taste like spicy Italian tomato sauce then we have a problem.

Think of each of the aforementioned theories as European/Western food or their ingredients being used to critique Indian cuisine.  This is precisely what happens when Western theories (ingredients), developed in entirely different contexts, are applied to critique (Eastern) Indian systems without accounting for their distinct and unique foundations. 

Why a Westerner, unfamiliar with Indian cuisine, is critiquing Pav-Bhaji is altogether another related very pertinent matter. Having said that, it is understandable when Europeans/Westerners, unfamiliar with Pav Bhaji, critique it expecting it to resemble Arrabbiata due to their lack of knowledge. However, what can be said about Indians who join in this critique, judging their own dish by the standards of something it was never meant to be?

May the gods provide me with intellect, insight, time and resources to pursue and complete this project defending the Universal Principles, ethics and culture also known as Sanātana Dharma (or what we generally now call 'Hinduism' but for our understanding can also be taken to include Jainism and Buddhism noting they are both indigenous to Bharat/Indian school of thought).

More to follow.....

Sunday, January 14, 2024

Tamil Nadu fiscal performance & risks with an introduction to Chanakya’s arthashāstra on public finance

Written by AK, Australia 

Historical setting:

Chanakya or Kautilya or Vishnugupta, according to several sources, was an amātya (minister/royal advisor) in the city of Takshashīa in ancient Bhāratavarsha (India), modern day Taxila, northwest Pakistan. It is said that the city was originally founded during the period of Rāmāyana by Lord Rama and Bharatā. Mandavi, wife of Bharata, gave birth to two sons – Taksha and Pushkala. Bharatā named the city of Takshashīla after his son Taksha who later ruled the kingdom. Many years after, the great ācharya Chanakyā became the minister (it is unknown whether ācharya Chanakya was born in Takshashīla or not) to the king during the Maurayan empire.

 

Works of Chanakya:

Chanakyā was an expert in the fields of philosophy, economics, political science, military craft, law, regional and international diplomacy, governance and state strategy, a teacher, author, and a royal advisor/minister. He also is said to have been a great visionary thinker and one of the early thinkers of Bhāratam as quoted in Vishnu Puranam (see my first blog on identity).

His two great works are:

1. Kautilya’s arthashastra – A guidance to responsible governance, resource optimisation and effective fiscal/monetary policies notwithstanding other flavours from his expertism as stated above.

 2. Chanakya nītī / sutra – Non-prescriptive but concise expressions of general principles and truths for an ideal way of life as per ancient Indian tradition during his time (a time without internet, fossil fuels, population, technology, automobiles, etc), therefore, some of which are relevant today and some maybe not so much.

Chanakya sutra (advise to the king):

1. Sukhasya mūlam dharmam – The root of a kingdom’s happiness is in ethical/proper conduct.

 2. Dharmasya mūlam artha: - A healthy financial status ensures discharge of right duties and ethical conduct.

 3. Arthasya mūlam rājyam – State’s welfare is rooted in good finance.

Whilst a detailed analysis based on arthashastra is not intended, it is, however, pertinent to note the importance of finance in developing the state. The intent is to articulate the need to shift political dimension of Tamil Nadu (TN) from caste, language and religion towards economic and financial aspects of government policies and their performance to improve a voter’s awareness/maturity in decision making and for discussions with government.

Arthashastra (encourage readers to deep dive) - 2nd Adhikaranam (Book II), 8th adhyāya (8th chapter) concerns about finances and rules:

1. Koshapurvā: sarvāramba: | Tasmāt purvakosham veksheta|| - Attention shall be paid to finance as all undertakings depend on it.

2. Pachārasamrridhi:…….koshavriddhi: || - Growth of (state’s) wealth, good conduct, capture of thieves, supporting government employees, harvest growth and management, prosperity of commerce, safeguarding during calamities, taxes and incomes, are favourable for financial prosperity.

3. Pratibandha:….koshashaya: || - Restrictions, matters of loans and interest payables, loss of revenue and fabrication of accounts, self-enjoyment, barter system and misappropriation of funds result in depletion of money.

The chapter provides guidance on financial structure.

It is evident from these works that complex systems of finance was in place during ancient times in India. It is important to note this contribution before a system of finance was known to the West. Chanakya details plans for an optimum economic condition considering demand/supply, tax structure, loans, interest rates (recommends different rates for commercial and personal), profits, revenue & managing debts, inventory management, to name a few. 

Having laid the foundation/history that public financial performance and management was important to ancient Indians, it is prudent to become knowledgeable of modern day State finances. On that note, a look at TN's fiscal performance using basic indicators and ratios with references accessible for a common citizen without knowledge of complex financial concepts and models.

TN’s fiscal analysis:

Discussions around TN’s fiscal policies, generally speaking, stop at GSDP (Gross State Domestic Product). To absorb a full view of a state’s financial conditions certain other parameters are importantly, needless to say, liabilities.

TN Finance Minister’s quote from TN Budget 2021 white paper, in Ref 1, “The fiscal situation of the State is in dire circumstances, in part due to extraneous circumstances, but in substantial measure due to structural flaws in governance which have not been rectified in a timely manner……Business-as-usual cannot continue, and our approach must fundamentally change if we are to break out of this vicious cycle of increasing debt and interest costs.”

In relation to above, Reserve Bank of India (RBI) published a document named State finances: A Risk Analysis, in Ref 2, that provide Debt to GSDP (Gross state domestic product) ratio, interest payments to revenue receipts (IP-RR) ratio, revenue deficit, overall risk rating of state governments and debt to GSDP ratio forecast to estimate financial performance of States.

1. Debt to GSDP ratio 

a.     Between 32.5% and 33% of GSDP.

b.     15th finance commission provided above indicative targets, in Ref 3, Chapter 12, para 12.65 for Debt to GSDP ratio for State Governments 2020 to 2026.

2.  RBI has set, in Ref 2, interest payment to revenue receipts (IP-RR) ratio at 10%

3. Revenue deficit to GSDP ratio ideally at 0%. A -ive ratio is good financial condition and +ive deficit ratio is worse financial state.

4. RBI provided overall risk rating.

5. Forecast to 2025/26 of debt to GSDP ratio to enable State Governments to re-engineer their finance.

In Ref 2, TN’s financial condition is as below (in comparison to other major states):

Financial condition

Tamil Nadu

Bihar

Karnataka

Gujarat

Maharashtra

Debt-GSDP Ratio (2021-22 RE)

27.4%

38.6%

26.6%

19.0%

17.9%

IP-RR Ratio

21.0%

8.6%

14.3%

14.2%

11.4%

Revenue Deficit-GSDP Ratio

2.5%

5.5%

0.4%

0.0%

1.0%

Overall Risk Rating (Bail out including DISCOM to GSDP)

5.2

0.8

1

0

1

2025/26 Forecast of Debt-GSDP Ratio

31.0%

31.2%

22.6%

16.6%

18.6%

Reasons for overall risk rating above for TN, as per RBI report in Ref 2, are possible high inflation within the state, rising yield and distribution of freebies.

 

Conclusion:

Despite RBI’s indicators, TN’s budget for 2023-24, in Ref 4, include an increase of 52% from previous year in social welfare (a budget of 26,614Cr for 2023-24) with reduction of urban development (Chennai Metro Development Authority) by 19% leaving only Rs. 8,331 Cr for 2023-24, reducing rural development by 3% and reducing energy by a massive 53%.

Few points to consider:

Are State finances managed by competent minister?
Are the right policies in place to improve financial performance and to promote growth?
What should be government priorities and focus to improve financial condition whilst balancing budget across all sectors?

It is envisaged that this blog provided useful insights to financial performance of a State, inspired by the great Chanakya of Takshashilā, and that it leads to discussions on financial matters of the state especially during elections. Referring to Chayankya arthashastra, policies/schemes should find an optimum balance across sectors: urban development/infrastructure, energy, social welfare, education , etc to be effective as the world looks to India for opportunities to invest and do business.

For those interested, I have added, in Ref 5, – RBI’s handbook of statistics on Indian Economy.

 

References:

1.     White Paper on Tamil Nadu Government Finances: https://tnbudget.tn.gov.in/tnweb_files/white_paper_2021_english.pdf

2.     RBI - State Finances: A Risk Analysis - https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=21070

3.     Finance Commission report : https://fincomindia.nic.in/writereaddata/html_en_files/fincom15/Reports/XVFC%20VOL%20I%20Main%20Report.pdf

4.     Tamil Nadu Budget Analysis 2023-24: https://prsindia.org/budgets/states/tamil-nadu-budget-analysis-2023-24

5.     Handbook of Statistics on Indian Economy: https://www.rbi.org.in/Scripts/AnnualPublications.aspx?head=State%20Finances%20:%20A%20Study%20of%20Budgets