Model Answer
0 min readIntroduction
Laissez-faire, a French term meaning “let do” or “let pass,” refers to an economic philosophy advocating minimal governmental interference in the economic affairs of individuals and society. In 19th-century India, this policy was aggressively implemented by the British colonial administration, fundamentally altering the existing economic structures. While proponents argued it would foster economic growth, its application in India, coupled with exploitative land revenue systems and a focus on raw material extraction, created conditions ripe for devastating famines. This answer will examine how the laissez-faire policy, rather than mitigating, actively contributed to the severity and frequency of famines in late 19th-century India.
The Implementation of Laissez-Faire in India
The British East India Company, and later the British Crown, adopted a laissez-faire approach to Indian economic policy after the 1857 Revolt. This involved dismantling traditional economic safeguards and promoting free trade, primarily to benefit British industries. Key aspects included:
- Abolition of Traditional Industries: Policies like high tariffs on Indian textiles entering Britain and the encouragement of machine-made goods led to the decline of indigenous industries, increasing unemployment and economic vulnerability.
- Land Revenue Systems: The introduction of systems like the Permanent Settlement (Bengal), Ryotwari (Madras), and Mahalwari (North-Western Provinces) focused on maximizing revenue extraction, often exceeding the capacity of peasants to pay, leading to indebtedness and land alienation.
- Free Trade in Agricultural Commodities: India was integrated into the global market, with agricultural commodities like wheat and cotton being exported even during periods of scarcity. This drained food supplies from the local market, driving up prices.
- Minimal Government Intervention: The colonial government largely refrained from intervening in the market to regulate prices, store grain reserves, or provide famine relief, believing it would distort the ‘natural’ workings of the economy.
Famines and the Laissez-Faire Policy: A Chronological Analysis
Several devastating famines occurred in India during the late 19th century, directly linked to the laissez-faire policies:
The Orissa Famine (1866)
This famine, affecting the coastal regions of Orissa, was exacerbated by the export of rice to Britain despite local shortages. The government’s reluctance to impose restrictions on trade or provide substantial relief contributed to an estimated 1 million deaths. The Famine Commission of 1866, while acknowledging the role of trade, largely upheld the principles of laissez-faire.
The Rajputana Famine (1869-70)
Similar to the Orissa famine, the export of grain continued even as food prices soared in Rajasthan. The government’s response was slow and inadequate, with a focus on providing employment through public works projects that offered meager wages.
The Great Famine of 1876-78 (Southern India)
This famine, affecting Madras, Mysore, and Hyderabad, was particularly severe. Millions of acres of land were affected by drought, and the government’s adherence to laissez-faire principles prevented effective intervention. Large-scale grain exports continued, and relief efforts were hampered by bureaucratic delays and insufficient funding. The famine led to an estimated 5.5 million deaths. The Strachey Commission (1878) was appointed to investigate, but its recommendations were largely focused on improving administrative efficiency rather than challenging the underlying laissez-faire approach.
The Indian Famine of 1896-1900 (Uttar Pradesh, Punjab, Rajasthan)
This famine, spanning several years, affected a vast area of northern India. Despite warnings of impending drought, the government continued to allow grain exports, and relief measures were inadequate. The famine highlighted the vulnerability of the Indian peasantry to market fluctuations and the lack of social safety nets.
The Consequences of Laissez-Faire
- Increased Vulnerability: The disruption of traditional economic systems and the integration of India into the global market made the Indian economy more vulnerable to external shocks and fluctuations in commodity prices.
- Decline in Food Security: The prioritization of cash crops for export over food crops led to a decline in food security and increased dependence on market forces.
- Exacerbated Inequality: The land revenue systems and the decline of traditional industries exacerbated economic inequality, leaving the peasantry more vulnerable to famine.
- Lack of Famine Preparedness: The government’s reluctance to invest in famine preparedness measures, such as grain reserves and early warning systems, contributed to the severity of the famines.
The famines were not simply natural disasters; they were socio-economic catastrophes significantly worsened by the deliberate policies of the British colonial government. The adherence to laissez-faire principles, prioritizing British economic interests over the welfare of the Indian population, played a crucial role in transforming localized food shortages into widespread, devastating famines.
Conclusion
The laissez-faire policy, while theoretically promoting economic freedom, proved disastrous for India in the late 19th century. Its implementation led to the dismantling of traditional economic safeguards, the exploitation of agricultural resources, and a callous disregard for the welfare of the Indian peasantry. The recurring famines of this period stand as a stark reminder of the human cost of prioritizing economic ideology over humanitarian concerns. A more interventionist approach, focused on food security, famine preparedness, and equitable land revenue systems, could have mitigated the suffering and prevented the immense loss of life.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.