By S. Ambirajan
This booklet examines the influence of Classical political economic system - the industrial and fiscal writings of Adam Smith, Ricardo, Malthus, the turbines and others - at the policy-making of the British govt in India within the past due eighteenth and 19th centuries. Professor Ambirajan indicates how the commercial doctrines of laissez-faire individualism and the liberty of industry forces have been instilled into the British administrative category. The East India Company's university at Haileybury used to be the obvious agent however it is obvious complete nexus of taught and subconscious attitudes predisposed the directors to just accept the tips and ideologies of the economists.
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Extra resources for Classical Political Economy and British Policy in India
54 In their anxiety to counter the forcefully varied pleas of the free traders, Footnote 49 continued (London, 1812), p. 6. See also for an extreme view on Adam Smith, Robert Grant, The Expediency Maintained of Continuing the System by which the Trade and Government of India are now Regulated (London, 1813), pp. xii—xiii. 50 Fabius, A Letter to the Rt. Honble. The Earl of Buckinghamshire, p p . 2 5 - 6 , David M a c p h e r s o n , The History of the European Commerce With India (London, 1812), q u o t e d o n 51 52 53 54 P- 349Substance of a Speech in the Committee of the House of Commons ( L o n d o n , 1813), p .
Adam Smith had demonstrated that monopoly as practised by the East India Company was not only against good political economy but also against national prosperity. He was no internationalist,23 and it is his distinct nationalism draped in the diaphanous veil of political economy that made the Wealth ofNations immediately very popular and led to its being used as a weapon to attack the privileges of the East India Company. Although the break up of the Company's monopoly of trade with India started in 1793, it was not until the 1813 Charter that the monopoly was removed and only in 1833 that the commercial functions of the Company ceased.
G. g. Lord Liverpool) were converted to political economy, we cannot argue that the acceptance of the new principles of political economy alone was responsible for the abolition of the Company's monopoly. There were other valid reasons that made the end of the monopoly inevitable. 68 However because a quantitative evaluation of the influence of ideas is not possible, they are often underestimated. Nevertheless, it is clear enough that in this case economic ideas (as distinct from a particular school of thought) were used in the arguments - both for or against.