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Navigating Financial Challenges in Sourcing: The Role of a Reliable Sourcing Agent

navigating-financial-challenges-sourcing

In today’s global marketplace, sourcing products from overseas has become a common practice for businesses seeking competitive advantages. However, international sourcing can present significant financial challenges, especially for foreign buyers unfamiliar with the complexities of sourcing in a different country.

In the manufacturing industry, a notable trend has emerged: a contraction to a few key manufacturing players. This shift is driven by factors such as consolidation, economies of scale, and the need for streamlined supply chains. As a result, a smaller number of dominant manufacturers and suppliers now wield significant influence. This concentration brings both advantages and challenges. While it offers enhanced negotiation power and efficiency, it can also limit options and hinder smaller manufacturers.

Worldfinancialreview’s team meets with sourcingagentvietnam.com’s experts and explores some of the pain points and difficulties that foreign buyers may encounter in their sourcing journey to provide insights on how they should proceed, emphasizing the crucial role of a local sourcing agent.

Currency Exchange and Payment Risks

One of the primary financial challenges in sourcing is managing currency exchange rates and payment risks. When dealing with foreign suppliers, fluctuations in exchange rates can impact the overall cost of goods and affect profitability. Moreover, there is a risk of payment fraud or non-delivery of goods, particularly when dealing with unknown or unverified suppliers.

To navigate these challenges, foreign buyers should consider partnering with a reliable sourcing agent. A sourcing agent can provide valuable assistance by recommending trusted payment methods, conducting due diligence on suppliers, and facilitating secure transactions.

By leveraging their expertise, buyers can minimize currency exchange risks and ensure the integrity of their financial transactions.

Cost Estimation and Price Negotiation

Accurate cost estimation is crucial for budgeting and making informed sourcing decisions. 

However, estimating the true cost of sourcing can be challenging, especially when factoring in hidden costs such as customs duties, taxes, shipping fees, and local regulations. Without a thorough understanding of the local market, foreign buyers may struggle to negotiate competitive prices and end up paying more than necessary.

cost-estimation-price-negociation-manufacturing

Working with a reliable sourcing agent mitigates these challenges. Sourcing agents possess in-depth knowledge of the local market and have established relationships with manufacturers and suppliers. 

They can provide insights on pricing trends, help negotiate favorable terms, and ensure that all relevant costs are accounted for in the sourcing process.

By using their services, foreign buyers can optimize cost efficiency and make informed decisions.

Quality Control and Product Compliance

Ensuring product quality and compliance with regulations is paramount for successful sourcing. Poor quality products not only impact customer satisfaction but also result in financial losses due to returns, replacements, or reputational damage. Additionally, failure to comply with regulatory requirements can lead to costly penalties and delays in bringing products to market.

Hiring a third party such as a sourcing agency can play a crucial role in managing quality control and product compliance. They conduct thorough supplier assessments, including factory visits, to verify production capabilities, quality control processes, and adherence to industry standards. 

Sourcing companies can also assist in product testing and certification, ensuring that the sourced products meet the required quality and safety standards. By leveraging their expertise, foreign buyers can minimize the risk of receiving substandard products and mitigate potential financial liabilities.

Supply Chain Transparency and Financial Stability

Maintaining a transparent and financially stable supply chain is essential for long-term sourcing success. Foreign buyers may face challenges in assessing the financial stability of suppliers, especially in unfamiliar markets. Supplier bankruptcy or financial instability can disrupt the supply chain, leading to delays, product shortages, or even business closures.

Supply Chain

By engaging a sourcing agent, foreign buyers can gain access to a network of pre-vetted suppliers with proven financial stability. Sourcing agents conduct comprehensive background checks on suppliers, assessing their financial health, reputation, and track record. This provides buyers with confidence in the financial stability of their sourcing partners, reducing the risk of supply chain disruptions and financial losses.

In conclusion, navigating financial challenges in sourcing requires careful consideration and expertise. Foreign buyers can mitigate these challenges by partnering with a well grounded sourcing firm. Sourcing agents offer valuable insights, mitigate risks, and ensure financial success by providing assistance with currency exchange, cost estimation, price negotiation, quality control, product compliance, supply chain transparency, and supplier financial stability.

When venturing into international sourcing, it is crucial to recognize the importance of leveraging the expertise and experience of an honest sourcing enterprise. By doing so, foreign buyers can navigate financial challenges with confidence, optimize their sourcing process, and achieve long-term success in the global manufacturing industry.

China and ESG: key considerations for responsible investors

ESG

By Shuntao Li

China, as we set out in our previous blog, is playing an increasing role in global financial markets and, by extension, investor portfolios. At the same time it presents investors with a number of unique Environmental, Social, and Corporate Governance (ESG), as well as political risks. 

How do investors set the ESG boundaries to navigate around them? We believe the key should be focusing on what matters for the financial risk and respective returns.

China and ESG – what matters for financial returns?

Environment China is one of the largest carbon emitters in the world but the government has committed to a net carbon target in 2060. While there is no conclusive evidence on how environment issues will affect financial returns over the long run, it is simply a risk that investors cannot ignore. At the end of April 2020, the MSCI China Equity Index’s carbon intensity (217) is still higher than the MSCI All Country World Index (179) but it is lower than the emerging markets (298).
Social Awareness of human right and worker right issues in the international community is increasing. Some of the social issues as a result of government intervention decisions can spill over to companies; e.g. a number of companies (including global brands) were reported to have been using Uyghurs’ labour from the re-education camps. We expect to see impacts at a company level as a result of boycotting or sanction responses from international governments and activist groups. So far the impact of sanctions at an index level is not yet material. However, there is a risk that more companies will be sanctioned or affected by supply chain related boycotts in the future.
Governance The political risk is essentially a form of governance risk at the government level which takes the form of interference. As a result, industries and financial markets lack true freedom and are highly affected by government decisions and policies.  

Chinese companies have a lot to catch up on governance quality and State Owned Enterprises (SEOs) present the most prominent governance issues. They are often in industries with a role to carry out the country’s strategic planning, which leads to poorly aligned interest with the investors.

When comparing all the E, S, and G factors, governance has the most significant and direct impact on investment returns because it is an issue directly or indirectly associated with every Chinese firm. Company returns may be hurt by poor management and questionable accounting, and sector dynamics could be affected by government decisions rather than “the invisible hand” of the market.

 

When investing in China, always go back to the ABCs

The consideration shouldn’t just stop here. It is also important to go back to each investor’s Aims, Beliefs and Constraints, including their ESG policies.  

  1. Is an allocation to China an appropriate fit given the investor’s objectives? Is there a need for an additional growth allocation with low correlation to existing assets? 
  2. Does the investor have a long enough time horizon to see China’s growth story play out? 
  3. How much governance is the investor willing to carry out to understand the risks specific to China? How much time is the investor willing to budget to monitor the risks? 
  4. Does the investor believe that, in the long term, poor ESG credentials will lead to financial underperformance? 
  5. Is there a justification to avoid investing in China for ethical reasons? We touch on this further below.

Addressing ESG issues as an investor

Low governance investors could consider climate aware and ESG versions of the indices but we note that the efficacy is limited here. We believe the best way to address ESG risks in China is through active management where the ESG risks are considered in stock analysis and undesirable companies can be avoided. Investors can also help improve companies’ ESG standards and practices through active engagement.  

Where there is an ethical reason to avoid China, careful considerations are needed on exclusion. Exclusion is likely to significantly reduce the investment opportunity set; e.g. China represents 40% of the emerging markets. Be mindful of crude exclusion rules because issues such as human right violation are not unique to China so it may lead to unintended exclusion. 

Finally, investors seeking to avoid China exposure should be aware that for some companies, production and sales are increasingly linked to China if they do not already form a meaningful proportion. If investors are going down the exclusion route then where should that stop?

Positive changes in China for investors

Thanks to growing investor demand in ESG disclosure and integration in Chinese investments, China is making positive changes in environmental initiatives, policy and regulation, as well as ESG reporting. Foreign investors are playing a key role in guiding, engaging and rewarding positive progress.

The article was first published on Barnett-Waddingham website on 18 August, 2021

About the Author

Shuntao Li Shuntao Li is an experienced senior fund manager researcher. Her responsibilities include researching funds and managers across a spectrum of asset classes including multi-asset, equity and fixed income. She is also a member of Barnett Waddingham’s Strategic Research Team that directs the firm’s asset class research priorities and views. Shuntao has a Master Degree in Finance and Management at Loughborough University. Shuntao started her career at Barnett Waddingham in 2011 and is a CFA charterholder.

Exploring Low Minimum Deposit Casinos: Big Wins from Small Investments

Exploring Low Minimum Deposit Casinos Big Wins from Small Investments

Online casinos for real cash allow you to start with a small amount of money. This is different than regular casinos, which need you to deposit a lot of money. Digital casinos provide gamblers with many games with lower betting limits.

If you want to play games at certain websites where you can win money, you have to give them at least $20 before you can start. We created a list of casino advantages that can help you to play games like slots and roulette without spending too much money. This is because more and more people are starting to gamble online.

Examine more about the most preferred minimum deposit online casinos and find top gambling sites on Gamble.Buzz that fits your budget.

Locating Top Gambling Sites with Gamble Buzz

Gamble. Buzz is the best place to find frank and insightful reviews of online casinos. Providing objective and in-depth reviews of various online casinos, the website is committed to assisting players in making knowledgeable decisions about where to gamble online.

The team at The Gamble Buzz is made up of knowledgeable industry insiders and seasoned gamblers who are enthusiastic about online gambling. They are dedicated to offering our readers factual, unbiased information about online casinos.

Gamble Buzz takes its duty to its readers very seriously. Before making a review for each casino, the team follows a strict rating system. The rating system takes into account a number of important elements that are essential to a satisfying online gambling experience.

If you’re sick of looking for minimum deposit online casinos and discovering that there isn’t any gambling action within your means, continue reading to learn about the pros of the best minimum deposit online casinos.

Advantages of Low Minimum Deposit Casinos

Players who need to bet online but do not need to spend a parcel of cash are exceptionally fascinated by low minimum deposit casinos.

Playing at the leading online casinos that require small or no store has numerous focal points. They offer players a phenomenal risk-free way to familiarize themselves with online casino recreation.

  • Minimal risk: With less risk than in typical casinos, you can play all the standard casino games. When learning and trying out a new game, a low minimum deposit casino is also beneficial.
  • It facilitates casino hunting: It’s common for gamblers to test out several casinos before settling on their favorites. If you’re testing out several low-deposit casinos, you won’t have to spend much. You can deposit that much and see everything the site has to offer because their minimum deposits are low.
  • Better management of one’s finances: When playing at a casino, there is always a chance of losing money. However, placing modest wagers keeps the risks to a minimum while maintaining the game’s thrill. You are unlikely to lose your entire bankroll in one or more games.
  • The same likelihood of striking it rich: In a poker game, your chances of winning are the same whether you are betting $100 or $5. The difference is in the winnings themselves. On that $3 bet, you might even get lucky and win big. When your chances of winning are the same, there is no need to risk high stakes if you are just playing for fun.
  • Win real money: Playing at sites that only require small deposits can be very profitable. You can still be successful and withdraw your winnings whether your gambling budget is $10 or less. Check the minimum and maximum wagering requirements if you’re a new gambler and want to take advantage of the generous welcome package. You can then play it through to increase your chance of going broke.

A sizable welcome bonus may be activated by your modest initial payment for new users. These casinos promise lots of great games like slot machines, card games, and ones you can play at a table. Plus, they have a section where you can play with a real live dealer.

The Future of Low Minimum Deposit Casinos

The Future of Low Minimum Deposit Casinos

Android versatile casinos are making online betting simpler on phones. Casinos with less costly store prerequisites are making it simpler for players to take an interest. Individuals can play numerous distinctive recreations at online casinos by as it was putting in a small bit of cash. These recreations incorporate opening machines and table diversions. The pleasant thing is mere can play all the leading diversions at a casino indeed in the event that you merely make a little store. Players can win genuine cash on gaming stages by utilizing rewards and joining advancements.

This is an amazing option for newbies. By adding a small sum of money to your gaming account, you can gradually gain experience, create your own playing style, evaluate your actions, and, of course, take pleasure in the thrill.

In many gambling games, you are able to receive exciting prizes or special promotions available. When you start playing at an online casino and deposit a little sum of money, you will see that there are many good deals you can take advantage of. Some of the most preferred bonuses in online gambling are free options to spin the slots, bonuses when you deposit money to your account, extra incentives when you add more money later, and getting some of your money back if you lose. It’s not surprising that the bonuses at casinos with higher deposit requirements or no bonus at all are worth more than the ones with lower requirements.

Conclusion

If you choose the right casino that allows you to deposit very little money, you can actually make the most money from your investment. If you deposit a lot or a little money, most casinos that offer free spins when you sign up will still give you the same amount of spins. It’s smart to buy things for a low price but of good quality. Every casino has good and bad things, but if you put the right amount of money in, get a bonus, and meet certain rules, you can make a small amount of money go further.

Home Warranty: Protection and Assurance in North Carolina

Home Warranty

A house warranty in North Carolina offers complete protection for essential systems and appliances, giving homeowners additional peace of mind.

Join us as we examine the topic of home warranties in North Carolina, looking into the specific security and confidence they offer for homeowners all over the state, from busy cities to peaceful town communities.

Coverage Options in North Carolina

Home warranty coverage in North Carolina thoroughly protects essential appliances and systems. HVAC, plumbing, and electrical systems are among the critical systems covered.

Also, such measures guarantee that homeowners may take care of problems relating to these essential components without paying exorbitant repair charges.

Additionally, popular appliances like refrigerators, dishwashers, ovens, and more are covered by appliance coverage. North Carolina homeowners can also include add-ons for additional protection to customize their policy further.

These optional add-ons may cover pool and spa equipment, well pumps, or even roof repairs to give homeowners more excellent peace of mind.

Benefits of Home Warranty

A house warranty gives homeowners several advantages, including convenience, financial security, and peace of mind. Covering unforeseen repairs or replacements, it primarily offers financial protection to homeowners by relieving them of the stress of hefty out-of-pocket costs.

A house warranty also provides the ease of having a single point of contact for all repairs. Homeowners can call their warranty provider, who will arrange and manage the required repairs, rather than looking for reputable service providers.

You can save your time and effort by streamlining the procedure. A home warranty provides peace of mind because it guarantees worry-free home ownership by protecting essential systems and appliances.

Choosing the Right Home Warranty

It is crucial to conduct research before selecting a house warranty. Start by looking into reliable house warranty companies in North Carolina, ensuring they have a proven track record and satisfied clients.

After that, examine the coverage options and costs various carriers offer, considering the specific systems and appliances most important to you.

Pay strict attention to the terms and conditions of the contract, particularly the coverage exclusions, service costs, and claim filing requirements.

Knowing these facts will empower you to choose a home warranty that meets your requirements, has thorough coverage, and offers dependable service. You can still benefit insights from cinchhomeservices.com/faq-library/-/faq/home-warranty-north-carolina/.

In Summary

In North Carolina, a house warranty provides homeowners with priceless security and safety. Major systems and appliances enjoy the cover and protection against unforeseen repair expenses and bringing comfort.

Homeowners can customize their warranties to meet their unique needs thanks to various coverage options and reliable suppliers. If you invest in a home warranty, your North Carolina home will continue to be a place of safety, comfort, and worry-free living.

The Ultimate Guide to Maximizing Compensation in California Car Accident Claims

The Ultimate Guide to Maximizing Compensation in California Car Accident Claims

Car accidents are never easy events to process. Aside from your personal injuries, there are other issues you’ll have to contend with. From accident reports, and dealings with insurance agency inquiries, to managing your emotions, there are numerous things you’ll have to take care of. Ensuring you receive the maximum compensation for your damages is another stressful worry.

San Diego County victims of a personal injury from a car accident should consult with an Oceanside car accident lawyer to help ease their minds. Their job should be to focus on their physical recovery. Let the lawyers handle the legal stuff.

How to Maximize Your Car Accident Compensation

Once you’re on the mend, your thoughts will most likely be on how to find ways to ensure that you receive maximum compensation for your damages. The financial aspects of personal injury claims usually go well beyond medical bills and should include things like lost current and future wages, pain and suffering, and other claimable damages. However, to get the best car accident settlement, you’ll need to get and keep all of your ducks in a row.

We’ve put together this ultimate guide to maximizing car accident compensation to help you to move forward and put this traumatic event behind you. Following these 5 tips can help you to receive the best settlement.

Seek Medical Care and Continue Treatment

California personal injury law states that you must prove the negligent party caused significant bodily harm. Not seeking medical immediately or within a day or so of the accident is a red flag to the defendant’s insurance company. Just after an accident, your body is flooded with adrenaline which could mask your injuries, so it’s common to not feel any aches or pains until the following day.

Equally important to your lawsuit is to continue your medical treatment plan. Postponing or missing doctor’s appointments or therapy sessions will give the defendant’s team a chance to doubt your injuries.

Never File Your Case Without a Lawyer

You’ll need to work with an experienced personal injury attorney to receive the maximum compensation for your damages. Insurance companies often offer a quick settlement hoping you’ll accept their lowball offer. These settlements are rarely close to what you deserve. Your lawyer has the skills and know-how to negotiate with insurance companies to get you a better settlement offer.

The California personal injury statute of limitations is two years from the date of the accident, so it’s crucial to begin working with an attorney as soon as possible. Gathering the necessary evidence to prove your case can be time-consuming, so any delay in consulting with a lawyer will give them less time to prepare your case.

Stay Off Social Media

Victims of car accidents can easily sabotage their case by posting about it on their social media accounts. It can be incredibly tempting to post details of your accident along with opinions of what happened. This should generally be avoided. The defendant’s legal team can use these posts against you.

Even posts that aren’t related to your lawsuit can come back to haunt you. If you’re claiming severe injuries, chronic pain, and emotional trauma, you’re socials could present a much different picture.

Be Careful Who You Talk To

You should only discuss the details of your accident and your lawsuit with your lawyer. Refuse any discussions with the defendant, their insurance company, or any others who ask you to make a statement about what happened. You may be given the opportunity to tell your side of the story, however, in most cases, this is the defendant’s legal team trying to get you to say something that can be used against you.

Gather Evidence and Document Everything

Your lawyer and their team of experts will help you to gather all of the necessary evidence to prove both neglect and the severity of your injuries. Police reports, accident eyewitness statements, medical documents, and even photos of the accident scene can help you to receive maximum compensation for your damages. This stresses the importance of working with an experienced attorney since they know

Journaling everything that you’ve experienced due to the accident is a smart way to ensure that you don’t miss any evidence that can award you a bigger settlement. Write down all of your medical appointments, discussions with your healthcare professionals, and any new symptoms or conditions you might experiences. This can include days off from work, sleepless nights, increased anxiety or depression, and anything else related to the accident.

Maximizing Your California Car Accident Claims Explained

Receiving the maximum compensation for your car accident lawsuit should always start with hiring an experienced personal injury attorney. With their guidance, they’ll help you to get every penny you should. Filing a California personal injury lawsuit on your own is to be avoided.

Insurance companies will do everything they can to avoid paying the maximum amount for your claim and will offer quick low-end settlements, scan your social media for things they can use against you, and will use other methods to keep from paying you what you deserve. Only an experienced personal injury attorney can get you the biggest settlement amount.

Black Banx’s Digital Transformation a Game-Changer for Economic Development

Black Banx’s Digital Transformation a Game-Changer for Economic Development

Conventional banking practices have long been the backbone of financial institutions, but it is becoming more and more clear that they fall short of the diversified needs of people, businesses, and economies.

Leading financial organisation Black Banx has started on a transformational path to reimagine banking and its social effect by leveraging the potential of digital technologies. Black Banx’s digital transformation arises as an important catalyst in this context, revolutionising economic growth and altering the financial sector.

Black Banx is transforming how people and businesses use financial services by adopting cutting-edge technology, fostering financial inclusion, empowering individuals, expediting international transactions, and encouraging financial literacy and education.

What is the future of digital transformation in the banking sector?

The need for a digital shift in the banking industry is becoming increasingly clear as traditional banking practices continue to have trouble addressing consumers’ changing expectations and promoting economic growth.

An entirely new era of possibilities has been ushered in by the development of digital technology, which provides creative answers to problems and gaps that exist in conventional financial systems.

Limitations of traditional banking methods

The financial sector has historically been supported by conventional banking practices, which are characterised by physical branches and manual procedures. These approaches, nevertheless, frequently fall short of fulfilling the needs of a world that is changing very quickly.

Physical branches impose restrictions on access to financial services, particularly for people living in remote or underserved areas, which raises obstacles to financial inclusion and slows down economic expansion.

Traditional banking practices tend to be lengthy, for example: paper-based paperwork and in-person transactions, which causes inefficiencies and delays in service.

Identifying the gaps in economic development

Economic growth is significantly impacted by the shortcomings of conventional banking systems.

Millions of people, especially in developing nations, lack the opportunity to fully engage in the economic system, which impedes their socioeconomic growth.

Banks are unable to keep up with the rapidly changing digital landscape because traditional banking relies heavily on manual processes, which stifles innovation and makes it difficult to implement effective technologies.

Digital transformation is necessary to close these gaps and realise the true potential of financial services for people, companies, and economies. Because of its proactive adoption of digital technology, Black Banx is in a unique position to transform the banking industry and advance economic development.

Black Banx’s digital revolution

Black Banx has started a ground-breaking digital revolution that will change the way that banking is done by utilising cutting-edge technologies and creative thinking.

This section delves into the foundational components of Black Banx’s digital transformation, emphasising the company’s dedication to giving customers and clients an unmatched banking experience.

Seamless digital banking experience

A seamless and simple digital banking experience is something that Black Banx sets a high value on. Numerous features and functions are available on the digital platform, including:

  1. Account management: Customers no longer need to visit physical branches in order to create accounts, conduct transactions, and check balances thanks to the digital platform.
  2. Payment and transfer services: Black Banx offers quick and secure payment solutions, such as peer-to-peer transfers, bill payments, and mobile wallet integrations.
  3. Personalised financial services: Black Banx creates financial products and services that are tailored to each individual customer’s needs using data analytics and AI algorithms, giving them the information they need to make wise decisions.

Innovative technological solutions

Black Banx uses innovative technologies to improve client experiences and reinvent banking procedures. Black Banx has used a number of cutting-edge technology solutions, some of which are:

  1. Black Banx uses artificial intelligence (AI) and machine learning algorithms to analyse consumer data, personalise services, and quickly spot irregularities or fraudulent activity.
  2. Black Banx provides easy-to-use mobile and digital banking applications that let users access a variety of financial services from their cellphones or other mobile devices whenever and wherever they are.

Advanced security measures

In Black Banx’s drive towards digital transformation, security comes first. Strong security measures are put in place by Black Banx to protect consumer data, uphold privacy, and guarantee trust in its online platform. These actions consist of:

  1. Encryption and data protection: To guarantee its confidentiality and integrity, consumer information is encrypted and stored securely in accordance with industry best practices and statutory requirements.
  2. Fraud detection and prevention: To spot and stop fraudulent actions in real-time, Black Banx uses powerful fraud detection systems driven by AI and machine learning algorithms.
  3. Continuous monitoring and auditing: To ensure the continued protection of customer data, Black Banx undertakes frequent security audits and monitoring to spot and swiftly remedy any potential vulnerabilities.

Black Banx’s impact on economic development

The digital revolution of Black Banx has a significant impact on economic growth, fostering many areas of expansion, inclusivity, and financial autonomy. The key sectors where Black Banx’s digital revolution has a favourable impact on economic growth are examined in this section.

  1. Financial inclusion and accessibility: Black Banx removes conventional hurdles, such as physical distance and inadequate infrastructure, by utilising online platforms and mobile banking applications. This enables people in underserved areas to interact with formal financial institutions.
  2. Empowering businesses: Black Banx empowers businesses by providing intuitive digital platforms and efficient procedures that provide them access to crucial financial services like business accounts, loans, and payment options. By enhancing their capacity to manage cash flow, grow operations, and exploit growth opportunities, this support helps them create jobs, encourage entrepreneurship, and strengthen the economy.
  3. Streamlined cross-border transactions: Black Banx lowers the costs and complexity of international transfers, trade financing, and exchange of currencies by utilising secure online platforms. This simplified method speeds up settlements, lowers transaction costs, and increases transparency, fostering international trade, luring capital, and igniting cross-border economic collaboration.
  4. Promoting financial literacy and education: Black Banx launches initiatives and resources through its digital transformation to encourage financial education among people and organisations. Black Banx empowers people with the knowledge and abilities to make wise financial decisions.

Final takeaways

The digital revolution led by Black Banx has a great ripple effect on a variety of societal groups and sectors, promoting long-term economic growth. Black Banx opens the road for economic growth, adaptability, and mutual prosperity by increasing financial inclusion, enabling businesses, expediting international transactions, and cultivating financial literacy.

The Black Banx digital revolution has had a significant impact on economic growth. Giving underprivileged groups access encourages financial inclusion by enabling them to fully engage in the formal economy.

Black Banx drives economic growth, closes gaps, and sparks advancement through its innovative work. Black Banx’s influence on economic development is set to increase as it develops, embracing new trends and pushing the limits of technological innovation, influencing the financial sector’s future and empowering societies all over the world.

4 Trading Strategies Every Trader Should Know

4 Trading Strategies Every Trader Should Know

Trading strategies support systematic and organized navigation of the global financial markets. An individual trader can make superior trading choices using a trading strategy. To get more details about the trading platform you may visit here nextstepfunded.com.

You will know about various well-liked trading methods in the financial markets. It’s also possible that you won’t achieve the same results utilizing one technique as someone else.

It is ultimately up to you to determine which trading strategy is best for you. Consider, among other things, your personality type, style of life, and readily available resources.

You will discover some of the best and most popular trading approaches in this article, which may motivate you to create your trading strategy, try out fresh trading methods, or even enhance your current trading approach. Read on with rapt attention to get familiar with these excellent trading strategies.

Day Trading

Trading stocks many times throughout a single trading day is known as day trading. Traders typically exit their positions by the end of each day. Active day traders rarely retain positions in this market for more than a day. The 15-minute, 30-minute, 1-hour, and 4-hour charts are the most often utilized chart frames in day trading strategy.

Day trading is popular among novice traders because it offers the chance to place numerous lucrative trades in a single day. Day trading is the most difficult to master and may lead to significant losses for the untrained, even though it can be very profitable.

It’s best to avoid several high-risk financial decisions at a time unless you have undergone extensive training and preparation. Even if day trading is difficult, it is feasible to understand day trading strategies and practice them until you perfect them.

Day traders frequently make transactions based on very brief price swings. Therefore, ensure you select markets with cheap commissions and narrow spreads.

Choose a timeframe that works with your schedule so you can get a feel for how it progresses. Many trading indicators are available as you learn how to day-trade. To understand how they work, concentrate on one or two. 

Additionally, risk management and trade sizing are crucial. You shouldn’t put too much at risk with each trade because it’s possible to suffer a run of consecutive losses at some stage in your trading journey.

Swing Trading

Swing trading is taking positions on both sides of market swings. In this strategy, securities are purchased and held for a short time, typically some days to a few months. Swing trading aims to profit from short-term price changes in the market by buying at low prices and selling at high prices.

Swing traders profit on the market’s erratic movements as the price oscillates back and forth between overbought and oversold levels. Swing trading is strictly a technical method of market analysis that is accomplished by looking at charts and examining the small movements that make up a bigger trend.

Assessing each swing’s duration is vital for successful swing trading because it identifies crucial support and resistance levels. Swing traders must also recognize patterns where markets experience a rise in demand or supply. 

While keeping an eye on trades, traders must also consider whether momentum rises or falls during each swing. You can utilize retracement swings to move in the path of a strong trend during these times. 

In a current trend, these points are often known as pullbacks or dips. Traders search for the most probable trade once a new momentum high is achieved, which is often to buy the first downturn. However, traders frequently attempt to short the initial rally once a new momentum low is struck.

Trend Trading Strategy

Trend Trading Strategy

Using technical analysis, a trader establishes a trend and only places trades that correspond to the established trend.

Trend-following differs from the bull or bear flag trading strategy. Trend traders don’t have a predetermined idea of which way or how the market should move. Possessing a precise technique for identifying and tracking trends defines success in trend trading. 

But because trends can change quickly, it’s important to be alert and flexible. As a trend trader, you must understand the hazards of market reversals and how to reduce them by a trailing stop-loss order.

For the analysis of some markets, many trend-following tools can be utilized, including those for stock markets, treasuries, currencies, and products. As a trend trader, you must practice patience because it might be challenging to ride the trend. 

However, if you have enough faith in your trading strategy, you may maintain your composure and only follow the trend for the duration of the timeframe you’ve set. When trend trading, it’s crucial to be on the lookout for any indications that the trend is coming to an end or is about to shift to cut your losses quickly and allow your profits to run.

News Trading

The most popular trading technique relies on media releases and the most recent market news. Every announcement a firm releases and any information about a specific stock change expectation both before and after. 

News spreads quickly thanks to digital media’s ability to move at the speed of light, and several traders base their upcoming purchases or sale on the information they get from the news. 

Trading news takes advanced knowledge. Knowing how some announcements may impact your positions and the larger financial market is crucial if you news trade. Additionally, you must understand news objectively and from a market perspective.

Exploring Trading Strategies

Exploring Trading Strategies

What is the most excellent trading technique? You may be wondering right now. The most effective trading strategy is a question of opinion because all trading strategies have the potential to perform well under certain market circumstances. 

You should pick a trading strategy considering your personality, degree of discipline, availability of cash available, and risk tolerance.

Trading in an environment without risks is the most effective way to put this concept into practice so that you may hone your skills, improve your methods, and discover how to manage your mental state while trading.

It only requires a few steps to open a sample trading account now, and you can start benefiting from trading with free market data and in a risk-free environment.

The Political Economy of Famines during the British Rule in India: A Critical Analysis

Source: https://www.worldatlas.com/articles/the-bengal-famine-of-1943.html

By Kalim Siddiqui

1. Introduction

The late nineteenth century was celebrated in the West as the golden period of global capitalism; while few will defend empire today, still we are encouraged to acknowledge its economic benefits. This is despite the fact that during the 200 years of British rule in India, there was no increase in India’s per capita income from 1757 to 1947, while occurrences of famines and mass deaths multiplied (Bagchi, 2014; Maddison, 2001).

In India, rainfall plays a very important role in determining crop yields and output, and supplies of food in the country. Since independence, India had virtually eliminated famines, which were supposed to be caused by crop failures. However, during colonial rule, the frequency of famines and deaths increased sharply (Siddiqui, 2017). Under such a situation, the colonial government strictly relied on ‘Malthusian ideas’ that famines were the natural outcome of overpopulation. The government’s faith in non-interference in the markets during famines made matters much worst. Malthus blamed corruption and poor governance, rather than public policy to mitigate famine. However, his opinion ignores mismanagement, the greed of speculators, and the ruling elites’ inaction (Daoud, 2018).

It is useful to distinguish clearly between two different ways in which an agricultural disaster like a drought or flood can cause economic difficulty. First, a drought or flood may destroy crops and devastate people’s incomes by slashing agricultural employment and wages. Second, it can reduce the markets for the goods and services such as from agricultural labourers to carpenters and many others. During droughts and crop failures, the worst affected are labourers, because demands for agricultural labourers and rural artisans declines. The adverse impact of droughts or floods far exceeds their direct impact on the food supply. Drought could result in a sharp reduction in agricultural output and lead to food shortages. However, mass deaths took place due to a number of reasons such as government policy failure or inaction and also a lack of preparation to combat this extraordinary situation.

The question therefore arises: why did food scarcities and famines occur in India (currently Bangladesh, India and Pakistan) during British rule? To answer this, it is important to delve deeper into the causes that led to the alarming increase in calamities in India over the span of about two hundred years. In fact, famine raises a deep question about the performance of the government administration. The question arises: did the colonial government protect people, during the period of sudden decline in output, from starvation? And why did famines keep on occurring, and what measures were taken to prevent them? A number of empirical studies have been done on famines which provide us with a very rich and deeper understanding of famines in South Asia (Shaw, 2011; Grada, 2008). Moreover, in UK universities, students who study economic degrees may still hardly understand the sources of capital accumulation and the important role that the colonies played in making Britain the first industrialised country in the world.

This study examines the nature of famines during the British Raj in India, in the light of a number of perspectives (Sheldon, 2009). In recent years, there have been a number of studies regarding this subject area; therefore, there is a need to revisit the causes and impact of famines in India. Moreover, there is also the severity of these famines, which has so far rarely been acknowledged by economists (Grada, 2008). The present research is an attempt to reduce this gap by critically analysing the evidences concerning loss of lives and famines in colonial India.

The structure of the article is as follows. Section 1 presents background and introduction. Section 2 analyses and criticise some existing theories. Section 3 discusses the policy of British imperialism and occurrences of famines. Section 4 surveys famines during British India. Section 5 analysis the exports of agricultural commodities and finally the conclusion section presents summary.

Prior to the mid-18th century, famine was seen as a natural calamity from which many European countries suffered. Only after the expansion of commercial and industrial activities was the problem of famines gradually removed in Europe and since the second half of the 19th century, Europe has not witnessed any major famine. However, in a number of Asian and African countries, especially under colonialism, famines have frequently taken place with great intensity. This was the direct result of colonial policy, which led to increased misery and a rise in the incidence of famines (Habib, 2017).

Under British pressure, the government in India allowed unrestricted exports of foodgrains even during times of famine. The government made sure that foodgrain prices were determined by the market forces of supply and demand. Nevertheless, the role of the commercialization of agriculture contributing to famines is widely debated among scholars. It is often argued that commercialization diverts resources away from domestic food production towards non-food crops for markets, and also agricultural output undergoes greater price fluctuations (Ravallion, 1997).

Dadabhai Naoroji (1901:212) thoroughly exposed the British colonial policy of exploitation, leading to the misery of Indian people. He noted, “How strange it is that the British rulers do not see that after they themselves are the main cause of all destruction that ensues from droughts; that it is the drain of India’s wealth by them that lays at their own door the dreadful results of misery, starvation, and the death of millions”. More recently Amartya Sen (1982) presented an economic perspective on famines and his key concept was individual’s entitlement, which is defined as all the commodity bundles that can be obtained from the resources at her/his command. According to him, starvation and lack of food availability arises from “entitlement failure”. This failure could be due to a loss of endowments or a change, such as through production and trade in which endowments are transferred into entitlements. (Siddiqui, 2018a) During starvation, certainly a large number of people experience entitlement failure due to the drought or flood and a sudden fall in food output. Some critics of Sens’ work emphasise that he has given too much importance to food, while given little attention to other factors such as diseases.

The colonial government was not prepared for the famine and displayed a lack of urgency in the beginning period of the famine. “[T]here was unusual bewilderment, the usual vacillations and it was not until the evil had reached the climax that it was seriously grappled with. When the Government understood finally what was required, there was no holding back, but by that time it was too late”. (Bhatia, 1991:97) With the onset of the famine instructions were given by the government that ‘no interference was to be permitted with prices of foodgrains’. The occurrence of famine after the expansion of railways and transportation, but was somehow ineffective to import foodgrains from other regions. It seems they tried to deal with ‘non-interference’ in the market and refused to take measures to increase supply and also to control the foodgrain prices during the famine.

The British government abandoned pre-colonial policies to combat natural calamities and food scarcity in India. They were more interested in the implementation of non-interference in the market. Adam Smith’s laissez-faire approach, i.e. the principle of non-intervention, was firmly laid down as a part of state policy (Siddiqui, 2015a), and therefore was strictly implemented in all subsequent famines. It was said that in the past during the natural calamities, the previous rulers undertook harsh measures to persecute traders and fixed maximum selling prices for foodgrains, which were seen by the colonial government as unhelpful and as interfering in the operations of the markets. As (Bhatia, 1991: 106-107) noted, “The Government of India persistently refused to control or interfere with prices. And it went to the other extreme of giving an absolutely free hand to the trader and discouraged local administration and its officers from interferences in his activities. Any attempt to control the price in the district, ban exports or arrange for imports on Government account was not only deprecated but was even punished. It was repeatedly pointed out to the local administrations that absolute non-interference with the operation of private commercial enterprise must be the foundation of our present famine policy”.

During the famines, it was repeatedly witnessed that food scarcity and death tolls became much higher due to the state refraining from intervening in the free operation of the market. This non-interference policy seems to be a useful tool to stay away from financial responsibility and avoid spending money to feed people, which is financially less burdensome for the government.

In contrast, during the pre-colonial period for instance, the state regulated the food commodities supply, controlled the prices and also took actions against hoardings. The credits and state support was extended in the post-famine period to peasants for the cultivation of crops. This was a widely practiced policy in the past. As Moreland noted, “[T]he successful use of price control and regulation of supplies by Allaudin Khilji for a period of 12 or 13 years in Delhi to control inflation… the regulation consisted of (i) control of supplies and (ii) control of transport with (iii) rationing of consumption when necessary, the whole system on (iv) a highly organised intelligence and (v) drastic punishment for evasions. The period of 12 years included years of dearth and unsatisfactory seasons.” (Moreland, 1968:36)

 

2. Scholarly Debate

I analyse here some of the prominent opinions and arguments on the issues of famine during the colonial period. Very prominent among them was the 19thcentury academic, namely Thomas Malthus, who argued famines were a natural measure through which populations are ultimately capable of maintaining a balance between population and natural resources. According to him, large numbers of deaths were the last resort for a population that had exceeded its resource base. The Malthusian view has been challenged by those who doubted that famines were a consequence of over-population relative to available resources. During the famines in the colonies in the 19th century, the ideas of Malthus, Smith and Mill of laissez-faire and of non-interference policy were imposed with respect to the market (Daoud, 2018; Ravallion, 1997).

Dadabhai Naoroji (1901) emphasised the chronic famine situation in India and blamed this situation on “the continuous drain of wealth year after year in the form of payments that this country was obliged to make annually to England for the discharge of her obligations most of which had their origin in the political relations between the two countries…by the constant drain of wealth of that country [India]… whether it is possible for any nation on the face of the earth to live under these conditions” (Cited in Bhatia, 1991:270).

Another economic historian, namely R.C. Dutt (1901), criticised the very high revenue imposed on Indian peasantry. According to him, the heavy enhancement of revenue, particularly in the Royatwari areas, was the main reason for the extreme poverty and lack of power among the cultivators to withstand the vicissitudes of the seasons of India (Siddiqui, 1990). Dutt criticised the colonial government for high land revenue charges. The government had fixed revenue of 50% of the net produce in areas under the royatwari system. And one-half of the produce was taken in zamindari areas by the landlords; however, the actual amount paid by the cultivators was often more than this amount. As a result of high revenue demand, the peasants were not left with any surplus to help them or to provide any insurance in the lean harvest years. Therefore, the land revenue policy of the government was the root cause of poverty, indebtedness, famines and mass deaths in India. Dutt said that ten major famines took place between 1860 and 1900, where the total deaths were 15 million people (Dutt, 1901). He argued that the famines were not caused by a lack of food, but instead were caused by inadequate transportation and the government’s inaction regarding taking concrete policy measures to end it. The money and resources required to combat famines in the second half of the 19th century were being diverted towards activities like paying for the British imperial war efforts in Afghanistan and in East Asia (Siddiqui, 2018b).

Amartya Sen (1982) argued that the people very rarely die simply because there is not enough food to go round at the time of droughts. However, it is economic structures, social networks and political decisions that aggravate food crises and famines. He argued the causation of famines in terms of the collapse of the ‘entitlements’ of particular occupation groups. The concept of entitlements is a set of alternative commodity bundles that the person can command. The set of alternative bundles of commodities over which a person can establish such command will be referred to as this person’s entitlement. Sen’s study (1982) on the Bengal famine of 1943-44 had emphasised that the famine was not preceded by any natural disaster, but rather because the agrarian economy of Bengal was highly commercialised and a large area was under cultivation for non-food crops for exports (Sen, 1982; 1977).

Drought reduces the employment entitlements of agricultural labourers, which also reduces their capability to buy food. A drop in agricultural output also means a decline in demand for non-food items and services. This would also mean the ability of those who work in non-food sectors would be adversely affected, because their income depends on factors such as employment entitlements, wages and the price of food. These three factors constitute Sen’s “exchange entitlements” (Sen, 1977; also see 1982). The employment entitlements and food prices are crucial factors to determine food availability and starvation. A drought or crop failure deprives some sections of people of their ability to acquire foods but does not, as often assumed, lead to an absolute shortage of food. Moreover, due to a sudden rise in food prices, the incomes of large farmers, who produce surplus food, will rise, whilst incomes of those who have to acquire food will be reduced. (Patnaik, 1991)

In fact, not all people starve to death during a famine and not everyone in the famine area suffers from losses, in fact, some sections of the population are able to benefit during a famine. In the period of crop failure, those medium farmers who had produced enough to survive at the level of subsistence in a normal year, while rich farmers who produced a large surplus, but still produce some surplus in drought. A crop failure most likely leads to a reduction in income for large farmers who previously hired labourers, meaning less employment and income for agricultural labourers.

Famine is generally seen as ‘too many mouths and too little food’. The problem of famines had been that they were viewed as serious food deficient (Sen, 1982). A household’s ability to buy food depended on the labour and commodities in its possession which could be exchanged for food. In an exchange economy, whether the family will starve depends on its possessions and the price of foodgrains. The exchange also depends on market imperfections and other institutional barriers. Sen (1982) found that the famines during British rule were not due to a lack of food but due to inequalities in the distribution of food. Famines are not caused by food shortages as some might believe. In fact, Bengal state highly connected with roads and railways and the state was not a closed economy and was actively involved in trade. Therefore, a decline in food production does not necessarily lead to a decline in food availability. There are various examples in the past when crop failure did not lead to starvation and mass deaths in that country (Patnaik, 1991).

People died in large numbers during the famines and under the new economic regimes precisely because of the decline of the traditional systems of rural self-help and protective security. This arrangement had the effect of undermining the traditional sharing arrangements that had existed before. However, traditional systems typically do not include enough economic opportunities for all that can effectively employ the poor in a society. Famines were not unknown in pre-British India, but a number of measures were taken to mitigate it such as, government distribution of food, differing land revenue, and relief works such as building of palaces, roads and ponds. However, in the colonial period, such polices were abandoned during the calamities. It is important to analyse the relationship between grain dealers-cum-rich-peasants and poor peasants; the latter sections were largely low-caste peasants who were already in subordinate relationships (Siddiqui, 2018c). The key factor in this relationship was the loans and advanced money they had taken from the landlords-cum-rich-peasants, which forced them to sell their produce to the grain merchants. The famine moved the entitlement relationship in favour of landlords, rich peasants and merchants. While the poor, such as labourers, artisans, and low castes possessed few resources (Drèze, 1991).

Paul Greenough also emphasised that in the second half of the 18th century the agrarian economy in Bengal had been interrupted in terms of a breakdown of the traditional system of subsistence economy, which was associated with traditional food security. The rural rich i.e. zamindars, were seen as patrons with a social duty to provide food to the local people. Such views were criticised by Ray (2013:3) “subsistence crises in this period were cases of major entitlement failure. The origin of these crises should be traced to the structural contradictions of the Bihar peasant society, where dominant peasant groups controlled land and owned capital at the expense of increasing subordination of the poor peasantry and rural indebtedness. The poor peasantry had to depend on loan to carry out agricultural operations, to meet the revenue demands and for their subsistence needs…, caused the entitlement relations to shift steadily overtime in favour of the rich peasants and grain dealers, and against the poor peasantry. Even small changes in the agricultural output during a period of drought/flood affected their entitlement badly, and it collapsed totally during famine and starvation deaths resulted.”

Others, like Tirthankar Roy (2006) suggested that the famines were due to environmental factors and inherent in India’s ecology. Roy argues that massive investments in agriculture were required to break the economic stagnation; however, these were not forthcoming owing to scarcity of water, poor quality of soil and livestock, and a poorly developed input market which guaranteed that investments in agriculture were extremely risky. After 1947, India focused on institutional reforms to agriculture; however, even this failed to break the pattern of stagnation. It wasn’t until the 1970s when there was massive public investment in agriculture that India became free of famine.

 

3. British Imperialism and Occurrences of Famines

In the 19th century, India became the largest source of tribute for Britain, and India’s economic policies were formulated to be suitable to British interests. India had to pay the costs of British possession in Asia and East Africa (Bagchi, 2014; Siddiqui, 2019). Moreover, Lord Selborne, who succeeded the free trader Lord Lucas acknowledged (Cited in Bagchi, 2014:7): “it was only the import of Indian wheat that had saved the food situation in Britain in 1915; but she failed to inquire as to what happened to the Indians, whose land had sent both soldiers in increasing numbers and large quantities of wheat for use by British civilians and military personnel”. Bagchi (2014: 19) also found: “in the last stages of War, when the British wanted to buy Canadian wheat, the Canadians were unwilling to deliver it without assured down payment. Ultimately, negotiations at the highest level allowed the British to use part of a large US loan to buy Canadian wheat… On the other side, wheat was simply exported from India, and the payment was part of the colonial tribute, without any nonsense about consulting the Indian.”

During periods of food scarcity, governments should effectively install regimes of rationing of essential goods. For instance, during the Second World War in Britain, the essential food rationing was implemented so that poorer sections of British society were fed. In contrast to this, in Bengal in 1943 for instance, only a few cities were covered by rationing, where less than 10% of the population lived, not in rural areas where a very large number of people lived. Rationing covered a very small proportion of people, whilst a large proportion of people in rural Bengal were left to the mercy of the market to purchase foodgrains. The rise in prices adversely affected those with fixed incomes, such as workers lose, while the merchants, hoarder gains and those who were net purchasers of food, meaning they had to cut down their essential consumption, due to higher prices of food items.

Mike Davis (2001) argues that famines are the product of both environmentally determined food shortages and the failure of government and social systems. As Davis (2001:50) stressed, the famines in the 19th century were the result not only of the failure of the government, but their effectiveness. “[D]rought was consciously made into famine by the decisions taken in places of rajas and viceroys”. According to him, it was powerfully true of the late Victorian “El Nino famines”. People died in their millions not just because their crops failed, but because the colonial government was incompetent, uncaring, and racist. Such policies intended to dominate and legitimise exploitation, colonialism and occupation. Davis (2001: 26–27) further stresses that, “[T]he newly constructed railroads landed as international safeguards against famine, were instead used by merchants to ship grain inventories from outlying drought-stricken districts to central depots for hoarding …” The increased communications and transportation did not result in reducing the food grain prices and did not increase availability of food to the poor at the end of the 19th century in India.

Mike Davis concluded that British imperial policy exacerbated the drought problem. According to him (2001:32), “those with the power to relieve famine convinced themselves that overly heroic exertions against implacable natural laws, whether of market prices or population growth, were worse than no effort at all”. He found that famines were products of the deliberate policies of colonizers to starve people into submission and control. According to him, it was the very process of incorporation into a global capitalist economy that gave the famines their terrible impact. Davis (2001) argues that the seeds of underdevelopment in the colonies were sown during the European colonisation, and the capitalist expansion and imposition of free market policy in the colonies took the lives of millions of people (Siddiqui, 2010). He calls this an act of genocide in the 19th century (Shaw, 2011).

Some have argued that drought may not to lead to famine. According to them, well-stocked inventories and effective distribution can limit the damage (Shaw, 2011). It seems that in the 19th century the drought was seen by the colonial administrators as an opportunity to control the people. The construction of Indian railways from 1860 onwards offered opportunities for greater profit in other markets. It allowed farmers to sell their produce in other provincial markets and large farmers were growing a portion of their crops for export. The railways also brought in food whenever expected scarcities began to drive up food prices (Siddiqui, 2014). The colonialist apologists portrayed India as a land of too many people and too little resources, resulting in famines.

 

4. A Survey of Famines in British India

Under British rule, India witnessed a number of large-scale famines. For instance, the first famine took place in 1770 in Bengal province, where according to the government’s official estimates, about 10 million people died, i.e. one-third of the population of Bengal province. Among the large sections of the rural population in Bengal that perished in the famine of 1770, it was reported that half of those who were paying the revenues and cultivating the land had died, while those remaining were unable to carry on due to the lack of seeds and farm animals. It also meant that in order to cultivate the land again, the peasants had to borrow money from the big land owners and merchants, which led to their increased indebtedness.

The Bengal famine of 1770 led to a massive decline in the province’s population. Hundreds of villages were deserted and unoccupied, and also a large area of arable land remained uncultivated for many years. As a result, the land turned barren or into forests and remained that way for several decades. As an eyewitness then noted, “The people either perished or went elsewhere for subsistence … the land is now really waste for want of inhabitants …. the consumption of grain in the town, has declined greatly by reason of the considerable decrease of inhabitants during the last famine – a great part of the town having become a jungle, and literally a refuge for wild beasts.” (Cited in Ray, 2013: 8) A number of Bihar districts were depopulated due to famine of 1770 and these were Patna, Shahabad, Monghyr, Purnea, Tirhut, Champaran and Bhagalpur. (Ray, 2013)

The government was reluctant to ‘interfere’ with the grain market for various political and economic reasons. The colonial government were less prepared to accept any responsibility for the welfare of the Indian people. In fact, once food output declines, leading to a food crisis, the access to food is determined by the market. In some places, wages were paid in cash, but not everywhere (Ray, 2013). In this situation, the merchants and traders dictated and influenced the foodgrain prices in the provinces affected by famines and food shortages. As Ray (2013: 6) noted, “Due to the uneven spatial characteristic of monsoon crop failure never occurred simultaneously all over the province and food could be procured from elsewhere in the province even during the famine. The grain merchants-cum-rich peasants bought grain from the areas that had relatively greater surplus and sold it at a very high price in the affected region, especially in the towns. The producers in the relatively unaffected regions had no option but to sell their produce to the rich peasants-cum-grain merchants as they were bound to them through the credit mechanism and their produce was already mortgaged to the grain merchants-cum-rich even before the harvest.” For instance, in Purnea district in Bihar, during the famine of 1770, while the district was witnessing a sharp drop in food availability and under acute famine distress, foodgrain was still being sent out of the district. As the prices rose suddenly in the famine affected region, the poor people could not afford to buy it, which resulted in starvation and deaths.

The intensity and frequencies of famines did not relent. The most prominent famines were: 1784 (north India), 1803-06 (Bombay), 1831 (north India), 1854 (Madras), 1865 (Orissa), and 1876-78 (North-east and South). Cornelius Walford, the Victorian demographer, calculated that during the colonial period India witnessed 34 separate famines compared with only 17 recorded instances of the past two thousand years of Indian history (Sheldon, 2009).

Soon after the Indian mutiny was suppressed in 1858, the British came back to north India with a vengeance, which was the centre of the rebellion, and attacked a number of villages which they suspected of supporting the rebellion. In 1858, the villages of the North West Province were plundered and burnt down along with foodgrains. The villagers were punished for siding with the rebellion, and as a result agriculture cultivation was disrupted for two years. There was also a food deficient for over two years preceding the famine. Due to all these factors, famine took place in 1860-61. Furthermore, the deficiency in rainfall in 1860 resulted in drought and poor agricultural output, and the calamity and intensity could be compared to the earlier famine of 1837-38. After the famine began, then there was a sharp rise in the prices of foodgrains, not only in the affected area but also in the neighbouring districts. The rise in prices was speculative and was not associated with the supply of foodgrains in the famine affected districts. The government did not make any attempt either to control the activities of speculators and foodgrain prices, or increase employment opportunities or minimum wages (Sheldon, 2009).

The famine of 1865-66 simultaneously affected a number of provinces such as Orissa, Bihar, Bengal and Madras. In Orissa, the famine of 1865-66 killed about a third of Orissa’s population. The rains in Orissa in 1865 were 25% below the normal rain and as a result, the foodgrain output was adversely affected, and similar situation occurred in other eastern and southern provinces. This created a worrisome situation regarding food safety among the people. The government had refused to import food and did not take any policy measures to stabilise the food prices in the market, while merchants bought and stored foodgrains in a hope that their hoarding activities would bring higher profits, during the post-harvest and in an acute food scarcity situation, there would be a steep rise in prices and thus they would be able to make huge profits. The important factor was that the export of rice from Orissa rose and the total exports of rice from the state amounted to an unusual 33,000 tons as compared to the averages of the previous five years 1859-64 of 17,400 tons. Rice was the main staple food of the people in the province and in severely famine affected districts of Orissa. During this period, the price of rice rose sharply in the markets and the foodgrain disappeared from the markets in the famine affected region.

Under this critical situation in the famine stricken provinces, the provincial governments did not take the situation seriously and did not make any policy attempting to deal with the critical situation. There was the issue that accepting the critical situation would have meant importing food into the famine stricken province of Orissa. In May 1866, in Orissa, the colonial authorities found in the town Cuttack that their own officials and their families were unable to feed themselves. The severe famine forced the people to leave and many villages were deserted and totally wiped out. According to the estimations, three districts of Orissa suffered a loss of at least one-quarter of their population. Food scarcity and stress were also witnessed in a number of districts of Bihar in 1866, with the most severe in the districts of Champaran, Tirhut, Bhagalpur, Shahabad, Saran, Gaya and Monghyr. The relief work by the Government was also extremely belated, inadequate and ill-organised (Attwood, 2005).

The famine of 1866-67 also spread to Southern region of Madras Presidency, the impact of famine and food scarcity was particularly severe in some districts such as Bellary, Coimbatore, South Arcot and Madurai. The rainfall in Madras Presidency was delayed in 1866, and began in late July. The poor agricultural output in 1866 led to a rise in foodgrain prices, but at the same time, food exports continued from the province. Moreover, Madras imported rice from the neighbouring province of Orissa, but due to the sudden decline of food production, rice supplied from Orissa was disrupted. For example, the total imports in 1864-65 amounted to 1,400,000 cwts, but it declined to 1,100,000 cwts in 1865-66 (Samal, 1990).

The Famine Commission enquired into the Famine of 1866 in Bengal, Bihar and Orissa and described the situation as “suffering from hunger on the part of large classes of the population” (Cited in Bhatia, 1991: 8). The Commission further added, food was “always purchasable in the market though at high price and in some remote places at excessively high prices” (Cited in Bhatia, 1991: 8).The Orissa famine also became an important turning point in India’s political development, stimulating nationalist discussions on Indian poverty. Naoroji said that if India had enough food supplies to feed the starving population, then why did so many people die of famine in 1866 in Orissa? He further noted that India had actually exported over £200 million of rice to Britain (Naoroji, 1901). With the development of railways, the famine problem witnessed a huge change. In the latter half of the 19th century, the food situation had changed due to transportation and increased supplies of food from other regions. For instance, regarding the Bengal, Bihar and Orissa famine of 1866, a lack of purchasing power rather than a decline in food supply was seen as an important contributing factor to famines. The development of increased transportation and communication led to more trade in agricultural commodities including food gains, leading to a rise in prices which rendered food beyond the reach of poorer sections of the population (Siddiqui, 2015b; Samal, 1990).

Another famine struck in Bihar in 1873-74. But soon after, the Lieutenant-Governor of Bihar, Sir Richard Temple, imported rice, although a little late, from Burma, but still many lives were saved. However, he was criticized for excessive expenditure on relief (Drèze, 1991). Later on, Mr. Temple became Famine Commissioner for the Government of India, then he took a u-turn, and insisted not only on a policy of ‘laissez faire’ with respect to the trade in grain, but also adopted more strict standards of qualification for relief and on more meagre relief rations (Attwood, 2005).

The crucial September-October 1873 rainfall failed in large parts of Bengal and Bihar. As a result, the drought adversely affected the cultivation of the winter crop including winter rice. The total area affected was 40,000 square miles, and due the crop failure, the deficit in the food supply was estimated at nearly 4 million tons. However, this time the government took steps to stop the exports of foodgrains and made sure that the Burmese rice supply was not hampered. The imports from Burma did help to reduce the number of deaths. In the beginning of the famine, the prices rose sharply but once rice arrived from Burma, the market prices of rice came down. The government intervention was a bit late, but still proved to be helpful to reduce mass deaths.

There was a failure of summer rain in 1876 over a large part of the southern India i.e. Madras Province, also in Mysore and Hyderabad. In all, a total area of 205,600 square miles, which then covered 36.4 million peoples were affected. The monsoon was also less than average in 1875. Food output continued to be less than average until 1878. As Bhatia (1991: 91) noted, “there was acute scarcity of foodgrains which expressed itself in an extraordinary rise in prices … The deficiency in food supply was accompanied during the famine, as was usual, by the outbreak of cholera and the epidemics of smallpox and fevers. The excess of mortality in 1877 over the normal death rate of 3.5 percent per annum for this area was 8 lakh lives.”

Between 1876 and 1878, during the Madras famine, five million people died after the viceroy, Lord Lytton, adopted a hands-off approach similar to that earlier employed in Ireland and Orissa. The famines which occurred before 1870, when there was an absence of transportation and less developed communications in Orissa, hampered the movements of grain to the famine-stricken population. By 1870, the railway tracks were laid out to almost all regions in India and thus grains could be moved from one to other region. This means that famines took place after the availability of the improved transportation in a very different situation, and local production became less important (Ghose, 1982).

The Bombay famine of 1876-78 caused a large number of migrations of the rural poor from this province to British colonies in the Caribbean islands, Fiji and Mauritius, as indentured labour, where the British owned plantations. In this famine nearly 10.3 million people died (Siddiqui, 2020a). The huge death toll led to pressure being put on the British government to form the ‘India Famine Commission’. The Commission Report (1880) suggested the establishment of the Indian Famine Code. However, hardly any major change in policy was witnessed and the next Indian famine took place in 1896-97 in Madras Presidency, which began with a drought, while the government determined to continue the ‘laissez faire’ policy in food products. For instance, during the drought year, the province continued to export food and the famine took place, which was followed by a number of infectious diseases such as influenza and diarrhoea, which attacked the already weakened and starving population of the Madras Presidency.

Moreover, after the 1880s there was an increasing foreign demand for foodgrains, this also led to scarcity in domestic markets, which resulted in a price rise. While at the same time, peasants did not benefit from the price increase, there was no improvement in land productivity, and there was no increased investment in agricultural technology. The exports of foodgrains, pulses, hide, skins, jute, tea, opium and indigo experienced substantial increases. The increase in exports of foodgrains needs to look more closely, because this was also the time of the rise in the occurrences of famines and huge increases in prices. For example, the average annual exports of foodgrains and pulses increased from Rs 15.3 crores in 1881-85 to Rs 20.6 crores in 1894-95. The total exports of two foodgrain commodities, namely wheat and rice, in 1879-80 amounted to 1.25 million tons, while it rose in 1895-96 to 2.25 million tons. It did help India to earn more foreign exchange and enabled the country to acquire a sufficient exchange balance, not only to pay for imports, but also to provide foreign exchange to help Britain, which had a balance of payment deficit with other major economies during that period. The rise in prices and the shortages of foodgrains, which Dutt pointed out in the 1890s as the commercial “advantage” of a favourable trade balance, was thus obtained by India at the cost of a rise of prices and a fall in supplies for domestic consumption (Dutt, 1901).

The famine of 1896-97 took place in north India i.e. in the regions of Bundelkhand and Allahabad Division where food production was already lower than the average of previous years, due to low rainfall, acute food scarcity was already felt in this region before the famine. Moreover, the famine of 1896-97 affected most provinces, and the heavily affected provinces were: Bihar, Bombay, Deccan, Madras, North Western Provinces and Oudh. The food scarcity was also severe in the North Western Provinces of Bombay and Deccan. According to an official estimation, the famine affected a total area of 504,940 square miles with the population of 97 millions (Bhatia, 1991).

Due to over exploitation of soil and hardly any investment to improve fertility, the quality of the land became poorer in nutrients and less rainfall adversely and dramatically affected the output. In 1896, the important reason for famine seemed to be the failure of autumn rains over most parts of India; there was no rainfall between August and November, while on average the country normally the region gets one-third of its rainfall at this time. As a result, the land was dry, and autumn crops such as pulses, autumn rice, gram, peas, and millet could not be planted. Some cultivators planted these crops with irrigation water, but the yields varied among provinces between 45% and 75% of the normal. The loss of agricultural output was huge. Again the monsoon was deficient in 1899, but limited to western and central regions of the country. In Gujarat, for example, total rainfall in 1899 was only 7.3, as against the normal average of 33.02 inches. Sindh received only 0.77 inches as against previous average of 8.26, Hyderabad 16.33 against 33.54 inches and Central regions received 24.29 inches against the previous average of 43.40 inches, Rajputana 11.9 inches against 26.98 and Punjab 8.95 inches against 21.28 inches (Bhatia, 1991).

In the last two decades of the 19th century, India witnessed six major famines, an average of one famine every three years. With the exception of Punjab province, hardly any region escaped from famine and mass deaths caused by hunger. The major provinces which suffered the most were: North Western provinces, Bombay Deccan, Madras Presidency, Orissa, Bihar, Oudh, and Rajputana.

George Blyn’s study (1966) found that between 1891 and 1917 the rate of growth of foodgrains was higher than the population in all regions of India except Bengal, Bihar and Orissa. However, Bengal province was producing surplus foodgrains even as late as 1880. Based on Blyn’s findings, all major famines had taken place during the period when India was still producing surplus food. However, with the expansion of railways and roads after 1880s, the foodgrains could be sold to possible other markets. As Ghose (1982: 378) noted that “there is a clear evidence to suggest that none of the famines was caused by an absolute food shortage. Almost all the official enquiry reports note that even during the worst phase of the famines no absolute food shortages were experienced.”

The 1943-44 the Bengal famine killed nearly 4 million people and it was said that the responsibility could be placed on circumstances created by the war, and the government not taking any emergency measures to tackle this severe problem. Bengal province grows seasonal crops annually, which include, Aman (winter) which is harvested in December and contributes a large proportion of the annual output. The Boro crop (spring) is harvested in February and March, which is a much smaller proportion of the total annual production. Aus (autumn) crop is harvested in September and its production is quite substantial in the total annual agricultural output. The Aman harvest of 1942 was a bumper harvest, but this good output did not lead to any food stocks. However, the 1943 crop turned out to be a poor harvest. The production of Aman in 1943 was 6 million tons as against the previous year’s output of 8.9 million tons. There was a shortfall of 2.9 million tons. The foodgrains in 1943 were only enough for 49 weeks’ worth of requirements for the population. If the war had not taken place, then the number of deaths would have been much less. However, a few months later, in December 1942, the price of rice doubled compared to ten months previously. Then again in February 1943, the prices had nearly tripled compared to January 1942. In the summer of 1943, the price of rice had quadrupled. This sharp increase in prices was aggravated by the government’s lack of effective policy. The situation became worse due to the ineffective coordination of the administration and the need for the imperial war economy (Daoud, 2018).

In February 1942, Singapore was occupied by the Japanese army and Burma was occupied in March 1942. The government of India did not prepare itself with food stocks and used ‘denial policy’. Then there was surplus rice in Bengal and the government put restrictions on boats or other transportations, so if the Japanese entered, they would not benefit from resources. Due to the war, in the close vicinity of Bengal at the Burmese border, the food supply from Burma was ceased. The government in Bengal put up barriers against the movements of foodgrains and other essential supplies due to the fear that it might fall into the enemy’s hands. There was also a huge influx of refugees from Burma into Bengal. At the same time there was an increase in demand for foodgrains by the army and also Burmese refugees needing to be fed. However, there was a total lack of preparedness from the government, and no planning was done at the beginning regarding the potential food scarcity situation. All these developments led to a sharp rise in prices and a decline of food supplies in the province.

The Bengal famine required a large supply of food in the public distribution system. A large food stock would have helped in undermining or minimising the speculation in food prices during the famine. Thus, there was a failure by the government to anticipate the famine and prepare for it (Sheldon, 2009).War preparation, including an increase in food stocks for the population, would have helped to face this critical situation. The government’s refusal to permit more food imports into India to tackle the famine led to mass deaths.

Bengal produced rice and other food grains not only for domestic consumption and exports, but also during the war they were seen as a core factor for military logistics. The British thought to keep food away from the Japanese military in case they invaded Bengal. There was a decline of food output, which resulted in food shortages that also coincided with disruptions of the food supply. But at the same time, merchants found this an opportunity to maximise their profits by raising prices. In July, prices remained the same, but soon afterwards climbed upwards rapidly and reaching beyond where the poor could buy, resulting in mass starvation and deaths. For instance, Yasmin Khan (2007:17) on the Bengal Famine of 1943-44 found, “the Bengali public had been left starving to death, and perhaps as many as three millions died because of shoddy government food allocation and skewed political priorities”.

The expansion of commercial crops forced the farmers to abandon, directly or indirectly, who earlier had cultivated subsistence crops and thus increased vulnerability among the poor peasants.

The government had focused on the global war efforts and ignored the food situation in Bengal. As Economist acknowledged British War time priorities. “The best way to end the famine is speedy victory and, however hard the decision, food ships must come second to victory ships” (Cited in Grada, 2008: 30). Shashi Tharoor (2018) blames Winston Churchill, the former British Prime Minister, as being responsible for the Bengal famine in India due to his role in the 1943-44 Bengal famine, where four million people were starved to death. Tharoor has put Winston Churchill in the same category as some of “the worst genocidal dictators” of the 20th century because of his complicity in the Bengal Famine. In 1943, Churchill diverted food to British soldiers and countries such as Greece while a deadly famine swept through the Bengal province.  According to him, the Bengal province was not at the border of the Second World War, but sill more than seven times the number of people died compared to Britain. (Tharoor, 2018)

Two aspects are crucial to examine, namely, the expansion of commercial crops, and at the same time, neglect in investment in the agriculture sector (Siddiqui, 2020b). The exports of opium, cotton, indigo, jute, wheat and rice were the main priority of the government with the aim to earn maximum foreign currency, including from China, and also to supply cheap food to Britain. The expansion of commercial crops forced the farmers to abandon, directly or indirectly, who earlier had cultivated subsistence crops and thus increased vulnerability among the poor peasants.

 

5. Exports of Agricultural Commodities

There were three key factors which initiated changes in India during the colonial period, namely: 1) the expansion of commercial crops for exports, 2) the land revenue collection system and 3) the destruction of indigenous industries (Siddiqui, 1996). Indian peasantry was forced to produce opium, cotton, and indigo to export to China to pay for Britain’s imports (Trocki, 1999). The constant need for ‘tribute’ and increasing costs of imperial wars required India to raise exports and also increase in land revenue, which resulted in frequent famines, and a large number of deaths.

In pre-colonial India, the land rent was collected after the harvest, which meant that if there was a poor harvest due to floods or droughts, then the rent charges were lowered. The land revenue i.e. agricultural surplus was distributed among the ruling elites, and they spent it on local consumption, as then there was no demand for European goods in India. The high land rent and extraction of surplus was so high that peasants’ indebtedness and hunger rose to an unprecedented level, which was unknown in the past. For instance, Ahuja notes (2004:151) “rudimentary ‘famine policy’ practised in Mughal North India that relied on the prohibition of food exports from famine-stricken areas and on the regulation of food prices in urban markets… Nawab Asaf ud-Daula reportedly gave employment to 40,000 people on construction sites in Lucknow during the ‘Chalisa’ famine…” No such evidence is available for the establishment of similar ‘famine works’ by the colonial authorities.

Moreover, there was a sharp increase in the amount of the land-rent payment, which was collected before the harvest, which ignored the uncertainty in agricultural output due to natural disasters such as floods and droughts. During droughts or floods, peasants did not receive any relief from the government (Ahuja, 2004). Therefore, they were left with no choice, but to borrow against the security of their land. As a result, peasants had little capital to make long term investments in the land, while the absentee land owners found higher returns in money lending rather than long-term improvements in land productivity. Exorbitant interest charges by private money lenders not only impoverished the peasantry but undermined long term investment in the agricultural sector.

The high land revenue charges increased money lending and rent seeking activities, and the land appropriation by absentee landowners rose sharply as was never seen before the pre-colonial period. Under British rule, land assumed the position of a capital asset and a new concept of English landlordism was imposed. With the introduction of railways in the mid-19th century, the trade in agricultural commodities increased, but at the same time food prices rose sharply during that period. As land became private property and more valuable, landowners could borrow money. These developments led to a sharp rise in peasants’ indebtedness in the 19th and early 20th century. However, the high interest rates charged by the private money lenders, in a situation of uncertain crop production and prices, made it very difficult to repay the loans. As a result, there was also a huge increase in dispossession of land and the land ownership of absentee landlords-cum-merchants rose. There was a huge transfer of land from peasants to non-cultivating money lenders.

By the mid-19th century, the Indian economy had been fully transformed into a colonial trade pattern, where its export consisted mainly of agricultural commodities such as foodgrains, and the home charges were met by exporting such commodities, while the imports consisted of manufactured goods, especially cotton textiles and machinery (Siddiqui, 2015c). After the 1880s, the trade imports became more diversified, due to the growing penetration of foreign manufactured goods such as cotton textiles, capital goods, machinery etc. (Siddiqui, 1996) This in turn further undermined the position of the local producers and hastened the decay of indigenous industries and handicrafts.

These changes took place with the decline of handicraft industries and during changes in agriculture when lands under cultivation of food crops were reduced to give way for expansion of commercial crops. The colonial government destroyed India’s once-flourishing textile industries, and forced more people into agriculture for their survival. This, in turn, made the Indian economy much more dependent on the whims of seasonal monsoons. This also coincided with a rapid increase in land revenue to finance Britain’s military overseas ventures. And also food exports to Europe were increased to earn foreign exchange to benefit the colonizers. Table 1 shows trade between 1859-60 and 1879-80. Both exports and imports rose during this period. Table 1 indicates a trend in continuous rise in exports over the whole period. Another important point is that exports have risen faster than imports. Table 2 shows the exports of goods from India. Among the exports of agricultural products, most prominent were wheat, opium, raw jute and tea, as indicated in Table 2. Rising exports of agricultural commodities also meant more land was transferred from cultivation of food crops to non-food crops. As a result, the ground was prepared not only for a change in the nature of famine in India, but also an increase in its frequency.

Table 1: India’s Foreign Trade (value in crores of Rs, 00000000,s)

Year Total Exports Total Imports Total Trade
1859-60 28.9 40.7 69.6
1864-65 69.5 49.5 119.0
1869-70 53.5 46.9 100.4
1874-75 58.0 44.3 102.3
1879-80 69.2 52.8 122.0

Note: 1£ = Rs 10.

Source: Bhatia, 1991, pp. 36, Table 2.

 

Table 2: Exports of goods from India (value in crores of Rs, 00000000,s)

Year Foodgrains Opium Raw Cotton Raw Jute Tea Animal Skins & Hides Indigo
1859-60 3.6 9.0 5.6 0.62 0.13 0.44 2.0
1864-65 6.0 9.9 37.5 1.4 0.3 0.37 1.9
1869-70 3.2 11.7 19.0 2.0 1.0 1.7 3.2
1874-75 5.5 12.0 15.3 2.7 2.0 2.7 2.6
1879-80 9.9 14.3 11.1 4.3 3.0 3.7 2.9

Note: 1£ = Rs 10.

Source: Bhatia, 1991, pp. 37, Table 4.

 

On the question of development of handicrafts and commercial organisations, during the last decade of the 18th century Vera Anstey (1929: 5) noted “that the economic condition of India was relatively advanced and Indian methods of production and of industrial and commercial organization could stand comparison with those in any other part of the world”. After the colonisation of India, Britain imposed heavy tariff duties on Indian imports to protect her textile industry, and began to seek markets for her manufactured products in India. For example, Britain’s cotton export to India rose from £0.11 million in 1813 to £3.86 million in 1840, and further rose to £5.22 million in 1850 and again to £6.35 in 1856. The expansion of railways and roads further helped to expand cheap imports from Britain. It was not only the textile industry which suffered similar turns were seen in shipping, in paper, shoe making and many other industries. For instance, in Azamgarh district in 1837-38, the number of those who used of foreign clothes, was negligible, but by 1860-61, about 77% of the population in the district were buying British clothes. As Sheldon (2009:75) emphasis, “around 1750, Britain was an importer of Indian textile, but a century later India was clothed by Britain, entirely to loss of the Indian producers. By 1900 India had been eclipsed in world markets largely due to the aggressive protectionism of the colonial state. Britain did invest in infrastructure that would eventually assist Indian development; roads railways, telegrams and electric grids were all financed under British rule, but not of course, without a downside, and not always to the advantage of the India people as a whole. For the mid-Victorian generation there was no more vivid marker of European progress and Asiatic backwardness than the railways”.

The white settler colonies such as Australia, New Zealand and Canada enjoyed dominion status from the mid-19th century onwards and were given the freedom to enact their own economic policies to suit their domestic interests. As a result, they were able to impose tariffs on import manufactures to protect their domestic industries. Such economic freedom was denied in non-white colonies such as India.

The railways served the strategic purpose of the empire and the profits were not invested to build related industries and technology towards its advancement. The improved communication and transport helped to enhance British military and imperial supremacy to use against its rivals e.g. Germany, who were threatening domination. The opening of the Suez Canal in 1869 was helpful to Britain when other major world powers erected tariff barriers against British goods. Then Indian colonial markets integrated by railways became more important for British industrialists to sell their products. The roads and railways also facilitated the exploitation of raw materials and food products in favour of Britain.

 

The British government believed in free-trade and non-interference in the market (Siddiqui, 2016) and did nothing to check the huge hikes in foodgrain prices.

6. Conclusion

During the drought and less rainfall, the land became dry, hard, and difficult to plough and sow seed; as a result, agricultural output was reduced further. It caused food shortages, starvation and famines. Furthermore, it also led to the death of a large number of animals and it became difficult to carry on agricultural operations in the next few years after the occurrence of famine. On the other hand, during the famine, the rise in foodgrains prices, decline in rural employment and stagnant wages, along with the decline in handicraft industries and de-population of the cities left little scope for employment outside the agricultural sector. As Ghose (1982: 374) noted, “There were numerous famines and scarcities during the whole period of British colonial rule in India. The first of these, the Bengal famine of 1770 in which an estimated over ten millions died, was essentially the consequence of plunder by the undisciplined colonialists of the East India Company. The last famine in British India, the Bengal famine of 1943, was unique in that it was not precipitated by any natural disaster. With these two exceptions, all the other famines that occurred during this period were preceded by drought”.

Similarly, on famines in British India, Ray (2013:5) comments, “A crop failure leading to a starvation deaths during a famine or hardship among the victims during times of scarcity, because the relationship of people to food was not that direct, and the manner of its internal distribution played a very important role in the causation of famine and death… low-caste peasantry and agricultural labourers with insufficient land or with no land at all was loss of employment, as bad weather made agricultural operations impossible and there was a tendency to cut down the number of labourers as grain became increasingly costly.”

The British government believed in free-trade and non-interference in the market (Siddiqui, 2016) and did nothing to check the huge hikes in foodgrain prices. The government policy encouraged households to sell surplus foodgrains to central depots using recently built railroads and most of it was exported to Britain. Relief funds were scant because the government was eager to finance overseas military campaigns. The administration firmly believed in the Malthusian idea that famine was nature’s response to Indian over-breeding. Millions of people perished when severe droughts turned into famines due to the government policy of exporting food, while adhering to laissez-faire and non-intervention policies. In contrast, during the per-colonial period, in the famines the Mughal rulers clearly recognised that their legitimacy would be tested, and charity works such as distribution of food to the poor was seen as the most common response. They were local rulers and in order to rule, the perception of their subject was seen as crucial to stay in power.

This study has found that failures of both markets and state institutions lay at the heart of the famine causation and mass deaths. There were wide ranging policy failures and complex relationships to famine-related deaths during the colonial government in India. The colonial government strictly relied on ‘Malthusian ideas’ that famines were the natural outcome of overpopulation. The government’s faith in non-interference in the markets during famines made matters much worst.

Moreover, the government allowed unrestricted exports of foodgrains even during times of famine, and also government made sure that foodgrain prices were determined by the market forces of supply and demand. Furthermore, the commercialization diverted resources away from domestic food production towards non-food crops for markets, and also agricultural output underwent greater price fluctuations. Finally, during the British colonial rule the frequency of famines and deaths increased sharply and mass deaths took place due to a number of reasons such as government policy failure or inaction and also a lack of preparation to combat this extraordinary situation.

This article was originally published on July 20 2020

About the Author

Dr Kalim Siddiqui is an economist, specialising in International Political Economy, Development Economics, International Trade, and International Economics. His work, which combines elements of international political economy and development economics, economic policy, economic history and international trade, often challenges prevailing orthodoxy about which policies promote overall development in less developed countries. Kalim teaches international economics at the Department of Accounting, Finance and Economics, University of Huddersfield, U.K.. He has taught economics since 1989 at various universities in Norway and U.K.

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Can a United BRICS Starting a Process of De-dollarization?

Dollar

By Emil Bjerg, journalist and editor of The World Financial Review

Ever since the abolition of the gold standard, the US dollar has dominated international trade. Will the coordinated attempts from the BRICS countries end the dollar hegemony?

“Every night, I ask myself why all countries have to base their trade on the dollar. Why can’t we do trade based on our own currencies?” Those were the words passionately spoken by the Brazilian president Lula during a recent state visit to China  – symbolically in front of the New Development Bank in Shanghai, also known as the BRICS bank.

Brazil’s president is not the only BRICS leader to contemplate a disruption to the dollar hegemony: Increasingly, it’s being asked if “BRICS [can] De-dollarize the Global Financial System?

During Xi Jinping’s visit to Moscow in March, Vladimir Putin suggested that the yuan should be adopted for trade between Russia and Asian, African, and Latin American countries.

Xi Jinping, whose global ambition has long been challenging US dominance, is pushing through deals linked to the yuan. Recently trade with Saudi Arabia, Brazil, and even France has been carried out in yuan.

The BRICS Five has numbers to back up their recent display of currency confidence. A historical news story – that was covered more in the media of BRICS countries than in the G7 countries – is that the BRICS countries combined now contribute more to the global economy than the G7 countries. The BRICS five account for 31.5 percent of the global GDP, while the G7 countries contribute 30% of the GDP.

A movement from West to Southeast

The movement towards a potential de-dollarization happens now for a number of reasons.

The Russian invasion of Ukraine is a driver of a lot of change on the global scene. The American sanctions against Russia – especially the sanctions on SWIFT – is by many observers seen as a ‘weaponization’ of the dollar. According to analysts, using the dollar as a political instrument is “likely to accelerate a move already under way by many countries to diversify investments into alternative currencies”.  With its war in Ukraine and the subsequent sanctions, Russia tries to avoid trading in US dollars and euros, which are viewed as “toxic” currencies – even if they’re unable to avoid the currencies altogether.

The perceived weaponization of the dollar has been a factor in a myriad of trade deals between countries from Asia, South America, and the Middle East. Among them are India and Malaysia’s agreement to trade in the Indian rupee and Brazil and China’s to trade in their own currencies.

Partnerships are being formed and strengthened across BRICS, while BRICS countries – especially China – are strengthening relations with developing countries. This happens while the US is increasingly losing support in developing countries. According to a 2022 study from the Centre for the Future of Democracy, for the first time ever, more people in developing countries are slightly more favorable towards China (62%) than towards the United States (61%). While that doesn’t necessarily reflect the politics of leaders of the worlds developing countries, it reflects that we’re moving from a unipolar to a multipolar world, not just financially, but also politically and culturally.

Add to that, that none of the BRICS countries are interested in a unipolar world order with US at the end of the table. China has enormous global ambitions – for a long time, Xi Jinping has displayed interest in accelerating the development from a unipolar to a multipolar world order. The movement towards a potential de-dollarization is a symbolic, practical, and financial advantage to strengthen that agenda. Vladimir Putin’s Russia is still in a cold war with the US. Brazil’s main trading partner in recent years is China.

Let’s have a look at the financial infrastructure that could dethrone the dominance of the dollar.

De-dollarizing initiatives

While the discourse is full of drive to terminate the global dollar dominance, there’s no currency ready to take its place.

The yuan has its obvious drawbacks. Its potential in the global economy is severely limited by the fact that China doesn’t have free movement of capital. The yuan only accounts for approximately three percent of the global currency reserves and international payments.

Maybe that’s the rationale behind the rumored new BRICS currency – tentatively named ‘bric’. Foreign Policy writes that Russia is spearheading the development of the new currency. India Times quotes Alexander Babakov, deputy chairman of Russia’s State Duma, for saying that the BRICS countries are “in the process of creating a new medium for payments”. Further, India Times quotes Babakov for saying that, that the new currency is established on a strategy that “does not defend the dollar or euro”.

The new currency is – according to the same source – going to be secured by gold and other valuables like rare-earth elements. According to Babakov, there are plans to present the new currency at the BRICS summit, which will be held in Gauteng, South Africa, this August. Financial analyst Joseph W. Sullivan believes that if “the BRICS used only the bric for international trade, they would remove an impediment that now thwarts their efforts to escape dollar hegemony”.

A BRICS currency – a bric – would be a logical next step to build on top of existing financial infrastructures. China has already created a SWIFT equivalent, the Cross-Border Interbank Payment System (CIPS), which was launched in 2015 to boost the international use of the Chinese currency in trade agreements. The banning of certain Russian banks from SWIFT has likely accelerated the expansion of CIPS.

The BRICS countries also have their own development bank, The New Development Bank, often called the BRICS Development Bank. Since 2015, the New Development Bank has given loans for 33 billion dollars, against the 67 billion that the World Bank has loaned out in the same period.

Enter a new wave of ‘dollar-hatred’

Since the establishment of the Gold Standard in the 19th century, and its eventual dissolution in the 20th, the US dollar has remained a cornerstone of the global financial structure.

In the aftermath of World War II, a system was instituted in which the US dollar was tied to the value of gold, whilst other global currencies were pegged to the dollar. This transformed the US dollar into the world’s primary reserve currency, a position it has largely maintained since. The constant global demand for dollars gives the US a number of benefits including lower interest rates as well as reducing inflation.

According to Jens Nordvig, a leading currency expert, the current wave of animosity towards the USD is neither the first or the last wave of “dollar hatred”. In the last few decades, the dollar dominance has survived a severe financial crisis, balance of payments deficit, a pandemic and subsequent inflation.

With some of the biggest economic players in the world allied against it, the question is if the dollar will survive the most recent round of dollar hatred.

Towards de-dollarization?

As we move from a unipolar to a multipolar world, will we also move to a multipolar currency world?

According to experts in the field like Zoltan Pozsar and the aforementioned Joseph W. Sullivan, the number of initiatives and the speed of the development is so substantial that the position of the dollar will be undermined.

Other experts point to the weaknesses of the yuan – the low global market cap and China’s closed economy. While a new currency might threaten the dollar in the long run, it will most likely require decades of stable performance for investors to see it as a viable alternative to the dollar. Just look at the euro, which still hasn’t convinced investors after two and a half decades.

In that perspective, the immediate threat to the dollar might come from within the US. President Biden recently managed to stay clear of the debt ceiling, but the internal political polarization threatens the historic stability of the dollar. The upcoming elections might well add to the polarization and unpredictability that has characterized American politics in recent years.

There’s no currency ready to dethrone the dollar, but a number of initiatives and events – internal and external to the US – are shaking it. Now that the alliances have been carved out, the currency competition might become one of the determining factors for the world order of the 21st century.

The Most Common Causes of Truck Accidents

The Most Common Causes of Truck Accidents

Truck accidents remain a distressing reality on our roadways, causing significant loss of life and property damage.

Truck accidents occur due to a variety of factors, often stemming from human errors and poor judgment. Understanding the most common causes of Truck accidents is crucial in our collective efforts to prevent these tragic incidents and promote road safety.

Education and awareness play a vital role in addressing these causes. Public campaigns, driver’s education programs, and stricter enforcement of traffic laws can help to combat distracted driving, speeding, and drunk driving. By educating drivers about the dangers associated with these behaviors, we can encourage responsible driving habits and reduce the number of accidents caused by negligence. Consulting a Fort Lauderdale Truck accident lawyer can help a lot in negotiating with insurers and file a lawsuit if required.

Improving infrastructure and implementing advanced safety features in vehicles can also contribute to accident prevention. Well-designed roads, clear signage, and proper lighting can enhance visibility and minimize risks.

It is also important for drivers to exercise personal responsibility. Being aware of one’s own limitations, avoiding distractions, and adhering to traffic laws are fundamental steps towards safer driving.

Moreover, fostering a culture of accountability is essential. When accidents occur, it is crucial to investigate and determine liability accurately. Legal systems and insurance policies must ensure that responsible parties are held accountable for their actions, providing compensation to victims and their families

The most common causes of Truck accidents are as follows:

1. Distracted Driving

One of the leading causes of Truck accidents in the modern era is distracted driving. With the rise of smartphones, drivers are more prone than ever to divert their attention from the road. Texting, talking on the phone, checking social media, eating, or engaging in any activity that diverts the driver’s attention can significantly increase the risk of an accident. Even a momentary lapse in attention can have grave consequences.

2. Speeding

Exceeding the speed limit is not only a traffic violation but also a major contributor to Truck accidents. When drivers travel at high speeds, they reduce their ability to react to sudden changes in traffic patterns, increasing the likelihood of collisions. Speeding also reduces the effectiveness of safety features such as airbags and seat belts, making accidents more severe and increasing the risk of fatalities.

3. Drunk Driving

Despite ongoing education and strict legal measures, drunk driving continues to claim numerous lives each year. Alcohol impairs judgment, coordination, and reaction time, rendering drivers unable to safely operate their vehicles. Intoxicated drivers have diminished control over their movements, leading to swerving, running red lights, or even driving the wrong way on one-way streets.

4. Reckless Driving

Reckless driving encompasses a range of dangerous behaviors, such as aggressive tailgating, excessive lane changes, running red lights, and ignoring traffic signs and signals. These behaviors not only jeopardize the safety of the driver but also pose a significant risk to other individuals sharing the road.

5. Weather Conditions

Adverse weather conditions contribute to a significant number of Truck accidents. Rain, snow, fog, and ice make road surfaces slippery, reducing traction and compromising drivers’ control over their vehicles. Limited visibility during inclement weather amplifies the risk, as drivers may fail to anticipate obstacles or respond to sudden changes in traffic patterns.

6. Fatigue and Drowsy Driving

Driver fatigue is a silent killer on the roads. Sleep-deprived or drowsy drivers have impaired reaction times and diminished situational awareness, similar to the effects of alcohol. Falling asleep at the wheel can lead to catastrophic accidents, and even nodding off for a few seconds can result in a collision. Adequate rest and taking regular breaks during long journeys are essential to combat the dangers of drowsy driving.

7. Inexperienced or Elderly Drivers

Inexperience and declining cognitive abilities can increase the likelihood of accidents among certain groups of drivers. Teenagers and novice drivers may lack the skills to handle complex driving situations, while elderly drivers may experience reduced reflexes and slower reaction times. Age-related impairments, such as declining vision or hearing, can also affect driving abilities.

In conclusion, Truck accidents arise from a complex interplay of factors, ranging from human behavior to external conditions. By addressing the most common causes, we can work towards reducing the occurrence of these tragic events. Combating distracted driving, speeding, drunk driving, and reckless behaviors, while promoting education, awareness, and responsible driving practices, will contribute to a safer and more secure road environment for all.

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