South Asian Economies in Two Imperialist Regimes between 1950 and 2020

Abstract

The South Asian region experienced a steep economic decline during the period 1750–1950. This was primarily due to British Colonial rule that transformed this region from a vibrant production hub to a source of raw materials, a tribute paying region, and a market for manufactured goods from Britain. Between 1950 and 1980, the newly independent nations that constituted the region of South Asia implemented import substitution industrialization (ISI) policies that tried to reduce their dependence on imperialist powers. During this period, the South Asian share in the global economy declined. Between 1980 and 2020, as the imperialist countries moved from a regulated economic order to a more laissez-faire one, many of the South Asian economies were restructured towards becoming more open, more private, and more market oriented. The workforce that was educated during the 1950–1980 period became a source of cheap labour power for global corporations. At the same time, less educated workforce became available for labour-intensive exports to the imperialist countries. Many of these South Asian economies have also become suppliers of cheap raw materials and primary produce for imperialist countries as well as emerging economic powerhouses like China. During this period, interestingly, the share in the global GDP of South Asian economies increased. This chapter contrasts the two imperialist phases after 1950 and show how relations of dependence of South Asian economies with the imperialist countries have been perpetuated differently during these phases.