Explain the three types of movements or flows within international economic exchange.Find one example of each type of flow which involved India and Indians, and write a short account of it.
Hi,
There were three types of movement or ‘flows’ within international economic exchanges as identified by the economists:
- The first is the flow of trade which in the nineteenth century referred largely to trade in goods (e.g., cloth or wheat).
- The second is the flow of labour – the migration of people in search of employment.
- The third is the movement of capital for short-term or long-term investments over long distances.
An account of the second type of flow is being given, that involved Indians and India:
Flow of labour
- Indentured labour migration from India was a tale of faster economic growth as well as great misery, higher incomes for some and poverty for others, technological advances in some areas and new forms of coercion in others.
- Hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world.
- In India, indentured labourers were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation.
- Most Indian indentured workers came from the present-day regions of eastern Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu.
- Decline in cottage industries , rise in land rents, clearance of lands for mines and plantations affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work