Paul Baran : destructive capitalism in underdeveloped countries
Relevant for Sociology Optional for Civil Service Examination.
Sociology Paper -1
Unit 10 : Social Change in Modern Society
Paul Baran : destructive capitalism in underdeveloped countries
- Marx believed that capitalism is characterized by creative destruction. It has two effects: destruction, and regeneration. Paul Baran emphasized the destruction side of capitalism in underdeveloped countries.
- He did not find evidence of regeneration. Rather, the monopoly capitalism of the twentieth century, unlike the competitive capitalism of the nineteenth century, had a vested interest in maintaining backwardness and dependence in the periphery. Baran’s analytical contribution led to the flowering of the pessimistic and stagnationist school of dependency in Latin America and Africa.
- Baran’s favourite example of the destructive effects of capitalism was that of India. He found that Indian social scientists, having experienced British imperialism, had developed concepts very similar to the dependency theorists of the late nineteenth century. Baran’s theoretical point of departure was an analysis of economic surplus. He defined economic surplus as the mass of resources (actual and potential) which a society could have at its disposal, in order to facilitate economic growth. It is the amount that might be reinvested in productive ways to increase the future level of social output. This surplus is the residual from total income after society’s basic needs for food, clothing, shelter, and human companionship have been met.
- But, this surplus may be grossly misused. It may be utilized to erect sumptuous and multiple residences for the rich, or it may be wasted through a variety of ways of conspicuous consumption. The military, or the church may make tremendous demands on the surplus, or it may be drained away by foreign power via plunder, or, by simple profit repatriation as a result of foreign control over less developed countries. The historical analysis made by Baran makes it clear that the sources of poverty of less developed countries are found in the extraction of this surplus under colonialism. Thus, colonialism blocked the potential for change.
- Backwardness and poverty is perpetuated in these regions. According to him, the oppression of the feudal lords was ruthless, but tempered by tradition. It was further worsened by the domination of both foreign and domestic capitalists.
- According to dependency theory, the exploitation of the people is multiplied because the oppression and violence inherited from the feudal past is combined with the rationality and intelligent rapacity of the capitalists. The fruits of capitalism were not to raise productive wealth in many countries such as India. These fruits went abroad and served to support a parasitic bourgeoisie at home. People lived in abysmal misery, and they had no prospect of a better future. Poverty and underdevelopment continued. They lost their time honoured means of livelihoods, their arts and crafts.
- There was no modern industry to provide new ones in their place. They were thrust into extensive contact with the advanced science of the west, yet they remained in a state of darkest backwardness. By reviewing the history of colonialism, Baran made the following conclusions
- profit margins fall due to the workers demand for higher wages
- foreign capital becomes the targeted source of increasing state revenue (by imposing higher taxes and higher royalty payments, for example)
- foreign exchange control is imposed to curb the funds flowing out of the country as repatriated profits
- tariffs on imported wage goods are imposed to protect domestic manufacturing.
- Theoretically speaking, the state could break this deadlock by opting for new programmes that-would make import substitution industrialization (ISI) more successful and dynam But the state, in the backward regions, is incapable of making the decisions needed to move forward on any front of development ladder.
- Baran argued that political revolution is necessary to break this pattern. He argued that by following the capitalistic route, these countries are not expected to achieve Rostow’s stage of ‘high mass consumption’.
- Instead, these countries would head towards their economic and social graveyards. Thus, by following the socialistic route, the less developed countries could reasonably expect some relief from poverty.
Reference: Static Portion
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1. Question: Define the term “ethnic movement” and provide an example from India.
Answer: An ethnic movement refers to a collective effort by a group sharing common cultural, linguistic, or religious traits, seeking to assert their identity and rights; an example from India is the Khalistan Movement in Punjab.
2. Question: Identify the main objectives behind the Gorkhaland ethnic movement.
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3. Question: What was the Operation Blue Star, and which ethnic movement was it related to?
Answer: Operation Blue Star was a military action in 1984, aiming to remove Sikh militants hiding in the Golden Temple in Amritsar; it is related to the Khalistan movement, which sought a separate Sikh country.
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Answer: The Assam Ethnicity conflicts primarily stemmed from issues related to immigration, land rights, and resource allocation, leading to clashes, riots, and evolving relationships among indigenous communities to address challenges.
6. Question: Briefly describe the role of the Dravidian Movement in terms of caste and societal structure.
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7. Question: Name the prominent ethnic movements in North-East India and specify one common objective.
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8. Question: What is the key argument of Gail Omveldt regarding traditional Indian society and multiculturalism?
Answer: Gail Omveldt opposed romanticizing traditional Indian society, arguing that hierarchy has always dominated it and dismissing the notion that multiculturalism is an intrinsic feature of Indian society as a myth.
9. Question: Briefly explain the social hierarchy factor as a contributing element to ethnic movements as suggested by Olzak.
Answer: Olzak suggests that the construction of hierarchies among ethnic communities, which often leads to the suppression of one group by another, is a key factor that can instigate social and ethnic movements.
10. Question: Identify one consequence of the unequal economic development factor within the context of ethnic movements in India.
Answer: One consequence of unequal economic development is the marginalization and underdevelopment of certain groups, leading to feelings of alienation and sometimes initiating ethnic movements as these groups strive for equality and recognition.
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