Preface

This book grew out of a series of lecture delivered to the First Batch of PGDM students of the
Calcutta Business School (CBS). Dr. Subir Chowdhury, Former Director IIM Calcutta,
IISWBM Advisor, and Trustee Chairman of Vivekananda Nidhi and NIHD and later IPHMR
and presently the Chairperson of Academic Council and Mentor of CBS and Governing Body
member requested me to develop a framework and deliver a course of lectures in the
Development of Man and Management to expose the students of management to the historical
realities. I am not a professional historian but had an interest in the subject. At Dr.
Chowdhury‟s request I had delivered a course of lectures on Comparative Ethos of
Management at NIHD and was initially hesitant. At his insistence, I accepted the challenge,
drew up a frame work and taught the course which I believe was a pioneering attempt for any
Management Institution. Way back, Prof. W. H. Macnaill had taught a course on World
History to the management students at the University of Chicago and had published a book
“World History”. The present attempt has a much larger scope covers the entire sphere of
human development: social, political, economical and especially the business management
aspect in a narrative style. To Dr. Chowdhury‟s thinking, this grounding is essential for
management students to appreciate the socio-political and psycho –philosophical contents of
proper management as has been realised of late.
The first presentation was well reasoned and the subsequent lecture notes were edited
with extensive references. The publishers approached, however, suggested a synopsis from
and it was decided that a CD would be offered with all details of the book in a synopsis form
for easy comprehension. Hence this synopsis.
Contributions were made by my colleagues Prof. Sudeb Das, Dr. Subir Chowdhury
and Dr. Koustab Ghosh in covering that entire scenario. Students also were asked to
participate and their contributions have been incorporated.
The readings have been vast and varied. Without the active assistance of Sri P. S.
Guha, Librarian, IPHMR, the data collection, analysis, library inputs and referencing
especially in a time bound situation would not have been possible. Thanks to my friend Sri B.
G. Dutta, for assistance provided in writing the section on Religion and to Late A. K. Gupta,

1
my relative for his unpublished note on “Dravidian gene drift in ancient India” which was not
done due to his sudden demise. Thanks are due to his family for permission.
To Sri Arun Kanti Das Gupta, the Librarian, Administrative Staff College, Hyderabad,
thanks are due for his review and comments.
The readings have been so vast and wide spread that I would highlight the following
texts for special mention.
1. A Short History of the World – H. G. Wells, London, Penguin
2. Man made himself – Prof V. Gordon Child. New York, Fontana,1966
3. A World History, 4th ed. – Prof. W. H. McNeill, Chicago, USA- Oxford University Press.
1998
4. Science in History – Prof. J. G. Bernal, London, Penguin
5. Bound Together – Nayan Chandra, New Delhi, Penguin, 2008
6. The Wonder this was India – Prof A. L. Basham. New Delhi, Oxford University Press.
7. Contours of the World Economy 1-2030 AD - Angus Maddison, Oxford University Press
8. Oxford History of India, - Vincent A Smith, New Delhi, Oxford University Press.
9. Cambridge Economic History of India, Vol 1-2 – T. Roy Choudhury and others,
Cambridge, Cambridge University Press.
10. A History of Ancient and Early Medieval India. – Upinder Singh, New Delhi, Oxford
University Press.
These books and papers provided by internet have moulded the structure of this
presentation. Further Prof. T Roy Choudhury reviewed the first draft and suggested many
changes which have been incorporated.
My late wife Dr. Amiya Barat, a student of Prof. A. L. Basham and Major J. B. Harrison
of School of Oriental and African Studies (SOAS), London University, was a trained historian
and I must have learnt from her and her teachers Late Prof. Dr. P. C. Gupta and Late Prof. Dr.
S. P. Sen of Calcutta University with whom we have had frequent discussions in the early
sixties. If the readers like the present book, it goes to their credit and not mine. Of course the
main credit lies with Dr. Subir Chowdhury, a life long colleague and friend who motivated
me, literally goaded me to carry out this task and even suggested the title of this publication. .
Dr. Koustab Ghosh, my colleague at CBS has taken the burden of editing the book and
must be thanked for his effort.

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 I have treated the matter as History without the rigour of historical referencing. I have
been more interested in the developmental trends and have skimmed over wars and dynasties
and the like. This may be questioned but the presentation has satisfied the management
students, peers, and CBS authorities adequately.

To the management of Calcutta Business School (CBS), my thanks for giving me this
opportunity.

Prof. Nikhil K. Barat

June 2012 Distinguished Professor
Kolkata Calcutta Business School

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Foreword

4
 Editor’s Note

The subject that this book titled “Evolution of Man & Management: The Saga Unfolds”
encompasses in some detail the process of human development and simultaneous emergence
of the management as a discipline in all areas of human activities. The wonder lies in the fact
that the management was never practised consciously in a planned and systematic manner,
rather the human race gave birth to the formal management system and techniques by initially
following it unconsciously and unknowingly as well with the intention of improving the
quality of life. Therefore, the subject is fascinating and worth exploring.
The first three chapters give an overview of human progress in a chronological fashion
worldwide. These chapters necessarily highlight the evolution of the universe, ancient
civilizations, development of groups, clans and communities, and dispersion as well as
concentration of the human groups from and to various parts of the world known as “the long
march”. The subsequent chapters acquaint the readers with the essential aspects of human
civilization in terms of development of religion; language and script; money and banking;
trade and commerce; education, science and technology; and more importantly the art of
living. These topics form the foundation stone of modern human civilization, and paved the
way for macro development in a coherent and systematic approach. The chapters at the end
enumerate the modern developments of the nations with specific reference to the geo-political
environment of the world. The entire work and the concepts, which were developed keeping in
mind the trend and pattern of human development, and its connection with the mainstream
management thoughts and theories. The truth has to be accepted that although management
was recognized as a science in the last few centuries but practiced since the growth of
mankind.
I feel privileged to have worked with Prof. Nikhil K. Barat, Distinguished Professor at
Calcutta Business School, on developing this subject as well as chapterizing this book which
would be an eye opener to the community of management education across the globe. I hope
with such a masterpiece of work at hand, they would all appreciate the close association and
interplay between the various facets of man and management.

Dr. Koustab Ghosh

Calcutta Business School

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 Chapter I

Introduction

The story of development of man and management must start with the appearance of
man-like life form on the face of this earth. It is now recognised that after the Jurassic Age,
man like creatures appeared at different regions, Neanderthal man in Europe, Java man in
Indonesia, Peiping man in China, African man in Rhodesia, Australian man in Australia and
others, several million years before Christ (A.D.) The „True man‟ as H.G Wells classifies in
his Short History of the World, “The Homo sapiens” (the thinking man) first appeared a few
million years ago in Rhodesia (now Kenya) in Africa. Recent findings have claimed oldest
fossil skeletons in South Africa which was 2 millions year old spread out all over the world as
the forefathers of the modern man. With their families, driven by their curiosity and their risk
taking nature, they marched out of Rhodesia (South Africa) and reached out to the four
corners of the world. This „long march‟ brought in major changes in their life style, habits,
behaviour patterns and changed the nomads to the ruler of the Earth. It is a fascinating story
worth recalling.
In the process, the nomads developed stone tools, replaced single hunting by group
hunting, learnt to make potteries of various kinds and the specifics of creating surplus and
barter as trade, learnt the control of fire, used natural caves and developed different forms of
habitat , domesticated animals and mastered the art of agriculture which brought about a sea-
change in their life style, built settlements and practiced group living leading to the
establishment of society, job definition and division, development of rudimentary law and
order, social responsibilities, scripts and language followed by the possession of fertile land
leading to the establishment of State and kingships.
The first signs of such settlement have been traced to Mesopotamia, the land between
two rivers, Euphrates and Tigress and the Nile River banks. In Sumer, Sargon built his first
empire in Mesopotamia and set up an organization to govern the people who lived in these
cities. He builds ports and called for ships from India and Africa to call on his kingdom for
trade and commerce. Gilgamesh was yet another leader whose victories have been recorded in
the first ever book of adventure. Fight between the constituents occurred for the possession of
fertile lands and kingdom fell and rose, Babylon was one such which excelled in large
buildings, establishing library movements and introduced social management. Hammurabi, a
Babylonian leader established code crafted on stone which is available for study even today.
The stream which reached India on the other hands developed its pristine Philosophy, basic
science, mathematics astronomy and a new script used in the Indus Valley, which even today
has not been deciphered. Trade continued both by land and sea, both to west and east with
India leading the activity. Evidence exists of the influence of Indian civilisation over the
Sumerian civilization, though so far no evidence of ancient “Dravidian man” in the Indian
plane has been found. However “Dravidian” culture existed before the excellent Vedic
philosophy and Culture was developed in the Indus Valley around 6000-5000 B.C.
The stream that marched towards Europe was halted by the ice cover which spread over
the central Europe allowing only the Neanderthal Man to exist. Around the foothills of Poland,
a group settled and called themselves „Mitani‟. It has been inferred that they raided India

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several times and were identified as “Aryans” who along with Indian Rishis developed the
Vedic culture and the „Sanskrit‟ as the spoken and written refined language.
Other stream reached China after crossing the Gobi desert and settled, down in the River
Bend. Yet another stream followed the mammoths (great elephants) and reached Alaska, after
crossing the Baring Straits, which were frozen and reached America. They proceeded
forwards to Mexico and South America.
After the European snow cover melted, the wandering group moved to Greece and then to
Rome and then to Scandinavia and England where they drove out the Neanderthal man. The
greatest “Long March” was thus completed as far as the western world was concerned.
During this march, man learnt to look after themselves, learnt to organise, to build, to
fight, to store, to train, to subdivide responsibility, to learn discipline, and to evolve, formulate
and implement law and order, in short to manage and improve their lifestyle. In fact all the
fundamentals of management were being developed alongside as man progressed and
therefore it can be argued that these two developments (streams that of man and management)
were concurrent.
It has to be admitted, however, that this process was primarily need based. To borrow an
axiom “Necessity was the mother of Invention”. It has to be accepted that the rate of growth in
different regions so effected were widely diverse and differently oriented. Initially it was
Mesopotamia, then the scene of activities spread to India and China. The Europeans were a
late entrant as also the Muslims in the world forum. The development of knowledge and
education followed suit with a start in Mesopotamia, excelling in India, followed by Chinas
and then in Europe with exchange of ideas all along the way based primarily through trade,
commerce and sometimes through religion and even through wars. These aspects would be
highlighted gradually.

For convenience, the time periods have been sub divided into Pre A.D.; A.D. The first
millennium, the second millennium and commencement of the third millennium. The impact
of the Vedic religious thoughts of India, the spread of Buddhism, the preaching of Christ, the
growth of Islam spread by Mohammed and their impact over the lives have been analysed.
The Impact of Industrial Revolution in Europe and the reasons for this phenomenon; the
impact of technology and science and other turning points have been discussed in detail.
What is to be noted in this process of development the pace of growth and the timing
of the highs. The growth rate was initially steady but slow in keeping with the changes of the
need. With control over agriculture and food storage, there was a sea change in development
which culminated with the high degree of excellence reached in India culturally,
philosophically and socially, parallel with the growth of the Mesopotamian region. The
temporary decline followed with the rise and then decline of Buddhism, the rise and decline of
the Hindu kingdom, the growth of Greece and Rome, which led for the emergence of Europe.
The rise of China led to the growth of Korea and Japan.
The advent of Christ led to the spread of Christianity, the awakening of the masses and
the papal power. The rise of Islam followed and a series of crusades followed alongside the
growth of the Muslim power. This millennium has been classified as the “dark age” though
Muslims contributed positively both socially and economically.
From the start of the 2nd Millennium however Europe regained in status rapidly
through the establishment of various universities, spread of research and education, revival of
trade and commerce, navigation and the discovery of the sea routes to USA and India and

7
increase of wealth through increase of commerce and the establishment of the colonies. Once
again the natural wealth of China and India helped in the growth in Europe of the technology
improvement in the production process. The impact of Adam Smith‟s doctrine of efficiency
led to a sea change in the ultimate scenario with discovery of steam power, which placed
England at the leading position, and it became the “workshop of the world”.
This rate of growth was phenomenal. In about 500 years, the life style, thinking, mindset,
need and technology along with competitiveness pushed the growth rate exponentially. That
rate is still increasing but the negative pressures on Government and the price that has been
paid and will have to be paid is catching up. This is therefore present crunched time. How
mankind with all its thinking power and wisdom propose to resolve this issue is what is in
question. Technology is fast destabilising the life and growth of mankind. The thinking man
has now become technology driven and “success at all costs” seems to be the motto. This has
raised serious questions. Only the coming years will indicate whether the trend of blind
progress will continue irrespective of serious damage to the environment. Only time will tell.
The economic successes and the lack of holistic thought have raised questions to which
answers are required. May be new paths will have to emerge to save the mankind from itself.

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 Chapter II

Evolution, Growth and Maturity

Evolution of Man who is the central figure of this discussion merits an in-depth study
covering all aspects. The evolution of its habitat, the transformations, the growth trends etc.
have to be taken note of for understanding the process. The mystery of the creation of the
Universe, the Milky Way, and the Galaxy to which our solar system belongs and ultimately
the Earth which is a mid sized planet of our middle sized Sun will be discussed in rather lay
terms.

Evolution of the Universe: We do not know who created the Universe, how and why.
Scientists have expounded various propositions and the most likely one is the concept of “Big
Bang” which started it all. Prof. Edwin Hubble eminent American astronomer observed that
all the Galaxies where moving away from each other by studying their “red shift”. These
galaxy‟s are clusters of stars ad their planets which constitute the Universe. This proposition
supported Sir James Jean‟s model “The Mysterious Universe and the Expanding Universe”. It
was argued that the expansion must have started from a point and scientists proposed the
existence of the central egg of compressed material of quarks and leptons, the constituents of
the atom the prime source of all materials. This egg mist have been under unimaginable
pressure and temperature and must have exploded as Big Bang and created the universe. This
view is supported by the Indian Seers and Rishis (the learned men), and led to the search for
the remnant posits of some shock waves. Two scientists from Bell Laboratories, Dr. Robert
Watson and Dr. Arno Penzlas detected the back-ground radiation whichever way they set up
their microwave receiving antenna. This proved the single point start of the Bang, which
ultimately formed all the matter that makes the Universe.
Cosmologists and astronomers have been culling data about our universe and have been
astonished by its volume and spread. It is assumed to be spread over at least 93 billion light
years, a light year equalling approximating 6 million miles (6 x 1012) and is 13.73 ± 0.12
billion years old. A typical galaxy is about 30 light years in diameter and the typical space
between each galaxy is about three million light years. Our Milky Way galaxy is around 1,
00,000 light-years in diameter and is 2.5millon light years away from the nearest galaxy
“Andromeda”. Such is the magnitude of distance in space. Of the calculated weight, only 30%
is accounted for by the visible universe and 70% is contributed by the „dark matter‟, very little
of which is known and the results from CERN (the European Organization for Research based
in Germany) is expertly awaited. While its basic structure is known by the star maps and
surprise us by its sheer enormity and complexity, the reason of its birth, the controller of
event, the why, how and who continue to surprise us. Sir Roger Penrose has recently proposed
against the prevailing steady state model and the expanding model, and has suggested the
cyclic model, once again suggested by the ancient Indian savants, which involves the creation,
the collapse and recreation and re-collapses and argues that the present universe may well be
one carrying out a cyclic process.
Evolution of the Earth: The Earth known as the green planet belongs to the solar system
which is situated at the tip of a spiral arm of our galaxy ‟the Milky Way‟. Our sun is a middle

9
aged, middle-sized star whose light energy helps us live. The life story of a star has been
discussed in details and the Sun will continue to serve for some more time. Earth was created
either from the Sun or captured debris or objects caught by Suns gravity, is not known for
sure. It however is a unique creation protected by its own atmosphere and is in most favoured
conditions for the growth and preservation of life. It has controlled temperature, natural
resources, water, air, oxygen and other ingredients for supporting life forms. From a burning
mass, it cooled down, developed an atmosphere and was covered with water. Volcanoes
spread magma from the mother core and slowly a dry surface developed on the surface of the
earth. This is known as “Gondwana Land”.
Scientists have carried out a controlled experiment in a flask in which they had introduced
the basic gases like Hydrogen, Carbon di-oxide, Nitrogen etc and passed electric flashes in the
flask with water as the base and developed organic acids and chemicals. They argued that
these basic blocks of organic matter had developed in the young planet leading to
development of single cell creatures in the water mass. Whatever may have happened and it is
still a mystery, the single cell multiplied to multi-celled forms to algae which was most
probably the first living life form. Fish is the first life form which developed in the water.
Special fishes also were attracted by the earth surface. “Gelacanth” which was caught in the
Mauritius Sea is a case in point as also the existence of „Koi‟ fish in India, the tree climbing
fish. Scientists say fish life led to land life and then to bird life over millions of years and then
to the gigantic forms such as the Dinosaurs of the Jurassic age. Under mysterious
circumstances this life from collapsed due to a comet hit or otherwise. And land based new
life forms were evolving with stress of the similar variety and the vegetable life. Biosynthesis
had established and earth was growing with the new life form.

Evolution of Man: In this forest complex emerged the „homo‟ variety. It is said that they
emerged from the chimpanzee/ gorilla/monkey family and this was Darwin‟s conclusion
which set up a riot in London when first propounded in the mid nineteenth century.
Emergence of a creature like man was of multipoint and multi variety. The Neanderthal man
(the Gorilla) emerged in European land mass and headed for many centuries. In other areas
The Java man in Indonesia, The Peiping Man in China, Heidelberg man in Germany and
Australian man in Australia grew. These Men like creature went through many changes of
body formation. As Prof. Barnell has opined, it must have taken many centuries to evolve the
present structure and position of the thumbs in the hand, the changes in the feet structure, the
changes in the spine, and the coordination between the eyes and the limbs, besides other
refinements, Homo species developed through various phases, home habitat, Homo erectus,
Homo sapience being the important stage. The thinking man (Homo sapience) evolved about a
million year ago or earlier in Rhodesia (presently Kenya) and roamed in the forest as root /
fruit gather and minor hunter of small animals. They lived in groups, hunted in groups and
made stone tools and slingshots. They were afraid of natures‟ fury, the lightning and storms
and tried to please the external elements. While the man hunted and found food, the women
folk raised children and watched the vagaries of nature, the growth from the flying seeds and
rising of plants and thus started an interest in agriculture. The act of controlling fire was the
first break through and the tilling of soil to raise food was second most important
development. They also learnt to create Pottery were first using leaves and replacing were by
mud pottery of various kinds Sun dried and fire dried. In his quest to improve, man used great
ingenuity and thus seeds of management were planted. “Roti, kapda and makan” - food,

10
clothing and shelter availability were the major driving force. This and the desire to know
more about the surroundings, the quest for fresh hunting ground and shared curiosity must had
prompted the Rhodesian man (true man as identified by H. G, Wells) to march out in small
groups from the bush forest land in search of new habitat following the banks of river Nile.
They had by then domesticated certain animal and learnt the rudiments of agriculture, the role
of seasons, the importance of water and its management and the law of nature which had to be
respected. They took time to travel and reached the Nile river delta and then turned right to
reach the fertile land of Mesopotamia, the land between two rivers „Tigris‟ and „Euphrates‟.
Sahara was then a forestland and they choose to settle down in Mesopotamia (Present Iraq).

Long March of Man: With their acquired knowledge, mankind changed over from their
original nomadic life style to pastoral settlement. The original group continued with the long
march leaving those who wished to settle, marched forward in different directions. One group
headed towards north to reach Europe, which was then covered with ice. This stream settled as
group near Poland. They were known as „Mitani‟ and played an important role in
development. The main stream turned right and one section reached China crossing Gobi
desert, and the other branch faced the icy condition followed the mammoths (large elephants)
which they hunted and hired off to Siberia and then crossed the frozen Bearing sea to reach
Alaska and then the vast planes of United States of America where they established the
American Indian (wrongly identified by Christopher Columbus) civilization.
Another stream marched towards the Indian plane after marching across the arid land of
Baluchistan, crossing over the mighty Himalayas through the Bolan Pass. Some settled down
in the fertile Indus Valley, reacted with the Dravidian and other proceeded to Java / Borneo
then to Australia may be crossing some waterways by boat. In each of these settlements, man
developed new culture and style of living to ease their life style.

Phase I up to A.D. In Mesopotamia, several tribal groups emerged and occupied sections of
emerged the fertile Mesopotamian plane and set up small kingship and ruled. The Sumerians,
the Kassites, the Akkadians, the Elamists, the Mitanies all had their foothold but Sargon, the
great Sumerian king established the first empire and ruled over the entire area, He was a great
fighter, a great leader, and builder of port and sponsored sea trade. He also set up law and
order for governance and organised religious thinking. Gilgamesh was also a noted leader and
fight against Mitanies (Aryan) in various Sumerians had contact with Dravidians who were
settled in north India and had a long interaction with them. Sumerians who lived in small
groups which later developed into cities, Because of fertile land agricultural plots were spread
around the periphery of the central city which had a temple. The city state having enabled
them to afford the thinkers, the law enforcer and the administrators to function because of
storage of food. They had also developed a cuneiform (wedge) pictograph writing which was
changed to alphabet writing as developed by the Indians in the Indus Valley and later came to
be known as „Sanskrit‟ (the refined). Settlement life style had introduced major life style
change and essentials of management were put in place. Job definition responsibility
allocation, accountability, law and order and form of governance were all in operation for
efficient management though management was not considered as a science but a man skill.
Evidence also exists that in the shore of modern Turkey‟s a civilization grew up around
7400-6000 BC. This was a sea faring clan and they sailed and traded the Mediterranean posts.
It collapsed and was replaced by Sumerian civilisation. One word of interest, A K Gupta in his

11
unpublished note had shown the Dravidian gene had gone west. Many instances of Dravidian
Culture and influences pertaining to religion, language and governance besides building
construction are evidenced. The name Elamust the name of an important tribe was derived
from the Tamil word „Elam‟ meaning motherland. It was established by him that north
Dravidians was distinctly different from south Dravidian and interacted socially politically
and economically with the Mesopotamian culture and this transaction laid the roots of the
growth of Mehergarh civilization as an important trade port near Bolan Pass. Archaeologists
have found about seven different layers of civilization and it is estimated that the earliest stone
implements were about 8000 – 7000 BC with the last and top layer of about 3000 BC when
Mehergarh was destroyed by a massive earthquake. Besides the Sumerians and Kassites and
their frequent fight to gain control of fertile land, the Babylonian civilization (2000 BC – 800
BC) developed under Hammurabi (1799-1780 BC) and further under Arom (1689 BC).
Hammurabi was a great king and a social reformer who sought to codify law of governance.
This code crafted on stone is still preserved. Babylon fell in battle but rose again under
Nebuchadnezzar‟s father who established new Babylon while the son Nebuchadnezzar II built
a huge temple, a hanging garden, a large lighthouse and a library where written missive clay
tablets were preserved and they are available even today. Nayan Chanda in his book “Bound
Together” has used these references very aptly. Nebuchadnezzar dominated a large part of
Egypt, Asia Minor and Zudah. It is to be noted the Babylonian civilization grew out of
Sumerian culture and adopted Sumerian religion and fertility cult. This civilization reached
great height and was referred to in the Old Testament. Two other civilizations which can be
referred to are the Minian culture (3000 –1300 BC) which has a sea fairing culture based on
sea trade and warfare under Minos he great king. This civilization exercised great influence
over Greece, The other the Zionist civilization (2000 BC onwards) grew and formed the
Jewish movement recorded in the Old Testament and led by Abraham, Moses and later David
and King Solomon. They had a religion which believed in the God of righteousness. It was
from this clan emerged Jesus Christ who preached Christianity to the common people and
changed the world.
In the Nile Delta, Menes in 3200 BC brought the south and north divides together and
formed the Egyptian Empire. It reached the heights of culture and governance with
the Pharaohs (kings) and then Amon priests ruling, King representing God. Egyptian had a
very rich culture, great wealth, built pyramids and great statues and ruled for quite sometime
and continues even today in different forms of government. Egyptian Civilization has been
very well studied, has language of its own, own religion based partially on animal worship,
and a mixture of fertility cult and Indian pantheon and thoughts. Egypt has been famous for its
pyramids, its agricultural practices and its use of the astronomic knowledge to win over the
masses. It was conquered by Alexander of Greece and by Julius Caesar of Rome and by
Napoleon of France but continues even today as a state. It had a religion, a written script-
Hieroglyphic which was readable by the people because of Rosetta stone. Persia was yet
another civilization which grew up around 6000 BC from north Dravidian elamists who
vacated the area and shifted between Mesopotamia and India, The cultural contact between
India and Persia has been very ancient and strong and still so remains.

Indian Vedic Culture 6000 BC – 488 BC The group that reached India after crossing the
mighty Himalayas settled drown in the fertile Indus valley. The heavenly climate, the peaceful
atmosphere and plenty of time to contemplate allowed the Indian seers to seek answers to such

12
questions as “who am I”, “what is the purpose of life”, „who is god” and other philosophical
events besides building cities with all physical facilities like surface sewerage, baths, roads,
meeting places and using brick structure with plenty of shades and our play. The Mahenjodaro
and Harappa ruins exhibit excellence which surpassed all developments. Also in the realms of
philosophy, the lofty thoughts even today astonished the world. Like the Mitanis who had a
spoken language but could not write because a script had not been developed, the India seers
carried out alone contemplation only through meditation to seek answers to basic questions
and developed the most profound philosophies of the world which not only looked at spiritual
life but also practical living plans. Thus the compilation of Vedas emerged with Vedanta,
Upanisadas and finally Bhagavad Gita which is said to represent the some total of Vedic
philosophy. The role of Metanis in developing the philosophic idea is questionable but they
did contribute in development of a spoken language, the Indo Germanic approach which was
known as „sanskrit‟ the refined tongue. Indus valley civilization thus reaching the peaks of
glory from 5000 BC or ever earlier with the complete Vedas the highest form of philosophy,
the composition of Manu Sanhita, covering the societal values of living and life with the
Chatur Asrams – Brahamhacharrya, Garhatya, Banprastha and Sanyas Education and Student
life, family life, Retired life and enunciated life) Chartur Varna - Brahmhan, Kahtriya,
Vaishya and Sudra. Brahmana the philosopher /the teacher, the Solder/kingship, law maker
and administrators, the tradesmen , men of commerce and the societal workers respectively
the four stages of work. The brahmans developed a rigid caste system to strengthen their
control over the society and the lofty ideas of “vasudivan kutumbakam” “tamasema
joyotirgamaya‟ “asato ma sat gamaya”and “satyam shivam sundraram‟ „satyam gyanan
amritam”. English translation‟ The world is my neighbour‟ „Deliver me from darkness to
light from untruth to truth‟ „the soul is supreme‟ „ I am supreme‟, „ truth eternal beauty and
truth knowledge and immortality‟ respectively. The Indus Valley civilization, which gifted the
world its philosophy and scientific skills in engineering, mathematics, theory of numbers, the
concept of zero, and decimalizations was at the peak of its glory which it did not propagate.
The knowledge got through to the Mesopotamia region though the traders and the travellers.
The Indian kingship had prospered as depicted in Ramayana and Mahabharat though hard
evidence is scare in the former, depicts in detail the state of Governance in India. It was
peaceful land thought fights were there for the prevalence of the right and law and order. The
major tasks were all defined and each person was expected to carry out his job. This situation
was badly disrupted by the greed and power loving of the Brahmans leading to the oppression
of the masses and rise of Buddha who retained the principles of the Vedic teachings but
abandoned the corrupt caste system. Ashok, the great king of India converted to Buddhism as
to State religion and arranged its spread far and wide by sending preachers and „sravanas‟.

Greece While India was spreading Buddhism, Europe was waking up to the new
circumstances. Greece which was a collaborator of several islands converted itself into a
strong kingship and Socrates an architect by profession preached self analysis and free speech
to encourage self criticism by holding open debates. His disciple Plate supported him in
spearing his gospel and organised many academies which became a power in Greece and
questioned governance, education and free thinking. Socrates was sentenced to death and died
drinking Hemlock but Plato and his disciple a great scholar Aristotle assisted Plato who led
free speech and great analytical movement. Aristotle, a rich man‟s son, gave a final fill up
into the philosophical movement based on love of truth and fearlessness. His findings were

13
greatly dependent on Indian thoughts and achieved a new character. Mitanis could have been
the link in information transfer. Prince Philip who was the strongest military leader in Greece
decided to send Alexander his son to Aristotle for education and that primed the interest of
Alexander the great to mount a military expedition to India to personally learn about the
wisdom of the country, On the way, he conquered Persia, Egypt and the smaller kingdoms,
reached India fought and conquered Porus (Puru) and praised him for his bravery. Since his
troop had objected to further forward movement and as advised by his General he returned
partly by sea and died in Egypt because of blight. Thus a remarkable phase of Indo-Greek
collaboration was truncated. After Alexander‟s death Greek collapsed from the leadership and
was conquered by Persia.
Greece was a beacon light in the awakening of Europe. In philosophy, in literature, in
science, in governance its contribution is enormous and it passed as it were on to Rome.

Rome: Rome was founded around 750 BC to carry on its work. Rome was not interested in
science and philosophy but in law, urbanization aspiration of Europe, which became very
large and uncontrollable and leads to its fall. However its citizenship was treasured, it nurtured
the concept of selected democracy, no kingship but carefully selected Senate leaders who
ruled over the country. It became very rich and spent it in urbanization, city building but
remained an essentially slave operated state. It fought difficult wars with the Phoenicians and
with the slave who fought under Spartacus and lost.

China Ashoka‟s efforts in spreading the tenets of Lord Buddha were primarily directed
towards the neighbours of India in West and North to Tibet, China and the adjoining countries
in the East. His preachers and monks found great reception. China where the original Russian
travellers had settled down in a few villages at the River Bend Hwang Ho had prospered with
their agriculture and had grown and spread their sects. They had developed a script, a life style
and wanted to protect themselves from marauders hostile horsemen of the Gobi and decided to
elect a leader who would serve as a king. Confusion has appeared in the Scene around Buddha
and heavy born and bred in an administrative surroundings had propagate a society-center
religion comprising of Parent/elderly worship and strict following of behavior patterns to
maintain peace in Society. It was mostly moral rather than philosophical. Lao Tre spread a
mystic religion which had a low appeal and Buddhism was highly welcome and had wide
acceptance. The Saga Kings (2800-2205 BC) were associated with civil development,
agriculture, medicine and rare conservancy. The Hsia dynasty (2205-1557 BC) followed in
the same path. Shang dynasty achieved excellence in Bronze artifacts Shit Hwang Ti created
the feudal nobility, encouraged orderly governances and systems. He built the Great Wall of
China to protect against the invasion of the barbarous. This Buddhism provided a strong bond
between India and China and it may be noted that several instances of cross-cultural and
exchange of agricultural skills, economic and governance skills were exchanged as also
scientific skills to help both economics.
With Alexander‟s exit, Indian resurgences followed with the establishment of the
Mauyurja Dynasty under Chandra Gupta Maurya who was advised by Chanakya also known
as Kautilya. This was the recorded successful Hindu Kingdom and science, arts, governance
and economic improvement helped the masses. Kautilya‟s Arthashastra laid down the laws of
effective governance as also economic tenets. The fall of Maurya Government militated the

14
period of subdivision of rule known as Middle Kingdom (250 BC-1270 AD) where small
Kings ruled and several Greek controlled states were militated.
End of Phase I upto A.D. With the advent of Jesus Christ there was a sea-change in the
scenario. Hence it may be judicious at this junction to assess the state of development of man
and management. It has been narrated how the “Homo Sapiens” the thinking man had
transformed his nomadic root/fruit gathering and small hunt living style and had realized his
potential to a urban/village/city living style as was appropriate. From making stone tools, he
had graduated to making weapons of war. From walking he had developed wheels ands
chariots, from skin and bark as apparel; he had woven textiles out of cotton or wool and was
well clad against the vagaries of weather. He had learnt to build Cities, Temples, Coliseums,
Gardens and Water management for agriculture. Handicrafts which he could trade on
developed trade and commerce starting from Barter to Currency of noble metals, gems and
jewels. He had the means of education as decided by the Society, developed law or order and
sense of fair justice and peaceful living though wars were not uncommon. Sea Trade had
flourished as also exchange of ideas, logic philosophy and abstract checking facilities. He had
built Pyramids, Ocean going vessels, Cities with infrastructure and commutation devices,
communication skills, verbal language and writing scripts to convey and record ideas. He had
looked at the celestial world and found out the natures rules and how to take advantage of it.
He had learnt the basic principles of management, planning of activities and resources, job
distribution, allocation, monitoring, responsibility, accountability and law of command,
organization structure and execution. He had indeed come a long way from his neutral status.
The spread and settlement of the original Rhodesian man was also questioned. China raised
several criticisms to justify the Peiping man as the alternative. The genetic scientists however
proved beyond doubt that all the present men folk have evolved out of the Rhodesian parents
but marks of regional influences, inter marriages, change of climate, food habits etc. have
been identified. But the origin remains unchanged as “Vasudhairu Kudrumbakam” “all the
world is our neighbor”.
Jesus Christ Jesus Christ belonged to the wandering minstrel tribe the Jewish Community
who believed in the god of Righteousness. His message was based on “kingdom of God”
concept and was directed towards the masses. Through his studies and contemplation and
analysis of the religious practices including in India, he practiced the gospel of love and
presence of God as ultimate deliverer from all his sins. His approach was unique without high
philosophy and was easily accepted. His popularity sent him to be crucified and it is said that
He revived and spent his later life in Leh, Ladak and Kashmir in India were he is buried. What
ever may be true, his impact with the help of his disciple St. Peters, St. Mathew, St. John, St.
Xavier etc. preached and spread his views and it caught like wild fire in Europe.
Rome Europe was then in the process of recasting with the decline of Roman Empire
because of its very reason for failure. With two capitals one is Rome and other in
Constantinople, known as Byzantine Kingdom, Romans were not academically minded and
did not care for religion. They were interested in Expansion of the Empire and its
Urbanization as indicated. They fought the phenomenon forcibly but their other expansion, the
entire European land mass was thus subjected Urbanization was their biggest achievement and
they accepted Christianity as the State language. It was disintegrated by internal pressures but
as Byzantine Empire continued upto about 700 AD. It had a remarkable impact on Law and
Literature. Rome built up the legal mindset of Europe and England was the true successor.

15
Phase II 1st Millennium:
Europe
With the fall of Roman Empire specially that grown from Rome, Europe was broken up into
several states England, France, Germany, Belgium, Holland, Spain, Portugal and the
Scandinavian Countries. These countries claimed their own sovereignty and ruled. England
took over the law making role following the Roman, France- the fine arts and culture,
Germany the industry, Spain and Portugal their our s going so following role.
Western historians have been often termed this millennium is “the dark life” as nothing
spectacular happened in Europe. An analysis however this conclusion does not stand because
this millennium saw the rise of the Muslim power scarcely about a hundred years after the
advent of Christianity and the world since then has become a Bi Polar stage and the ensuing
battle between Christians and Muslims have been in various forms even today.
England In England, Romanized Britain survived till the 4th Century AD this was
influenced by the Anglo-Saxon Age (400-1060) Christianity was introduced in the 6th Century
by missionaries of Rome though Pagan culture continued. Alfred the great drove out the
Danes by 1016-1047, Danish kings returned and Norman influence spread with Edward the
conqueror led Norman Conquest.
France Julius Caesar (57-51 BC) conquered France defeating the Gauls, Five Centuries
of Roam Rule followed with the spread of Roman culture and Latin. With the disintegrations
of Roman culture Clovis (481-511AD) organized other tribes, accepted Christianity and set up
this empire which collapsed with the rise of Charlemagne (748-811AD) who unified Europe
and made France the culture focus. This monarchy continued with ups and down upto the
middle of the next millennium.
Germany Germanic tribes originating in Scandinavia overrun the areas between Rhine,
Elba and Danube but were controlled by Roman might between 4th-5th Century Charlemagne
of France occupied the area and founded greater Europe, was crowed in 800AD and accepted
Christianity. After his collapse, Germany separated and was ruled by successive Dukes till
culture power was enforced by Saxon dynasty (910-1002AD).
Spain, Netherland and Russia along with Belgium were in the formative stage being
romanized and then adopting Christianity to play their roles in the European scenario.
As will be seen the main thrust of this millennium was rearranged of power and the
unifying effect of Christianity which later rose in the revolt led by the reformist against the
Papal power structure. It should also be noted that while Europe was busy drawing up the
political boundaries of the state and the fight for power with the Christian Papal dominance, in
Middle East raised another prophet Mohammad who preached “Islam” conceived a universal
brotherhood. He organized the rowing tribes and set up a seat of Power, which challenged the
Christians and operated in Middle East with Jerusalem & Bethlehem the holy Christian cities.
This led several crusades to be mounted as an opportunity to Romanize the efforts and keep up
public spirit.
Asia
India While Muslim rulers where spreading out their control over middle east and
establishing their style of governance over the middle east Egypt and Africa with the
establishment of Khalifates and Muslim Kingdom, the scene in India and China requires
addressing. After the withdrawal of Alexander, the remnants of Greek influence perished for
some time. As indicated, the Muarya Dynasty ruled successfully but was followed by
invasions from the Saks, Huns and other tribals inhabiting the hilly areas, who mounted raids

16
on India and even established small principalities. The Gupta Period (280-530AD) was the
peak of Hindu Kingdoms in India. Rare heights were released excelling in Science,
Mathematics and culture but with its fall the period of invasions started again and India was
not governed. Kushana Dynasty which preceded the Gupta Period (160-240AD) had Harsha
Bardhana as the emperor ruled the modern plain. During his period Fa Hien, the Chinese
traveller visited India and reported on the glory of the Indian scene. Gupta‟s were followed by
Pallas in the north (750-1174AD) and Rashtrakutas (753-982AD) while in the south many
small kingdoms followed. In fact this millennium made the world aware of India‟s fame in
wealth and knowledge and Mauryan Kingdom and Gupta Kingdom added luster to this world
view.
China In China far away from the European continent progress went on with ups and
downs, famines and expansions. The Hun dynasty was (230BC-230AD) was engaged in
preserving the records, systems and library works. The fundamentals differences between
Indian and Chinese government was that the administration framework was not disturbed with
the change of Governance. It continued with the same administrative culture thus preserving
the records and the experiences. During the rule of Tangs (618-900AD) the most brilliant
period of Chinese History occurred. The Sing rule followed (900-1279AD) which ushered in
an age of culture and refinement. It may be noted that China achieve position continue to
growth during this period as against India where the growth was sporadic and spiked with
little continuity Japan, Korea were just emerging out of tribal form.

Phase II 1st Millennium

Status During this millennium, the growth of Christianity, the redrawing of the state
boundaries the emergence of government kept the mankind busy in Europe excepting that the
holy was named Crusade for the recovery of the holy land from the hands of the infidles, the
Muslims were launched several times without any recovery. Production wise and trade were
however there was a noted increase especially in Sea/Ocean trade as also piracy and
accumulation of wealth. However the voice of the man was raised in spite of Spertancer‟s
failure and the governance took note of this in the 2nd millennium. Trade prospered and India
and China occupied the top spots and were the wealthiest. India was ravaged by Muslim
barbarous as also China but China was better prepared which India was not as the cultural
authority was missing. The management skills developed in navigation assisted by the
Muslims sea men who developed the new configuration of sail to ease sailing. China
improved its handcrafts skills as also India and these products fetched great price and added
wealth to the country of origin. With the fall of Greece research in Europe had ceased because
of lack of Roman interest and in India there was resurgence in the Gupta period which also
died with the fall. Muslim governance however sponsored Research. Muslim chemistry
encouraged by the search of the Philosopher‟s stone flourished under Hebber navigational
tools, maps and charts were improved and the finest touch was the setting up of a translation
service and library in Alexandria which gathered knowledge from all over the World where
the visiting scholars or tradesman or captured soldiers during war and this source was tapped
for knowledge addition and accumulation.

Phase II 2nd Millennium Growth

Europe At the start of the 2ns Millennium, the activities blossomed out as it were as if
breaking out of a dull period and specialized in Wool Weaving, Wool Textile, metal working

17
and navigation followed by Sea Trade. Having peeked up the principles of law and
governance of the Roman period, it became the home torch bearer and become of the law
maker of the then Europe. In fact England‟s King John in (1215AD) signed the Magna Carta
to appease the opposition who objected to increase of power to the Church barons and the rich
city leaders. In fact the opposition till Henry III introduced the House of Commons and the
House of Lords. Edward I installed the model Parliament in 1295 with Power sharing. Trade
growth had renamed very dynamic but 100 year war with France started with France objecting
to England when on over Europe 1338-1453. England went through great turbulence with tax
laws, Black Death (1348-49) and Beasen Revolt in 1381. War of Roses (1455-85) was fought.
Edward restored order and Henry VII broke up the political power of the feudal aristocracy.
Henry VII dispenses with the Control of Church and papal power and confiscated wealth.
Edward I adopted Protestantism and Church of England was born. Elizabeth brought about a
comprise and ruled over the golden age of British monarchy. Serfdom was abolished. Trade
boomed war with Spain over the Control of Asia. This peak was however marred by the
English Revolution which affected the economy especially with the inflow of American silver
from the newly discovered continent in 1792 and colonized in 1607. In spite of economic
difficulty foundation of empire in North America and Indian was laid by 1700AD and
Industrial revolution was heralded. In 18th century with Walpole as the Prime Minister (1721-
42AD) the superiority of Parliament was reestablished. The ingress of American independence
and France revolution (1775-83) and (1789-90) respectively sustained the growth of
democratic forces in Britain. Further naval victories over Spain and Portugal and the defeat of
Napoleon were critical phases in this period. Changes in the form of agriculture to mechanized
large firms from small holdings and expansion of the processes of industrialization under Pet
the prime minister were notable issued by the end of 18th Century. 19th Century heralded the
induction of a Liberal Party which introduced a reform Bill in 1832 to transfer the power from
Aristocracy to middle class. For the next 40 fears, liberalism with laissez-faire inducted
Victorian prosperity with India and Americas identified as input sources. England liberally
ruled the world rivaling Germany and expanded operations in Egypt and Africa and
development of Common Wealth in Canada, New Zealand, Australia and South Africa. It was
a golden period. Britain was not only the workshop of the World but the trading center, the
financial capital of the world with banking and allied services in position. The 20th Century of
the 2nd Millennium was a devastating period in the World scenario. War clouds gathered in
Europe and England with USA and Indies as allied were attacked by Germany and the 1st
World War started in 1914, went on through 1918 with devastating results. Though Great
Britain won the war the economy it had built up was totally destroyed and it lost its economic
standing. In 1942, the 2nd World War started with Germany and Italy as the as in power with
Japan joining them later and England and its allies, supported and later joined by USA fought
the world wide battle covering both East and West , North and South and devastated the
economic structure. Again the allied won because no longer the acknowledge world leaders so
devastated was its economy.
The second most important was the abolishment of the Colonial systems which started
with independence of India in 1947 followed by the decolonization of the French, Portugal,
Belgium and the colonies of Africa and Asia which changed the historical balance forever.
France with its Euro-centric politics after Charlemagne‟s European Empire Collapsed (748-
811) continued with monarchy and building up its prestigious position of being the arbitrator
of style, elegancy and culture. Its wealth under the various monarchs increased though the

18
state of masses who were excellent craftsman and good farmers did not improve. Even with
efficient administrator like Richelieu and Maseru, and a war with Italy it retained its growth,
though the expansionist policies of house XIV to extend influence over Canada and India
failed much attempts to colonize was stopped and Britain won his government continued and
led to the French Revolution with the attack on Bashelle and beheading of the Monarch under
Robespies leadership. It was Russia‟s philosophic policy that mass rising took place and
monarchy was abolished. Napoleon of Croatia won over the French Governance with his
spectacular battle gains in Europe and over Egypt and reinstated the glory of France,
reinstated monarchy but failed with his war against Russia and then again at Europe Waterloo
and France list its monarch and become a Republic. As indicated England won the naval battle
in Trafalgar over Spain to settle for once its naval supremacy. German with its military stance
reorganized itself after the collapse of Charlemagne‟s Europe, Tussle for Power ensured with
Papal authorities till the culture power was reinstated by the Saxon leaders in the turn of the
1st Millennium. Maximillian I become emperor in (1493-1519) followed by Charles V who led
the country into another fight with France. The reform movement led by Martin Luther against
Disunity and led to a 30year war and the Empire prevailing suffered. The rise of Brandenburg
Prussian power as a military unit was established in the 17th Century and under Fredrick II
(1740-84) led German regeneration with the assistance of Napoleon. In spite of prevention,
the concepts of unity and democracy spread and under Bismarck, leadership and the growth of
industry which was Germany‟s strong point and its successful waging of wars in Australia and
neighborhood, its ascent led to the act of World War in 1914. Following Germany‟s defeat, it
once again rose under Hitler who once again fought the 2nd World War and Germany a proud
nation, lay devastated. It was the policy of the allies to re-conduct Governance which was
parceled out the UK, US and Russia and it fought a great depression and economic crisis to
regroup and become a heavy industrial power after the resurgence of German nationalism and
the breaking of the Berlin Wall. Germany has once again regained its splendor and eminence
as a World leader in Industry and equality Denmark, Holland, Netherlands and the
Scandinavian Countries have all proposed during this millennium because of their trade
efficiency and colonization policy. The devastating war not withstanding they are retained
their space in the World community though Spain and Portugal the eminent Naval powers
have lost their splendor during this millennium, In Europe, the spread of education from Italy
in the early years of the millennium opening upon Universities all over Europe standing from
Italy, the atmosphere of the funding in China of paper making and printing which was refined
by Gutenberg in Germany helped in the spread of education of the masses with the wide
destruction of the Bible which was printed in thousands for distribution. Italy and Florence
become the printing capital of the Western World as England became the machine maker and
prime maker of trade and commerce as also Science and Technology which renamed stunted
for the lack of external energy source though Hero of Greece had developed steam engine at
the end of phase I. the discovery changed the scenario and Industrial development increase
experientially from around the early era of this millennium more of this later.
Russia Russia which emerged as a world Power during Napoleon‟s March against it
entered the scene toward the middle of this millennium when Ivan II the prince of Moscow
(1462-1505) drove out the Mongols known as Barbarous and united the North West while
Ivan IV (1547-84) assumed the title of Tsar ex-tended the empire, started Colonization of
Siberia and expanded the Russian occupation upto the Pacific after his death misrule followed
till the Romanism took over. Peter I (1682-1725) took control, modernization the

19
administration and the army, introduced western education, wrested the Baltic Sea Board from
Sweden and earned the accolade of Peter the Greek. He had a great court and lived in style
Catherine II who followed further extended the Empire, intervened in the French evolutionary
and the Napoleonic wars and drove back Napoleon‟s forces from Russia in 1812-1814, During
the 19th century while revolutionary ideas spread in spite of recessions rapid development of
Industry followed the extinction of seldom in 1861, working class movement developed and
social democratic party was formed. After a period of wars with neighboring countries like
Turkey and other Tsar had to give up some of his powers and the world was plunged into First
World War in 1914. A revolution in 1917, established a Republic by its failure led Lenin to
capture power. After the Treaty of Brestand-Hetrosuk in 1918 the allies Britain, France and
Germany attacked Russia in Europe and japan in the East and the “white army” in a curl war
Russia had to give up Poland, Finland and some Scandinavian countries and Lenin on behalf
of the Bolsheviks seized power. Though some treaties were drafted, a federal constitution was
drafted in 1923 and “New Economic Policy” was put in place. After Lenin died, Stalin
captured power after some interparty strife, installed his brand of Socialism total Central
Planning with the 1st Cos Plan (5 years Plan for nation building) for 1928-39, Heavy and light
Engineering industry was developed with total collectivization of agriculture, Stalin‟s was
total dictatorship led to recovery of some lost territory and a Treaty of Germany with Hitler in
power. This led to further acquiring of territory respite Germany‟s control over Poland. With
start of the 2nd World War, Russia in spite of its pact with Germany was attacked by Nazi
troops. It brilliantly fought against the Nazi power divisions at St. Petersburg Leningrad.
Japan opened up war in people by attacking Pearl Harbor but America fought back and
Germany and Japan were defeated. Russia suffered greatly but with Roosevelt‟s help and
Churchill‟s acceptance of the situation peace was restored. Net result was that U K and japan
along with Germany were totally devastated. Rebuilding process was started by the Americans
and it took more than decade to restore order. Americans might have played a major role.
After Stalin‟s death whole oppression had reached back, Kruse law, Kosygin and Breslau took
over control and started demilitarization. It showed a great deal of interest in the new
decolonized countries which had won independence like India, Pakistan, Lanka, Burma and
Malaysia and offered economic assistance as also military assistance, But communism
disappeared over tune and market forces were allowed to play. Putin took charges and Russia
became a Federation and mixed economy. It must be stated however Russia good gigantic
leaps in Space Research exceeded even America and Europe and also developed nuclear
capability and Science & Technology bread through.
Asia
India In this millennium vast changes occurred in the Asian region with the mitigation
of colonization and decolonization. Vasco-de-Gama the Portuguese Sailor and adventures
found the sea way to the shores of India, a much desired development whereas Christopher
Columbus under the sponsorship of Spain found a new continent America in his quest for
India in 1492 while Vasco da Gama visited the Indian Coast around 1500AD, India after
withdrawal of Alexander and the fall of Mauryan and the Gupta Dynasty in 500AD never had
a central authority except Harshabardhana and Yosobardhana in 600AD and 700 AD
respectively. The wall of India had been legendary and various visits were made by pilgrims
as also invades who came to loot, small kingdoms, engaged some order was retained but trade
went on flourishing and India and China continued to be the first or 2nd in wealth and trade.
This happened both in the northern plane and Deccan peninsula. A major change of scenario

20
took place where the Muslim conquest started in 1175 with Khiljis and Turkish dynasties and
the Mughal Empire from 1526 to 1707 AD which was also turning point because by then
Europeans (English, French, Portuguese and Dutch) had also started setting up their trading
points and areas of influence. Trade and Commerce continued in full swing through the
invader/occupies extracted their share of business. It has to be agreed however that tax
collection was smothered and administration, aw and order were in place. After the fight was
reached during Aurangzeb‟s regime and full the mounded Empire collapsed with British
slowly but steadily taking over the administration, trade, tax collection and law and order.
This has been well recorded. East India Company defeated the French, Dutch and Portugal
and spread its sovereignty over the whole India and become its ruler, Decline started within
traders, capturing the local trade and ports and successful trade and commerce that existed but
was reduced to supplier of raw material at ridiculous price and a market of the growing
production at UK though the Industrial revolution that followed in the mid-millennium. India
was being looked its stock in the economic world fell sharply with the Sipahi Uprising also
known as Mutiny 1857, British Government took over the reigns of Governance from the
trading Company which headed only being granted the trade license with no sanction for the
conquest and Governance but by the India‟s stock for the dipped and continued to fall with
British rule as the booting pattern set continued in a refunded manner with parliaments formal
continued in a refunded manner with parliaments formal census. India had no power to protest
no authority to fight against and a remarkable conquest was enacted with the citizens of the
same country serving its British Europeans. Indian Independence struggle started around the
start 19th Century with the establishment of Indian national Congress under Mr. Hume and
demanded for Home Rule. It is to be noted that British rulers of India had agreed to brain the
natives in English language to provide them with clerks. The knowledge of English however
opened up the knowledge of the happenings in the world out that changed the scenario
completely. Gandhiji brought in the concept of non-violence, whereas the freedom fights
continued with the revolutionary ideas. The struggle went on through various phases,
diplomatic, political, economic, silent non-violent protest, armed opposition in a limited phase
and finally Gandhi Nehru leadership with Ballabhai Patel as the leading group of legislature
approved and Netaji Subhas Chandra Bose curved approach who dared to raise on Indian
national army aboard with captured Indian soldiers and civilians who donated their all and
marched towards India from Singapore. Though the mission failed it shook the very
foundation of trust of Indians army raised by the British to govern India and decided to grant
India its Independence at a terrible price. India had be previously truncated by separating
Burma in the East, now further truncating Bengal to East Pakistan and West Punjab to West
Pakistan on a religious divide India is still paying price for that blunder.
Independent India stated with practically no credit balance. Its share of World Trade
which used to be around 30% to 40% sharing (60%-70%) with China in the golden years upto
the Mughal Empire had dropped to 2% to 3% and falling. Patriotic Indians had built some
Industrial base in specially in West, the Tatas, the Wadias, the Godrej, the Chellrians, the
Sellings in Madras and some Marwari group in Calcutta had started Industries with Tatas
leading group by installing an Iron & Steel Plant, Wardha Chemical and Textile, Godrej‟s
general Engineering, the Chellans and Sally‟s textile and condiments, consumer goods,
Marwari‟s Birla & Goenka in Bengal Jute, Coal, Transport etc. The fifty years that have
passed since, even with three wars with Pakistan, India and Pakistan have progressed. India is
now considered to be a powerful growing economy with all round development though with

21
pockets of poverty and a low level of Human Development Index and high corruption records.
There are political grudges remaining with commercial overtones which bother the country
but democracy has taken full roots as shown in the recent elections.
Pakistan Pakistan remains a problem laden nation which has tired with Democracy but
has a sad period of army take over. It lost its war with East Pakistan freedom movement which
gave rise to a new nation “Bangladesh” with support for India. It has forced problems with its
Zahedi parties and communal forces which have kept its relations stranded with India on
commercial grounds mostly politically motivated and now identified as the safe haven of the
dreaded terrorists which have badly distributed of the world. IT has not made its mark as a
economic power but is supported by the USA in geo-political and anti-terrorist aches. It has a
record of army takeover and military dictatorship but tries to be democratic in this world.
Others Several other new countries emerged during the decolonization period Burma,
Cambodia, Thailand, Vietnam, Malaysia, Singapore, Indonesia etc. and these arte playing
their role in the Politics-Economic scenario of the World. Australia which had been a member
of the Common Wealth has now increased its interest in the Asian affairs retaining its
Common Wealth ties.
China The other major country in Asia was China whose role has been commented
upon. It was a competitor of India in seeking rank as the 1st or 2nd country in the Trade and
Commerce and wealth accumulation. The fundamental difference between the Chinese and
Indian Govt. was that governance systems and the administrative iron framework in China
was not disturbed who ever may be the Government as indicated the rule of the bangs (618-
906) was the most brilliant period of Chinese period. This was followed by the Sing Dynasty
(900-1279) wherever and age of culture and refinement. The only disturbance in the China‟s
government was the Mongol‟s rule under Chenghish Khan during (1279-1368) but that was
not permanent and concerned only limited area. The kings above their of and ruled from
(1360-1644) when the European invasion started. The European, the British, the Dutch,
French and Portuguese along with Americans all had their spheres of excellence in marks of
trade and commerce. China was in the state of being broken up and gobbled up as was evident
during the Boxer rebellion. This was however crushed in 1900. The machines were the last
dynasty ruler (1644-1912). Revolution broke out under Sin Yan-Sue who became the
President of the Chinese Republic. He died in 1925 and China fell into disrepute till Chiang
Kai Shek took over as the leader of Kuoninpton. The Communist Party organizes under Mao
Zedong won the long drawn battle and returned to Taiwan. During this period japan attacked
Manchuria and in 1937 the so called “China” incident near Beijing took place followed by
open war. China became stronger followed by the Japanese defeat after World War II in 1944.
Mao Zedong after the long march scored a total victory over the Naburus party and become a
Communist state. After Mao‟s death under Deng Xio-Ping and his technocrat followers have
changed the face of China and they have succeed to merge the market mechanism with
communist disciple and party rule and emerged as an economic power. In fact it is competing
with the USA to be 1st power and it has already out powered Japan.
From the middle of the 2nd millennium, the trade of India collapsed after Mughal
Empire fell but China continued with its trade level and its wealth till the end of the
millennium and is now once again as a very powerful economic unit with huge manufacturing
capacity, market economy and aggressive exports. The four items which China contributed to
the world economy besides its culture, art and religion were 1. The discovery of the paper 2.

22
Punching technology 3. Miners‟ Compass for navigation and 4. The discovery of gunpowder
which changed the warfare and tactics.
Japan [Pl copy page 31 to 32 of the original copy]
Korea followed China and japan and became an economic power with its aggressive
push in the export font.
The new kid in the Block was America page 38-39 and continues page 41.

Status
Phase III 2nd Millennium This millennium is very important for the complete change in the
development profile of mankind. Following the resurgence in the education field in Italy in the
start of the millennium, the spread of Education over Europe with the setting up of various
universities all over Europe and UK the start of research work in fundamental sciences like
Physics, Chemistry, mankind us and life sciences, the sponsoring of new ideas both in the
Muslim and world and the Christian World and the improvement of trade and market potential
with the growth of naval activities sponsored by both Muslim and the Christian world, a wide
vista of opportunities arose all over the world. In UK in Europe Research led to the revival of
inherent in steam leadership to the fabrication of Watsons Steam engine driven pump and
Stevenson‟s Locomotive. Textiles machines were no longer hand driven but were machine
operated and manual weaving was gradually replaced. This was the start of Industrial
Revolution. Adam Smith became the guide to follow and concepts of productivity and
competition ruled the day. The textile industries of India, the dying industry, the manual
looms were all replaced by mechanically divine tools of huge productivity. This phase was
followed by the generations and use of Electrical power which the „new kid‟ America made a
huge contribution. While the theoretical work was done in Europe mostly UK, practical
application was USA‟s forte was also innovation in mature building where it competed with
UK and Germany. The production and marketing technology completely changed the
management principles that had evolved so far and the start of the 20 th century, the last
Century of the 2nd Millennium, management principles were well defined and ready for
adopting new approaches. Assisted by Chinese movement of paper making and printing,
education was spread to cover all most the entire Europe and Americas and prospered in its
application. In China it went along with the change along with japan and Korea but India
under the British first the company and then the Govt. lost out. The Textile and metal industry
as also Trade & Commerce collapsed with the cheap material coming from UK and famines
and misgovernment by the locals rose to a high degree, India become one of the most poor
country from on of the richest in the course of 1857 to 1947 when it earned its independence,
China continued with its growth in a tour sated manner till it slugged gear in 1970 onwards
and Japan and Korea in 1975 onwards to become economic giants and power of the economic
world. India is trying to catch up from 1990 and is progressing but has a lot to catch up the
leading countries like USA, Japan, China and UK. Hope it will do so in the future.

23
 Chapter III

From Dawn to Maturity

Phase I up to A.D.; Phase II the first millennium and Phase III the second millennium

Human beings progressed from the hunter-root gatherer nomadic existence to the pastoral
stages when it mastered crude and basic stone tool making, making clothing‟s of skins and
bark and most importantly raising captive animals and birds. Further it gained control over fire
and could manage crude sailing. It progressed to agricultural settlement after mastering
agriculture. In the latter stage, it went in for settling down at zones of fertile soil and search for
source of water and water management by draining swamps and re-watering, by constructing
canals and dams or channels as the case may be. Civilization bloomed with industrialisation
and war.
Various methodologies adopted in analysing this phenomenon are illustrated.

I. METHODOLOGIES:
1. DESCRIPTIVE APPROACH – Synopsis.
Human Development in the Ancient Ages

Evolution of Man Homo erectus, Homo habitat, Homo sapiens

2 million years + BC- Neanderthal man, Israel man, Piltdown man (false), Heidelberg man
(Europe), Rhodesian man (African), Australian man (Australia)

Earlier Palaeolithic age - Peking man, Java man, aboriginals and other species, which have
40,000 – 1,00,000. Disappeared. Rhodesian man (True man), Spread all over the Earth
after the withdrawal of the Ice Age around 1 million BC.
Basic change in physical characteristics, position of thumb, feet,
erects body etc. Coordination between limbs, eyes, ears, spine;
Brain; larger cavity in brain and capacity, memory and analysis
(child like), inquisitiveness, curiosity, observation.

True Man (Rhodesian) – branched out to Negroid, Mongolian etc.

Refer (Man Tree – H.G.Wells)

Lower Palaeolithic age - Appearance of origin of modern man in many areas and divisions
80,000 – 50,000 BC - Brunet People, Iberian, Mediterranean, Dravidian, Egyptian, Dark
Brown (Brunet), Dravidian, Sumerian, and Indonesian, With
Heliothic culture: Teutonic, Nordic, Chinese, Mongolian, etc.
Commencement of trade.

24
50,000 – 15,000 BC: Early man was nomadic hunters and fruit and root gatherers. They
searched for food off nature and shifted from place to place. .

STONE AGE Developed stone implements for use also as hammer without
handle and for cutting/slicing; The tools were but extension of
limbs, they ate raw meat, fish and fauna, developed spears,
harpoons, sling shots, drills (Bow type), Bow and arrows. Bone
needle. Keen observers, Control over fire, various myths, started
building shelters, using caves, hole in the ground, Reed
covering, nature worship, fertility cult, concept of Super Power
(God), group/cluster for big game hunting, short life span, hence
fertility was important, shamans, medicine man, Too busy with
providing “Roti-Kapra-Makan”, to contemplate, observe and
think. Men hunted while women reared children and observed
nature. Growth of wild millet, barley from airborne seed spread
by broadcast and started using cereals as food; effort to grow
more, search for fertile land and this lead to wars. Use of skins
as cover, guts for making thongs, basket making, and concept of
boats made of skin, fundamental knowledge of sewing with
bone needle with an eye. Fording of river and seashore,
sailing/drifting.

20,000 – 10,000 B. C. Start of agriculture search for fertile soils, pastoral and agrarian
life style development as distinct from nomadic, Rhodesian man
on merely branched down the delta – development of special
implements for making furrows, tilling soil and covering seeds,
scythes for cutting, grain collection, processing and storage.
Radical change in life style. Agrarian and with implements.
Domestication of certain animals for draft and tilling, beast of
burden.

Human migration Pastoral and agrarian life style led to regional growth. Small
80,000 to 20,000 BC settlement appeared in Nile Delta and at Sahara then covered
with forest and then turning left to Mesopotamia, (fertile land
between rivers, Euphrates and Tigris) modern Iraq; to European land
mass by the way of Turkey; to China following newly discovered
routes and to Siberia and USA (New world) through Alaska; to India
and to Far east and Australia.
Drift of Culture: Dravidian to Mesopotamian region. This was
the reverse stream, which followed. Development of trade and
cultural exchange

25
Though the earliest specimen of true man was found in rift valley of Central Africa, the first
semblance of human civilization took root in the Indian plane and in Mesopotamian region and
in China. Evolution of civilization.
The concept of settlement brought about a major change in the style of living. Some
groups formed creating a collection of huts, the cultivated land had to be protected, the
hamlets grew to small townships with their facilities and codes for living had to be introduced
to maintain law and order. Leadership had to be identified based on experience, strength
and/or intelligence and discipline had to be enforced, along with concept of fear of the
unknown which led to the formulation of rudiments of religion and practice of rituals thus
recognising the need of priesthood, defence personnel and ultimately divisions of jobs. All
these were gradual developments but were the basic seeds of civilisation, culture and may be
arts and sciences.
Though the development was first and faster on Indian plane, the other fertile area was the
Mesopotamia region which was watered by the two great rivers, the Euphrates and Tigris and
hence the name Mesopotamia, the land between two rivers and later in China in the Yellow
River bend.
Whereas in India, the oldest archaeological digs have established that Mehrgarh near
Bolan Pass was as old as 8,000 BC, it also indicated that this settlement was a continuing one
starting from the nomadic, to pastoral, to settlement life with ordered city building indicating
advance in civil life or civilization as is understood today. Chronologically this was followed
by the development in the Mesopotamian region at Catal Huyuk (7400-6000 BC) indicating a
sea based trading community and then development followed in Middle East of the Sumerian
kingdom and in India the Vedic civilization with increasing trade and gene drift between the
two adjacent areas of landmass through the trade routes. In fact, Mehrgarh‟s importance as a
trade had increased with the passage of time till it was destroyed around 3000 BC by a natural
calamity. Soon the Indus Valley civilization also vanished due to supposedly natural calamity
thus closing the first developmental chapter of the history of civilization. These and other
civilizations and their respective contribution to the growth of human development is
concisely covered in the notes given below along with the chronological chart related to the
period up to the rising of Christianity and then covering the AD period. The chronology of
India has been accepted as the reference base because of its continuity.

2. HISTORICAL APPROACH: DEVELOPMENT OF CIVILIZATION

The Nomadic man hunters and root gatherers developed tools and learned to act in concert
to kill large animals for food and safety. They travelled in groups, raised wild animals in
captivity and adopted a pastoral life style and graduated as it were to a life of permanent
settlement when they left the nomadic life and settled in fertile lands having learnt the art and
science of agriculture by observing the broadcast of seeds and their subsequent growth and
harvesting. These transformations must have been spread over thousands of years of strife and
travel. The long march as described chose four fertile pieces of land, one in Mesopotamia, the
land between Tigris and Euphrates rivers and the other in Mehrgarh in the Himalayan foothills
and in the Indus Valley in India, the third in the Nile delta and the fourth in the bend of the
Yellow river in China. The permanent settlement in Mesopotamia in Middle East led to the
development of various collections of villages which grew to hamlet to mini-cities to major

26
cities changing the very life style of the inhabitants from nomadic to orderly living in concert
with other inhabitants and protecting the property and holdings that they had developed.
The living in cities also introduced and established the need for support service like
conservancy, law and order, justice, health, education and the like which existed in the
hamlets but in a much bigger form in the cities and that led to the development of major work
skills. This itself was the reason for the development of caste system which developed in
Indian civilization like the trading community, the Vaishyas; the warrior cum ruler community
the Kshatriyas; the educator, philosopher, the priest community, the Brahmins; and the
service staff, the Sudras. This was known as the Chatur Varna system of caste division. It was
the trading community and the warrior community that established bonds between different
geographical areas and the oldest were to be found in these areas. The oldest evidence around
8,000 to 3000 BC has been located in Mehrgarh near Bolan Pass at the foot hill of the
Himalayas and on trade route linking India with Mesopotamia. In this site, lay in different
layers evidence of nomadic existence; flint tools making, the evidence of fire followed by
agricultural community and then houses well built and well planned as found in the Indus
Valley in Mahenjodaro and Harappa. This important dig as Mehrgarh truly changed the
picture of development in Ancient India. It is presumed that this establishment was completely
devastated by a cataclysmic earthquake around 3000 BC and abandoned. In Mesopotamia, the
oldest dig exposed the Catal Huyuck sea trade based establishment about 7000-6000 BC
which was overrun by the tribes who established the Sumerian kingdom which had a great
leader in Sargon who established the first empire by conquering the entire Mesopotamia,
established military control, various cities, ports sponsoring sea trade and was the first to
develop cuneiform writing may be earlier than the Mahenjodaro script which still remains un-
deciphered. The Sumerian cities were well planned, well protected and had their own religion
which was greatly influenced by Dravidian civilization which had developed in India. The
Dravidian religion based on Trimurti concept, Indra, Baruna and the female diety was further
improved by the incursion of the Aryans who were but a branch of the original marchers from
Africa which on reaching India assisted in the development of an advanced ancient
civilization, based on pristine philosophical thoughts leading to the formulation of Vedas and
later Upanishads and the Brahmanas culminating in the formulation of Bhagabat Gita in the
last millennium or earlier as dated by modern scholars. (Ref. Dr. Upinder Singh‟s latest book).
Strangely enough, India did not have a written script though it had specialised in refinement of
the vocal sounds and had contributed to the development of the verbal, hearing, memorising
and the art of argument “Sravan, Manan, Chintan, Tarka” approach. The age of Ramayana
and Mahabharata followed and India had by then a very enlightened civilization with active
correspondence with the Middle East culture. Though initiated by the Sumerians, this process
was continued by the Babylonians, the Egyptians in the Nile valley, Persians and Jews in the
Mediterranean coast where the Minoan culture, yet another seafaring nation prospered. The
Babylonian civilizations reached great heights before the Egyptians and built large structures,
temples, Libraries, Lighthouses, ports, etc., and were interested in education and diverse
religion influenced by Indian thinking. Hammurabi, their king, was the first to develop a code
of behaviour may be about the same time that Manu established his Manu Samhita. The
Egyptian civilization was a long standing one and contributed positively in the processes of
human development and forms of civilization with the ascendancy of Kings (Pharaohs) and
Amon Priests who ruled the kingdom. They also developed a writing style Hieroglyphics,

27
which has been deciphered (Rosetta stone) leading to many discoveries and positively
impacting the process of development.
In the European landmass, the initial development took place in Greece, which was a
collection of many small island kingdoms and a seafaring nation. As indicated above, trade
between India and Middle East was very active and Indian thought had percolated via Middle
East to parts of Europe and influenced the growth of Socrates, Plato, Aristotle school with
special reference to arguments (tarka); rational thinking (chintan) and in drawing inferences to
establish logical laws. Under Alexander the Great, the soldier per excellence, and Aristotle‟s
disciple, the Greek army conquered countries right up to India marching through both land
and sea routes, which were familiar to traders. The spread of civilization and contact thus
expanded. His early demise was followed by the establishment of Greek rule in the region and
the influence of intellectual levels in philosophy, arts, and sciences may be by drawing
inspiration from Indian thoughts from the Middle East intermediates, traders and some
warriors, Greece was in constant battle amongst themselves and with Persia because it was
geographically situated at the gateway of Europe and opposed Persian expansion plans.
Meanwhile in India and China, yet another major change was being enacted. After exposure to
the Alexander‟s invasion, which stopped after the battle with Puru (Porous), the Maurya
Empire was established with a Hindu kingship. Prior to that around 600 BC, Buddha had
raised a protest against the ills of Brahmanism, caste system, and oppression of the lower
castes and to rituals, forgetting the philosophical thinking. He protested against the importance
given. This led to a social revolution. Ashoka, the King of Kings, around the 3rd century BC,
who conquered Kalinga in a bloody battle and founded the first empire in India, accepted
Buddhism as a state religion and enacted several unique legislations and institutions in state
management like helping minorities, spreading religious tenets of Buddhism in India and
abroad and for the first time giving India a unique identity. It was a glorious period for India
but the glory dissipated with Ashoka‟s death. Once again small kingdoms arose to rule over
broken up India Ashoka‟s empire followed Sargon‟s but was much larger and better organized
and managed.
. The other civilization of merit of the time was being enacted in China, where arose a
philosopher with his feet firmly planted on ground. Confucius, who grew up in a bureaucratic
community of civil servants, preached his philosophy on common good, ancestor worship and
rules for the society, which was accepted by the Chinese kings and people alike. Lao Tse, an
abstract philosopher also spread his tenets, but the response was not widespread. It was too
esoteric. Buddhism and its central concept of middle path, rejecting extreme and belief in
Supreme God, in reincarnation, immortality of soul as in Hinduism but rejecting caste system
and oppressive Brahmanism was preached in China by Buddhist monks from India and this
acquired wide acceptance. In fact, it has been stated that Chinese civilisation stands on three
pillars: Confucianism, Lao Tseism and Buddhism.
Civilization is indeed indebted to India and China for sustained growth while Egypt and
Persia provided the refinements. Unfortunately, Indian contribution in philosoiphy, arts and
sciences, which has been documented very ably by Prof. A. L. Basham in his The Wonder that
was India faded out after the Gupta period because of Indian politics, internal wars, ingress of
invaders, Satraps and repeated disturbances. Though India retained its leadership in trade and
commerce, it lost its leading role. China continued to grow steadily though it had a momentary
set back when the Mongols conquered it partially. The reason for this continuity can be traced
to the Confucian code and the strong steel frame of administration. China was also not

28
exposed to constant raids and looting that India was subjected to. China had built the Great
Wall. In fact, China had developed and cherished a Chinese entity, which was sadly lacking in
India where Indianness (Bharatiyata) developed much later and is still not fully accepted.
In Europe after the rise of Greece and its gradual decline with the tussle with Persia, the
Romans in Italy picked up the batton. The Romans established a very large empire spreading
over most of Europe, extended to Spain, Mediterranean coast, and conquered Egypt and the
Middle East except Persia, which had been defeated by Alexander. The war of attrition
between Rome and the Phoenicians, known as Punic war vanquished Carthage but also
devastated Rome. It may be noted that Roman Empire is credited with a number of measures,
which contributed to the development of civilization. The important area was the formulation
of laws in diverse fields and its enforcement. The other area was the concept of selected
democracy in governance with the concept of elected magistrates running the administration
for a fixed period, the concept of Senate and its membership to be engaged in governance. The
third concept was the concept of Roman culture and citizenship, which was accepted as a
coveted honour. The concept of law, Roman citizenship, Roman rights and Roman civilization
was cherished. This was greatly achieved by the process of urbanisation, which Roman rulers
followed diligently. They also managed to absorb the defeated in their scheme of things rather
than put them to sword and oppression. Besides, the drive of urbanisation launched led to
improvement of the quality of life of the citizens and this was a great attraction. Roman
Empire was far flung. It occupied most of Europe, and Africa near Mediterranean and
extended eastwards to rule Greece, Turkey and even some part of Persia. As with Greece it
contributed to the advancement of architecture, art, science, and navigation and in areas of
health and in trade and commerce. But it was too far flung to be properly controlled and
administered and collapsed because of its own shortcomings. The religion in both the
civilizations Greek and Roman was mythology based as in Egypt without philosophical
foundation as in the case of India and China though Greece had accepted the importance of
education and character building though not as vigorously as in India. This issue had even
lesser importance in Roman society.
Amidst this scenario arose the figure of Jesus of Nazareth who developed and initiated
the concept of Kingdom of Heaven. He was of Jewish origin, which had a long history and
practised the religion based on the God of righteousness. He belonged to a group of preachers
and was crucified by the Roman administration as a heretic. His disciples specially St Paul
propagated him as the “Son of God” and spread out concepts as Christianity amongst the
followers. The Gospel was an extension of the Jewish “Old Testament” to which was added
the “New Testament” spreading the words of Jesus as conveyed by his disciples with their
own interpretations. The concept was based on linearity, single birth and then waiting for the
Judgement Day. The concept of sin, hell and heaven were cardinal and the acceptance of
Christ as God‟s gift to mankind to save them from sin was the central theme. Philosophers and
religious leaders have found many a similarity with the Christian doctrine and the Indian
pristine original philosophy but the followers of Christianity have emphasised the differences
and proclaimed Jesus as the only representative of God born to save the world and redeem it
from sin. Christianity became a rage and this forced Augustus to accept Christianity as the
state religion, witness the similarity with Ashoka and Buddhism, and it spread out all over
Europe with Rome as its central focus. Gradually the Roman Catholic group was formed with
Pope as its leader and this religious group became very powerful and strong with extensive

29
financial backing. Bible became the religious text encompassing both the New and the Old
Testaments.
A few centuries later, yet another religious leader was born Muhammad in the Mecca-
Medina area who received messages from God and propagated his religious teaching as
“Islam”. He identified himself as sub-regent of God and unified the marauding and warring
sects of the various tribes in the Arab world. This movement captured the imagination of the
numerous tribes of the region in Middle East who offered a strong opposition to the European
powers and succeeded, by unifying the diverse elements, to the establishment of Caliphates
and extending its empire to cover the entire Middle East, Egypt and even Spain. It also
penetrated into the interior of Africa for the first time spreading the gospel of Islam and the
universal brotherhood that it proclaimed. The Caliphate movement was followed by the
Ottoman Empire led by Turkey and later the Mongol empire led by Genghis Khan.
During the first millennium Jesus‟ preaching had spread out all over Europe. Christians
mounted several crusades to recover the holy land of the Christians from the occupation of the
Muslims with only marginal success. In fact, the later part of the first millennium was a so-
called dark period for the Aryan led civilization with hardly any progress in their efforts. The
Roman Empire which had two capitals, one is Rome in Europe and the other in
Constantinople in east. This disappeared in the first century in the west and later in the east
with the fall of Constantinople around 900 AD. Muslim conquest spread over parts of Europe,
Asia and Africa. The Muslim conquerors were, however, instrumental in spreading their
culture and education covering both civil and scientific thoughts, which added to the sum total
of knowledge. India suffered from Muslim invasion. It has to be recognised however that
Roman Empire which was based on slave labour as also that of Egypt; with the Muslim
conquest this blot of the society was radically changed. Conquered people, the infidels, as the
non-Muslim people were called replaced the slaves. There was, however, progress in Muslim
science, especially by Alchemists, in astronomy, in medical science and education in the
Muslim world with the Maulvis urging on to propagate the religion. The religious organisation
also used effectively the intellectuals, artisan and skilled personnel captured in battle and used
them to spread their knowledge of science and trade. In fact, the Muslims became master
tradesmen and were instrumental in spreading the knowledge of several arts and craft to
Europe from what they had learnt from China i.e., the use of gun powder and the art of
navigation and that of making of paper, printing etc. Despite of this, the millennium has been
identified as the “Dark Age” though there were several improvements in knowledge exchange
and cultural ties including seamanship and sea trade. Witness on the other hand, the torching
of the famed Alexandria library and the museum. However, the translation services continued
throughout the tussle between the conversion efforts of the Maulbis to Muslim religion and the
“padries” priests to spread Christianity mostly by coercion and/or by bribing and monetary
means.
In the millennium that followed, i.e., the 1000 AD, the trend onwards showed definite
improvement in the state of civilization. In spite of the continued strife between the Roman
church and the kingships, tussles the various warring nations, and the great schism, individual
states gained status. Though France dominated Europe, Great Britain gradually became a great
sea-going power out of sheer necessity and acquired great skills in industry and metal trade
besides in the weaving of woollen and later textiles. From the warring tribes, Germany
gradually emerged as a state as also the Scandinavians and the Benelux countries like
Belgium, the Dutch, etc. Russia remained the wild country but by the middle of the second

30
millennium was reorganised and functioned as a state. But the great change happened in Italy
were small city-states grew up in competition with each other and in there strive for
excellence the seeds of the great European Renaissance were planted. The countries also
became adventurers and Dutch, Spain, Portugal and England sailed far and wide to discover
new worlds and establish colonies having realised that no purpose would be gained by internal
war, as there were no further landmass to win. The trouble between Church and the King led
to several amicable settlements and division amongst the Church itself, Roman Catholics,
Protestants of various hues, Orthodox and several other denominations surfaced and learnt to
coexist.
However, the major change occurred with the discovery of the sea route to America and
to India, the former by Columbus in 1492 and the later by Vasco da Gama in 1498. These
discoveries led to inflow of capital in the form of looted precious metal as also in trade
expansion, which played its part in expediting the process of Renaissance from the 15 th
century leading to a sea change all over Europe. By 16th century there was massive expansion
of learning and funding of education. With the operation of several universities in Italy,
France, Germany and Great Britain leading to an increasing interest in general education and
in basic sciences in particular. With colonisation, new marketing possibilities and trade and
commerce increased with the rise in demand in textiles and chemicals, precious stones and
handicraft, spices and condiments from India; silk, chemicals, gun powder, paper and block-
making from China and spices from the Far East Indonesia, the need to pay for the imports as
also to produce more finished goods assumed paramount importance. Effect was that Great
Britain with its established manufacturing base took the leading role and the search for new
machinery and manufacturing devices were essential with innovation, invention and
implementation. The spinning Jenny, the motive forces generated by water power and then by
steam; building of new machinery needed raising capital by formation of Companies under
Company Act, protection of inventor‟s right and other legal steps lead to partnership, private
companies and ultimately to limited liability company brought about a ravel change in the
industrial set up. Industrial revolution, as it was known, started in 1760s in Great Britain and it
came to be identified as the “Workshop of the World”.
While this drama was being enacted in Europe, China continued with its prosperous
march but in India, the political vacuum that had occurred with the fall of the Gupta kingdom
led to the invasion of the outsiders and latter by Muslim invaders and subsequently conquest
of northern India by the Sakas, Pathans and Mongols with the later setting up their empire in
India. They ruled uninterrupted up to 18th century. The zenith was reached during Akbar‟s
regime though the financial prosperity was highest during Aurangzeb‟s rule. The decline
started after his demise. While the north India was under Moslem occupation and even earlier,
the southern region had many large kingdoms, the Cholas, the Chalukyas, the Bahamanis and
the Vijayanagar kingdom, which touched great heights of civilization and contributed to the
pace of development. They excelled in architecture, in arts, science, religion, and in
governance and added lustre for about 600 odd years but declined with the rise of Muslim
power and then with Shivaji‟s rise in the west. China continued with India in their trading
excellence up to 1800 AD when India collapsed under the British occupation and China‟s
excellence was lost with the rise of USA and France and later Japan in their economic activity.
India‟s conquest by the British, firstly by the Company up to 1857 and then by the British
government, which came to an end in 1947, when India won its independence and became a

31
free nation changed the political scenario. China‟s interaction with the British power and the
consequence will be commented on later.
With the colonisation of India and America, Great Britain decided to plunder India but
also to convert it into a large market. Its policy in America was to make it a major partner in
industry. This is what exactly happened. Indian trade practically vanished while imports from
Great Britain to India increased by leaps and bounds converting India into a country in debt,
as it had to fund the Napoleonic war. America, on the other hand, prospered and when tariff
policies were framed to tax American colonies, it revolted leading to open war in which Great
Britain was defeated and USA became a free country with very high growth potential as it had
all the advantages.
China on the other hand, continued with its growth and trade though with the induction of
USA as a new kid, its share of the world trade dropped steadily. These facts are analysed in
the chapter on World Economy under Chapter IV. With its aggressive and mobile population,
USA went ahead to improve its position while that of UK stagnated. The rise of Germany and
the ultra-nationalism was noticed but the outburst of French Revolution occupied the centre of
all attention with the French monarchy being replaced by the French Republic, which
enthused the American to adopt a similar from of governance. French Republic had a spell of
set back when Napoleon took over and added to his military glory with the conquest of most
of Europe, Italy, Spain and even Egypt. But the failure in Russia put him back and then Britain
won the land war of Waterloo and also won the sea battle of Trafalgar against Spain and
became the supreme power in Europe. This led to a tussle, which was already in existence and
led to the World War I with devastating results. Even with America‟s active help, Britain was
brought to its knees but still managed to defeat Germany, which surrendered.
The World took stock of the situation and President Woodrow Wilson of US advocated
and supported the formation of the League of Nations to prevent all wars. He also proposed a
Wilson plan to revive Germany economically. As indicated in detailed comments later, this
laudable experiment failed because of lack of teeth of the League of Nations to implement
corrective steps. Once again Germany became the power to watch with its expansionist
policies and the ultra-nationalism spirit of the Nazi Party led by Adolf Hitler. This led to the
Second World War within three decades and it involved almost all the nations directly or
indirectly with USA and Japan joining in opposite camps.
After the Russo-Japanese war, Japan had adopted an expansionist policy and this was
resented. But when it attacked Pearl Harbour in Hawaii, full-scale war broke out which was
won by the allies after atom bombs were dropped over Japan and Allies under General
Eisenhower defeated Germany and its allies in Europe.
If one critically studies the history of development of civilization, one is amazed by the
extent of warfare that occurred and the sacrifices that resulted. Yet wars have been fought and
this tendency existed even today. The extension of suzerainty, the capture of fertile soil and
raw materials to ensure supply of essentials, the trade war were followed by religious causes
besides economic and in spite of all efforts, the seeds of conflict exist and influence even
today in spite of all good efforts. This is indeed a paradox and it may be argued that the
negative features, the base instincts of human behaviour still reign in him in decision-making
and that calls for introspection. It is difficult to agree with the views that wars have added to
the human progress. While it is true that technology has progressed in killing rivals, their
social impact has been very degrading and totally negative. It may also be true to surmise that
organisational theorists who applaud the contribution of wars as great and positive

32
contribution to communication, motivation and military purpose has helped industry, the net
results in the balance have to be carefully worked out. This requires critical analysis and much
research and contemplation is called for to define the path to be followed to establish peace,
tranquillity and economic excellence along with religious freedom and communal harmony
for the benefit of mankind and leave the path of war, conflict and destruction.

3. CIVILIZATIONS IN THE EARLY DAYS TO BYZANTINE EMPIRE, OTTOMAN,

MONGHUL RULE, PHASE I, II
1) Mehrgarh Civilization:
This appeared to have existed in around 8,000 – 3000 B.C. and as indicated, Mehrgarh,
near Bolan Pass was an important settlement covering the nomadic, the pastoral, the early
urban phases. It was on the important trade route to Mesopotamian civilizations and developed
“Dravidian Gene Drift”. Excavation have shown the excellence of Dravidian Culture and the
gradual growth of Pro Vedic, Vedic, Indus Valley civilization and the growth of tea trade etc.
Archaeological evidence support. Lately Cambay and Lothal archaeological dig discovered.
Mehergarhhas been extensively researched.
Dravidian culture must have started around 10,000 B.C. or before to reach the excellence
exhibited in features that were excavated. Archaeological evidence of the exhibits.
2) Sumerian Empire / Dravidian influence 6000 – 2000 BC
Dravidians can be divided into north and south groups based on geographical division of
India. North Dravidians were exposed to other cultures more than South Dravidians.
Dravidians shared in Mehrgarh civilization, interacted with Mesopotamians and N. Dravidians
influenced the original Sumerians by intermarriage and mixing. N. Dravidians were an
intelligent people, had a mastery over civil engineering, built large houses, had a religion
based on nature worship and fertility cult and a language, which was influenced and modified
by repeated interaction with Aryans (Nordic tribe, Mitani) who came in waves from north on
more than one occasion. It may well be the Gene drift from Europe as against the “Dravidian
Gene Drift.”
Aryans called Mitani were first identified by the famous French archaeologist Marcel
Brion who commented with surprise that Aryans were a well developed sect living in the
steeps of Poland and in Russia in the backyard of Europe who had a lifestyle of their own
while Europe was in comparative darkness. They were Teutonic in appearance (Nordic) long
face, fair skin with sharp features, had mastered horse riding and had wheeled chariots, with
bronze arms and they carried out several invasions to the south. They developed contact with
Sumerians, Dravidians, Greeks besides with English and others in Europe but they retracted
after the invasion except in India where they settled in the fertile Indus Valley and may have
collaborated in the development of Philosophical thinking of the highest order in “Vedas” in
conjunction with India‟s rich heritage, may be, gave rise to Indo-Aryan culture and assisted in
the growth of refined Sanskrit to which they were habituated in a rudimentary form. They
could not write and all their expressions were verbal and depended on fabulous memory. It is
for that reasons that free rhymes were first composed and were sung verbally as was their
custom. This was very similar to the Indian convention. Vedas were formulated much earlier

33
and were written later. Even now in South India there is still a convention of the use of
memory, recitation by rote, of various styles and sequences to retain the purity of the
composition of Vedas and prevent corruption. Aryans were a major change agent in the
development of Indian and human intelligence. They formed a perfect chemistry with the
Indian habit of introspection, and intelligence and benefited the human evolution of
knowledge and analysis.
Dravidians thus enriched became great thinkers, intellectuals and social reformers that
influenced the growth of all early civilizations in Middle East particularly in Greece. They
were in fact pioneer thinkers and intellectuals and improved their philosophy, living style, the
religion and language, the culture and extended this development to the mid-eastern people.
The Sumerians had mastered cuneiform (wedge) pictograph writing, which they later
converted to Alphabet writing though the Indus Valley script still defies interpretation. It
should be noted that the recent studies by the Genealogical Society has indicated that north
India is presently populated by Indo-Europeans as distinct from south which is Dravidian.
Besides the facial features of Kashmiries, Afghans even today confirm to Nordic say Aryan
features. Dravidians were great traders and builders. Their trade routes covered land as also
seacoast and that must have been the channel for propagation and intermixing. Sumerians
must have been greatly influenced.
The Sumerians lived in small clusters, which grew to be cities. Because the land was very
fertile, agricultural plots were spread around the central city with each having a temple. This
city-state enabled them to support the administrators, thinkers and the law enforces. Besides
thinkers, ascetics were supported to develop lofty thoughts as also civic amenities. There is no
record to show that they were a war-like clan but they must have defended themselves well by
establishing their gods and conventions based on totems, taboos, with festivity based on
seasons, harvests etc. They supported a priesthood who practiced these rituals. They must
have been used to cultural invasions and propagation of ideas and lofty thoughts. They knew
rudiments of mathematics, did great volume of trade with Dravidians, knew metallurgy, used
bronze, had pottery skills and in bead-making, artefacts which are all indicators of early
civilization. They knew how to sail over water, shallow seas and in Sargon; they had a great
leader, who established the first empire in recorded history. They also codified the social
norms and laid down the social behaviour patterns about the same time as Manu Samhita was
developed in India. The word Elam, meaning „home land‟ was very common as also other key
Dravidian words in Tamil.

3) Akkadian Civilization – First Empire

Sargon: was the great leader, Gilgamesh was also a noted leader and resisted Aryan
incursions. .
Sumer was a large city on the bank of river Euphrates close to where Tigris met Euphrates,
hence, the name Mesopotamia, which in Greek means land between two rivers. Sumer grew
up from the clusters of villages to a large city with a high building at the centre of the city
acting as a temple. The small buildings of the people were spread around with agricultural
fields. Civic amenities must have been provided but no permanent features like public bath,
paved road are recorded. The Sumerian had their own religion. Bull for fertility, Mother
Goddess and nature gods. They wrote in polygraph but later adopted cuneiform (wedge
writing). They were apparently good traders, apt cultivators and good citizen. Their battle
records under Sargon are not available though clay tablets with their record of transaction and

34
various seals are available for study. [For further details refer Internet records as shown
under References.]
Akkadian civilization had artisanship, pottery, skill, were peace loving, religious, with no
kingship but a chosen leader who was assisted by priest. This had all indications of an early
civilization, which influenced those to follow.
Sargon built the first empire in Mesopotamia with its army and administrators. This era
has been referred to in the evolution stage. He built ports and supported both sea and land
trade.

4) The Fertile Crescent, southern/eastern shore of Mediterranean where very fertile

area existed. True man established his civilizations in this area as also in the fertile soils of
India. One of the oldest civilizations was established in ancient Turkey “Catal Huyuk” which
was organized by Anatolians who believed in Bull worship (fertility cult) and had an early
intelligent civilization. This civilization proceeded and was later absorbed by the well-known
Sumerian civilization as discussed above.
5) Indus Valley Civilization:
Much explored area in the Indus Valley, which grew from about 5000 BC to reach
excellence in 2500 BC, and disappeared around 1500 BC. It had excellent roads, buildings,
temples, sewage, etc., and had a script, which is still un-deciphered. It used Dravidian
language and their religion. Veda the first highly rated philosophy developed in this area as
also Sanskrit, the latter after interaction with the Northern Aryans. They had clear concepts of
weights and measures. Had rudiments of Arithmetic, had seals and through individual seals,
developed trading by barter system through agents in foreign lands like Middle East. High
civilization and culture, organised life and society, work division, skill identification,
behaviour code concept, Archaeological evidence and seals. Specialised in civil
constructions, civil engineering, wieights and measures, grannery and civil services well
researched and documented. Efficient agriculture, water management, building skills and
conservancy.
6) Babylonian Civilization - 2000 - 800 BC:
Developed in Babylon as different from Sumer when the Semitics who resided initially in
this area went west and triumphed over Sumerians in 1950 BC. Hammurabee (1791-1780
BC), Arom (1680 BC) were the first sea lords and this dynastic rule was spread over 400
years. Kassite domination (Aryan) followed for 600 years around 1174; Elamite invasion
toppled this kingdom. Hammurabee was a great king and social reformer who tried to codify
law for governance. That stone tablet on which he inscribed the code is preserved even today.
For 300 years Babylon struggled against Assyrians who conquered the city around 700 BC,
but the continued resistance by the Babylonians led to the fall of Assyrian empire. It should be
noted that Elamites were a sect (Elam is a Dravidian word in Tamil meaning motherland),
Assyrian were mid-eastern origin while Kassibes were Aryans. This is an important „loan
word‟.
Nebuchadnezzar‟s father established new Babylon but Nebuchadnezzar II completed the
task to its great glory. He built a large temple, a library where he stored and preserved written
missives on clay and these are available even today. He built the Hanging Gardens, which
were a wonder of the world. He dominated Egypt, a large part of Asia Minor and Zudah. The
origin of this civilian power was largely Sumerian, adopted Sumarian Panthion and fertility

35
cult. However, Creation and deluge myths were adopted from Hebrew and passed on to
Greeks. The new civilization lasted for about 200 years and touched heights of excellence. It
is to be noted that Old Testament has recorded the achievement of this civilisation and the
glory that it was. Dravidian influence was evident in this civilization as it also influenced
Dravidians in their architectural styles.
7) Zionist Civilization - 2000 BC onwards:
This is an old civilization which founded in the area of present Israel. The Zionist
civilization was formed with the Jews branching off under Ibrahim and Moses and later by
David of Goliath conquest fame. King Solomon was a famous leader. He was famed for his
judgement. They had a religion and believed in God of rightousness. Their religious beliefs
are prevalent even today. As also Jews as a sect were powerful in finance and money
management which persists even today.
8) Minoan Culture - 3000 BC – 1300 BC:
A sea-based culture built a civilization in Crete (3000 BC onwards) based on trading by
seas. Named after Minos, the great king. He built a castle with a Labyrinth of repute. Fought
the invaders but disappeared without trace around 1300 BC. May be by Greek invaders. Left
the imprint of civilization on Greek culture. They were great sea traders and sailed around
Mediterranean Sea and built several ports in the coastline. Had three distinct phases of
development 3000 – 2000 BC, 2000 – 1600 BC and 1600 BC to 1300 BC. After each stage
there was a revival. Peopled by men from Greece and this civilization exercised a great
influence on the Greek civilization and the religion that evolved.
9) Egypt - 5000 BC onwards:
Established in the Nile delta fertile area, Menes was the first king who brought together the
lower and Upper Egypt to form the Empire in 3200 BC. It reached heights of culture and
civilization with kings (Pharaoh) representing God and with Amon Priests as advisors.
Pharaoh (God) cult was a new feature. Religion was a combination of rituals based on Totem,
Fertility, and Mother Goddess. The concept of divinity of King was strictly observed. Men
considered them indebted to God (Pharaoh) and were bound to share their fruit of labour in
agriculture or trade and also donated labour as a part of their obligation. It was a rich culture
and heritage –Pyramids and Statues. Around 2600 BC it reached praiseworthy heights in
civilization under Amenhotep II Pharaoh who introduced Aryan/Indian (Dravidian) gods. Rise
and fall of the government continued. Alexander conquered Egypt in 332 BC. New Kingdom
had Ptolemy as Pharaohs but gradually power slipped back to the Amon priest who performed
a lot of magical tricks like oracle, fiery writing on the wall, etc. Cleopatra took over during
Julius Caesar‟s rule in late 300 BC followed by Mark Anthony, Caesar‟s general. Under
Ptolemy (500 AD) the kingdom prospered and the Alexandria library, archives and research
work performed were excellent. The Kingdom slowly but steadily disintegrated. It had,
however, a glorious record and enlightened the period. It had a sustained development and
influence and has been widely studied and researched on which have been published. Egypt as
a state even today exists as a non-aligned Muslim country. It must be admitted that the first
concept of “rule of law” was codified in Egypt around 3000 BC ahead of Hammurabee and
the Sumarian Kingship.
Egypt had a religion, a language, and a script (Hieroglyphic) to which the clue was the
well-known Rosetta stone. With the Greek and Romans taking over, they adopted Egyptian

36
practices and ruled once again till the collapse of the kingdom. However, it was a wonder,
which the world recognized. It has been well researched and the discovery of Tutankhamen‟s
tomb with all its treasures and the present Aswan Dam and the recent development including
the working of the Suez Canal has maintained the importance of Egypt though not with all the
glory of the ancient Egypt. Intensely researched and publications are available.
10) Persia - 6000 BC onwards:
Present Iran, was known as Persia in the past, had its share of rise and fall. Ancient Persia,
also known as Elam (motherland in Tamil), was mostly populated by North Dravidian Proto-
Elamist as early as 5500 BC. It suffered from Aryan incursion in 4600 BC; who also brought
with them their culture. Elam drifted to Mehrgarh area to avoid warfare and returned to Iran to
develop a civilization in Susa I in Babylonia. Darius I of Persia invaded Greece. The battle of
Thermopolis was fought. A prior war established the convention of the Marathon run which
became an item of sport. Cyrus I spread out his kingdom and Cyrus II extended it further. This
was in 550 - 330 BC, Cyrus II was defeated by Alexander in 334 –328 BC. Persia was an
ancient kingdom and there was interaction between this kingdom and the Indian states in
various forms. The Parsees originally belonged to Persia and were followers of Zoroastrianism
and fire god. That cult still survives in India. The Persians had a rich literature, arts and
scientific tradition and were an enlightened nation. However, it suffered from the Moslem
invasion as also Greek invasion and lost its pre-eminence. The Parsians worshiped fire and
Zarathustra. Avesta is the language in which the book Khordeh Avesta, their prayer book is
written.
It was also a land of glory during its time and has continued with its influence on the
modern Iran specially it being an oil rich country. It has rejected monarchy; and has adopted
democratic rule. Its rich culture, literature, art and architecture wee highly appreciated both in
the past and even today. It was an area where languages evolved from cuneiform to
alphabetical with Farsi being the present form – the source of Arabic script. It had adopted
Islam as its religion after conversion.
11) Greece – 1600 BC onwards:
First Greek civilization was known at Macedonia during 1600 – 1200 BC. It was based on
Minoan civilization at Crete. There was interchange of culture. It was overcome by
Achesminus in 1400 BC. Seize of Troy happened in 1100 BC. Invasion followed; Greeks
became great traders around Mediterranean (750-650 BC) and colonies rose based on Greek
culture in 6th century BC. Various ports in Asia Minor were constructed and used as trading
ports. It reached excellence in 6th century BC. Greece was a splendid example of intellectual
excellence with Socrates, Plato and Aristotle who were great philosophers. Pericles rebuilt
Athens in 466-428 BC. The concept of selected democracy was developed and practised (427-
347), with Philosophy, Science and Lyrics reaching great heights. Alexander the Great, who
was a student of Aristotle, allocated money for research to Aristotle which later led to the
famed Alexandria‟s research heritage which was state sponsored. Pericles introduced modern
administrative methods. More than two generations of practicing democracy and scientific
work of excellence include the discoveries in mathematics and geometry. Eratosthenes was
the first to estimate and measure earth‟s diameter, Apollonius developed conic section;
Hipparchus drew the first star map and catalogue and Hero devised the first steam engine. It
should be recognized however that Indian scientific thought, which had developed earlier, had
reached Greece through Middle East and encouraged this process of development.

37
Archimedes with his scientific experiment and Herophilus with his research on anatomy were
pioneers. However, it was a war-ravaged state, both in its commencement and the end. The
peace that prevailed after Pericles helped and sponsored the arguments of Socrates and free
debate/questioning culture. The Greeks were the pre-runners of scientific civilization with
Alexander, as its jewel. This civilization fell to pieces after the death of Alexander. Aryan
influence was discernable. Greece was conquered by Persia in 545 BC. In the battle of
Marathon however Darius I was defeated. Greek civilization dissipated after Rome conquered
it. Medieval Greece revived and Modern Greece has been a part of Europe.
The role of Greece in human development and in science cannot be overemphasized, and
the world does owe a vast debt to the original thinkers and philosophers who developed the
base of modern scientific observation, collection of facts, analysis and drawing logical
conclusion. Vast literature is available on this subject. It should, however, be noted that this
development followed the spread of Indian thought via the Aryans who conveyed the Indian
thoughts to the Greek philosophers. Witness Aristotle‟s acceptance of Indian philosophical
reasoning. A view has been expressed that Euro-centric history writing has not recorded the
leading contribution of Asia primarily India and China toward the development of human
understanding and intellect. Witness the opinion of Will Durant, the eminent American
historian. He commented that whenever researched for the source of an original thought when
it is in science, mathematics or philosophy, the name India surfaced on every occasion.
Witness quote in Bachaim‟s book.
Vincent Smith‟s approach as compared to Alfred L Basham‟s approach - Vincent Smith
was euro-centric whereas A. L. Basham has researched and propagated the truth as he felt it.
In fact India or Bharatvarsha as it was then known was far advanced at that time and as the
American historian Will Durant has observed. It was the pioneer in all aspects of civilization,
science, philosophy, arts and culture.
12) Rome - 750 BC onwards:
Rome was one of the thought leaders in early Europe both as a State and the governance of
People. The state was established in 753 BC and ruled by several kings. A Republic governed
by magistrates in 510 BC who were selected by popular assembly and elders or senate
replaced this rule of the kings. Selected democracy was practiced. Tussle between the
common man, the plebeians and the leading class Patricians led to codification of law and
their right to participate. It became a sea power and extended its empire. Latin was accepted as
the state language. A series of wars between Gauls of France and Greece were fought and
Rome emerged victorious. Inevitably, war with Carthage started with the first Punic war (261-
241 BC) and this was fought fiercely. Hannibal a brilliant Carthaginian General won many
battles but ultimately Rome won. Spartacus, the leader of the slave movement was subjugated.
Rome was to become the undisputed power in Europe with Spain, Greece and Sicily under its
control as also Carthage. Pompey. Julius Caesar, Mark Anthony ruled Rome. Romans
conquered Egypt and built a large empire, which was later broken up into two – East with
capital at Constantinople and west in Rome. The west empire gradually decayed with Ptolemy
settled in Egypt and Gauls over- running the European areas. Gauls in France and Huns in
Germany became powerful. The empire collapsed in about 500 AD. Rome crucified Jesus
Christ. Role of Constantine and Augustus as ruler has been already commented on. Ultimately
Christianity was adopted as the state religion.

38
 It is the Eastern half, which survived as Byzantine Empire and continued to rule from
Constantinople for more than several centuries till around 800 AD. The remains of this empire
existed till 1400 + AD in a faded form.
This was yet another civilization which left its stamp in the realm of human development
specially in administration if not in science. The concept of Roman citizenship and Roman
law and state did influence the growth of human society. Vast literature is available for study
and analysis. Urbanization was yet another aspect which impacted the development of
civilization.
13) Phoenicians:
Like the Minoan civilization, it was a sea-faring nation. It was a nation of traders who built
the seaport of Carthage as a great city and fought a series of battle known as Punic wars with
Rome. It made a great contribution to matter of governance. In the realm of sea trade,
seamanship and warfare and strategy and with generals like Hannibal and others it impacted
on the growth though not in the intellectual plane. .
14) Parthians Empire:
Originated in 248 BC and reached its peak under Mithridates I in the second century BC.
This kingdom was annexed by Persia in 226 AD. The power was taken over by Turkish
bodyguards and Fatimite Caliphates emerged in Egypt. This lead to various Caliphates in
Egypt, Turkey and India with its ultimate absorption by Ottoman Empire.
15) Caliphates:
Descendents of Mohammad known as Calipha founded this empire. The first Caliph was
Abu Bekr who died in 634 AD. Though supposed to be elected, it became hereditary and was
held by Ummayyad dynasty and then by Abbasids. It was an important contributor to the
period of Muslim dominance as also the development of Muslim culture.
16) Ottoman Empire:
Founded in Turkey in AD 1300 succeeding Seljuk Empire grew out of their victory over
the Byzantine Empire and win over Constantinople in 1453 AD. This was an extensive empire
rich and prosperous and well governed by the Turks. The modern Turkey emerged from the
ruins of the Ottoman Empire.
17) Mongal Empire:
The Genghis Khan and Kublai Khan‟s campaigns also impacted on the growth of
civilization. These expeditions ended with their conquest of the Middle East, a part of India,
part of China and led to the spread of Muslim culture all over the globe. Though the prime
motive of these expeditions was loot, plunder and annexation, it acted as a channel of
information processing, knowledge accumulation and its transfer all over the globe, which
enriched civilization to a great extent. The transfer of Chinese technology of marine
compasses, gunpowder, cannons and paper and printing are the cases in point, as also the use
of sails and seamanship.

[Refer; Chronological Table in the Appendix]

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4. COUNTRY-WISE ANALYSIS - Phase I, II and III
Asia
(Principal actors only)

India
The two great cultures, which have significantly contributed in the process of human
development, are the Indian and Chinese.

Early age: 70,000 – 3300 BC. This period has been already described in detail. The Mehrgarh
culture and subsequent Indus Valley culture which were spread over 8,000 –3000 BC and
3000 – 1700 BC with the late Harappan culture and the late Vedic culture spread over 1700 –
1300 BC and 1500 BC to 500 BC, respectively. A few comments about the composition of the
people would assist in setting, the scene of development. The people were descendents of the
earliest known inhabitants, arising in Africa who still reside in pockets of India and may be in
the Andaman‟s Present southern India population was the original settlers and were identified
as the Dravidian stock. India was inhabited by Aryo-Dravidian stock, which has been renamed
as Indo-European stock in the recent generic survey. People of Kashmir and Afghanistan
exhibit the Nordic features and Scytho-Dravidian and Mongolo-Dravidians inhabit in the
Eastern region including Bengal. In the northeast a Mongoloid influence prevail and Turkish
influence persists in north-west with a Mongoloid touch. This distribution itself indicates that
Indian population is an admixture of many races as is supported by its history.
In Indian planes, the start of history was the earliest on record at about 10,000 BC and
there had been a continuous growth of Dravidian culture till about 2000 BC when Aryan
infusion happened.

1550 – 500 BC. The so-called Aryan culture mixed with the Dravidian and resulted in the
blooming of pristine Philosophical thoughts and refined language Sanskrit. With the spread of
Vedic religion India prospered and the small Hindu kingdoms lead to the setting up of the
Maurya dynasty and the first Hindu empire. Gautama Buddha appeared in the scene about
(600 –500 BC) to remove the ills of Brahmanism arising out of biased implementation of caste
structure “Varna”. Ashoka a member of the Maurya dynasty (321 – 184 BC) became a great
king who adopted Buddhism, propagated this religion by extending state support and
introducing many social reforms. He has been acknowledged as a “King of Kings” for his
brilliant administration and social improvement. With the collapse of this Maurya dynasty the
period (250 BC – 1270 AD), known as the middle kingdom, many small kings were in
position. The invasion of Alexander the Great occurred during this period around 300 BC and
this led to the establishment of several Greek ruled states in the North-west of India. In the
Indian plane after the Maurya the Gupta kingdom was established, which was the crowning
glory of the Hindu kingdom in India (280-530). This dynasty was vanquished with the
repeated thrust of invaders, Sakas, Huns, and other Barbarians finally which lead to the
establishment of Muslim rule in 1206 at Delhi though the south, i.e. Deccan had different
Hindu kings who ruled over separate areas, Chola empire (240 BC–1070 AD) and Satabahana
(230 BC–220 BC).
The Kushan Empire (160-240 AD) preceded the Gupta Empire for a brief period with
Harsha Bardhana ruling the northern plain. Fa Hien the Chinese traveller had reported on this

40
Indian scene. The Guptas were followed by the Pala Empire (750-1174 AD) in the north and
Rashtrakuta (753-982 AD) while in the south many other kingdoms followed.
The Islam Sultanates covered the period of 1206-1596 AD, split into two phases Delhi
Sultanate (1206-1526) and Deccan Sultanate (1490-1596 AD). The Ahoms in east set up their
kingdom in 1228-1826 AD and the Vijayanagar Empire in south was yet another great
achievement of the Hindu Kingdom in 1336-1646 AD. The mogul invaders who set up their
kingdom in 1536-1828 initiated the Islamic rule. This was the apex of the Muslim rules with
Akbar as its shinning jewel and Aurangzeb as its last major Mughal emperor, in reality and its
fall of Muslim rule coincided with the Sepoy Mutiny in 1857. It should be noted that the
discovery of sea routes to India by Vasco da Gama in 1498 had encouraged the English, the
Dutch, the French and the Portuguese to set up bases in India for carrying out trade which
ultimately led to the capture of disorganized India by the British East India Company and later
by the British crown during Queen Victoria‟s regime.
The British ruled over India up to 1947 when Independence was declared and free India
has been operating over the last 60+ years to achieve tremendous success in the education,
economics and the technology front with a great many problems remaining yet to be solved.
Indian art and culture has surprised the world right from the old Hindu period, through the
Buddhist period and then the Muslim period to the modern period. The temple architecture,
the fresco painting, the sculpture, the literature, the books and the music of the religion and the
language have all astonished the world besides the artisanship and the working in precious
metals and break-through in technology, in textile weaving, metallurgy, agriculture and water
management. It has however fallen short in achieving recent developments and has fallen back
on production technology, which it is fast catching up. It is now the largest democracy in the
world and is growing in its economic power although with dismal pockets of poverty
remaining.

China
As stated, China was the other major civilization, which has contributed greatly to the
human development apart from India. With its large population and sustained growth it was a
competitor to the Roman Empire though sheer distance prevented collaboration and exchange
in the olden days, over years, its own language, culture, systems and religion. Confucianism
practising a society-centric religion prevailed though Buddhism and Christianity existed. It is
also to be noted that India and China had interaction through trade, extension of trade links,
and through visitors like Fa Hien, Hu En Zung and others, Buddhist monks and of course
occasionally with the various kings and their ministers. It has been stated that the growth of
initial governmental system in China was the work of the Indian advisors as also in agriculture
and in textile making. China, of course, had its specialty in silk making, printing and weaving,
paper making and printing, gunpowder and navigation, and also in areas like sea faring and
pottery making in which it was supported by Ming dynasty and excelled.
The so-called Sage Kings (2800-2205 BC) were all associated with civilizing
development – agriculture, medicine and in river conservancy. The Hsia dynasty (2205-1557
BC) followed and then came the Shang dynasty, which achieved excellence in bronze artefacts
and design, which are still preserved. Shih Hwang Ti who created the feudal nobility and
encouraged orderly government and systems and built the Great Wall to stop invasion by the
barbarians was the most successful ruler. The next dynasty was Han (200BC-230AD) under
which the preservation of records was systematized and library work of China excelled. This

41
feature was the fundamental difference between the Chinese and the Indian government
systems. The iron frame of administration in China was never disturbed and sustained itself
through. During the rule of Tangs (618-906) the most brilliant period of Chinese history
occurred. The Sung‟s rule followed (900-1279) which was an age of culture and refinement.
The Mongols ruled over the period (1279-1368) but were repulsed by the Ming‟s (1360-1644)
when European incursion started. The European, the British, French, Dutch and Portuguese
with Americans all had their sphere of influence and controlled the trade. China was in the
stage of being gobbled up after being broken apart as was evident during the Boxer
movement, which was however crushed in 1900. The Manchu‟s were the last dynastic ruler
(1644-1912). Revolution broke out under Sun Yat-sen who became the President of the
Chinese republic. He died in 1925 and China fell into disruption till Chiang Kai-shek took
over as the leader of Kuomintang. The Communist Party organized under Mao Zedong won
the long drawn battle and Chiang Kai-shek retired to Taiwan. During this period Japan
attacked Manchuria and in 1937 the so-called “China” incident near Beijing took place
followed by open war. China, however, was a signatory to the Japanese defeat after the World
War II in 1944.
Chinese art and culture have maintained their worldwide reputation. As also its rich
heritage is well preserved. Also is its architectural grandeur and art as also literature, which
has added to the glory of human civilization. Some basic details are listed below.
Geographically, China is a vast country with large area, in three different structures high
land in the west, middle land of the centre and low land in the east. This has helped the river
system of the three rivers. Yellow River Huwang Ho, bend of this river had the first
settlement, Yangshe Central River, Si-kiang southern river. First settlement started around
4000 BC. Gradually the agriculture development started, followed by domestication of ox and
buffalo in south and ass and horse in north.
The various stages of governance as indicated briefly were: 1) The Sage Kingdom (2800-
2200 BC) who civilized development in agriculture, medicine and river conservancy; 2) Hsia
Dynasty (2200 -1550 BC) not much known, but provided continuity, 3) Shang Dynasty artistic
excellence, bronze casting; 4) Chou Dynasty (up to 1050); 5) The Chin Dynasty (1050-221
BC). Shih Hway to, when curbed feudal nobility introduced orderly government and built the
Great Wall. Influence of Indian culture, was appeared Asoka‟s propagation of Buddhism.
Confucius (560–479 BC.) was born, was contemporary of Buddha. During this period, under
his influence Mongol incursion occurred; 6) Han Dynasty (200 BC–254 AD) systematic and
orderly record keeping was installed, orderly behaviour and respect for aged, discipline and
inventability. Confucius meritocracy was adopted and China was transformed. North south
divide was also overcome. 7) Tong period (600–900 AD) was the most brilliant period of
Chinese civilisation excelling in art, science, writing, invention of screen printing, silk
processing etc. After a period of disruption; 8) Sung Dynasty ruled (960 – 1280), which was
an age of art and culture. The Mongols reigned from (1280 to 1370 AD) when the 9) Mings‟
drove them off (1370–1644 AD) when Europeans arrived in China. The Portuguese where the
first to reach Canton in 1517 and were followed by Spanish, Dutch, French, British and
Amenians. During the 19th century, it was felt that China would be partitioned, all traders were
conducted under treaty, and all ports were under their control (Foreign powers) and only in
1943 – 47 new treaties were drawn up. The last of the Chinese dynasties was the 10) Manchu
Dynasty (1644–1922 AD) when several great rulers rules ending with Queen T‟ze Hai who
died in 1908. In 1918, the child empire was disposed off. Revolution followed and out of the

42
revolution, rose the leadership of Sun Yat-sen, an American educated Christian, who had
married in the Soong family, one of the famous Soong sisters.
War with Communists started, China became Republic with a formal Constitution. Sun
Yet-sen died in 1925, Chaos followed. Chiang Kai-shek fought a battle with Communist Party
leader Mao Ze-Dung, long march followed and to total victory over Nationalist Party was
achieved.
New China ruled by Deng Xio-ping and his technocrat followers have changed the
face of China with their approach of market mechanism wedded to communist discipline.
China has emerged as a leading economic power in the present world.

Japan
This country is in reality a “new kid in the block” as the awakening was much delayed till
the 5th century AD. The original inhabitants were known as ASINUS and in all probability
there was a mixture of Korean, Malaysian and Polynesians. Korea was responsible for
spreading writing and education in Japan and Buddhism also from Korea was introduced in
the 6th century. It was a feudal landlord-ruled country and personal bravery was the mark of
respect. The landlords ruled over the people who had a miserable plight. China also spread its
culture in Japan, which was accepted through the installations of a central authority.
Consolidation of hereditary monarchy following the Chinese model was, however, not
accepted. As late as in 1192, a ruling noble Yamotomo assumed the power of Shogan
(Commander-in-Chief), which until 1867 was usually earned or borne by the ruler of Japan.
Contact with Europe started in 1542 when Portuguese arrived. The Dutch followed and then
by Spaniards and in 1609. St. Francis Xavier introduced Christianity in 1549. During 15 th and
16th century feudal wars raged in Japan and three great rulers Nobanaga, Hiudoyasto and
Iyeuyashu restored order between 1570 and 1615. The family of the Takogawa held power till
the abolition of the Shogan, the samurai convention, which still influences Japan‟s ethics and
thinking. The fear of Roman Catholic propaganda introduced by the Spaniards in 1624 and
then by Portugal in 1639, was found to be dangerous. To put a stop to this practice, Japan was
virtually cut off from the external world. All trade were stopped. Christians were prosecuted
and Japan was totally isolated till Admiral Perry in 1853 forced the Japanese to reopen
contact. Following this episode, the power of the Feudal lords was abolished, law and order
was re-established, and a central monarchy was installed. A modern code of law was practiced
and a constitution was established in 1859. Army was modernized and a powerful navy was
organized.
Japan then entered the expansionist phase with attack on south Manchuria in China in
1893 as also in Formosa and some part of Russia in 1904-05 and this was followed by the
annexation of Sakhalin islands. World War I followed when Japan formed an alliance with
Great Britain and annexed certain German islands in north pacific. The 1920s was the march
of democracy; but by 1932, the Japanese government assumed a semi-fascist form and
expansion was again on the cards. With Second World War, Japan captured a lot of British
territory having sided with Germany but was defeated by the American power with the
dropping of Atom Bomb. After its defeat, the Emperor was declared a common citizen with
no special power and a constitutional monarchy was introduced. In the industrial field,
however, it has made remarkable progress and is the second most powerful nation after
American if not the first.
Japanese art, culture, architecture and refined artisanship and also the credo of samurai
have astounded the world. The poems and literature are also very beautiful. They are also

43
master of quality replacing the Germans and the Americans in the industrial arena and in the
advanced sciences specially the “nano” sciences.

Europe
(Principal actors only)

1. English History:
Great Britain – Great Britain includes the present day England, Scotland, Ireland and Wales.
The Roman name Britannica was derived from Celtic and represents “Tin” which was
exported for making Bronze mixed with Copper. Local tribes inhabited Britain for
considerable period before Celts arrived from Europe in two waves. They knew the rudiments
of agriculture and grew corn, domesticated animals and built “Stone Henge” (1900 BC) and
left barrows, burial places, long line for commons, and round barrows for leaders. They were
known as the Barrow people. The Bryothemic Celts or Britons were related in blood and
culture to the Gauls of France. Craftsmen were highly skilled in pottery and metal work. The
mines of Cornwall attracted ships from Rome, Julius Caesar appeared on the scene about 50
BC, and from Carthage, ships used to arrive for trade and commerce mostly tin ores. Rome
did not conquer by sword but absorbed the natives and their culture and after an initial
resistance was over, integrated the country to its empire, a feature of Roman strategy.
Roman Culture accepted by upper class. Romanised Britain survived up to the 4th century,
which was followed by Anglo Saxons age 407–1060. Roman‟s withdrawal in 407 was
followed by German and Saxon invasion. Roman partial recovery in 417-427 and 450.
Christianity introduced in the 6th century by missionaries of Rome, though Pagan culture
under Egbert of Wessex as overlord persisted. Alfred the Great expelled the Danes from
England in 874 but had to cede to them north and east of England. Unity was achieved during
10th century but by 1016-1047, Danish Kings ruled England again. Norman influence under
Edward the Conqueror led to Norman Conquest in 1066.
Early Middle Age: 1066-1307 Dynamic trade and other interests prevailed Anglo Saxons had
developed a tribal society, a kin to Feudalism of the Norman Kings. The law and order was
established. Strong monarchy was installed but during John‟s regime Magna Carta (1215) had
to be signed because of opposition to increasing power by Church barons and large city
leaders. Henry III introduced House of Commons and House of Lords. Edward I installed
Model Parliament in 1295 and with power sharing
.
Later Middle Age: (1307 – 1485) 100-year war with France 1338-1453. Financial problems –
Parliament took over Tax laws and collection with choice of ministers. Impeachment of
monarch. Darkness followed Black Death (1348-49) with Peasant Revolt in 1381. Popular
anticlericism found expression. Richard II moved towards absolution of Parliament, which
replaced him with Henry IV who yielded power to Henry V and parliamentary difference led
to war of Roses (1455-85). Edward restored order but was replaced by Henry VII who broke
the political power of the tending feudal aristocracy.
Tudor England: (1485-1603) Henry VIII followed this step by bringing the church under
royal control by repudiating the papal power, dissolving the monasteries and confiscating their
wealth, which was redistributed. Under Edward I, Protestantism was adopted as also Catholic

44
rituals under Mary I. Elizabeth I brought about a compromise with the Christian doctrines of
Protestants and semi-rituals of Catholics. Serfdom was abolished. Modern capitalism took
form based on woollen industry (Textile) and increased export to Russia, Turkey and later to
India. Golden age was ushered but war was fought with Spain over naval power. Under James
VI of Scotland, who became James I of England, unification of England and Scotland
occurred and establishment of Commonwealth marcantilism was in vogue.
The English Revolution: 1603-1689, with the downsizing of church and growth of landed
gentry and industrial growth monarchy became weak, and lost control of power. War
commenced influenced by the inflow of American silver. With restoration of monarchy
Charles II attempted to restore power but this provoked new protest under James II, which led
to a new revolution in 1688-9. Ireland rose in revolt but remained a colony. Foundation of
empire was laid in N. America and India and conflict with French and Dutch continued.
Industrial Revolution was heralded.
The 18th century: (1689-1815) Second 100-year war with France. Superiority of Parliament
was re-established with Walpole as the Prime Minister (1721-42). George III protested but
Tories continued to retain power (1760-1830). American Independence and French revolution
(1775-83 and 1789-99, respectively) sustained the growth of democratic forces in England –
Naval victory over Spain and the defeat of Napoleon were critical phases in this period.
Change of agriculture from small cultivation to mechanized large farms and conversion from
agriculture to industrialization went ahead under Pit, the Prime Minister.

19th Century: (1815-1909) alliance of industrialists with the Whigs established a Liberal
party which in 1832 carried a Reform Bill and transferred public power from Aristocracy to
middle classes. For the next 40 years, liberalism with the ideology of laissez-faire was
triumphant Victorian prosperity rivalled Germany in 1850-75. America and India were
identified as raw material input suppliers. With new vigour England expanded operation in
Egypt and Africa and the development of commonwealth in Canada, New Zealand, Australia
and later South Africa took plan
.
20th Century: 1914 World War I with Germany, allied role of USA and India, Economic
prosperity was absent leading to labour movement and economic depression (1912-45). World
War II started to end with defeat of Germany and Japan. Though devastated, Britain was able
to retain its position in the polity of nations because of its importance as a financial centre and
of its social skills, like mastery of law following Roman expertise, literature, education and
fine arts, sports, etc., in the world ranking. It is still the fifth most important nation and will
continue to remain a major player.
2. Germany: Germanic tribes originating in Scandinavia overrun areas between Rhine, Elba
and Danube but were confined by Roman power over 4th – 5th century. France occupied
Belgium and founded Charlemagne‟s empire. He was crowned in 800 AD; and extended it to
Germany. Germans accepted Christianity. After Charlemagne‟s death, Germany was separated
from France and local Dukes became virtual rulers until central power was enforced by Saxon
dynasty (910-1002). Otto I faced a Papal conflict. Maximiliam I became Emperor (1493-1519)
followed by Charles V who brought the country into conflict with France. The reformation
movement led by Martin Luther increased German disunity, which led to a. Thirty-year war
(1615-48) and the Empire practically disappeared. The rise of Brandenburg Prussian power as

45
a military unit was established in 17th century and Frederick II (1740-84) led to Germany‟s
regeneration assisted by Napoleon who united Germany, which led to Prussian reforms. In
spite of persecution, the concept of unity and democracy spread, though revolution had failed
in 1848. The growth of industry from 1850 under Bismarck‟s leadership, and after waging
victorious war over Austria and France. Germany‟s continued ascendance led to World War I
in 1914, Germany was defeated in 1918 leading to a revolution and economic crisis. Nazis
removed Bismarck; Hitler came to power and initiated World War II (1940 – 1945), which
they lost. Division of Germany. Followed. Reunification. German government under Socialist
Party. Rebirth of Germany as an important power in Europe. European concept with states
constituting a Council was launched. Germany regained its power and importance. The major
issues were the breaking of the Berlin Wall and growth of German Nationalism. Two
fractured units of Germany were reunified after many sacrifice and have ended up as an
important member of the European Union.
3. France: Julius Caesar (57-51 BC) conquered France defeating the Gauls. Five century of
Roman rule – followed with spread of Roman culture and Latin. With the disintegration of
Roman power, Clovis (481-511) organised other tribes and accepted Christianity. After his
dynasty, the Empire or kingdom collapsed till Charlemagne (748-811) made France the centre
of a great empire. This monarchy continued up to 1500 AD with ups and downs with Louis XI
(1461-1496) Under Charles VIII Italian war initiated and a struggle for supremacy (1509-
1697) Two centuries of war which sapped its strength followed by spread of Protestantism and
religious strife (1592-96). Henry I (1559-1610) restored peace and absolute monarchy. Great
ministers like Richelieu and Mazarin operated. Louis XIV had expansionist policy but lost out
to Britain and lost Canada and Indian colonies. Misgovernment led to French revolution.
Robespiere‟s role. Monarchy was abolished but revived again by Napoleon of Corsica who
lost England in Waterloo on land as also in Russia. England also won the naval battle in
Trafalgar over Spain, France revived and continuing as a republic Great nation in art, culture,
literature and romance and excellence in trade and as it is said in „Haute culture‟. It has also
reached technical excellence. High level of education leading to a Hi-Tech country, and that is
France today.
4. Netherlands: South Sweden inhabitants migrated to Denmark in 6th century. Local
chieftain who terrorised Europe by invasion and looting ruled it. It was part of Holy Roman
Empire up to 500 AD. Adopted Christianity (940-55) Harold Bluetooth. Absolute monarchy
Frederick III (1648-70) Fight with Britain who bombarded Copenhagen and the Dutch fleet in
1807 to save Napoleon‟s attack. It is still continuing as a state with great reputation as a sea
based operation and civil government. It has a constitutional ruling monarchy. Dutch has been
a sea-faring community and great traders. They have recovered a large part of their country
from the sea by creating bunds and are now part of the European Community. It has a ruling
monarchy.
5. Portugal: A late entry, 11th century as a naval power. During war ruled by Moore Alfonso
captured Lisbon (1147). Alfonso III drove out the Moors. Cortez representing the noble,
clergy and the cities ruled and drew up a treaty with Great Britain in 1294. During 15th
century; Portuguese sailors explored the African coast opened the sea route to India,
discovered Brazil and in 16th century established colonies in Brazil, Africa, India and East
India. By 16th century the King became absolute but when the regal family became extinct in

46
1580, Phillip II of Spain seized the throne. Portuguese revolted and placed the Duke of
Braganja on the throne and forced the Spaniards to recognise their independence. Treaty with
British helped them through Wellington in 1811 drove out French who had invaded Portugal,
Constitutional government was installed. King Carlos was assassinated in 1905. In 1932 Dr
Salazar became Prime Minister. Still continuing in different form as a trading nation.
6. Spain: Spain had Iberian Celts, etc., in 500 BC with Ahalicians and Greek colonies on the
coast as also Carthegians. All the area went to Roman hands in 200 BC and became a part of
Roman Empire. At the invitation of Rome, Visagotho came in 414 BC and set up an empire in
530-700 AD. Christians set up a number of small kingdoms by 1250. Marriage of Ferdinand
of Arayan and Isabella of Castle in 1469 led them to invade Spain. Under them and Philip II
Spain became a great power in Europe and master of a worldwide empire. Columbus‟
discoveries in 1492 enabled Spain to colonise most of Central and South America. With the
revolt of Netherlands and defeat of the Armada, the power base failed (1595) and since then
Spain has continued with a lower rating.
7. Russia: The northern part of Europe extending in the east up to Alaska was made up of a
vast hinterland adjoining the developed European countries like the Scandinavians, The
French, and Germany etc in the west and the wild country in the east covering Siberia and in
the south by the steeps of Europe which was ruled over by the various invaders and tribes like
the Kosaeks, and the Mongols and the Chinese territory. The Slovenia tribes and other
nomadic peoples were in frequent conflicts and this led to an uneasy situation. In the 9th- 10th
century Viking chieftains ruled Russian territory and established their rule in Novograd, Kiev
and other cities. A state of uneasiness persisted till 10th – 12th century when Kiev took over the
leadership and united the Russian tribes into an empire. Christianity was introduced in 10th
century from Constantinople. In the 13th century, the Mongols overran the southern steeps,
compelling the Russian Princes to pay tribute. Conflicts continued till Ivan II the prince of
Moscow (1462-1505) threw off the Mongols and united the North West while Ivan IV (1547-
84) assumed the title of Tsar extended his empire and started colonization of Siberia extending
it up to the Pacific. Following Ivan‟s death, misrule followed till the first Romanov Tsar was
elected in 1613.
Peter I (1682 – 1725) took control, modernised the administration and the army,
introduced western education and wrested the Baltic Sea Board from Sweden. He was known
as Peter the Great. Catharine II who followed him expanded the Russian territory and Russian
intervened in the Revolutionary and Napoleonic war, drove back Napoleon‟s forces in 1812-
14.
During the 19th century while revolutionary ideas spread in spite of repression, a rapid
development of industry followed the abolition of serfdom (1861), to working class movement
developed and by the turn of the century social democratic party was founded.
After a period of war with the neighbouring countries like Turkey etc. and other European
countries various changes took place and the Tsar had to give up some of his powers in 1905.
However, the tension continued and led to the First World War in 1914. A revolution in 1917
established a Republic but the failure of the Government, led to the rise of Lenin who sought
to capture power. This lead to the treaty of Brestand -Litousk in 1918 but the allies British,
France and Germany attached Russia in Europe and Japan in the east and “white army”
carried on the civil war. Poland, Finland and some Scandinavian countries regained
independence from Russia and the defeat led to the establishment of a Republic, which was

47
further replaced by the Bolsheviks led by Lenin who seized power. Though some treaties were
signed, war continued with Britain, France, US and Japanese during the First World War
leading to the independence of some countries like Poland etc. to regain independence from
Russia. A federal constitution was adopted in 1923 and the “New Economic Policy” which
tolerated some private business replaced the “War of communalism policy”.
After Lenin‟s death, there was inter-party struggle for power and Joseph Stalin emerged
as the leader and instated his brand of socialism and 1st:Gosplan; (5 year plan for national
development), was installed during which period 1928-39 heavy and light industry was
developed and agriculture collectivised. Stalin‟s was a total dictatorial control and led to
recovery of lost areas and a treaty with Germany. With the rise of Germany under Hitler and
his conquest of Poland, Russia became restive and reoccupied White Russia and West
Ukraine. With the rise of Nazi‟s, Russia who had a treaty with Germany further extended its
occupation over the bordering countries like Latvia, Lithuania, and Estonia etc. It became a
world power.
Second World War started with the war spreading all over Europe and Russia being
invaded by Germany. The Panzer attack by the Germans was halted at St. Petersburg,
Leningrad, and with USA joining in after the attack of Pearl Harbour by the Japanese; the war
drew to a close with the defeat of Germany and Japan. Russia suffered greatly but Stalin‟s iron
grip kept up the spirit. With Churchill, though pushed to the corner, and Roosevelt with all its
wealth of production people and technology and Russia with its military might space and
people, the trio were declared as victors of the war and that too after Atomic bombs were
dropped over Japan.
But the oppression of the Stalin regime was fomenting the rise of revolution and caused
the Hungarian rising in 1959. The violent repression angered the world. Stalin‟s death
removed the iron hand which had led to a great deal of oppression was replaced by
Khrushchev, Kosygin and Brezhnev who started de-Stalinization. It showed great interest and
help towards the developing countries where colonies and which came to play a significant
role after decolonisation like India, Pakistan, Burma etc. in near east; in Far east Malaysia,
Thailand etc. and in Africa, a host of countries. Khrushchev and Brezhnev ruled over a very
disturbed Russia, which was in a constant tussle with USA. Kennedy and Khrushchev and
Brezhnev had a severe eye-ball-to-eye-ball session over the Cuban missile crisis. The calamity
was averted but the trouble over the failure of communist economic framework installed in
Russia and the ingress of and market economy was the reason for the stepping in. of
Gorbachev, who introduced his notion of Perestroika (openness) and fairness and this brought
about a slow decay in the system. After a session of near chaos, Putin took charge, changed
the constitution to allow for a mixed economy, and with a truncated Russia introduced a
modified market economy, with the Communist system of total state control of planning,
production and distribution replaced by a loosely structured market economy to a great extent.
It also suffered a breach of relationship with China who had developed a mixed economy
without sacrificing state control and the nation had steadily started to regain its lost position.
Under Putin, Russia has settled down somewhat.
Russia is a proud nation with immense national resources, vast hinterland, and a land
endowed with all varieties of natural wealth, forests, rivers, coal, oil and hardy people though
their habits and love for Vodka, the national drink, has posed problems. Their literature and
contribution in architecture, arts and sciences is commendable. Tolstoy, Dostoevsky, Gorky
and others are world figures in literature. Sculpture was less developed because of religious

48
taboos but Russian expertise in Icon painting is world famous. Russians love for sports have
created quit a few world order sportsmen specialised in high jump, gymnastic, ice hockey etc.
In technology especially in defence technology it has had startling successes. In fact,
independent India was helped in its defence preparedness by Russia and India still procures its
major supply from that country. However, it has lost its preeminance as a counter point to US
power though it is gaining economic clout.
The vast area now known as Russia martial tribes inhabited, till Peter the Great united
them in later seventeenth century. It excelled in Ballet, produced many a scholar, artists and
musicians and had a great collection of vintage art artefacts. It became a powerful nation
under the Czars but the court was inept and this led to internal strife. It suffered terribly in the
French attempt under Napoleon Bonaparte to conquer it and then again during Hitler‟s
campaign in the Second World War. Prior to that, the rule of Czar dissipated in a revolution,
which heralded the communist state, Union of Soviet Socialist Republic and a unique
experiment based on Karl Marx‟s dogma and Lenin‟s vision. The communist movement gave
a different picture to the political and economic scenario till the communist state collapsed in
the later 1991 and was replaced by a union of states based on market economy, which was
devised by Putin, the present leader.

8. Scandinavian Countries: Norway, Sweden and Finland constitute a block of countries,

which are as old as Great Britain, if not older. They were great seafarer and sailors and were
known as „Vikings‟ who conquered and vanquished Great Britain on many occasions.
Presently, they are very peace loving, prosperous and have retained their love of nature,
environmental concerns, ethical responsibility and effort to reform the world.
9. Denmark: Kingdom of North West Europe. It is a low lying country with a highly
advanced cooperative system among the intensively cultivated small holding resulting in a
very deficient agricultural industry exporting meat especially, bacon, dairy products and eggs.
It has also an industrialised base exporting specially quality goods to other countries in
Europe. Tobacco, textiles, clothing, paper and chemicals are the industrial exports.
It has a constitutional monarchy of long standing and is very popular. Though original
Danes came from Sweden, they terrified Europe by their raids. Many wars were fought and
many mergers later, Denmark emerged as a stable entity and has contributed to the growth of
Europe.
10. Belgium: A small nation ruled by a monarchy and part of the European community.

America
(Principal actors only)

United States of America

The other “new kid in the block” is USA. The large landmass, which is in existence on
the reverse side of the globe as distinct from the European and Asian landmass, is the USA,
Canada and South American landmass, which is very rich in mineral and in fertile land. This
land mass was unknown to the other half of the world till Christopher Columbus of Spain
discovered it (1492) in his quest to find a sea route to India, hence the name Red Indians for
the indigenous inhabitants of America. The first settlement was made by Spain in Florida in
1565 and the first English Port was established in 1607 in Jamestown in Virginia. In 1620, the

49
Pilgrim Fathers landed in Plymouth and eventually founded Massachusetts, then Maryland in
1634 and Pennsylvania in 1682. Dutch founded New Amsterdam in Manhattan in 1620 and
this town was renamed New York when English captured it.
It became clear that the original inhabitants identified as Red Indians were no better than
nomadic hunters with some pastoral experience. They had a powerful organization, were
divided into clans and lorded over their identified territories hunting and shifting. The
Europeans who migrated to USA settled and gradually through wars, agreement, piracy and
other fair or unfair means captured the country and formed the various states or 13 colonies
after defeating the French and then rose in revolt against the home government in 1776 and
claimed independence. Led by George Washington, they defeated George III‟s army and
gained their independence. Thus Unites States of America was formed with a new constitution
much influenced by the French Revolutionary ideas in 1787, which was enacted in 1789.
Washington was chosen the first President. The later history was that of expansion and
consolidation, sheer adventure and rank bad treatment with the original inhabitants. Louisiana
was purchased from the French and Florida from Spain. In 1813-14, another war was fought
with England over commercial disputes and other wars took place when the frontier of the
country expanded westward till California was reached. Alaska was purchased from Russia in
1867. In 1861-65 a great civil war was fought out between the south and north on the question
of slavery in which Abraham Lincoln from the northern states gave leadership and won,
thereby also ending slavery once for all and uniting the broken parts of America as at were to
one unit.
This war had stimulated the industrial output and led to the expansion by the way of laying
roads, railways line and boat movement in rivers that existed. Private enterprise was supported
Opportunities that existed were grabbed by the immigrants who flocked from all over the
world or even created opportunities by their shear hard work and entrepreneurship. First
World War saw another outburst of industrial enterprises and USA became the main supplier
of arms and ammunition to Great Britain and the allies. This resulted in further prosperity
though followed by a major depression in economy due to various factors. The land of
opportunity was troubled but by various government measures, once again regained its lustre
and became the leading industrial nation. In Second World War, which followed, USA was
directly involved as Japan attacked Pearl Harbour. However, after a great fight it won
devastating Japan by dropping Atom bombs. Since then, it has been acknowledged as a leader
along with the Russian might, which collapsed with the collapse of communism. It has
changed its isolationism Monroe Doctrine, propounded by James Monroe (1758-1783), the
fifth US President, to act as an active policeman and leader with major consequences.
Its art, culture, wealth, literature, science and technology, the USA has achieved major
progress and has been the envy of the world. It is remained as the first power in the world
though Europe by forming the European Union is emerging as a new force.

Canada
The northern part of America is shared by Canada and Alaska, of which Alaska is a part of
the USA, whereas, Canada is an independent democracy. The British and the French along
with Dutch established colonies in the Americas after Spain discovered the American sea
route. Canada was more interested to the French settlers, who established their colony and
went on spreading their establishment. British protested and after a lot of skirmish, the two
nations led separate existence till the fall of the British in the Americas, when Canadians also

50
refuted the ruling of British and French government and declared their own independence thus
establishing democratic rule over Canada, with special protection for the cultural heritage of
France. Quebec the important province of Canada has French as the spoken language, while
the other provinces bear English. It is really a bi-cultural bi-linguistic state and has handled the
duality very well.

South American Nations

(Principal actors only)

Brazil: Brazil is a country in South America occupying 50% of the landmass, the fifth
largest country by geographical area in the world. It is fifth most populous country and the
fourth largest democratic country. In the north the smaller countries like Venezuela, Guiana,
Suriname, and French Guiana bound it. Brazil has a large coastline in the Atlantic in the
northwest by Columbia, in the west by Bolivia and Peru and on the southwest by Argentina
and Paraguay.
Brazil was most probably populated in 9000 BC or even before when the people from
Siberia crossed over to Alaska over the frozen Bering Strait after the last Ice age was over. It
was highly populated by 1560 AD when the Portuguese explorers first arrived. Pedro Alveres
de Calral reached Brazil, a few years after, in 1498; when Vasco da Gama reached India
sailing round the Cape of Good Hope. He introduced and initiated the capture of Brazil for
Portugal, but India being that prosperous, failed to raise high expectations, though Brazil was
a very rich country potentially. It had, however, a multiplicity of tribes and languages and not
so rich.
Brazil was under Portuguese rule as a colony and even sheltered the Portugal Kings when
they were driven out from Europe by Napoleon. The power centre shifted from the main land
to the colony and ruled from Rio de Genero. In 1822 Portugal gave up its rule and Brazil after
the military conquest was over proclaimed itself as a Republic and adopted democratic rule,
which persists even today. As a member of the BRIC group, it is emerging as a world power
both economic and political spheres.
Peru: Peru had an ancient history, which is clouded with some mystery. It has been proposed
that people from Ester Island in the Pacific sailed across pacific and populated Peru which
later founded the Inca kingdom and who were Sun worshipers. It was a very rich country with
a great civilization, which established such temples as Machcu Pichu, which is revered and
visited as a heritage site even today.
It was, however, defeated in battle by the Spaniards when they invaded the country from
Panama where they lived and marched across the Pacific coast to reach Peru. Fransicis Pizzaro
was the Spanish explorer who conquered Incas after a bloody fight and it became a Spanish
colony. A great civilization was lost in the process, which is being researched on by great
many scholars.
Mexico: Mexico is the fifth largest country in Americas by total area and 14th largest
independent nation in the world. It is the 11th most populous nation. In pre Columbian
Mesoamerica, many cultures matures who advanced civilization such as Olmec, the Toltec,
the Teotihuacan, the Zapotec, the Maya, the Aztec, before the first contact with Europeans as
indicated earlier. In 1521 Spain created the New Spain, which became Mexico after gaining
independence in 1812. The post independence era was a period of economic instability,
territorial succession, civil war and foreign intervention, two empires and long domestic

51
dictatorship. Mexican revolution followed in 1910 and promulgation of Mexican Constitution
in 1971. Elections held in 2000 saw for the first time the choice of the opposition leader from
the PRI party who ruled the country for last 71 years. As a regional power, Mexico is the only
Latin American member of the OECD - Organization for Economic Cooperation and
Development and it is the 11th largest world economy. As a member of NAFTA (North
American Free Trade Agreement), it retains its economic status though as a poor cousin.
Mexico remains as a labour supplier to US as also a co-supplier of semi- finished products and
agricultural output.
The Maya civilization has been a matter of great interest to the philosophers and a great
deal has been written about the similarity of the culture and that of the Indian rituals. Even the
word „Maya‟ is significant. The basic civilization started around 21000 BCE i.e., the Stone
Age. Corn was grown around 9000 years ago ushering in agricultural revolution. Around 2000
to 200 BCE many matured and advanced pre-Columbian Mesoamerican civilizations
flourished as indicated, of which Maya civilization erected a lot of edifices and stone
structures, which has carried its own lore. Aztecs were the last local civilization, which was
destroyed by the Spanish, and New Spain a colonial name given to Mexico was established.
This period under Spain was very turbulent and gave Mexico a different profile specially
because the American‟s deputed the independent Mexicans as marauder and robbers – Panelis
Villa – etc, Mexico, however, has regained its earlier image and contributes as an active
citizen of the world.
Native Civilization Spanish Modern Mexico

Argentina: The eastern coast of Argentina is washed by the Pacific Ocean and it has a long
coastline. It had its own native civilization, which was conquered by the Spain in the sixteenth
century. It was a fabulously rich country and hence the name Argentine – the land of Silver
(Argentum).
The earliest civilization in 11000 BCE and it was a part of the INCA empire ruling from
Peru but it remained a nomadic culture. Spain established a colony in 1580 and continued to
rule through the 18th century. British launched two missions to Buenos Aires in 1806-07 but
were repulsed on both occasions.
During the Napoleonic war, the Portuguese king took shelter in Buenos Aires and
experienced their influence over Argentina. The two nations merged as the Unites provinces
of South America in 1810. Argentina gained independence under the leadership Colonel San
Martin in 1817 when they cross the Andres Mountain and defeated the army of Chile and
Peru. This was followed by wars between Brazil and Argentina and ultimately Argentina was
declared an independent country under Governor Rosas in 1857. A constitution was adopted
and modern Argentina emerged.
From 1870 led by investment from Europe, Argentina because a very aggressive
agriculture exporting land and gained economic prosperity through to 1930 and emerged as
the 10th richest nation in the world. However, in 1946 Gen Juan Peron was elected President.
He launched a new movement “Perronista”, which introduced Dictatorship. This disrupted the
economic balance and led to civil revolt against Eva Peron‟s hold. This led to the banishment
of Peronism and democracy was re-established. The new President Memem has attacked the
economic repression and advocated a privatisation policy, which seems to be working.

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 5. TREND ANALYSIS METHOD
Civilization – A Comparative Analysis
Civilization grew out of the word “Civis” which means cities and also covers their life and
cultures. In general, there has been a great deal of controversy over this issue, the primary
points being: is it time or the sequences, or the pattern, or the phase that develops civilization
or how should it be separated and identified. Without going into the merit of each case, one
should be satisfied by the trend approach, which is associated both with time and geographical
area to identify different civilization as under:
1. Indian civilization – Mehrgarh, Indus Valley Civilization, Vedic philosophy, initial
science, Economy and governess both social and political is continuous and throing with
highs and low.
2. Mesopotamian civilization – Catal Huyuk, Sumer, Babylonia, Persia, Jewish, Turkey –
ended in around 400 BC and then continuing to present day.
3. Egyptian civilization – Lower Minosian & Upper Egypt, Pharaoh, Ptolemis continuing
4. Greek civilization – Greece and adjoining areas, Excellence in Philosophy, natural
science and governance. Continuing with highs and lows.
5. Roman Civilization- Rome, Constantinople East and West. Large empire existed from
end BC and early AD and continuing in a different from. selected franchise, Republic,
Senate, urbanization, citizenship .
6. Parthian Empire and others. like Seleucids,etc..
7. Caliphates Spread of Muslim rules and concepts
8. Ottoman Empire. Transfer of knowledge
9. Monghol invasion

10 Chinese civilization, Continuous with kingship and own philosophy and culture 6000
BC to present day. [Two important continuous civilizations India. and China]
11. Euro-culture centric presentation of history need to be debased and real emphasis given.
Hindu Kingdoms in South East India, French, Chinese influence
12. European civilizations - British, French, Germany, Dutch, Spain, Portugal, Russia, after
the fall of Rome Nordic countries were transformed Continues through 200 BC to
Present day
13. American civilization (AD) – Prehistory, Incursion, colonization and independence.
Major power
13a. Mexican Aztec - late BC to AD. Prior to conquest by Spain in mid 2nd millennium
13b. Peru Inca - late BC to AD. Prior to conquest by Spain in mid 2nd millennium
14. Japan – Japan proper, Korean, Taiwan late BC still continuing.

To comment on the state of civilization, one has to take into account the progress achieved
not only in warfare but also in the development of Arts, Science, Literature, Architecture,
Religion and living standards of the people and in the social context. Reviewing under these
issues, India was the first and the front running civilization. It started with a bang but finished
with a whimper, and is now rediscovering itself. Chinese civilization started after India,
gradually stepped out from the nomadic to pastoral to socially organized civilization which
reached its height around the Roman period, fell into disrepute and has once again developed
in recent times. The Sumerian/Mesopotamian civilization after making major contribution in

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the initial stage in developing writings, science and civics disappeared without a trace though
Babylon can be credited with the idea of creating a library, the tower of Babel, Hanging
Garden, but now all vanished into antiquity.
Egyptian civilization however gave the world the organizational capability to build
Pyramid with nothing more than pulleys, levers, rollers and enormous human labour supply.
Some of which were slaves but the majority were contributing labour to Godhead, their
Pharaohs, as was their due. The excellence of sculpture and the proportions, the knowledge of
conics and geometry were certainly a gift to the world as also the trade and commerce that it
build up. It also expanded the concept of trade that it had learnt from the Sumerians who had
learnt it from the Dravidians as also the art of civil management most probably from
Hammurabee‟s code of ethics. Like Sumerians who with the Dravidians had developed the
Cuneiform (Wedge) writing, the Egyptians developed the Hieroglyphic script which was a
combination of pictorial and symbolic script which later developed into alphabetic script with
the development of Sanskrit the refined tongue with Aryan (Mitani‟s) association. Like the
Dravidians in India, it had developed a strong religion, the concept of God King, Pharaoh and
priest lords (Amon priest) who also yielded immense power over administration.
India besides the Vedas, the concept of pristine God, and Sanskrit had also developed code
of behaviour recorded in Manu Sanghita and the first grammar by the grammarian Panini.
With the decay of Vedic religion and Brahmanism due to the corruption of the ideal Chatur
Varna structure; the Bramhacharya phase and the “Gurukul System” of education which was
India„s gift to the world and the rise of Buddhism with the propagation of middle path and the
sutras recorded in Tripitaka, the ills of Brahmanism were sought to be corrected. More so,
with Asoka‟s state help Buddhism spread far and wide and influenced human development
and the world thought process. It was Asoka who excelled in establishing and running a large
empire and introducing many novel steps like minority council, local forums, and spread of
information through stone edicts.
Babylonians believed and excelled in large structures as also Egypt, This influence must
have travelled with the Elamites to the Indian shore as one finds large temples being
constructed in the south cost of India, under Babylonian influence and vice versa. In north
India, large temples are hard to find. May be whatever was there were demolished by
Mohamud of Gazni or other marauders and only undistinguished temples exist. Basham‟s
book The Wonder that was India amply supports this view. The Indian temple architecture and
art blossomed in south and in Buddhist areas. Via the Midwest, the Indian thoughts reached
Greece and influenced that civilization as also the Persian civilization, which developed late in
Mesopotamia and Turkey. However, the Jewish thought and the Iranian thought, like the
Persian, did not conform to the Indian thought, as they believed in linear life, one life and then
wait for the judgement day. Plato and may be, Aristotle, however, ultimately accepted the
nonlinearity of life along with the concept of the soul and rebirth and the tenets of Karmic
philosophy.
Greece reached great heights in philosophy, introduced „rational thinking” and collection
of data through observation and analysis. It sponsored an enquiring mind and debate and
collective consensus judgement of any phenomenon. Greece was a war ravaged area, internal
and external, but even then did set up standards of architecture, arts, literature and science,
which are admired even today. How much of Indian thought percolated is a most important
question but certainly the decimal system, the philosophy the astronomical findings and the

54
concept of time, measurement and weights, measures and volumes were of Indian origin and
are so accepted.
Aryans (Mitani) had a positive role to play in this transfer of knowledge and visa-vice.
Greece being a sea-faring nation also learned from the Minoan civilization and became expert
traders and sailors. It became a wealthy nation and developed the roots of selected democracy.
The contribution of Greek civilization to human growth is to be acknowledged. The science of
war as perfected by Alexander under the tutelage of Phillips, his father, was yet another
addition to the world of knowledge and society.
The Roman civilization, which followed closely and can to be termed as a continuum
added grandeur to the world of living in the material sense, if not so much in the scientific and
spiritual sense. It was a realm of splendour where for the first time democracy, though in a
limited form, was practiced and implemented for governance. Laws were codified and
enacted. The forum and senate were established and activated. The frontiers expanded with
the conquest of most of Europe including Spain, Portugal and African coast where they fought
long lasting battle with the Phoenicians in the Punic wars. Romans gifted the world
magnificent sculptures, edifices, buildings, roadways and improved transport and trading and
primarily in urbanisation. The citizenship itself of Roman Empire was a coveted honour where
law, order and justice prevailed followed by regular urbanisation drive. The citizens were the
proudest and happiest in the world forum. All said and done, it was, however, a social
structure based on slavery, a slave state, and that brought about its downfall with the rise of
Spartacus, the slave leader, who fought but lost. The Roman legionnaires were respected but
out of fear of oppression. The state crucified Jesus of Nazareth who preached Christianity and
his concept of kingdom of God on earth, a great idea that revolutionised religion. Analysing
the reasons for its fall, Gibbons, the great historian, remarked, “that was no wonder, it had
stretched itself too far. It was a surprise that it lasted so long.” It should, however, be noticed
that in victory it rarely put the vanquished to sword and plunder as was the practice but
absorbed and adapted to them. The Roman gods and Roman ways of thinking spread and that
helped immensely in its popularity and long existence. It supported brilliant architecture; build
remarkable edifices of excellence and above all the concept of rule of law as propagated by
the Augustus‟s. Its territories were so wide spread that later it had to have two capitals Rome
in the west and Constantinople in the east, which was known as the Byzantine Empire. It also
extended its control over Egypt and Mesopotamia and Turkey.
A period of darkness descended on the European sector after the fall of Rome with
Barbarians taking over, the Sakas, the Huns and the Mongols all mounted raids. Small
kingdoms existed which ruled without making positive contribution towards human
development. While it is true that Aryan domination faded during this period and hence the
justification of the “Dark Age”, the Muslim culture and Kings who took over contributed their
might to the spread of language, knowledge and scientific analysis and this added to the
growth of civilization. It was recharged as it were and the development of the second
millennium was proved by the spread of language.
In the Indian plane, however, revival of Hinduism occurred with the advent of Shankara
around 700 AD who reorganised and rehabilitated Hinduism. The Gupta kings also added
great glory to the Hindu kingdom which held their sway and achieved excellence in arts,
science, literature and mostly in religious thoughts as preached by Shankara in his Advaitya
interpretation of Hindu philosophy (Vedic)

55
 Of course, in the south India, a great resurgence followed with the building of great temple
complexes and revival of Bhakti cult and Vedanta philosophy. The Chola‟s sent out many sea
vessels to trade in Far East and spread Hinduism in Thailand, Java, Borneo, Sumatra, the
present Indonesia so rightly named. The art of temple sculpture and architecture spread out
with the result of establishment of Angkor Wat, Borobudur, Ayodhya in Thailand and other
relics, which still remain, are highly admired.
With the birth of Mohammed and the spread of Islam yet another influential group entered
the world theatre. Mohammed succeeded in bringing order to the nomadic tribes of the Mid-
West and Islamic Caliphates were established with their own culture and administrative style.
It ruled over a wide area and supported studies in chemistry, astrology and mathematics as
also in religion. It conquered India and started the Muslim rule, which built some excellent
edifices like Taj Mahal, tombs and palaces. One of the most successful emperor, Akbar tried
to synthesize what was good in Hinduism and that of Islam and had a court in which all wise
men and administrator were involved. Dara Sekoh, Sahajahan‟s son who even translated
Upanishad was a great believer in synthesis but was killed. The Mughal rule ended factually
with the demise of Aurangazib but continued till the British sacked Bahadur Shah the last
emperor.
Culturally, except for the output from the Islamic Ulemas and Maulvies and some positive
contribution from Islamic scientists this was identified as a dark period barring the Mughal
output. No great religions thought arose in the Middle East except the propagation of
Christianity and Islam and the fights between the Roman Catholics (Pope) and the other
practitioners, Russian orthodox and Protestants led by Martin Luther. It was a period of great
debate and skirmishes. Unfortunately, both Islam and Christianity practiced conversion and
polarisation and were militant in their approach leading to numerous crusades and constant
conflicts, which exist even today.
Europe, however, rose from this chaos with the propagation of rational science, which lead
to economic and political expansion. The great nautical feats, discoveries of the Americas,
India by sea route, Mexico and Peru and the establishment of colony in these rich countries by
the European power led to the flooding with ill gotten wealth which started from the realm of
Elizabeth I. Chartered trading companies started a massive programme of resurgence
discovery and investment in the west with the growth of science and technology and the start
of Industrial Revolution. The rest is history, which is well known.

Broad Brush Analysis

An attempt has been made in the previous sections to analyse human development in the
historical context chronologically which mostly depends on recording the rules of kings and/or
leaders and the wars they fought the conquests they made and defeats with some passing
reference to the society, the religion and the impact that these rulers had over the development
of the human society. The analysis indicated the grandeur of the Vedic era in India which A.
L. Basham has termed as the “Wonder Years” and its decline; the gene drift of the Dravidian
civilization, the oldest cultural and philosophical growth during the period and the propagation
of that growth, by the inter-mixing of civilians belonging to different cultures in
Mesopotamia, the Fertile Crescent, Sumerian Culture which intermingled with it Dravidian
roots indicated mostly by “loan words” and religion with Babylonian, ancient Persian and
early Egyptian culture around the same geographical area. This period may be termed as one
of the Vedic culture. Also its decline because of the greed of the priesthood, evils of caste-

56
system though it was a brilliant idea: of classification of the society skill-wise, an essential
management principle. This effort was corrupt by the shielding of the knowledge,
exclusiveness by the priesthood both in India by the Brahmans, and the priests in Sumer,
Egypt and Babylon in cohort with the kings on the premise “Knowledge is power”, and this
should be denied to one and all was their credo which led to disaster.
This age was the flowering of the Vedic culture in which the Veda, the ultimate thoughts
on monotheism (Ekam Vahuda Vabantu) and attainment of peace and tranquillity through
renunciation and realisation of the Divine. These concepts were formulated by many rishis
(wise men) and finally commented on by the great Veda Vyas, the eras of Ramayans, the
governance of society and its ideal code as laid down in Manu Samhita, the growth and
refinement of the classic language based on vocal sound which was codified by Panini in his
Astangaadhya, the first grammar gifted to the human society and in its development. The
impact of the so identified Aryans may well be considered as a part of the great drama that
was being enacted with the proviso that interchange of ideas can also be countervailing
covering both inward and outward flows. Though Dravidians had their own language, nothing
would prevent them from excelling in another, specially the Brahmins who were the
intellectuals. As latter events proved the Dravidian scholars were the great interpreters of
Vedic thoughts and it is they who have kept alive the true sprit unspoiled. Vedic culture in
Kerala and Karnataka even in the present day is being taught and practices unadulterated. .
The magnificence of the cultural heights reached have left evidence on the Mehrgarh
culture in Baluchistan, near Bolan Pass; the sunken port in Cambay built around fifth
millennium BC, with indication that Dravidian pastoral life existed with peace and tranquillity
in the land of milk and honey that was India and would lead to a well-organised society. The
epic of Ramayana, which is thought to have occurred in and around 3rd millennium BC, spoke
of occasional disturbance of peace with fights between the Rishis who spent their life in their
ashrams protected by the Kings whose duty was to protect them. The concept of Ashyameda
Yagna (the horse sacrifice) which established the super-kingship led to random warfare with
peace prevailing for the development of human thought through contemplation, renunciation
of desire and rituals. The first recorded major battle was that fought between Rama and
Ravana supposedly in Lanka leading to Ravan‟s fall and the victory of Good over Evil, the
eternal war that is being waged as is envisaged in all basic religions.
The Mahabharata narrates the war between clans and it was the mother of all wars leading
to the near decimation of the Indian nationhood. In this epic, the state of governance, the
society and the law and order situation, the revenue system and governance are all commented
upon and the society has been given a code of conduct of behaviour which was also the case
with Moses, Hammurabee and others in parallel civilizations including the great Bhagavat
Gita.
The decay of the social order led to the development of the Buddhist movement under
Gautama Sidhartha known as Buddha, the enlightened, who rejected the Hindu pantheon and
the rituals but accepted the concept of Soul, reincarnation and the “Karmaic Philosophy” in
his quest to attain peace and true deliverance Moksha. Ashoka, (269-232 BC) the king of
kings, the great Emperor who after a bloody war in Kalinga adopted Buddhism and spread the
tenets widely all over the world – far-east, middle-east, China and Europe with state backing
and sponsorship. This was a “turning point”, a purge of the dirt that had entered Vedic
Culture. Swami Vivekananda termed Buddha as a “rebel child”. He was certainly that and
more as he denounced the Pantheon, but not the main tenets of Vedic culture. Buddhism was

57
preceded by Jainism, which denounced the evils of caste system but adopted extreme
asceticism and penance, which was rejected by Buddha. However, Buddha was the first to
install monasticism with monasteries and imposed a celibacy life and following the eight right
paths as depicted in the Tripitaka, the holy books of Buddhist religion.
This era covered from 30,000 BC to around 100 AD. While this drama was being enacted
in India and the Middle East, as stated, Egyptian civilization had also reached great heights as
also Babylonian and Persian kingdoms. Jews who are present from the beginning as a
nomadic tribe organised under Abraham, Moses known for his initiation of Ten
Commandments and followed by King David and Solomon who settled in Cannan after a
great search. Jews had a written religion in „Torah‟ and „Talmud‟ and they worshiped the God
of Righteousness and still do so. The Persians with Zoroastrian and Ahuda Mazda
representing the fight between Good God and Bad Asura with victory of Good. These views
can all be identified as their contribution and growth of the “Eastern Religion” and thought
with the sole exception of the Minoan civilization that developed in the island of Crete, based
essentially on the sea trade, which had developed in the Mediterranean area. It started around
2000 millennium BC and vanished after a thousand years without contributing greatly in the
development of human thought excepting in seafaring and trading skills that it exemplified.
Yet another culture had developed and was discovered at ancient Turkey around 6000 BC
“Catal Huyuk” which was conquered by other races who wanted the fertile lands they
occupied. The Catal Huyak as the Sumerians, were nature worshipers with polytheists culture.
As the Sumerians the drifting Dravidians and Brahmans of the Vedic culture intermixed, an
interchange of ideas took place. Or, it well be that the so called “Aryans” who used to
occasionally drift south from there original home in Poland steppes were responsible for the
propagation of the basics of Vedic culture.
Around 3000 BC or may be earlier, the remnants of the Minoan culture and the Aryans
with their Indian exposure and their native culture brought together the tribes residing in the
Greek islands and the start of the Greek and Athenian civilization was initiated. This was the
first instance of European civilization with its own religion that emerged and contributed to
the development of mankind. It may be noted that Indian Vedic thoughts, Vedic mathematics
based on “Sulva Sutra” and Dravidian notations had reached the shore of Greece via the
middle east Witness the Syrian poet‟s praise for Indian thought in The Wonder that was India.
He has opined that before praising Greece for all developments; one should look eastward at
India.
It may well be that the spirit of the Argumentative Indians as Dr Amartya Sen propounds
had reached Greece through the Middle East through the Aryans and fired the imagination of
Socrates, his disciple Plato and his disciple Aristotle. Socrates (469-399 BC) was a sculptor, a
soldier and a philosopher who taught and led philosophic discussions. He advocated free
speech to be debated freely and consensus sought. He encouraged freethinking. His influence
over the young mind led to his death by poisoning. Was he inspired by the Indian search of
truth by debate because this element was completely missing in Greek culture? Under Plato,
his first disciple, who was a noble‟s son and wealthy (428-348 BC) widely travelled. He
established the “Academy” in Athens, which had been reconstructed by Pereicles who had
installed a government, and some order amongst the various tribal forces and the first
organised attempt for education was in place. His “Dialogues” persist today and his approach
to ethical and philosophical questions on love, on poetry, on immortality also raised question
on the rational science of the Iconican philosophy. He was mostly concerned with mind over

58
matter much like the Indian Rishis who attained this state through Yogaja Buddhi. He
propounded his ideas in Republic and framed laws, which were idealistic and utopic. The last
of the triad was Aristotle (384-322 BC) who studied under Plato, became a tutor to Alexander
of Macedonia and in 325 opened a school in Athens. With Alexander‟s death he fled Athens
and took shelter in Chalces where he died. He commented on a wide range of subjects
covering astronomy, philosophy, physics, biology, metaphysics, ethics and politics with
literary criticism. He had a wide range of publications. He also commented positively on
Yogaja Buddhi and used experience and observation as the starting point and then analysis to
seek the answer to the question. He propagated the view that God is the only real actuality and
changes in the other form bring out their potentiality, a strange similarity with the classic
Vedic teaching. He believed in the Soul and that all materials are comprised of four elements,
- earth, water, air, fire – very similar to the Indian concept of Kshiti, Ap, Teja, Marut, Bohm
(Earth, Water, Fire, Air, Vacuum). Immortality of soul was accepted and though the form or
matter perished, the soul remained and sought to project the essence of being and of peace,
order and symmetry. It is observed that this thesis influenced the Islamic thinking also.
Greece was the battlefield of many a groups, internal and external, strongly influenced by
Minoan civilization of Crete (1600-1200 BC), The Achacmians over run Greece and Crete
which led to the seize of Troy (1180 BC) followed by the invasion of Dorians in 1100 BC who
founded Sparta. During 1100-800 BC the great city states rose. Between 750-550 BC the
Greeks became great traders and the main centre for Greek culture, philosophy, science,
ballads and poetry originated. After many wars with the Persians Daraus I and Xerex,
involving the battle of Thermopolis, the political power of Athens was destroyed in fifth
century BC. The power that Socrates with Plato and other preaching teachers of Macedon
spread was followed by Alexander the Great whose military might was the crowning glory of
Greek civilization. His conquest of Egypt, Persia and conquest up to India around 340 BC are
well recorded. After his death his empire was distributed amongst generals, Seleucus, Ptolemy
and others.
Greek power had a revival with its annexation by Rome and the establishment of
Constantinople by Constantine also known as the Byzantine kingdom of great splendours and
pomp. There were, however, wars between Turks and Moores and the empire collapsed in
1460.
The contribution of Greeks in the field of science and philosophy has been already
commented upon. It was a remarkable outburst of excellence in all fields, a second awakening
after the Vedic age.
The Roman history started with the founding of Rome in 753 BC by the twins Ramos and
Romulus and grew from a small kingdom to a large empire in stages. Romans introduced great
reforms in styles of governance and introduce the concept of magistrates as administrators
under the leader who may well have only loose powers over them. Slowly but steadily, the
concept of selected democracy got hold of the population with Senate following and Athenian
civilization took hold. Roman empire expanded with the difference that the vanquished was
not put to sword but was allowed to live his own life with administrative and financial control
being taken over by the magistrate and they being granted the cherished citizenship of Rome
and the recognition that goes with it. The war of Carthage with the Phoenicians has already
being referred to and this converted Romans to seafaring nation as well and spread its powers
to all of Europe excluding Scandinavia and Russia, extending into Asia Minor, Turkey, the
north Mediterranean coast area and bordering around Persia and Turkey. It is the very size and

59
extent, which caused its downfall, with having two capitals, Rome and Constantinople in
Turkey. The European wing after the Punic war and other battles went in disrepute and folded
up in around 500 AD while the Byzantine Empire with capital to Constantinople lasted around
1500 AD and fell under the Islam impact.
Unlike Greece which exhibited an excellence in Science, Arts, Architecture, Philosophy
and some governance, Romans did not show any excellence in abstract thinking in philosophy
and pure science but concentrated on the material aspects of life, like governance, law,
revenue and taxes, structure and giving power to people. Though essentially Rome was a slave
state, the revolt of Spartacus leading the slave revolt initiated the end of the regime. However
the Roman art, architecture and most importantly the Roman law and governance were
something to be remembered for its splendour and pomp, which also set standards of
behaviour and fairness. It may be stated that Roman religion was a mixture of myth and rituals
and it was in this vacuum that Christ spread his Christianity, which was accepted as a state
religion by Constantine. It was then state sponsorship, which spread Christianity all over
Europe and even in Asia. It also set up the Papal force leading to many fights between the
Church / clergy and the Kings which deviated development.
Contemporarily with the rise of Buddhism in India, China saw the induction of
Confucianism spread by Confucius who was a respected civil servant. Confucianism preached
social behaviour and parent worship together with the responsibility of citizen towards the
society along with meritocracy. It was society centric it had a very practical approach towards
maintaining law and order and social responsibility. There was hardly any high philosophy.
Confucius believed that if the people want peace they should have to stay in peace and follow
law and order, their elders and be subservient to social norms and behaviours. Lao Tse the
other leader also contemporary preached an abstract philosophy and it has been said that
Buddhism, which had by then reached China because of Asoka‟s endeavour, Confucianism
and Lao Tse‟s preaching were the three pillars on which the Chinese civilization rests. The
continuous respect that the Chinese society offer to the civil service and its continuous
functioning throughout the ages indicates how deep-rooted Confucianism thinking prevails in
the Chinese mind irrespective of all the „isms‟ that have spread over the country from time to
time`.
The next awakening happened in India with the arrival of Adi Shankara in 700-800 AD
when he reawakened the glories of Vedic culture which had been identified by them as the
religion of the Hindus/Indian i.e., north Indian. This continued through the Gupta monarchs
when another flash of excellence was exhibited by thinkers like Aryabhatta, Barahamihir and
Bramha Gupta in areas of astronomy, mathematics and algebra and conic section. It was in
this period that Kerala School also developed the rudiments of calculus and theory of
numbers. After this era, i.e., from 300 odd AD to around 1600 AD the age of invasions started
and there was no progress in the Indian plain.
Mohammed preaching his Islamic religion in Middle East around 700 AD followed
Christianity. While he could unite the warring Arab clans, their propensity to establish an
empire led them to conquer Turkey and set up Caliphates, which spread Muslim science and
culture through state sponsorship and religious favour. Besides, the Papal power and the
Christian dominance led to the launch of several crusades wherein European powers
practicing Christianity waged war over the holy land to recover these from Islamic occupation.
That war is functioning even today in various forms over various time frames.

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 The centuries (700 to 1200 AD) went by with Muslim dominance increasing and the
Christian challenges, and with Muslim artisans and scientists developing various artefacts,
which helped them to navigate and help the development of sciences, in the area of
Philosophy and in art and culture. There was, however, marginal improvements as the war
were a regular feature.
In about 15th century AD, the European powers, English monarchy, the Spanish king and
the Dutch along with the French launched efforts sponsored by the state and rich moneyed
man owners to discover the sea routes to India because every one was eager to gain the Indian
trading rights. The result was a great expansion and have navigation discovery of new
territories. Columbus of Spain discovered the sea route to America (1492), while Vasco da
Gama discovered the sea route to India (1498). Portugal discovered Brazil and sought to
establish colonies there. Spanish conquistadors raided Mexico and sacked the Aztec kingdom
and the Incas in Peruand made Spain a very rich country as Brazil did to Portugal. With the
money flowing in from east and the new world, Europe became rich and as a result of the
relative peace then prevailing, science and various studies developed leading to Industrial
Revolution in 18th century which is continuing over since England went through the
Elizabethan age a glorious age of pomp and splendour, and the discoveries with a spurt of
philosophical thinking in Europe. Francis Bacon in England (1561-1620) Descartes in France
(1598-1650) with the growth of rational science, i.e., applied science based on rationality as
apart from pure science which confined itself to pure theory from which applied science was
supposed to emerge. In the south India during the 12th century, the Cholas and others launched
their expansion moves through sea vogues to spread Indian culture in the Far East.
In trying to analyse and pinpoint why these outbursts of excellence occurred when they did
in the process of human development, a central tendency emerge:
1) The relative peace and tranquillity must exist for the “thinking” man to be allowed to
think constructively. State of education plays a very important role.
2) Availability of wealth to spend in research and development and development of
necessary artefacts and funding leading to development of instruments;.
3) State and/ or wealthy for powerful support and protection and risk taking;
4) Last but not the least, and “Necessity is the mother of invention”
Development can also be divided into two phases pure and/or philosophical and applied and or
rational. It has been seen that pure theory usually always precedes application and that has
been the case. Besides, India and Greeks were good at abstract thinking whereas Romans and
Europe as also America were in applied thinking and its application, which follows.
With the fall of Greek and Roman Empire in stages, a vacuum developed in the European
and the Middle East which though filled in partially by the Ptolemis in Egypt and the
Parthicius nothing outstanding was achieved and these regimes also had a limited existence.
With the spread of Islam, after the initial problem facing Mohammed, the leader of Islam,
were overcome the local population of Turkey and Asia Minor were converted to Islam along
with the Mongols and other fighting races, and they defeated the remnants of Greek and
Roman empires and won over Egypt, sacked Alexandria and its famous library and Islamic
rule was established after Mohammed‟s death. The Caliphates was established and Muslim
empire spread its wing to cover Spain and the north of middle-eastern region. As already
informed, the Parthanians occupied power for a few hundred years as also other parties but the
centre of stage was held by the Muslims Ottoman Empire. During the period Islamic science
made its mark and the areas of chemistry, astronomy, body sciences developed under its

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auspicious. This was indeed a period of inventions. The Mongol and Tartars marauder broke
up the Roman Empire, captured Middle East; Turkey became powerful and India suffered
many invasions. It should be noted however the China during this period was a very powerful
state well managed and progressive but this area was also invaded by the Mongolian
marauders and China had to defend its territories and build the great wall as a defensive
measure.
The Islamic science build up a school of Al-chemists who believed in the discovery of the
“philosophers stone” which had supposedly the property to transforming base metal to Gold
but this was never found though the knowledge of chemistry progressed. The Muslim
astronomers and navigators made important discoveries to extend the realm of knowledge.
Islam also produced great many warriors and a leader who won important battles but on all
counts it were a destructive phase with pockets of knowledge expansion.

6. GENERAL COMMENTS ON CIVILIZATION

Change Agents of Civilization
History of civilization indicates that civilization grew up when cities were established and
civic consciousness and need developed and were identified and had to be met. The not too
distant cities had to develop a bond to interact and exchange ideas to identify common
problems and evolve local solutions, which were discussed. This exchange initially stated with
the exchange of surplus or special products for which skills were developed and the change
agent in this case were the traders who overcame many hardships to carry out trade between
various civilizations which developed at different regions. Witness the earliest recorded trade
amongst the Dravidians of the Indian plain with the Mesopotamian civilizations. Evidence
exists of seals of Indus Valley civilization being discovered in Mesopotamia, Sumer, Babylon,
Persian civilization and the currencies of these countries in India in the form of valuable
metals or in special artefacts of the region. Babylonian library, which escaped destruction
from the Muslim invaders, have preserved many clay slabs with script indicating the
commerce and trade existing between the two countries. It has also to be noted that the traders
did not only carry out trade but there was intermingling of population and culture. Weights
and measures which developed in India during Indus Valley civilization and earlier were
inducted by these traders as also language and religious practices to some extent to indicate
the level reached in his country of origin, Travellers, therefore, can and must be identified as a
major change agent in the propagation of civilization in the world. Trade has been going on
through the ages as indicated by the economic records and this continued for centuries with
India and China occupying the pride of place. The cultural exchange led to the adoption of
many a Indian innovation in ancient science and production methods as also ideas,
philosophical and practical and this was accomplished by the traders who left there home for
long periods, travelling on foot following the land route or by boat/ships by the sea route when
it developed, learnt the language and customs of the country to visit and then returned home
after finishing the mission. Some examples exist how in the absence of common language,
barter exchange was done. It is also noted that often members of the community settled in a
foreign land and acted as an agent and commission agent. He learned the language and
customs of the land may be set up a family to identify with the foreigners and thus became an

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intermediary of both the communities. Besides, the exchange of commodities was carried out
by the letter of credit (hundi), which was honoured because of this, link and/or seal.
As indicated, traders took great risks in these long treks, natural or otherwise, and faced
great hardships for earning the margins. With increase of volume, the lone traders gave way to
organised trading with oxen trains loaded with articles. It has been indicated that Indian goods
took about 3 to 4 months of trekking to reach Mesopotamia region and each return journey
took about a year or more. On occasions, the absence from home exceeded years with no
communication excepting the word of mouth with the start of sea borne traffic, the
transportation of goods from the Gulf of the Arabian Sea to the shores of Mediterranean from
reaching European shore would take months and may have consisted of about 600 to 800 oxen
trains. This was a regular practice. In fact, the traffic between India and Mesopotamia did
lead to the establishment of Mehrgarh in the Bolan Pass area and led to its continuous
prosperity and continuity for nearly a millennium or more. Horses not beign available were
rarely used except for regal purposes or warfare but sea-going ships increasing in size replaced
boats and capacity in which the location of India between the western continent of Africa and
England and Mesopotamia and eastern continent of China provided a great fillip. African
elephant ivory was imported from that continent in India for carving it being better suited and
dispatched to China as merchandise. Such examples were very common. Traders carried out
their trade via land route through Myanmar (Burma) to the Far East. The induction of camels
as beast of burden was yet another breakthrough which opened the African hinterland to the
Muslim traders who not only traded but also preached the message of brotherhood of Islam
and spread the process of conversion. In ancient times, Sargon in Sumer who invited ships
from far away countries to call on the Sumerian port erected ports as in Lothal in the Indus
Valley and. Trades not only carried out trade but also sponsored development of geography,
navigation and ship- handling techniques leading to development of instruments and
measuring devices and chart making, all part of civilized living and economic and social
interchange. Even as late as in the 18th century, the opium – trade and tea and coffee trade
influenced civilization during that period. Even now trade and traders continue to act as
change agents of civilization carrying culture, knowledge and commerce to countries around
the globe.
The next change agent in the order of importance would of course by the Warriors or the
army, which sought to extend its influence or command over the conquered territory. This was
exemplified during the battles sought by Sargon in Sumer when he extended his empire and
the Egyptian expansion, or the Persian expansion and the fight with Greece and its aftermath.
But the best example will be the conquest of Alexander who propagated Greek culture and
knowledge in his massive march from Greece to India by the land and the sea routes. The
exposure to Greek culture and its interaction with the Middle East, Egypt and Indian cultures
brought about a sea change in the mind-set of the different civilizations. Besides inter-
marriage and wedding of different civilizations changed the appreciation and respect for each
other. It was recorded that even Chandragupta Maurya visited Alexander and requested him to
introduce Greek administration over India before he founded the Maurya Empire with
Channakya‟s guidance. The ingress of the warriors have led to loss of life and other negative
features but the fact that such act was impacted on their civilizations and influenced future
development has to be acknowledged. Witness the culture of Spain. Being a European
country, it is so steeped with Islamic culture because of its long occupation by the Caliphates,

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that it has developed a distinct identity of its own. Such examples can be cited even today thus
ranking the warrior community a distinct change agent.
The various religious and thought leaders, on the other hand, have also acted as change
agents in so far as their attempt to preach and convert which have substantially affected many
a civilization. The Indian religious thoughts influenced the ancient Mesopotamian kingdom
and Egyptian civilization substantially as the Greek thought influenced Rome after it was
influenced by the Indian religious concepts. After the spread of Christianity and Islam, the
world civilizations were radically changed with the ingress of Christian dogma as also Islamic
brotherhood concept. In fact, the picture that one sees of the recent time is a bipolar situation
Christianity against Islam, as two opposite camps, which have been fighting with one another
since inception. The division of India is yet another example of bipolarisation based on
religion, Hindu and Muslim, and the impact that it had created on the recorded history is well-
known and so recognised while it is time that conversion has improved the sorry plights of
some but it is not an unambiguous blessing and has created many upheavals. Yet it has to be
accepted that the preachers and educators have played a major role of change agents as far as
civilization is concerned and will continue to do so until a major change in the mind-set
occurs. Regarding educators, they have played a more positive role.
The other agency, which can be identified as a change agent, is the profession of
“adventurers” although their major role has been played out, if the conquests of inter galactic
space for human habitation is not ruled out. In the first millennium end, the adventurers had a
major role to play as the route to various countries had to be found out and lost continents
identified. These adventurers either monetarily motivated or religiously cultured, marched out
to find new continents and countries and this changed the face of civilization not always for
the good. Witness the discovery of Aztec and Inca civilization and their disappearance from
the face of the earth. Witness again the role of the archaeologist adventurers who are
rediscovering the lost civilizations and thereby changing the mind-set of the people who are
receiving the message. May their work unfold many a secret and increase respect for the lost
civilizations.
Turning Points of Civilization
(for recapitulation – Short Notes)

Origin Around 1.5 to 1.0 million B.C .in Rhodesia, East Africa. Nomadic fruit-root
Nomadic gathering prehistoric man lived in small groups and moved from point to point in
search of food and water. Guttural noise, a child‟s mind, keen observers, average
age 35 years, developed leadership concept either based on experience, power or
allegiance. Marched out of Kenya in small groups, driven together by wonder
lust or adventurism. Lived on hunted meat, fish, fauna. Some tools and basic
devices like sling shots, bows and arrows were used.
Pastoral About 50.000 to 30,000 B.C. Domesticated wild animals, cattle, birds, cats etc.,
and gradually settled down and a suitable place with water and shelter, caves or
in dugouts etc. Staying at one place permitted observation of natural phenol-
Agriculture menon. Natural processes of agriculture studied by the woman and this led to
growing of seeds. Agriculture commenced. Search for fertile land commenced
and the route followed the Nile river reaching the fertile land of Mesopotamia
through which flow the rivers Tigris and Euphrates,
Metal Homo sapience, the thinking man. He learnt control of fire .sewed covering

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 Working using animal skin, made pottery-using sunrays for drying and later fire.
Developed work concepts and agricultural tools and practiced water manage-
ment. Around 5000 BC metal working started using volcanic materials. Men
had also learnt to sail over water and developed rudiments of transportation
Around 10.000 BC mini city living started in the Levant, Earliest digs revealed
Emergence settlement in Turkey (Catak Huyal), which was a sea-faring nation, which was
of City carried out sea trade. This civilization flourished for about 2000 years and was
living replaced by other tribes like Akkadians, Kessites, Elamists and Sumerians, who
fought between each other for capturing fertile land.
Sargon of Sumer established an empire, build cities, ports, adopted organisation
structures, raised an army expanded sea trade and proved to be an able leader
Sumerian. His empire covered the entire Levant though Kessites ruled in the west and
Empire ultimately defeated Sumerian and Mitanis and the Kessites played an important
role. Though Mitanis hailed from Europe near Poland, they had mastered
horsemanship, made chariots, learnt metal work, had metal armours and swords
and spears and did raid and settled in Levant. They also acted as change agent.
Sumerian had a spoken and written language which was known as Cuneiform
(Wedge language). They had an epic “The Tales of Gilgemesh” the adventure of a
famous warrior. They has their religion which was based on folklore, totems and
had accepted the concept of trinity from the Dravidians and also the fertility cult.
Long March While the Sumerian culture developed, one branch of the long marchers who
setled in Levant marched north towards Europe which was held over; because of
ice cap another branch went off west towards China across Gobi desert and then
again towards Manchuria which was a waste land following the Mammoths, and then
crossed Bering Sea which was iced over, reache4d Alaska and the US main land.
Indian Plane Yet another team marched from Levant towards west and after crossing
Hindukush through the Bolan Pass reached the Indian plane. This must have been
around 10,000 BC or before as the important digs at Mahargarh reveal. This
stream must have led to the development of the Dravidian culture now in South
India and with a written and spoken language known as the „Tamil‟.
Development While the Dravidian built their culture in the South India, the north was invaded
In the Indian by the invaders the Mitanis, who had settled down in Europe, and a mixed
Plane culture in the north Indian plane the Mitainis, who had developed the culture of
their own influenced the growth of the North Indian culture which represented
the Vedic Culture also known as Indus Valley Civilization.
Vedic Culture “Sanskrit” developed as a spoken language which has been identified as the result
of a Indo-Germanic base and signified „reconstruction‟. Philosophy
reached pristine glory, civil engineering, water management, architecture, road,
sewage treatment reached rare heights. alongside human behaviour code, Manu
developed his Sanhita defining the Chatur Varna, Chatrur Ashram, which
codified the human society.north Indians like the Mitanis had a rich spoken
language but lacked a written script. Indus Valley developed a script which
remains undeciphered to date. Around 2500 – 1000 BC the great epic Ramayana
and Mahabharata were written in Dev Nagri following the Vedas, Upanishads,
Brahmanas culminating in Bhagavat Gita. Hinduism became a great religion, but
this fell into disrepute with the oppression of Bhramhans over the lower castes,

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 and this led to a social revolution led by Buddha and the spread of Buddhism in
around 700 BC. Ashoka the King of Kings of the Maurya dynasty ruled around
400 BC and spread Buddhism far and wide and was an enlightened leader .
Europe With the collapse of Summer, Babylonia developed and ruled for around 2000
centuries 3000 BC to 1500 BC and built great structures, Libraries etc. But it gave the
leadership to Greece which became the leading state in Europe with great success
in literature, sea trade, warfare, science and archaeology, astronomy. The leaders
of Greece were Socrates, the Philosopher, Plato the rationalist, Aristotle the great
thinker, and Alexander the great, military leader. It was Alexander great march to
India, which initiated Indo-Hellenic Cultural Revolution, which changed the
social structure. Roman civilization followed with the collapse of Greek and this
can be considered as the apex of European civilization before Jesus Christ‟s
advent.
Africa Egyptian civilization with its religion. language, written script, different from
Cuneiform was deciphered and yielded a lot of information. This script was
Hieroglyphic and was both picture and symbol based. Egyptian civilization still
persists in different forms with rises and falls with their Pyramids, massive
sculptures etc. of bygone days.
Trade It should be noted that trade between India and Middle East and Africa was a
ongoing concern both through land routes and by sea and this became a powerful
change agent.. China had also joined in trade via India, India had a growing ship
building industry at locations near present day Mumbai, Goa, Gujarat, Madras,
Balasore in Orissa and Tamluk in Bengal. Ships owned by Indian traders were
plied by non-hindu to whom voyage was a taboo. India was well known for its
textile of all forms, handicrafts, gems and jewel artefacts besides wood, minerals
and natural resources. China earned renown for Lapis Lazuli, screen painting,
wall hangings, and silk textile. Trade for raw material sources led to competition,
cost control, competitive pricing and to the concept of credit and currency. India
insisted on been paid in Gold and Silver and thus caused difficulties, but trade
went on unrestricted. Since Egypt, Greece, and Rome were rich countries, India
and China carried out roaring trade with these areas. Chanakya (Kautilya) writing
has famous „Artha Shastra‟ spelling out the rules of governance and trade and
was an economic masterpiece.
Rise of Roman Empire though large and endowed with great success to the areas of
Jesus urban reform, selected democracy, rules and laws of governance and urbanisation
Christ was essentially based on slavery, which led to discontent and social uprisings.
Spartans led the opposition, which the roman army crushed. About the same time
Jesus Christ of Nazareth started prevailing his Kingdom of God concept and
propagated the tenets of Christianity. He was crucified but his disciples, Peter,
Paul, Mathew and others were successful in. spreading Christianity. After about
600 years, a new prophet arrived in the scene, Mohammed in the Middle East
and spread the gospel of Islam. The Roman Empire collapsed and Muslim rule
took over. This millennium was known as the “Dark Age” though the Moslems
brought in Moslem governance in the form of governance, science and the
opening of Africa.

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 Christianity transformed Europe after the Roman Emperor accepted it as state
religion. Its propagation helped the consolidation of Britain, Germany, France
and other European nations as all belonged to the common church though of
different denomination.
Though Nationalism was the driving force, each country developed in its own
way and competed with each other with shared agricultural base. Great Britain
developed weaving skills, France on using its natural resources and Germany in
exports of mining products and unifying its various elements. England being an
island developed shipping and navigational skills on the lines of the
Scandinavian Vikings and established kingship and constitution. It was a great
Law making and abiding notion with its own army, navy and sea trade. France
specialised in culture and industry whereas Germany in industry using its mineral
wealth. Italy after the fall of the Roman Empire and the establishment of Papal
state in Vatican revelled in economic and cultural areas thru the setting up
various small principalities which competed with each other and ushered in the
process of renaissance, regeneration, as it where, literature, art, science, culture,
architecture, entertainment which all flourished. Education was widely spread
out. Knowledge, which was a privilege of the church, was liberated from the
shackles of the priesthood. The Renaissance energised the innovative spirit and
spread out from Italy to all over Europe This was supported by the wealth
generated by sea trade between England, Spain, Portugal and the Dutch, Wealth
of Asia, India and China was the main attraction to which was added the wealth
of Incas of Peru and Aztecs of Mexico and that of Africa. All these led to a sharp
increase of demand and search for power and machinery development leading to
the Industrial Revolution of the 16th-18th century, first in England and then all
over Europe.
China, which was a very wealthy country, remains aloof because of geography.
It was ruled by several generations of princes/dynasties e.g., Ming Dynasty etc,
with highs and lows of success and was famous for its bureaucracy, love for
education, a consistent team of civil servants, social awareness, its own culture
and trade through India as a transhipment point to the Middle East to Europe.
Silk printing and painting speciality, good at sea trader. Contact with India
brought Buddhism. Confucius and Lao Tse, practical ground based religion.
Respect for elders, parent worship, social forms etc. Had agricultural ups and
downs but exerted its influence in the Far East region like Korea, Japan, Taiwan,
Thailand and Sumatra etc. Exchange of missionaries Hue En Shan, Fa Hien etc.
In the end of the first millennium America was discovered. Whereas the
mainland was ruled by Martial race “Red Indian” and was potentially rich. The
real wealth was with the Aztecs in Mexico and Incas of Peru and Spain and
Portugal plundered these countries and carried gold and silver, shiploads of it, to
Europe thus hastening the Industrial Revolution. To this was added American
silver at a later date. Both Inca and Aztec civilization were rich and mature
civilization with its own script language, music and religion. They were Sun
worshipers. The Civilization collapsed after the European attacks.
Industrial Industrial Revolution transformed the world. What had been achieved over the

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Revolution four centuries 16th – 20th is represented by the technological progress achieved.
Though there were wars and conflicts, the main growth fuelled by technology
Literature, and innovation affected the world order as never before. The mastery of sea
Fine arts, trade, the establishment of colonies, the creation of wealth and the rise of USA
Culture and Japan were the major turning points leading to the present configuration. The
rise of Russia in Europe, the search of resources, the ever-rising demand, all
Colonisation went to increase tension resulting in the rise of oppressed/poor since the slave
World based/serfdom base had been destroyed and abolished by law. Ideal ground for
Economy communism.
The First World War in 1914-1918 resulted because of these increased tensions
and extension of need of more and more resource need. This devastating war
between Germans and European powers and the sufferings led to the
establishment of League of Nations which was supposed to ease tensions and
prevent wars by discussion. This failed and yet another devastating war – Second
World War started again between Germany and its allies and European countries
Neclear War and its allies. It was fought over territorial rights and caused devastation all
Decolonisation around and also atomic destruction in part of Japan and its military collapse.
After the fall of Roman power the vacuum was filled in Middle East as it were
by the Muslim power, which established sultanates and ruled over the entire
Middle East, African border along Mediterranean, Egypt and even Spain for
some period. This was a turbulent period but produced a great bust of creativity.
The Muslim power captured India and set up the Pathan and Mughal dynasties in
India, which filled in the vacuum that existed after the Hindu period in the north
and south of India. The British, French then started colonising India and it
became a colony of British, which added to its wealth and prosperity. These
colonies were all freed after the Second World War with India‟s fight for
independence non-violent under Mahatma Gandhi succeeded with him as martyr.
Of course Netaji Subhas Chandra Bose‟s INA movement helped the freedom
struggle.

World The League of Nations was replaced by United Nations in a different form with
Organisatin much more power and has been successful in localising conflicts. It has set up
various agencies some under its control, some independent like W.H.O., WTO,
which tackles various problems and try for their resolution. Besides rising
countries like India, China, Brazil etc have started playing a major role and the
power and influence of USA has been greatly curtailed. In fact BRIC (Brazil,
Russia, India China) countries are now a powerful block. Nations‟ attempt for a
non-aligned group of nations India, Egypt, Indonesia etc have also lost much of
its relevance because of the fall of Russia, the head of the communist block and
the loss of power of the capitalist USA in the recent economic recession.
However, China though a communist nation of a modified form continues to rise
in powers both militarily and economically.
United States of America was a British and other European countries‟ colony
after its discovery and ended up as a multi-ethical and multi-religious state with
great potential and drive. It occupied the leadership position after the Second
World War and in spite of the economic recessions is still the world leader

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 though the fight between the Muslim fundamentalist and terror group is still
being waged.
India after gaining freedom was partitioned into Pakistan and India and this has
remained a perpetual problem. Besides Kashmir the communal question refused
to settle down. Yet since 1990 economic picture is improving and the latest
election has led to a stable government, which is determined to win the battle.
China China on the other hand lost its leadership and became a disjointed country in the
1930‟s before Sun Yat-sen took over. After his death, Chiang Kai-shek, the
General of the Army took over country and set up a National Assembly.
However, Communist party under Mao Zse-Dung carried out a relentless
opposition. Though driven out by the army during the South Long March, his
group ultimately succeeded to drive out Chian Kai-shek from the mainland to
take shelter in Taiwan and set up a new government, which still exists. It should
be noted that China was never subjugated but was once taken over by the
Mongols for a short period till they were driven out. China went through severe
crisis when British who grew poppy in India and exported it to China through
Hong Kong started the opium war. Mao Tse-Dung carried out many reforms.
“Let the thousand flowers bloom” and shifted population randomly, abolished
human rights, which led to Tien Mien Square firing and world protest. After his
death in Zhou Enlai took over the Premiership and new politics, adopted mixed
economy but with strong central leadership and local members‟ active
participation. It has become an economic giant and a power to reckon with.
Science The search for a proper system continues. The management of wealth created
Philosophy capitalism. Its ills created socialism, which led to communism. India opted for
mixed economy. China has succeeded in adopting mixed economy with strict
party control and is growing at a faster pace than India which is much more
democratic with personal freedom. The search for peace is unending and will
remain so till men transform himself and saves himself from the basic bad
instincts like greed, Jealousy, covetedness, untruthful etc. And that is the area,
Trade Pacts which has been greatly neglected. All efforts have been to improve the left side
of the brain, the analytical and not the right side of the brain, which is
intellectual, innovative and fit for abstractive thinking. Till the base instincts are
overcome, controlled and kept in check, there seems to be no answer available.
That was the Indian way and that might be the ultimate solution. Transform the
man, live in peace, coexist, have mutual respect, don‟t covet, control basic
instincts and live in peace with all.
Colonisation and Its Impact
The principle actors in the growth of civilization have been identified as the trader, the
soldier, the adventurer and the priest. Trading has been as old as mankind and provided the
urge to spread information and establish communication between centres of common belief. It
is fascinating to note how without a common language and without a common script, contact
was established not only in the early years but even at later stage when African tribes were
contracted, how sign or body language was used and contacts were established. As indicated
earlier, the expansion of trade and suzerainty necessitated at times the intervention of soldiers
who carved a pioneering role. The hunt for new resources led to the development of trade

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routes, initially over land followed by sea-routes and later by air leading to the process of
globalisation, which was initiated in the early days of civilizations and recorded in the clay
tablets preserved in the Babylonian/Alexandria collections. Trade posts were established
between India and the Mesopotamian region and sea trade was carried out in the
Mediterranean region as evidenced in Minoan and Catal Huyuk regimes. The concept of
colonisation developed later when these trading posts were sought to be independent and
called for some armed intervention for obtaining charter from these countries to permit to do
business. Portugal was the lead country in this regard with small settlements in the West coast
of Africa with sea connections and these later developed as colonies. Similar was the attempt
to do business in India initiated by the Portuguese which led to the development of small
establishments, later by the French, the British, the Dutch and the like which with the downfall
of the Mogul rule led the British to conquer India and established a most prosperous colony.
As it was said, the brightest jewel in the British crown. While Portugal was busy with African
colonising several settlement in west coast, British with the discovery of the Americas, set up
establishments in the east coast of North America and in Canada. Spain and Portugal launched
colonisation drive in the Mexico and Peru in South America and Portugal went to Brazil
launching colonisation of the east of South America. In Mexico, west coast of America with
the defeat of the Aztec empire in the country by Spain encouraged it to colonise Peru ruled by
Incas which was on the west coast of south America by defeating the Inca king and started
sending to Spain hordes of gold and silver and other wealth which changed the economy of
Europe. Portugal colonised Brazil and spread its own culture after plundering.
Colony means an expression of suzerainty over the area with as much as possible
responsibility of local administration. It is by this process that far off land was captured/
conquered and this led to the transfer and transfusion of cultural, governance and military
might of the coloniser, mostly countries in Europe and effected the local government in
Africa, India, Far East and of course the Americas. These was however a major difference.
The North America and Canada started as a settlement of the British and the French, where
the population of the mother country Britain and France started respectively to settle their
growing establishment and thus established a colony. In India, however, the British captured
the country by waging war and did not settle their population excepting that people were sent
to govern the country and transfer the wealth as and when required. British colonisation of
India thus had many positive affects. It united the contrary as one unit, it introduced reforms
both in governance and in law and order and significantly the spread of education by the
introduction of English language, as advised by McCauley, primarily to meet the need for
clerical staff, and opened up the doors of knowledge and European thoughts. French also
followed but Duplex‟s plan failed because the French leaders in France were so absorbed and
occupied with their pan-France suzerainty campaign over Europe, that Duplex‟s plans were
ignored. Duplex was left in the lurch and British won the day.
In Africa, Portugal did not usher any plans to improve the culture of the country and had
no plans to educate the masses. The colonies were treated as sources of labour/ slave and
material supply, which was plentiful to add to the coffer of the state. It is to be noted that these
colonies in Africa set up by France, British, Dutch, Portugal, Spain and Germany. Belgium
had uneven progress and served as supply sources under harsh administrations mostly. French
had archived some enlightenment in Algeria, Morocco etc. The British fought and lost the
Boer war with the Dutch and then recaptured the South Africa, which prospered under the
Dutch and has ended up as a Republic after proclaiming apartheid. Mahatma Gandhi was

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directly responsible for the civil disobedience movement in South Africa having launched his
non-violence struggle against apartheid. Morocco Algeria etc are all French speaking
countries with major intake of French culture as also in Canada. Quebec, a province in Canada
is French speaking and maintains a special relationship with France. In India also Pondicherry
and Chandannagar maintain French heritage as Goa maintains Portuguese heritage. In
America, the countries of Mexico which was influenced by Spanish conquest have absorbed
and assimilated Spanish language and culture as in Argentina, Peru and other countries like
Panama, Honduras etc and Brazil with Portugal, and the language has been a great cementing
factor. In fact, a large proportion of the population in America still retain their Spanish
heritage. In the case of India, it was the European scholars, mostly, British and German, who
rediscovered and revived the intellectual wealth of India‟s glorious past as depicted in Prof. A.
L. Basham‟s “The Wonder that was India”.
On the whole, colonisation assisted both positively and negatively, the progress of
civilization through the world more of the former than latter. Language spread, culture spread
and respect for other cultural wealth became an accepted fact. This itself sought to establish
the theme “Basudhaiva kutumbakam”. „The world is one family‟.
Besides the spread of language and culture, religion was yet another facet, which got a
boost with colonisation with mixed result. The local religion and practices were often brutally
crashed and replaced by the coloniser„s religion leading to great damage to civilization and its
history of growth. In some cases however, new religion was started to be responsible for
improvement but nobody has worked out the cost.
The transfer of technology as happened in undivided India was however a positive aspect
of colonisation in spite of many negative trends. This is apparent when decolonisation exposed
the sad state of affairs in the colonies of Africa and Australia and some colonies of the Dutch
and France. This has to be recognised as Indians and Pakistanies were ready to take up the
reign of governance.
With the growth of sea trade and the increasing ability for sea faring, the balance of world
power changed drastically in favour of sea-faring nations in the turn of the first millennium
AD. Mastery over sea started with the Minoan and Phoenician civilizations in the
Mediterranean and even earlier with the Sumerian kingdom and the establishment of port in
India, Middle East and Africa to support trade and commerce between these civilisations. The
Islamic republics contributed greatly to the mastery over the sea by extending the knowledge
of navigation and measuring devices including instruments, which led to the growth of
maritime trade and knowledge of geography. At the turn of the first millennium, the sea routes
to India and the newly discovered New World were established leading to a major shift in the
balance of power and expression of Spheres of control. Spain, Portugal, Danish and England
were the leaders in Europe wherein adventurers were encouraged by the traders and rulers to
discover new worlds and routes to expand trade and wealth. The idea of colonisation had not
crystallised by then. Portugal controlled the trade with Africa and its ports in the western sea
route to India and Spain in funding out the new world. Columbus discovered America for
Spain closely followed by the Portuguese who found out the sea route to India. The France
who set up trading ports on the Indian continent closely followed this by England and the
Dutch. The new world being a virgin country was open for setting up trading ports and this
was done by the trading groups both in Canada and the America by the France and British as
Spain and Portugal squandered the Inca and Aztec civilizations and returned to their mother

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countries with immense loads of precious metals, gold and silver and other riches after
defeating these nations in open warfare.
The process in India was somewhat different. British, French, Portuguese and Dutch all
set up several trading ports after seeking sanction form the local rulers, the remnant of the
Moghals or their representatives and expanded their trade, there being enough scope for all.
With time, however, thoughts changed and competition set in amongst the traders. With better
support from the principles the East Indian Company registered in Great Britain and chartered
by Queen Elizabeth won the tussle and as put in expression “The trading wand overnight
transformed to ruling wand” („Baniker mandanda‟ poale sarvari dekha dilo Raj-danda rupe)
in India and the East India Company was able to establish its control over the administration
of India with a great deal of chicanary and conquest. It also to plundered the wealth of India
and shipped this loot to England to increase its profits and also the meet the expenses of the
Napoleonic war as also created “Nabobs”, a wealthy class of men who profited in the course
of these transitions. It was not that there was relation. The oppression led to the great Sepoy
Mutiny of 1857, which made the British government take over the governance of India from
the company and convert India into a British Colony. Thus was initiated the concept of
colonisation which was followed in Canada by France, by the Dutch in Indo-China, the French
in Cambodia, Belgium in Africa, Congo and Dutch in South Africa, In fact, all over the world
power could be taken over by the European states. The result was a massive looting of
properties and shifting of population with the growth of colonial supervisory service and
shifting of resources. All the European countries were interested in having colonies and that
became the order of the day with the exception of America where the local immigrants from
UK protested against unfair taxation and revolted and proclaimed their freedom thus founding
the Unites States of America. The Colonial rule all over the world continued up to the middle
of 20th century, about 200 years, and ended with the granting of independence to India
followed by the independence of Indo-China, Indonesia, and Cambodia etc. Not that
colonialism was totally exploitive or cruel. In some cases; in India, the concept of one country
was cultivated in spite of its diversity, educated middle class was formed and administrative
network improved but such was not the case elsewhere. It has been recorded that when France
gave up its colonies in Africa, there was hardly any local person to take over charge and
United Nations had to step in. But the fact remains Colonialism was finished and done with
and Indian freedom struggle had a lot to do with its demise.
In the odd 200 years or so, colonialism had influenced civilization in a big way. It spread
culture, education, governance, health concerns alongside oppression, looting, corruption, not
that it did not existed exist earlier and led to national awakening which led to its demise as a
system of governance.
It may be noted that Colonisation involves all the four change agents of civilization and
hence it is a constituent part of the growth of civilisation. It has changed in content but has left
its indelible footprint and has to be so recognised.

7. SPECIAL COMMENTS AND SHORT NOTES

Critique of Civilization
The issue can also be viewed in a different angle. Is this development? Whereas the
applied science has grown exponentially and in the last 200 years has surpassed the

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development in the last 20,000 years the search for peace and tranquillity. The later in fact has
reduced to a great extent. The absence of ethical standards and development of the spiritual
aspect of man/human has been badly neglected with disastrous results. All thinking men must
be aware of the consequences of the uneven growth and the unbalances that result.
On the one hand, the inexorable growth of technology and science has bestowed on
humanity powers, which he could not even dreamt of, and prosperity, which is outstanding.
On the other hand, has this power and prosperity yielded the deserved result! The present
generation are debating this issue. Man has two major components in his life, the material
component that strive for power and prosperity and the spiritual component, which strive for
peace and tranquillity in communion with God. It has become apparent that while in the
former area progress has been recorded through increased urbanisation and uncontrolled use
of energy, this growth has surfaced many a problem in areas of health, hygiene, food storage
as also lack of real development all-round including maldistribution and wrong administration.
The lack of spiritual balance has led to the loss of peace, of containment, of content and of the
real values of life in spite of the fact the laws and ethical considerations are now being
recognised as important phases of administration. Will Earth and its abundant resources ever
recover? Will man ever learn to live in harmony with nature, which is his great friend? Will
man coexist with other forms of life or will it continue to be the greatest killer, the nastiest
marauder and spoiler who ever resided in the earth and its bounties of nature! Time has now
come to draw up the balance sheet and act appropriately. Ozone hole, warming of earth,
climate change, increase of new diseases, loss of basic happiness and lack of introspection are
areas of concern and only time can tell what the ultimate fate will be and this development
essentially created by this drive for so called civilization.

Notes on Governance and Society

Nomadic Stage Leadership rested on strength cum experience. Succession was on the
basis of improved acceptance. Consensus Group leadership to Clan
leadership. Emergence of medicine man, Shamans, nature worships.
Hereditary kingship follows.

Pastoral Stage Village, hamlets, cities – social organization – Temple concept of God
Heads, Priesthood appropriation emergence of Kingship, Sumer
civilization, as an example
1 st Catal Huyuk, Mesopotamia, Kingship-Priesthood combine, Kings given
divine heritage and power – Egypt, Pharaoh and Amon Priest, Babylon.
In India hereditary kingship assisted by Brahmin Prime Minister
2 nd Development of religion – India, Vedic Culture, Rishi, Chatur Varna
and Chatur Ashram concept, Law and order, Nagar Pal, Code of
Conduct, Hammurabee‟s Code, Social services, Civic Codes, Kings as
judge. Egyptian Code of Behaviour
3 rd Refinement of language, Sanskrit, Veda compiled along with
Upanishads, Brahmans, Start of structured civilization.

Civilization Kingship assisted by Brahmans in India and priests in Egypt. Divine

power to king claiming as “Son of God” Hinduism, Buddha, Ashok.

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 Greece challenged the concept of kingship and induced debate based on
logic. Academic and Intellectual content. Selected leader by consensus
and by restricted democracy through selected voting population. –
Wealthy and Intellectual and positin in society.
Rome introduced concept of magistrate, elected and selected for a term
for administration and expanded this concept. Debate in established
Senate and decentralizing administration, planning and control. The
concept of Roman land laws and Roman citizenship besides the practice
of absorption rather than annihilation of the conquered were
outstanding features. The urbanization process, roads, bridges, office
blocks etc This system was, however, tied with kingship now known as
Emperor. The role played by slavery a feature of all civilizations of the
day was greatly reduced through the slave rising led by Spartacus,
which was crushed. Vax Popuii was being recognised.
A great many kingdoms were formed and demolished with rapid rise
and fall of various civilizations during the induction of Christianity.
With the ingress of Islam, however, the concept of absolute power to
the king or Ruler increased with the Caliphates. During the barbarian
age, that followed, Huns, Moguls, and Barbarians, who with constant
invasions upset many an established institutions. The tendency to set up
Dictatorial powers was gradually introduced in line with the concept of
absolute leader.
The Papal institution was installed and that through selected choice and
after the great search but the political set up continued with hereditary
kings in India, England, Germany and France till the French
Revolution.
Changes in the Societal Setting – French Revolution abolished
Kingship in France with the key words “Liberty, Equality, Fraternity”.
But Napoleon once again became Emperor with his progeny though for
a short period. In England, the ruling school of knights ruled headed by
the King. In Russia and Germany monarchy ruled though the power in
England was shared and in all the nations law was enforced with justice
in place. England was the first country to abolish slavery and sharing
power with the people by installing the House of Lords and House of
Commons.
Isms After the experience in France, American rose in revolt against the
British, which had colonized America and declared its independence.
England had also established Parliament and a system of Government
with constitutional monarchy and had also embraced Democracy, which
became the order of the day excepting for the rise of Kiser Wilhelm in
Germany who fought out World War I and then Hitler and Mussolini in
Germany and Italy respectively fought out World War II. Emperor
Hirohito in Japan who was an absolute monarch and considered himself
as the son of Sun God though Japan had a parliamentary system
installed also was defeated and Japan went through a radical change.

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Autocracy, As stated, Kingship at times led to absolute monarchy and oppression till
Democracy, UK installed constitutional monarch and the French Revolution
Dictatorship, replaced this system with an empowered parliamentary system selected
Capitalism. not by a special group but by open democracy as distinct from Greece
Socialism, & or Rome. While Dictatorship surfaced at times, other political “isms”
Communism surfaced like „Capitalism‟ Communism which captured power in the
time of Industrial Revolution when funds/capital. for manufacturing,
research, development and growth were required and thus the money
providers, capitalists, gained power in society. This led to oppression of the
labour force, i.e. the capitalists strived for more profits. This developed the
school of thought led by the Fabian Society of UK that „Socialism‟ is the
answer and the state must see to the equitable distribution of wealth viewing
society as a whole. Thinking in UK was influeced by this development.
Karl Marx in his Communist Manifesto raised the issue of the central role of
man in production and economy and preached communism which
maintained that the State should own all production and distribution avenues
so that State decided to decides who and how much the returns and
distributed.
Basically capitalism was profit driven and the interest of the moneybag was
paramount. Socialism sought to control the distribution of wealth equitably
while Communism sought total control of investment, production and
distribution, the total economic process literally ignoring human concern,
which they felt, was taken care of by the party, which represented the
people. Russian experiment failed as also the Cuba and the China.
Russian Revolution against the Czar gave Lenin the opportunity to adopt
and implement this system in Russia with great fanfare and hope amongst
the proletariats, intellectuals and labour. That experiment failed because of
basic defects in implementation in Russia. China adopted Communism
defeating Kuomintang led by Chiang Kai-shek a protégée of Sun Yet-sen
(1866-1925) but Mao Ze Dong‟s leadership also fell into disrepute and the
present leadership is trying a novel experiment of merging the positive part
of Capitalism to the positive features of Communism and the experiment in
on. In India, which after gaining independence chooses to have, a secular
society also chose the path of mixed economy with the best of socialism and
capitalism. The experiment is on and China has followed this path with
success maintaining central control. .

Style of Government and Planning Mechanism

The various forms of government have been commented upon. These have developed and
have worked to achieve peaceful growth of society and civilization. Aware of the basic
negative instincts of the humans like greed, anger, deceit etc, the leaders of the society laid
down codified laws covering behaviour norms as indicated in the ancient times which were
clarified by the Greek civilization which encouraged rational thinking, free argument, and
development of consensus. As indicated, Indian civilization had debated this issue and the
conclusions arising recorded in Manu Samhita had reached Greece through the Middle East
and this ultimately led to the development of limited selected democracy and choosing of

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administrator as practiced by Roman civilisation. In India, the King, a kshatriya, was always
hereditary selected but was endorsed by the people and was advised by a learned Brahmin
prime minister. The King considered himself as a server of the people. It was felt that King
having everything that he could possibly crave for would be devoid of greed and other basic
negative tracts and would be a devoted ruler. This concept was widely accepted and led to the
concept of Rama Rajya a kingdom living in peace, tranquillity and prosperity devoid of crime
and conflict. Though this was a credo, as a matter of abundant precaution, the need for police,
nagarpal for monitoring was also recognised and implemented.
As civilization grew, its complexity also increased specially in the economic field and
disparity between the high, the rich, and the low, the poor, widened leading to increase of
tensions. The growth of trading and larger markets and demand had led to development of
capitalists and consumer class and an economic divide; the have and the have-nots. The
leaders of the society in their strive to reduce the gap considered socialism as away out and
focussed on distribution rather than on production as in Capitalism. In the process of creating
implementation agency, both Democracy and Dictatorship flourished side by side. The growth
of Socialism led to the growth of Communism which was practised in Russia, Cuba and in
some other countries where the State took over all the assets of the nation, the process of
nomination through the elected body and controlled both production and distribution for
equitable and balanced consumption, whereas Socialism had state control only over
distribution, and commercialism. Where as America and Japan continued with market
economy with Japan under better control, USA with open market economy suffered a
depression after World War I. John Maynard Keynes hypothesised his theory of controlled
financing for removing depression and both UK and America under Roosevelt, adopted this
policy and with state financing revived US economy after an intense period of suffering. UK
shifted between Labour Liberal and Conservative governments with reducing degree of
government intervention in economic matters respectively. Russia on the other hand adopted
central planning mechanism and went in for massive state intervention and framing and
launching of five-year plan. India under Jawaharlal Nehru‟s Prime Ministership, under the
advice of Prof. P. C. Mahalanobis well-known statistician adopted this route though the path
was that of a socialist economy. India‟s government changed from Congress to opposition
Bharatiya Janata Party (BJP) and others. Congress was to act in opposition to and then
coalition, but the planning mechanism remained the same with loosening of control over
economic matter from 1990s, under the Prime Ministership of Narashimha Rao and Finance
Minister Dr. Manmohan Singh the present Prime Minister. India has now adopted the mixed-
economy path, of control with freedom to decide in increasing free economy. There has been a
definite improvement in the economic situation but the gap between the haves and have-nots
have increased and inflation has grown causing concern. To add to the trouble, the world
economy has collapsed and serious concerns are being faced.
[Refer Chronological Table in the Appendix]

Wars and their Effects on Civilization

The history of civilization is repeted with frequent wars and conflicts of various intensity
and for various reasons. The recorded history indicates that the initial conflicts were primarily
due to the desire to possess fertile land to support the increasing population of the clan as was
the case in the Mesopotamian reason in the 6000-5000 BC which ultimately led to various
wars between the “Elamites” and the Babylonians, the maurading tribes, “Mitani” and the

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Akkadians till Sargon established an empire in the region by conquering the various small
kingships established a government which ruled the region. He had an army, a system of
government to control both political and economic affairs and concentrated on trade and
commerce with neighbouring countries through the sea routes. Babylonians had also set up an
Empire and ruled over the area with importance given to law and justice, “Hammurabee
code”, and large structures and buildings.
Evidence of wars is met with in Indian history where Ram from Ayojdha fought a longish
war with Ravana for abducting Sita, his wife, by marching from north India to the tip of South
India gathering an army from Kiskindya and defeated Ravana and put the rival and glorious
civilization of Lanka to torch. This war is fought to set right a wrong and had no economic
and/or political motive. A few centuries later before Christ, the great battle of Mahabharata
was fought between Kauravas and the Pandavas and their representatives for political reasons
and led to the devastation of the Indian polity from which India took centuries to recover. It is
to be noted that India who ruled by several princes who joined the opposing forces to fight out
the battle at Kurukshetra and literally all of India was at war with devastation and death
widespread and debilitating.
The roaming tribes of the ancient Europe, the Mitanis also known as Aryans had mastered
the wild horse and developed carriages on wheels and made lightening trips to marches
through the countries in Levant after attacking Greece on the way, and spreading havoc as also
their culture en route. This was a purely invading mission. The war between Mesopotamian
countries has been mentioned and these were mostly attempts to expand territory under
control and establish some form of suzerainty.
. War to established suzerainty, however, took shape in India through the “Horse Sacrifice
cult” (Ashyamedha Jangya) wherein the leader let loose a horse and allowed it to roam free
through a country in the path accepting his suzerainty unchallenging and when challenged a
war was fought to determine the winner. It was the king who carried out such a ritual, lay and
King Ram‟s sons and carried out and in Mahabharata it was by the Pandavas. These wars were
fought for establishing suzerainty.
In Europe, there were constant skirmishes between the different groups in Greece, which
were fought primarily for trade, and economic reasons around the Mediterranean. Such wars
were fought between the Minoans and the Catal Huyuk people and the Greeks, all sea fairing
people for economic reasons. In the northern Europe, the villages of the Scandinavian
countries used to plunder the British Islanders and Europe to gain wealth and sometimes even
women folk. More ever, Alexander the Great launched successfully his march to India across
the continents and that was a trail blazing effort. It was carried out over land and sea.
Suzerainty was the prime motive for Ashoka‟s war on Kalinga, which was a powerful and
wealthy state, and Ashoka conquered it to extend his power base. The devastation was so
complete and brutal that Ashoka abjured war and violence and became a devote Buddhist and
spread his gospel of peace based on Buddhism all over the world.
The war of the North and South of Egypt was more for political reasons and for merger
and unification of power and this transformed Egypt into a great power which positively
influenced civilization of the period. With the rise of the Romans, the entire Europe that was
ruled by warring chieftains were subjugated and larger nations such as Britain, France and
Germany were formed, and maintained their statehood. Rome, however, fought a gruelling sea
battle with the Phoneicians situated in the southern shores of Mediterranean and that wear
“Pumic War” went on for years with Rome losing territory under Hannibal‟s attack and

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ultimately the Phoneticians loosing the sea battle and ultimately to face devastation. This was
sheer political to establish the Roman might. Rome then conquered Greece who had ably
fought of the Persian attack on Europe and conquered this country and established another
capital in Constantinople near Turkey to control its much-extended territory, which made
history.
With the fall of Roman Empire in Europe, the Byzantine Empire in Constantinople ruled
for another few centuries and then fell to the Muslim invasion. Rome had by then accepted
Christianity and the series of crusades was between the Christians and the Muslims for
religious reasons.
After the fall of Rome, the remnant of their rule remained in Alexandria but that was an
Egyptian edition of the Romans. Even this regime was conquered by the Muslim invasion
launched by the Caliphates and this spread down the south coast of Mediterranean extended
through Africa to Spain and even influenced Portugal after conquering Egypt. This was a
massive empire and opened up Africa to trade and alien religions. It should be noted that
religious conversion became yet another reason for war and this have continued even today
starting from the conquest of India by the Pathans and Moguls and in Africa down the Niles
and spreading to central Africa which they opened up to spread the gospels of Koran and
Islam.
Yet another area of conflict emerged with the discovery of the sea-lanes, which carried out
lucrative trade between Europe and Africa, Asia and America by Spain, Portugal, Dutch,
French, and England. Portugal concentrated on African coast and found the sea route to India.
Britain and French followed suit and established outposts in India but it was Britain, which
won the race after the fall of Mogul Empire to establish British colony in India. France was
more interested in extending its control over Europe and hence there was constant war with
England, Germany and then Russia. Portugal opened out Africa and Spain and Portugal as
also England established colonies in Americas along with France. The Spanish conquest in
Mexico and the fall of Aztec empire as also the vanquishing of Incas in Peru gave them huge
quantity of gold and silver, which was shipped to Europe and added to the state wealth.
England established colonies in north America as also Canada along with French. England lost
out to the British colonists who had hailed from England in the war and America declared
independence. This was a pure political war as also that in Canada. In the naval war Spain and
Portugal lost out to Britain and became weak force. France faced yet another kind of war, a
revolution of the downtrodden which was termed „The French Revolution‟, seeking both
economic and political change. This uprising was followed after a few years by the
Napoleonic war during which Napoleon had seized power, was driven by his desire to extend
France‟s suzerainty over Europe and conducted a major war. Though he won it at the initial
wars showing great skill as a military leader but had to withdraw from the Russian front and
then lost the land battle in Waterloo and the naval battle in Trafalgar. He was banished and
France was converted into a Republic. In America, Brazil won its freedom from the Portugal
in the mid-nineteenth century and formed a Republic.
America and Canada now held the centre stage. Meanwhile the Chinese discovery of
Gunpowder and the Industrial Revolution in Europe had completely changed the character of
warfare. The causalities were very large and so also was the damage to the natural
surroundings and to the sea-lanes. French has supported the American war of independence
and France had granted independence to its French Canadian colony. These two states became
great powers both economically and politically. The dream of France ruling over Europe was

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put in hold after Napoleon‟s banishment but it was now the dream of Germany to rule over
Europe and it built up its military might and after some local conquest declared war against
France and Great Britain and this resulted in the First World War in 1914, a war which was
spread over four years, and was stated to be the last war – the war to end all wars - so great
was the casualty figures and the extend of damage to the environment. Though Germany
accepted defeat but the spirit of re emergency once again arose and under Adolf Hitler who
propagated Nazism – a national party and with the alliance of Mussolini of Italy, leader of the
Fascist Party, Germany and Italy declared war against the allied powers of England, France
and some other nations and this started the Second World War in which the massacre was far
extended, and war was fought not only on land but also in air and in sea. It was a total war in
which America also joined at a later stage when Japan attacked Pearl Harbour in Hawaii and
incapacitated the Pacific fleet. This war also went on for almost five years and ended with the
atom bombing of Japan. Since then there have been no major war but during the first and
second World wars there has been revolutions in Russia where the Bolsheviks took power
removing Tsar but the internal trouble continued till the fall of the communist government and
its replacement by a mixed economy constitution under the leadership of Putin. This was
really a fight between different „isms‟ – Imperialism under Tsar, Communism under the
Bolsheviks and collapse of Communism by a federal constitution based on mixed economy.
In China yet another political war based on ism was carried out. San Yat-sen replaced
Kingship or Imperialism with a democratic constitutional government, which was taken over
by Chian Kai-shek who lost out to Mao Ze-Dong a communist leader who established a
government based on modified communism with mixed economy. After Mao Ze-Dong‟s
death, there was a social turmoil but the Chinese government has stood the stain and is busy
building up the nation, which is now recognised as an emerging power.
It may be recalled that the majority of the war have been fought for acquiring more
resources to meet latest demand; or for extending suzerainty; or for pure political or economic
reasons causing great devastation and loss to the society. Some wars have been fought to
punish the guilty. To eliminate wars laws have been framed, and after the First World War,
League of Nations was formed to provide a forum/platform for discussion to prevent war.
After its failure, the United Nation was formed with a different charter after Second World
War and has been functioning so far. It may have prevented some war like moves since no big
war has occurred since 1949. (There was some violent localised wars all initiated by American
power e.g. Korean War, Vietnam War, Gulf War I, Gulf War II, War in Afghanistan etc., on
the plea of preventing communism, preventing some Middle East countries to become very
powerful or manufacturing and storing weapons of mass destruction, or preventing
international terrorism. But the actual reason is to prove its military supremacy, to save its
internal economy through continuing war and also get possession of more and more control
over oil in Middle East more especially in Iraq region. There was also Egypt–Israel war
arising out of conflicts between Palestine and Israel) The absence of major widespread war is
because of the presence of the atomic arsenal which has become a deterrent or is it the world
opinion is a mute question, but trouble exists and hot spots like North Koreas, Middle East,
Afghanistan, Palestine are some areas of concern. Increasingly it is being recognised that there
has to be a basic change in the views of the man itself. The religious divide between the Jews
and the Muslims, between the Muslims and the Christians is very much on and often leads to
explosive situation. This fact has to be recognised. American President Barrack Obama‟s
recent speech addressed to the Muslims in general and Prime minister of Israel Netanyahu‟s

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speeches are cases in point and only future can tell what will happen – an unstable world or a
stable world wedded to development.
It is important to comment on the benefit or otherwise of the war over civilization. The
wastage of resources both in manpower and financial which could have been used for
development has been commented upon as also the cost of rebuilding and regrouping Yet on
occasions war has righted the wrong when all attempts failed. It has therefore been considered
a mixed blessing or a necessary evil, which has to be borne till mankind improves. Gandhiji‟s
non-violence was an approach, which offers a solution. It has, however, to stand the test of
time.
As indicated wars have been the curses of civilization from its very inception. Sargon
fought his battles in Mesopotamia to extend his empire. The reason for war was usually for
getting control of fertile land or for spread of sovereignty. The wars in India were fought for
obtaining “Sarva Bhoumatha”, “the King of Kings” concept usually by carrying out
Ashwamedha Jangya, the horse sacrifice ritual. A caparisoned horse was let loose and if it was
not challenged all the territory through which it travelled was taken to have accepted the
kingship of the owner of the horse. The expansion of the territory under command was the
symbol of extended power and of course the ultimate gain of revenue that would occur. War
brought in great deal of sufferings and grief but it was a constant feature of civilization
initially for economic and later for political, religious and may be cultural reasons. Craze for
increasing power could have been the sole reason for the mother of all wars “The
Mahabharata War” between the Pandavas and Kauravas. The battle between Rama and
Ravana was between “good” and “evil”, a reason identified as the main reason, an effort to
remove the wrong done. Be it economic, political, cultural or otherwise, war have had a
devastating effect over the development of civilization yet it has been found necessary for its
cleansing effect and the so called need to prove the triumph of “good” over “evil” the Dharma
judhdhya. As long as the human being is enamoured by his base instincts, the eternal conflict
will remain. The need, therefore, is to change the basic qualities of the human beings. So far
all attempts of the philosophers and religious leaders backed or otherwise by the social leaders
have failed but the attempt is on and only future can tell whether Ram Rajya with tranquillity
and peace will ever dawn.
It has, however, to be agreed, the wars have given fillip to technology growth and the
sense of sacrifice and heroism backed by the love of the motherland or religious beliefs which
motivate the hero “jehadis” are a case in point as also the freedom fighters and the motivated.
There is sterling qualities but misdirected. Witness the scientific discoveries from gunpowder
to nuclear energy and atom bombs. While mass destruction and devastation would be the end
result or it will help progress of the mankind remains an issue, which holds the secret of
progress. And here lies the main issue. This important issue has to be resolved.

Notes on International Organizations and Trade Groups

As Governments grew in complexity and numbers, the problem of maintaining peace
amongst various nations increased and this attracted the attention of political leaders.
President Woodrow Wilson of USA sized up this acute problem at the end of World War I
while the Treaty of Versailles was being signed in 1919-1920 and founded along with other
national leaders, the League of Nations, with specific goals of achieving disarmament,
preventing war through collective security, settling disputes between countries through
negotiation, diplomacy and improving global quality of life. The diplomatic philosophy

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represented a fundamental shift in thought over the past hundred years when the rule was
“might is right”. However, the League lacked its own-armed force and depended upon the
great powers to enforce the resolution adopted, maintaining the economic actions as ordered
by the League and provides an army when needed by the League. This unfortunately never
happened. The nations did not take any risks and were pacifist in their mindset. Not that the
League did not score any successes, it developed an interesting structure and organization but
was like a toothless tiger which was powerless to implement. It prevented the aggression by
the Axis power in 1930s, which led to its collapse as also the commencement of the Second
World War. The United Nations replaced it after the Second World War and inherited a
number of agencies and organizations founded by the League.
Immanuel Kant‟s Perpetual Peace – A philosophical sketch first outlined the concept of a
peaceful community of Nations as early as 1795. International cooperation to promote
collective security; originated in the Council of Europe that developed after the Napoleonic
war in the seventeenth century in an attempt to maintain peace and avoid war between nations.
The first Geneva Convention leading to the framing of international law about humanitarian
relief during and the International Hague Convention of 1800 and 1907 governing the rules of
war and peaceful settlement of international disputes led to the establishment of Inter-
parliamentary Union (IPU) which was formed by Peace activist William Randal Cremer in
1889 prior to the formation of the League of Nations. In IPU a third of member of 24
Parliaments was in position, in 1914 with a Council, a President, the form of governance
adopted by the League. But the difference between the industrial powers of Europe persisted
and the result was World War I with massive casualty, industrial war and total chaos. The
World War I was described as “the war to end all wars” and the causes were identified as arms
race, alliances, secret diplomacy; and the desire of the foreign states to enter war for its own
benefit. It was felt that an international organization beyond the national interest could prevent
such catastrophe and with the active help of British Foreign Secretary Edward Grey, as
already stated, President Wilson of USA and his advisor Col. Edward M House adopted the
“Fourteen points for Peace” which led to the foundation of League of Nations after the Paris
Peace conference in 1919 and the treaty of Versailles with 44 nations signing the covenant
including 31 states which took part in the war. USA the main sponsor could not sign the
covenant because of internal opposition led by Henry Cabot Lodge and other Republicans.
League of Nations started with a massive organization with a Central Secretariat and
Assembly, a Council and a Permanent Court of International Justice. The Council had four
permanent members, Great Britain, France, Italy and Japan and four non-permanent members
for a three-year period, initial members being Belgium, Greece and Spain. USA was not
present for reasons stated above. It had other organizations like Health Organizations,
International Labour Organizations, Cultural Opinion Board, Slavery Commission, Refugee
Commission, and Commission for the Study of Legal status of Women.
It started work in right earnest and solved many problems, but the growing competition in
the industrial area and German‟s increasing strength and its urge to regain lost stature led to
the disintegration of the League, specially because it did not have the power of policing and
monitoring functions in spite of some notable success, ultimately led to its demise and the start
of World War II with all its vehemence and catastrophe.
Yet another attempt, which expanded the central theme of League and corrected the
loopholes led to the formation of United Nations arising from the signing of the UN Charter in
San Francisco in 1945. Winston Churchill and Franklin D Roosevelt, respectively leaders of

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UK and USA in 1942, initiated the concept. Declaration by United Nation, which united the
allied countries of World War II under this astute charter. On 25th April 1945, the UN
Conference on International Organisations began in San Francisco with representatives of 50
governments and a number of non-governmental agencies and drew up the charter, which was
ratified in 24th October 1945 with five permanent members of the Security Council, France,
China, Soviet Union, United Kingdom and United States. The first meeting was held in
London in 1946 January.
The organisation followed that of the League of Nations with five principle organisations
instead of six as in the previous incarnation (Trusteeship Council being abolished), the
General Assembly, The Security Council, the Economic and Social Council, the Secretariat
and the International Court of Justice. It has been functioning since then with its mix of
successes and failures, in peace keeping, policing, trade conflict resolutions, improvement of
economics and standard of living and quality of life in general and in specific cases. UN is led
by Secretary General and has several functions which are listed here: Peace keeping and
security; Human Rights and humanitarian assistance: Social and Economic Development;
initiation of development goals carried out by UNDP, WHO, UNAIDS, the global fund for
fighting against AIDS, Tuberculosis and Malaria, Population problem, Environmental
problems and has several agencies like the World Bank and the IMF (International Monetary
Fund). It has also developed Human Development Index (HDI), which it published and has
several projects all of which are supported and organised by and from the funding, which is
collected from member nations. These activities are weekly reported.
United Nations which was set up after the second World War has a large number of
activities under its command as also has been instrumental in setting up a large number of
independent organisations, small institutions which are listed below: -
UNDP connected with developmental activities; UNIDO, connected with Industrial
developmental activities; UNFPA concerned with Family Planning activities around the
world; FAO – Food and Agricultural Organization; IAEA, concerned with International
Atomic Energy Agency and its various allied activities; ICAO – International Civil Aviation
Organization concerned with civil aviation affairs around the world; International Fund for
Agricultural Development IFAD; International Labour Organization (ILO); International
Maritime Organisation (IMO) all started by the League of Nations and continued under UN
set up as also International Telecommunication Union (ITU)
For offering financial assistance - International Monetary Fund was set up in Washington
to help developing countries as also the flow of funds through Nations; exchange rates and
credit position. The practice was advising and monitoring. World Bank was the other
organization for reconstruction and development. World Health Organisation looked after the
Health of the nations advising preventive measures and develop0ment of Pharma and drugs.
United Nations specially established UNICEF concerned with children welfare, UNCTAD
conferred with world trade and development; UNDCP concerned with International Drug
Control programmes; UNESCO which is concerned with education, Scientific and cultural
affairs and lately it has organised UNEP which is concerned with Environmental issues. It has
also set-up organizations to work with refugees, Palestinians, African states, International
issues and that of near east. WTO the World Trade Organisation is yet another important body
concerned with regulating world trade etc.
Besides these two major organisations, there has been an attempt to form several political
groups the Communist group, the Non-communist group and Non-allied groups, which

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represented various power blocks. With the fall of the Communist Russia, the rise of China as
a major power and the loss of importance of the non-allied nations, there has been a constant
shifting of power base, which was reflected by the change in the Warsaw pact, the NATO pact
and other allied functions but their contribution to human development in nothing to be
enthused about, though military tactics wise they display an important role.
Besides the military based associations, the world powers have many an organisation
covering economic aspects especially in the area of trade and commerce. These are
represented as Trade agreements between nations. The pioneering work in this area was not
unknown as trade between countries developed with their own export market, import policies,
and tariff calculation. But the major break through in this area must be credited to Jean Monet,
a French bureaucrat, who studied the various issues involved in trade between European
nations and presented a strong case of a change of policy for the benefit of all concerned.
Others who supported this move include Robert Schuman, Paul Henri Spaak and Alcide de
Gasperi. The end of World War II supported a political climate, which favoured the
unification of Europe. It was seen by many as an escape from the extreme form of
nationalism, which had divested the continent. One such attempt was to unite Europeans was
the European Coal and Steel Community fathered by Charles Monet. It had a modest care of
exercising central control on the previously nationalised steel and coal industries of its
member nations and had been heralded as “the first step of Federation of Europe”. The
founding members were Belgium, France, Luxemburg, Netherlands and West Germany. In
1957, two further communities “The European Economic Community (EEC) looking after
customs and commerce, and the European Atomic Energy Community (Earatom) were
established riding on the success of the coal and steel venture. In `1967, the merger treaty
created a simple set of institutions under European Community (EC).
The success led to further expansion and induction of Denmark, United Kingdom (which
held on to its sterling) but Norway did not join after a referendum. While the Rome treaty in
1957 created the EEC, in 1979 the first direct democratic election to the European Parliament
was held. Greece, Spain and Portugal joined in 1980s and in 1985, the Schengen Agreement
created largely open borders without passport control over most of the territories. The
European flag and single European Act was signed and approved in 1986.
In 1990, after the fall of the Iron curtain, East Germany combined with the West and a
strong single Germany evolved based on sacrifices made by West German leaders Adenuer
and Holment Kohl, the result was a revival of the German pride and success. European Union
continues to grow and proved as a counter point to the hegemony of USA, as was existing in
practice towards a unipolar world with the collapse of Russia.
European Community/Union has brought about a radical change in the mindset of the
Europeans who have given up their intense nationalism and embarced Europe as their
motherland without losing the cultural heritage. This is clearly indicated by spirit of
governance that has developed in Europe. They have identified this development as “the three
pillars”. The first pillar was the original European Community policies, the second pillar
comprises common foreign and economic policy and the third originally Justice and Home
affairs now stands Policy and Judicial cooperation in criminal matters. It may be stated that
two separate levels of governance are being talked about the supernatural and the
intergovernmental.
The European Union recounts its political leadership from the European Council, which is
composed of one representative of the member, states – may be the president or the Prime

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Minister and the President of the commission. The finance member of each member state
provides assistance. During discussions, which are held formally four times a year, the
European Council resolved major issues or disagreements.
There are various institutions at work, which were expected to identify problems and
frame solutions, and legislations to remove such obstacles to achieve the objectives as laid
down by the Council and thus the Council acts as for European integration. It has framed its
own legal system, foreign relations military and defence measures, justice and home affairs
and economic as a whole keeping in mind in the interest of Europe rather than the individual
member state concerned. Thus the concept of European mindset is built up gradually but
steadily. The concept of single market that is Europe has emerged with opposition ironed out
after discussion, the common monetary system allowing for competition as that all round
efficiency increased for the benefit of Europe as an entity not at the cost of the member state
but acknowledging comparative advantage that exists.
These steps have led to agricultural growth and economic growth all over Europe with
great benefits to all member states. There is a clamour for more membership especially from
the eastern states, which are economically backward, and therefore EU developing norms for
seeking membership by the Masterich Treaty. It has also taken up environmental issues and
set targets for using renewable energy against a time frame. It has taken time and careful
planning but the results show the benefit of common and unified approach. Even religion,
culture and sports have been taken care of as also the need for development assistance for
developing members.
The success of European Community and its trade policy has to serious rethinking of trade
relationships between geographically close nations and this development has led to the
formation of North American Free Trade Agreement (NAFTA) involving USA, Canada and
Mexico; Association of South East Asian Nations (ASEAN) with Indonesia, Malaysia, the
Philippines, Singapore and Thailand in 1967; and later Myanmar, Cambodia and New Zealand
with observer status and then membership to follow; South Asian Association of Regional
Countries (SAARC) with India, Nepal, Sri Lanka, Pakistan, Bangladesh and others; and
Communist block under the Warsaw Pact. These will be elaborated on later but the objective
of each of these trade blocks is to activate regional comparative advantages and lower tariff
and trade obstructions between member states as that common single market develops and
economic growth is ensured, besides using collective power in trade negations as BRIC
(Brazil, Russia, India and China) are now exercising in international negotiation to improve
their respective positions in trade and commerce specially in WTO. NAFTA was put to effect
as late as January 1, 1990. It was an agreement between two rich countries and a developing
country and this trade block is the largest in the world. There has been many studies carried
out on the benefits or otherwise of NAFTA and these have been published by UN and World
Bank. Nothing conclusive has emerged excepting that Mexico seems to have gained and have
been able to reduce its poverty level. There have been many legal cases fought over various
issues but the lowering of trade barriers seemed to have shifted some production activities to
Mexico, import inputs from USA/Canada and export semi-finished goods to these countries
after processing in Mexico to take advantage of the low labour cost but this has not been a
radical change. In agriculture, it was expected that Mexico‟s production would increase but
this has not happened specially on corn where prices have fallen. It has indeed been a mixed
bag but the political will is there and trial continues. It has to be recognised however, that
Mexico‟s chief export is labour to California and this issue has not been resolved.

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 In the Asian situation, the matter is different in so far as Malaysia, Indonesia, Philippines
and Thailand along with Singapore are concerned. They have prospered because of increased
internal trade and commerce. The scenario in Asia is, however, in a flux with large countries
like India entering the scene. It has been reported the Indonesia requested India to lead Asia.
But Nehru refused to join any bloc and India was left out. India after a great deal of persuasion
has now entered and it is likely that things will improve in the near future. Witness the Indian
movement in Thailand and Malaysia and the success achieved there in. This should be an
interesting study.
SAARC as still disorganised with enmity between Pakistan and Indian in spite of the later‟s
best intentions; only time will tell whether this free trade zone succeeds. India has opened its
doors and other members including Pakistan have benefited. Only time will solve the tangle
hopefully.
[See Appendix for List of Selected International Organizations]

Notes on Renaissance
Renaissance is a word in French meaning rebirth. The word represents the intellectual
movement, which originated during 14th to 16th century Italy and spread over Western Europe.
Among its outstanding characteristics was an emphasis on the potentialities of the individual
and their life. The belief of the power of education to produce the “complete man”, the man of
action who is also the master of culture of his age, the desire to enlarge the bounds of learning;
the growth of scepticism and from thought and acceptance of Greek and Latin literature and
arts as
moral.
The Italian Renaissance started with the work of Dante, Petrarch and Boccaccio and was
almost extinguished by Counter-Reformation. Erasmus in Italy spread the humanist movement
in Italy and by 16th it dominated French, Spanish and English cultures but by the end of 16th
century Spencer and Milton captured the audience and peace was restored. During the period,
great men like Machiavelli, Aristae, Leonardo da Vinci, Michel Angelo, Galileo etc. in Italy;
Rebellious in France, Cervantes in Spain, Copernicus in Poland and Sidney, Marlow, Bacon
and Shakespeare in England were the galaxy of geniouses who spread light on the society.
A similar development occurred in India during the late 19th and early 20th century when
Raja Rammohun Roy established Bramho Samaj and Ramakrishna, and Vivekananda also
brought new surge in the Hindu religion. It is the result of induction of western civilization in
India and the rise of Indian ethos, which had been lost and forgotten. The phenomenon has
been extensively studied and has contributed greatly to the rediscovery of the Indian Ethos.

Notes on Feudalism
The word „Feudalism‟ is derived from Latin Feudom, a fief. The system which arose
during the 4th–10th century whereby land was held in return for service; under it all land, in
theory, belonged ultimately to the King who might grant the use of land and the right to exact
services and often to administer justice and levy taxes to a chief who in turn might grant
portion of it to vassals and so on. The most important of vassals‟ obligations was that of
military service. The economic basis of Feudalism was the “manor” cultivated by serfs bound
to the soil, who held portions of the manor fields in return for labour services. The system
declined from the 13th century owing partly to the development of money economy, partly to

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peasant revolt during 1350-1550. In England, serfdom was abolished in 16th century and
feudal dues paid to the crown in 1660.

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 Chapter IV

Religion

Introduction
A concise analysis of the growth of civilization covering in general, aspects of political,
governmental and chronological aspects had been made out in the previous chapter. However,
several other aspects have to be dwelt upon to understand this process adequately and these
are the development of Religion, a major influencer and contributor to the shaping of
civilization and the story of man; economic activities which largely influence the trend and
shape of this growth and social aspects like the development of education, society at large,
technology and its influence of the transformation and its impact in totality, the role of conflict
and its resolution which have played a major part in this story along with the development of
organisational styles and management as it observed today. This chapter covers the growth of
Religion while other influences follow in subsequent chapters.

History of Religions

Religion originated from a Latin word Religaree which means “a bond” between the man
and his creator. The concept of a power, which created him and provided for his need; the
power of natural forces, which ruled his life, surprised the man who expressed his sense of
awe and fear and tried to form a “bond” between himself and the supreme power for
betterment as also safety. In the early days, the ancient man practised religion, which was
animistic in nature – the concept of a spirit, taboos, natural force worship and godheads of
various forms depending on his fancy and requirement. Worshiping class .of priests, shamans,
grew up and took charge. Impact of agriculture brought Fertility rites and the concept of
mother Gods. Gradually, this phase was replaced by organised worship with temples and
collective approach to resolve problems by offering appropriation through the priest class to
the respective Godheads. The Dravidians in Indian soil named these Gods as Indra, Mitra,
Varuna representing the natural forces. They had also thought about supreme power Nirguna,
Nirkalpa, omnipotent, omnipresent, omniservent, the supreme purusha, the Divine Being, the
„Bhagavan‟. The Indian practice of introspection, looking internally for the answers, leads to
the identification of great Rishis who through their internal search got to realise the Supreme
Being who conveyed to them the truth in the form of knowledge which the Rishis verbalised
in the Veda, the true knowledge in form of four books Rig, Shama, Jayur, Atharva. Rig the
oldest of the Veda consisted of rhymes/slokas in praise of the Supreme Being as realised by
the Rishi, the intellectual ones, while three others covered the rituals and peripheral issues
which were not only the corner stone of the Vedic Culture but also spelt out the rules and
Code of Behaviour for the mankind to live in peace and in bond, Yoga, with the supreme
power. One can only conjecture that this happened around 4000 – 3500 BC in the Valley of
Indus River, which was a land of milk and honey. Because the initial Veda sutra‟s were
verbalised, it is conjectured that the Aryan influence (European race in mid-Europe) which
had developed the rudiment of verbal Sanskrit had a role to play though the intellectual part
must have been contributed by the Indian Rishis who through the process of introspection and
development and analysis of their “Yogaga Buddhi”, intelligence arising out of contemplation,

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inward looking and deep thinking, sought and obtained answers to their questions on and from
the Supreme Being. This was the start of Vedic Religion, the central point of Hinduism as it
came to be known in the later days. It is to be noted that following the principle of division of
labour, the specific Gods had specified responsibility. Beside the natural divides, yet another
classification emerged in the macro scale installing the concepts of trinity, the God of Creation
– Bramha, God of Sustenance – Vishnu, and God of Destruction – Maheshwara. Over years,
the importance of these Gods has changed from Pashupati, to Rudra to Maheshwara increasing
in importance as civilisation developed. It may also be noted that the then social reformers
took the need of the lower strata of the society into consideration and the idea of personal
Gods. Minor God-heads, were also propagated for satisfying the mass with the pristine
philosophy reserved for the intellectuals, the Rishis, to contemplate and propound. With the
expansion of this thinking, in the real life, the priesthood came up leading to the „Chatur
Varna‟ concept which ultimately led to the much accused caste system which it must be
admitted on hindsight, was as a brilliant idea badly corrupted and misused leading to several
ills of the society. Further elaboration follows:
This Indian population, the Dravidians in conjunction with the Aryans created Indo-
Europeans culture with high intellectual status who could think abstract thoughts and deliver
high philosophy. After the Vedas were compiled around 3000 BC and the Brahmanism had
been initiated, the later Veda‟s developed during 3000 BC to 1500 BC – Vedantas,
Upanishads, and lastly Bhagabat Gita, the epitome of all that is great in Indian culture, was
propounded. The Hinduism that we know today is a gradual development of the Vedic culture
modified and systematised over thousands of years of introspection and analysis. It should,
however, be noted that the ills of the caste system raised their ugly head leading to major
unrests which led to the development of Jainism which renounced Bramhinical practices and
gave rise to Buddhism led by Gautama Buddha, who renounced his princely status and sought
answer to the lack of peace and tranquillity in the world.
Amongst the basic tenets of Hinduism were the following essentials:
1. An eternal soul is in existence amongst all, which is immortal.
2. Transmigration of soul during reincarnation/rebirth
3. “Karma”, the result of any action
4. Merging of the Soul with the Supreme power – ultimate salvation – Moksha, Nirvana,
etc.
5. Mankind‟s striving for the truth, God head
6. “Mayabad” – illusion and its role
7. Eternal truth as conceptualised in Veda
8. Self-control through control of negative trends, which exist in reality.
9. Four paths to realization – “Gyan, Raja, Bhakti, Karma”. Knowledge, odisruptive and
control, devotion and surrender, and work.
10. Renunciation, Asceticism, Chatur Asram - Bramhacharya, Garhastha, Banaprastha
and Sanyas
11. Duties: Chatur varna – (Bhramhana, Kshyatriya, Vaisha, Sudra)

Buddha accepted the Vedic philosophy and unitary God but renounced the concept of
God Heads. He renounced asceticism but advocated a middle path avoiding extremism in all
forms. Buddha advocated the eight paths of right behaviour, right thought, right notion etc.,
etc and advised rejection of all forms of penance, and denounced the then prevalent caste

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system which had caused great sufferance. His lessons were collected in three volumes known
as Tripitaka, the three boxes of advice, which were later propagated by Ashoka the Great,
King of Kings, who adopted Buddhism as the state religion and sent monks and missionaries
all over the globe. Buddha also established celebate monastries and organised training of the
would-be-monks. He institutionalised calibrey.
While in India, the cradle of civilisation, the Rishis were propounding and practising the
pristine religious philosophy based on Vedic teaching, developing Jainism as also other forms
of religious thinking principally Buddhism, and the thoughts reached the Middle East, this
area had grown out of Animistic worship, the then existing, and two schools of new religion
arose, one the Jewism religion of the Semitic race, arising from Abraham followed by Moses
who bestowed the Jewish kingdom to David and Solomon which reached great heights. This
religion Jewish believed was in a Righteous God and sought to govern their nation as defined
in Talmud and Torha, the holy books of the Jews. This was documented and exists even today
through great highs and lows, thus collective religion because of oppression and sack of
temples has been modified to operate from synagogue to prevent further attack.
The other development occurred in Persia where Zorastra developed Zoroastrianism. He
considered himself a holy man who had received his instructions from God himself. He also
tried to preach the details of the eternal fight between “good” and “bad”, the Ahora Mazda and
Angra Mainy, respectively with the Good winning over the bad. The followers of this religion
are the present “Parsees” who fled from oppression in Persia and took shelter in India. They
have continued to be “fire” worshipers and have preserved their religion as of date though in
small communities.
Contemporary with Buddha developing and propagating his tenets in India, Confucius,
spread his behavioural philosophies in far away China, which had a profound effect on
Chinese life and culture. Lao Tse (also known as Lao-Tzu) (6th century BC) was yet another
philosopher who preached his precepts in China around the same period and this affected
Chinese life, thinking and behaviour forms. As it has been said, “Buddhism, Confuciousism
and Taoism were the three pillars on which Chinese thinking rests”. This followed the spread
of Buddhism by the monks of India sent by Ashoka.
While Indian polity was recovering from the impact of Buddhism on and took note of the
defects that had crept into the system by preaching and correcting the excesses perpetrated,
World witnessed yet two other great religions with the onset of Christianity spread by the
great preacher “Jesus of Nazareth” and later by Muhammad who propagated Islam in the
Middle East.
Jesus also believed in a Supreme God “whom he claimed as his spiritual Father, he being
known as “Son of God”. The two books, on which his religious teaching rests, are known as
the “Old Testament” and the “New Testament”. Christianity and Islam the religion to follow
accepted the same book Old Testament, which was, in fact, a religious book for the Jews. In
fact, Old Testament serves both Jews, Christians and while Christ‟s‟ actions were recorded in
the New Testament and the Islam tenets were embodied in the „Koran‟ as the teaching of
Mohammad.
A comparative analysis at this stage is called for. While the oldest religion Vedic Culture
(Hinduism) accepted the reincarnation as also “Karmic” theory, and this was accepted by
Buddhism, Zoroastrian and Jews did not accept rebirth, which one of the principle tenet of
Christianity. All these three religions as also Islam, which was to follow, accepted linear view
of life, one birth and then wait for judgement by the Supreme Being!

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 The caste system that had split Buddhism from Vedic religion if analysed logically is
based on division of responsibility. Hinduism believed that the society should be based in four
broad divisions – Intellectuals and priests – Brahmins, Warrior and Kings (Regality) –
Kshatriyas, the trading community – the Vaishayas and the service and working class – the
Sudras. This was further based on decentralised self-sustaining society structure of the four
“Varnas” supporting each other and supplying all requirements of the society. It also stressed
refinement of skill in each class, theory being supportive of apprenticeship, and accumulated
experience leading to excellence. It was principally the greed of the Brahmin community who
cornered all source of knowledge exclusivity, warriors by supporting the Brahmins protected
their kingdom, traders were busy earning money and joined the power block leaving the
sudras all by themselves suffering great neglect and oppression. Vedic India did never stopped
education to lower Varnas and there are examples of low cast earning Brahmanism through
acquiring education and ascetic and clean living. The four Varnas are to be supplemented by
the concept of four „ashsrama ‟ the Bramhacharya, the Garhasta and Banaprastha and then
sanyasa..
The impact of Buddhism and the awakening of sudras as it were, shook the very
foundation of Hinduism, Bramhabusm that had fallen into disrepute. Adi Shankar‟s arrival in
783-820 AD put a stop to this decline and Hindu religion was revitalised. Adi Shankar
travelled the length and breath of the country, thrice in his 32 years and defeated in debate the
various opponents of Vedic Hinduism, and brought them back in to the fold, reorganized the
monastic order, established ten major divisions Dasanami Sampradaya which exist till today,
re-established Advaita tradition along with the Dvaita thinking and re-launched Hinduism
based on the Vedic philosophy. He re-established the importance of Upanishads and Gita as
the basic tenets. He also was a great teacher and introduced the learning of Naya, logical
grammar, vyakarana and Mimansha Darsan and other important inputs in the Vedanta school.
During this period, it was the hay day of Hindu theology and its logic was widely spread.
The Hindu kingdoms were prosperous and they propagated the Hindu Philosophy and culture
abroad. Middle East and China had developed extensive trade with and via India as the central
point both by land route and the sea route. Indian culture especially Hindu culture spread out
to the eastern area – Vietnam, Cambodia, Borneo, Java, Sumatra, and Indonesia. The Hindu
and Buddhist practise had accompanies the traders and Hindu kingdom were established in the
modern Thailand in Ajoytha, Angkor Wat in Java etc
In the Middle East, Islam wherein Mahammad put himself forward as the sub-Regent of
Allah, the all-powerful supreme element, wrote out his “Koran” spelling out the behaviour
pattern of the nomadic and warring tribes whom he tried to educate and bring under a single
authority. They were prosytalised and spread out their religion with vigour. As against
Christianity who used tactics rather than brute strength in propagating their ideas, Islam
concentrated on spelling out the behaviour pattern of the converted to obtain peace. While
Christianity obtained a fillip by the conversion of the Roman Emperor Constantine and
gaining the status of a state religion, the rising of the Muslim Caliphate and the gradual
spreading of its domain increased the spread of Islam, however more by conquest than by
conversion. Though Christianity broke up into several divisions Roman Catholic headed by
Pope, Eastern Orthodox, etc; and later with Martin Luther around 1500 AD, who started
Protestantism as a protest against Papal set up the Moslems namely had Sia and Sunni
divisions depending upon the two family divisions of Mohammed. Islam, however, was a
great leveller, there being no class distinction, universal brotherhood and strict discipline and

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the compelled attention as also the serious intension to assist the poor and the deprived
community. In India, however, they had a further division, the converted Muslims and the true
Muslims, the Arabs, etc.
Indeed this is the strange part in the study of competitive religion. Each religion wishes
the best for its follower and offers him the right advice in which there is no basic change.
Even then the constant battle between Christians and Christians and Christians and Muslims,
Muslims and Hindus, (to a lesser extent) Hindus and Hindus, surprises one as to the positive
and negative effect of religion. While dogma associated with religion must have played an
important role, it may be inferred that externalities were present which used the religion to suit
their purpose with wrong direction or bewildering instructions issued by the Church, Fatwas
by the mosque and dictants in people to power. That has been recorded in the events that
followed.
Hinduism and Islam as also Christianity have had their own rises and falls recorded over
time. The expansion of Christianity; over Europe coupled with the rise of power of the nations
involved changed the world order even as crusaders were being fought bitterly in Middle East.
Muslims invaded India and ruled over the Hindu kingdoms for more than 300 years making a
radical change in the governmental process. The Hindu kingdom sent out cultural invaders to
Far East and established great Hindu establishment, which lead to revivalism and are once
again showing some signs of growth in Indonesia with several regions expressing their
adherence to Vedic/Hindu religion. This is a trend that is discernable and is significant in so
far as these are products of cultural spread and not military conquests without massive
bloodshed. These temple complexes Angkor Wat, Borbudur and Ajyodha, their names and
languages all bear the stamp of Indian culture and religion. It should be noted that Buddhism
also spread out alongside Hinduism and this is apparent in the mixed culture that emanated.
In India, with the invasion of the Moghuls and Pathans the coexistence that was a part of
Indian culture was disturbed. It has been said that the great king Harshabardhana used to
“worship Shiva one day, the next day he worshiped Buddha and the day next Surya”, such was
the spirit which prevailed. The Moslem invasion disturbed this culture since it brought with it
an incursion, a militant Islamic religion, and Hinduism was oppressed and taxed, Zizya tax on
Hindus. The priesthood went into the rear guard action and all research or development in the
religious studies remained dormant. They were busy with preventing the sack of their temples
and their wealth from the invaders. Muhammad of Gajni was a noted demolisher of the north
Indian temples and was a looter by all accounts. However, the influx of Islam added to the
cultural heritage of India which had already reached great heights during the Hindu and the
Buddhist periods with the Ajanta Painting and Ashoke‟s edicts and stone edifices, with the
magnificence of Moghul architecture, Mughal painting, Persian studies and various
administrative measures were added to the cultural heritage of Indian civilization. Taj Mahal
is still considered a wonder of the world. Hindu and Buddhist were administratively oppressed
and literally went into hiding. The Maratha and later the Sikh movement were also spread out
the first during the later days of Moghul. Empire and the Sikhs later after the British conquest
had taken place. The glorious fight of the Rajasthani Hindu kings with the Moghuls can be
taken as an example of Hinduism‟s protest and how valiantly did they fight against the
oppressive regimes. This may well be the only other example of Porus fighting against Greek
Alexander wherein Hindus fought to protect their religion.
Hindu revivalism emerged during the British rule, which practised the divide and rule
policy raising communal feelings and pitching Hindus against Muslims which ultimately led

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to the partition of India on religious line, Swami Dayanand of Arya Samaj raised a Hindu
preacher monastery system to revive classic Hinduism and Raja Rammohun Roy established
Bramho Samaj based on Classic Vedic culture. It must also be noted that it was Dara Siko, a
son of Sahajahan, Mughul Empire, whose effort to synthesize Hinduism/ Vedic philosophy
with Islam tenets. He had lead in the translation into Persian of the Hindu Upanishads, which
brought before the world the wealth of Indian Philosophy and religious thoughts and were
studied by Max Mueller and translated into English. In this massive task, Sir William Jones,
the Sanskrit scholar and the Asiatic Society and the Universities in UK and Germany were a
great help. The revival effort reached great heights with the arrival of the great ascetic Shri
Ramakrishna and his disciple Swami Vivekananda who preached this gospel in the World
Congress of Religion held in Chicago in the late nineteenth century and captured the attention
of the West. The canard, which was spread by the Christian missionaries in India for
conversion of Hindus and Muslims to Christianity, was objected to. Under the auspicious of
the new founded Ramakrishna Math and Mission, the gospel of Hindu revivalism has spread
around the world. The precept being “as many paths as many thinking/views but all must lead
to God. Be a good Buddhist, a good Christian, a good Muslim and seek the one and only good
in your own way.” “Jato math, tato path”.
The clash between the Christians and the Muslims has continued in the political plane
with religion in the background. Witness the battle of Iraq and potentially one with Iran and
the strike back by Al Quieda led by Osama Bin Laden and so on.
The religion of China on the other hand was based on Confucius‟s preaching of good
behaviour and good social life. The concept of God was not very precise. Lao Tse who
preached about the same period, thought of an abstract power but it was Buddhism, which was
most widely, accepted religion with Buddha attained the status of God Head because of his
saintliness. Of late, Christianity has made inroads into China but the basic ancient worship,
respect for elders and society-centric meritocracy as preached by Confusious still rules the
behaviour of the Chinese mindset and maintain the beaurecratic won frame.
The Shinto religion of Japan is also an internal inclusive religion without any written
gospel or code of conduct excepting that the King assumed the power as the son of Sun God
till this convention was broken after World War II. Details of these and other religions are
given in the appendix.
In South America, Aztec religious order was present in Mexico prior to the occupation by
Spain led by Gen. Cortez in 1579 by the Spanish general Cortez. Montezumma II (1466-1520)
was the king with a vast empire and a rich one at that. They had been worshipping many gods
following Azlec culture accompanied by many rituals supposedly received from East with a
strong priesthood. It was a wealthy mature civilization, which lost all to Spain and collapsed.
The Mexicans were great builders and laid out roads, had attended high civilization but
offered no or little resistance to Cortez and his people with barbaric intensity weapons and
swamped Mexicans with their imported disease and artillery. The Mexican King believed that
the conquistadors had come to visit them from Heaven and offered little resistance.
INCA civilization was prevalent in Peru before the coming of the Spaniards. The name
INCA represented the King of the country. The Peruvian civilization existed in America from
1200 AD. It was an extended Kingdom stretched over 4000 KM from Quito in Ecuador to
beyond Santiago to South Chile. The king represented God. It was a complex theocratic
socialistic state. Sun worship was prevalent. State of civilization was high, with army,

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manufacturing, metalworking, medicine, survey and building technique. Sacrificial offering
was carried out. It fell to Spain led by Pizaro and the culture was lost.
While summing up, it may be noted that sacrificial practice was prevalent in the early
civilizations both in India and in Middle East including human sacrifices on special occasion
and as a fertility right. The concept of importance of Fertility was in-built in the Hinduism and
it is apparent even today with the Purush Prakiti concept and in the phallic symbol worship.
It has been said “Religion is the opiate for the people.” This statement does not take into
account, or may be it does, the fervour that religion has generated amongst the humans.
Witness the creation of art, music, the great edifices, the temples, the poetry, the prose and the
best in creation dedicating to God in the form of religion. It is also true that religion has given
them hope and patience, strength to fight the odds and face the disasters. Equally, it has led to
irrationality, great bravery yet leading to bloodshed and misery. Analysis would however,
indicate that it is the wrong approach of religious fervours, which cause these disasters. Kshiti.
Mohan Sen in his work Hinduism (Penguin Books, 1961) has stressed this issue. He sums up,
as no religion is wrong, it is the interpretation, which is often wrong. This is applicable
especially to Hinduism, which had embraced all forms of religious movement in its fold to
enrich itself and rarely led to forced conversion. Christianity and specially Islam can be
identified as conversionalists.

Excerpts from Great Religious of the World

Rigveda (Vedic Religion) (India)
That which exists is one: sages call it by various names. (1/164/46)
Let our meditation be on the glorious light of Sabitri (Sun). May this light illumine our minds
(3/62.10)
In space he is the sun, and he is the wind and the sky; at the alter he is the priest, and the Soma
wine in the jar. He dwells in men and in gods, in righteousness and in the vast heavens. He is
in the earth and the waters and in the rocks of the mountains. He is Truth and Power. (4/40/5)

Tatyamashi – Knowledge (fact) is truth (sublime) – Sama Veda

Ayamatyma Bramha – The soul is supreme – Atharva Veda
Pragyana Bramha – True knowledge is the Supreme – Rig Veda
Ayam Bramhashmi – I am the Supreme – Yajur Veda
Satyam Shivam Sundaram – Truth, Durable, Beauty
Satyam Gyanam Amritam – Truth, Knowledge, Immortality

Upanishads
Believe me my son, an invisible and subtle essence is the Spirit of the whole universe; that is
reality, that is Atman, thou ar‟t that, Satyaketu. (Chandogya 6/8/7)

This is the Sprit that is in my heart, smaller than a grain of rice, or a grain of barley, or a grain
of mustard seed, or a grain of canary-seed, or the kemel of a grain of canary-seed. This is the
Spirit that is in my heart, greater than the earth, greater than the sky, greater the than heaven
itself, greater than all these worblds. (Chandogya 3/14/3)

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Atman, the Spirit of vision, is never born and never dies. Before him there was nothing, and he
is ONE forever more. Never born and eternal, beyond times gone or to come, he does not die
when the body dies (Katha 1/2/18)

Bhagavad Gita
I am the seed of all things that are, and that no being that lives or moves not can ever be
without me. (10/39)
He sees himself in the heart of all beings and sees all beings in his heart. This is the vision of
universal equality of the Yogi of harmony. (6/29)
In liberty from the bonds of attachment do thou therefore the work that is to be done for the
man whose work is pure and without attachment attains indeed the supreme. 3/19)
Leave all things behind and come to me for thy salvation. I will make thee free from the
bondage of attachment. Fear no more. (18/66)

Confucianism (China)
The great philosopher Confucius (Kong Fu Zi) lived in China from 551 to 479 BC.

Confucianism in Brief
The three religions that have influenced Chinese culture are Buddhism, Taoism, and
Confucianism. Confucianism is basically an ethical religion geared for social and political life.
Religion in ancient China took the basic form of ancestor worship. Confucius did not interrupt
these ancestral rites but at the same time his emphasis was directed towards the living family.
He said: “While you are not able to serve man, how can you serve their spirits?”

Virtues (Using the analogy of a tree)

Jen (the root) – stands for a man‟s good relationship with others. It has as its heart the
important Confucian concept of Shu (reciprocity) i.e., what you do not want done to yourself,
do not do to others. It is the motivation force in moral life. It is the virtue that separates man
from the beasts.
Yi (the trunk) – this is righteousness by justice.
Li (the branches) – is that reverent propriety which is expressed by acting correctly in both a
moral and religious way, Confucius conveyed the meaning of Li through maxims: anecdotes
in which he sought to order an entire way of life so that no one properly raised need ever be
left to improvise his responses on momentary impulse because he is at a loss as to how to
behave.
Chih (The flower) – as wisdom.
Hsin (the fruit) – is faithfulness.
The superior man (Chun-tzu) or true gentleman is able anywhere and everywhere to have
these virtues. As a son he is always filial, as a father just and kind, as an official loyal and
faithful, as a husband righteous and judicious, as a friend sincere and tactful.
Chu His is regarded as the best interpreter of Confucianism. He was not only a scholar but
he led an exemplary life. He would rise at dawn, clothe himself decently and pay homage to
his ancestors and to Confucius. Then he went to his study and attended to his daily work.

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Sitting and sleeping he held himself erect, working or resting he behaved according to the
model of behaviour prescribed by Confucius in his Classics. Everything is his home was
permanently in good order, and in this way he lived from youth to old age.

Silent sitting
Chu His found his spiritual and moral development best served by devoting a certain portion
of each day to solitary meditation, something he called “Silent Sitting”. This was primarily a
form of introspection in order to get oneself into a state of equanimity in which one could feel
at one with the order and harmony of the universe.

Taoism
Tao means literally „path‟ or „way‟. These are three senses in which this „way‟ can be
understood.
The way of ultimate reality: the transcendent, ultimate Tao, the ground of all existence, from
which all life springs and to which if again returns.

The way of the universe: The immanent Tao, the ordering principle, the energy; and rhythm of
nature.
The way man should order his life: to be in harmony with Tao is to attain fullness of life – this
is the chief aim of human existence.
Virtues of Wu Wei
The basic quality of life in tune with the universe is Wu Wei. This is not inaction but creative
quietude or non-assertive effortless „being‟. When this quality is manifested one lives in Tao.
Water is used as an example because of the way it adapts itself to its surroundings and seeks
out the lowest places and yet, despite its accommodation, wears down rocks. Infinitely supple
yet incomparably strong – these virtues of water are precisely those of strain, persuade without
argument, is eloquent without flourish, and makes his point without violence. Though
unnoticed; his influence is decisive. By being humble one does not assert oneself but blends
with nature, thereby achieving the highest i.e. to identify with Tao and let it work through one.
Yang Yin
This is the traditional Chinese symbolism of life‟s two interacting energies – the positive and
the negative. Everything that exists is seen to be made up of these basic opposites e.g.
good/evil, active/passive, light/dark, male/female etc. They interact in creation, but are held
together and finally resolved in the all-embracing circle, symbolizing Tao.
I consider doing nothing (to obtain it) to be the great enjoyment, while ordinary people
consider it to be a great evil.
Fishes live and men die in the water. They are different in constitution, and therefore differ in
their likes and dislikes. Hence it was that the ancient sages did not require (from all) the same
ability, nor demand the same performances.
To be un-thought of by the foot that wears it is the fitness of a shoe; to be un-thought of by the
waist is the fitness of a girdle.

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If a man can empty himself, during his time in the world, who can harm him? Those who
boast have no merit. The merit which is deemed complete will began to decay. Remember it,
my disciples. Act virtuously, and put away the practice of priding yourselves on your virtue.
Void of any thought of himself, he accommodates himself to others, and nourishes the true
ideal that belongs to him.
Death and life, their ending and beginning, are but the succession of day and night.
When the position came to me, I thought it should not be rejected, when it was taken away, I
thought it could not be retained.
Those who know (the Tao) do not speak of it; those who spoke of it do not know it; and
“Hence the sage conveys his instructions without the use of speech.”
Life is the follower of death, and death is the predecessor of life; but who knows the Arranger
(of this connection between them)?
By my constant practice of it, I came to be able to do the work without any thought of what I
was doing.
The greatest politeness is to show no special respect to others; the greatest righteousness is to
take no account of things, the greatest wisdom is to lay no plans; the greatest benevolence is to
make no demonstration of affection; the greatest good faith is to give no pledge of sincerity.
In what does the governor of the kingdom differ from him who has the tending of horses, and
who has only to put away whatever in him would injure the horses?
Him who imparts of his virtue to others we call a sage, his who imparts of his wealth to others
we call a man of worth.

Shinto Religion (Japan)

Shinto (the way of the gods) is the indigenous faith of the Japanese people, and it is as old as
the Japanese people.
Shinto does not have a founder nor does it have sacred scriptures like the sutras or the bible.
Propaganda and preaching is not common either because Shinto is very deeply rooted in the
Japanese people and its traditions.
In contrast to Western religions, there are no absolutes in Shinto, even though there is a most
important goddess, the Sun goddess Amaterasu Omikami whose shrine is at Ise Shinto is a
very optimistic faith. It is thought that all humans are fundamentally good, and that evil spirits
causes all evil. The purpose of most of the rituals is to avoid evil spirits by purification,
offerings and prayers.
A written code of ethics and morals does not really exist in Shinto, but the Confucian ethics
had melted together with Shinto over the centuries, especially during the edo period.
Shinto prayers of shrines or at home follow more or less the following pattern (there exist
several variations). First of all you should purify yourself, by cleaning your hands and your

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mouth with clean water. Then you give your offerings (e.g. coins at a shrin4 or food at the
home shrine), bow twice deeply, clap your hands twice, bow deeply once more and pray.
Numerous Shinto festivals are held throughout the year in order to assimilate the gods into the
daily life of each Japanese citizen. In these ceremonies, good are brought to presence, that
presence is honoured and celebrated, and blessings are sought for.
The religious doctrine behind Shinto creates a flexibility to suit many types of individuals and
reflects on the needs of the agricultural days. Known is the doctrine of Yorozu-yomi there is
gods for everything and anything, from food to rivers to rocks. One can choose to worship any
god in any region. However, to unite the gods, the sun-goddess, Amaterasu is given the
highest respect.
The Shinto religion places a great importance in nature, in purity, and in tranquillity.
Cleanliness is a main factor, and the gods are pictured as disliking insincerity and disorder.
Shinto emphasizes right practice, sensibility and attitude over conceptual understanding of the
universe and holiness, respect for nature is permeated throughout the society in Japan. Nature
in its unmeasurable power and beauty is understood as the manifestation of divine power. A
rain storn is provoked and halted by honouring the gods. The power of nature lies in the hands
of the gods and to drive the forces of nature to the favourable side is only possible through
seeking blessings from the divine.
Since Japan‟s earliest days, Shinto has been the code of honour and action for the Japanese. It
gives the Japanese citizens customs, doctrines, and a general respect for purity, sincerity and
cleanliness. Through successful assimilation into the daily life of Japan, Shinto will continue
to be a part of the Japanese culture.
Zoroastrianism (Persia)
Zarathushtra was the first prophet to preach a monotheistic religion, and He was born in Iran
about 1000 years BC. He revealed that there was only one God, Ahura Mazda and that life in
the physical world was a battle between good and evil.
His (Zoroaster or Zarathushtra Spitama) own original writings treasured as the Gathas
breathes clear marks of a virile and God-intoxsicated personality, far from legendary.
The key to Avesta was lost and its meaning was preserved only through Pahlavi translations.
What was the essence of his message? It may be briefly summarised under two headings high
moral life, leading to immortal bliss, and the doctrine of God of Righteousness.
Both Zoroaster and Mohamed never claimed to be anything more than just prophets or
messengers of God.
It was the mission of Zoroaster to affirm the high values of life as represented by the triad of
hoomta, bookhta, huvereshta i.e. pure thought, pure words and pure deeds.
It is the prayers that the soul of a man manifests itself. There are two prayers most frequently
used … They are Ashem Vohu and Yathe Ahu Vairya … The Ashem Vohu is this translated.
Purity is good. Purity is best. It is happiness. Happiness is for him who observes purity in

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order to attain the highest purity.‟ The Yatha Ahu Vairyua formula means. The will of the
Lord is the Law of Holiness. The riches of Vohu Mano (good thought) shall be given to him
who works for Mazda, and wields according to the wills of Ahura the power. He gave to him
to relieve the poor.‟
From the religious standpoint, the most important ceremony in the life of a Zoroasterian is the
Navjote ceremony, in which a boy or girl is invested with the sacred shirt and thread called
Sudrah and Kusti respectively.
The Kusti or the sacred thread is worn round the waist and goes round it three times … While
being tied there have to be two knots in front and two at the back. Each of these four knots has
to be accompanied by the following four thoughts respectively. 1. Ahura Mazda exists and is
holy. 2. Zoroaster‟s religion is the word of God. 3. Zoroaster is the prophet of God. 4. Good
thoughts, good words, good deeds. In course of a day the Kusti has to be unwound and wound
again a number of times.

“Say not that they (the Iranians) were worshipers of fire; they were worshipers of one God.”
“The art of overcoming evil with good remained unknown to him. He declared on the contrary
that he who is good to an evil person becomes evil himself and worthy; of punishment.”
Life is fearfully complex and one set of rules, which works well with some persons, fails
miserably with others.
It has been generally accepted that the Gathas contain the original teachings of Zoroaster …
The Gathas are five in number, rather unequal in length.
Genuine idealism begins and ends with the ultimate reality of Spirit. It alone is, it alone is real,
so that whatever exists is Spirit or manifestation of Spirit. The manifestation may be transient
but the Spirit is eternal.
No one who takes the trouble to think can repudiate metaphysics altogether. But it would be
safe to assert even today that for the vast majority, the need to lead a good life is far more
important than the need to understand the world at large.
The Gathas leave no doubt that Zoroaster believed in the immortality of the soul.
Today as the world becomes smaller and smaller, the need for more and more tolerance and
more and more understanding is all the greater, and the time is ripe to get at the soul of
religion rather than its form with its mere symbols of worship.
Now good thoughts are very foundation upon which are both good words and good deeds,
always and everywhere.
A scholar like Mr T. Reszwin says: “The Prophet of Parses teaches nothing unholy or non-
heavenly, rather his mission is based upon the same moral principles upon which are based the
preaching of Moses, Jesus and Mohammed.
All our Scriptures are sacred, including the Gathas, Yashts and the Vendidad. We pray all of
them in our Fire temples, before the Sacred Fire, and they have immense spiritual power.

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Righteous of every religion goes to heaven, all religions are equal, and it is folly to convert.
Conversion goes against the Master Law of Ereta (righteousness) itself because God has given
us birth in our respective religions, to adore Him in them, and not to mistrust His Judgement
and rebel and go over to another faith. For, each faith leads ultimately to God. Thus, the
Zarathushtris do not convert other people, but they rely on MARRIAGE WITHIN and
INCREASED CHILD BIRTH to increase their numbers.
Faith, and Hope in the coming of the Saoshyant (Saviour) has sustained our religion through
the centuries. We firmly hope, and pray, that Ahura Mazda sends the Saoshyant to the earth to
defeat evil and further righteousness (Ashoi).
We firmly believe that when the Saoshyant comes, the final spiritual battle between the forces
of good and evil will commence, resulting in the utter destruction of evil. Ristakhiz, the
resurrection of the dead will take place – the dead will rise by the Will of Ahura Mazda.
Zarathushtra (Parsi community)
Zarathushtra was the greatest of all the pioneer prophets who showed the path of freedom to
man, the freedom of moral choice, the freedom from blind obedience to unmeaning
injunctions, freedom from the multiplicity of shrines, which draw our worship away from the
single-minded chastity of devotion.
Though surrounded by believers in magical rites, he proclaimed in those dark days of
unreason, that the religion has its truth in its moral significance, not in external practices of
imaginary value that it is to uphold men in his life of good thought, good words and good
deeds.
The Iranian monotheism is more ethical while the Indian is more metaphysical in its character.
In India, although the ethical side is not absent, the emphasis has been more strongly laid on
subjective realisation through stoical suppression of desire, and the attainment of a perfect
equanimity of mind by cultivating indifference on all causes of joy and sorrow.
He who fights Evil, either by his thought or word,
Or with the might of his two hands,
He who instructs people to their good,
Makes a worthy offering of faith, in his love of Thee,
O Ahura Mazda!
“What gift wouldst thou love to obtain?”
Standing at Thy Fire in humble prayer, I replied
“So far as it is in my power, I shall cherish the gift
of Righteousness.”
Buddhism (India)
Although an independent and major religion of the world today, Buddhism began as a reform
movement within Hinduism. The Four Noble Truths expounded by the Buddha in his first
sermon at the Deer Park at Sarnath constitute the core of his teachings.
I. There is suffering (dukkha) in the world.

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 II. This suffering has a cause.
III. Suffering can be eradicated.
IV. There is a way to accomplish this end. This is the Eightfold Path. Each of
the eight phases has to be developed simultaneously because they are
linked together, and the cultivation of one helps in the observance of the
others.
1. Right Understanding; 2. Right Aspiration; 3. Right Speech, 4. Right Action; 5. Right
Livelihood; 6. Right Effort; 7. Right Mindfulness and 8. Right Absorption.
Dhammapada
Hidden in the mystery of consciousness, the mind, incorporeal, flies alone far away. Those
who set their mind in harmony become free from the bonds of death. (37)
Hold not a sin of little worth, thinking „this is little to me‟. The falling of drops of water will in
time fill a water-jar. Even to the foolish men becomes full of evil, although he gathers it little
by little. (121)
But although a man may wear fine clothing, if he lives peacefully; and is good, self-possessed,
has faith and is pure, and if he does not hurt any living being, he is a holy Brahmin, a hermit
of seclusion, a monk called a Bhikkhu (142)
I have gone round in vain the cycles of many lives ever striving to find the builder of the
house of life and death. How great is the sorrow of life that must die! But now I have seen
thee, house builder: never more shalt thou build this house. The rafters of sins are broken; the
ridge-pole of ignorance is destroyed. The fever of craving is past for my mortal mind is gone
to the joy of the immoral NIRVANA. (153-154)
When a man considers this world as a bubble of froth, and as the illusion of an appearance,
then the king of death has to power over him. (170)
Do not do what is evil. Do what is good. Keep your mind pure. This is the teaching of Buddha
(183)
Health is the greatest possession. Contentment is the greatest treasure. Confidence is the
greatest friend. NIRVANA is the greatest joy. (204)
When a man knows the solitude of silence, and feels the joy of quietness, he is then free from
fear and sin and he feels the joy of the DHAMMA (205)
From craving arises sorrow and from craving arises fear. If a man is free from craving he is
free from fear and sorrow. (221)
Speak the truth, yield not to anger, give what you can to him who asks these three steps lead
you to the gods (224)
The wise who hurt no living being and who keep their body under self-control, they go to the
immortal NIRVANA, all their passions pass away. (225)

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Dull repetition is the rest of sacred verses; lack of repair is the rust of houses want of healthy
exercise is the rest of beauty, unwatchfulness is the rust of the watcher (241)
But the greatest of all sins is indeed the sin of ignorance. Throw this sin away, O man, and
become pure from sin (243)
It is painful to leave the world, it is painful to be in the world, and it is painful to be alone
amongst the many. The long road of transmigration is a road of pain for the traveller; let him
rest by the road and be free (302)
Better to do nothing than to do what is wrong, for wrongdoing brings burning sorrow. Do
therefore what is right, for good deeds never bring pain (314)
But whoever in this world overcomes his selfish cravings, his sorrows fall away from him,
like drops of water from a lotus flower (336)
Leave the past behind, leave the future behind, leave the present behind. Thou art then ready
to go to the other shore. Never more shalt thou return to a life that ends in death (348)
He has reached the end of his journey, he trembles not, his cravings are gone, he is free from
sin, he has burnt the thorns of life; this is his last mortal body (351)
Good is the control of the eye, and good is the control of the ear; good is the control of smell,
and good is the control of taste. Good is the control of the body, and good is the control of
words good is the control of the mind, and good is the control of our whole inner life. When a
monk has achieved perfect self-control, he leaves all sorrows behind (360-361)
Empty the boat of your life, O man, when empty it will swiftly sail. When empty of passions
and harmful desires you are bound for the land of NIRVANA (369)
Arise! Rouse thyself by thy Self; train thyself by thy Self. Under the shelter of thy Self and
ever watchful, thou shalt live in supreme joy. For thy Self is the master of thyself, and thy Self
is thy Refuge. Train therefore thyself well, even as a merchant trains a fine horse (379-380)
He who speaks words that are peaceful and useful and true, words that offend no one –him I
call a Brahmin (408)
He who knows the going and returning of beings – the birth and rebirth of life – and in joy has
arrived at the end of his journey, and now he is awake and can see – him, I call a Brahmin.
(419)
He for whom things future or past or present are nothing, who has nothing and desires nothing
– him I call a Brahmin (421)

Jainism (India)
Jains have recognised non-injury to all creatures (ahimsa) as the fundamental law.
Jainism is the only religion that has no god.
Jainism never accepted the caste system and provided equal status and equal rights to women.

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Do not injure, abuse, oppress, enslave, insult, torment, torture or kill any creature or living
being.
All Jains – however westernised – actively refrain from harming the trasa jivas, those souls
with more than one sense, beginning with the dvindriya, such as worms and leeches. Those
creatures with both tough and tastes are duly protected. Trindriya organisms which have three
senses – touch, tastes and smell (Such as moths, ants and lice) are even more sacrosanct.
No priests, no hymns, no divine prayers.
Jain monks, without church, prospects for administrative power or personal gain.

Judaism (Israil)
The one great theme of the Jewish religion is that a single, righteous God is at work in the
social and natural order, and He has revealed His will in history. There are many different
forms of Judaism. Some conservative, some intellectual, others mystical etc – all are different
approaches to the basic beliefs.
Judaism was presented as convenantal monotheism structured by such core features as God,
Israel (the people), Torah and interpretation.
The rabbinic prayer service was performed thrice daily, morning, afternoon and evening like
the sacrifices of old – Priestly benediction.
God was rather understood as both the transcendent source of all being and the immanent
presence of divinity in all things.
The traditional Jew is thus fully conscious at every moment of every day that he or she is
responsible to the Torah and the Commandments. Coming each week at Friday dusk and
celebrated until Saturday eve. The Sabbath is both the climax and focus of the week.
The Ten Commandments
i. I am the Lord thy God, thou shalt not have any other gods before Me.
ii. Thou shalt not make any images not bow down and serve them.
iii. Thou shalt not take the name of the Lord the God in vain.
iv. Six days shalt thou labour but remember to keep the Sabbath day holy.
v. Honour thy father and mother.
vi. Thou shalt not kill.
vii. Thou shalt not commit adultery
viii. Thou shalt not steal.
ix. Thou shalt not bear false witness.
x. Thou shalt not covet anything.

Christian (Bible: The New Testament)

(St. Mathew)
Man is not to live on bread alone, but on every word that issues from the mouth of God.
Blessed are the pure in heart! They will see God.

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But I tell you, you are not to resist any injury; whoever strikes you on the right check, turn the
other to him as well.
When you give alms, never let your left hand know what your right hand is doing.
Store up no treasure for yourself on earth, where moth and rust corrode, where thieves break
in and steal: store up treasures for yourself in heaven, where neither moth nor rust corrode,
where thieves do not break in and steal.
Look at the wild birds; they sow not, they reap not, they gather nothing in granaries, and yet
our heavenly Father feeds them.
Never be troubled about tomorrow, tomorrow will take care of itself. The day‟s own trouble is
enough for the day.
Have no fear of those who kill the body but cannot kill the soul.
You will hear and hear but never understand; you will see and see but never perceive.
It is not what eaters a man‟s mouth that defiles him, what defiles man is what comes out of his
mouth.
The commands, you shall not kill, you shall not commit adultery, you shall not steal, you shall
not bear false witness, honour your father and mother and you must love your neighbour as
yourself.
All that ever you ask in prayer you shall have, if you believe.
Lent starts on Ash Wednesday with the priest while applying the ash on the forehead intones.
“Remember man that you are dust and into dust you will return.” The period of Lent – forty
days not counting the six intervening Sundays – is a time set aside for prayer, fasting and good
works (to share some of their good fortune with their less fortunate brethren). Lent is also a
time of self denial and mortification. Easter marks the end of Lent.
Good Friday, the day Christ died is followed by Easter Sunday, a climactic and joyous event
for all Christians. Easter falls on the Sunday following the full moon which occur on or after
the vernal equinox (21st March)

Islam (Koran)
The following five rules have been laid for the Muslims and they are ordered to follow them.
A Muslim must declare the oneness of God and accept Mohammed as the prophet. The
declaration is also known as recitation of Kaba. The follower has to say – that there is no other
God except Allah and Mohammed is the Prophet of Allah (2:163, 20:98, 48:29)
He must say prayer five times a day and every Friday he must offer his afternoon prayer at the
mosque. (7:55; 11:14, 17:78, 20:130, 30:17)
He must offer charity (Zakat) to the deprived and the destitute. (2:110, 2:195, 24:56)
He must observe fast in the holy month of „Ramzan‟. (2:185)

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At least once in his lifetime, in accordance with his means, he should go for pilgrimage (Haj)
to Mecca. (2:196)

Sikh religion
Sikh history begins with Guru Nanak (1469-1539) and continues for two centuries through a
line of nine successors, terminating with the death of Guru Govind Singh in 1708.
Guru Nanak gave to Sikhism its basic theological concepts and three of its most important
institutions i.e., the Sangat (congregational meetings), the Pangar (community kitchens –
Langar) and the institution of Guruship. To him true spiritual life meant the performance of
duties in the world, and facing and solving the moral and spiritual problems of mankind. All
the Sikh Gurus regarded the householder‟s life as the highest of all.
Guru Govind Singh, immediately before his death, declared that with his departure the line of
personal Guru would end and thereafter the function and authority of the Guru would vest in
the Scripture (The Adi Granth) and in corporate community (the Panth or Khalsa).
Sikhs have been given five emblems. They must grow hair and beard as the emblem of the
Indian Ascetic, a comb to keep their hair tidy, they must always be in soldiers‟ breeches the
kaccha, they must wear a kada in the arm and must keep a kripan to be used only for defence.
All the Shiks must have the name Singhs.
A pure Khalsa Sikh never raise his arms against the weak, never molests a woman and regards
all human beings as his brothers.
Guru Nanak emphasised that Ram and Rahim, Hindu and Muslim names of God designate
one and the same God.
Guru‟s Word is the Sound current of the Naad; the Guru‟s Word is the Wisdom of the Vedas,
the Guru‟s Word is all-pervading (Sri Guru Granth Sahib, p. 2)
There is no other as Great as You. Age after age, You are the One Forever and ever, You are
the One. (p 11).

One who does not know the Lord who created him; comes and goes in reincarnation over and
over again. (p 50)

Thing Being is One. He is eternal. He is immanent in all things and the Sustainers of all
things. He is the Creator of all things. He is immanent in his creation. He is without fear and
without enmity. This Being is not subject to time. He is beyond birth and death. He is Himself
responsible for His own manifestation.

God who dwells in all creation has His particular abode within the human heart.

Baha’i - A new Faith

The BahA‟I faith is the youngest of the world‟s independent religions. Its founder,
Baha‟u‟llah (1817-1892), is regarded by BahA‟Is as the most recent in the line of Messengers

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of God that stretches back beyond recorded time and that includes Abraham, Moses, Buddha,
Zoraster, Christ and Mohammad.

The central theme of Baha‟u‟llah‟s message is that humanity is one single race and that the
day has come for its unification in one global society. God, Baha‟u‟llah said, has set in motion
historical forces that the breaking down traditional barriers of race, class, creed, and nation
and that will, in time, give birth to an universal civilization. The principal challenge facing the
peoples of the earth is to accept the fact of their oneness and to assist the processes of
unification.

Baha‟u‟llah taught that there is one God whose successive revelations of His will to humanity
have been the chief civilizing force in history. The agents of this process have been the Divine
Messengers whom people have seen chiefly as the founder of separate religious systems but
whose common purpose has been to bring the human race to spiritual and moral maturity.

Humanity; is now coming of age. It is this that makes possible the unification of the human
family and the building of a peaceful, global society. Among the principles which the BahA‟I
faith promotes as vital to the achievement of the goal are
 the abandonment of forms of prejudice.
 assurance to women of full equality of opportunity with men.
 recognition of the unity and relativity of religious truth.
 the elimination of extremes of poverty and wealth.
 the realization of universal education.
 the responsibility of each person to independently search for truth.
 The establishment of a Global commonwealth of nations.
recognition that true religion is in harmony with reason and the pursuit of scientific
knowledge.

BahA‟Is believe that there is only one God, the Creator of the universe. Throughout history,
God has revealed Himself to humanity through a series of divine Messengers, each of whom
has founded a great religion. The Messengers have included Abraham, Krishna, Zoroaster,
Moses, Buddha, Jesus, and Muhammad. This succession of divine Teachers reflects a single
historic “plan of God” for educating humanity about the Creator and for cultivating the
spiritual, intellectual, and moral capacities of the race. The goal has been to develop the innate
noble characteristics of every human being, and to prepare the way for an advancing global
civilization. Knowledge of God‟s will for humanity in the modern age, BahA‟Is believe, was
revealed just over one hundred years ago by Baha‟u‟llah, who is the latest of these divine
Messengers.

Priesthood and the King

A study of Human Development does indicate that the two points of power have been the
King who is the leader selected or hereditary or accepted as a victorious person; and while the
other front of power was usually the Priest, the Brahmin in India; the Amon priest in Egypt
and selected shamans or magic workers etc. who acted as the priest for carrying out rituals and
assisted the king in many a matter of administration even in warfare. This combination suited

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both the parties as the priest was assured of patronage and support to carry out his self
assigned tasks and the king depended equally on the priest to win the help of the people
through the enactment of various rituals, which satisfied the common man. There may have
been tussle between priesthoods who wanted to displace one with another or even between
Kings by winning over the priests who could and did exercise their influence in such matters,
but the dual ruling combination worked for many years much to the satisfaction of the
Kingdoms in the early stages of history.
Things began to change with the development of pristine philosophy in the Indian plains
when amongst the priesthood the association with the King assumed the role of an adviser
without direct association with the administration for which the role of ministers were defined
and developed. It was, as in India, in the ancient times when Brahmins could be minister and
or priests according to their inclination and both were associated with the King for better
administration of material and spiritual aspects. Palace intrigues must have occurred with
power seeking and power-loving individuals in earlier roles and. this division of responsibility
worked fairly well with funded education system training up people for carrying out their
tasks. In India usually both these positions were held by Brahmins, one the religious ritual
course and the other the administrative adviser the Mantri, the minister. One can note the need
for positions arose out of necessity.
Though Buddha‟s preaching questioned the oppression of the Sudras and the other issues
of God Head it did not question the need for education and good advisor to the King and the
expanded dual form remained throughout the early years in India as also in the contemporary
kingdoms in Middle East till basic questions were raised by the Greek philosophers who
advocated rational thinking. This movement lead to the development of a school of
intellectuals who also served as teachers like Socrates, Plato and Aristotle who did not care
about religion as much as freedom of thought and rational thinking and expression. Both in
Greece and Rome, religion was certainly practiced but it had very; little to do with
administration and confined it self to rituals and appropriation of the respective Gods in times
of stress and crisis. Aristotle was the teacher of Alexander the Great and that must have
influenced his thinking and attitude positively. This culture served the growing nations in
Europe, free rational thinking and non interfearence of religion in matters of administration
though in Egypt and in early Roman Empire as also with Alexander the concept of King being
regarded as representative of God prevailed.
Things changed with in ingress of Christianity and the establishment of Church. The
Christian church set up its own organisation following the pattern of Buddhist monk
organisation, which was state, supported. It may be stated that Shankara in his effort to
revitalise Hinduism also established “Dosanama Sampradaya” the ten organisations large
maths that looked after each of the ten divisions. History does not, however, indicate any
interference of this maths (organisations) to have interfered in any administrative matter of the
kingdom, which certainly supported these religious activities, it being accepted, that the king
always wanted to be on the right side of the maths. In Europe, however, the churches built up
their own organisation, own assists, own assists, own activities and became a separate front
head of power. This is apparent if one looks at the Roman Catholic branch of Christians. The
Pope who is the religious leader has his own capital known as Vatican in Italy under his
administration with its own law and order arm, political independence, and with its great
wealth arising out of religious offerings and various other means like granting exemptions on
various wrong doings etc. which was strongly protested against leading to the breaking up of

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groups amongst Christianity leading to Latin church, Greek church, Orthodox church,
Protestantism and various other denominations. It is to be noted, however, with the
assumption of more and yet more power, the Papal house did frequently interfere with the
administration for its own gain and importance, as the case may be. In short, besides religion,
it did enter into the realm of politics and the fight between Kings and cardinals (Princes of the
church) became a matter of great concern in the administration and even in Politics. The war,
though undeclared between the kings of various countries in Europe, all Christians, went on
for many years some times the church losing and sometimes the state losing, till the 16 th
century when a truce was declared and interference of Pope in politics was supposed to be
defused. But the power of the church in the moral area was restored which even today is
respected and Pope is considered as a Head of the State Vatican situated in Italy near Rome
with its own police, revenue post and communication. It has become a great tourist attraction.
However, the story of conflict does not end at this point. In many countries, religious
leaders are either backing or sponsoring candidate of other parties or are establishing political
parties to ensure their power over administration. This has mostly happened in Islamic
countries with the Sia-Sunni divide. Iraq a Sunni country and Iran Shia dominated the country
with Saudi Arabia trying to modernise Islam, which exercise or try to exercise political control
over administration. Pakistan, for instance, owes its very existence to its religion though it is
intriguing to be recognised as secular. India, on the other hand, is a secular country by its
adopted constitution but political parties do exist with religious backing like Bharatiya Janata
Party (BJP), which grew out of Hindu Mahashabha of Hedgewar fame and RSS a strong
Hinduised party. Thus it seems that religion has interest in assuming political power not in the
sense of the Roman Catholic Papal system in its hay days but certainly has expressed its
intentions clearly when BJP in association with its allies governed India for a period and is
once again trying to gain control. It must be admitted, however, that it has not changed the
secular nature of the state but has certainly adopted policy framework on Hindutva.
Things have now changed and there is a feeling the UPA government in India has been
appeasing the minorities for their vote.
Looking back, the hereditary aspect of kingship must have also originated from the
congruence of the all conquering king who established the linege and priests who advised
them. The first king, the first priest councillor who then advised him to train his son properly
so that he could be a good monarch, the assumption being that coming from the conquerors
linage, and being well trained, he would be above all pettiness and would be as able king. This
presumption was true in many occasions in India but was not universally accepted and led to
many a disaster as history has shown.

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 Chapter V
Political Economy, Trade and Commerce, Law and Ethics

The state of economy along with political, social and religious forces has impacted on the
growth of civilization to a great degree. The political economy along with trade, development
and enactment of law and ethics, therefore call for a special study to identify and emphasis
their impact. Since reliable data for the pre-Christian era is not available, it being mostly
guesswork, it has been suggested that in-depth analysis should start from A.D. and more so
over the last 500 years when the development has been the most pronounced.
Picture of the political turmoil and the sporadic growth have been presented in brief. It
has been argued that wars fought over the years to establish suzerainty and/or for religion have
been the main causes for the conflicts with precious little being added to the process of human
development. This argument is best answered by looking at the broad picture from different
angles: the economic, the religious, the cultural, education in science and technology areas as
also in agriculture and health along with environmental issues as have arisen. Chapter IV
seeks to cover the world economy as a whole and then individual country economies that have
played a major role or are supposed to play in the near future.
In the worldwide economic analysis, references have been made to the decline of the
„rich‟ countries at the start of AD era. China and India had between them over 60 per cent of
the world trade at the start and compeated through the first millennium of A.D. era with each
other in occupying the first place both in trade and wealth. The level of trade during the early
years spread out through the land route and the sea route and was the prime driver of the
growth of civilisation and even cross-fertilisation of ideas generated. As indicated, the growth
of Indian civilization based on Mehrgarh and the Indus Valley civilization had reached rare
heights of philosophy and in industry especially in metal working, agricultural products and
basic sciences like astronomy, physics and chemistry and in health sciences like surgery and
medicine, which is commendable. All these skills and medicinal herbs were exported from
India as also from China through the land routes and later by the sea route increasing
commerce and trade to a notable degree.
The development of Mehrgarh as a trading post is a case in point. This trend continued
through the first millennium AD and it was only after the industrial revolution in UK and the
rise of forces of production in Europe and America that the growth of trade and commerce
between India, China and other countries started loosing their share of the world trade. The
growth of colonies and the plunder of USA, Mexico and Peru further accelerated this phase in
particular. This phase has been clearly established in the trend analysis in the previous chapter.
China fared better in the gradual decline because of its steel frame of administration, which
retained its hold throughout, even during the brief Mongol occupation and the fiscal system
though modified over time remained in place. India, on the other hand, was much more open
to looting and the collapse of several administrative machineries with loss of revenue and
wealth. During the Hindu period there was growth but this was not stable as also during
Muslim occupation when administrative framework was well established continued over a
period and the economy was on a steady growth path. During the British regime, however, it
was a one-way traffic with export banned from India and with imports increasing by leaps and
bounds and this diminishing India‟s financial strength and reducing it to near poverty. China
would have suffered the same fate but escaped the total collapse in financial terms because

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Sun Yat-sen and his political allies saved the situation with American help. India won its
independence in 1947 about 60 years back and opted for a Russian methodology of central
planning though it was identified as mixed economy, socialism with market economy. This
stunted the growth to 3-4% GDP growth per annum, derisively termed as “the Hindu rate of
growth”. With 2-3% growth of population per annum, the real growth was hardly 1% per
annum. It was only in 1990s that Prime Minister Narashima Rao with Dr. Manmohan Singh as
the Finance Minister introduced open economy. Though the following government was run by
BJP (Bharatiya Janata Party), earlier the opposition party, the open economic policy was
continued. The next Congress-led government with Dr Manmohan Singh as the Prime
Minister further opened up economy with GDP attaining a growth of near 9% per annum
touching 10% with considerable improvement in India‟s economic status and recognition.
Witness the success achieved in the Nuclear Deal with USA and the Nuclear Supply Group
and the re-activation of nuclear civilian power potential and the commerce that could grow out
of this agreement. There are many hurdles yet to cross, specially political ones and the world
is watching India and China, which are the only two with growing economy that can bring
about progress in the world economy as indicated in the futuristic projection given below.

World Economy

Prof. Angus Maddison of Gromingen University has presented a brilliant and well-argued
scenario of the world economy in his recently published book in 2007 (Contours of the World
Economy 1 – 2030 AD published by Oxford University Press). It has been argued therein as to
who all were the drivers, what were the levels achieved and have drawn conclusions from the
trends to predict a scenario of the near future. In the first millennium, he has analysed the
impact of the Roman Empire on which he has collected sizeable backup of documentation and
indicated why Roman Empire lasted that long and what was its contributions, while
acknowledging the pioneering role of Greece, which initiated rational thinking, in introducing
the concept of organisation, governance and military strategy and tactics by Alexander to
transform the than existing social structure. He allots fulsome praise to the Roman civilization
for the development and introduction of law and order, for the urbanization move, which had a
very positive social impact to its citizens, and the very concept of Roman citizenship, which
was a great social honour along with the social services like roads, bridges, ports and medical
services and thus held the empire together till its very expanse caused its disintegration. He
has commented on the influence of the Etruscans who mostly originated from Asia Minor, the
Phoenicians/ Carthaginians who originated from Lebanon who fought several battles with
Rome, which ultimately obliterated this civilization. Because of lack of economic data before
the birth of Christ, he has chosen to avoid that period and has started his analysis from 0 AD.
The distinctive features of the Roman Empire have already been commented on but it
must be recognised that Roman Empire was based on “Slave economy” though selected
democracy was practised, with the appointment of magistrates, senate membership to appoint
the rulers though later it adopted kingship. Rome had a pragmatic policy towards opponents
and leaned towards adoption of different cultures and coexistence though the brutal war with
Carthage was an exception. Though some data on these economies has been worked out,
Maddison chooses to concentrate on AD period to present his findings as under. The tables
have been rearranged to bring out the salient features.

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 1. Level of GDP (1990 International Dollar, Billion)

1 - 1000 -1500 - 1820 - 1870 - 1913 - 1950 - 1973 - 2003

West 14.9 11.7 45.3 173.4 479.0 1485.2 3032 8155 17565
Asia 76.7 84.9 161.3 412.5 425.6 680.7 992 3864 16555
Rest 13.8 23.8 41.9 108.8 206.4 567.4 1313 4024 6793
World 105.4 120.4 248.4 694.6 1111.2 2733.3 5337 16022 40913
2. Population in Millions
1 - 1000 - 1500 - 1820 - 1870 - 1913 - 1950 - 1973 - 2003
West 26 27 60 144 234 272 481 610 741
Asia 168 183 284 710 765 978 1383 2249 3734
Rest 32 58 94 188 273 440 662 1057 1803
World 226 267 438 1042 1272 1791 2536 3916 6279
3. Level of Per Capita GDP (1990 International Dollar)

1 - 1000 - 1500 - 1820 - 1870 - 1913 - 1950 -1973 - 2003

West 569 426 753 1202 2050 3968 6297 13379 23710
Asia 456 465 568 581 556 696 717 1728 4474
Rest (approx) 453 451 538 580 615 910 1800 2400 9300
World 467 450 567 667 873 1526 2113 4091 6516
World-wide
Spread 1.3:1 0.9:1 1.4:1 2.1 :1 2.3:1 4.5:1 5.6:1 5.6:1 5.7:1
International
Spread 1.4:1 1.2:1 1.9:1 2.9:1 4.8:1 8.2:1 13.0:1 11.5:1 18.1:1
4. Growth Rate
Per Capita GDP
1 –1000 1000-1500 1500-1820 1820-70 1870-1913 1913-50 1950-73 1973-2003
West -0.03 0.11 0.15 1.07 1.56 1.24 3.33 1.93
Asia 0.00 0.04 0.01 -0.09 0.52 0.08 3.87 3.21
World 0.00 0.05 0.05 0.54 1.30 0.88 2.91 1.56

Population growth
1 - 1000 - 1500 - 1820 - 1870 - 1913 - 1950 -1973 - 2003
West 0.00 0.16 0.27 0.98 1.08 0.70 1.04 0.65
Asia 0.01 0.09 0.29 0.15 0.57 0.94 2.14 1.70
World 0.02 0.10 0.27 0.40 0.80 0.93 1.93 1.5

GDP growth

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 1 - 1000 - 1500 - 1820 - 1870 - 1913 - 1950 -1973 - 2003
West - 0.02 0.27 0.42 2.05 2.67 1.95 4.40 2.99
Asia 0.01 0.13 0.29 0.06 1.10 1.02 6.09 4.97
World 0.01 0.15 0.32 0.94 2.12 1.82 4.90 3.17

The tables indicate that up to 1000 AD, the per capita income increased at a slow rate but
from 1000 AD, the gap increased between advanced countries and others to a high order of
18:1 and become wider between poor and affluent countries. It can also be surmised that the
change, which occurred from 18th century onwards and to the “so-called” Industrial
Revolution in Europe, was but a gradual process. He has also indicated that the improvement
of economies in China and India since 2003 will reverse the trend in the future and will
increase their share of the world trade, which was as high as 60% earlier and fell to as low as
9% in the 1980s. He also indicates that the share will rise to 50% plus in the next two decades.
The so-called western countries increased their real per capita income 2.8 folds between
1000 to 1820 and 20 fold since then to 2003, whereas the rest of the world grew to only 7
times. In the last 60 years, however, there have been major changes in the world GDP. 1950 to
1973 was a golden period for mankind and unmatched prosperity with an annual increase of
about 5% with per capita GDP increasing by about 3% and export by about 8% and then there
was a drop due to slackening of technical improvement. This brings in the “leader”,
“follower” concept in technology up-gradation and differentiation between countries.
The driving force that explains the acceleration of growth in the western countries since
1820 can be identified as under:
Explosive growth in the stock of machinery and equipment per head which rose by a
multiple of 155 times in UK and 372 times in USA and 3323 times in Japan. The stock of non-
residential structures rose 21 times in UK, 33 times in US and 89 times in Japan. 20 times
more powerful machinery was in use and power consumption increased manifold. The
efficiency of energy consumption increased considerably and this led to improved low cost
high quality output. Maddison identified the following trends.
1) Fundamental recognition of the fact that human capacity is capable of transforming the
process of nature through rational investigation, analysis and experimentation. Witness the
growth of universities in the fifteenth century all over Europe and the expansion of education
and printing and wide circulation of books along with increase of experimentation.
2) The importance of urban trading countries and centres and the massive growth of
shipping and trade. This fostered centre pioneering skills, adventurism and development
including law- making protecting innovativeness and property possession. This further led to
the development of financial management skills and financial institutions opening up credit
and insurance and risk-taking activities.
3) The adoption of Christianity as a state religion, which led to the change of the
institution of marriage, monogamous character which led to improvement of inheritance and
this prevented the breaking down of property into uneconomic lots.
4) The distinctive feature of the development of system of nation states in close proximity
these creating laws for governance, taxation and law and order which were supportive of
development. This further supported competition and initiated innovative measures as also
cost competition and quality improvement. It has to be agreed, however, that frequent changes
was obstructed the economic growth though mercantilism concerns assisted in expansion and
growth of economy.

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 Maddison further comments that industrial revolution did not arise out of vacuum as
argued to in Toynbee‟s hypothesis and Rustow‟s, who propagated stages of economic
expansion based on „take-off‟ and other stages. He opines that during 1000 -1500 there was a
regular growth of entrepreneurial skills in the area of ship design, navigation and
instrumentation which served as the font head of the Industrial Revolution; and as evidenced
he has presented world trade statistics which indicates that over 1500-1820, the average
annual growth rate was about 1% which rose to above 4% in 1820-1870, dipped down to 3%
over the next three decades and then rose to 6% in the later nineteenth and early 20th century,
followed by world GDP and rose again to 7%. Between 1470 and 1820, Europe‟s merchant
fleet went up about 17-fold and against population growth six-fold because of technical
progress in ship design, sails and rigging, improvement in instruments and navigation, in
cartography and in the knowledge of geography, winds and currents. This expansion was
against the scenario of cost and risk reduction and safety in voyage. The discoveries of the
Lateen sail by the Arab, the Compass, the wind currents, the depth records etc. all matured and
increased in the 12th century thus improving the knowledge conditions prevailing. In the
Roman period maps were painted on the reverse of ox-hides or sheepskin and these were
known as portalans (charts which showed the position of Ports, anchorage, tides, depth and
most importantly wind movements) to guide the navigation. Instruments for measuring
latitude and longitude were also developed and put to use effectively. These features were first
added to the Venecian ships in Europe which reduced travel time and costs all around. The
method of construction of the ship also changed from hull being constructed first to the keel
and the rib to be constructed first and then the body around it then making it watertight with
fibre, the process known as caulking.
The Venecian vessel designed for natural oar propulsion was changed for wind propulsion
and these were known as “Caravel”. The Portuguese excelled in this design and development
phase and by the 15th century they became the master seamen and traversed distant seas with
ease. Wind driven or the Lanteen sail replaced the oar driven vessel.
All these development occurred around the 16th century with basic science also being
involved. Copernican hypothesis discarding Ptolemy‟s geocentric approach though
vehemently opposed by Churches was supported by Galileo‟s observation by his design and
construction of the telescope assisted by Brahi the amateur astronomer. This movement
shifted to UK where Newton published his Principia in 1687 followed by the establishment of
the Royal Societies and a sizable expansion of knowledge in astronomy and medical sciences
followed.
The ultimate was the work of Halley (1654-1743) a master of astronomy who discovered
Halley‟s comet and predicted its return, led to measurement of earth‟s atmosphere and wind
flows; monsoons and preparation of the Almanac.
Maddison then comments on the European transformation of the Americas and observes
that though the European settlers were the principle cause of the near ruin of the Nature, they
took in their stride the challenges and opportunities available and transformed America so
much so that it replaced UK as the wealthiest nation in the 19th century itself and has retained
that position excepting yielding to Japan for a while. He also draws a comparison between the
British, the France, the Dutch, the Portugal and Spain in their effort to colonise America and
the policies followed by them and the relative impact.
The interaction between Asia and the West over the period 1500-2003 was studied and he
opines that this expansion was possible because of the development of European ship design,

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navigation and naval weaponry. He also stresses the role of lawmakers in Britain, a legal
system, which gave protection to property and earnings of the entrepreneurs or agencies, like
East Indian Company (EIC) of Great Britain and Dutch Far East Company (VOC), the French
East India Company and others. Since in Asia as distinctly different from Africa and America
there was little scope of acquiring land, the start was with trade, which later led to the
development of Empires. The trade was usually for Chinese and Indian handicrafts, textiles,
silk and spices and jewels in exchange for noble metals like gold and silver, which was
obtained in plentiful from either Africa or USA. USA became an independent colony and in
Africa, the capture of South Africa from the Boers (Dutch) by the British followed.
Some of his observations on British rule over India and its economic impact may be
summarised as under:
Replacement of the Monghal overload system by a Zamindary system with some saving in
administrative work transformed the British role in India when British company took over.
But the per capita earning fell because of dislocation and British greed. The figures are given
below:

Comparative Micro-economic performance of India and UK (1600-2003, 1990 international

Dollar)

1600 1757 1857 1957 2003

Per capita GDP
India 550 540 520 618 2160
UK 974 1402 2757 6604 21310
Population
India 135000 185000 227000 414000 1049000
UK 6170 12157 28186 49519 60273
GDP (million, net Dollars)
India 74250 99900 118040 255852 2267136
UK 6007 17407 77717 327044 1280625
Maddison comments that the drain of resources to UK as a consequence of foreign rule
over India could well be about one fifth of India‟s net savings. Even more important was the
fact that 5% of the National Income went to British personnel in India. These accounts could
have helped India during the 200-year rule, which was a substantial amount. This is supported
by the figures for per capita Balance which; from a positive figure of 0.3 in 1875 dropped to -
0.67 in 1947, the year of independence. British influence on Indian agriculture, transport and
education and governance has also been commented upon.
A similar analysis on China, however, indicates a different picture. China was never in a
vacuum as in India and, therefore, could preserved its integrity till 19th century when the
administration disintegrated and the import of Bengal opium by the British via Hong Kong
nearly led to a collapse of China and the partitioning on the state amongst the various foreign
nations who were trading with China. They followed the same tactics. Controlling the port and
stalling off export thus weakening China‟s economic strength. However, in this case, the
attempt failed because Nationalist China regrouped and forced the merchants and the
opportunists out of the country.

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 The story of Japan is, however, very different. Japan had a closed economy. Japan opened
up after US Commander Perry‟s siege but was very cautious in allowing western influence
excepting learning about technology and machine building. In fact, it learned its lessons
through Chinese books and decided to send several thousand students to foreign countries to
study science and engineering and saw to it that they came back to build industry in the
mother country when all assistance and capital was given to them. This was the reason why
Japan grew so fast and also adopted the policy of colonial expansion in Taiwan, Korea,
Manchurian China to provide sufficient raw material for their homegrown industry. Maddison
remarks that this is what separated Japan from other Asian countries and helped Japan‟s
growth. In a masterly analysis, he worked out macro-economic forecast of the states of the
economy of the world up to 2030 on certain assumptions as elaborated and the picture that
emerges is given below:

Per Capita GDP The World and the Major Regions -- 1950-2003
Regions Level in 1990 International PPP $ Average annual rate of change
1950 1975 1990 2003 2030 1990-2003 2003-2030
Rich 5648 13082 18781 23345 37086 1.69 1.73
China 448 838 1871 4803 15763 7.52 4.5
India 619 853 1309 2166 7089 3.93 4.5
World 2113 4091 5162 6516 11814 1.53 2.23

It may be noted that he has projected sharp improvement in per capita GDP for China and
India and forecast that both these countries would regain their lost share of the world market
as also economic status in the world ranking.
The GDP figure and their growth rate are given in the table below expressed in PPP
corrected international dollar.
Growth of GDP. The World and the Major Regions -- 1950 -2030
Regions Level in 1990 International PPP $ Average annual rate of change
1950 1975 1990 2003 2030 1990-2003 2003-2030
Rich 3193 9398 15020 30265 35120 2.23 2.06
China 245 739 2124 6188 22983 8.56 4.98
India 222 495 1098 2267 10074 5.73 5.08
World 5337 16022 27136 40913 96580 3.21 3.23

Details of this analysis and the method adopted for projection is discussed in detail in the
text along with the bases of all assumptions.

Economic History of the World with Special Reference to India

Indus Valley Civilization boasted of an advanced and thriving economic system with
practices of agriculture, tool making, domestication of animals and weapon making with
bronze, tin and trading extensively, using riverboats. India had a significant urban population

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and the villages were self-sustaining. Besides agriculturists, food processing, textile weaving
and crafts were practiced.
Religion was Hinduism (an identity bestowed by the Aryans to the Vedic Religion),
which influenced on economic matters Varna - caste system, apprenticeship, skill
development, skilful traders, religious tour and pilgrimages. Family business – pooling of
resources, joint family system, large fields were not broken up, as land belonged to family.
Absence of state intervention organizationally – gana, pani, puja vrata, nigame and. sreni
were the subdivisions of the business organization as apart from Varna. Nigama, pani and
sreni were the most powerful amongst traders and most probably were para-military in nature.
Sreni had a great similarity with the modern cartels or guilds and existed from 8th century BC
to 10th century AD. The organization was very powerful amongst artisans and also arbitrated.
Srenis had large number of members whose activities could be centrally managed, very akin
to the present day Chambers, a self-regulating arbitrary body.
Barter was the principle mode of business till it was replaced by coinage based on silver
ingots as Indian economy was silver based.
Maurya Empire consolidated India for the first time and trade and commerce became safe
and secure. Roads and infrastructure was provided. The treatise Arthasastra by Chanakya was
written during Chandragupta‟s regime and held forth on Raja Dharma, politics, civics,
economics and most importantly administration. Revenue was collected and expenditure
controlled
The economic situation of Maurya Empire is comparable to the Roman Empire, which
arose several centuries later. The major difference was in Maurya time Srenis were already
existing and hence private organizations were allowed to exist while on the Roman model,
State set up most of the trading organizations since private organizations were absent.
GDP Estimates: (Angus Maddison World Economy a Millennium Perspective)
.
India had the largest economy in the 1st century and 4th century with a 32.9% share of the
world GDP and 29.9% of World GDP respectively. However by the early 16th century China
had taken over the leadership. The position during the Moghal Empire is given below:
.
Mughal Empire:
1525 - 1550 - India 2nd largest economy in the world 40% of China GDP
1550 – 1575 – 2nd largest 50% of China
1575 – 1600 – Emperor Akbar‟s treasury in 1600 was ₤17.5 million in contrast to Great
Britain‟s total income of ₤16.0 m (in 1800) .60% of China.
1600 – 1625 – 2nd in the world, 70% of China
1625 – 1650 – 2nd in the world, 80% of China. Emperor Shah Jahan‟s treasury ₤25 million
1650 – 1675 – GDP is estimated at 90% of China and 2nd in World GDP.
1675 – 1700 – GDP about 90% India was under the Mughal rule was in well monitored
and well governed with tax collection. Aurangzeb‟s annual revenue ₤100
million in 1700 (twice that of Europe then) India was richest in world
GDP with China in 2nd place and France in 3rd.
1700 – 1725 – China, India, France - Collapse of central authority in India with the fall of
Mughal Empire set in slow but steady decline by end of 1725. India
dropped to 2nd position 90% of GDP of China.
Nawabs, Marathas and Nizam

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1725 – 1750 - Mughals we replaced in North by Nawabs; controled by Marathas and
Nizam in South India slipped back to second place. 80% of China and then followed
by France
1750 – 1775 – About 70% of India as civil services was still dominated by Muslim officials
though Maratha rule covered 34% and Nizam about 17%. China was the richest. India
was second with 70% of China‟s GDP followed by France.
British Colonial Rule
The British colonial rule created an institutional environment that did stabilize law and
order. However, the new rulers stifled Indian Trade, abolished craftsmanship, developed
infrastructure for shipping out Indian raw material instead of manufactured goods, exploited
resources and by the end of the colonial rule, India was reduced to one of the poorest nation
and a totally stagnant economy, failing agriculture and manufacture, leading to frequent
famines, malnutrition low life expectancy and largely illiterate people.
Angus Maddison reveals that India‟s share of world income went down from 24.4% in
1700, compared to Europe‟s share of 23.3% to as low as 3.8% in 1952. This fall was partially
due to the colonial policy of the times as also the rise of Europe and America in
industrialization and in technology as also the drop in silver prices in comparison to Gold.
India was silver based and Europe on gold.
With Europe shifting to gold standard and India remained stuck with silver standard with
the flooding of American silver ex-Mexico, the market collapsed. India under colonial rule
could not move to gold standard as did countries like UK. The loss was astronomical with the
fall of silver price; Indian rupee exchange rate also fell with a profound impact because of this
happening.
Silver Price Rs. Exchange
1870 60% oz troy 23%
1880 51% oz troy 20%
1890 47% oz troy 18%
1893 39% oz troy 15%
1775 – 1800 – GDP in India was 80% of China with France following, though the Company
reported annual revenue of £ 111 million all this went to support Napoleon war.
1800 – 1825 – Indian GDP 50% of China. 3% of Indian textile market captured by UK.
Reverse trade had started.
1825 – 1850 – China still remained the richest followed by UK and then India. Industrial
revolution shot up England to top of Europe and it became second largest in the world.
India 40% of China. British cotton textile reached 30% of Indian market.
British Crown Rule
1850 – 1875 – The British rule made some changes in the administrative structure of India and
high caste Hindus joined the administrative jobs as also in the infrastructure, which
was expanded. Nothing was however done to revive trade. In fact, the textile trade was
reversed with UK supplying as much as 55% of Indian market. USA advanced and
occupied the first position with USA, UK and then India with it being 30% of China
and 60% of USA.
1875 – 1900 – USA became worlds richest country followed by China, UK, Germany and
India. Collapse of the Queng Dynasty triggered China‟s fall and the GDP of India in

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 1900 was about 20% of USA. Crown treasury reported annual revenue of £ 122
million, in 1900 thus indicating an annual growth of 0.1% per year of the century.
1900 – 1925 – USA became the largest economy followed by UK, China, France, Germany,
India and USSR, with GDP being 10% of USA. Zoroastrian businessmen/Group like
Tata, Godrej began to dominate textiles, mining, durable goods competing with UK
products. Crown treasury reported £125 million revenue in the turbulent first quarter.
1925 – 1950 – USA was the largest economy following by USSR, UK, China, France,
Germany and India. Indian GDP was 7% of USA in 1950. The newly independent
government reported annual revenue of £334 million in 1950 thus registering an
annual growth of 4%. In contrast Nizam Asaf Jha VIII of South India was widely
reported to have amassed a fortune of £ 668 million in 1950. About one-sixth of the
national population was urban.
1950 – 1975 – Nehru‟s socialist policy was initiated. USA was the leader followed by USSR,
Japan, Germany and China. Indian GDP was estimated at 5% of USA.
Soviet Russia‟s Five-year plan model was accepted in India with mixed economy as the
central theme with the commanding heights of economy, steel, defence, communication,
railways, air transport, etc., taken over by the government including Banks, Life Insurance and
other units which were nationalized. Massive investments were undertaken in heavy industries
on the supposition that the lower strata will benefit from the trickle-down affect. This never
happened and India was in dire straits in spite of World Bank loans and other foreign aid
flowing in. However, expenditure in health increased the life expectancy and infant mortality
was reduced resulting in population explosion with population growing at 2.5% and GDP
growth at 2-3%, the economy was stagnant and serious fiscal problems arose. US aid in the
form of PL 480 saved families but malnutrition prevailed. After Nehru, Indira Gandhi
followed the same economic policy with hardly any improvement except in the defence area
where Indo-China war and three wars with Pakistan had to be fought with the birth of
Bangladesh after truncation of Pakistan.
Under Narashimha Rao and Manmohan Singh‟s leaderships in 1991, the controls were
relaxed and economy was set partially free. From the Hindu rate of growth of 3%, GDP
growth has increased to 8-10% per annum and economy has improved by growth in trade
exports which had dropped below 1% of the world trade is now about 1% also facing serious
economic problems with inflation which is rampant
However, the value of rupee, which increased, has once again started to fall and credit
worthiness has been adversely affected. The government of Manmohan Singh is facing serious
political problems and only time will tell whether the government will be replaced or not. It
has been richeted and is vigorously following its open market policy.

Economic History of China

According to some Western and Indian sources, China was the largest economy in earth
for most of the recorded history of the past two millenniums until the 15th century. It also had
the highest economy per capita and was the world‟s technological leader. As late as 1820,
China accounted for 33% of the world‟s GDP. Barely hundred years later, the table had
turned. Early 20th century China accounted for only 9% of the world GDP. China had been
bypassed by the Industrial revolution.

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Qumg Dynasty 1625-1650
China was the world‟s largest economy. Demand for Chinese porcelain and tea, largest
market for Spanish Silver from its colonies, India and France followed:
1650 – 1675 - China remained the largest economy followed by India France.
1675 – 1700 – India became the largest economy followed by China and France
1700 – 1725 - Following the collapse of the Mughal Empire, Indian economy was adversely
affected. China regained first position, India decline
1725-1825 - Status quo China, India, France
1825-1850 - China, UK, India, Industrial revolution in UK
1850-1875 - China, USA, UK, India
1875–1911- USA became the largest economy followed by China, UK, Germany, India,
Collapse of the central authority of the Quamig Dynasty led to China‟s
collapse, which now was only 50% of USA

Nationalist Republic
1911 – 1925 – USA, UK, China, France, Germany, India, USSR. China was only 20% of
USA‟s economy.
1925 - 1950 - USA, USSR, UK, China, France, Germany, India, Japan, China had only
10% of USA
Peoples Republic
1950 – 1975 - USA USSR, Japan, Germany, China, Mao Ze Dong. Cultivation arrested the
downslide. China only 10% of USA in 1975.
1975 – 2000 – USA, Japan, Germany, China only 10% of USA. Deng Xiaoping
Economic reforms . Export oriented economic policies arrested fall.
2000 onwards- USA, China, Japan, Germany.
Economic History - 221 BC to 1800 AD
China has the continuous recorded history in the pre-modern world. China‟s unity started
not by compulsion but by geography, adjacent small kingdoms decided to join together to
establish a national identity in 221 BC. This situation with ups and downs continued till 1800
when pre-modern period started which was hastened by the First opium war (1839-42).
Empire Building
Imperial era started in 221 BC. Central authority, Empire of China, Consolidation/
unification permitted central control, mixed economy, farming handicraft, pastoralism and
development of science, technology as well as literature and art. Parallely, Hindu period of
growth in India and China prospered, the later by consent and the former by conquest.
“Hundred flowers blooming” a grand song contested by one hundred contestants. Feudalism
was widely practised. The problem of the nomadic threats from the steppes the Mongols,
Huns, Tatars, etc., provided the impetus to remain united. Not that the period was very smooth
with 80% of the population as peasants but state peasant allegiance was retained ably assisted
by the Confucian learning and meritocracy acting as a social bond for the alliance. This bond
also formed the basic foundation of China political economy and gave it prosperities
unlimited. The continuity reigned in spite of the “domestic economic cycle” of China.
The expansion of the Empire was based on the realisation that more land means more
prosperity to the peasants and state supported it. The Chinese non-feudal equal inheritance
practice, however, caused social problems like shrinkage in farm size. Along the Yellow River

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in the north the Empire expanded to reach near south (Yangtze valley) and to west along the
silk route and then to the far south in Vietnam and then far north and the west. It was to be of
interest of the land-holding peasants as also the state to expand and following Confucian
concepts; it did remain united with the state providing the infrastructure and inputs to do so.
However, that was achieved only through agrarian reforms and several green revolutions took
place over the extended period. Better seed, multi-cropping, water management, very similar
to the experience of India after independence and its green revolution which have now to be
reassessed and carried out in a positive note. It should be noted that these revolutions, which
led to more food availability, led to growth of population, which had to be controlled.
However this aspect was taken care of with some degree of success by the market expansion
and market economy that was the corner stone of China‟s economy and the imposition and
collection of tax on produce which increased China‟s wealth with higher production. It .had a
silver standard economy, and suffered like India, when more silver appeared in the world
market ex-Mexico, Peru via Spain. China, however, did not have a bad lending experience,
which Indian had, and issues like banking, credit etc., posed troubles. Both these issues
hampered the growth of the business class in the society.
The sheer excellence of Chinese handicraft was well known. It has been estimated that at
least one third of the total world manufacturing was produced in China in the early eighteenth
century and in ceramics and silk China had the world market. Besides, paper, stationery and
cooking utensils were noteworthy and all this against silver. Since China in the early days did
not import any food nor did the nation strain its agricultural base this led to the belief that
agricultural surplus led to the growth of handicraft though it did not dominate it. Gradually,
however, market cities were coming up and Science and Technology grew slowly but steadily
and made headway. Again agricultural surplus made time available for experimentation and
science and technology in early China being based more on trial and error development rather
than on theory or structured experiments grew slowly. It therefore reached its upper limit in
10th century to 15th century China when led the world in science and technology and once
again continuity and Confucian meritocracy assisted in this development. It led in transport
ships, material production, paper technology, purchasing, weaponry and medicine. Living
standards were high compared to European 1800 in material terms as also in education. It is to
be noted that it was the introduction of the Chinese art of printing that led to the spread of
education in Europe with notable results, China‟s strength as an economic entity most likely
arose from 1) rationality of private property rights–led growth, 2) high food productivity with
multiple food revolutions, 3) Chinese export capability from surplus and 4) China‟s import of
silver signifying its purchasing power and positive trade balance. Often the question is raised
as to why was China a sleeping giant! The answer seems to be; there was no compulsion and,
therefore, no need to wake up.
However, there were often food shortages and famines in the country and, therefore,
populations of the country swung violently but these shocks were absorbed over time. It was
only in the nineteenth and twentieth century that shortage of food became endemic and the
government wanted a solution. This was primarily due to population growth as the growth in
output fell short of population growth and surplus, which was a feature of Chinese economy,
disappeared. Analysts estimate that 25% of GNP in early 1900 was invested, a very high
proportions as only 16% was invested in USA as indicated technological advance did not
match up which in USA far exceeded that in China in 1980s and this problem was magnified

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by the comparative drop in quality of Chinese goods. Lack of infrastructure, further halted the
economy.
In 1948, the Communist Party came to power and its leaders made frequent changes in the
economic policies to regain and recreate a surplus situation. Mao Zen-Dong, Lin Bios and the
Gang of Four argued against with Mao, Zhou Enlai and other preaching practical economic
solutions and the Gang of Four opposing with abstract ideas. Besides the Chinese economic
framework was badly outdated and suffered from the warfare that was going on in the early
1940 with Japan expanding its empire. The incursion of Soviet troops to help did not improve
matter as they misused their presence and agriculture the mainstay of Chinese economy was
disrupted leading to food riots and inflation. The Communist government framed new rules
and arrested the decline and by 1957 inflation was controlled, currency was stabilised, trade
was started, production was stabilised and the industries under state government control were
converted to state owned enterprises with about 17% of the industry left untouched in 1952. In
land ownership laws major changes were brought about and collective farming was
introduced. Five-year plans were also framed and set to motion. 1953-1957 was the first plan,
following the Soviet model and aimed at intensive industrial growth. A large contingent of
Soviet experts was inducted. By 1956, about 67.5% of all modern industrial enterprises were
state owned and 32.5% were under joint public-private ownership. Cooperatives were formed
of handicraft and this covered about 97.1%, agriculture was supported and effectively used
after collectivisation, which though started slowly but increased rapidly between. 1955-56 and
production increased at an average annual rate of 19% between 1952 and 1957 and national
income grew at 9% a year.
In the year 1958-1960, the so termed Great Leap Forward programme was undertaken to
remove the imbalance between agriculture and industry. The surplus stock labour in the
agricultural sector was planned to be used effectively in building massive water management
schemes and this led to the establishment of Communes by combining about 30 advanced co-
operatives with an average of about 25,000 members and given the authority to acquire assets,
plan and fix production targets as also expenditure budgets to create surplus. This required a
lot of readjustment of population, which the peasants did not like. It was adversely affecting
their private lives. The experiment failed after a great deal of hardship and was once again
reverted to cooperatives. In the industrial field also the Great Leap Forward produced
spectacular results but implementation effects and compulsory enforcement was resented to
and the output started falling resulting in massive failure of the economic system of with
millions losing their fields and their lives in food shortage and resentment.
A policy of readjustment and recovery programme was initiated under the five-year
plan of 1961-65, which replaced compulsion and sought cooperation both in the industrial and
in the agricultural field. Fiscal policies were changed. Globalisation was relaxed and modified
to carry the people along and Cultural Revolution of 1966-68 was launched with the Chinese
Red Guards and Chinese army (Peoples Liberation Army) taking hold of the reins. This again
led to disaster with economic reacting negatively. Another change, and a massive one, of the
policy were made under the leadership of Zhou Enlai, and new-relaxed policies were
introduced. The Gang of Four 1974-76 were arrested, tried and sentenced and under Zhau
Enlai‟s leadership accomplished. The four modernisation as propounded by his predecessor,
modernisation of agriculture, stage-wise reorganisation of industry, administration and
defence and this was successfully carried out and the economy revised.

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 The present leadership have opened up incoming foreign investment and production of
various sectors is booming up. The leadership has successfully married Communist control of
the party with market economy and China has become an industrial giant especially with the
foreign capital pouring in money to outsource output and take advantage of Chinas low labour
wages and tax structure, as incentives are a galore. Chinese economy is now in a boom stage.
Whether it will continue to be so only time can tell but China has certainly set the scene to
regain its glory. .

Economic History of Japan

The economic history of Japan is one of the most studied phenomena because of its
spectacular growth after the Meiji revolution to its installation as the first non-European power
and after the Second World War when the island nation rose from ashes to be the world‟s
second largest economy.
Renaissance European were quite admirers of Japan when they reached the country in 16th
century. Because of its volcanic origin, it was immensely rich in precious metals and an
abundance of surface ores. Marco Polo‟s accounts cover gilded temples and palaces and
wealth. Japan was a major exporter of copper and silver. Japan had also a sophisticated feudal
society and high culture and a strong pre-industrial society and technology. Japanese
craftsmen shipped in the distant past outstanding speciality in metal smithing. This had grown
out of Japan‟s lack of resources raw material and thus their belief that they hated waste
because they could not afford it. They excelled in steel weapon making and paper production.
The Portuguese first set up trade with Japan. They brought Chinese goods, silk and porcelain,
and took on Japanese artefacts, because trade with China was forbidden. With the capture of
Macao in 1557, the trade with Portuguese became a permanent feature in Japan. This
continued till 1638 when all foreign trade was suspended on the ground that ships were
smuggling priests to Japan to spread Christianity. However, Chinese smugglers rivalled the
Portuguese, Spanish and English ships.
At the beginning of Edo period (1260-1868) followed by Meiji period, things improved
with Japan itself entering the trade with large ships built in Japan, a 500 tonner, which sailed
to the Americas to do business and elsewhere including carrying out piracy, which was quite
common.
During the period of isolation, however economy enjoyed stability and continued
progress. Economic development during Edo period included urbanisation, increased shipping
of commodities and growth of merchant associations. Edo, Osaka and Kyoto became large
commercial cities and Japan also picked rudiments of western sciences as it learnt about
electricity, mechanical engineering from books imported by the Dutch. They caught up on the
Western progress and industrial revolution. Japanese innovation was also encouraged.
The Tokugawa government in the mid nineteenth century first opened the country to
western commerce and influence. In the Meiji government, the leaders inaugurated a new
western bound education system for all young people, sent thousands of students to United
States and Europe and invited several thousand westerners to teach modern science,
mathematics, technology and foreign languages in Japan. This led to a period of economic
development, the first from 1868 to World War II and the second from 1945 to 1980 onwards.
The government played an active role to build infrastructure like railroads, transportation, and
ports and carried out land reforms to promote industrialisation. The government also decided

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to help private sector to allocate resources and to plan and to help the formulation of the best
possible economic conditions in which business could thrive. In the early Meiji period, the
government built factories and shipyards that were later sold off to private sector and
government did act as the chief advisor and promoter and drafted necessary legislation for
implementation.
By 1930s, the nominal wage rate was 10 times lower than the US with price level at about
44% US and a compression with the far eastern nation during these periods is also indicative.
1935s 1990s 1995
GDP/Capita $ GDP-PPP/Capita $ GDP-PPP/Capita $
US 540 5590 5590
Japan 64 1745 2354
China 18 543 563
The rate of progress of Japan is to be noted.
Before World War II, Japan had built an extensive empire in countries including Taiwan,
Korea, Manchuria and parts of northern China. Japan considered this territorial expansion as
essential for providing necessary raw material and also needed an army and navy for
protecting its channels of trade and commerce since it had built up a major industrial
infrastructure. In 1904, 65% of employment and 28% of GDP was based on agriculture but by
late 1920s, manufacturing and mining contributed 23% of GDP compared to 21% of
agriculture. During World War I, taking advantage of the war and diversion of production to
meet defence needs, Japan captured the domestic non-army needs, expanded its market and
created a trade surplus. During the great depression Japan retained its GDP growth of 5% per
annum with industries accounting for 30% of GDP and agriculture at 15%. Japan went on
expanding its so called empire and obtained coal from China, sugarcane from Philippines,
petroleum form Dutch East Indies and Burma, tin and bauxite from Malaya and rice from
Siam, Burma and cocaine from China. Its production of iron rose from 3.3 million tons in
1937 to 6.2 million tons in 1943, steel from 6.4 million tonnes to 8.8 million tons and by 1941
aircraft industry rose to 10,000 aircraft/year. It should however be noted that this economic
expansion benefited the Zaibatsu most, the industry, military complex as was known.
In World War II, Japan suffered severely and practically lost years of progress, lost about
4 million tons of shipping capacity, 6ml to 2ml, 40% of manufacturing capacity and entered a
period of shortage, inflation and economic chaos. However, the people reached the situation
and fought back just like the Germans and with American help under Gen. McArthur, rebuilt
the industry with modern equipment. Besides, with hard work and efficiency, it increased its
export manifold and paid the import costs of technology and machines without getting into a
debt position. Between 1953 and 1965, GDP expanded by 9% per year, manufacturing and
mining by 13%, construction by 11% and infrastructure by 12%. By 1965, agriculture
employed only 21% and industry 41% and Japan once again became one of the richest
countries in the world, second only to USA and technologically very advanced. In mid-80s,
Japan also changed to production mix, it developed heavy and chemical manufacturing and
became a strong producer in Automobile, ships, machine tools and robotics the world over and
strongly entered the US market and Europe.
However, it was not an easy task. In mid-1970s, Japan faced a major shock when oil crisis
struck its economy, as it was totally dependent on oil import. It took another major step in
designing and developing energy efficient systems and in alternate energy use. Besides, it

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changed over from energy hungry production to microcircuitary and semiconductor and by
late 1980s; the new growth industries were computer and consumer electronics. Japan‟s
average growth rate was 5% for year on year while that of 3% of US growth rate and though it
had a lower growth rate, i.e., from 9% to 5% it was now a strong economy capable of taking
in shocks and disturbances. It also reshaped its economy as also it‟s education system and
Japan remains today a massive successful economy by adapting decentralisation, outsourcing,
quality adherence and no wastage thus saving costs with the slogan “first time right”. It learnt
from America after it was vanquished but America now is a vanquished country in terms of
economy and Japanese might technologically and organisation wise.

Economic History of Europe

1. Britain: As the human evolution and development took place in the European land mass
also, the economic activity started with the growth and development of agriculture and animal
husbandry. In Britain, agriculture was overwhelmingly dominant though an important export
was cassiterite which is “tin” ore and from which the country owes its name. The Roman
conquest sought to capture this source. Though under William the Conqueror (1079-87),
Britain extended its interest over the European land mass specially France, it retain exported
wool and woollen product, agricultural produce and the ore. It traded for bullion, which was
not available in 14th century; because of the capture the Ottoman Empire of the silver mines,
causing some disruption; wool exports as also wood and other forest products. However,
gradually over time Britain became a textile producer and fed Europe and because of it
geography became a marine power developed the art of navigation to become a naval power
of note. It earned a sizable amount on this score. It undertook sea voyage and also traded in
the Mediterranean and practised legally sea piracy.
By 1600 century, Britain also started to colonise and its ships could sail to places like
Roanoke Island and then in Virginia Jamestown. This was the start of colonisation. By the
treaty of Union in 1707, Britain extended its influence abroad and consolidated its political
development. With the growth and spread of the Empire, Britain in London developed special
services of finance and imperial administration. This is the genesis of London being the
financial capital of the world. The organisational skill and wealth from the colonies specially
India and later from America, Britain defeated Napoleon‟s France in 1815 and it became a
global power. Royal Navy ruled the waves and the empire grew. It is also to be noted that the
industrial revolution also took place around the turn of the 17th century and added to Britain‟s
economic prosperity. The spread of British technology happened mostly during Queen
Victoria‟s reign (1817-1902) and Britain became the workshop of the world with efficiency in
textile, steel making, machine building, and innovative power and steam ships trading round
the world.
The age of Mercantilism was initiated and Britain‟s trade was encouraged at the cost of
rival countries as is well known. France, Dutch, Spain and Portugal all lost out in the bitter
race and Britain became a very rich and prosperous country, though disturbances started in the
American colonies leading to the American war of independence in which Britain lost but
India was completely drained of its wealth and was reduced to a pauper state to feed the
demand for money by the conquering country which is Britain. America, however, retained its
independence and adopting the technology that it could get and did get from Britain, slowly
but gradually captured the British market specially the textile and machinery building. The
time had come for the repudiation of the Theory of Mercantilisation and Adam Smith‟s

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Laissez-faire capitalism took over and efficiency won the day. The advantage that had grown
out of Industrial Revolution stayed with Britain and helped the nation to change its policies in
keeping with the requirement as also the benefits of large and efficient production. It helped in
European trade with France, Germany and the rest. It, however, changed its policies of
colonisation slowly but gradually to withdraw from administration but retained relationships
with the colonies.
While the first Industrial Revolution replaced the merchants by the Industrialists, the
second industrial revolution, which occurred at the turn of the nineteenth century, replaced
industrialists by financiers who provided the necessary capital for industrialisation. This was
perfectly suited to Britain which became the financial capital of the world and the more the
industrialisation the more grew Britain‟s economic power. Amalgamation of industrial cartels
led to larger corporations, merger and alliances of several firms leading to further
strengthening of technology and economies of scale and yet more power to capitalists.
However, excess production capacity build up and shrinking of demand led to the great
depression of 1873-1896. Shortage of money led to more power for the Banks to control the
industry and this lead to a further look for external source of wealth from countries like Egypt,
Africa and in the upswing of this led to the increase of foreign investment whereas
competition reduced the growth. Additional markets were created as also the nature of trade
changed to maintain the economic strength of Britain though the trends were not very
encouraging. World War I and Franco-Prussian war were a direct consequence of this
scramble for forcing market. Though Britain with the help of America in economic terms won
the World War I, it was a devastated economy and Britain went through great hardship.
Before it could fully recover, after a gap of only 20 years, the World War II had to be fought
and Britain was once again devastated. It was the lease and lends programme of America and
its active participation that saved Britain from defeat and helped it to rebuild the economy but
it never captured, even with time to regain its lost glory with no colony like India to draw
from.

2. France: The economic history of France has a great deal had its colony but it was not
worthwhile milking.
The collapse of the Roman Empire devastated the French economy. Export was based in
limited trade in silk, papyrus and silver and was carried out by foreign merchants and this was
limited to agricultural output till new crops and improvement in output recurred during 700 to
1000 AD the Gardingian age. However, continuous raids by Arab, Vikings put to stop the
process though it developed later and the city of Paris expanded dramatically. However, the
100-year War and the Black Death lead to temporary collapse of French economy.
During this period, food was extremely cheap but luxury goods were costly and the
differential earning was great in 15th century. An artisan would earn 30 cents (Livre) a year; a
great noble could have revenue of 6 to 30,000 livres per annum. In late seventeenth century,
an unskilled worker in Paris would earn 250 livres per year, a relatively successful man 4000
livre to live in modest comfort and by the end of 18th century a well off family would have an
earning of 100 thousand livre per year and prosperous family could earn two or three times as
much with provincial nobility around 10,000 livres.
The economy of France during the renaissance years grew as also the population from 17
million in 1400 to 20 million in 1600 to 25 million in 1800 and it was the most populated area
in Europe and behind only to China and India. Agriculture was a diverse product-mix and

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wine, cider and olives were exported with various fruits and condiments including items
brought from the new world. Industrial development was led by metallurgy, glass-making and
printing which grew into great industries introduced in mid fifteenth century and
developments in metal works, glass, copper, bronze, tin and lead created attractive and
growing market. In fact, French products gained an image of excellence and beauty; which
still remains. It also developed many ports like Marscille, Le Harve, and the Rochalle and
others to carry out trade. Trade both export and import flourished much to the satisfaction of
Frenchmen and explorations were organised and supported. The glut of gold from Africa and
silver from America led to inflation all over Europe, leading to disruption of the economy.
Added to this the rise of army expenses, which led the country to raise money by issuing
bonds.
France continued to grow in status and the reign of Louis XIII and his eminent minister
Richelieu increased the status of France by it‟s entering into several agreements with different
nations to improve French economy. Louis XIV‟s fame rests on his two great projects,
military conquest and building of Versailles palace, which was a wonder of pomp, beauty and
architecture.
It is to be noted that under Francois I and Henry II, the relationship between import and
export with England and Spain was in France‟s favour and was roughly balanced with
Netherlands, but France had a huge trade deficit with Italy. Later with the increasing naval
activity of England, Dutch and Flemish, this activity, was adversely affected with the
reduction in importance of Lyon, which had developed as a financial centre.
The economic policies of Louis XIV which was a boon period was managed by his
minister Colbert who followed mercantilism and protection policies which promoted
production and the expansion of luxury goods and protected inventors, invited foreign skilled
artisans to France and controlled both quality and cost by legislation. France became the
arbitrator of European taste fashion and culture and the image has persisted ever since. He also
reorganised the tax system and improved the collocation.
The revolution of the edict of Nantes, in 1685, however, led to the flight of about 700,000
Huguenot refugees to neighbouring countries and France lost skilful administrators, with
soldiers who created their base elsewhere and artisans with their skills and quality output
which adversely affected on the economy and created enemies. Economy; once again nearly
collapsed, in 1683 the fiscal deficit was 16 million livre, which in 1706 rose to 750 million
and in 1715 reached 41 trillion liveres. From 1680 France lost about 6% of its population and
another 3.5% was lost in the harsh winter of 1709 and economy collapsed. Strict controls had
to be introduced under Louis XV and monetary stability was put in place. France again
regained the second place in Europe after Great Britain in economic prosperity.
The most dynamic industries during this resurgence were mining, metallurgy, textiles and
foreign technology. This trend continued but the financial need of the seven-year war spoilt all
the good work done and by 1775, signs of strain once again developed and administrative
changes were made with repeated change of ministers and policies. However the trend of
adopting technical changes and improving growth in production was maintained. In spite of
this, economy deteriorated with the growing dissentient specially with the peasantry and
working class which led to the French Revolution in the late 18th century and economy badly
suffered aided by the loss of the various colonies in USA and Asia to Great Britain.
This was a watershed mark. Though Napoleon re-established monarchy, France had
tasted freedom and it converted itself to a republic in mid 1850. The character of France was

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changed with greater urbanization and industrial development. In 19th century end large cities
came up, workforce increased and economy looked up.
A distinctive feature was the spread of education, which has been a continuing thrust of
successive government. This was wide spread and not confined to well to do families. The
result was a general awakening and strives to change and improve the miserable living
conditions. Industrial era was initiated in the end of 19th century. It is to be noted that France
was a late entrant but had the late entrants‟ advantage in not having to learn from mistakes.
However, it trailed Great Britain and Germany and this was highlighted during the Franco-
Prussian war. France had to pay a high penalty for this.
The World War I saw France and all other European allies suffer great losses. France had
lost its steam as it were and when the World War II started, it was caught unprepared
depending on the Maginot line strategy and totally collapsed to German might. After this
devastating war and after a great deal of changes, France today, in early 21 st century, has once
again recovered and its technical excellence is now leading USA in areas of transportation,
nuclear energy, space and communication as also its educated manpower and improved skills.
France has regained its lost prestige and with Germany, it shares the leadership of Europe with
Great Britain in the third place. Of course, the establishment of European Union has brought
about a major change.

3. Germany: Germany has also a record of rise and fall and political interference in its
economic status. Growing out of many fractionated kingdoms, principalities, dukedoms, -
bishoprics and free cities, Germany as an integrated unit had no measurable index and,
therefore, no concept of a national economic goal or policy as such. In spite of these factors
Germany had a reasonable economy during the middle age. It was based on gold and craft
production but with elements of merchant capitalism and mercantilism. This, however,
developed out of sheer necessity and the stress of quality, output, and enhancement of skill
through the control of the respective guilds, which gave accreditation. Industrial revolution
reached Germany long after it flourished in Great Britain and the government of the various
elements agreed jointly to support industry and a start was made with Ruhr Valley supplying
the minerals coal and iron and the rest as agricultural tracts. There were also considered
attempts to consolidate and provide the necessary infrastructure the basics of industrial
development and this led to ultimate emergence of Germany as a unit. German industry was,
therefore, grouped as mineral and metallurgical in Ruhr valley. The agricultural and the
cottage industry and craft-base were in the south. German banks also played a major role in
providing finance to the industries and in the formation of co-operative effort through cartels,
which acted as the sponsoring and controlling groups to develop KONZERNEs
(cooperatives/cartels). The first cartel was the Necker Salt union formed in 1828 in
Wurteraberg and Baden. By 1900, there were 275 cartels and by 1908 over 500. Through ups
and downs of prosperity and depression, the first decades of the unified Germany built up its
immense wealth. Under Bismarck‟s direction, the German empire was established on sound
footing and the first German economic miracle happened with all parties gaining and
introduction of social welfare system to benefit and protect the downtrodden.
From the prosperity of the Welhelmine era (1890-1914), Germany plunged into World
War I , lost, and spawned the economic crisis that would destroy the Weimar Republic.
German economy was in shambles. With the collapse of the middle class, the opportunity was
opened for the dictatorship of Adolf Hitler and his expansionist policy at all costs and the

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Jewish oppression. It should be noted that the artificial economic revival that followed was
based on economic anarchy independent of global economy but by exploitation of conquered
territories and people. With the loss of World War II, the country was once again in ruin after
three decades and Germany had to build anew from (Zero hour) Stunde Null.
Like the World War I, the potential recovery of Germany and establishing a friendly
nation and a potential friend and market were reformed and under the leadership of Ludwig
Erhard, a truncated Germany emerged, the western part, with the eastern part given over to
Russia. Erhard introduced currency reforms and tried hard and succeeded in establishing a free
society. The foundations of the West German state were established. The slogan was social
market economy, which emphasised that its policy would introduce free competition and
deliberately chose the word „social‟ instead of „Socialist‟ which stipulated state ownership and
direction. The founders of the social market economy insisted that Denken in Ordnungen – to
think in terms of systems of order – was essential. They also spoke on „Ordo-liberalisions‟ that
the decision must be freely chosen and not be a command order. For a militant state like
Germany, this was a new approach. This brought in a significant change in the mindset and
the state marched ahead. West German Federal government was formed and in 1970 when
Helmut Kohl took over, unified Germany was proceeding with a purpose with a stronger role
for the Government. This attempt to combining the best of the market economy with virtues of
a welfare system was a unique attempt, which led to German economic miracle. This
recovery, which was remarkable of course, happened because of the inputs of the Marshal
Plan when pumped in capital for Germany to recover and the Germans attitude to work at low
salary till productivity improved and economy recovered. The number of employed personnel
increased from 13.8 million to 19.8 million between 1950 and 1960 respectively and
unemployment rate fell from 10.3% to 1.2 %. The rest is history and is will recorded. With the
reunification of Germany, yet another great task initiated by Helmut Kohl, who carried out
with great sacrifice, but with enthusiasm, worry, acclaim and admiration.

Economic History of USA

As indicated earlier both Japan and USA are “new Kids in the Block” with Japan‟s
withdrawal and USA appearance after the 16th, 17th and 18th century. The American colonies
progressed from the marginally successful colonial economies to the small independent
farming economy, which in 1776 originated the Unites States of America. In 230 years the
USA has grown to a huge, integrated industrialized economy that accounts over a quarter of
the world economy. The main causes were a large unified market, a supportive political legal
system, vast area of highly productive farmlands, vast natural resources (timber, coal, oil etc)
and an entrepreneurial spirit and commitment towards investing in material and human
capital. The economy has maintained high wages, attracting immigrants by the millions from
all over the world.
The native Americans were hunters and agriculturists and had no contact with the outside
world till they came in touch with the European colonists who were preceded by the merchant
sea explorers who searched for gold and Indian wealth and were disappointed. The Red Indian
had an economy which was based on hunting and territorial possessions, With the ingress of
the Europeans, with their foods, their diseases and greed, the relationships changes specially
with the conquest of their lands; engagement in wars over undefined areas and use of modern
weapons till they were confined to their reservations. In 1492 Christopher Columbus sailing

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under the Spanish flag discovered America in his quest to find India, hence the name Red
Indian and opened the floodgates for later sailors from England, Span, Portugal, Netherland
and France but they returned disappointed not having struck gold. English founded a colony in
James Town Virginia and Spain in Florida.
The colonial history records, the colonization of North America in parts by French,
England and Dutch and in Mexico by Spain as also in Peru where Cortez struck gold and
valuables. Ultimately by fighting wars as also by purchasing, the English took over the north
American space and over time with the great western push and finally the purchase of
California all of north America became their colony. As in India, initially these colonies were
developed by Chartered Companies (Joint stock companies set up by wealthy land-lords and
merchants) who received a Charter from the King to carry out business and make money and
to advance English national goals Since their attempt, unlike in India, was not a great success,
the Companies handed over the Charters to the colonists and allowed them to develop on their
own and build up their own economies. This sowed the seed of the future United States of
America that won its freedom by throwing down the yoke of British imperialism in time to
come. These colonies grew by tilling the land, animal husbandry, trading in fur in Canada,
growing tobacco and also slowly but steadily trading in timber, textiles, building sailing
vessels for trade and in improving their economy. They became self-sufficient in time but
depended on goods of luxury and tea from their mother country or even from China and India
as required. Like the English political turmoil in the 17th and 18th century, the American
Revolution (1775-1783) was both political and economical in nature. It may be noted that that
the East India Company was in the process of spreading its tentacles in India in the political
vacuum from 1750 onwards and British Generals who were successful in India were sent to
lead the British Troops in America against the revolting colonists. The loss of war by the
British led to the development of the United States of America.
The US constitution was adopted in 1789 from conquered territories from Miami to
Georgia and from the Atlantic Ocean to the Mississippi valley – as a unified common market.
Alexander Hamilton, the first secretary of the treasury was instrumental in building a strong
national credit system based on a national debt held by rich people interested in keeping the
government in a healthy condition. He believed that USA should grow by involving in
shipping, manufacturing and banking. He also proposed and established a Central Bank with
Congressional approval. Thomas Jefferson and James Madison opposed a central government.
Jefferson‟s philosophy was supporting and protecting the common man from political and
economic tyranny and when he became president he promoted decentralized democracy.
Followed by various discoveries in the technological area which developed from
Industrial Revolution, Eli Whitney‟s in 1793, set up a cotton gin which revolutionized cotton
trade and the South where cotton was cultivated and expanded its business by using slave
labour. As indicated earlier, the march to conquer the West began as also the effort to build
new roads and waterways for purposes of trade and communication in early half of nineteenth
century. President Andrew Jackson (1829 -1837) adopted harsh economic measures like
discarding paper money, abolishing central Bank etc. and economy but a bad patch. However,
railroads opened up the country and it became incidentally the first large-scale business
enterprise. The growth as given below indicates that it nearly doubled in 40 years:

1850 1870 1890 in million

New England 3507 4494 6831

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Middle state 3200 10964 21526
Southern state 2036 11192 29300
Western State 1276 24587 62394
Pacific States - 1672 9804
Total 9321 52914 129774
The rates of growth show the extent of spread over years. While Industrial Revolution
happened in Europe in late 18th century, America being closely associated with Britain quickly
adopted it and industrialised itself in early 19th century with improvements upon the British
design and this is a matter of worth remembering. America was now identified as the land of
discovery and innovation.
Abraham Lincoln became president in 1860 and his major role was to fight the battle with
the South over the question of slavery and the victory of North over South set the tone of
American politics and political transfer once for all. He was under great pressure economically
but stood on his principle and guided the Americans in the right path. It also opened the
gateway of America for the immigrant not as slaves but as citizens who could contribute
positively and did so. It should also be noted that industrial advantage of the North proved
decisive (1861-64). It also wiped out the planter aristocracy of the South. The war depleted the
economy but railway expansion continued unabat4ed though highly subsidised.
The golden age (1870-1895) followed and initiated the second Industrial Revolution. Oil
was discovered, transport was modernised with refrigerated cars for food transport, telephone,
telegraph, phonograph, and electricity were employed for power and entertainment. Large iron
nines and copper mines were opened up as also steel mills and cement plants. Besides in the
expanded market, quality and cost considerations became important and induction of scientific
management principles on one hand, and innovations in machine design and development, on
the other aided by abundant resources and immigrant skills transformed the industrial picture.
The contributions of Henry Ford, Edison, Tesla and the setting up of large manufacturing units
all led to economic miracle. The golden age of the send half of the 19th century was the age of
tycoons. John D Rockeffeler was the king of oil, Carnegie of Steel, J.P. Morgan on Banking
and they consolidated their position so vividly that monopoly ruled the roost and government
had to enact laws to prevent concentration of power. It must be noted, however, that all
tycoons were not J.P. Morgan type, flamboyant and spenders. Carnegie, Rockeffeler and Ford
became great philanthropists and created Trusts, which serve the humanity. Along with the
growth of business magnets, American labour movement also grained in strength and created
history by fighting for its rights and fair treatment. However, the golden era ebbed away and
the great depression started from 1929 and continued till 1940 when unemployment grew
from 3.1% to 14% and export dropped from 5.4% to 4% though GNP grew from 100 to 113%
and consumer price index dropped from 122 to 100%. It is to be noticed that America enjoyed
a boom period when the World War I was being fought out in Europe 1914–1918 because it
had to meet the war needs of its allies UK and other but with the collapse of these countries
economies America felt the heat of depression. However, by 1940, USA pulled itself out of
the depression and Franklin Roosevelt‟s socio-democratic policies, New Deal was responsible,
and played its part. But the Second World War, which sucked in America because Japan
attacked Pearl Harbour in Hawaii, played its role. By then, America had given rise to military-
industrial complex as Dwight Eisenhower termed it, had grown powerful and affected the
national economy. The period that followed, oscillated between good and bad, ups and downs,
between Republicans and Democrats between lavishing free action and intervention but the

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economy on the whole continued to grow and to occupy commanding heights. It has been said
that if USA sneezes the world will catch cold and this has been shown on several occasions as
in the recent sub-prime situation that has put the world economy into a massive recession,
from which the world led by America is just recovering.

II. Trade and Commerce in Ancient Times

The theory of surplus is at the root of all trade and commerce even in the ancient times.
The prosperity of India and its cultural excellence had created an image of “Wonder that was
India” in ancient ages and there was a demand for its produces, spices, medicine, artefacts
besides knowledge and thoughts. Evidence exists that the produces of India reached the
Middle East regularly, through the land route as also the sea route in a regular stream. This
happened because of the fertility of the Indian soil as also the fertility of the Indian brain, the
artisanship excellence, and the surplus, which was available for export besides the trading
mentality; witness the advantage of risk-taking trading community. A study of the present day
Marwari community in India has established the fact that the modus operandi remains the
same. The need for knowing more about a market to be penetrated was met by sending a
trusted agent in the new territory. In ancient days, the trading communality which had a
surplus sent out a trusted member to settle down in the new market area, learn the language
even marry and establish roots in that area, He was provided with ample funds to slowly act as
a banker, an agent and gatherer of information which he used to send back with returning
traders or visitors. The present day letter of credit had its origin in the form of hundi in India
and in ancient times. This issue was resolved by using special seals, which would and did
identify the merchant community or even the places as the case may be. It was trust that
carried the trade and it is said that the same happens today in the Bank of England or Wall
Street. Basic trust between parties sustains and supports negotiation and commerce. The seal
was the identifier in ancient India as found in Mehrgarh and Indus valley civilization as also in
Mesopotamia and in Middle East.
The unified basic requirement was weights and measures, which in Indus Valley diggings
have proven that Indus Valley inhabitants were very adapt in these two areas. They had unit of
measurement in volume, in length as also in weight and these had been standardized and
agreed upon. In the absence of coinage, either barter equitably agreed upon though the agent
was accepted by both parties or by alternate produce, which again the agent decided on a
rational basis. Even today, with all the communication devices and easy transport, the same
modus operandi exists.
The other important issue in trade and commerce was communication and transport
and as discussed. There has been a sea change in both these spheres whereas sea travel must
have cut down travel time across the sea or costal areas. Horse or oxen ride followed by
chariot ride must have reduced land travel times. Movement of goods and information was
both risky and time consuming. Hence return from a voyage was celebrated as literally a
rebirth more so if wealth was a by-product. Land and sea routes were established and properly
recorded and maps were drawn for the posterior and some times protected as a treasure. As the
sea-faring boats became more sea-worthy and replaced by ships the sea-faring trading
communities emerged like the Dravidians, Minoahs, Greeks, Phoenicians and Romans, in that
order. The Minoan and Phoenicians civilizations were established on their sea-trading skills as
also of the Greeks. Because Romans lacked this skill, they learned it to succeed in their battle
against Phoenician as also against the Egyptians. Witness Alexander the Great, the land based

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general had acquired expertise as a sailor in his trip to India by the Persian Gulf and the
extension of his empire
There being no other means of communication from distance except using the written
language carried either on foot or horse back or chariot. The need for the marathon war
massage was conveyed by a runner, which initiated the marathon race in the Olympia. But the
volume of trade expanded necessitating larger ships and larger carts and this required larger
and yet larger investment leading to the rise of trading groups with enough capital to investor
involvement of the state to support or even sponsor such voyages and journeys. Of the lone
adventurer like Marco Polo and his kindred soul were always in the forefront. Whatever may
be the case larger volume of trade called for larger investment, larger risk and longer time
span. This led to the sub-agency system and an elongated supply chain with consequent
division of risk as also earnings. Besides the increased expertise of trading and travelling
community the role of increased production, crude standardisation and quality improvement
with skill and specialisation influenced the operation. To assist production, machines had to be
made, factory system of production had to be established and improved means of
communication, credit handling as also means of transport had to be developed. And that is
what exactly happened. Overcoming the disadvantage of language, communication, and
culture, trade and commerce went on increasing in scale changing the entire economic profile
and raising various issues of governance and control that were involved. The activity of trade
and commerce went up by leaps and bounds and has led to globalisation of the date and
competitive advantage theories.
History of Trade and Commerce
Trade started with surplus and change of taste demanding something, which was not
previously available. Surplus was generated by additional production than that needed, arising
out of skill enhancement or tools or machine, as the case may be. If a fisherman caught more
fish than what he could consume, he wanted to trade it off for some, may be, meat from a
hunter who had surplus. Thus barter system was established and the drive to create more
surpluses got the trade growing. This has happened right from the dawn of civilization and
continues even today. With the sophistication from monetary system, the credit control system
and the communication system together with the growth and diversity of want/need, the form
and content has changed radically. In the last decade, e-commerce and e-trade has emerged as
the biggest change agent. As is well-known, one can scan to find out the source and
availability of suitable material available anywhere in the world with price and specification,
select it and indicating what your additional requirement would be, negotiate a agreed price,
press a „buy‟ button covering your credit card or other bank identification details with
shipping instruction and the material in the specified form will be delivered at the stated point
within a specified time. With Fed Express /Gait operations you are not required to move out,
nor hand over money and collect the product which may be designed in one country,
assembled in another and, so on.
Trade in the olden days was a powerful agent for people to connect, by physical
movement and exchange goods, which they had in surplus to obtain goods that they wanted.
Initially of course the land routes provided the infrastructure. Witness the existence of the
famous “Silk Route” and the “Spice Route”, the former to China and the later to India and the
Far East.

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 This system initially based on barter system, expanded to cover credit system by the way
of Hundies or credit paper issued by merchant houses. The traders could be away from home
for a longish period and return with wealth in various forms. In ancient times, Indian traders
carried out trade with Mesopotamian countries and the transactions were recorded on clay
tablets, which used cuneiform writing. A great many examples of such missives had been
stored and provide valuable information on the commercial activities of the period. As already
indicated, the merchant house or group had a distinguished seal each and that acted as
identification and credit. Besides there traders either created on agent by sending a
relative/trustworthy person to represent his interest or appointed a local person who know the
local language and customs and, therefore, could extend his activities. Indus Valley
civilization has many such seals to offer which were found in Sumer and in Babylon and other
trading areas.
With the growth of trade, the necessity for bulk movement was felt and domesticated
animal like ox were put to service to carry loads which was later complemented by ass and
oxen till the horse was domesticated in mid-Europe/east-Europe and inducted. That made a
major change. From the Mediterranean coast to Arabian Sea, traders with an oxen train or ass
train, frequently traversed a distance of about 800 miles, as the case may be. They needed to
cover around 15/20 miles a day and faced several perils like climate and pirates who operated
enroute It is also to be noted that with time the main route became well protected and provided
with rest places “Sarais” for haltage and refreshment. Breakthrough in this area was the
introduction of horse and the chariot with wheels and also the camel the “ship of the desert”.
A camel could carry four times as much as a horse, was equally fast over a long stretch and
fended for itself at the oasis, which the route connected. Provisioning for the camel
carrieravans was not necessary as for the horse or ass or mules. Both camels and horses were,
therefore, very important to the traders as time was reduced with consequent growth of
turnover. It appears that Alexander in his march to India used sea route as also land route
effectively and when crossing mountains, disassembled his chariots and had it hauled up in
oxen carts.
The sea or riverine routes were also used for trade and commerce to an increasing degree
over time. From rafts, reed boats to small wooden boats and medium ships to large ships there
has been an incremental change but substantive in this effort. The monsoon wind which reach
India from west and with its diversion changed from east to west after three months were a
god sent blessing to sailors and increased the trade from Roman empire or Egypt or
Mesopotamia to the west and east India shores and vice versa. Besides their contribution in
navigation and related instruments, the Muslim sailors also designed the “lateen” sail a
triangular sail which could be shifted around the mast and which offered great flexibility. This
concept is still used in yachts and barge/small sailboats and has nearly replaced square sails of
the Chinese design. However, the Chinese sailors have to be credited with the discovery of
Rudder, which controlled the ships movement and made dopamine and entry to ports a
manageable operation. Trade volumes were increased and costs were reduced. And the ships
grew larger and faster by redesigning of the bulk and ship construction and design
specialization.
Of course, the induction of steam as motive power changed the trading scene totally as
also the ironclad ships with cannonade against pirates. Similarly, the extension of rail roads,
road transport and lastly air traffic caused a complete rewriting of the trading history as also
the improvement of communication from horse riding messengers to sign language

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semaphores, to telegraphs and now electronic communication and e-commerce. It should be
noted however that basically trading remains the same but is more powerful than before. The
creation of ports and trading hubs all other the world are instances of this statement,
Singapore, Dubai, the ports of USA and Canada are but examples of this conclusion. The port
of Malcca or Malaka is a case in point. It became so popular that it was said that it might
replace Venice from its glory. Arkamadu near Pondicherry in the east coast and Calicut in the
west coast of India were also very active.
Besides trade, state sponsorship was yet another propagator of adventurous journey for
acquiring land and wealth for the sponsoring agency. Portugal, Spain, England and France
along with Dutch are examples of the growth of empire and financial strength of the
respective countries. Modern development of container ships and RORO ships are case in
point. Fed Express and its distribution channel and the excellence of its distribution and
control system have to be acknowledged.

Comments on Trade and Commerce

As explained earlier, there was extensive trade between Indian and Europe via Middle
East as also in the Far Eastern countries and later when India acted as a central point for trade
between Europe and China because of its favoured geographical location. This volume could
not be substantial because of transport difficulties over land but with the opening up on sea
travel and development of sea trade the volume became substantial with links with Roman
Empire now present in Egypt in the 1200 AD onwards and with Middle East from 2000 BC
onwards. The volume became substantial and covered a wide range of objects and
technologies if it can be so termed. The items shipped out could not only be the spices of India
which lead to the development of so called “Spice route” but also textiles, potteries, metal
implements, metal working technologies like annealing skills, forging skills, smelting skills,
glass and bead working, Brass, Bronze and Iron working and of course philosophy and
teaching in which the Buddhist monasteries took the lead and later the Hindu priests to the Far
East. Chemicals like salt and other natural products were also exported as also raw material at
the later stage. China was famous for its silk and therefore, the path to China was identified, as
the Silk Route, which not only adopted the land route as indicated by Marco Polo but the sea
route via India. Some experts and historians have questioned the Euro-centric picture of the
world trade and have stated that the trade commenced much earlier in Asia
In ancient times, direct trade with Rome was not possible but after Alexander‟s march to
India and the setting up on various Great Kingships including the Ptolemies of Egypt, the
volume of trade developed. The use of monsoon winds and the establishment of various
seaports in South India were the established route as recorded by Historian Strabo. As Strabo
records as many as 120 vessels were sailing from Myos Hormos to India in 130 BC by the
time of Augustus and the barter was gold which Pliny complained was in short supply in
India. He further states the Romans per year spent 100 million gold coins on Indian luxury
goods per annum.
There were various Roman ports Ramu, Arsine, which is the present Suez, Myos Hormos
over shadowed Arsinee and later through Bereniee all around the southern Egypt. Roman
pottery has been found in various Indian port sites Virampoatnam, Srikadu etc. Mazioris was
situated in Kerala, (South India), Nileguda was yet another important Indian port.
Andre Frank of the University of Amsterdam has given an idea of the volume of trade
during 1400 –1800 AD. He also expounds that trade was not Euro centric but Asia centric and

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quotes Adam Smith who wrote that both India and China were far richer than any country in
Europe up to 1776 and remarked that contribution of India and China was far greater than
Europe in the development of human history. It was only with the Industrial Revolution when
occurred later with the influx of American silver and Indian wealth that the balance changed.
The general feeling has been so exercised that European contribution has been identified
as the main theme much to the dissatisfaction of eminent historians like William H. McNeill,
who have questioned their phenomena of “Exceptionalism” and acknowledged the
contribution of Asia. The trend was to treat Europe‟s rise as an exception and not as a gradual
progress of Eurasian history and shifts within the world. It has been ably argued that both
capitalism and trade and commerce was a wide spread phenomena and not a European one
and hence the development was but an extension of what was going to happen and it happened
in Great Britain because the time and the place was ripe for it. It was no exceptionalism. It has
been observed that China and India were the primary centres of accumulation of capital in the
world system, and China was in the overall balance of trade surplus most of the period. It
should be noted that India during this period was under subjugation as distinct from China,
which was independent but even so rich flowed out of India to enriched Britain as also from
America which was also a colony of Great Britain in the initial years. An estimate by the
historian Bairach would indicate the striking change. He writes “in 1750, Asia had a GNP of
$120 billion [in 1960 US dollar] which all the “west” meaning Europe and the Americas
including Russia and Japan had a GNP before the industrial revolution of only $ 35 billion.
However, a century later in 1860, the respective accounts were $ 165 billion and $1145
billions.” According to Maddison‟s estimate, per capita production income was almost the
same in China and Western Europe in 1400. Even for as late as 1750, revenue estimates by
various authors indicate that the standard of living was about it the world over excepting
pockets of luxury and poverty.
What was the cause of this “exceptionalism” then! Earnest Madel (1868-, p.119-120)
estimated that the European colonial bounty between 1500 and 1800 at 1,000 million gold
pound sterling, of which 100 to 150 million reached Britain from India alone between 1750
and 1800, while it invested in the new industrial “revolution”. It may be noted that R. C.
Dutta, the civilian who was also an economic historian wrote on the theory of drain on Indian
capital to Great Britain and the consequent improvement in British economy. As has been said
that Great Britain adopted all means, piracy, thawing, chicanery and usurping others property
in Indian soil to be a leader in trade that it became based in Indian wealth and Mexican silver.
India‟s trade with Portugal, Dutch and France have also been studied and recorded by
professional historians. Though there was plunder and oppression, nothing happened as with
the British who to increase the Manchester market tried to ruin the textile trade and skills of
India and to gain market for chemical indigo ruined the indigo trade in India as depicted in Nil
Darpan written by Dinabandhu Mitra. Yet the trade went on but in reality it reversed from
being an exporting country, India became an importer and that is what it is trying to reverse
since independence.
III. History of Law and Ethics

Law is a system of values, enforced through a set of institutions, used as an instrument to

under firm civil obedience, politics, economics and society. Law serves as the foremost social
indicator in relations between people. In 950 BC Aristotle wrote, “The rule of law is better
than the law of any individual.” India had been framing laws from the age of Ramayana or

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even earlier. This was recorded in Manu Samhita and in Arthashastra as far back in 300 BC.
Egypt had a civil code divided into twelve books and was based on tradition, rhetorical
speech, social equality and impartiality. By 2000 BC, Ur Nammu, an ancient Sumerian ruler
formulated the first law code consisting of causistic statement (If … then) and around 760 BC
King Hammurabi developed Babylonian law by codifying and inscripting it in stone, which
was discovered and translated in 19th century. The Torah from the Old Testament framed in
1300 BC may still relevant to modern legal system like Ten Commandments of Mosses and
Noahide Laws of ancient Greek civilization had no distinct laws but laid down the roots of
civility and development of democracy.
China and India represent distinct traditions of law. The Arthasastra (around 300 BC) and
Manu Samhita (200 BC) are the India attempts though the principles of law and order are
much older as represented by Ramayana and Mahabharat epics and the Puranas. The Indian
thought was pluralistic, tolerance, flexible and civility oriented. The Chinese law was also
society centric while Islamic law was for universal brotherhood and was rigid. The modern
concept of common law developed in UK from Roman codification has spread through out the
Europe and Asia and have formed the edifice of law

Legal History

The Legal history or history of law is closely connected to the development of

civilization. It is the study of how law has evolved and why it changed. Legal history is
closely connected to the development of civilizations and is set in the wider context of social
history. Among certain jurists and historians of legal process it has been seen as the recording
of the evolution of laws and the technical explanation of how these laws have evolved with the
view of better understanding the origins of various legal concepts, some consider it a branch
of intellectual history. Twentieth century historians have viewed legal history in a more
contextualized manner more in line with the thinking of social historians. They have looked at
legal institutions as complex systems of rules, players and symbols and have seen these
elements interact with society to change, adapt, resist or promote certain aspects of civil
society. Such legal historians have tended to analyze case histories from the parameters of
social science inquiry, using statistical methods, analyzing class distinctions among litigants,
petitioners and other players in various legal processes. By analyzing case outcomes,
transaction costs, number of settled cases they have begun an analysis of legal institutions,
practices, procedures and briefs that give us a more complex picture of law and society than
the study of jurisprudence, case law and civil codes can achieve.

Ancient World
Ancient Egyptian law, dating as far back as 3000 BC, had a civil code that was probably
broken into twelve books. It was based on the concept of Ma'at, characterised by tradition,
rhetorical speech, social equality and impartiality. By the 22nd century BC, Ur-Nammu, an
ancient Sumerian ruler, formulated the first law code, consisting of casuistic statements ("if...
then..."). Around 1760 BC, King Hammurabi further developed Babylonian law, by codifying
and inscribing it in stone. Hammurabi placed several copies of his law code throughout the
kingdom of Babylon as stelae, for the entire public to see; this became known as the Codex
Hammurabi. The most intact copy of these stelae was discovered in the 19th century by
British Assyriologists, and has since been fully transliterated and translated into various

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languages, including English, German, and French. The Torah from the Old Testament is
probably the oldest body of law still relevant for modern legal systems, dating back to 1280
BC. It takes the form of moral imperatives, like the Ten Commandments and the Noahide
Laws, as recommendations for a good society. Ancient Athens, the small Greek city-state, was
the first society based on broad inclusion of the citizenry, excluding women and the slave
class. Athens had no legal science, and Ancient Greek has no word for "law" as an abstract
concept.Yet Ancient Greek law contained major constitutional innovations in the development
of democracy.

Southern Asia
Ancient India and China represent distinct traditions of law, and had historically
independent schools of legal theory and practice. The Arthashastra, dating from the 400 BC,
and the Manusmriti from 100 AD were influential treatises in India, texts that were considered
authoritative legal guidance. Manu's central philosophy was tolerance and pluralism, and was
cited across South East Asia. But this Hindu tradition, along with Islamic law, was supplanted
by the common law when India became part of the British Empire. Malaysia, Brunei,
Singapore and Hong Kong also adopted the common law.

Eastern Asia
The eastern Asia legal tradition reflects a unique blend of secular and religious influences.
Japan was the first country to begin modernizing its legal system along western lines, by
importing bits of the French, but mostly the German Civil Code. This partly reflected
Germany's status as a rising power in the late nineteenth century. Similarly, traditional
Chinese law gave way to westernization towards the final years of the Ch'ing dynasty in the
form of six private law codes based mainly on the Japanese model of German law. Today
Taiwanese law retains the closest affinity to the codifications from that period, because of the
split between Chiang Kai-shek's nationalists, who fled there, and Mao Zedong's communists
who won control of the mainland in 1949. The current legal infrastructure in the People's
Republic of China was heavily influenced by soviet Socialist law, which essentially inflates
administrative law at the expense of private law rights. Today, however, because of rapid
industrialization China has been reforming, at least in terms of economic (if not social and
political) rights. A new contract code in 1999 represented a turn away from administrative
domination. Furthermore, after negotiations lasting fifteen years, in 2001 China joined the
World Trade Organization..

Islamic law
One of the major legal systems developed during the Middle Ages was Islamic law and
jurisprudence, now the third most common legal system after the civil law and common law
systems. The methodology of legal precedent and reasoning by analogy (Qiyas) used in early
Islamic law was similar to that of the later common law system. According to Justice Gamal
Moursi Badr, Islamic law is like common law in that it "is not a written law" based entirely on
the Qur'an but that the "provisions of Islamic law are to be sought first and foremost in the
teachings of the authoritative jurists" (Ulema), hence Islamic law may "be called a lawyer's
law if common law is a judge's law." This was particularly the case for the Maliki school of
Islamic law active in North Africa, Islamic Spain and the Emirate of Sicily.

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 A number of important legal institutions were developed by Islamic jurists during the
classical period of Islamic law and jurisprudence, known as the Islamic Golden Age, dated
from the 7th to 13th centuries. One such institution was the Hawala, an early informal value
transfer system, which is mentioned in texts of Islamic jurisprudence as early as the 8th
century. Hawala itself later influenced the development of the Aval in French civil law and the
Avallo in Italian law. The "European commenda" limited partnerships (Islamic Qirad) used in
civil law as well as the civil law conception of Res judicata may also have origins in Islamic
law.
Several fundamental common law institutions may have been adapted from similar legal
institutions in Islamic law and jurisprudence, and introduced to England after the Norman
conquest of England by the Normans, who conquered and inherited the Islamic legal
administration of the Emirate of Sicily, and also by Crusaders during the Crusades. In
particular, the "royal English contract protected by the action of debt is identified with the
Islamic Aqd, the English assize of novel disseisin is identified with the Islamic Istihqaq, and
the English jury is identified with the Islamic Lafif" in Maliki law. The English trust and
agency institutions in common law were also most likely adapted from the Islamic Waqf and
Hawala institutions respectively during the Crusades.
Other English legal institutions such as "the scholastic method, the license to teach," the
"law schools known as Inns of Court in England and Madrasas in Islam" and the "European
commenda" (Islamic Qirad) may have also originated from Islamic law. The methodology of
legal precedent and reasoning by analogy (Qiyas) are also similar in both the Islamic and
common law systems.. These similarities and influences have led some scholars to suggest
that Islamic law may have laid the foundations for "the common law as an integrated whole"..

European laws
Roman Empire
Roman law was heavily influenced by Greek teachings. It forms the bridge to the modern
legal world, over the centuries between the rise and decline of the Roman Empire. Roman
law, in the days of the Roman republic and Empire, was heavily procedural and there was no
professional legal class. Instead a lay person, iudex, was chosen to adjudicate. Precedents
were not reported, so any case law that developed was disguised and almost unrecognised.
Each case was to be decided afresh from the laws of the state, which mirrors the (theoretical)
unimportance of judges' decisions for future cases in civil law systems today. During the 6th
century AD in the Eastern Roman Empire, the Emperor Justinian codified and consolidated
the laws that had existed in Rome so that what remained was one twentieth of the mass of
legal texts from before. This became known as the Corpus Juris Civilis. As one legal historian
wrote, "Justinian consciously looked back to the golden age of Roman law and aimed to
restore it to the peak it had reached three centuries before."

Middle Ages
Roman law was lost through the Dark Ages, but in the eleventh century AD scholars in
the University of Bologna rediscovered the texts and were the first to use them to interpret
their own laws. Mediæval European legal scholars began researching the Roman law and they
began using its concepts and prepared the way for the partial resurrection of Roman law as the
modern civil law in a large part of the world. After the Norman conquest of England which
introduced Norman and Islamic legal concepts into mediæval England, the English King's

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powerful judges developed a body of precedent which became the common law. But also, a
Europe wide lex mercatoria was formed, so that merchants could trade using familiar
standards, rather than the many splintered types of local law. A precursor to modern
commercial law, the lex mercatoria emphasised the freedom of contract and alienability of
property.

Modern European law

The two main traditions of modern European law are the codified legal systems of most
of continental Europe, and the English tradition based on case law.
As nationalism grew in the 18th and 19th centuries, lex mercatoria was incorporated into
countries' local law under new civil codes. Of these, the French Napoleonic Code and the
German Bürgerliches Gesetzbuch became the most influential. As opposed to English
common law, which consists of massive tomes of case law, codes in small books are easy to
export and for judges to apply. However, today there are signs that civil and common law are
converging. European Union law is codified in treaties, but develops through the precedent
laid down by the European Court of Justice.
United States
The United States legal system developed primarily out of the English common law system
(with the exception of the state of Louisiana, which continued to follow the French civilian
system after being admitted to statehood). Some concepts which originate in Spanish law,
such as the prior appropriation doctrine and community property, still persist in some U.S.
states, particularly those which were part of the Mexican Cession in 1848.
Under the doctrine of federalism, each state has its own separate court system, and the ability
to legislate within areas not reserved to the federal government.
There are several section under law. Some of the important ones are – Constitutional and
Administrative Law, Criminal Law, Contract Law, Tort Law, Property Law, Labour Law,
Commercial/Mercantile Law, Civil Law, Environmental Law, etc.

Law Merchant (Mercantile Law)

Some examples of law governing trade initiated in UK during the mercantilism period is now
commented on. It was primarily directed to extend protection to mercantilism so that it could
be profitable and it could grow.
The Law Merchant is a legal system used by merchants in medieval Europe, including
England. Rather than being the result of the edict of a final authority, it was evolved based on
common usage.
Origins
The Law Merchant, or Lex Mercatoria, was originally a body of rules and principles laid
down by merchants themselves to regulate their dealings. It consisted of usages and customs
common to merchants and traders in Europe, with slightly local differences. It originated from
the problem that civil law was not responsive enough to the growing demands of commerce:
there was a need for quick and effective jurisdiction, administered by specialised courts. The
guiding spirit of the merchant law was that it ought to evolve from commercial practice,
respond to the needs of the merchants, and be comprehensible and acceptable to the merchants
who submitted to it. International commercial law today owes some of its fundamental

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principles to the Law Merchant as it was developed in the medieval ages. This includes choice
of arbitration institutions, procedures, applicable law and arbitrators, and the goal to reflect
customs, usage and good practice among the parties.
The medieval Law Merchant
The Law Merchant was administered by merchant courts, set up along trade routes and trade
centres. A distinct feature of the Law Merchant was the reliance by merchants on a legal
system developed and administered by them. States or local authorities seldom interfered, and
surrendered some of the control over trade within their territory to the merchants. In return,
trade flourished under the Law Merchant, increasing tax revenues.

The need for quick and effective justice

The Law Merchant was the product of customs and practices among traders, and could be
enforced through the local courts. However, the merchants needed to solve their disputes
rapidly, sometimes on the hour, with the least costs and by the most efficient means. Public
courts did not provide this. A trial before the courts would delay their business, and that meant
losing money. The Law Merchant provided quick and effective justice. This was possible
through informal proceedings, with liberal procedural rules. The Law Merchant rendered
proportionate judgements over the merchants‟ disputes, in light of “fair price”, good
commerce, and equity.
Choice of judge
Judges were chosen according to their commercial background and practical knowledge. Their
reputation rested upon their perceived expertise in merchant trade and their fair-mindedness.
Gradually, a professional judiciary developed through the merchant judges. Their skills and
reputation would, however, still rely upon practical knowledge of merchant practice. These
characteristics serve as important measures in the appointment of international commercial
arbitrators today.
Legal concepts introduced by the Law Merchant
Less procedural formality meant speedier dispensation of justice, particularly when it came to
documentation and proof. Out of practical need, the medieval Law Merchant originated the
“writing obligatory”. By this, creditors could freely transfer the debts owed to them. The
“writing obligatory” displaced the need for more complex forms of proof, as it was valid as a
proof of debt, without further proof of transfer of the debt; powers of attorney; or a formal
bargain for sale. The Law Merchant also strengthened the concept of party autonomy:
whatever the rules of the Law Merchant were, the parties were always free to choose whether
to take a case to court, what evidence to submit and which law to apply.
A single market?
It is believed that goods and services flowed freely during the medieval Law Merchant, thus
generating more trade and wealth. This is also the purpose of the single market, as we know it
today. It is, however, debatable whether the law was uniform in nature, was spontaneous as a
method of dispute resolution, or applied equally to everyone who subordinated to it. The Law
Merchant was also a means for local communities to protect their own markets. By holding
merchants to local rules the Law Merchant required a distinct local character. It was an issue
then, as now, to what extent nation states are justified in regulating trade to protect local
interest (such as tax revenue or custom barriers). Nation states were non-existing at the early

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stages of the Law Merchant, but local kings or authorities saw to the task just as well. The
effort to create a single market did not fail, but lack of a higher authority to unify rules and
customs certainly gave room for local variations within the market.
The evolution of the Law Merchant
The Law Merchant declined as a cosmopolitan and international system of merchant justice
towards the end of medieval times. This was to a large extent due to the adoption of national
commercial law codes. It was also connected with an increasing modification of local customs
to protect the interests of local merchants. The result of the replacement of Law Merchant
codes with national governed codes was the loss of autonomy of merchant tribunals to state
courts. The main reason for this development was the protection of state interests.
Codification and nationalisation of the Law Merchant
The nationalisation of the Law Merchant did not neglect the practises of merchants or their
trans-border trade. Some institutions continued to function, and state judges also were
appointed for their merchant expertise, just as modern commercial arbitrators. The law of the
merchants were not eradicated, but simply codified. National codes built on the principles laid
down by trade commercial practise and to a large extent they embodied Law Merchant
substantial rules. This was, for example, the case in France. The Code Commercial was issued
in 1807, where Law Merchant rules were preserved to govern formation, performance and
termination of contracts. In effect, the nation states reconstituted the Law Merchant in their
image.
The development under the common law
English courts applied merchant customs only if they were “certain” in nature, “consistent
with law” and “in existence since time immemorial”. English judges also required that
merchant customs were proven before the court. But even as early as 1608, Chief justice Coke
said: “the Law Merchant is part of this realm”. The tradition continued especially under Lord
Mansfield, who is said to be the father of English commercial law. Precepts of the Law
Merchant were also kept alive through equity and the admiralty courts in maritime affairs. In
the US, traditions of the
Law Merchant prevailed in the general principles and doctrines of commercial jurisprudence.
International commercial law and arbitration
Law merchant precepts have been reaffirmed in new international mercantile law. National
trade barriers are torn down in order to induce commerce. The new commercial law is
grounded on commercial practice directed at market efficiency and privacy. Dispute resolution
has also evolved, and functional methods like international commercial arbitration is now
available. The principles of the medieval Law Merchant -- efficiency, party autonomy and
choice of arbitrator -- are applied, and arbitrators often render judgements based on customs.
The new Law Merchant encompasses a huge body of international commercial laws.
Evaluation, Law Merchant of the future
In summary, nation states somewhat fragmented the medieval Law Merchant, but it is far from
destroyed. Local interests triumphed in the medieval ages, just as national interests do today.
A modern variant of the Law Merchant is the evolving law and dispute resolution in
cyberspace. Internet traders are the fastest growing body of merchants in history. Parties can
solve domain-name disputes online expeditiously and quickly. In a virtual court documents

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are filed and examined online, arguments are made online and decisions are published online
– seldom challenged before traditional courts of law. The medieval, the modern and
cyberspace Law Merchants face comparable issues of enforceability. They solve the problems
somewhat differently, but the reaction of the market is the main incentive to comply with a
ruling. What remains of Law Merchant precepts today is a qualified faith in self-regulation by
merchants, and a reluctance to surrender the efficiencies of merchant practice to state
confinement.
From Britannica, 1911
LAW MERCHANT or LEx Mercatoria, was originally a body of rules and principles relating
to merchants and mercantile transactions, laid down by merchants themselves for the purpose
of regulating their dealings. It was composed of such usages and customs as were common to
merchants and traders in all parts of Europe, varied slightly in different localities by special
peculiarities. The Law Merchant owed its origin to the fact that the civil law was not
sufficiently responsive to the growing demands of commerce, as well as to the fact that trade
in premedieval times was practically in the hands of those who might be termed cosmopolitan
merchants, who wanted a prompt and effective jurisdiction. It was administered for the most
part in special courts, such as those of the guilds in Italy, or the fair courts of Germany and
France, or as in England, in courts of the staple or piepowder (see also SEA Laws). The
history of the Law Merchant in England is divided into three stages: the first prior to the time
of Coke, when it was a special kind of law - as distinct from the common law - administered
in special courts for a special class of the community (i.e. the mercantile); the second stage
was one of transition, the law merchant being administered in the common law courts, but as a
body of customs, to be proved as a fact in each individual case of doubt; the third stage, which
has continued to the present day, dates from the presidency over the king's bench of Lord
Mansfield (q.v.), under whom it was moulded into the mercantile law of to-day. To the law
merchant modern English law owes the fundamental principles in the law of partnership,
negotiable instruments and trade marks.

IV. Some Comments on Oil Politics and Other Issues

The politics based on oil and its impact on the world economy is increasingly being felt.
Oil has allreaedy assumed the major energy source with Japan and India, the former totally
dependent and the latter dependent to a large degree on imported oil. Recent discoveries in
India may ease the dependence but the recent phenomenal rise in oil prices from $ 50 to $ 150
per barrell has shaken the world economy. USA, the largest consumer of oil has enough to
meet the demand but it follows a monetary policy to store that and proven and this leads to
hike of price. USA is not bothered because the earnings of Middle East flows back to USA as
investments and USA was least concerned. Things have now changed with Middle East
investing internally and developing real estate and investing elsewhere. It is felt that instead of
dollar, it will be the petro-dollar, which will rule the world economy. Only time will tell. It is,
however, to be noted that the recent finding of oil and gas in Godavari Basin will ease the
pressure on India‟s economy and permit India to grow in economic strength.
Besides the crash of the Wall Street finance and arising from the sub-prime debacle is yet
another incident which has to be closely watched. Greed and high-risk low-return investments

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have led to the crash which has to be arrested and monitering improvement to save financial
disaster.

Corporate Ethics and Law

The concept of ethics and its importance in society and governance has been recognised
since ancient times. The respect for elders and family has been the cornerstone of Chinese
religion as also of the Indian; the respect for law started from Sumerian rule; the respect for
Kingship was ingrate from Egyptian and Indian civilization and all religions stress the
importance of ethics as an essential concept for peace and tranquillity, growth and prosperity,
of orderly and peaceful living In the course of economic development as indicated the
organisations dealing with business developed, and from a small beginning it grew up in size
and content, from exercising limited power to yielding considerable power and influence over
the society and thus became a major factor to reckon with for development and progress of
the society. Realising this issue, the society and lawmakers framed and implemented law like
the Company‟s Act, which has been elaborated and implemented over the years in all
countries around the world. British were the initial mover in this directions as from the
Romans, it was that nation which inheritate the responsibility for the formulation,
implementation and monitoring of all matters relating to law and justice. Since commercial
activities are involved, the attention was focussed on the accounting aspects, which guided the
framing of the laws. British drafted Company Act, which covered the rules of governance, it‟s
of structures and principally rules of maintaining accounts to inform the owners be they the
partners, or stake-holders under the public or the private category with total or limited
liability, as the case may be. These companies did their business, invested and shared
earnings, and grew large enough to influence the society in which they operate. This led to
creation of vested interest and influencing to increase profits and led to distortions. To prevent
this phenomenon, stricter laws were framed and implemented increasing timely submission,
transparency, and curtailment of misuse of power and improve the correctiveness of
governance and statements by amending the Company Act. However, it was realised that this
was not enough and companies were yielding too much power in areas not covered by
accounting sundries and this had to be put right. In fact, this phenomenon had led to various
scams and misdeeds, which acted adversely on the society and society leaders as also business
leaders, realised that this development and disasters that followed must be tackled forth with
to arrest further decline. It was again the British who assumed leadership and Sir Adrian
Cadbury, an eminent business leader, headed a committee of expert to prevent this tendency.
The committee act in judgement and published their much-acclaimed report “Cadbury
Report”. It stressed on the fact that besides the financial impact of a corporation, it also
exercising some time adverse influence in the Society regarding pollution, noise and on
environmental effect per se. Organizations should, therefore, be held responsible for
environment degradation and must avoid it or have to pay for it in the form of compensation.
Presently, world is very worried about global warming change of climate adversely effecting
agriculture, wrong use of technology and wastage of economic resources as also the loss of
resources which may be already serve and even loss of species of life, which can never be
regenerated and replicated. Cadbury recommended that environment impact for any new
endeavour or even existing endeavour or organisation must be assessed before permission is
granted. It also suggested that each organisation must indicate its awareness of such problems

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and indicate what actions they have taken or propose to take to arrest the deterioration. Thus
ethical standards were recommended to be imposed on all industrial operations to save the
world at large and each government of the different states was expected to frame rules and
laws and monitor progress. The ethical responsibility of the industries and organisations as a
concept was thus initiated and accepted in England, Canada and Australia followed as also
America as they realise what a mess of the world the Industrial countries had made but the
vested interests were so thoroughly grounded that there was lot of talk but hardly any
progress. The world as if ignored the crisis. Al Gore the American Presidential candidate took
up the issue on an evangelist seal produced a documentary on what was happening to the
world, environmental disaster, and launched a lecture circuit to the top leading the world. As if
by magic, the world woke up. UN launched into environment degradation programme and
several conferences were hold leading to the Kyoto declaration which still remains to be
implemented because of vested interest of the Industrialised nations which wants to shift the
blame on the developing countries without sacrificing or even changing their wasteful life
style. The matter has ended in a deadlock with our world suffering.
Most countries, however, have adopted the ethical consideration and control of the
organisations has been legalised and is being monitored state/nation-wise. India is a major
player as also China and adopted the principle and has formulated rules. Various chambers
have also accepted the responsibility and Kumar Mangalam Birla has led a committee to
frame actions and punishments for non-compliance. The struggle is on.

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 Chapter VI
Money and Banking
Compiled by Prof. Sudev Das, CBS

The growth of money and its influence on the process of development has to be properly
recognised and hence this chapter.
Origin and Development of Money
Hundreds of different objects have served as money at one time or another in human
history including such things as slaves, gunpowder, and the jawbones of pigs. Perhaps the
heaviest money ever used was the stone money of the island of Yah in the South Pacific and
the lightest the feather money of the New Hebrides. For centuries, salt circulated as money
among the natives of Ethiopia. Human skills enjoyed unique prestige in the social system of
Borneo. It became customary to relate pigs and palm nuts to be highly regarded unit while
comparing their values for purposes of actual exchange. In this way, skills served as the
standard and pigs and palm nuts as the medium of exchange, just as in the western societies
gold has served as the standard and coins and paper money as the medium of exchange.
Money is the medium in which prices are expressed, debts discharged, goods and services
paid for and bank reserves held. Money is unique among economic goods as because it is
usually not regarded as wealth (though gold, silver or other commodity money should be
included as part of wealth) but as a Device for exchanging and measuring wealth. An increase
in the gratuity of money in a country does not necessarily constitute an increase in the
country‟s wealth.
The difficulty of arriving at a single clear-cut definition of money has led economists to
distribute money in terms of the functions it performs. There is an old saying.
Money is a matter of functions four
A Medium, a Measure
A Standard, a Store
Alternatively, it may be said that money is anything, regardless of its physical or legal
characteristics that customarily and principally performs certain specified functions.
In other words, Money is what money does.
The functions of money are closely interrelated, but are nevertheless useful to differentiate
among them. The most familiar is that of medium of exchange whereby goods and services
are paid for and debts and other contracts discharged. Money is also the unit of account in
which records are kept, costs computed and values compared. It is a means of stating the
prices of goods and services and of expressing debts, salary and wage agreements, rents,
insurance obligations and innumerable other contracts. The other major function of money is
to serve as a reserve of ready purchasing power. Money is the only completely liquid asset.
Certain functions of money that were of major importance at one time declined while other
functions became more important and entirely new functions arose. For example, the use of
money as a store of value was important in earlier societies but became of relatively little
consequence in more advanced economies. People now prefer to store values in savings
deposits, insurance policies or securities where the unit of account function or money is
primary concern.

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 The age of commodity money gave way to the age of paper money. The essence of money,
its intrinsic nature, is typified by paper currency. Money as money rather than a commodity is
wanted not for its own sake but for the things it will buy.
The use of paper currency (dollar notes, Rupee notes etc.) has become widespread because
it has money conveniences as a medium of exchange. Currency is easily carried and stored
away.
Let us list the main kinds of money in daily use: Small Coins, Paper Currency, Bank
deposit money
Coins
The coins we use for small change are pennies, 5 cent pieces, 50 paise coins. This
constitutes the so-called “fractional currency”. In total, they do not add up to very much. The
metal in all these coins is worth for less than their face value and termed “token money”. In
advanced economies, the use of coins is negligible. Their quantity is limited by the demand of
the people to buy newspapers, chewing gums or pencils.
Currency
Far more significant is the second kind of money, Paper currency. Example: a hundred rupees
note. What does it say?
Reserve Bank of India – guaranteed by the Central Government – I promise to pay the
bearer the sum of one hundred rupees.
Today, all currencies are essentially “fiat” money. The currency note is „money‟ because
the government decrees it as money and citizens accept the currencies.
Limitation in the supply of money is the necessary condition if it is to have value, if
currency is unlimited in amount as to become practically a free good, people would have so
much of it to spend as to bid up all prices, wages, and income to dizzy heights. That is why
constitutional powers over money and banking are never given to private groups but are
vested in government.
The third categories of money are Demand Deposits with banks. If you have Rs. 5000.00
in your savings account at HDFC Bank, the deposit can be regarded as money. Why? Because
you can pay for purchases with cheque drawn on it. The deposit is like any other medium of
exchange and being payable on demand, it serves as a “Standard of value” or “unit of
account” in the same sense that Rs. 5000.00 worth of currency notes (Indian Rupees) do.
Possessing the essential properties of money, bank demand deposit might first as well be
counted as money and that is what is done now.
The disadvantages of barter provided an impetus for the development of money, which
was thus purely economic. But archaeological literacy and linguistic evidence of the ancient
world show that barter was NOT the main factor in the origins and earliest development of
money.
Many societies had laws requiring payment of compensation in some form crime. The
word PAY is derived from word PACARE meaning originally to pacify, appease or make
peace through some appropriate but of value acceptable to both sides. Similarly, there was
widespread custom of payment of bride money. Rulers had introduced payment of taxes or
tributes from their subjects. This gave an impetus to the spread of money.
Thus objects originally accepted for one purpose were often found to be useful for other
non-economic purposes and because of their growing acceptability began to be used for
general trading also.

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 One may be surprised to know that the invention of banking preceded that of coinage.
Banking originated in Ancient Mesopotamia where the royal palaces and templates
provided secure places for the safe keeping of grain and other commodities. Receipts came to
be used for transfers not only to the original depositors but also to third parties. Eventually,
private houses in Mesopotamia also got involved in these banking operations and laws
regulating them were included in the code of Hammurabee.
In Egypt also the centralization of harvests in state warehouse also led to the development
of a system of banking. Written orders were required to withdraw the grains.
The transition to quantities that could be counted rather than weighed came gradually. On
page 29 of „A History of Money – from Ancient Times to the Present Day‟, Glyn Davis pointed
out that the words “spend” „expenditure‟ and „pound‟ all came from the Latin word
„expenders‟ meaning „to weight‟.

Origins of Money and of Banking

The history of credit and banking goes back much further than the history of coins.
Nevertheless the story of the origins of money goes back even further still.
The origins of money in its various forms, and of banking, are discussed in the book by
Glyn Davies, „A History of Money – from Ancient Times to the Present Day‟, 3rd ed.
California: University of Wales Press, 2002, 720 p., on which this essay is based.
 What is Money?
 Functions of Money
 Causes of the Development of Money
 Primitive Forms of Money
 The Invention of Banking and Coinage
 Greek Coinage
 Money Exchange and Credit Transfer
 The Royal Monopoly of Minting
 Paper Money
 Intangible Money
 Noteworthy Points Regarding the Origins of Money

What is Money?
At first sight, the answer to this question seams obvious: the man or woman in the street
would agree on coins and banknotes, but would they accept them from any country? What
about cheques? They would probably be less willing to accept them than their own country‟s
coins and notes but bank money (i.e., anything for which you can write a cheque) actually
accounts for by far the greatest proportion by value of the total supply of money. What about
I.O.U.s (I owe you), credit cards and gold? The gold standard belongs to history but even
today, many rich people in different parts of the world would rather keep some of their wealth
in the form of gold than in official, inflation-prone currencies. The attractiveness of gold, from
an aesthetic point of view, and its resistance to corrosion is two of the properties, which led to
its use for monetary transactions for thousands of years. In complete contrast, a form of
money with virtually no tangible properties whatsoever – electronic money – seems set to gain
rapidly in popularity.

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 All sorts of things have been used as money at different times in different places. The
alphabetical list below, taken from page 27 of A History of Money, includes but a minute
proportion of the enormous variety of primitive moneys, and none of the modern forms:
Amber, beads, cowries, drums, eggs, feathers, gongts, hoes, ivory, jade, kettles, leather,
mats, nails, pigs, quartz, rice, salt, thimbles, umiacs, Vodka, wampum, yarn, and zappozats
(decorated axes)
It is almost impossible to define money in terms of its physical form or properties since
these are so diverse. Therefore, any definition must be based on its functions as stated below:
Functions of Money
Specific functions (mostly micro-economic)
 Unit of account (abstract)
 Common measure of value (abstract)
 Medium of exchange (concrete)
 Means of payment (concrete)
 Standard for deferred payments (abstract)
 Store of value (concrete)
General functions (mostly macro economic and abstract)
 Liquid asset
 Framework of the market allocative system (prices)
 A causative factor in the economy
 Controller of the economy

Not everything used as money has all the functions listed above. Furthermore, the
functions of any particular form of money may change over time. As Glyn Davies points out
on page 28:
“What is now the prime or main function in a particular community or country may
not have been the first or original function in time, while what may well have been a
secondary or derived function on one place may have been in some other region the
original which gave rise to a related secondary function. The logical listing of
functions in the table, therefore, implies no priority in either time or importance, for
those which may be both first and foremost reflect only their particular time and
place.”
He goes on to conclude from this that the best definition is:
Money is anything that is widely used for making payments and accounting for debits
and credits.
Causes of the Development of Money
In his preface Glyn Davies writes:
“Money originated very largely from non-economic causes: from tribute as well as
from trade, from blood-money and bride-money as well as from barter, from
ceremonial and religious rites as well as from commerce, from ostentatious
ornamentation as well as from acting as the common drudge between economic men.”
One of the most important improvements over the simplest forms of early barter was the
tendency to select one or two items in preference to others so that the preferred items became
partly accepted because of their qualities in acting as media of exchange. Commodities were
chosen as preferred barter items for a number of reasons – some because they were

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conveniently and easily stored, some because they had high value densities and were easily
portable and some because they were durable. These commodities, being widely desired,
would be easy to exchange for others and, therefore, they came to be accepted as money.
To the extent that the disadvantages of barter provided an impetus for the development of
money that impetus was purely economic but archaeological, literary and linguistic evidence
of the ancient world and the tangible evidence of actual types of primitive money from many
countries demonstrate that barter was NOT the main factor in the origins and earliest
development of money.
Many societies had laws requiring compensation in some form for crimes of violence,
instead of the Old Testament approach of “an eye for an eye”. The author notes that the word
to “pay” is derived from the Latin “pacare” meaning originally to pacify, appease, or make
peace with – through the appropriate unit of value customarily acceptable to both sides. A
similarly widespread custom was payment for brides in order to compensate the head of the
family for the loss of a daughter‟s services. Rulers have since very ancient times imposed
taxes on or exacted tribute from their subjects. Religious obligations might also entail payment
of tribute of sacrifices of some kind. Thus in many societies there was a requirement for a
means of payment for blood money, bride-money, tax or tribute and this gave a great impetus
to the spread of money.
Objects originally accepted for one purpose were often found to be useful for other non-
economic purposes and, because of their growing acceptability, began to be used for general
trading also, supplementing or replacing barter.
Thus, the use of money evolved out of deeply rooted customs; the clumsiness of barter
provided an economic impulse but that was not the primary factor. It evolved independently in
different parts of the world. About the only civilization that functioned without money was
that of the Incas.
Primitive Forms of Money
The use of primitive forms of money in the Third World and North America is more recent
and better documented than in Europe and its study sheds light on the probable origins of
modern money. Among the topics treated are the use of wampum and the custom of the
potlatch or competitive gift exchange in North America, disc-shaped stones in Yap, cowrie
shells over much of Africa and Asia, cattle, manillas and whales teeth.
Manillas were ornamental metallic objects worn as jewellery in West Africa and used as
money as recently as 1949. They were an ostentatious form of ornamentation, their value in
that role being a prime reason for their acceptability as money. Wampum‟s use as money inn
North America undoubtedly came about as an extension of its desirability for ornamentation.
Precious metals have had ornamental uses throughout history and that could be one reason
why they were adopted for use as money in many ancient societies and civilisations.
In Fijian society gifts of whales teeth were (and in certain cases still are) a significant
feature of certain ceremonies. One of their uses was as bride-money, with a symbolic meaning
similar to that of the engagement ring in Western society. Whales teeth were “tambua” (from
which our word “taboo” comes) meaning that they had religious significance, as did the fel
stones of Yap, which were still being used as money as recently as the mid-1960s.
The potlatch ceremonies of Native Americans were a form of barter that had social and
ceremonial functions that were at least as important as its economic functions. Consequently
then the potlatch was outlawed in Canada (by an act that was later repealed) some of the most
powerful work incentives were removed to the detriment of the younger sections of the Indian

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communities. This form of barter was not unique to North America. Glyn Davies points out
that the most celebrated example of competitive gift exchange was the encounter, around 950
BC, of Solomon and the Queen of Sheba. “Extravagant ostentation, the attempt to outdo each
other in the splendour of the exchanges, and above all, the obligations of reciprocity, were just
as typical in this celebrated encounter, though at a fittingly princely level, as with the more
mundane types of barter in other parts of the world” (page 13)
Cattle are described by the author as mankind‟s “first working capital asset” (page 41).
The religious use of cattle for sacrifices probably preceded their adoption for more general
monetary purposes. For sacrifice quality – “without spot or blemish” – was important but for
monetary purposes quantity was of more significance since cattle, like coins, can be counted.
Obviously there were very practical reasons for the association between cattle and wealth but
anthropological evidence from Africa in very recent times shows that when cattle are regarded
as a form of money, not only healthy cattle but also scrawny ones will be valued to the
detriment of the environment supporting them and their owners.
Glyn Davies quotes linguistic evidence to show how ancient and widespread the
association between cattle and money was. The English words “Capital”, “Chattels”, have a
common root. Similarly, „pecuniary‟ comes from the Latin word for cattle “pecus” while in
Welsh (the author‟s mother tongue) the word “da” used as adjective means “good” but used as
a noun means both “cattle” and “goods”.
The author also cautions “one should not confuse the abstract concept of an ox as a unit of
account or standard of value, which is its essential but not only monetary function, with its
admittedly cumbersome physical form. Once that is realized (a position quickly reached by
primitive man if not yet by all economists or anthropologists), the inclusion of cattle as money
is easily accepted, in practice and logic.” (page 41). He also points out that until wall into the
present century the Kirghiz of the Russian steppes used norses as their main monetary unit
with sheep as a subsidiary unit. Small change was given in lambskins.
The invention of Banking and Coinage
The invention of banking preceded that of coinage. Banking originated in Ancient Mesopotamia
where the royal palaces and temples provided secure places for the safekeeping of grain and other
commodities. Receipts came to be used for transfers not only to the original depositors but also to third
parties. Eventually, private houses in Mesopotamia also got involved in these banking operations and
laws regulating them were included in the code of Hammurabee.
In Egypt too, the centralization of harvests in state warehouses also led to the development
of a system of banking. Written orders for the withdrawal of separate lots of grain by owners
whose crops had been deposited there for safety and convenience, or which had been
compulsorily deposited to the credit of the king, soon became used as a more general method
of payment of debts to other persons including tax gatherers, priests and traders. Even after the
introduction of coinage these Egyptian grain banks served to reduce the need for precious
metals, which tended to be reserved for foreign purchases particularly in connection with
military activities.
Precious metals, in weighed quantities, were a common form of money in ancient times.
The transition to quantit6ies that could be counted rather than weighed came gradually. On
paper 29 of A History of Money – Glyn Davies points out that that the words “spend”,
“expenditure”, and “pound” (as in the main British monetary unit) all come from the Latin
“expendere” meaning “to weigh”. On page 74, the author points out that the basic unit of
weight in the Greek-speaking world was the “drachma” or “handful” of grain, but the precise

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weight taken to represent this varied considerably. For example, from less than 3 grams in
Corinth to more than 6 grains in Aegina. Throughout much of the ancient world the basic unit
of money was the stater, meaning literally “balancer” or “weigher”, the talent is a monetary
unit with which we are familiar with from the Parable of the Talents in the Bible. The talent
was also a Greek unit of weight, about 60 pounds.
Many primitive forms of money were counted just like coins. Cowrie shells, obtained from
some islands in the Indian Ocean, were a very widely used primitive form of money – in fact
they were still is use in some parts of the world (such as Nigeria) within living memory. “So
important a role did the cowrie play as money in ancient China that its pictograph was adopted
in their written language for money.” (page 36) Thus, it is not surprising that among the
earliest countable metallic money or “coins” were “cowries” made of bronze or copper, in
China.
In addition to these metal “cowries”, the Chinese also produced “coins” in the form of
other objects that had long been accepted in their society as money, e.g., spades, hoes, and
knives. Although there is some dispute over exactly when these developments first took place,
the Chinese tool currencies were in general use at about the same time as the earliest European
coins and there have been claims that their origins may have been much earlier, possibly as
early as the end of the second millennium BC. The use of tool coins developed (presumably
independently) in the West. The ancient Greeks used iron nails as coins, while Julius Caesar
regarded the fact that the ancient Britons used sword blades as coins as a sign of their
backwardness. However, the Britons did also mint true coins before the Romans conquered
them.
These quasi-coins were all easy to counterfeit and, being made of base metals, of low
intrinsic worth and thus not convenient for expensive purchases. True coinage developed in
Asia Minor as a result of the practice of the Lydians, of stamping small round pieces of
precious metals as a guarantee of their purity. Later, when their metallurgical skills improved
and these pieces became more regular in form and weight the seals served as a symbol of both
purity and weight. The first real coins were probably minted some time in the period 640 –
630 BC. Afterwards, the use of coins spread quickly from Lydia to Ionia, mainland Greece,
and Persia.

Greek Coinage
One of the smaller Greek coins was the silver obol. In the Attic standard of weights and
coinage six silver obols were worth one silver drachma. It is interesting to note that before the
development of coinage six of the pained spits or elongated nails used as tool currency
constituted a customary handful similar to that of the even earlier grain-based methods.
Therefore, one of the early Greek coins, the obol, was simply a continuation of a primitive
form of money – the iron spit or pointed rod.
Inflation was a problem even in the early days of coin production. In 407 BC Sparta
captured the Athenian silver mines at Laurion and released around 20,000 slaves. As a result,
Athens was faced with a grave shortage of coins and in 406 and 305 BC issued bronze coin
with a thin plating of silver. The result was that the shortage became even worse. Good coins
tended to disappear from circulation since people naturally kept them and used the new coins
instead in order to get rid of them.
This give rise to what is probably the world‟s first statement of Gresham‟s law, that bad
money drives out good. In Aristophanes play, The Frogs, produced in 405 BC Aristophanes‟
wrote “the ancient coins are excellent … yet we make no use of them and prefer these bad

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copper pieces quite recently issued and so wretchedly struck.” These base coins were
demonetised in 393 BC.
Considerable rivalry developed between different currencies. “In coinage as in other
matters the Greek city-states strove desperately for predominance, as did their arch-rivals the
Persian emperors.”
City-states with strong and widely accepted currencies would have gained prestige. In the
1960s, newly independent countries in the Third World took pride in the trappings of
nationhood – their own airlines, national banks, and currency. The beauty of their coins
suggests the city-states of ancient Greece took a similar pride in their currencies – as. Glyn
Davies quotes another author, J. Porteous, who wrote, “the fifth century saw the minting of the
most beautiful coins even made.” He also quotes two historians, Austin and Vidal-Naquet,
who claimed, “in the history of Greek cities coinage was always first and foremost a civic
emblem. To strike coins with the badge of the city was to proclaim one‟s political
independence.”
Coercion played a role in establishing monetary uniformity. In 456 BC, Athens forced
Aegina to take Athenian „owls‟ and to stop minting her own „turtle‟ coinage and in 449 BC,
Athens issued an edict ordering all „foreign‟ coins to be handed in to the Athenian mint and
compelling all her allies to use the Attic standard of weights, measures and money. The
conquests of Alexander the Great brought about a large degree of monetary uniformity over
much of the known world. His father, Philip, had issued coins celebrating his triumph in the
chariot race in Olympic games of 356 BC – an example of the use of coins as propaganda.
The Roman emperors made even more extensive use of coins for propaganda, one
historian going so far as to claim that “the primary function of the coins is to record the
messages which the emperor and his advisers desired to commend to the populations of the
empire.”
On pages 85-86, Glyn Davies points out that “coins were by far the best propaganda
weapon available for advertising Greek, Roman or any other civilisation in the days before
mechanical printing was invented.”

Money Exchange and Credit Transfer

The great variety of coinages originally in use in the Hellenic world meant that money
changing was the earliest and most common form of Greek banking. Usually, the money
changers would carry out their business in or around temples and other public buildings,
setting up their trapezlum-shaped tables (which usually carried a series of lines and squares for
assisting calculations), from which the Greek bankers, the trapexital derived their name, much
as our name for bank comes from the Italian banca for bench or counter. The close association
between banking, money changing and temples is best known to us from the episode of
Christ‟s overturning the tables in the Temple of Jerusalem (Matthew 21.12)
Money changing was not the only form of banking. One of the most important services
was bottomry or lending to finance the carriage of freight by ships. Other business enterprises
supported by the Greek bankers included mining and construction of public buildings. The
most famous and richest of all was Pasion who started his banking career in 394 BC as a slave
in the service of two leading Athenian bankers and rose to eclipse his masters, gaining in the
process not only his freedom but also Athenian citizenship. In addition to his banking,
business he owned the largest shield factory in Greece and also conducted a hiring business
leading domestic articles such as clothes, blankets, silver bowls, etc., for a lucrative fee.

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 When Egypt fell under the rule of a Greek dynasty, the Ptolemies (323-30 BC) the old
system of warehouse banking reached a new level of sophistication. The numerous scattered
government granaries were transformed into a network of grain banks with what amounted to
a central bank in Alexandria where the main accounts from all the state granary banks were
recorded. This banking network functioned as a giro system in which payments were effected
by transfer from one account to another without money passing. As double entry booking had
not been invented credit transfers were recorded by varying the case endings of the names
involved, credit entries being in the genitive or possessive case and debit entries in the dative
case.
Credit transfer was also a characteristic feature of the services provided in Delos, which
rose to prominence in banking during the late second and third centuries BC. As a barren
offshore island its inhabitants had to live off their wits and make the most of their two great
assets – the island‟s magnificent natural harbour and the famous temple of Apollo – around
which their trading and financial activities developed. Whereas in Athens banking, in its early
days, had been carried on exclusively in cash, in Delos cash transactions were replaced by real
credit receipts and payments made on simple instructions with accounts kept for each client.
The main commercial rivals of Delos, Carthage and Corinth were both destroyed by
Rome and consequently it was natural that the Bank of Delos should become the model most
closely imitated by the Banks of Rome. However, their importance was limited by the Roman
preference for cash transactions with coins. Whereas the Babylonians had developed their
banking to a sophisticated degree, because their banks has to carry out the monetary functions
of coinage (since coins had not been invented), and the Ptolemaic Egyptians segregated their
limited coinage system from their state banking system to economise on the use of precious
metals, the Romans preferred coins for many kinds of services which ancient (and modern)
banks normally provided. After the fall of the Roman Empire, banking was forgotten and had
to be re-invented much later.
Banking remerged in Europe at about the time of the Crusades. In Italian city-states, such
as Rome, Venice and Genoa, and in the fairs of medieval France, the need to transfer sums of
money for trading purposes led to the development of financial services including Bills of
Exchange. Although it is possible that such bills had been used by the Arabs in the eighth
century and the Jews in the tenth, the first for which definite evidence exists was a contract
issued in Genoa in 1156 to enable two brothers who had borrowed 115 Genoese pounds to
reimburse the bank‟s agents in Constantinople by paying them 460 bezants one month after
their arrival.
The Crusades gave a great stimulus to banking because payments for supplies, equipment,
allies, ransoms, etc., required safe and speedy means of transferring vast resources of cash.
Consequently, the Knights of the Temple and the Hospitaliers began to provide some banking
services such as those already being developed in some of the Italian city-states.

The Royal Monopoly of Minting

One of the reasons for the rapid spread of the use of coins was their convenience. In
situations where coins were generally acceptable at their nominal value, there was no need to
weigh them and in everyday transactions, where relatively small numbers were involved,
counting was quicker and far more convenient than weighing. By the middle Ages, monarchs
were able to use this convenience as a source of profit.
On pages 168, Glyn Davies writes, „because of the convenience of royalty authenticated
coinage as a means of payment, and with hardly any other of the general means of payment

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available in the Middle Ages being anything like as convenient, coins commonly carried a
substantial premium over the value of their metallic content, more than high enough to cover
the costs of minting. Kings could turn this premium into personal profit, hence … the
wholesale regular recall of coinage … first at six yearly, then at three-yearly intervals, and
eventually about every two years or so. In order to make a thorough job of this sort recycling
process, it was essential that all existing coins should be brought in so as to maximize the
profit and, in order to prevent competition from earlier issues, the new issues had to be made
clearly distinguishable by the authorities yet readily acceptable to the general public.”
These recoinage cycles were far more frequent than was justified by wear and tear of the
coins but the profits from minting, known as seigniorage, supplemented the revenue that
English monarchs rose from the efficient systems of taxation introduced by the Normans.
However, revenue from minting depended on public confidence in the coinage and
consequently an elaborate system of testing was introduced.
“Anyone who had occasion to handle coins of silver or gold in any volume, whether
merchants, traders, tax collectors, the King himself, the royal treasury, or the sheriffs, required
reliable devices for testing the purity of what passed for currency.” (Glyn Davies, p. 144). One
of these methods was rough and ready – the use of touchstones, which involved an
examination of the colour trace left by the metal on the surface of a schist or quartz stone. The
other, the Trial of the Pyx, was a test held in public before a jury. This Trial involved the use
of 34 “touch needles”, one for each of the traditional gold carats, with similar test pieces for
silver.
Thus, despite the challenges of counterfeiters, governments controlled coin production and
hence the money supply. Not until the rise of commercial banking and the widespread
adoption of paper money was this monopoly broken, with profound consequences for the
growth of democracy.
Paper Money
In China, the issue of paper money became common from about AD 960 onwards, but
there had been occasional issues long before that. A motive for one such early issue, during
the reign of Emperor Hien Tsung (806-821), was a shortage of copper for making coins. A
drain of currency from China, partly to buy off potential invaders from the north, led to greater
reliance on paper money with the result that by, 1020 AD the quantity issued was excessive,
causing inflation. In subsequent centuries there were several episodes of hyperinflation and
after about 1455 AD, after well over 500 years of using paper money, China abandoned it.

Bills of Exchange
With the revival of banking in western Europe, stimulated by the Crusades, written
instructions in the form of bills of exchange, came to be used as a means of transferring large
sums of money and the Knights Templars and Hospitallers functioned as bankers. (It is
possible that the Arabs may have used bills of exchange at a much earlier date, perhaps as
early as the eighth century). The use of paper as currency came much later.

Goldsmith Bankers
During the English Civil War, 1642-1651, the goldsmith‟s safes were secure places for the
deposit of jewels, bullion and coins. Instructions to goldsmiths to pay money to another
customer subsequently developed into the cheque (or check in American spelling). Similarity

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goldsmith‟s receipts were used not only for withdrawing deposits but also as evidence of
ability to pay and by about 1660 these had developed into the banknote.

Virginian Tobacco
In England‟s American colonies a chronic shortage of official coins led to various
substitutes being used as money, including in Virginia, Tobacco, leading to the development
of paper money by a different route. Tobacco leaves have drawbacks as currency and
consequently certificates attesting to the quality and quantity of tobacco deposited in public
warehouses came to be used as money and in 1727 were made legal tender.

Gold Standard
Although paper money obviously had no intrinsic value its acceptability originally
depended on its being backed by some commodity, normally precious metals. During the
Napoleonic Wars, convertibility of Bank of England notes was suspended and there was some
inflation which, although quite mild compared to that had occurred in other wars, was
worrying to contemporary observers who were used to stable prices and, in accordance with
the recommendations of an official enquiry, Britain adopted the gold standard for the period in
1816. For centuries earlier silver had been the standard of value. The pound was originally an
amount of silver weighing a pound. France and the United States were in favour of a
bimetallic standard and in 1867, an international conference was held in Paris to try and widen
the area of common currencies based on coins with standard weights of gold and silver.
However, when the various German states merged into a single country in 1871 they chose the
gold standard. The Scandinavian countries adopted the gold standard shortly afterwards.
France made the switch from bimetallism to gold in 1878 and Japan, which had been on a
silver standard, changed in 1897. Finally, in 1900, the United State officially adopted the gold
standard.
With the outbreak of the First World War in 1914, Britain decided to withdraw gold from
internal circulation and other countries also broke the link with gold. Germany returned to the
gold standard in 1924 when it introduced a new currency, the Reichsmark and Britain did the
following year, and France in 1928. However, the British government had fixed the value of
sterling at an unsustainable high rate and in the worldwide economic crisis in 1931, Britain,
followed by most of the Commonwealth (except Canada) Ireland, Scandinavia, Iraq, Portugal,
Thailand and some South American countries abandoned gold.
The United States kept the link to gold and after the Second World War; the US dollar
replaced the pound sterling as the key global currency. Other countries fixed their exchange
rates against the dollar, the value of which remained defined in terms of gold. In the early
1970s, the system of fixed exchange rates started to break down as a result of growing
international inflation and the United States abandoned the link with gold in 1973.
Intangible Money
The break with precious metals helped to make money a more elusive entity. Another
trend in the same direction is the growing interest in forms of electronic money from the
1990s onwards. In some ways, e-money is a logical evolution from the were transfers that
came about with the widespread adoption of the telegraph in the 19th century but such
transfers had relatively little impact on every shopper.
The evolution of money has not stopped. Securitisation, the turning of liquid assets into
cash, developed in new directions in the 1990s. One much publicised development was the

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invention of bonds backed by intangible assets such as copyright of music, e.g., Bowie bonds,
named after those issued by the pop star David Bowie. (See also Something Wild, the first
novel dealing with Bowie bonds)

Noteworthy Points Regarding the Origins of Money

Some of the points stressed by Glyn Davies in his book are:
 Money did not have a single origin but developed independently in many different
parts of the world.
 Many factors contributed to its development and if evidence of what anthropologists
has learned about primitive money in anything to go by, economic factors were not the
most important.
 Money performs a variety of functions and the functions performed by the earliest
types were probably fairly restricted initially and would NOT necessarily have been
the same in all societies.
 Money is fungible; there is a tendency for older forms to take on new roles and for
new forms to be developed which take on old roles, e.g., (this is my example) on
English banknotes such as the 5 pound notes it says “I promise to pay the bearer on
demand the sum of rive pounds” and below that it carries the signature of the chief
cashier of the Bank of England. This is a reminder that originally banknotes were
regarded in Britain, and in many other countries, as a substitute for money and only
later did they come to be accepted as the real thing.

Relevance of History
One of Glyn Davies‟s main motives for writing the book was that, as he writes in this
preface, around the next corner there may be lying in wait apparently quite novel problems
which in all probability bear a basic similarity to those that have already been tackled with
varying degrees of success or failure in other times and other places. Furthermore, he is of the
opinion that economists, especially monetarists, tend to overestimate the purely economic,
narrow and technical functions of money and have placed insufficient emphasis on its wider
social, institutional and psychological aspects.
There issues aren‟t simply of academic interest. Economists still argue about how to
measure and control the money supply and numerous different measures, corresponding to
slightly different definitions have been proposed. These disputes have implications for the
material well being of everyone, especially now that, thanks to the development of computer
networks, new forms of money are coming into existence. Hence the importance of learning
from history.
[Source: Ray Davies‟ Home Page]

A Brief History of Money

Period Chronology of Developments

C 9000 - Cattle is probably the oldest form of money. Also agricultural products and
6000 BC grains.
C 3100 BC The main use and probable motivation for the development of writing is for
keeping accounts.

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C 3000 - Banking originated in Babylonia and of the activities of temples and
2000 BC palaces considered safe palaces for storing of valuables. Initially grains
deposited subsequently, cattle, agricultural implements and precious metals.
C 2575 BC Construction of the great pyramid at Giza. Slaves/prisoners used in Money?
No clear proof. The Incas in Peru managed without money at all. Is it
because of a rigidly hierarchical civilization?
C 2250 – Cappadocia rulers guarantee quality of silver ingots. First state
2150 BC guarantee? Helped in wider acceptance as money
C 1792 - The code of Hammurabi includes laws governing banking operations.
1750 BC
C 1200 BC Cowries used as money in China. The Chinese character for “Money”
originally represented a „a Cowrie shell‟. Cowries also used in different
parts of the world including India as money.
C 1000 – Tool currencies (spades, hoes, and knives) accepted in a commercial
500 BC exchanges in China.
C 900 BC Queen of Sheba visits Solomon and they exchange gifts.
C 687 BC Herodotus criticizes gross commercialization by the Lydian‟s who were not
only the first people to coin money but also to open permanent retail shops.
C 640 - The earliest coins made in Lydia, Asia Minor, consisted of electrum, a
630 BC naturally occurring amalgam of gold and silver.
C 600 BC Pythons who operates in Asia Minor is the first banker for which records
were available
C 600 BC Round base metal coins made in China. Being made of base metal
300 BC the Chinese coins were of relatively low value and not convenient for
expensive purchase.
546 BC Croesus King of Lydia is captured by the Persians. As a result, use of coins
spreads to Persia. The Persians used mainly gold coins and not silver as
done by the Greeks.
490 BC Athenians discover silver mines at Laurion and use this for building a fleet
of ships.
407 BC Sparta captured the Laurion mines and released 20,000 slaves from the
mines and cuts off supply of silver to Athens. Shortage of silver coins in
Athens.
406 BC Athen1 s forced to issue bronze coins with coating. The Athenian public
hoards silver coins, which quickly disappear from circulation, leaving only
inferior bronze coins for circulation. Is it the first example of „bad money

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 drives good money out of circulation?‟ Probably the world‟s first statement
of Gresham‟s Law.
394 -371 BC Passion, a slave becomes the wealthiest and most famous great banker and
gains his freedom. Greek banking transactions primarily carried out in cash.
390 BC The Galls attacked Rome. The cackling of the geese in the „capital‟ where
the city‟s reserves of money were kept alerted the defenders. The grateful
Romans built a Shrine to Moneta, the goddess of warning and from Moneta
the words Money and mint are derived.
360 – 336 BC King Philip II of Macedonia deliberately mints for more coins to support
the campaign against Persia, He is probably the first to use coin for
“Propaganda” as he issued the golden slater showing his triumph in Chariot
race in the Olympics in 356 BC.
350 BC The rate of interest was 10% for „normal‟ business and say for shipping it
was 20 to 30%.
336 – 323 BC To run his campaign in Asia Minor, Alexander needed half a ton of silver
every day. But after he defeated Persia he captured huge quantities of gold.
Coins were made from the gold and Alexander fixed the exchange rate at
10 units of silver equals one of gold.
323 - 30 BC In Egypt, the Ptolemies transformed local warehouse deposit systems into a
GIRO system with a Central Bank in Alexandria. Payments were made
from one account to another without exchange of money.
269 BC Despite Greek influence in Sicily and southern Italy, Romans were
relatively late in adopting coinage.
118 BC China introduced leather money consisting of white deerskin, about one
foot square.
30 BC – 14 AD Augustus reforms the Roman monetary and taxation systems. He issued
almost pure gold and silver coin and new brass and copper coins.
30 AD Jesus Christ overturns the money changers table (Mathew 21.12)
250 AD Rome reduced silver content of its coins by 40% and in twenty years to 4 %
300 – 337 AD Emperor Constantine secures control over the West, issues new gold coin,
the SOLIDUS which continued to remain in the market for the next 700
years.
435 AD As a result of Anglo-Saxon invasions, Britain ceases use of coins as money
for nearly 200 years.
561 AD Coins are again minted in England by Bishop Lindard who came from
France.

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806 – 821 AD In China, a severe shortage of copper for making coins caused the emperor
to issue paper money notes.
871-899 AD During the reign of King Alfred, he prevents the Danes from conquering
the whole of England and the output of the mints was stepped up to pay for
defence.
910 AD China again issues paper money. From 960 AD China regularly issued
paper money.
959 – 975 AD The issue of coins strictly regulated in England to ensure uniform type and
standard.
973 AD England also started regular six-year cycle of recoinage. Coins
authenticated by Royal Mints had higher value than their silver contents.
1020 AD In China, the total amount of cash was nominally worth 2,830,000 ounce of
silver. Vast amount of cash was spent on defence and on imports leading to
cash shortage. The authorities issued more notes, which caused
INFLATION. There were 16 note-issuing houses.
1086 AD The detailed survey of the wealth of England provided the information for
determining the appropriate level and yields of taxation and formed the
basis of the New English fiscal System.
1095 – 1270 AD The Crusades – the need to transfer large sums of money; to finance the
Crusades provides a stimulus to the re-emergence of banking in Western
Europe.
1124 AD On Christmas day 1124, all the Mint Makers in England are punished by
having their right hands cut off. This produced a temporary improvement in
coinage. The quality of English currency had fallen drastically during the
reign of Henry I.
1149 AD Hung Tsun‟s CHHIUAN CHIH or a Treatise on Coinage is the first known
treatise on numismatics in any language.

1156 AD Profit making on the basis of time differences takes off without infringing
CANON LAWS against USURY.
1160 – 1200 AD English wooden TALLIES evolve into instruments of credit. What are
TELLIES?
1185 – 1188 AD Henry H levies new Crusading Tax in 1185 and attempts to speed up the
assessment process by introducing self-assessment.
1194 AD During his return from the Crusade, Richard I was taken prisoner, sold to
Emperor Henry VI and held for ransom. He was released after payment of
ransom money for Pound 1,00,000 (this showed the sign of prosperity of
England).

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1236-1260 AD The Mongol Empire issues paper money and Kublai Khan issues paper
money in 1260.
1275 – 1292 AD From the accounts of his travels, Marco Polo makes people of Europe learn
about paper money.
1282 AD TRIAL OF THE PYX – A public test of the purity of gold and silver coins
– this continues in Britain even today.
1294 AD Paper money issued in Persia with disastrous results and the currencies
withdrawn in two Months.
1299 AD England restricted export of silver bullion.
1319 -1331 AD Parts of India and Japan issue paper money for a short while.
1344 AD To reduce the temptation to illegally export coins, the weight of the
PENNY slightly reduced.
1401 AD Bank of Barcelona founded
1403 AD Charging interest on loans is ruled legal in Florence – Despite traditional
Christian prohibition of usury, Italian bankers such as the Lombards who
had agents in the main economic centres of Europe had been making
charges for loans.
1450 AD The 14th and 15th centuries Europe suffered from „Great Bullion Famine‟.
Position slightly improved after the Portuguese started bringing Sub-
Saharan gold via Ghana and Mali.
1452 – 1519 AD Leonardo da Vinci design for a press to produce uniform coins using water
driven mill adopted and new coins called MILLED money.
1455 AD China abandons paper money.
1492 AD Columbus discovers America – source of future suppliers of Gold?
1498 AD Vasco da Gama reaches India. The discovery of new trade routes stimulates
the development of capital and foreign exchange markets and the use of bill
of exchange.
1500 – 1540 AD Huge supplies of New World gold reach Spain.
1511 AD Protestant Reforms begin. Henry VIII of England after breaking with Rome
legalizes the charging of interest. An upper limit of 19% per annum was
set.
1545 AD Huge amount of silver discovered in Bolivia.
1553 AD The Russia Company – the first English joint stock company is founded.
1560 AD Elizabeth I begins the reform of England‟s debased coins.

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1566 AD The Royal Exchange is built reflecting the new importance of banking and
particularly foreign exchange dealing in England.
1577 – 1580 AD Sir Francis Drake circumnavigates the globe; England seized booty from
Spaniards estimated between Pound 300000 and 1500000. The famous
Economist John Maynard Keynes described this as “the fountain and origin
of British Foreign investment.”
1600 AD Imports from India to England cause a drain of precious metals from
England to India.
1602 AD The Dutch East India Company founded to provide financial backing for
Dutch competition with England in the Far East for control of the pepper
market.
1609 AD Bank of Amsterdam is founded. Later, its example inspires the
establishment of Bank of England.
1613 AD As a result of the lack of low denomination coinage in England, token coins
produced by unofficial mints that paid the King nothing.
1619 AD Tobacco begins to be used as currency in Virginia and this continued for
200 years.
1621 AD Bank of Nuremburg founded.
1633 – 1672 AD Some British goldsmiths, by dealing in domestic and foreign coins and by
letting their safes to be used for deposits of valuables, gradually evolve into
bankers.
1640 AD China became dangerously dependent on New World supplies of silver for
its currency. Supplies from these sources start to dry up with disastrous
consequences for the Ming economy.
1645 AD Paris mint is fully mechanized and starts production of milled coins.
1659 AD The earliest instant of a British cheque is issued – this was an order to the
London goldsmiths Morris and Clayton to pay Mr Delboe Pounds 400.
1661 AD Bank of Sweden issues notes – the first chartered bank in Europe to do so.
1688 AD William of Orange and his wife Marry are made jointly sovereign by
Parliament after James II flees to France. Political and economic power is
in the process of shifting from the monarch to the moneyed classes and thus
financial and constitutional revolutions are closely intertwined.
1694 AD The Bank of England Act passed for founding the Bank of England.
1695 AD Bank of Scotland founded. The first joint stock bank in Europe, solely
dependent on private capital and wholly unconnected with the state.

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1707 AD Act of Union of England and Scotland – provided a stipulation that the
United Kingdom should have a uniform coinage – a single currency
symbolizing and connecting a United Kingdom.
1760 AD Demand for wampum as a currency remained strong. Wampum factory
opened in New Jersey,
1762 AD Baring Bank founded (Britain‟s oldest merchant bank went bankrupt in
1995)
1770 AD London Clearing House created.
1775 – 1783 AD The American Revolution and War of Independence financed
overwhelemly by printing money, which eventually led to hyperinflation.
1776 AD Adam Smith in his Wealth of Nations drew attention to the benefits of
paper money in simulating business both in Scotland and in the American
colonies.
1780 – 1810 AD Large number of banks (over 800) founded in England and Wales,
primarily to meet the working capital needs of small warships, mines, etc.
Without these banks the Industrial Revolution would have been strangled in
its infancy.
1780 AD Bank of Pennsylvania, the first American bank established since the
Declaration of Independence from Britain. It was basically for raising funds
for the American Army, which was in a desperate financial situation.
1783 AD The use of wooden Tallies abolished.
1793 AD The Bank Indemnity Act gave the directors of the Bank of England
legal immunity for loans to the government which had to borrow large
sums for the war against France.
1800 – 1860 AD When cowries shells were first introduced in Uganda at the end of the 18th
century, two were sufficient in purchase a wife. Thereafter, the wholesale
importation of cowries caused inflation with the result that by 1860 one
thousand cowries were needed to gat a wife.
1800 AD The Bank of France founded over a century after England, Holland, and
Sweden.
1803 AD Napoleon in need of cash to finance his wars, offers to sell Louisiana to the
United States for 15 million dollars. Two British banks, viz Barings and
Hopes agreed to lend the money and despite the wars, transfer the money.
1806 AD Bank of Bengal founded – for hundreds of years before the creation of the
first formal Western style bank, financial services have been provided in
India by caste such as Multanis, Marwaris and Pathans who provided
credit, collected deposits and arranged trading deals through bills of
exchange or hundi. The Bank of Bengal is the first of the so-called

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 Presidency banks to be established during British Rule to supplement the
internal money supply in India.
1824 AD Parliament rejected decimalization of British currency. Again proposals
made in 1853, 1857 and 1918 were also rejected and finally put into effect
only in 1971.
1826 AD Treasury Tallies are abolished and later the redundant tallies returned to the
House of Commons.
1832 AD Capital punishment for forging bank notes abolished in Britain. Instead the
forgers were exiled to Australia.
1833 – 1834 AD The National Labour Exchange created by Robert Owen, issued paper
money in the form of “Labour Notes” – the experiment failed with the
failure of the Grand National Trade Union.
1835 AD East India Company authorised to issue Rupees. Silver rupee given legal
tender statues.
1835 AD East India Company authorised to issue Rupees. Up to the time, India has
about 25 varieties of indigenous rupees.
1840 AD Presidency Bank of Bombay founded
1842 AD Oriental Bank founded – it was an exchange bank established for financing
trade and foreign exchange from which the Presidency banks were debarred
by their charters.
1843 AD Chartered Bank founded in India for financing external trade and foreign
exchange.
1843 AD Presidency Bank of Madras founded.
1848 AD The discovery of gold in California leads in the following decade to a
massive increase in the production of gold coins by the mint with the result
that USA moves away from bimetallism to a Gold standard.
1850 AD Germany has a large number of savings banks with the total reaching 1200.
1851 AD Gold discovered in Australia leading to huge supplies.
1857 AD The London registered Mercantile Bank with its Indian base operate in
Singapore and Malaya and issue notes there.
1860 – 1921 AD The number of banks reach 30,000 in 1921 in the USA.
1860 AD Credit Agricole founded in France with its primary function to supply
credit for Agriculture and subsequently Credit Agencies developed into one
of the world‟s largest banks.

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1860 AD The Russian State Bank established - two public banks earlier established
by Catherine the Great in 1768 to finance her war with Ottoman Empire but
in 1860, a proper state bank with wider functions established.
1861 AD Post Office savings banks with wide coverage and long opening hours
founded in Britain. Ultimately, the government also gained as the savings
were under the control of the Treasury.
1867 AD While the official currency was the Indian Rupee in Malaya and Singapore,
the general public kept their accounts and paid taxes in dollars and cents. In
1867, the British government gave legal tender status to dollars from Hong
Kong, Mexico, Bolivia. Further in 1874, Japanese Yen and US Dollar also
made legal tenders in Singapore.
1870 -1890 AD After 1870, there was a vast increase in the amount of silver coming on to
world markets because of new mines and demonetization of silver, as
Germany, Scandinavia and other countries shift to gold standard. As a
result the undebased silver coinage of India, the currencies of China, Japan
and South East Asia suffered unprecedented fall in values
1871 AD The German states unite and adopt the Mark as their common currency
based on gold standard.
1871 AD A national mint established at Osaka and the decimal system of Yen and
Sen introduced
1872 AD American rules to serve as a model for Japanese commercial banks and
Japanese National Bank Act passed. The first bank created under this act
was Dai Ichi Bank.
1873 AD The Silver Dollar ceased to be a standard of value in the USA with the
passage of US Coinage Act and USA was virtually on gold standard in
practice, if not in law.
1875 AD The US Resumption Act was passed with the intention to restore the
convertibility of bank notes into gold. Full redemption was promised by
01/01/1879.
1879 AD Brain drain of young bankers from Britain to other parts of the world.
Institute of Bankers (England & Wales) founded.
1893 AD Japan officially adopts the gold standard.
1904 AD Foreign coins lose legal tender status in Singapore. “Srait Settlement”
(Singapore) dollar already introduced in 1902.
1910 AD Horses still used as money by the Kirghiz in Russian Empire.
1914 AD New British notes issued and gold is withdrawn from circulation. The
success of the notes allows banks to withdraw gold gradually from internal
circulation thus putting a quite end to the gold standard.

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1921 AD The Imperial Bank formed in India will the merger of the three former
Presidency Banks.
1929 AD The New York Stock Market crash on 24th October. Fed tightens credit
causing a slump in the US economy.
1929 - 1933 AD The Great Depression.
1930 AD Bank of International Settlements founded.
1932 AD The Keynisian Era started.
1933 AD Adolf Hitler becomes German Chancellor – economy geared to
rearmament.
1933 AD President Roosevelt launches “New Deal”.
1935 AD Reserve Bank of India – India‟s Central Bank is modelled on the Bank of
England.
1944 AD The Bretton Wood agreement – reached at Bretton Wood, the USA
envisaged a system of. (i) Convertible currencies, (ii) Fixed exchange rates.
(iii) Free trade (iv) Creation of new financial institutions like (a) IMF and
(b) IBRD.

[Source: A History of Money from Ancient Time to the Present Day by Glyn Davies]

A Brief History of Banking

Banking activities were sufficiently important in Babylonia in the second millennium BC
that written standards of practice was considered necessary. These standards were part of the
Code of Hammurabee A – the earliest known formal law. Obviously, these primitive banking
transactions were very different in many ways from their modern-day counterparts. Deposits
were not of money but of cattle, grain of other crops and eventually precious metals.
Nevertheless, some of the basic concept-underlying today A‟s banking system were present in
these ancient arrangements, however. A wide range of deposits was accepted, loans were
made, and borrowers paid interest to lenders.1
Similar banking type arrangements could also be found in ancient Egypt. These
arrangements stemmed from the requirement that grain harvests be stored in centralized state
warehouses. Depositors could use written orders for then withdrawal of a certain quantity pf
grain as a means of payment. This system worked so well that it continued to exist even after
private banks dealing in coinage and precious metals were established.2
We can trace modern-day banking to practices in the Medieval Italian cities of Florence,
Venice and Genoa. The Italian bankers made loans to princes, to finance wars and their lavish
life styles, and to merchant engaged in international trade. In fact, these early banks tended to
be set up by trading families as a part of their more general business activities. The Bardi and
Peruzzi families were dominant in Florence in the 14th century and established branches in
other parts of Europe to facilitate their trading activities.3 Both these banks extended

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substantial loans to Edward III of England to finance the 100 years war against France. But
Edward was defeated and the banks failed.
Perhaps the most famous of the medieval Italian banks was the Medici bank, set up by
Giovanni Medici in 1397.4 The Medici had a long history as moneychangers, but it was
Giovanni who moved the business from a green-covered table in the market place into the hall
of a palace he had built for himself. He expanded the scope of the business and established
branches of the bank as far north as London. While the Medici bank extended the usual loans
to merchants and royals, it also enjoyed the distinction of being the main banker for the Pope.
Papal business earned higher profits for the bank than any of its other activities and was the
main driving force behind the establishment of branches in other Italian cities and across
Europe.
Much of the international business of the mediaeval banks was carried out through the use
of Bills of Exchange. At the simplest level, this involved a creditor providing local currency to
the debtor in return for a bill stating that a certain amount of another currency was payable at a
future date A- often at the next big international fair. Because of the prohibition on directly
charging interest, the connection between banking and trade was essential. The bankers would
take deposits in one city make a loan to someone transporting goods to another city, and then
take repayment at the destination. The repayment was usually in a different currency, so it
could easily incorporate what is essentially an interest payment, circumventing the church
prohibitions. An example shows how it worked. A Florentine bank would lend 1000 Florins in
Florence requiring repayment of 40,000 pence in three months in the bank A‟s London office.
In London, the bank would then loan out the 40,000 pence to be repaid in Florence at a rate of
36 pence per florin in three months. In six months, the bank makes 11.1 percent A- that A‟s an
annual rate of 23.4 percent. It is also interesting to note that these medieval bankers used a
double-entry bookkeeping system and that purely book transfer could execute payments. 5
During the 17th and 18th centuries the Dutch and British improved upon Italian banking
techniques. A key development often credited to the London goldsmiths around this time was
the adoption of fractional reserve banking.6 By the middle of the 17th century, the civil war
had resulted in the demise of the goldsmith a traditional business of making objects of gold
and silver. Forced to find a way to make a living, and have the means to safety store precious
metal, they turned to accepting deposits of precious metals for safekeeping. The goldsmith
would then issue a receipt for the deposit. At first, these receipts circulated as form of money.
But eventually, the goldsmiths realized that, since not all of the depositors would demand their
gold and silver simultaneously, they could issue more receipts than they had metal in their
vault.
Banks became an integral part of the US economy from the beginning of the Republic.
Five years after the Declaration of Independence, the first chartered bank was established in
Philadelphia in 17817 and by 1794, there were seventeen more. At first, bank charters could
only be obtained through an act of legislation. But, in 1838, New York adopted the Free
Banking Act, which allowed anyone to engage in banking business as long as they met certain
legal specifications. As free banking quickly spread to other states, problems associated with
the system soon became apparent. For example, banks incorporated under these state laws had
the right to issue their own bank notes. This led to a multiplicity of notes A-many of which
proved to be worthless in the (all too common) event of a bank failure.
With the civil war came legislation that provided for a federally chartered system of banks.
This legislation allowed national banks to issue notes and placed a tax on state issued bank

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notes. These national bank notes came with a federal guarantee, which protected the note-
holder if the bank failed. This new legislation also brought all banks under federal supervision.
In essence, it laid the foundations of the present-day system.

References
1. Davies, G. A History of Money from Ancient Times to the Present Day. Cardiff, UK:
Univ. of Press. 1994
2. Davies (1994). op. cit.
3. Hoggson, N. F. Banking through the Ages. New York, Dodd. Mead & Co.1926.
4. Goldthwaite, R. A. Banks, places and entrepreneurs in Renaissance Florence.
Aldershot, Hampshire, Variorum, 1995.
5. Goldthwaitel (1995) op. cit.
6. Davies (1994). op. cit.

The Indian Banking System

Indian banking is as ancient as Indian trade ands commerce.

The Arthasatra of Kautilya (about 300 BC) describes powerful guilds of Merchant
Bankers who took deposits, granted loans and performed many banking functions as we see
today.
Meadows Taylor in his Students‟ Manual of the History of India wrote – “ The laws of
Menoo disclose how thoroughly the science of banking was known 3000 years ago. Then
bankers understood and followed the fluctuations of money value. They kept account books,
daybooks and ledgers by single and double entries. They charged interest, simple and
compound, they made insurances by sea and land, they rented Bills of Exchange, and in short
they followed the practices of modern times which are little changed from ancient rules.”
The series of Muslim invasions initiated a period of instability and insecurity, which
took a fatal toll on the old banking system; individuals shied away from the banking system
and started hoarding money/wealth. Individual bankers continued to prosper. They combined
commerce with banking.
No Royal Court was complete without a state banker.
The House of Jagat Seth, for example, was a hereditary banker for the Nawabs of
Bengal.
Even the East India Company relied on Indian Bankers.
Their influence continued till the advent of Agency Houses towards the end of 19th
century Gradual establishment of European type of banks.
The Presidency banks and introduction of Uniform currency eroded the importance of
indigenous bankers.
For another one and a half Centuries the Indigenous Bankers played an important role in
India‟s economy.
The Indian banker could be found in all towns and large villages.
The Chetty community in Tamil Nadu
The Nattukottai Chetties in Madurai
The Shroffs, the Multanis, the Marwaries – to name a few, played an important role.

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 They continued to be Moneychangers – imagine their role at a time when each princely
state had its own coin/currency.
The Shroffs also gave letters of credit, dealt in hundis (internal Bills of Exchange).
Early twentieth century the indigenous bankers lent money to farmers, petty artisans and
small traders; they sent their agents to tranship treasure etc.
The British administration never under estimated the indigenous bankers as is seen from.
The statement of Sir George Schuster in course of his remarks on the Reserve Bank Bill
in the Assembly – „It is impossible to overestimate the importance of the part that the
indigenous banker plays in the whole of banking and credit machinery of India … … Until the
vast portion of India‟s banking and credit machinery which is represented by the indigenous
bankers is put into gear with the relatively small machine of modernized money market, it will
be impossible for the Reserve Bank to exercise full control of currency and credit of India.

The Indian Banking System up to the late Nineteen Thirties

The Reserve Bank of India

The Imperial Bank of India The Exchange/Foreign Banks

Indian Joint Stock Banks

The Cooperative Banks The indigenous Bank

Shroffs, Multanis, Banias, Marwaris, Chetties

1. The European System: the Agency Houses of Calcutta first introduced The European
System of banking in India. (Jathar & Beri - Indian economics. p. 446)
2. In their capacity as bankers the Agency Houses of Kolkata did business with the
merchant princes in India, with the planters, advanced loans for mortgage of ships,
indigo factories etc. Europeans deposited their savings with the Agency Houses as
they paid attractive Interest in those deposits.
3. The first banking institution on the lines of European Joint Stick Banks was Bank of
Hindostan, Calcutta.
4. The three Presidency Banks (viz. Bank of Bengal, (1806), Bank of Bombay (1840) and
Bank of Madras (1843) were given monopoly of government banking - this continued
for many years with IBI and SBI being created/ carved out of these entities.
5. Presidency; Banks could not
i) do Foreign Exchange business
ii) borrow money from abroad
iii) adhere to certain lending / borrowing norms
6. Presidency banks to the Imperial Bank – Act passed in September 1920 – by
amalgamating the three Presidency Banks. It was a private corporation like the Bank

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 of England or the Bank of France but it was also (till the establishment of Reserve
Bank of India) a State bank in a restricted sense.
7. The control of Imperial Bank done through Central Board of Governor with local
Board at Calcutta, Bombay and Madras.
8. The Reserve Bank of India Act (1934)
The preamble to the Act states that it is expedient to start a Reserve Bank of India to
regulate the issue of bank notes and keeping of services with a view to securing
monetary stability in British India and generally to operate the currency and credit
system of the country to its advantage.
9. RBI and Imperial Bank
Imperial bank to be the sole agent of the Reserve Bank at all places in British India
where there is a branch of Imperial Bank in existence at the time the Reserve Bank Act
comes into operation and where there is no branch of Reserve Bank (Jathar & Beri:
Indian economics Vol. II. p. 512). The first Governor of Reserve Bank was Sir
Osborne A. Smith who was earlier the Governor of Imperial Bank.

Bank Failures in early 1900

1) From 1860 onwards-large number of Joint Stock banks were established in India. A
few mentioned below:
The Bank of Upper India (1863)
Allahabad Bank (1865)
Oudh Commercial Bank (1881)
Pubjab National Bank (1894)
Peoples‟ Bank (1901)
2) Also banks like the following were established
Bank of India
Indian Special Bank
Indian Bank (Madras)
Pubjab & Sind Bank
Bombay Banking Co.
Bank of Baroda
3) Initially most banks did well. But many indulged in unsafe and speculative business
with slender reserves.
4) The famous economist J. M. Keynes predicted speedy disaster. He wrote in 1913:
“In the case of smaller banks, dealing as they are with clients to whom banking
is a new field and in a new country where hoarding is still dominant, the cash
balances seen from available figures indicates to be hopelessly inadequate and
it is had to doubt in the next bad times they will go down like ninepins” –
Indian Currency & Finance p. 225
5) The First World War and the post-war boom brought in many new banks. By the year
1924 as many as 161 banks failed.
6) Of the post-war failures, the most important was the failure of Alliance Bank of Simla
in 1923. It shook the public confidence in banking, in savings and investment habits
and badly injured the country‟s trade and commerce.
7) What could be the causes of bank failures in and around 1913-14?

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 i) Slender percentage of cash to deposit liability, the average being 10 to 11
percent.
ii) Absence of able managers and directors with the required knowledge of
banking business.
iii) Lack of proper supervision by the Directors.
iv) Fraudulent dealings by some of the directors and managers.
v) Gullibility of depositors.
vi) Window dressing of balance sheets.
vii) Payment of high dividends (sometimes even from capital).
viii) Lack of control and supervision from government.
8) Were Indians “bad” bankers? – discuss.
Yes? Then look at what happened in Europe, the USA and elsewhere.

Islamic Banking

Islamic banks appeared on the world scene as active players over two decades ago. But
“many of the principles upon which Islamic banking is based, have been commonly accepted
all over the world, for centuries rather than decades”. The basic principle of Islamic banking is
the prohibition of Riba – (usury – or interest). While a basic tenet of Islamic banking – the
outlawing of Riba, a term that encompasses not only the concept of usury, but also that of
interest – has seldom been recognised as applicable beyond the Islamic world, many of its
guiding principles have. The majority of these principles are based on simple morality and
common sense, which form the bases of many religions, including Islam. The universal nature
of these principles is immediately apparent even at the cursory glance of non-Muslim
literature. Usury; was prohibited in both the Old and New Testaments of the Bible, while
Shakespeare and many other writers, particularly those writing in the 19th century, have
attacked the barbarity of the practice. Much of the morality championed by Victorian writers
such as Dickens – ranging from the equitable distribution of wealth through to man‟s
fundamental right to work – is clearly present in modern Islamic society.
“Although the western media frequently suggest that Islamic banking in its present form
is a recent phenomenon, in fact, the basic practices and principles date back to the early part of
the seventh century. (Islamic Finance: A Euromoney Pub., 1997)
It is evident that Islamic finance was practised predominantly in the Muslim world
throughout the Middle Ages, fostering trade and business activities. In Spain and the
Mediterranean and Baltic States, Islamic merchants became indispensable middlemen for
trading activities. It is claimed that European financiers and businessmen later adopted many
concepts, techniques, and instruments of Islamic finance.
The revival of Islamic banking coincided with the worldwide celebration of the advent of
the 15th Century of Islamic calendar (Hijra) in 1976. At the same time, financial resources of
Muslims particularly those of the oil producing countries, received a boost due to
rationalization of the oil prices, which had hitherto been under the control of foreign oil
corporations. These events led Muslims to strive to model their lives in accordance with the
ethics and philosophy of Islam.
Disenchantment with the value neutral capitalist and socialist financial systems led not
only Muslims but also others to look for ethical values in their financial dealings and in the
West some financial organisations have opted for ethical operations.

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 Islam not only prohibits dealing in interest but also in liquor, pork, gambling,
pornography and anything else which the Shartiah (Islamic Law) deems Haram (unlawful).
Islamic banking is an instrument for the development of an Islamic economic order. Some of
the salient features of this order may; be summed up as:
1. While permitting the individual the right to seek his economic well-being. Islam makes
a clear distinction between what is Halal (lawful) and what is Haram (forbidden) in
pursuit of such economic activity. In broad terms, Islam forbids all forms of economic
activity, which are morally or socially injurious.
2. While acknowledging the individual‟s right to ownership of wealth legitimately
acquired, Islam makes it obligatory on the individual to spend his wealth judiciously
and not to hoard it, keep it idle or to squander it.
3. While allowing an individual to retain any surplus wealth, Islam seeks to reduce the
margin of the surplus for the well being of the community as a whole, in particular the
destitute and deprived sections of society by participation in the process of Zakat.
4. While making allowances for ways of human nature and yet not yielding to the
consequences of its worst propensities. Islam seeks to prevent the accumulation of
wealth in a few hands to the detriment of society as a whole, by its laws of inheritance.
5. Viewed as a whole, the economic systems envisaged by Islam aims at social justice
without inhibiting individual enterprise beyond the point where it becomes not only
collectively injurious but also individually self-destructive.
The Islamic finance system employs the concept of participation in the enterprise,
utilizing the funds at risk on a profit-and-loss-sharing basis. This by no means implies that
investments with financial institutions are necessarily speculative. This can be excluded by
careful investment policy, diversification of risk and prudent management by Islamic financial
institutions.
It is possible, that investment in Islamic financial institutions can provide potential profit
in proportion to the risk assumed to satisfy the differei9ng demands of participants in the
contemporary environment and within the guidelines of the Shariah.
The concept of profit-and-loss sharing, as a basis of financial transactions, is a progressive
one as it distinguishes good performance from the bad and the mediocre. The concept,
therefore, encourages better resource management.
Islamic banks are structured to retain a clearly differentiated status between shareholders‟
capital and clients‟ deposits in order to ensure correct profit sharing according to Islamaic
Law.
.
Gold Standard
Michael D Bordo
Professor, Rutgers University

The gold standard was a commitment by participating countries to fix the prices of their
domestic currencies in terms of a specified amount of gold. National money and other forms
of money (bank deposits and notes) were freely converted into gold at the fixed price. England

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adopted a de facto gold standard in 1717 after the master of the mint, Sir Isaac Newton,
overvalued the silver guinea and formally adopted the gold stand in 1819. the United States,
though formally on a bimetallic (gold and silver) standard, switched to gold de facto in 1834
and de jure in 1900. In 1834, the United States fixed the price of gold at $20.67 per ounce,
where it remained until 1933. Other major countries joined the gold standard in the 1870s. The
period from 1880 to 1914 is known as the classical gold standard. During that time the
majority of countries adhered (in varying degrees) to gold. It was also a period of
unprecedented economic growth with relatively free trade in goods, labour and capital.
The gold standard broke down during World War I as major belligerents resorted to
inflationary finance and was briefly reinstated during 1925-1931 as the Gold Exchange
Standard. Under this standard countries could hold gold or dollars or pounds as reserves,
except for the United States and the United Kingdom, which held reserves only in gold. This
version broke down in 1931 following Britain‟s departure from gold in the face of massive
gold and capital outflows. In 1933 President Roosevelt nationalized gold owned by private
citizens and abrogated contract in which payment was specified in gold.
Between 1946 and 1971, countries operated under the Bretton Woods system. Under this
further modification of the gold standard, most countries settled their international balances in
U.S. dollars, but the U.S. government promised to redeem other central banks‟ holding of
dollars for gold at a fixed rate of $35 per ounce. However, persistent U.S. balance of payments
deficits steadily reduced U.S. gold reserves, reducing confidence in the ability of the United
State to redeem its currency in gold. Finally, on August 15, 1971, President Nixon announced
that the United States would no longer redeem currency for gold. This was the final step in
abandoning the gold standard.
Widespread dissatisfaction with high inflation in the late seventies and early eighties
brought renewed interest in the gold standard. Although that interest is not strong today, it
strengthens every time inflation moves much above 6 percent. This makes sense. Whatever
other problems there were with the gold standard, persistent inflation was not one of them.
Between 1880 and 1914, the period when the United States was on the „classical gold
standard‟, inflation averaged only 0.1 percent per year.

How the Gold Standard Worked

The gold standard was a domestic strand, regulating the quantity and growth rate of a
country‟s money supply. Because new production of gold would add only a small fraction to
the accumulated stock, and because the authorities guaranteed free convertibility of gold into
non-gold money, the gold standard assured that the money supply and hence, the price level
would not vary much. But periodic surges in the world‟s gold stock, such as the gold
discoveries in Australia and California around 1850, caused price levels to be very unstable in
the short run.
The gold standard was also an international standard – determining the value of a
country‟s currency in terms of other countries‟ currencies. Because adherents to the standard
maintained a fixed price for gold, rates of exchange between currencies tied to gold were
necessarily fixed. For example, the United States fixed the price of gold at $ 20.67 per ounce;
Britain fixed the price at £3.17s.10.5d per ounce. The exchange rate between dollars and
pounds – the “par exchange rate” – necessarily equalled $4.867 per pound.
Because exchange rates were fixed, the gold standard caused price levels, around the
world to move together. This occurred mainly through an automatic balance-of-payments

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adjustment process called the price-specie-flow mechanism. Here is how the mechanism
worked. Suppose, a technological innovation brought about faster real economic growth in the
United States. With the supply of money (gold) essentially fixed in the short run, this caused
U.S. prices to fail. Prices of U.S. exports then fell relative to the prices of imports. This caused
the British to demand more U.S. exports and Americans to demand fewer imports. A U.S.
balance-of-payments surplus was created, causing gold (specie) to flow from the United
Kingdom to the United States. The gold inflow increased the U.S. money supply, reversing the
initial fall in prices. In the United Kingdom the gold outflow reduced the money supply and,
hence, lowered the price level. The net result was balanced prices among countries.
The fixed exchange rate also caused both monetary and non-monetary (real) shocks to be
transmitted via flows of gold and capital between countries. Therefore, a shock in one country
affected the domestic money supply, expenditure, price level, and real income in another
country.
An example of a monetary shock was the California gold discovery in 1848. The newly
produced gold increased the U.S. money supply, which then raised governments rarely
debased their currencies or otherwise manipulated the gold standard to support domestic
economic activity. Suspension of convertibility in England (1797–1821, 1914–1925) and the
United State (1862–1879) did occur in wartime emergencies. But as promised, convertibility
at the original parity; was resumed after the emergency passed. These resumptions fortified
the credibility of the gold standard rules.

Performance of the Gold Standard

A mentioned, the great virtue of the gold standard was that it assured long-term price
stability. Compare the aforementioned average annual inflation rate of 0.1 percent between
1880 and 1914 with the average of 4.2 percent between 1946 and 1990. (The reason for
excluding the period from 1914 to 1946 is that, it was neither a period of the classical gold
standard nor a period during which governments understood how to manage monetary policy).
But because economies under the gold standards were too vulnerable to real and monetary
shocks, prices were highly unstable in the short run. A measure of short-term price instability
is the coefficient of variation, which is the ratio of the standard deviation of annual percentage
changes in the price level to the average annual percentage change. The higher the coefficient
of variation the greater the short term instability. For the United States between 1879 and
1913, the coefficient was 17.0, which is quite high. Between 1946 and 1990 it was only 0.8.
Moreover, because the gold standard gives government very little discretion to use
monetary policy, economies on the gold stand are less able to avoid or offset either monetary
or real sho0cks. Real output, therefore, is more variable under the gold standard. The
coefficient of variation for real output was 3.5 between 1879 and 1933, and only 1.5 between
1946 and 1990. Not coincidentally, since the government could not have discretion over
monetary policy, unemployme4nt was higher doing the gold standard. It averaged 6.8 percent
in the United States between 1879 and 1913 versus 5.6 percent between 1946 and 1990.
Finally, any consideration of the pros and cons of the gold standard must include a very
large negative; the resource cost of producing gold, Milton Friedman estimated the cost of
maintaining a full gold coin standard for the Unites States in 1960 to be more than 2.5 percent
of GNP. In 1990, this cost would have been $ 137 billion.

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Conclusion
Although the last vestiges of the gold standard disappeared in 1971, its appeal remains on
domestic expenditures, nominal income, and ultimately, the price level. The rise in the
domestic price level made U.S. exports more expensive, causing a deficit in the U.S. balance
of payments. For America‟s trading partners the same forces necessarily produced a balance
of trade surplus. The U.S. trade deficit was financed by a gold (specie) outflow to its trading
partners, reducing the monetary gold stock in the United States. In the trading partners the
money supply increased, raising domestic expenditures, normal incomes and ultimately, the
price level. Depending on the relative share of the U.S. monetary gold stock in the world total
would prices and income rose. Although the initial effect of the gold discovery was to increase
real output (because wages and prices did not immediately increase), eventually the full effect
was on the price level alone.
For The gold standard to work fully, central banks, where they existed, were supposed to
play by the “rules of the game”. In other words, they were supposed to raise their discount
rates – the interest rate at which; the central bank lends money to member banks – to speed a
gold inflow, and lower their discount rates to facilitate a gold outflow. Thus, if a country was
running a balance of payments deficit, the rules of the game required it to allow a gold outflow
until the ration of its price level to that of its principal trading partners was restored to the par
exchange rate.
The exemplar of central bank behaviour was the Bank of England, which played by the
rules over much of the period between 1870 and 1914.Whenever Great Britain faced a balance
of payments deficit and the Bank of England saw its gold reserves declining, it raised its
“bank rate” (discount rate). By causing other interest rates in the United Kingdom to rise as
well, the rise in the bank rate was supposed to cause holdings of inventories to decrease and
other investment expenditures to decease. These reductions would then cause a reduction in
overall domestic spending and a fall in the price level. At the same time, the rise in the bank
rate would stem any short-term capital outflow and attract short-term funds from abroad.
Most other countries on the gold standard – notably France and Belgium – did not,
however, follow the rules of the game. They never allowed interest rates to raise enough to
decrease the domestic pride level. Also, mainly countries frequently broke the rules by
“sterilization” – shielding the domestic money supply from external disequilibrium by buying
or selling domestic securities. If for example, France‟s central bank wished to prevent an
inflow of gold from increasing its money supply, it would sell securities for gold, thus
reducing the amount of gold circulating.
Yet the central bankers‟ breaches of the rules must be put in perspective. Although
exchange rates in principal countries frequently deviated from par, is still strong. Those who
oppose giving discretionary powers to the central bank are attracted by the simplicity of its
basic rule. Others view it as an effective anchor for the world price level. Still others look
back longingly to the fixity of exchange rates. However, despite its appeal, many of the
conditions, which made the gold standard so successful, vanished in 1914. In particular, the
importance that governments attach to full employment means that they are unlikely to make
maintaining the fold standard link and its corollary, long run price stability, the primary goal
of economic policy.

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Further Readings

Bordo, Michael D. The classical Gold Standard – some lessons for today. Federal Reserve Bank of
St.Louis Review. 63, 5, May 1961. 2-17
Bordo, Michael D. Financial crisis, banking crisis, stock market crashes and the money supply: some
international evidence.1870-1933 in Financial crisis and the world banking system ed by Forrest
Capie & Geoffrey E Wood. 1986.
Bordo, Michael D. & Schwartz, A.J. eds. A retrospective on the classical gold standard 1821- 1901,
Especially “The Gold Standard and the Bank of England in the crisis of 1847‟ by R. Dornbusch
and J. Frenkel. 1984.
Bordo, Michael D. & Schwartz, A.J. Transmission of real and monetary disturbances under fixed and
floating rates. Cato Journal 8, 2 Fall 1988. 451-72
Ford, A. The Gold Standard 1880-1914: Britain and Argentina, 1962
Officer, L. The Efficiency of the Dollar-Sterling Gold Standard, 1890-1906. Journal of Political
Economy 94, 1986. 1038-73

Notes of Arthashastra, Chanakya Kautilya - Visnugupta

Arthashastra was written by Chanakya, minister of Chandra Gupta Maurya the first king
of the Maurya Empire in 4th century. It appears that Chandra Gupta was not given the
kingship by his relatives depriving him of his rights. He planned to recover his kingdom and
went looking for partners when he discovered a Brahmin killing ants by pouring acid in every
ant hole possible. He was surprised at the tenacity of the man and took him under his keep,
discovered that he was a learned Brahmin, very qualified and able and appointed him as his
adviser from which post he became the Chief Minister. He authored Arthashastra, the science
of Wealth, which became a treatise of kingship and management of wealth/economics. He was
so knowledgeable that his Arthashastra covered all avenues of contributing to wealth creation,
the right and duties of the king and his resources, his statecraft and covered the entire strata of
economic decisions making. Arthashastra was lost to the mankind till it was rediscovered in
South India and translated by Prof. Shastri in 1905.
Arthashastra is broken down in 15 books which cover the duty of the king, identification
of the Incomes, court craft, choice of minister, dealing with people and subjects, handling of
quarrels, spies and their problem, “silent war”, mineralogy, energy, forests, animals,
transportation, tax, law and order, trade and commerce, etc., and strategy by a localise of time
management in full detail. It also suggests the possible use of spies and giving information. It
has also listed the quality of a Rajarshi as one who has (1) got self-control having conquered
the inimical temptation of the senses, (2) cultivated the intellect by association with the elders,
(3) keeps his eyes open through spies, (4) ever eager to promote security and welfare of the
people, (5) Ensures the observation by the people of their dharma by authority and example,
(6) seeks to improve his own discipline by continuing his leaving in all branches of
knowledge, and (7) endures himself is his people by enrouting them and dump good to them.
Such a disciplined king must (1) keep away from another wife (2) not covet another‟s property
(3) Practise ahimsa (non-violence towards all living beings, (4) avoid day dreaming,
capriciousness, falsehood and extravagance and, 5) avoid association with harmful persons
and indulging in (harmful) actions.
He then defines about duties of The Kings, energetic, leadership, compassion helping the
needy and punishing the guilty, be astute and always conscious of his responsibility. He must

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properly manage the economy and avoid national distress, which causes lack of power and
unpeels future growth, must know how to tackle internal strife – divide and Rule – find source
of trouble and eliminate/isolate/suppress. He should look after environment, look after
minority, wild life, defence and be ever ready for emergency and be cool against crisis. If a
King is brave and hardworking, so are the subjects. If the king is lazy and without drive so
will be the subjects. He should be strong invited but not be solely concerned with preservation
of King‟s power as preached by Machiavelli‟s Prince. The ruler is expected to benefit and
protect his citizens specially the peasants who are responsible for the ultimate prosperity of the
kingdom. He should therefore, advocate “land reform” and look towards helping the
oppressed. He should, however, practice largesse only to the extent that judiciousness and not
empty his treasury. He should look after the slaves as also secret contrivances.

Notes on Niccolos Macihivelli’s “The Prince”

Niccole Machiavelli was born in the start of mid fifteenth century in Italy, which was
then going through a period of great political turmoil. He was well educated and came from an
educated family with expertise in law and governance and adept in Latin and Italian classics.
He took up administrative duties and served as an adviser and principal officer to one of the
prince politics, which was founded by the medicos. He was well considerate but fell out with
this leader and out of sheer frustration wrote his “The Prince” as an advisory to his employer,
the prince to sit up certain rules of statecraft. This publication saw light after his death and was
accepted as a classic treatise of realistic politics – “Real politics”.
He indicated there in what the Prince must do and learn to protect his state to him,
morality had to be replayed at times by deceit and of fear and love of the subjects had to be
chosen and won, so far so good; if not then fear has to win overt love for the sake of the state.
He felt “and deserves the means rather is justified“ or end justifying the means and that “A
prince, a nobility and power of people, these three powers, usually checks and balances will
watch and act for the benefit of the people.” To him state was supreme and any action taken to
preserve the state was justified. He recommended deceits, knowing adapting false means and
subtle behaviour for preserving the state. Diplomacy in the subtlest form was advocated. He
did not support mercenaries rather depending on trusted people whom he could control
manipulate for the same of the state and advise the Prince to so remember. He therefore stated
that the Prince should be feared and hated if he could not be loved. If he is aware of any
resistance, it is to be crushed mercilessly. He was a patriot to the core and was hurt by the
disintegration of Italian polity. The prince is therefore identified as a book of tyranny a guide
to morality void techniques of acquiring and maintaining political power and political fortune.
It has to be so recognized. Compared to Chanakya‟s Arthashastra, its extent are limited but
more focused.

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 Chapter VII

Education, Science and Technology

It must be recognized that the state of education, science and technology has had a
positive impact on civilization, its growth process and its emerging shape. An attempt has
been made in this chapter to trace this development and its importance.

I. History of Education
Once again, it has to be admitted that Indian civilization accorded importance to
Education from the very outset and set up “Gurukuls”, the system of residence at the “Guru‟s”
(teachers) residence by the student during his/her period of education, the first phase of
“chatur Ashrama”. Following the stage wise principle, “Bramhacharya” was to be followed in
strict discipline at Guru‟s home irrespective of how affluent or powerful may be his family.
The only defect if any of the system was the caste system which did not permit Sudra‟s to take
part in the education process by the Brahmins who corrupted this system and were responsible
for Buddha‟s rising and disintegration of Brahmanic culture.
The teachers were widely respected Rishis or wise men who had earned the respect of the
society who led a normal and frugal life and set standards of behaviour for the society. This
grounding not only imparted education but assisted in building up character in each student
and made him fit for the next stage of life “Garhasta” and then “Banaprastha” and then
Sanyas or renunciation. Bramhacharya was a part of the growing up.
It has also to be noted that Bramhanas, Kshatriyas and Vaishayas had separate schooling
system. Whereas Brahmins were educated in philosophy, rituals and teaching and preaching
tasks, the Kshatriyas were specifically educated in the art and science of waging war, in
governance, in administration and maintenance of law and order in the community. It was also
a fact that Brahmins were engaged as advisers to the King or leader for judicious and unbiased
execution. The Vaishayas had their own training scheme in trading conducted by “Sreni”
which was their apex organization as also is real life operation or apprenticeship as has been
identified later. Ramanath (nicknamed Buno) was a case in point who trained and created true
Bramhanas without any demand on society.
In the Mesopotamian civilization, education was entirely a private affair and the tutors for
affluent families were usually slaves who were educated and were engaged to teach the
children of the family who sought and desired to be educated. It was neither state policy to
spread education nor was character building an essential part of education. While Greeks
institutionalised education in Europe by the establishment of “Academies”, it was still an
optimal and not an essential part of growing up and this continued with the Roman Empire
with literate slaves being used as educators with hardly any stress on character-building.
While the education system fell in disrepute in India with the fall of Hindu kingdom and
Muslim invasion, the education process in the Christian world and in the Muslim world
developed because of the insistence of the Christian priesthood and also of the Muslim
Maulvis of being educated so that they could preach and spread their respective faiths.
Education became primarily a religion-led movement and was confined to the clergy. It was
not all-inclusive. The breakthrough occurred during the European Renaissance in the 14th
century when a series of Universities were established, first in Bologna in Italy followed by

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other city-states. As many as 50 universities were set up, prior to this development it was
either rich persons or clergy who were interested and that too against a great deal of
opposition, witness Copernicus and Galileo‟s fate. But Renaissance changed all that and
education spread all over Europe with the blossoming of publications helped by the
introduction of printing technology from China which helped in the propagation and
assimilation of growing knowledge. Even during this period, the stress was on higher
education for selected clientele and not for the mass, though Bible had wide spread
circulation.
It was in Great Britain that education spread out to the general mass and that too by
legislation. Slavery was banned and state funded education for the lower class was initiated
and regular schools apart from Sunday schools were established and operated. State played a
major role. From basic education in arts, education in Science developed and this led to the
fall in the degree of control of the clergy over education as had happened in Egypt where the
control over education by the Amon priests was also depleted. Besides, the strong grip of
Roman Catholicism was removed by the clergy in England and the rise of Protestantism, and
education became wide-spread with the opening of the public schools with reduced religious
bias, wide circulation of books and printed material. The latter was yet another factor for the
growth and spread of education in Europe and the Americas. China continued with its own
indigenous form of education as enunciated by Confucius and a continuing stable framework
of administrators. It had three or four different languages but Han, the central tribe, the most
prosperous and well educated, provided the administration cadre. In Japan education was
restricted to the warring faction, the Samurais and education was restricted till Christianity
reached the shore and education became wide spread. It is to be noted that France, China and
later England gave widespread support to state sponsored education while India lost its
excellence and the ancient glory of Vedic education was lost. With the ingress of Muslim
conquerors further so till it was rediscovered by the conquering British and is now regaining
its lost position.
The European education system was extended to America and has continued to expand
through state support and public munificience. It has in recent days retained this leadership
position and is the leader in educational innovation and openness. In fact, the management
education started and developed in the America, Harvard, Massachusetts Institute of
Technology, Pennsylvania, and Stanford, are leading institutes, which other nations like
France, Switzerland and India have followed with merit.
Yet another innovation has been the introduction of “Open University” system that
was implemented in UK and the distant learning system, which offered students reaching, and
learning inputs at their work place or home through the postal agency as also thru Internet and
this has revolutionised instruction and educational devices. Civilization has realised that
education is a vital element in its growth and refinement and this has either inhibited or
offered break through.

Notes on Education
The genesis of Indian system of education has been commented upon stressing in the
“Gurukul” system of ancient India. It also been stressed therein that the “Gurukul” system
placed equal stress on the intellectual aspect as also the moral aspects of education
emphasising the “character building” past aspect with the “three Rs”. This was entirely unique

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in the Indian social structure but fell into disrepute with time. China also has a record of
stressing education in the early era as also character building through Confucius‟s teachings.
History records that stress on education was late to development in Europe and was first
emphasised in Greece when Lyceum, a garden place where Aristotle held his famous
discourses, became the first example of an organised school though it is not clear whether the
school admitted youngsters. In India and in China under Confucianism, the stress was laid on
bringing up the young as also the adults. The education of the young in Europe was left to the
household teachers, appointed by the household who were usually educated serfs or captured
slaves and were in employment. However both in China and in Greece and Rome, it was a
selected clientele and in India as was as permitted by the caste system.
The emphasis on children‟s education first surfaced in UK when an enactment was passed
in the eighteenth century. Prior to that the clergy were interested in education specially the
moral phase which was highly biased by Christian dogma but it somewhat impacted on
character building. Universal education was later introduced in Europe in the late nineteenth
and twentieth centuries though humanities were taught around 10th and 11th centuries when
several universities first at Bologna, Padua, Rome, Paris and at Oxford and Cambridge were
established. Character building as a specified term was, however, not prominently identified
till late 19th century through the Sunday school system. An extract follows.
“In its widest sense, education begins in birth and continues so long as the mind is
capable of receiving impressions. The most primitive human groups have always
prepared the young for the group would soon have vanished; and some sort of
instruction of the young is common among other mammals and birds. In the more
restricted sense of imparting knowledge was dependent on literacy, education has
become almost worldwide.
Formal education in the present-day scene is of European origin, though China and
India sponsored Gurukul much earlier as indicated above can boast of an allied form of
instruction dating from an imperial decree of 165 BC which set up open competitive
examinations for the recruitment of members of the Civil Service. The earliest known
European educational systems are those of ancient Greece – in Sparta, devoted
particularly to development of military virtues, in Athens to the good of the republic in
a wider sense, but both, as in China, accorded only to the privileged few.
Rome took over much of the Greek notion of education, as of so many other aspects
of civilized life, and spread it over Western Europe. With the barbarian invasions and
the extinction of the Roman Empire, education vanished from Europe, though monks
preserved both learning and the Latin tongue. Charlemagne‟s monastic schools which
taught the „seven liberal arts‟ – grammar, logic, rhetoric, arithmetic, geometry, music,
and astronomy – produced the „Schoolmen‟ and the scholastic Movement, which in the
11th to 13th centuries, led to the foundation of the universities of Paris, Bologna, Padua,
Oxford, Cambridge. The capture of Constantinople by the Turks in 1453 sent into exile
across Europe the Christian scholars who had congregated there, to revive European
interest in learning. This, however, enthused the Saracans to activate this movement.
Until the 19th century in England, no attempt was made to spread literacy to lower
levels. Although the Factory Act of 1802 required owners of the newly rising factories
to arrange for children to be taught reading, writing, and arithmetic during the first four
years of their apprenticeship, the clause was not universally observed, but it embodied
a new principle. The British and Foreign Schools Society; (1808) and the National

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 Society for Promoting the education of the poor in the principles of the Established
Church (1811) set up schools in which the „three Rs‟ as well as religious knowledge
were taught. In 1862, government grants became available for the first time for schools
attended by children up to 12. The Elementary Education Act of 1870 (Forster‟s Act)
established district school boards all over the country whose duty was to provide
accommodation for the elementary education of all children not otherwise receiving
education. Once the principle of elementary education, for all was accepted, the idea of
higher education for everyone capable of benefiting from it gradually asserted itself.
By the mid 20th century, education was free and compulsory in most countries of the
world from about 6 to 16, except where the terrain was exceptionally difficult or
resources were insufficient to support the burden. Nevertheless, inadequate teaching
meant that literacy was by no means universal even in countries with long-established
education systems, and attempts to promote it in the Arab world and in China by the
use of the Latin alphabet encountered opposition. Besides the vested interest in the
existing scripts of those already in uses, there were advantages inherent in them, e.g.
the non-phonetic script can be understood throughout China, whereas the spoken
dialects are not mutually intelligible.
Interestingly stress on science and technology, especially in secondary and higher
education, also led to an impoverishment of education as regards the „liberal arts‟, very
markedly so in USSR and USA, though less so in the UK. So by the 1970s there was a
dearth of teachers and led to a student revolt. The new tendency was towards socio-
political subjects, the achievements in certain areas of science and technology having
prompted disillusion, and the earlier traditional studies being associated with what was
considered an outworn system. Previously accepted lines of educational organization
were also broken down, e.g. the British scheme for „comprehensive‟ schools and the
advocacy in both Britain and USA of specially favourable treatment for the „under-
privileged‟. A parallel movement in China, prompted by similar egalitarian principles,
was the advocacy of political acceptability rather than intellectual achievement as the
criterion of selection for higher education.
In the UK the Department of Education and Science (1964), headed by a Cabinet
Minister, is responsible for civil science and the universities throughout Great Britain
but primary and secondary education in Wales is the responsibility of the Welsh
Education Office. There is a Scottish education department under the Secretary of
State for Scotland and until direct rule (1972) North Ireland had its own Ministry of
Education.
In the USA, education is in the main the responsibility of the states, but the
Department of Health, Education and Welfare (1953) headed by a Secretary who is a
member of the President‟s Cabinet, includes a Commissioner of education responsible
for federal aspects “.

Comments on Educational System

System of educational formats prevalent in the ancient world has been commented upon.
With the establishment of academies under eminent teachers in Greek, Socrates, Plato and
Aristotle in eastern Europe with the operation of Gurukuls from ancient times in India where
specific skills teachers opened skilled based schools for teaching of different “Varna”, like
philosophy and rituals for the Brahmans, the art of war for the Khatriyas, etc., education was

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considered an essential part of development even before the birth of Christ. Even the Gurus
taught “Rajtanta” state governance to the member of the Kings‟ family and retainers. The
Vaishyas were taught the art of trade and commerce by practicing with the clan as also the
skilled workers in their own family enterprises. The same system operated in China where
eminent teachers spread education. With the spread of religion, education became an essential
part of religious practices and both Hinduism and Buddhism set up seminaries for this
purpose. Witness the establishment of the famous University of Taxilla (Takshashila) and
Nalanda universities. In China the socio-centric Confuscism taught parent worship and correct
behaviour, decorum and social ethics, which in Japan the emphasis, was on skills and quality
of working excellence.
In Europe, the large universities appeared on the scene much later and in UK as also in
Europe Universities set up with state or without state sponsorship in Cambridge in 12th
century and Oxford in 1386. These universities were not sponsored by religious trusts but
were state or public sponsored and operate even today. These were operated by a Vice
Chancellor and were organisationally managed by a senate and also a syndicate. These were
curriculum-centric and followed various forms of management in its strive to retain
independence and excellence. This attempt led to the founding of many universities as need
arose and the same pattern was followed in India under the British rule, India also set up
universities in Bombay, Calcutta and Madras to initiate higher education and also act as the
examination body for matriculation, under graduate, graduate and post-graduate (both
teaching and examination) activities. These were state sponsored though private munificence
helped. During freedom struggle, freedom movement established National Council of
Education as a national university claiming independent status, which was converted to
Jadavpur University presently with government recognition and sponsorship.
To give more freedom of work, several other forms were also tried over like the Institute
of Science in Bangalore sponsored by the Tata Group; the Indian Statistical Institute founded
by Prof. P. C. Mahalanobis working under the Planning Commission and was autonomous
carrying out both teaching and research. This same experiment was further extended by
Humayun Kabir, Secretary Education Department under Maulana Abul Kalam Azad, the then
Education Minister under Pandit Jawaharlal Nehru in establishing a chain of Institutions of
Excellence under the form of Indian Institute of Technology and later Indian Institute of
Management and other similar institutes which were teacher-centric and not curriculum-
centric with teaching and research responsibility as also that of assessment reposed on the
teacher who is given a great degree of freedom and responsibility within the framework laid
down by the Senate.
The results are known all over the World with IITian and IIM‟s setting up pace in the
world and raising the stock of Indian students sky-high. In contrast, the American education
system with its drive, independence and teacher excellence supported by adequate
infrastructure has been drawing students from all over the world with the old established
universities updating their systems. Japanese universities and Chinese Universities have also
reoriented their education systems.
It should be noted that French schooling system as also the Japanese have adopted and the
Chinese school partially, the „elite‟ school system which through intense competitive
exanimation have selected the top order students and train them through elite schools to be the
leader of tomorrow Germany follows a strict integration of practical work with educational
time to build up excellent skills and this process starts from school education and its

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importance in society has been fully recognised. Illiteracy is being wiped out through
determined planning in most underdeveloped countries with the realisation that education is
the essential requirement for growth and development, witness the excellence of France and
Japan in all areas, be it arts, science or technology currently. USA has been the leader in
spreading education, others have, especially China, have benefited because China had already
adopted meticulously a Confucian edict.

Language and Written Script

There has been a verbal language, which the social scientists have grouped into various
regional areas. However, by all counts the language “Sanskrit” which literally means
“Refined” is acknowledged as the most scientific language ever originated and even today is
studied in India as a classic as with Latin in Europe. The science of producing the proper
sound in the oral cavity by proper use of the various parts have been understood and
standardized for the proper production of the right sound with Panning the first Grammarian
of the world producing his seminal book “Astadhayai” (eight chapters) written supposedly in
the 4th century BC. He has set the standard of all linguistic studies in this area. Debate over
who discovered Sanskrit is useless as it should be treated as an advance in the development of
mankind though by all count it was a crowning achievement for the mankind India is
recognized as the birth place of Sanskrit which has influenced the European languages as
indicated by the historian Will Durant. The concept of Aryan contribution seems to be
contrived to establish the superiority of the Nordic over the Brunet race i.e. Dravidians.
However, they might well have contributed.
The apparent difference between the Tamil families of languages with the refined
language Sanskrit has also been questioned and similarity between the two families has been
attempted. The argument that North Indians are different from the South has been supported
by the genetics studies. This is accepted because North Dravidians inter-mixed with
Europeans to a much greater degree and South Dravidians remained in isolation. But
culturally the North and the South Dravidians are from the same stock as proved by the fact
that it is in the south that intense study of Vedic literature and culture is still being carried on
under special teachers who specialize in Vedic Sanskrit along with their Dravidian mother
tongue. The development of Ganthi script to bridge the gap between Tamil and Sanskrit is a
case in point.
Almost all the languages in India have arisen from Sanskrit excepting those originating
from Persian, which was the state language during the Muslim dominance; as also the
prevalen English that was propagated by the British rulers. Of course Tamil has held to its
position with rich literature.
The same is the picture all over the world with the parent/mother language giving in to
the administrative or the official language. Effort to evolve a common language like
“Esperanto” has not made much of headway though efforts continue. Study of language and
linguistics have, however, been of great help in identifying “loan words” and thus establishing
cultural exchanges and cultural intermixing that is our present world today. This process will
further increase with Globalisation under economic and other social pressures.
Though the scripts are not as varied as the languages there are many scripts, which
were used to record messages, when verbal communication was not possible or when records
had to be maintained for the posterity. The first attempt was pictorial; the situation was
depicted as a line picture. This was later substantiated by indicating “signs” for sounds, which

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ultimately led to the development of alphabet writing and an admixture of both. Cuneiform
writing (wedge writing) developed in Sumaria was an attempt; Hieroglyphic script extensively
used in Egypt, which was deciphered by the discovery of the Rosetta stone, was not totally
alphabetical which Sanskrit script was. The Indus Valley Civilization script has not been
deciphered as yet as also other pictorial scripts. China and Japan along with Korea use a
combination of pictorial and sound sign to express sound to convey ideas. Presently, the world
is practically using the Roman Alphabetical script, which is essentially based on a simplified
Sanskrit, approach though missing out in some of the sounds and uses “diacritical” marks to
indicate other sounds. It also developed Grauthi script to fill in the gaps.
Even in written languages, there is a differentiation between state language and
common language. In India it was Sanskrit and Pali or Prakrut was used in the initial period;
again during the Muslim period it was Persian or Farsi and Urdu and during the British period
it was English and Hindi. During the early days, Khoroshti, Bramhi, Grauthiscripts evolved
during the Sanskrit era along Farsi with Persian though the common attempt was alphabet
script as against pictorial ones.

Evolution of Fine Arts, Literature, Music, Architecture and Entertainment

Human beings‟ creative and innovative attributes have impacted, both positively and
negatively, on the growth of civilization. Whereas other forms of living creatures have shown
lower levels of creativity; birds in building their nests; bees in creating honeycombs; spider in
weaving their webs etc. Human have been aggressive and inquisitive enough to radically
influence the growth trends of civilisation and the nature itself as also the environment as
given to have by the Power to be. Gifted as he is to be able to think in abstract terms, conceive
about super natural powers and search for the God-head, he over time technically equipped
himself to use and modify the natural resources surrounding him and overcome obstacles to
transform as it were the Eaith, the human habitat. His latent skills have also created new areas
of development both in appreciation and in the growth of Arts and Architecture, Literature and
means of Entertainment alongside the march of technology. In fact, it has improved the quality
of life, not that negative impact was absent as will be commented on
The Saga has unfolded the growth of civilization, the political scenario, the economic
picture, the educational background and the broadening of the civilization in general. It has
also indicated that the human race learnt from the natural surroundings; and listened to the
songs of the birds, the whisper of the winds, the soft sounds of the rain and flow of water, the
wonder of sunrise and suset and tried to develop its mode of communication using his vocal
cords. It has been said that the attempt succeeded in crating hymens or prayers to the
Godhead. In fact, a replication of the birdcalls as hymns existed in pre-Vedic era compositions
may be the earliest.
Man tried to praise God and copied, as was to be expected, the birdcalls before it learnt to
speak in articulate forms. Evidence has been focused in pre-Vedic culture in South India. In
the pre-Vedic period there was a flourishing civilization, though in its early development state
in India, especially in South, in Sumer; in Mesopotamia; and in Levant as also in a
rudimentary stages in Egypt. Sumerians must be credited for the development of the first form
of workable written script based on which the first attempt to proactive literature, in
civilization, was made. This can be identified as Epic of Gilgamesh written in Sumerican
predating 3000 BC. The Egyptian Book of the Dead written in the Papyrus of Ani dated

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approximately 200 BC and was interpreted only after the script was deciphered with the
discovery of the Rosette stone in the Napoleonic era.
In China thousands of logs remain un-deciphered but were not considered as literature as
also the Babylonian scripts. In India the earliest script recognised in the Indus Valley script,
which still remains un-deciphered though several attempts are on. However, it is to be noted
that in India, importance was attached to rote learning and memorising of hymns/ballads and
not writing in script. Fable says that even the entire Vedas were memorised and the first
editing was done by Veda Vyas during the legendary period of Mahabharata and the entire
writing was done by Shri Ganesha himself in Sanskrit listening to the discourse of Vuas..
Even the name Sanskrit is significant. It means „refined‟. This infers that there was
something previous to be improved on. Sanskrit as a written script has a remarkable similarly
with then existing European cum Germanic language as also the original Roman language.
There was an inquisitive search for this similarity. It may well be surmised that the mysterious
“Aryan” race which flourished in the backyard of France, as noted by the famous French
Anthropologist had formulated this original script and language and spread it over Europe
including Russia from which evolved the Roman script. The structure of Sanskrit was an
improved version and hence the similarity and hence the name.
This race with their knowledge of archery and chariots driven by captured and
domesticated horses, used to sweep down the planes to Mesopotamia waging wars and
spreading their culture and knowledge. One stream crossing this area must have entered India
through the central-western region and found a flourishing community of Dravidian origin in
the Indus valley. They settled down in that area did not withdraw to elsewhere and jointly
developed the Indus Valley culture, which developed the heights of civilization reached
astonishing heights of philosophy with the compilation of Veda. Thus commenced, as Prof A.
L. Basam terms it The Wonder that was India. Exchange and envelopment of culture was a
common feature during this period. Dravidian culture impacted on the Sumerian culture.
“Loan” words such as “Elam” the homeland and equivalents like the „Apas‟ etc. indicate this
possibility as also various artefacts and stone idols that later excavated and preserved.
Whatever it may be, written convention was developed later than the „rote‟ convention.
Thus the teaching of Vedas‟ in South India even today supports contention.
Literature during this period represented the story of the kings and their bravery and
parables like the fables, Betal Pancha Binshati – the twenty-five episode of Betal, the
Hitopadeshaboth in sanskrit and in India, Aesop‟s Fables and the scripting of the Old
Testament, which was written on Parchment of various surfaces and special palm leaves as in
India. The Legends of Ramayana and Mahabharata were recited and were not available in
book-form, which came into existence only after the art of making paper, and printing was
discovered in China at a much later date.
This turbulent period of history was followed by the growth of Greek civilization and then
by Roman civilisation with consequent development of fine arts, architecture and literature,
Music, and Sports. Greek literature contributed The Iliad and the Odyssey by Homer. There
were epic poems and Sappho, who contributed lyric poetry as a genre. Sophocles and
Euripides who introduced dialogue, drama, followed these works and satire forms, thus
expanding literature.
This phase as indicated was followed by Roman period and Latin literature. Various
authors contributed to the growth like Virgil Aeneid followed by Tacitus‟s Anals and
Germania and expanding the domain of literature. Ovid‟s Metamorphoses was yet another

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example but compared to the Greek contribution was but a secondary effort, through satire
and religious writings were strengthened.
Indian epics like Ramayana and Mahabharata, which have been referred to earlier, can be
identify as classical antiquity along with Vedas and the Brahmans. The Hebrew Tanakh and
the writing of Lao Tse and Tas te Chung of China can also be grouped after the classics/ The
writing of Sun Tzu, The Art of War, a classic still relevant, followed and represents the
antiquely stage which have to be dated after the Roman period but still can be treated as
before Christ. B.C. After the Roman literature, the Sanskrit literature developed in India with
Kalidasha and Bhababhuti creating masterpieces like Meghadutam and Avigyana Sakuntalam,
the later based on Mahabharata epic this was followed by the influence of Buddhism practiced
and which produced the Jataka‟s series of work of merit.
After the Roman period, literature developed in Europe in different countries with United
Kingdom taking the lead and France and Germany following very closely. The English
literature during the Elizabethan age reached great heights with Shakespeare writing his
famous plays, which even today are considered as masterpieces. Milton‟s Paradise Lost
followed by Wordsworth, Shelley and many other poets and novelists like Charles Dickens
and others who opened up a romantic school as also a social history approach. Germany and
France also contributed and European literature reached great heights and expanded their
coverage by manifold.
Indian literature suffered after the Maurya and Gupta period but like the Latin literature
retained its Sanskrit format. This was unlike the European literature, which developed local
area language and improved in quality and spread out after paper and printing was developed.
Bible was the first book, which was very widely circulated.
Chinese civilization in the ancient times created some literature but these have been lost
in antiquity excepting those referred to above.
After the fall of Rome, the growth of Islamic literature flourished using Persian as the
language. The basic literature grew around “The Thousand and One Nights” of Arabian tales
which has been preserved till late with many supplements and additions /alterations like the
story of Aladdin etc.
This phase was followed by the growth in writing in regional languages abandoning Latin
like Canterbury Tales in England written by Chaucer. The Renaissance also opened the
floodgate of literacy and artistic flowering helped the growth of regional language and
regional compilation. Besides the economic affluence the lack of warfare opened up the
creativity of the men who mattered with the sponsorship of the wealthy. In fact, the
development in arts science and medicine occurred beyond the boundaries of the Church,
which so far had been the driver of all educational and religious activities. It is not the purpose
of this paper to list the notable developments and the books or the authors. This is well known.
Powered with the growth of large publishing houses, the book trade grew again led by the
propagation of the Bible. The introduction of Nobel Prize for literature indicates the social
support towards the growth of literature and its appreciation. The production has been
enormous and the extant and the quality have to be acknowledged. It has been phenomenal
progress
Alongside the development of literature, music grew parallely, depending upon the
culture and the need by the society, which it was meant to serve. Starting from the folk music
for sheer entertainment, it took on the form of a religious fervour, odes and devotional songs
in praise of Godhead. And in this development, the western and eastern religion and

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civilizations developed differing approaches; the western was mostly composer-centric and
orchestral whereas the eastern was structured with enough flexibility to the individual artists
and artist-centric. Indian music developed as a highly structured approach divided into various
Raga and Raginis dedicated to different times of the day and seasons leaving enough scope to
the artists to exhibit the skills without crossing the rules. This was highly appreciated and
artists like Tansen and others weaved magic with their individual singing whereas in Europe
the composures like Mozart, Beethoven composed orchestral music, which was and is highly
appreciated. Besides these approaches the folk music and popular music has also recorded
progress and became very well known. In this process of development, the sound production
and recording technology has played a major role to spread around the world the music of
various masters and socialized with positive effects, both developmental and populist variety.
In the field of Architecture, the Greek built large structures but much earlier the
Sumerians, Babylonians and in the Levant area buildings were constructed and were
considered as wonders of the world. There is yet another significant sequence in the
development of architecture. As indicated, there was a significant exchange of ideas in the
early days 5000 – 4000 BC and Dravidian influence on the Mesopotamian population was
appreciable. The lofty building of the Sumerian civilization bears a striking similarity with the
Gopurams of the Dravidian civilization, which exist as the distinct character of the south
Indian temple architecture, and elsewhere. As with music, architecture has its initial drive for
excellence in building the abode for Godheads. Churches were building which set the standard
as also public buildings for exchanging views as in Greek and Roman cultures and for King‟s
palaces later like the Versailles in France which led other nations to follow suit.
It is only lately that office buildings and private owners have sponsored new breakthrough
in architecture as also the development and use of new materials. To start with it was natural
wood, which was partially replaced by natural stone and later by iron, cement and glass, all
newly developed material. Besides architecture was also influenced by the climatic conditions
like temperature, rain, wind and water. Whereas the Igloo of the Eskimos is totally enclosed,
the glass-sheathed buildings of the west allow sunlight and use of sallus “shades” in India and
sun burnt countries to eliminate excess of heat and light. With civilization and the
development, architectural science has grown to meet the need of the society.
So is also the art of painting and printing. There were western school and the eastern
school, which were founded and developed its individual styles. In this phase again, religion
acted as the prime mover – like the Church architecture, painting in church and for stupas
/temples where the prime mover. The oldest paintings are still preserved in Bhimbedka in
western India and the Buddhist paintings at Ajanta still amaze the world. Western world
excelled in Church paintings Leonardo‟s church paintings are wonders of excellence but of
different school and technique, excellent each in his own way, each subscribing its own way
towards progress and new experimentation. It was Italian renaissance, which immensely
contributed to the growth of both painting and sculpture, which astonishes the world. It is to
be noted however that sponsorship was a key issue and it was earlier the church or the wealthy
who provided the funds for the artists or the musicians to create and expand their crafts, as is
seen both in the eastern and in the western cultures and to reach the present state of
excellence.
Entertainment is yet another aspect which reflects the state of civilization. Sport as a
combined effect was recognised as an important part and Greece was the first to give it
acknowledgement in the western world in the form of „Olympics‟. In ancient India evidence

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exists that archery or individual excellence in “Gada Yudda”, fishing with clubs or wrestling
were held but team sport has not been reported on which was an important focus as in western
world. This must have developed, because of culture and practices but it is difficult to explain
and justify. But is indicated in modern times, western world specialises and excels in team
sports, not that individual performances are ignored. Music, Cinematography which was
preceded by theatre or rural yatras, folk songs and folk presentations which have developed
was operas and musicals/dance forms have also offered entertainment forms which have
developed with society and have tried to meet such needs. Old classical dance froms like
Bharatnatyam, Kuchipudi, Odisi and other still prevail in India as Ballet dancing in Europe
specially Russia.
As the society grows, civilizations add various facets as history has indicated. These
features do provide an index of change, improvement or otherwise, as demanded by the
society. This has been a distinguishing feature and will so remain.

II. Evolution of Science and Its Impact on Human Development

Prof. J. D. Bernal, in his seminal book Science in History has presented an admirable
account on which this presentation is based. Starting from the Palaeolithic age when man was
a nomadic creature busy with food gathering and hunting, he developed flint stone implements
by chipping stone to make sharp angles leading to axe with handle, hammer and spear and
finally to bow and arrow strings from thongs and bow drill.
He learned to control fire, used it for cooking, washing his body with warm water and for
safety. He claimed the skin of the killed animal to make skin clothing to cover himself and his
family, he taught himself to make thongs from its entrails and to sew with a needle fishbone
with eye. He learnt to make nets and baskets and skin containers. He lived in small groups and
for hunting large animals he joined other groups. He learnt to sail in small rivers and also
ventured on to seaside in skin canoes.
In Neolithic age, commencing about 6500 – 5500 BC or even earlier he mastered
agriculture and learnt to plough and shifting hoe agriculture. It may be inferred that while the
men hunted the women reared the children and watched how naturally the grain sprouted from
broadcast seeds and learnt the rudiments of agriculture; this lead to pastoral life to a sedentary
one, which changed the entire perspective of his living style. He went in for fertile lands to
cultivate along with his hunting and gradually the nomadic nature was replaced by a settled
life in sheltered huts. He learnt to domesticate animals for food, skin, wool, for back pack and
draft use and graduated to making ploughs and agricultural tools of the crudest variety, hand
mills and do rough carpentry. Spinning and weaving of the crude type may have started on the
villages with indigenous skills. With the rudiments of astronomy, concept of solar
calendar/lunar calendar, he used the knowledge for assisting agriculture. Some concept of
myths, totem, magic and fertility right may have developed as the root of religion. Religion at
this stage arose out of fear and appropriation of powers that be.
In the Copper Age around 5000 BC, man learnt smelting of the metal ores, mastered the
use of natural metals or lodes and developed grinding technique for sharpening of weapons.
Irrigation facilities also grew in India and in Middle East and water lifting devices with canal
and irrigation facilities made their appearance. In fact, water management, the essential part of
human development and the concept of civil engineering principle were in the making.
Besides the essence of investment, foregoing immediate satisfaction by consuming the grains

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produced and storing them as seeds for growing more grains in the future for later satisfaction,
became an accepted practice. Division of labour with women initially toiling over agriculture
and men hunting, skin processing emerged. Men were making roads and the principle of
wheels was mastered both in the pottery making and later in wheeled carriage.
In the early age, sea going wooden ships had been constructed and was in use. Forests
were cleared for agriculture; cities were being build and civilization in the Sumer, Indus
Valley in India and Egypt in Nile delta and in China the river bend were established as also
later in Greece and Rome. The use of copper and iron started, mostly in making weapons and
ploughshare and also in making wagon wheels. Weapons for war like catapult and rams were
constructed and used. Battles were fought; Grid based housing developed in India. Vedic
philosophy had been established in India and Greece was developing its argument logic style
under Socrates, Plato, Aristotle and Phillips. Under Alexander, the Greek war machine had
been perfected. The Indian school of mathematics was developing with the rules framed for
sacrificial pattern in „Sulava Sutra‟ and „Veda‟s geometrical patterns of construction. Besides
Vedic school of mathematics was practised. In Greece, observations were leading to the
growth of the astronomy, which was utilised for navigation and seamanship and in identifying
eclipse and other celestial features. It is to be noted that Egypt had also mastered this skill and
had put it to use. The Greek intellectuals had developed the rudiments of analysis and the
growth of rational science based on observation and this process had started. The science of
medicine had made progress both in India, Egypt and in Greece; the concept of Kingship and
priest–king combination had been established. The Jews had developed their own religion
based on Torah and Old Testament. Also Zorastrians had prevailed with their sacred book
Avesta with the concept of their Sun God. In India, Brahmanism started preaching and
practising the Vedic religion which came to be known as Hinduism, a foreign name, given by
the British as a corruption of the word “Sindhu” meaning the river Indus which had nursed
Indus Valley civilization. Weights and measures as also time intervals had been thought of
and implemented in IVC and indigent living was on its way. It must be noted, however, that
both in Greece, Egypt and in India, the concept of Kingship had grown and that the king and
the state patronage became prime mover of the „thinking‟ phase, which ultimately developed
as the roots of science. The development of alphabetical writing and speech differed in
different regions and civilization. It was a feature of this period leading to the story of the
“Tower of Babel” and its collapse in Babylonia during the opening by the din raised by
multiplicity of spoken language.
It must be recognised that India in the early days was the leader in philosophy, religion,
geometry and mathematics, while Greece excelled in astronomy, atomic conception, physics
and chemistry. As mankind tried to know more about the world in which he lived, its
structure, systems and behaviours, science developed. Of course, trade was very much in
vogue and India was in contact with the Middle East, while Middle East was in contact with
Greece and information was thus exchanged. Thus over a time span, by 400–500 BC, rational
science had been born. This period can be identified as a peak amongst the many troughs and
rises in scientific thought, excelling in Philosophy and Mathematics as also Geometry civil
works and medicine with Egypt excelling in civil engineering and water management to
satisfy the needs arising and Greece excelling in rational thinking. By the end of the BC era
and basic sciences had been established and the world was ready for the next phase of growth.
However, that did not happen. Alexander the Great‟s conquest of the South and East
notwithstanding, the growth slowed down during the Roman Empire and the propagation of

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Christ‟s thoughts which initiated Christianity as a definitive religion and Hinduism and
Buddhism along with Jainism as the earlier basic religions occupied the world thought.
Romans were interested in Government systems urbanization and in warfare. Alexandria,
which was set up and later nurtured by the Ptolemy‟s of Egypt who followed the example of
Alexander‟s munificence to Aristotle, was neglected. Rome got busy with warfare and with
expansion of the Roman Empire all the good work initiated at Alexandria was put in the back
burner and ultimately lost. While the sense of citizenship and law were Rome‟s greatest gift
based on the consensus governance and the concept of senate and magistrates, Science was
neglected. However, “necessity being the mother of invention” slow progress continued. For
example, Hero‟s break-through and basic work of Steam engine was not developed any
further.
However, there had been improvement and innovation in mechanics and leverage, witness
the erection of Pyramids, the gearing of pumps and mining and in metallurgy with steel
making and weaponry refinement of iron making registered considerable progress. The
knowledge of geography also improved as navigation and land travel expanded. Hellenic
influence spread over Egypt, Persia and India, and vice versa but the main occupation in the
end of the B.C. period was as stated, war and expansion of empire. Fight between Rome and
Carthage, between Persia and Greece, between Rome and European powers and even Greece
covered the remarkable achievement of the Indian and Greek intellectuals and pioneering
scientists though fortunately, these were not lost but preserved in Alexandria for the posterity.
With the emergence of Christ and his preaching, a new centre emerged in the form of the
Papal force or the religious organisation which had state backing from Constantine I, the
Roman Emperor. The Roman Empire declined and Aryanism (rational thinking) was
condemned. The University of Greece was closed but that in Persia progressed. Science was
sponsored by the Gupta dynasty in India and Bramha Gupta produced by Aryabhhatta and
Varahamihir and outstanding work in mathematics and astronomy later in algebra, conics and
trigonometry. The decimal system developed in India introducing the concept of Zero. Infinity
and 9 digits were accepted by Mid-Eastern countries and spread to Greece and Rome. Another
special feature during this period was the translation of seminal work from various languages
and their preservation at Alexandria. It has to be noted, however, that the first attempt of such
preservation happened in Babylon, which set up the first library.
With the rise of Muslim power and its support to the Islamic school of science new
scientists like Geber, the legendary founder of Islamic chemistry, emerged by about 700 AD.
By then St. Sophia, the cathedral had been built and silk from China had been introduced in
Europe. China has also mastered block printing and papermaking. The growth of Islam led to
the establishment of Caliphates who established large empires. By 900 – 1000 AD, however,
the Caliphates broke up by inter-dissents and Papal power grew with increased tension
between Pope and the country rulers. Reform of church took place. First crusade was
launched. Windmills were erected to generate wind-based power for pumping water in Persia.
Paper was introduced in Spain from China through the Muslim traders. Windmills in France
and a most important device mariners‟ Compass were developed both in India and China in
1100 AD for navigation. Other mechanical units for measurement such as Saxtone were
designed and used by Islam navigators. Printing was introduced in Europe from China by
1400 AD, Europe, however, went through much turmoil, which arrested scholasticism and
stunted the growth of Science which got restricted to the missionaries and were neglected by
various taboos.

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 This darkness was somewhat lifted by the Italian renaissance in the 14th to 16th century
AD. The only grace was that all developments were well recorded and preserved for the later
scientists to test and study. It should be recalled that science has grown up progressively by
and from contribution form great many dedicated workers and researches, but it must also be
recognised that the environment had to be suitable and sponsorship and support must be
available so that constraints, both socio-economic and political, were reduced if not
eliminated.
With the Italian renaissance as indicated, the discovery of Plato, dethroning of Aristotle
and the practical application of science provided a strong support to the areas of navigation,
mathematics and astronomy, supported by positive return of Humanism in the areas of
Classics and parallel development of Optics, glass having been discovered about 300 years
back; growth in mechanics and hydraulics, chemistry and medicine, physiology and body
sciences, in fact an all-out resurgence of science was initiated. Once again, it can be tied up
with the political situation in Europe, invasions in India and darkness in Middle East. There
was some positive movement in China and United States, Mexico and Peru, which resulted
out of stable Government and generation of surplus and availability of time and resources for
enquiring minds. It must be noted that China was a comparable empire if not larger than the
Roman one, but without any reasonable contact except through trade. The growth of science in
China, which was a well-established nation, was considerable with spread of writing, book
printing and various artefacts available for use.
The great sea expeditions started by Portugal and Spain led to growth of trade and
accumulated wealth, Columbus discovered America in 1492 with revival of Greek
mathematics and astronomy and the noted improvement in the areas of metallurgy, mining and
pumping, and with manufacturing of chemicals, like alcohol, gunpowder, alum, etc., basic
building blocks of chemical industry, there was a resergence. It was during the Islamic
chemistry period that the alchemists started their earnest effort to identify „the Philosopher‟s
stone‟ to make gold from base metal and that spurred the growth of chemistry. The passage of
India was also discovered around. the Horn by Vasco de Gama (1469-1534), about the same
time, 1498, and all the wealth of the new world in USA and the old world of Asia were now
available for exploitation by the European nations. The maritime movement powered by Spain
and Portugal grabbed this opportunity to be followed closely by Great Britain and other
countries in Europe. Wealth flowed in from these sources which was profitably utilised in
funding research and growth of science, because the need for a stable yet cheap source of
power was being increasingly recognised to meet growing need for increasing production of
goods to be shipped out. Manual labour was the primary source of factory power though
water/wind power had been tried out. The search for new source of power was on. With the
experiment done by Hero in Alexandria on steam propulsion, that could be a possibility. The
scientific group were, however, busy with Astronomy with the building of a telescope by
Galileo Gallili. He watched the sky and gathered data, which enabled Copernicus to propose
that the world was not geocentric, but heliocentric, a theory that was propounded long back by
Aryabhatta in India. Aryabhatta did not have a telescope and a Tycho Brahi a Christian
scholar noted for his observational data to support him with observational data. Galileo fell
foul with the Church authorities that had propagated a geo-centric system and was sentenced
as a heretic. He fled to a safe place and avoided punishment. After much debate and many
years, Copernicus‟s model of solar system was accepted because by no other means the
retrograde motion of the various planets would be explained. This was a major rational

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scientific victory over dogma. Geography was the other area that attracted attention. Maps had
to be produced for navigation. Magellan had circumnavigated the globe and supported the
hypothesis of Earth‟s spherical shape, which changed the tenets, of geography. Navigational
maps were redrawn. Problem of latitude was tackled by Mercado‟s projection. In 1600,
Kepler‟s planetary system was proposed and accepted. Algebra had a new lease of life.
Magnetic phenomenon was studied in detail. Naperian logarithm was worked out. About a
hundred years back, in Leonardo da Vinci (1452-1521) had appeared in the Italian scene and
had changed the concept of art and civilization. He was an artist of great excellence, an
engineer, a sculpture of great eminence and a designer who had a unique mechanical skill and
could visualise, a balloon, an airplane, and war weapons and was a student who excelled in
drawing and painting of anatomy and biological issues. His paintings in Sestine Chapel and
sculpture of David and Mother and Child are masterpieces, and are looked at in wonder even
today. The grandeur of Elizabethan age had started to yield results in Great Britain with pomp
and grandeur under patronship of Queen and there was an outburst of literature and artists
alongside cultural excellence.
The success of Elizabethan age (1533-1604) had increased the wealth of Europe manifolds
with trade, commerce and piracy;. Science was getting increasingly organised and the
culmination was the founding of the Royal Society in Great Britain in 1662. It received its
charter from Charles II. Bacon in UK provided the underpinning of Rational Logic while
Dascartes in France preached the theory of mechanical philosophy by proclaiming, “I think
therefore I am” followed by Hobbs materialism. It is to be noted that before every outburst of
science there was been a outburst of new or revision of old philosophy which taught or
encouraged the thinkers and intellectuals of the day to think afresh, question what they
observe and try to rationalise the phenomenon. It can be said that the ground was being
prepared for such an awakening. The major impact came with the publication of Newton‟s
Principia Mathematica and his propounding of the Law of Gravitation and his classic laws of
motion. He also developed calculus independently at the same time as Liebneiz. It may be
noted that the essentials of Calculus were worked out in Kerala in the ancient times. Major
theories about light and its nature were contributed by Newton in his discussion on the nature
of colour of light. Velocity of light was measured as also the wave theory was propounded.
Progress was also made in Chemistry and in Anatomical sciences, which led to the
development of scientific biology. With this start in 1690 Lock came out with his theory in
Liberty, Prosperity and Tolerance. With more wealth, Bank of England was established in
1690. Severy steam pump was put to use, Static electricity known then as Frictional electricity
was discovered and progress was made in Chemistry with Sahl‟s theory of plogiston as also in
Biology and Geology. At the end of the 17th century, the war of Spanish succession
commenced; Peter the Great, with rise of Russia, was installed in Russia; Berkeley
propounded his Idealism; growth of small scale industries developed in Britain and France.
Darby learnt the technologies of iron smelting with coke, and Newcoman came out with his
steam engine then used for pumping water out of mines. Theories of iron and steel and
principles of metallurgy and scientific engineering were propounded. Hume preached his
proposal of scientific scepticism. It may be noted that development and criticisms were the
spirit of the day. 1750 saw the start of Industrial Revolution - with the availability of steam
power, Great Britain developed many machines for textile industry using steam power as the
motive force to establish factories producing textile. These were Hergreve‟s, Ackwright‟s and
Crampton‟s spinning machinery „Spinning Jenny‟ for wool and cotton. Metal factories were

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established in Boulton, Wilkinson was recognised as iron master, Watt developed rotary
engine and wrought iron was developed. Progress was made in understanding electricity and
+ve and –ve electricity was differentiated by Benjamin Franklin, the American philosopher
and politician, who also developed the lightning conductor. In chemistry, carbon dioxide was
prepared by Black, and Priestly discovered Oxygen, while Lavoiser reversed phlogiston
theory and founding the basis of modern chemistry. Study in Life sciences progress with
precise knowledge of body functions. In France by 1750, Voltaire propounded his theory of
Enlightenment just as Plato had propounded Utopian ideas in “the Republic” in his utopian
model. Rousseau‟s theory of “Social Contract” followed. In Britain the fall of Indian sub-
continent under the British hegemony started in 1757 and in far America the American
Revolution against the British Rule. Indeed mid-18th century was a very significant period of
human history. The Industrial Revolution, British conquest of India, American Revolution,
with French Revolution round the corner, and flow of wealth from South and East to Europe
and blossoming of scientific discoveries and its final acceptance.
Adam Smith‟s study “An Enquery into the Nature and Caise of Wealth of Nations”
was a seminal work published around 1776. It recognised the impact of skill in cost-reduction
and standardisation in mass product and its positive effect on cost as Eli Witney in America
was the first who indicated the advantage of repeatability and replaceability of component
parts in volume production later. Adam Smith‟s study encouraged factory organisation and
mass standardised component production and initiated modern volume production methods.
This saw the start of machine age. This movement led to the gradual emergence of Capitalism
wherein a group of wealthy people, capitalists, invested or raised capital for investment, which
in turn employed labour for providing manual inputs. As the demand grew, the need for
manual replacement arose as also cheap source of power, which led to the development of
steam and later electricity. However, two classes were created, Capitalist vs Labour, as in
Roman and Egyptian times it was Wealthy Palricans against Plebeians or slaves as represented
by Spartacus. French Revolution, which was staged in the same period, was also a fight
between the “Haves” and “Have-nots” and these divisions and tensions raised constraints and
tried to change the ills of society as then prevailing. Malthus published his doomsday
predication in this period. But peace prevailed in Britain and, therefore, the Industrial
Revolution flourished and later spread all over Europe in spite of the Napoleonic era and the
Germanic war, funded by the wealth that was obtained from India and other countries like
Mexico/Peru/Brazil by the Spanish, Portuguese and Belgium and Dutch sailors. While
Travistock introduced his high-pressure engine, Wittworth and Maudlay developed various
machineries. Small and modern factories producing consumer products reshaped Britain and
most of Europe. In fact, the wars helped in raising the demand for war equipments and added
to it was the increase in exports to colonies.
Marx and Engles published their Communist manifesto in 1850, and as stated earlier,
Britain became the workshop of the world Stevenson‟s Locomotive which revolutionised
transportation had been launched before 1800 and steel making improved with the adoption of
Bessmmer process. Otto also developed his four-stroke cycle engine and most importantly,
Parson patented his turbines. In this same period, 1850–1900, Orstread, Volta, Faraday, and
Davy found use of electromagnetism, which would lead to the manufacture of electric motor
and generator as an alternative power source to steam. In the realm of Chemistry much
progress was recorded with Organic Chemistry and Inorganic branch developing with equal
alacrity and soon dyes and explosives were added to its range of supplies. In the life sciences,

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evidence of ice age and ancient man was recorded and Mandel‟s hereditary experiment was
conducted. Darwin wrote his famous “Origin of species” which caused quite a stir and Pasture
propounded his germ theory of disease, which led to development of antiseptics and vaccine.
In the political area, American civil war was fought; Russo–Prussian war took place with the
rise of Germany and the installation of colonial imperialism. During this period, growth of
Biochemistry was significant especially microbiology, body science and agricultural science.
In 1900, Russo-Japanese war was fought with victory to Japan. This was a turning
point in the Asian history and awakening and this was followed by Russian revolution.
However, the march of science in Europe and America kept up the pace with America
gradually taking up the leadership after World War I, because it could invest more and gave
harbour to more scientific personnel who fled from Europe. In fact 20th century could well be
termed as the century of Science. The two world wars 1914-1918 and 1942–1946 gave it a
push for all-round development. With the installation of Nobel Prize the interest in the general
achievement of science in popular media increased. However, in spite of victory, depression
following World War I with science thriving specially as indicated in America. There was
growth in fundamental science in such spheres, as Physics, Chemistry, Mathematics and
Biosciences. Particle Physics, Elaboration of Einstein‟s Relativity in 1905, investigation in
Atom and design and use of various flying machines occupied the attention of scientists and
the public. With Parson‟s discovery of the turbine, Whittle discovered jet engines and
travelling was revolutionised. World War I introduced mobile tank warfare, which was
perfected in the World War II when the Allies won the war against Rommel. But the
construction of Atom Bomb, which destroyed the might of Japan, was the highlight of World
War II. Rutherford split atom, Cavendish Laboratory in Cambridge University, UK and
following that initial work, Openheimer‟s team in USA constructed the Atom Bomb, which
resulted in the use of atomic energy under controlled fission. India took part in this overall
development (not with Atom bomb) with J.C. Bose and P.C. Roy taking the lead in Physics
and Chemistry respectively. J.C. Bose contributed in establishing wireless communication on
which Marconi took a patent for commercial use. J.C. Bose later carried on research to prove
the elements of plant life. P.C. Roy wrote a treatise of Hindu Chemistry giving an idea how
ancient India was involved and built up a chemical industry in India. They both built up an
Indian school of scientists with J. N. Mukherjee, J. N. Ghosh, J.K. Chowdhury, R. Bose and
others. These leaders were followed by C. V. Raman, Nobel Laureate for his research on light
now known as Raman Effect. His nephew Chandrasekhar was a noted astrophysicist and also
a Nobel Laureate for his pioneering work on the life of Star and Black Hole and the state of
universe. M. N. Saha was a pioneer in Physics (Heat theory) and has his classmate S. N. Bose,
the former concentrated on solar studies and also astro-physics while the later is known for his
Bose-Einstein Statistics with sub-atomic particle named after him “Boson” which has given a
clue to Higgs in his effort to resolve the major issue remaining to be solved the “Law for every
thing” Of the four fundamental forces, law governing the weak force, the strong forces in
atomic physics and Electromagnetic forces have been grouped under one category but the
gravitational forces have not been explained in conjunction. Newton and remains in isolation
as of date identified it. An effort is being made to locate “Higgs Boson”, the illusive particle
which will the scientists believe find a common platform for all the forces to solve the need
for unified answer. The search is on and in coming month of May, the answer may be
forthcoming. While Particle physicists are looking inside the atom, mystics of the universe or
cosmos have developed space scientists that are busy in exploring the universe through the

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Hubble telescope, West telescope, Rocketry and satellites. The field of communication,
initiated by Charles Babbage in 1835 in a theoretical paper, has led to the development of
microcircuits chips and various devices covering all aspects of audio, video and other
combinations. Genetic engineering and pure gene research with the double helix structure has
been searching the secret of life itself, of which Khurana‟s work has been outstanding for
which he received Nobel Prize. New understanding on the field of Economics in which
Amartya Sen has earned recognition and Nobel award and the science of Robotics has opened
up new vista of research and investigation thus widening the boundaries.
The march of science started about 400 years back, has gone apace without any halt in
an exponential scale. Whether it is leading to distinction or improvement of knowledge;
whether the gained knowledge will lead to peace and prosperity, it is for the generation up and
coming to decide Atomic knowledge has and can produce boundless energy and it can also
produce Atom Bomb. It depends on how mankind determines to use this knowledge. Hence,
the need for developing man with a balance behind his materialistic need and the spiritual
need which has been badly neglected is of prime importance.
It has to be acknowledged, however, that science has brought in a major revolution
through the development of information technology and the use of computers using digital
technology. This development has impacted on civilization to a very large degree, as
communication has been cheaper, faster and readily available besides handling, storage and
analysis of data in digital form. This has to be borne in mind and there is more to come.
Similarly, the advances made in nano science and Biosciences using “Stem cell” are really
aiming at changing the very concept of science and are furthering the development of newer
technology and benefiting the growth of civilization by spreading education and knowledge.
Yet again, it is a double-edged sword and can certainly harm the growth if not properly used.
This is the issue, which has to be resolved.

III. History of Technology

Technology primarily concerns itself with the development of appropriate techniques and
related machinery, tools and tackles for performing any desired task. It has drawn from basic
sciences and applied engineering skills to achieve the objectives and thus has earned a
separate identity as “Technology”. Recent times are primarily technology based and the
present age is identified as “Technology Age”. It would, therefore, be interesting to narrate the
history of technology and its development and its contribution to human development.
The hunter-gatherer nomad depended upon his tools, designed developed and made by
himself to help him in his task and that is the origin of flint tools, sharp and easy to grasp what
was fabricated by splitting pieces of selected flint, devised a hammer of a striking device and
learning through experience it laterally found a process specialisation that of a flint maker.
They supplied sharpened flints to the consumers to meet their demand. The essentiality of
technology-based units thus had its genesis. Choice of correct material, and techniques,
correct location near raw material and specialisation with improved tools, and any other
device as may have helped improved the process. Another group may have specialised in bow
making, making arrows and spears with sharpened head made of flint. A further extension
may be using the leather/skin from the animal killed to make covering or sting shots with
thongs from intestines; with hoofs providing resins and meat for food. It was from the fish
bones that harpoons were designed and developed as also fire making devices with Bow drills

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and flint pieces rubbed together. It must be noted that it was the necessity that spurred the
human being to try, test and devise perfect tools for the task. Necessity is thus the mother of
invention as of then as it is as of now.
The next major technology breakthrough was the needle with an eye developed from
fish bone for sewing skins or even leaves or other fabrics like, true bark etc., for making
clothing, container and each boat casing strengthened by ribs made from tree branches. Note
the gradual development of skills and the degree of sophistication exhibited in the
manufacture of ornaments made from seashells, beads, etc.
The control over fire gave yet another fillip to the growth of technology. This itself
required new technology, which had to be learnt through trial and error, and hence required a
lot of time and selection. The adoption of agriculture led to different sets of tools and
techniques, which had to be developed and adopted. The ingress of fire usage led to the
development of the need to start fire (use of bow drill and flint) maintains the fire (proper
source of fire place or pit and firewood scantling); protect it from fire spreading (fireguards,
wind blow, smoke emission) and extinguishing fire (executive duress, etc.). The use of fire led
to the need for a fireproof container for usage as the leaf (Dona) and skin container of no use.
The container must be able to withstand fire exposure and that led to the development of burnt
clay pots, which led to ceramics in which China was and still is the leader in the world. Out of
this central theme is need and innovation, and by trial and error needing more time than
imagined. New Technology was necessity driven and time consuming.
In the case of agriculture, the need to dig a furrow in the top soil to lay the seed as also to
cover it, led to the innovation of the shape wooden ploughshare, the wood being so shaped by
burning off the unneeded portion and subsequently the use of metal when with fire the metal
modules wee melted and given shape by hammering. The other most important tool was
scythe, which was used for cutting the crop during harvesting. Since this needed a longish
sharp end, the orism, a volcanic strip was used and this item became a major export from
Catal Huyuk to Sumer in the early BC period.
The tool had to be made from harder material and that metal tools served the purpose, first
from copper, then from bronze (copper plus tin both obtained from nodules of volcanic
eruptions and melted by fire. This was the beginning of metallurgy.
The other was textiles and weaving. The weaving of baskets from slit bamboo or from
grass or through any binding media, was the first step, which got transformed, to making
slings from cotton flux by spindle spinning and ultimately weaving in looms for textile. The
question of various design of loom and the development of the mouse or shuttle was a great
breakthrough. In fact, textile industry was the forerunner in technology development as was
stamping, wood engraving, printing by block and the need for fast colours, which initially was
all organic and not synthetic.
The discovery of pulley block, rope, lever and fulcrum were added to the armoury of
technological importance. It was this breakthrough that enabled the construction of the
massive Babylonian structures and the building of the Pyramids in Egypt, which even today
astound the world. The management of water by building dykes, swamps recovery, water
supply and sewage system and other civil engineering works which were carried out in India
and Egypt were also indications of the technological marvel which surprise the present day
world. The excellence of textile from India, silk from China and woollen in Europe, were a
matter of surprise

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 Yet another technology area, which was developing to meet the energy, needs were
extraction and mining industry in Great Britain and other new industrial resource rich nations.
The trade also expanded and along with the land based trade; sea trade was also added with
the development of sea going vessels sailing along the seashore during the Sumerian kingdom,
especially between Harappa and Sumer and along the Mediterranean coast by Mimoian and
early Greeks. It is important to note that before the advent of Christ of Nazareth, the
civilizations were well acquainted in technology, concerning civil engineering, coastal sea
navigation, metallurgy from copper to bronze to iron and production of weapons and armours
of the basic elementary type. It should also be noted that anatomical study had led to the
founding `of the surgical technology, bone setting, grafting, incising and other allied skills.
Food production technology was by then mature, spice production had a world trade as also in
textiles. Tremendous progress was made in handicrafts both in India and China and trade and
prosperity was widespread.
With the advent of Christianity, which followed the breakthrough of rational thinking in
Greece following the advent of Socrates, Plato and Aristotle and practical experience of
Archimedes and his school, who initiated the growth of applied science which impacted on
technology, the world awaited the next cycle with the desire to conquer the sea by building
large ocean going vessels both in India and China and in Europe specially the Dutch for
increasing sea going tirade as the demand and expanding market had to be served. After the
first millennium, the necessity to innovate and focus on sea-trade; navigational needs and
shipbuilding, building port facilities backed by adventurism led to remarkable growth of sea
trade. Sailing between east African coast and India increased rapidly as also that between
China and India via Mallacca. Many new technologies, navigation, port development, ship
design, sail design and various types of construction developed. Junks by the Chinese,
Carracks by the Europeans, Dhows by the Middle Eastern Arabs etc., sailing ships by the
Indians and others were all wooden boats built with Malabar teak and African wood.
Shipbuilding was a flourishing industry with appropriate technology in Europe, India, China
and present Malaysia besides that in Europe.
With increase in demand, the need arose for high volume production and that accelerated
the development of textile machinery and water pumping units from coal mining in UK. The
need for power, far exceeded manual power though supplemented by animal power and water
flow power; but these technological solutions were not enough. The source of other forms of
power were investigated and the original work done by Hero in the Roman era was reactivated
by Watts in UK who took advantage of the development of steel-making and rolling capacity
at Boulton in Manchester. The practicalisation of steam as power source could only be
formalised when steam under pressure could be retained in a sealed vessel and that could be
only by fabricated by riveting and plate rolling industry. Watt designed the first steam engine,
which was used for pumping water out of flooded mines in UK and for other water pumping
purposes. The convenience of using seam-power for transportation was the next development
by Stevenson and using steam power to run textile machinery was obviously the next step.
Indeed this was so. The railway engines running on laid rails or even powering wheeled
chariot revolutionised transportation as textile machinery run by steam power increased output
many-fold and added to quality and eliminated labour constraint. The rest is history.
The internal combustion engine designed by Otto and then by Daimler followed with
revolutionary changes in the area of transportation, while Faraday and others identified the
electromagnetism as yet another source of power, which could be used with profit and general

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benefit. Thomas Alva Edison in USA, was the archpriest of the use of electro-magnetic power
using Maxwell‟s well-defined laws and with his assistant Tesla, designed and developed
electric motor and electricity generator, dynamo and also transformer and alternating current
system. This changed the entire scenario of availability of power in usable form and led to a
total transformation. The brealthrough in information technology and digital approach has
brought in radical change in storage, retrieval and application of data for improvement of
technology.
The present stage technology is concerned with nuclear power sources and nano
technology. The Biosciences are now so advanced that organ replacement, genetic engineering
and even replication of life, which as has contemplated, raised ethical consideration. As far as
astronomy and astrophysics are concerned, the measurement technology has advanced to a
power where the search for the elusive “Dark Matter” is being sinuously investigated. It is a
quantum jump in technological progress. Indeed so fast and diverse development is making
place in the field of technology that one can hardly keep pace in this technological age and
one ends by wondering whether society is controlling the technology or technology is driving
the society. Whether society identifies and adjusting itself to the need of technology, which is
creating new and yet new uses, only time will tell.

Technological and Industrial History of the United States

As already indicated the phenomenal growth of USA in the area of production occurred in
the 19th century as illustrated by the index of the total industrial production being 4.29 in
1790. which increased 400 times in 200 years with 1850 as the base 100. As indicated, the
expansion of Industry was to meet the growing need, the entrepreneurship and the motivated
immigrants who wanted to improve their life coupled with enormous resource availability, and
free enterprise, and enthusiasm exploded the economic scene and led to the foundation of the
modern USA, around the turn of 20th century, American industry had superseded European
counterparts and asserted its military might. In spite of the great depression it emerged as a
Super power helped by science and technology with cutting edge and collecting the best brains
of the world by offering opportunity to grow and function in a free and progressive economy.
As already indicated, North Americas was inhabited in the 10,000 BC by the True man
who crossed over the Bering Strait from Russia and came via Alaska. But they were nomadic
and had developed some form of pastoral life. They lived off the land. It is the incursion of the
Europeans from the 15th and 16th century, which infused science and technology along with
the abundant resource to give a major boost to Industrial Revolution in all avenues of life
starting from horse drawn, ploughs. The pilgrims, peasants, Quakers who fled Europe to avoid
religious prosecution engaged in prudent hard work and increased agricultural output by
adopting new ways and trading the surplus. Commercial crops were also grown with the help
of slaves imported from Africa and very slowly but steadily artisanship in machine making
and repairing grew to meet the market demand.
After the American Revolution in 1783, the government of the day enacted laws
encouraging innovation through patent protection and the Congress enacted steps “to promote
the progress of science and useful arts by securing for limited time to authors and inventors
the exclusive right to their respective writing and discoveries.”
Factories and mills were set up to operate these inventions, which were an improvement
on the European models and first high pressure steam engines was developed by Evans. In

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1789, Elli Witney developed a mechanized Cotton Gin, separating cotton from seed and
revolutionized the textile industry. He also developed the idea of components standardization
and replasability, which transformed the army‟s need to repair muskets in the war field.
Sameon North improved work methods by following Adam Smiths finding about work
division and specialization and devised milling machine and special lathes which helped the
army. These innovations and others gradually led to the establishment of large workshops,
both general and special in nature leading to the establishment of factories and later companies
carrying out such tasks. In the textile industry, spinning Jenny, Water frame, spinning mule
improved both quality and output. Though forbidden from export by Great Britain, these
devices were fabricated in USA and used extensively. Cobot Lowell‟s replication of British
power looms of an improved variety is a case in point and the inventiveness and innovation
was even encouraged and implemented without much resistance to change, which often
inhibits the thought process of the first inventor.
The development of roads and canals provided yet another opportunity for the inventor to
work upon, mechanical device to lay roads truly and well were fabricated and used as also
paddle steamers which grew in size and conveyed goods along Mississippi river and other
canals which were dug for the purpose. Necessary legislation was forthcoming and so also
other support from the respective state governments. Numerous canal companies were formed
from joint stock companies and movement of goods helped expand the market, which led to
increased production and reduction of cost, may be improving quantity. Toll taxes were
collected and promptly disbursed by the state leading to growth all around innovation
followed hand in hand and improvements were implemented with speed to spread the benefits.
Some examples of expansion in steamboat (paddle steamer) population would be meaningful
as 17 boats in 1817 to 737 boats in 1855 and the cost of travel decreased by 90%, the margins
remained high because of increase in volume.
Special innovations to use high-pressure steam, screw, propellers instead of paddleboat to
make it sea faring were also initiated, fabricated and encouraged.
These examples were replicated in rural roads, which covered the length and breadth of
the country as also in iron and steel making. Use of charcoal from wood was stopped because
of deforestation and making open hearth and Bessemer technology developed in UK but
modified by Killey in US used instead coking coal. This saved the forests and encourages
spread of railways, which brought about great unity of purpose and economy in one move.
Besides, the investment the Bankers who raised money from the investors who could and did
take risks for better gains looked into part.
There was expansion in Telegraph and Telephone services because of demand. Graham
Bell‟s experiment with Watts and Morse‟s code using electricity for communication enthused
the entire nation. Bell Telephone Company known, as Ma Bell was set up and became the
largest consumer oriented company in the world making immense profit.
Amongst the energy sources, the most important after coal was the discovery of
petroleum in US, which sponsored a great deal of enthusiasm. It created a condition akin to
Gold Rush in California creating many a millionaire and more paupers. John D Rockefeller
was a forceful driver of consolidation of the oil industry. Beginning in 1865, he bought
refineries, railroads, pipelines, oilfields and ruthlessly eliminated competition to his oil
company Standard Oil so much so that he controlled 90% of American oil production. This
called for investing alone on monopoly, and the law took care of it by enacting Anti Trust Act
leading to disbandment of Standard Oil into three separate companies.

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 Electricity was the other area to attract attention while the theoretical work had been done
in Europe with the American Benjamin Franklin assisting, the practical use was concentrated
upon by Thomas Alva Edison who made practical and commercial use of Faraday‟s discovery
and established the lighting industry with great success. His company Edison Group was the
holding company of manufacturing Generator (Edison Machine Company) Cables (Edison
Electric Tube Company), generating plant and electric devices (Edison Electric Light
Company) sockets and bulbs. He covered the entire range, much like Carnegie who covered
the entire chain -.mines to smelters, to match the approach of Rockefeller, from Oil fields to
railroad to refineries, to pumps to markets. Edison‟s protégée Tesla invented an electric motor,
which revolutionized electric drive and AC transformers, and AC motors, which led to the
development of Westinghouse Corporation. Edison‟s group was renamed General Electric,
both operating successfully even today.
Automobiles were the next sector which though developed in Europe by Otto and
Daimler, the four- stroke cycle by the former and the two-stroke diesel cycle by the latter
towards the end of 19th century, the production and quality and growth volume and output
were made possible in USA under the guidance of Henry Ford who was a chief engineer with
Edison‟s, who planned and developed the assembly line operation and reduced the cost to
manageable proportions by applying production engineering, technology and quality control
concepts.
It is to be noted that America virtually replaced Europe in technology leadership by
World War I because of its resources and the work and academic freedom that it offered to the
scientific and technological community specially the Jewish scientists whom it offered shelter
in the face of German Jewish oppression. American use of technology thus scored a quantum
jump though theoretical work in basic sciences continued in Europe. With the devastation of
World War II even this lead practically disappeared and America became the acknowledged
base of technology development with Europe trailing behind both in the context of brainpower
and expenditure
Space research, genetic research, biosciences research and basic research in Physics and
Chemistry progressed rapidly in America and its University system. Witness the number of
Nobel Laureates during the recent decades and the conclusion is obvious. During the war, yet
another important development took place in the form of industry, academic and political axis,
a combination of the three areas of activity to a common objective which led to the
development of the Atom Bomb and nuclear power generation though France and Russia also
progressed in this area.
The present state is that America leads the world with Europe a poor second trying
desperately to catch up the lost glory. Developing countries like China and India are marching
forward but the infrastructural development in USA is so advanced, it will take some doing to
catch up as has been shown by China and partially by India. America has realized early
enough that technology and industrial research is no longer a “cub-by-hole” affair with a
dedicated genius working, but a multi-dimensional and a multi-disciplinary approach and has
steadily worked towards it. Finance, environment, management skills besides the technology
inputs are vitally necessary, supported by educated and enlightened minds and share
individual in the profits which has enabled west to achieve success. This conclusion is slowly
sinking in and China has surpassed India in this effort though India does boast of better
intellectual ability, witness its success in Information Technology. Witness the success of
Japan achieved, as it is not rich in natural resources and cheap labour, it has opted for

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mechanisation innovation of the highest degree for achieving success competing even with
USA.

Industrial Revolution in Great Britain

Known as Industrial Revolution which ushered in a great prosperity in Europe at the turn
of 16th century and then in full form in 18th century grew out of a combination of natural
growth and economic factors as have been explained by Toynbee in his celebrated lecture on
Industrial Revolution, he has very aptly used the economic teachings of Adam Smith, Malthus
and Ricardo as also his own expertise of history and political economy to analyse the
phenomenon. As per his analysis, the agrarian reforms in England, the replacement of
yeomanry and the growth of trade as also the various laws of land to encourage the commerce
and trade had led to this phenomenon. He has, however, not drawn attention to the effect of
colonisation that increased the market demand many-fold and injected enormous wealth or
booty form India and the Americas, which assisted this process.
. England had its initial test of Factory organisation, which had outgrown foundry units as
happened all over the world because of the need of agricultural labour. In mid-England,
woollen factories, followed by iron merging and casting industry grew up with textile and
other primary industries offering more wages thus drawing in agricultural labour. This was
added to in the reform done in transportation in the form of river traffic and improvement of
road and sea trade. Market demand expanded and human inputs were not capable of supplying
the motive power With the trade route to colonisation expected, the inflow of raw materials as
also demand of products encouraged more production base leading to improvisation of
working machinery, better organization and innovation. With the opening of the colonial
demand as also increase in local demand wanted increase in production and as “necessity is
the mother of invention”, mechanics and artisans and also traders who were wanting more
output were eager to invest and set up larger factories and production bases. As indicated,
factory set up was already there as also innovations. With the influx of many machines,
breakthrough was made in the textile industries, laws were enacted and enforced to protect the
innovators and artisans and capital was available from Indian booty and American silver. This
enabling condition sponsored the industrial revolution the effect of which was far reaching
and is happening even today. The joint stock companies were formed. Business or trade
assumed a social status thus inducing men of substance and innovation was encouraged. The
steam engine, which has been developed by Hero in Alexandria, was revived and Watt,
Stevenson and others used it as the main motion power supplier. Later, electricity came in as a
clean power supplier and the entire technology changed along with the various enactment and
laws that helped industrialisation. The process is still continuing with emphasis on quality and
cost and of late on environment.

Technology – Japan and others

The growth of technology in Japan has followed the pattern of India. Both of these
nations as also China developed from small diverse industry mainly textile, artefacts, spice,
agriculture, medicine and other related items which served small communities and were also
based and confined to families. Even today, in Japan and China as also in India families are
specialized in such areas; China in silk, India in cotton textile, Japan in armament work, etc.,
which are special products quality-wise super and quantity wise limited.

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 With the increasing trade links and naturally bigger market demand increased the need to
the development of special machines to do the job and exposed; yet another facet of Japanese
skill, their ability to manufacture better machines which could make quality products and at a
reduced cost. This was a major point of difference between Japan and India. To take care of
the need for capital, large and prosperous marketing groups were formed who put up the
capital for these efficient machines which were made and distributed to the artisan family who
may well have developed these in the first place and the quality output to specification was
collected by the marketing group and sold to the world as Japanese product. This was the
epitome of the present outsourcing model, decentralized production activity. With the growth
of this system the ultimate
was the Zaibatsu system which comprised large and economically strong groups with banking,
insurance, transport, marketing, procurement and production specialists covering the entire
range of operations which decided what to do, how to do, how much to do, where to sell at
what price and the margin was rationally distributed to the various parties. This was the
growth of Japan Inc concept.
The Zaibatsus became so powerful that after World War II the set up was disbanded and
though decentralized production renunciated it was organized by large and powerful groups of
business like the Toyo, Mitsubishi, and Mitoui, etc., which work in conjunction with the
Japanese government thus defusing the monopoly tendencies of the Zaibatsus and improved
the magic of Japan Inc. Kairestu, large industries groups, has replaced this.
Presently, with the decentralization of component manufacture, the assembly operation is
carried out in large factories where the tendency towards precision and replacability has
increased the induction of Robotics to carryout difficult assembly functions, thus eliminating
the chance of human error arising from strenuous repetitive work In fact, Japanese machine
building industry has literally overtaken the Americana and German specialty of producing
special machines with their built-in concept of zero defect and has converted the Koreans, the
Taiwanese and the Chinese to accept this proven model. It is said that the most important
database is maintained at MITI. (Ministry of International Trade and Industry) and from this
focal point all investment decisions emerge and all monitoring is done to achieve the
objective. Japan has, therefore, successfully married the benefits of decentralization with mass
production and quality volume manufacturing techniques and this may well be the answer to
industrial ills.

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 Chapter VIII

Management and Business History, Planning Model and

Corporate Ethics

It is impetrative for a student of management to be aware of the growth of management

and history of business, which has developed over the years as also the history of the planning
process and emergence of corporate ethics to fully understand the process. The Development
of Business History, which is a recent phenomenon, has therefore been commented upon.
Management Practices and the Evolution of Man

Reference has been made to the Evolution of Man and the basic steps of development,
which are
1. Nomadic-hunting and gathering of nature‟s bounty
2. Pastoral – agriculture and community living
3. Dawn of Civilization – animistic, city, state, law and order, behaviour codes,
religion and rituals, trade and traffic.
4. Established civilization – Priesthood, kingship, trade coherence, political and social
divides – wars conquest buildings, Art – Egyptian constructions and water
management, astronomy, mathematics
5. Prior to Industrial Revolution- Greek thoughts, Rational Science, Roman law,
organisation of army, Concept of money, language and written text
6. Industrial Revolution and after – Science and technology, various „ism‟s, etc.
Management practices in vogue in each phase though overlapping can be identified as
under:
1. Leadership, division of responsibility, skills acquiring, standardization, working in
groups, inquisitiveness, analysis and deduction, management of fire.
2. Learning from nature – Broadcasting of seeds, agricultural processes, tool
development, investment principles – foregoing immediate satisfaction for future
greater gains, storage, concept of stocks surplus, barter, studies of elements, Water
management, knowledge of melting and metal working, skill enhancement
3. Emergence of basic thinking man, Cause and effect, avoidance of catastrophe,
Water resource management, religion, communication, transportation agency, risk
sharing, group living, and organisation, army.
4. Organisation, generation of surplus, administration, building skills, painting skills,
religions refinements, language, scripts, art, division into classes, skill
intensification, and grouping
5. Management principles in full flow – organisation, communication, governance,
investment, risk taking and sharing, code development and monitoring, planning

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 comparative advantage, initial stage of competition, specialisation, quality and
cost.
6. Competition, cost advantage, volume advantage, product cost and mix, economic
approach, science and technology management, cost management, present day
principles of modern management
It has to be admitted that the army was the most experienced unit to establish and
implement rules of organisation and group working effectiveness method to control a large
body of diverse people and direct them unitedly to achieve the objective was developed and
implemented in the army from which the world has learnt. Witness the building of the
Pyramid in Egypt. It must have required hundred of men in handling and raising the huge
stone slabs and position these in proper places allowing for all the secret passages to the burial
chambers to prevent piracy. It did require civil engineers or whatever they were known as but
just the planning, marshalling and executing the principle plan to perfection must have called
for basic managerial skills of a high order, or the concept of marching of the matching of the
Phalanx adopted by Alexander. Being in a compact group, by raising and joining their shields
overhead, they could protect their bodies from weapons arrow and stone and march forward in
a compact group to vanquish the army. The entire history of armed conflict is full of plans,
strategies and tactics, as we understand today in the corporate world. The buildings of
Babylon were included as wonders of the world and needed intensive civil engineering skills
for construction as well as material selection and transportation. However, the importance of
management grew with the shortage and lack of resource as happened with the shortage of
fertile lands. Fallow land and only rain fed land had to be made cultivable by water
management, by constructing dykes, dams, channels, etc., yet another example of skill
enhancement and necessity being the mother of invention.
From army the organisation structure of the government agencies was but a natural
transition. The lines of command, concept of line and staff organisation leading to “matrix”
organisation grew out of seeking solution to practical problems. But nothing quickened the
process as shortage or competition did. The pioneer theorist in management may well be the
Chinese Sun Tse who wrote a seminal treatise on strategy and war before Christ was borne.
For corporate affairs, Heney Fayol a French mining engineer who served in the French
army must be given the honour for his 14 principles, which laid the foundation of modern
management thinking. During the same period, F. W Taylor, an engineer and F. Gilbreth,
another engineer in USA were trying to establish methodology for improving production by
using the inputs principally labour, in a better manner. Taylor developed „Time Study‟ -
measurement of time taken by labour to produce the right product while Gilbreth concentrated
on finding out the best method of doing the work, which came to be known as “Motion
Study”. Since America was the leading country in the world in production matters, Taylor and
Gilbreth stole the attention for their “Scientific Management” approach over Fayol‟s so called
analytical approach and won the day. But the implementation phase of the scientific
management threw up many problems. The labours in Taylor‟s system was expected to be
nothing better than a healthy robot who was to carry out repeated task tirelessly though
relaxation allowance was incorporated in the standard time allowed; witness Charlie Chaplin‟s
masterpiece “Modern Times”. This lead to violent labour strikes and labour psychologists
took over and offered solutions like monetary incentives etc.

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 I. History of Management
Management is as old as mankind involving organisation, skill identification,
development and allocation, planning and efficiency concepts in any operation. Army was the
testing ground of development and proving of concepts like marshelling, recognising
constraints and weakness of the forces, gathering of requisite information, etc., all very
necessary adjuncts of management. Witness the construction of Egyptian Pyramids, and the
edifices in Babylon as also the planned city of Mahenjodaro and Harappa. These must have
required great planning, engineering and execution skills and human resource management all
involving basic management principles.
It was, however, left to Sun Tzu in the 6th century BC or even earlier than when Buddha
was preaching, who as a Chinese General wrote his treatise on “The Art of War”, which was
essentially a military strategy book that covered managerial topics and recommends
identification and awareness of the strengths and weaknesses and acting accordingly to
achieve victory (objective function) over the enemy.
It is to be noted, however, that the epics Ramayana and Mahabharat also commented
critically on the science of war and governance or Rajdharma and Yudha Vidya. It may also be
noted that the Manu Samhita codified the behaviour of man for enforcing discipline for a
peaceful and prosperous society as also Moses‟s ten commandments and earlier
Hammurabbee code of behaviour. Though not recognised as books on management these
treatise dealt with management principles in early stages – work analyses, work classification,
skill development, sustainable society and code of ethics known as “Dharma” in Indian
religious connotation.
Chanakya (Kautilya‟s) Arthasastra is yet another seminal book on the subject of economy
and social order which was written about 300 AD under the Gupta period of Hindu Kingdom
in India. Besides, one cannot but recognise the effort of Ashoka, the king of kings, in about
300 BC who converted to and propagated Buddha‟s teaching through his stone edicts to
preach moral code to the benefit of society - social management at its best.
With his mastery of political science much like Chanakya, Niccolo Machiavelli wrote his
seminal book “The Prince” and the assumption that the people were motivated by self-interest.
He advised the leaders of Florence, Italy, in 1571 to maintain control through the apt use of
“fear” and not hatred, as had been the practice. As indicated before, in the Indian scenario,
Kalhan who wrote Raj Tarangini, a treatise for Kingship much like the epics, adviced justice
(Nyaya) and impartiality based on Truth (Satya) to be the twin pillars of proper administrative
management.
It was as late as 1776 that Adam Smith, a Scottish moral philosopher wrote in trail
blazing book The Wealth of Nations spelling out the requirement for an efficient organisation
through proper and planned division of labour (1723–1790). Smith described how changes in
processes could boost productivity in the manufacture of pins, an essential component in
textile processing. While individuals could produce 200 pairs a day, by analysing the
processes of manufacture and regrouping and engaging 10 specially trained the production
could shoot up to 48,000 pieces per day, i.e. 4800/man/day or 2400 pairs.
In the 19th century modern management principles emerged as an offshoot of
Economics, started from Adam Smith to John Stuart Mill (1806 –1873) who analysed resource
allocation, production and pricing issues all important subjects in modern management.
Contemporarily Eli Whitney (1765-1825), James Watt (1736-1819) and Mathew Bolton
(1728-1809) developed elements of technical production such as standardisation, quality

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control, cost awareness, inter- changeability of components/parts and work planning. In pre-
1861 slave based economy in US, many such innovations developed in the then management
with Alfred Marshall (1842-1924) and Leon Walras (1834-1910) providing new theoretical
under-pinning in the art of management and adding the rigours of science in the discussion.
This brings us to the growth of scientific management era initiated by F. W. Taylor
(1856-1915). This was preceded by Mary Parker Follet (1868-1933) who wrote on the topic in
the early twentieth; century defining management as the art of getting things done through
people and French engineer Henry Fayol analysed management function to fulfil six functions
as being – (1). Planning, (2). Organising, (3). Leading, (4). Coordinating, (5). Controlling and
(6) Monitoring results. He was a mining engineer employed by the French army and was the
first to provide a theoretical framework to management art which was differently propagated
by F. W. Taylor (1911), who introduced „Time Study‟ and Frank Gilbreth (1917) who
introduced “Motion Study” concept and laid the foundation of improvement and measurement
of management activity and the introduction of scientific temper in management. Henry Gantt
(1910) was an associate of Taylor, contributed by designing the planning charts, which
assisted in work planning. In 1912, Yoichi Ueno introduced Taylorism in Japan and his son
Ichino Ueno pioneered Japanese Quality Assurance.
While Henry Fayol (1841-1925) expanded the scope of management, others such as
Elton Mayo (1864-92) Max Weber (`1864-1920), Renessis Likert (1903-1981) and Lilian
Gilbreth, wife of Frank Gilbreth applied psychological principles to study human behaviour to
assess the negative reaction to Taylorism and also to assess avenues to improve productivity.
This led to McGregor‟s well-known approach of categorisation worker according to their
attitude to work, Theory X and Theory Y, grouping the willing self-motivated worker and the
unwilling worker and to which at later date Theory Z was added identifying the ambivalent
worker, Maslow also contributed to the study by proposing what motivates a worker to work
and the scale of the needs he would like to satisfy. Besides, the well-known Hawthorn
experiment was conducted which indicated the influence of the group on the judgement of the
worker, some termed it as Herd mentality. Minzberg also contributed in H.R. field
As it happens, the immediate benefits that were supposed to be derived from
Taylorism caught the fancy of the American Management and Fayol‟s pioneering work was
not given the due importance. However, during World War II, his work did get the
recognition. Peter Drucker (1909-2005) gave him prominence in his seminal book Concept of
the Corporation published in 1946 under the auspicious of Alfred Sloan, Chairman of General
Motors and this was followed by later‟s own biography. During World War II, as it often
happens, a fresh impetus was given to management to resolve problems arising out of scarcity
and emergency and under Prof. Peter Blackett in UK, who formed a team of multidiscipline
experts to study defence needs which led to the conceptualisation of “Operational Research” -
applications of mathematical techniques in solving management problems in scarcity
situations to formulate the most efficient methods of work place. The immediate interest in the
industrial world on this approach led to the development of the science of Econometrics, a
continuation of microeconomics and statistics. McNamara, who later became the Secretary of
Defence in USA, led a group known as “Whiz Kids” who solved problems by the application
of OR principles in Ford Motor company operations and gained fame. Dantzig who proposed
the solution of Linear Programming problem and other mathematicians brought in their
expertise to solve issues on inventories, supply chain, sequences investment and productivity
planning problems using various techniques like Network Analysis, etc., thus adding new

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dimensions to Management Sciences. Lately Porter and Prahalad have extended on Ansoff‟s
pioneering work in Strategy formulation by bringing in the concepts of core competence and
comparative advantage which has added fresh dimension to management sciences. Peter
Druker is yet another name who has made great contribution to management science specially
in identifying Decision Making and Knowledge Management areas.

History of Development of Factory System

In essence, factory is an association of people possessing single or many skills that jointly
by sharing work produce a product required by market or even for common consumption.
Looking at ancient history, assemblage of people producing required product under one roof
or otherwise have been the general trend. During the hunting nomadic day‟s, skill must have
been developed in stalking, hunting, skinning, processing and even cooking. The entire family
of a unit or even a clan must have been engaged in the minor operations or a major operation,
as the case may be, and was compensated by the food and comfort provided by the family or
clan. Payment in kind followed the barter system when surpluses and deficiencies developed.
Primitive marketing started with the increase of demand, as also skills, trading skill, must have
developed demanding increasing volume of acceptable product at reasonable exchange. Thus,
started the concept of apprenticeship and employment of family members, as the members of
working units, which grew with the growth of exchange volume and community work units.
Even today, in India, the textile Banarasi Sarees or hand-woven cotton sarees of Bengal or in
Kanjeevaram are produced in family unit work places, with skill being retained by the family,
and father training the son and eager learners.
The question of paid help was but a natural phenomenon depending on increased demand
and the search for a more powerful and steady course of motive power. This happened in India
where waterpower, animal power and wind power were relied upon as in Egypt where
massive input of human power was used for building the pyramid. With the ingress of
Industrial Revolution in the 18th century in UK, the recognizable appearance of organized
factory and the growth of machinery for woollen industry started. The factory system though
not with motive power must have been organized in India also but the difference between the
European and Asian system lay in the availability and size of motive power and machinery
development. It has been said that United Kingdom in that era became the workshop of the
world.
With the growth of the factory system, came the desire to improve efficiency with the
identification of skills, training through apprenticeship, organization structure and the concept
of cost control. Besides the first role of capitalism, i.e., capital involvement must be paid for in
the form of interest and margins took root as enunciated by Adam Smith in his seminal book
The Wealth of Nations. As an example, he stated that by splitting the total work of bobbin
making into different steps and developing skill in performing each step separately through
specialized machine, the component cost reduces, thus lowering the product cost. This was a
breakthrough-principle, which was followed by Eli Witney‟s idea of standardization and
replacement and revolutionized production in USA through the operation of machines.
Factory management developed as a skill and capital became forthcoming for investment and
adding further to the economic base.
However, as it usually happens to a good idea and development effort, the defective gene
in the human brain started working overtime with oppression on the worker class to produce
more and yet more. As long as it remained a family concern this tendency was kept under

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wrap but with paid labour, the problem became very acute. This was further exaggerated by
the adoption in America of principles of scientific management preached by F. W. Taylor,
which considered the human input as a robot. Labour trouble started and the government had
to intervene to arrest further worsening of the situation. Government recognized this as a law
and order problem whereas management looking at it as an industrial relations problem and
sought different answers. Government went about framing laws like Factory Acts. Labour
laws, etc., to protect the worker from being exploited, while the managerial class concentrated
on labour psychologists to devise ways and means to remove worker dissatisfaction through
incentives, both financial and otherwise.
To prevent frauds and mis-appropriation of money movement by individuals or partners
or groups, Partnership Laws were promulgated and from that the concept of public and private
ownerships started and led to the formulation of elaborate Company‟s Act laying down the
principles of running a business in line with the society‟s thinking then based on principally
financial considerations. It must also be noted that the government had to install a monastery
system based on the financial angle, i.e., audit system. This was to ensure that the business
i.e., the financial side is conducted as per rule and norms laid down with frequent checks by
independent authority, audit firms and presentation of yearly performance record of
transactions carried out by submitting audited Balance Sheets and profit and loss accounts
both for the private and public limited companies. It may be noticed that limited liability
public company had been conceived and come into operation thus extending public
partnership and establishing approved stock markets.
Factory system thus lead to the establishment of large economic enterprises which has
now become the order of the day and must be deemed as a creation of the society to satisfy the
need of economic and volume production units. This has created a great deal of comfort as
also various issues of worry which the society must now tackle in order the reverse the
damage.

II. India since Independence - Challenges Ahead

Developed by Dr. Subir Chowdhury
The Changing Global Economy since World War II
In 1950s, Japan was known to manufacture almost everything that was produced by West,
but their products had an image of being cheap in terms of quality and price. Forty-five years
hence, Japan has such a perfect quality image that we do not even bother for the Warranty
Card for the products with the world-class brand names produced by companies like Sony,
Honda, Mitsubishi, NEC, Hitachi, etc. Even with perfect quality, Japanese products are sold at
a lower price than that of similar products from Europe/USA. How was this revolution
possible? While the western world were still busy in implementing the Statistical Quality
Control (SQC) system to reduce inspection cost and time, Japan declared a total war against
defective products and services through an attitudinal change towards achieving zero defects.
This simple philosophy of Total Quality Management (TQM) effectively adopted by Japan
puts quality as the responsibility of each employee and not that of the Quality Control
Department. Each employee must work perfectly on his own and must treat the person who
passes on a semi-finished work to him as his supplier and to whosoever he passes on his work
as a customer. Others can help him to achieve but will not inspect or supervise his work. This

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philosophy incidentally is applicable to all employees starting from the Managing Director to
the Sweeper of the organisation. Carrying this concept between organisations, through a
process of sub-contracting and vendor development, consignments received from major
suppliers will be accepted in full faith as perfect products without inspection and passed on to
the production line using just-in-time inventory concept. On the reverse, the same concept is
applicable for consignments passed on to the customer organisation.
The cost-benefits for such a model are enormous, since the working capital requirement
gets reduced drastically, tending to become zero and the need for after-sales service or re-
working almost vanishes. Such perfect products open up new markets all over the world,
resulting in significant volume growth with corresponding economy of scale. Thus, Japan now
controls a large chunk of the world market in many sectors like electronics, cars, two-
wheelers, cameras, watches, audio-visuals, etc. In India, we are crying hoarse on the nearly
100 billion US dollars foreign debts collected over a long period of time. In 1995-96, Japan
had a trade surplus of 67 billion US dollars only with USA. In fact, the subsequent sub-
contracting of low value added items to other countries in the East and South-East Asia,
coinciding with their rapid economic progress, has made Japan the engine for development
of the entire region. What a fantastic success story, while allowing due respect to seniority and
guaranteeing life long employment. Ironically, the brain behind the entire movement were two
Americans, namely, Prof. Juran and Prof. Deming. The Western world is now busy emulating
the Japanese model, but, may be, it is a bit too late and, may be, it is not the right model for a
saturated economy. In 1995, the per capita income of Japan was US $ 39,000/- p.a., while that
of USA US $ 27,000 /-p.a.
The next success story is that of Taiwan, Hong Kong, Singapore, and South Korea. South
Korea had the same per capita income as that of India in 1956. In 1995, their per capita
income was US $ 10,000 /- p.a., while that of India only US $ 450/- p.a. (which, even with
purchasing power parity, is only about US $ 1300/-p.a.). After the Asian Tigers, it was the
turn for the ASEAN Countries, namely, Indonesia, Malaysia, Thailand and Philippines who
were growing at 8% per annum till the crisis in 1998. China, which started its liberalisation
process a few years before India, is growing at the rate of over 10% p.a. The common excuse
in India that a large country cannot repeat the performance of Asian Tigers has been proved to
be totally wrong by China. The economic nerve centre is gradually moving from the West to
East and the new century belongs to our part of the world. While 1 or 2% growth of the
saturated economies of Europe and USA is considered to be good performance, the East is
now striving for 8-10% growth and this will continue for quite some time to come. Vietnam is
the latest entrant to the South-East Asia League and is attracting considerable foreign
investments. Cambodia and Myanmar (Burma) are also opening up.
The Changing Global Politics
With the collapse of the USSR in 1991, there is a total change in the world political
scenario. The Communist/Socialist Block is in disarray and the capitalists led by USA and
Europe are ruling supreme. The power of USA/Europe was amply demonstrated against Iraq
in the Kuwait-Iraq dispute. The disintegration of USSR into CIS countries was followed by
the collapse of the Berlin Wall and the break-up of East Europe. Further, Czechoslovakia
broke up into two and Yugoslavia broke up into bits with in fighting still continuing. The only
silver lining was the merger of the East and West Germany, though the strains of this merger
will continue for quite some time.

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 It would be wrong to assume that Socialism and Communism are dead. These ideologies
are taking a new shape and will try to re-group. China is the best example of the new model.
Socialistic forces are coming back in the new form even in Russia and East Europe. North
Korea is quite steady with Chinese support.
The World Economic Blocks
Simultaneous to the breaking up of USSR and East Europe, Europe has been steadily
working towards a very powerful economic entity under the European Commission. British,
French and Germans who were not quite friendly earlier are now working together for a new
Power Block challenging the USA. The USA, in turn, has taken the leadership to form a new
Economic Block, named NAFTA combining USA, Canada and Mexico. Chile may be the
next member of NAFTA.
South Asia's response to Asian Tigers and ASEAN was the formation of SAARC
combining India, Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives and Bhutan.
Unfortunately, due to open conflict between India and Pakistan, this Economic Block is not
functioning effectively. India is now moving more towards ASEAN than SAARC.
One of the important events towards an integrated world economic community was the
formation of the World Trade Organisation (WTO) to replace GATT. Gradually, the trade
barriers are reducing and the ultimate dream of a global village may be a reality in the future.
The speed of globalisation is, however, rather slow due to an organized attempt by the
developed countries to exploit the developing countries by creating artificial trade barriers like
that in Agriculture.
India since Independence
In 1947, when we gained independence from the British, Singapore was a sleepy village
Port, compared to the thriving city of Calcutta. Today, Calcutta is one of the most backward
cities of the world, while Singapore is vying for the status of the best city in the world. How
did this magic happen in just over 60 years?
India used to control over 2.5% of world trade in 1947 and today, we control less than
0.8% while in 1991 we touched the lowest point of 0.4%. We blamed the British for whatever
was wrong before independence. It is time to analyse how we have made a mess of our
resource-rich country since independence.
The per capita income in India is one of the lowest in the world. If we search for countries
below us, it is, mainly, Pakistan, Bangladesh, Nepal, Bhutan, Vietnam and a few backward
countries in Africa, like Ethiopia. Even Indonesia and Sri Lanka are doing better. According
to World Bank Report 2003, the per capita income of India using the purchasing power parity
(PPP) method is US $ 2880, while that of USA is US $ 37500, Japan US $ 28620, Brazil US $
7480, China US $ 6000, Pakistan US $ 2060 and Nepal US $ 1420.
We boast of having the 3rd largest pool of technical manpower in the world. We claim that
we make almost everything in India. We are proud of our steel plants, petrochemical
complexes, fertilizer plants, etc. But, at the end of all that, our rate of growth in GDP has been
a dismal 3.5% p.a., till the new economic policy in 1991, known as the "Hindu Rate of
Growth" throughout the world. When adjusted for a population increase of 2.2% p.a., the per
capita income has increased by a mere 1.6% p.a.
We point out to the world that we have a 220 million middle class population with
reasonable purchasing power, but, at the same time, we forget to mention that we are sitting

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on top of a volcano with over 250 million people out of a total of 1000 million
below the poverty line.
The only period we could break the "Hindu Rate of Growth" was between 1983 and 1989,
under the leadership of a young Prime Minister, Shri Rajiv Gandhi. In this period, we
achieved a growth rate of 5.3%. We don't know whether it was due to the over-enthusiasm of
Shri Gandhi or due to the mismanagement of the country after his sad demise that we
suddenly found ourselves in a very serious international debt-trap in 1989-90. We were on the
verge of being declared bankrupt for not being able to honour our commitment of paying
interest and a portion of the huge borrowing of nearly $ 70 billion. At this stage, we became
panicky and tried for loans from organisations like the World Bank and the International
Monetary Fund. We even mortgaged part of our gold reserve to the Bank of England.
In June 1991, the Government announced that they would follow the policy of economic
liberalisation to tide over the payment crisis and also to gradually integrate the Indian
Economy with that of the world to achieve rapid rate of economic growth. What we do not
know is whether this sudden change of economic policy is based on the wisdom of our leaders
like the then Prime Minister Shri P.V Narasimha Rao and the then Finance Minister Dr.
Manmohan Singh or due to the pressure exerted by the World Bank and the IMF before
granting any further loan to tide over the payment crisis.
Whatever might be the motivation for the change, it has happened at last. If this had
happened twenty years earlier, then, we would have been a totally different country by now.
But, then, it is never too late. We have enough talent in the country to make up for the lost
time. This change in economic policy, in my view, is the best thing that has happened in our
country since independence. Though in every opportunity there is a threat, it is our
responsibility to cash on the opportunity and guard against the threat.
What does this Economic Liberalisation mean? In one single sentence it announces that
the "Licence Raj" is being eased out and the tax rates for import duty and direct and indirect
taxes are much lower than before. Earlier, the rule of the game was how to manoeuvre the
political system to ensure that you got a licence (be it manufacturing, export or import) for
your company and also how to debar another organisation, more efficient than yours, from
getting a licence.
All these were done in the name of "Socialistic Pattern of Society", with the objective of
equitable distribution of wealth and to develop indigenous know-how. To achieve our
declared objective, we nationalised our financial institutions like banks and insurance in the
sixties. We reserved core industries like coal, electricity, steel, and heavy engineering
industry, mining, petroleum, air-transport, etc. for public sector giants. We discouraged import
to support local industries who managed to sell all that they produced with obsolete
technology. Our research laboratories were busy in reinventing whatever the rest of the world
already knew. In short, we operated in an environment free from competition. Supply was
generally less than demand. Our organisations were highly over-manned, using technology
already discarded by the developed world and producing inferior quality products by
international standards. For a specific technology, public sector was generally over-manned by
4 to 10 times and we justified such over-manning in the name of providing jobs to the
unemployed. In this overprotected environment, even multinationals used obsolete technology
with a manning that was 2 to 3 times in excess of requirement. When we have 4 men to do one
man's job, do you get 25% out of each? You are lucky if you can obtain 10% from each that is
40% in all. Should we call such 10% utilisation as employment? Is it not better to provide

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unemployment benefits instead? Along with the men, the capital remains under-utilised. If the
capital invested does not roll fast enough, how can we generate surplus to speed up economic
development? In the name of generating a few extra employments, are we not throttling
creation of millions of jobs? If you ask me to pinpoint a single issue that is mainly responsible
for our present day plight, it is over-manning of our organisations. If we cannot create
adequate wealth, what shall we distribute to the ever-increasing population?
Progress since Declaration of New Economic Policy in June 1991
Over 17 years have passed since we started the liberalisation process. It is time to take
stock of the situation. In the first year of economic restructuring, our growth rate in Gross
Domestic Products (GDP) dropped to 0.8%. In the second and third year, the growth rate
increased to 5.3%. Since then we achieved over 6.0% per annum, with the inflation rate going
down to 5-6% p.a. in spite of the economic debacle in East and South-East Asia we have
grown at the rate of 5.5% in 1998-99. We are now steadily growing @ 8-9% per annum. We
can now visualise that India will be a major economic force in the world in about 5 to 10 years
with a compounded growth ratre of over 8% p.a. This is what the future holds for us. This is
the opportunity ahead of
us. Our dream of becoming a major world power is round the corner.
You must have noted that the multi-nationals are expanding rapidly in India. Their
profitability and share prices are soaring. These organisations have succeeded in the face of
international competition. They will certainly prosper in India. Does this mean the multi-
nationals will stampede Indian organisations? Though some of the industrialists think so, now
that we have been thrown in deep water, we shall swim. Some of us who have gone abroad
have done so well facing international competition. In the USA, Indians are the highest
earning ethnic group - even higher than the Jews. If we do not turn out as champion
swimmers, then, we are heading for a disaster. Multinationals are here to capture the Indian
market and not necessarily to export from India. It is the Indian companies, which will have to
take on the multinationals on the Indian soil and then become Indian multinationals to
compete globally.
That this is possible has been proved by companies like Tata Steel, Tata Motors, RIL,
Grasim, Bajaj, ITC, TCS, Infosys, Satyam, Dabur, Dr Reddy's Lab, Ranbaxy, etc. Four Indian
Infotech companies namely Infosys, Satyam, TCS & Wipro currently have over 3 lakh
employees. Tata Steels acquisition of Corus in England and Tata Motors acquisition of Jaguar
& Rover were big news in the world. The country's export as a whole is going up by over 20%
p.a. and the gap in the trade balance is manageable so far. More and more Foreign Financial
Institutions (FFIs) are investing in India, thereby showing their confidence in us. The Foreign
Direct Investment (FDI) is growing steadily having crossed US $ 20 billion, from less than US
$ 2 million in 1991. The foreign exchange reserve on 31st March 2008 is US $ 309.7 billion
while the external debt is US $ 221.2 billion, i.e. net surplus of US $ 88.5 billion. Even the
Public Sector is doing much better in the face of competition and under the threat of
privatisation. Could Indian Airlines think in 1991 that they would have to face competition
from such a large number of private airline operators like Jet, Kingfisher, Deccan, Indigo,
Spice, etc.? We find Indian Airlines' service to be much better today than in the past. Public
Sector Navaratnas like SAIL, NTPC, BHEL, ONGC, Indian Oil etc. are a major force to
reckon with in the Indian economy. The services of Nationalized Banks like SBI, PNB, Indian
Bank, Canara Bank, etc.,has improved beyond recognition.

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Management Challenges Ahead
All Indian companies must form their competitive strategy today. Earlier, they had to take
care of all the restrictions operating in the Indian economy. All of a sudden, such restrictions
have vanished and we have unlimited choice. The transition from managing restrictions to
managing choice is a difficult one, but it opens up enormous possibilities in an unlimited
global market. An organisation should not try to do everything under one roof. It should only
produce that much where it has a competitive strength (core competence) with respect to
technology, quality and cost. All other components, raw material and services should then be
obtained from dependable vendors, who need not be restricted within national boundaries.
The basic dictum is, "do only what you can do the best" and then target the global market
place. There is considerable similarity between "competitive strategy" and "war strategy".
While many of the current big players in the business scenario will retreat to the background,
there will be a number of new players coming to the forefront in the mergers and acquisitions
that are on the way.
One of the major difficulties faced by an existing company while restructuring is the
disposal of surplus labour. In India, we do not have a social security net. Hence, we should not
terminate their services without adequate compensation. We should design generous
Voluntary Retirement Scheme (VRS), which should be attractive enough to be opted for. The
companies offering such plans have nothing to lose, since it will be much cheaper than to
carry the surplus on the rolls. The Government has created a National Renewal Fund for
voluntary separation in the Public Sector. Also there are reasons to believe that those opting
for retirement will be busy thereafter and will be much better of materially than while in
service. These retirees will also provide the necessary skilled workforce for speeding up the
liberalisation process.
In the present context, an organisation has to be restructured to be more flat and lean so
that the numbers of layers are reduced. Layers reduce efficiency and, thus, there is a
requirement for light overhead structure. The organization must shift the role of middle level
managers, who should function more as trainers, advisers and facilitators than supervisors to
bring about the desired change in the organization. Quality consciousness must be brought
into the organization to practice Total Quality Management (TQM). To economise on working
capital requirement, the organisation has to pay more attention towards important suppliers
and customers. If the suppliers are motivated to supply zero defect items at a specified time,
the organisation will have near zero inventories. This will free the capital, which was utilised
for holding and carrying inventory, for further investment. This approach will allow timely
completion of projects without cost overrun. The organisation must focus its attention on
perfection in its core activity for rapid growth. Other jobs should be segregated from the core
activity and privatised. For example, a steel plant must focus its attention on production of
steel and not in mining of iron ore and coal. The supplier whose core activity would be mining
of iron ore or coal can do this activity. This would result in an efficient organisation.
Extensive use of Information Technology is a must in today's organisations. Information
Technology has made revolutionary changes in the way we manage an organisation. In an
organisation, Information Technology is what the brain and nervous system is to human body.
The activities of most organisations cover multiple locations and in the context of
globalisation can even cover the world. Computer and communication connect the whole
organisation together, providing information of the whole or of a part through the tapping of a
button of the VDU screen. The model visualised is that of a paperless office that‟s all

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transactions are recorded from terminals with or without independent processing power. The
essential data that need to be merged with other data are then transmitted centrally through a
communication network for conversion into information, which can then be retrieved, from
any of the authorised terminals for timely decisions. Thus, the decision systems of integrated
IT-based organisations of today are almost independent of time and geographic separation. An
organisation of today can react instantly to the changes in the environment or within the
organisation. This is an enormous power which we did not enjoy earlier and is an absolutely
necessary ingredient to face stiff competition in the local market or globally. The organisation
of today will not survive without proper and integrated use of Information Technology.
Internet, E-Commerce and ERP are the three powerful IT tools for efficient management.
Dangers Associated with the New Economic Policy since 1991 with Market Economy &
Globalization in Focus
Foundation of Market Economy
Human behaviour and motivation is guided by the fulfilment of human need as
propounded by Freud, Maslow, McGregor, Mintzberg and others. The primary human need is
defined as material need with the non-material dimension playing a relatively minor role.
Human Resource Management in organisations are based on four fundamental hypothesis.
1. Organisations must survive and flourish under free competition resulting in only a few
dominant organisations in each segment of industry. However, the regulatory
authorities should ensure avoidance of monopolies. This approach leads to
concentration on core competence using latest technologies and massive economy of
scale requiring minimal human intervention in the manufacturing sector. The stress is
on quality, efficiency and productivity, the keystones of material prosperity and higher
standard of living.
2. Such material prosperity invariably leads to high level of consumption of energy
generated from organic fuels (Figure 1) leading to global warming through the
generation of unabsorbed green house gases. With rapid development in Asia, the
consumption of fossil fuel is increasing alarmingly. After USA, China produces the 2nd
largest amount of carbon dioxide followed by India in the 3 rd position. If China and
India, with 38% population of the world, consume the same amount of per capita
energy as that of USA, the world will certainly head for total destruction. In the
Koyoto Conference, USA refused to sign the agreement on reduction of green house
gases.
3. The focus of business and industry is to serve the customers to their fullest satisfaction
at the lowest possible price leading to a higher share of market and a high rate of return
on the shareholders‟ capital. Market led economy and consumerism are the main
forces guiding the economy.
4. Organisations are free to hire and fire employees based on the behaviour of the market
and technological change. However, a strong social security net provided by the State
looks after the interests of the unemployed workmen.
Negative Aspects of Market Economy
A strong critic of consumerism, D C Korten writes in his book When Corporations Rule
the World published by Berrett-Koehler in 1995: „An active propaganda machinery controlled
by the world‟s largest corporations constantly reassures us that consumerism is the path to
happiness, government restraint of market excess is the cause of our distress, and economic

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globalization is both a historical inevitability and a boon to the human species. In fact, these
are all myths propagated to justify profligate greed and mask the extent to which the global
transformation of human institutions is a consequence of the sophisticated, well-funded, and
international interventions of a small elite whose money enables them to live in a world of
illusion apart from the rest of humanity. These forces have transformed once beneficial
corporations and financial institutions into instruments of a market tyranny that is extending
its reach across the planet like a cancer, colonizing ever more of the planet‟s living spaces,
destroying livelihoods, displacing people, rendering democratic institutions impotent, and
feeding on life in an insatiable quest for money‟. While we need not agree to this view, we
should not ignore the issues raised by Korten. Multinationals and globalisation is a reality and
a help in the process of rapid development but then the negative aspects need to be
safeguarded.
Environmental Degradation
The year 1998 is the hottest year on record in this world. The fourteen hottest years on
record, have occurred since 1980. Global warming causes extreme weather. El Nino of 1997
was the most severe in history. In 1998 and 1999, 56 countries have experienced catastrophic
floods (China, Bangladesh, etc.,) and 45 have experienced severe drought. Reported weather
disasters show exponential increase in major events. Antarctica is 2.5 degrees Celsius warmer
than in mid-1940s. The Larsen Ice Shelf started breaking up six years ago. In October 1998, a
7125 square kilometer block separated from the Ronne Ice Shelf. If the west Antarctic Ice
Sheet breaks off, sea levels could rise five meters within a decade. Global trend in sea level
rise is given in Figure 2. Alpine glaciers have declined by 50% by the last century. Alaska,
Siberia and North Western Canada have warmed by 3 degrees Celsius in the same period.
While the average temperature on the Earth‟s surface had risen by about 0.6 degree Celsius
between 1880 and 1980, the increase has rocketed to 0.8 degree Celsius in the next twenty
years (Figure 3).
Nearer home, in the Indian sub-continent, two-thirds of Bangladesh was under water for
more than a month in 1998. Only recently, Orissa faced a devastating cyclone killing more
than 10,000 people. Not too far away, Vietnam faced two severe floods in 1999. In India, due
to population pressure and rapid urbanisation/industrialisation, the forest area has shrunk to an
alarming level of only 11% of the total land while 20% is the minimum requirement for
ecological balance. Automobile pollution is suffocating all major cities with rapid increase in
related diseases. Figure 4 indicates the exponentially increasing major weather disasters in the
world during 1900 to 1990.
Maldistribution of Wealth
An environment of unbridled competition results in the survival of the fittest with
consequent wide disparity of income. The richest 20% of the world‟s population receives
82.7% of the total world income, while the poorest 20% receives only 1.4% (Figure 5). Global
economic growth rarely filters down. Increased automation requires fewer people in the
production process and the argument is that such increased productivity opens up large-scale
employment in the service sector. The validity of this logic needs to be probed.
In India, there are 250 million people in the middle-class and above which is nearly equal to
the total population of USA. Therefore, all the multinational companies think that India is a
very big market. Little do they realise that out of a total population of 1 billion, 270 million

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are below the poverty line and cannot afford two square meals a day. We are actually sitting
on the top of a volcano, which could erupt any time.
The Path Ahead for India – Blending the Best of Globalization with Swadeshi Competitive
Advantage
A Holistic Approach
The developed world has taught us how to organise efficiently using technological
innovations like Information Technology and biotechnology in a market economy. Indian
tradition however advocates a holistic approach with respect to human happiness through a
balanced view on environmental protection and distribution of purchasing power to avoid the
disaster implied in the traditional global model. We should certainly work towards higher
standard of living but with a drastic reduction of people living below the poverty line while
maintaining our ecological balance. Therefore, we should not try to copy either a American or
European or even Chinese Model for economic development.
Quality of Life
United Nations commissioned Late Prof. Mahbub ul Haq of Pakistan and Prof. Amartya
Sen to find an index that will reflect the relative quality of life amongst Nations.
These two economists were of the opinion that just growth rate do not necessarily lead to
an improved quality of life. They developed a Human Development Index (HDI) for
measuring quality of life by combining per capita income with the life expectancy and
knowledge base (with heavy weightage on literacy) for each nation. In terms of HDI of 2005,
India ranked 128th in a group of around 175 Nations, while China was 81st, Sri Lanka 99th and
Indonesia 107th. Only countries like Pakistan, Bangladesh, Nepal, Bhutan, etc., were below
that of India. The life expectancy at birth in India is 63.7 years, while in Australia it is 80.9
years, in China 72.5 years, in Sri Lanka 71.6 years and in Indonesia 69.7 years. The UNDP
report 2007/2008 on literacy indicates that 39% of the population in India is illiterate, while
the Literacy Rate for Cuba is 99.8%, Australia & Canada 99%, Thailand 96.2%, Vietnam
90.3% and Myanmar 89.9%. Are we really doing as well as we claim to be? Should we not
search for an Indian Model for the development of India?
Globally Competitive, Eco-friendly, Sustainable, Employment Oriented & Less Capital Intensive
„Indian Model‟ for the Development of India
A copy of the traditional global model cannot be the solution for an over populated
country like India. Following such a global model we are over obsessed with the organized
sector, employing only 9% of our 320 million of labour force. Most of the labour laws in this
country protect this 9% work force accounting for hardly 29 million workers with little
attention to the balance 91% or about 300 million workers. The labour unions of the organised
sector have the power to paralyse the entire economy and thereby getting away with a lion's
share of benefits. The organized sector of the pre Economic Liberalization era in India was
totally inefficient by virtue of protection provided in the name of attaining self-sufficiency and
by the socialistic pattern of society through a regime of „License Raj‟. With business process
reengineering, including the extensive use of Information Technology, the surplus labour in
the existing organisations are increasing, requiring voluntary separation for even higher
numbers. Though a large number of new companies are coming into existence following
economic liberalisation, these new organisations are highly automated requiring very few
employees. The organised sector of business and industry is, therefore, unlikely to provide

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significantly higher employment opportunities in the near future. The prospect apparently lies
on the nurturing of the unorganised sector and the service sector for improving the lot of
nearly 91% or about 300 million of our total work force. In this respect India has a tremendous
advantage compared to most other countries in the world in rapidly improving the future of
our entire working population through a growth model that is labour intensive, eco-friendly,
export oriented and based on our competitive advantage of intellectual ability, bio-diversity,
unmatched skills and service orientation at a significantly lower cost. We, therefore, need to
concentrate on the following sectors of our economy where we have the potential to be the
global leader due to our competitive advantage. All these sectors are eco-friendly, sustainable,
employment-oriented and relatively less energy and capital intensive.

Agriculture and Agro-based Industries

Of the 320 million work force (which is roughly 1/3rd of the total population) of India,
170 million (about 53%) are employed in agriculture. India ranks 2nd in the world in terms of
arable land and also in irrigated area. It ranks 1st in the world with respect to production of
milk and milk products, sugar and tea, and 2nd in terms of rice, wheat, groundnut and
tobacco, and 3rd in cotton. This country is blessed by nature with plenty of sunshine, rainfall
and a moderate climate resulting in three and sometimes four crops per year in the irrigated
land with unmatched bio-diversity.
However, the yield per crop is only 30% of world standard, indicating scope for 3 to 4 fold
increase in output through the timely, proper and extensive use of conserved monsoon water,
high breed seeds, bio-friendly insecticides and fertilizers. Fortunately, extensive use of labour
saving productivity tools like tractors and harvesters are unlikely in India for quite sometime
to come, because of the pattern of landholding (in numerous distributed plots). Even at the
current level of productivity, our agricultural produce is one of the cheapest in the world and,
as expected, a significant part of our 16% per annum export growth in the last ten years was
derived from cotton and silk textiles, jute products, tea, coffee, rice, spices, herbal drugs,
fruits, veget- ables vegetables, floriculture, pisciculture, oilseeds/oilcakes, tobacco based
products, etc. Very few countries in the world possess this fundamental strength of bio-
diversity. We can not only protect employment of over 50% of our entire working population
in this unorganised sector but also improve their real earnings through increased productivity,
resulting in a booming economy with strong domestic-cum-export demand. With policy level
support to water resource management, and timely availability of high breed seeds, bio-
friendly insecticides and fertilizers, it is possible to double our agricultural production in the
next 6/7 years to become the largest exporter of agriculture and agro-based products in the
world. This will of course require strengthening of transportation and storage infrastructure,
and setting up of world class agro-based industries.
In this area we need to learn from Dr. V. Kurien, the founder of Khaira District Co-
operative Milk Society and Amul brand. In the 40‟s, 50‟s and 60‟s India was a milk-starved
country. We used to get out milk and milk products from Australia, New Zealand, Holland
and Denmark. Dr. Kurien organized direct collection of milk from the farmers with cash
payment and then processed the milk so collected at a moder automated plant at Anand to
produce varieties of milk and milk products untouched by hand meeting international
standards. The products so derived were marketed all over India using modern concepts of
marketing management. He also taught the farmers the technique of artificial insemination and
immunization of the calves so produced to increase yield of milk. He has then spread the

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movement all over the country in the name of „Operation Flood‟ and „Mother Dairy‟ under the
banner of National Dairy Development Board (NDDB). Thus, through a co-operative
movement a milk short country has been converted in to a milk surplus country with the
number one rank in the world. He has shown that we need not displace the farmers from their
assets to produce world-class agro-products in highly automated plants and then compete all
over the country and the world using modern marketing concepts. We cannot afford to
displace the farmers from their land and other assets till other sectors are ready to absorb
them. The „e-Choupal Model‟ of ITC is another attempt to procure farm products directly
from the villages and then processing them in the most modern plants for marketing all over
India and the world.
Tourism
Tourism is a major global industry and is manpower intensive. Although India has a 5000-
year-old civilization, 6000 miles of beautiful coast line, and the tallest mountain range in the
world. In the year 2000, India attracted only 2.29 million (0.39%) of world tourists. India's
tourist traffic is only 30% of that of Singapore or Malayasia. It should not be difficult to
increase our tourist traffic 10 folds in the next 6/7 years. All that we need to do is to select
about 100 tourist spots in say ten clusters, modernise the nearest airports, improve the road
links from the airport and between tourist spots, appoint authorities for a planned development
of 1-star to 5-star hotels, shopping centres, telecommunication infrastructure and clean,
pollution free environment around the tourist spots. This would generate the much-needed
foreign exchange and will provide large-scale employment in hotel services, transport, shops,
guides etc. Improved infrastructure will also lead to an exponential increase in the local tourist
traffic.

Information Technology
IT & IT enabled services (ITes) is the greatest success story of combining our skills with
intellectual capabilities. In the early eighties, we started with body-shopping. We have now
reached a stage when Bangalore is rapidly emerging as a research and development hub of the
world. Venture Capitalists in the USA are now refusing to fund any project unless they start
their R&D set-up in India. IT & ITes are emerging as large employment generators in India.
The total employment has crossed 1.6 million in fiscal 2007 and is projected to grow @25%
per annum. Our export in this area has now reached US$ 23.6 billion in fiscal 2006 and is
likely to double in the next 3 years. With rapid improvement of wireless communication and
mobile technology, this industry has the potential to be a global leader in the next decade. It is
now widely believed that Silicon Valley in the USA would not have come up if there were no
IITs in India. Such is the power of the Indian brain. Our IT professionals are in great demand
all over the world.
Gems, Jewellery and Handicrafts:
Gems, Jewellery and Handicrafts are another high skill labour intensive area where India
is globally competitive. These items account for over 30% of our total exports and their
growth potential is high. Here again, India combines its advantage with respect to skill and
cost. Amongst the corporates, Titan Industries has global aspiration in this area and has
launched gold and diamond studded jewellery watches in Europe with remarkable success.
Indian handicrafts are admired all over the world.

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Entertainment Industries
This is yet another area that meets our five criteria of being globally competitive, eco-
friendly, employment oriented, sustainable and relatively less capital intensive. Bollywood is
now larger than Hollywood. The demand of Indian films is now increasing in many countries
including China and Russia. This industry is also responsible for the rapid development in IT
enabled Multimedia and Animation Services. However much we may criticise the films made
in Mumbai, their export potential is high. Satellite Communication has also increased the
domestic market and export potential of the entertainment industry.
Pharmaceutical & Healthcare
After IT we are destined to witness another revolution in the skill and knowledge-based
pharmaceutical industry. India has the potential to be a world leader in this area. With the
advent of Intellectual Property Rights (IPR) era in January 2005, India has changed her patent
laws from process to product regime. This is leading to rapid exploitation of our human
resource capabilities in Pharma Research & Development. This global concentration will be
not only in the area of Chemical Molecules but also in the field of Biotechnology and Herbal
Drugs. India will emerge as a global hub for Clinical Research. India will also attract
investments in Contract Research. Opening up of the world market along with the high
potential but dormant rural market will provide enormous growth opportunities for Pharma
Industry.
The demand for healthcare services is growing exponentially. Currently this industry is
meeting local needs as well as demand from the neighbouring countries. Modern hospitals &
diagnostic centres in Mumbai are full of patients from the Middle East and those in Calcutta
from Bangladesh & Bhutan. With some organized effort in improving facilities it should be
possible to attract patients from all over the world to India for treatment because of our
knowledge, skill and cost advantage.

Higher Education:
In higher education, India hardly attracts foreign students, but USA, UK & Australia
are aggressively marketing their higher education courses to Indian students at a very high
cost in hard currency. Our IITs, IIMs, NITs, leading Universities and top Private Institutions
can compete with the rest of the world. By increasing the capacities of these leading
educational organisations, combined with aggressive marketing in Asia and Africa, it should
be possible to earn considerable goodwill and foreign exchange for the country by charging
only 30% of the fees in similar institutions in Europe or North America.
The demography of the developed world is changing rapidly. With the increase in life
expectancy, the number of old people is growing rapidly. On the other hand, the birthrate has
reduced sharply. Consequently, the number of retired people will soon be outnumbering the
population in active service. Moreover the senior citizens will require considerable attention
for their welfare and medical attention. Thus they will have no option but to open their doors
to qualified professionals of all categories for migration to their country to run their economy
and also to look after the increasing population of senior citizens. Already Indian managers,
engineers, technicians, doctors, nurses, teachers, social workers, etc., are in high demand in
the developed world. This opportunity will go on increasing. We should, therefore, impart
appropriate skills and knowledge to our ever-increasing workforce for gainful employment in
India and abroad. After all, we are one of the youngest nations in the world with exceptional
intellectual, skill and service capabilities. Our higher education should not be found napping

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in availing this golden opportunity. Given adequate training facilities, we have absolutely no
fear of brain drain or lack of skilled workforce in this country.
Fossil Fuel vs. Alternative Energy
Since Global warming is primarily due to greenhouse gasses emanating from burning of
fossil fuels, namely, petroleum crude and coal, it is of paramount importance that we
thoroughly explore the alternative energy routes that either do not add to global warming or
contribute insignificant amount of greenhouse gasses. These alternative energy sources
include nuclear fission and fusion, hydroelectric, solar, wind, biomass, geo-thermal, etc. It is
unlikely that such non-conventional energy sources will be able to replace fossil fuel by more
than 15%. However, a policy of lower energy consumption along with full exploitation of
alternative energy sources may save the planet from a major disaster.
The highest potential amongst alternative energy sources is that of nuclear fusion. But
unfortunately, the temperature arising out of fusion is uncontrollable and hence commercial
exploitation of this source is quite a distance away from now, may be 30 to 50 years. Nuclear
fission, on the other hand, is highly capital intensive and the hazards associated with leakage
of radioactive material and disposal of burnt fuel makes it impractical for large-scale
replacement of fossil fuel. Solar and wind, on the other hand, are the cleanest form of all
alternative energy sources, but intermittent availability and diluted form make them difficult
to harness in a large scale. Hydroelectric power though capital intensive provides clean energy
at a reasonable operating cost. There are, however, problems associated in constructing large
dams and the availability of water in the dams depends on the vagaries of nature. While most
of the energy potential of the Indian rivers has been exploited to the limit, the river
Brahmaputra is yet to be harnessed, probably due to its unmanageable force during certain
periods in the year. The scope of biomass and geo-thermal energy appears to be limited. Bio-
diesel may be able to reduce the consumption of petro-diesel to a certain extent.
In the current model for energy guzzling 8-10% growth of GDP, India is heavily
dependent on fossil fuel namely crude oil and coal. The rapid increase in the consumption of
fossil fuel has made us the 3rd largest CO2 emitting country, immediately after USA and
China. While we are self-sufficient in coal, we still have to import high-grade coal for
metallurgical purposes due to the high sulphur and ash content of Indian coal. On the other
hand, in the case of crude oil India produces only 25% of its requirement, importing 75%
mostly from Oil Producing & Exporting Countries (OPEC). The consumption of crude oil is
increasing exponentially. In 2005-2006, India imported 99.4 million tones of crude oil for US
$ 38.77 billion and 11.67 million tonnes of petroleum products for US $ 5.86 billion,
accounting for over 40% of India‟s total imports. In view of the exponentially increasing
crude oil consumption of the emerging and developing countries, the international price of
crude oil increased from US $ 27 per barrel in 2003 to US $ 145 per barrel in March 2008
resulting in alarming inflation and consequential slowdown of world economy. Thus we are at
the mercy of OPEC for the pricing and supply of crude oil. It is interesting to note that while
alternative energy may marginally reduce the requirement of coal for the generation of
electricity, we are totally dependent on crude oil for the purpose of transportation (by road,
rail, sea and air), petrochemicals (plastics, polyesters, emulsifiers etc.) and chemical fertilizers
such as urea). Should we not be careful about the consumption of fossil fuel to avoid natural
disaster due to global warming and pollution, and also economic disaster due to inflation?

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Precision Equipment, etc.
This is an area we have badly ignored so far. This group may include manufacture of
micro-processor chips, computers – desktops, laptops and printers; communication equipment
– switches, routers, mobiles, etc.; robotics, process control equipment, numerically controlled
machine tools, automated diagnostic equipment, miniaturized audio and video equipment,
modern toys and video games, etc. These industries do not consume too much of energy but
requires high investment in developing human skills and innovation. Unfortunately, due to our
over emphasis on heavy industries, other countries like Japan, Taiwan, South Korea, Europe
& USA have already cashed on such global opportunities. However, even now it may not be
too late to enter these areas with due policy support from the government. After all, almost all
such industries require a high degree of computer software skills, in which we have a global
competitive edge. We also need to workout a strategy for meeting global competition in these
areas.
Conclusion
With a population, i.e., four times that of USA and a surface area of 1/3rd that of USA, it is
sheer madness for India to follow the same type of market economy as that of USA, Europe,
Russia or even China. This does not mean that we shall live in isolation in this globalised
world. We therefore must search for an Indian Model for the development of our country, with
a continuous history of over 4500 years.
It is alarming to note that India is rapidly becoming a global hub for energy guzzling dirty
manufacture in the areas of chemicals and metals in different forms including castings and
forgings. Moreover, there is a strong policy level support to automobiles of all forms
particularly cars and two wheelers, and to domestic appliances like air-conditioners, micro-
wave ovens, geysers, washing machines, etc., leading to high consumption of energy derived
primarily from fossil fuels of petroleum crude and coal. Such unbridled growth of energy
intensive and polluting industries in a densely populated country like India is ruining our
ecology to a point of no return. In the year 2005-06, our imports amounted to US$ 140 billion,
with exports at US$ 100 billion leading to a trade gap of US$ 40 billion. Though this gap has
been more than made up by invisibles and foreign investments, we are quite vulnerable due to
sharp increase in the gap due to increasing volume and value of crude imports. We need not
ban such energy and capital guzzling industries; instead we should discourage their rapid
growth by imposing heavy indirect taxation and high cost of borrowings to acquire such
assets, to curb domestic consumption. We should also enforce strict anti-pollution laws. We
should remember that the development of alternative energy sources to replace fossil fuels
might not happen in the foreseeable future. If India and China with a combined population of
nearly 38% of that of the world try to achieve a per-capita fossil fuel based energy
consumption equal to that of USA, Europe, and Japan, it will be impossible to save this planet
from a total disaster.
While the organized sectors are the major beneficiaries of such unbridled energy guzzling
growth, the unorganized sectors are hardly benefiting from the trickle down effect. We should,
therefore, seriously look into our economic growth model. A strong emphasis on Agriculture
and Agro-based Industries, Tourism, Information Technology, Bio-Technology,
Pharmaceuticals, Healthcare, Gems, Jewellery, Handicrafts, Entertainment, Higher Education,
Alternative Energy and Precision Equipment, etc., will not only earn valuable foreign
exchange, but will create new opportunities for providing gainful employment to nearly 300
million (90%) of our workforce mostly in the unorganised sector. We should straightaway

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create a policy environment to encash on such global opportunities provided by these globally
competitive, eco-friendly, sustainable, employment-oriented and less capital intensive sectors.
This model for growth will allow a strong economy with a large demand base, negligible
unemployment and a positive balance of payment without disturbing the ecological balance of
our over-populated country.
To further improve our quality of life we need to concentrate on better management of the
public systems and infrastructures like Communication, Mass Transportation, Basic Health
Services, Primary and Adult Education, Alternative Energy and Ecological Balance.
Preserving monsoon water in the underground aquifers should be a top priority. We must
protect our natural environment through a social movement and strict enforcement of law. We
need to inculcate a value system in the society at large with emphasis on ethics and human
values like minimal corruption and high work ethos through intrinsic motivation.
The greatest Swadeshi assets we have are our human resources with world-class intellect,
skills and service orientation together with the bio-diversity of our tropical country. We are
also the youngest nation in the world. The Indian Model, therefore, combines our Swadeshi
strengths with the opportunities provided by globalization for our march towards total
employment without destroying our ecology leading to better quality of life. Two new
technologies, namely Information Technology and Biotechnology will help us to achieve our
goal. Should we not change our economic policy accordingly?
The world-renowned management guru Prof. Peter F. Drucker in an article in 1989
pointed out that capitalism in its present form would not survive. He was certain that a post-
capitalistic era is round the corner. He believed that such a post-capitalistic model will emerge
from the East – may be from China or India. The Indian Model highlighted in this article is an
attempt in that direction combining rapid economic development with improved quality of life
through better distribution of wealth without ruining the ecological balance.
References
1. Chowdhury, Subir, Blending the Bests of the East and the West in Management Education,
Excel Books, New Delhi, 2002, pp 9-29, 146-174.
2. Bolman, Lee G., Deal Terrence E., Reframing Organisations, 2nd edition, Jossey-Bass Publishers,
San Francisco, 1997, pp 101-120
3. Korten, D.C., When Corporations Rule the World, Berrett-Koehler, San Francisco, 1995.
4. Robert, Ayres, “Environment: Resource & Responsibility”, Proceedings of the Annual Conference
of European Foundation for Management Development, Edinburgh, 1999.
5. Statistical Outline of India, 1998-99, TATA Services Limited, Dept. of Econ. & Stat., Mumbai,
2002.
6. Chakraborty, S.K., Editor, Human Values for Managers, Wheeler Pub., New Delhi, 1995.
7. Chakraborty S.K. Wishdom Leadership: Dialogues & Reflections, Wheeler Pub., New Delhi, 1999.
8. Hand Book of Statistics of the Indian Economy 2006, Reserve Bank of India, Mumbai.

II. Business History with Special Reference to India

History has many branches - political, economic, social, etc., arts, sculpture, architecture,
of science and technology, religion and philosophy and is, growing. The latest is Business
History which is a new genere development by Calder of United State appropriately as a US
President had observed “The Business of United State is Business”

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 This discipline has branched off based on divisions indicated below. Though histories for
different companies and organisatrions have been written, Calder set up a different yardstick
and started a new school.
An approach to this new discipline has been attempted as given below:
I Approach and Debates
1. Business History & History
2. Economic Theory and Business History
3. Business History and Economic Development
4. Business History and Management Studies
5. The Historical Alternative Approach
6. Globalisation
II Forms of Business Organization
7. Big Business
8. Family Business
9. Industrial Districts and Regional Cluster
10. Business Groups and Inter-firm Network
11. Cartels
12. Business Interest Networks
III Functions of Enterprise
13. Banking and Finance
14. Technology and Innovation
15. Design and Engineering
16. Marketing and Distribution
17. The Management of Labour and Human Resources
18. Accounting, Information and Communication Systems
19. Corporate Governance
IV Enterprise and Society
20. Entrepreneurship
21. Business and State
22. Skill Formation and Training
23. Business Education
24. Business Culture
(The Oxford Handbook of Business - Geoffrey Jones & Jonattan Zaitlinca)

Business historians study the total historical evaluation of Business systems,

entrepreneurs, and firms as well as their interaction with their political economic and social
environments. They employ a range of qualitative and quantitative methodologies; all sharing
a belief in the importance of understanding change over time. “History matters” and path
adopted is important to note and must be emphasized. Alfred D. Chandler Jr. was the pioneer
in Business History. Though he started writing about 1950, the subject had been studied
fragmentarily even earlier. Chandler‟s research of the large business enterprises firstly
indicated new organisation, structure, systems and new forms of management, which
influenced the stability, and growth of large enterprises and companies and such issues over
three countries USA, UK and Japan. He argued that a three-pronged strategy-covering

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production; distribution and management would ensure success. Modern Business history
have since then moved and become much larger covering many other aspects like law,
transparency, human resources, supply chain and financial accounting, etc., which have led to
business success besides technology and innovation. To Chanderlian paradigm, mass
production, mass distribution, corporate R&D and governance and other issues like image
building, importance of business in state and its economics have all been added thorough
business history analysis. Besides, time itself has added to the issues which have contributed
to analysis and concerns about environment, politics, outsourcing and externalisation; to
sponsored research for achieving economies leading to globalisation and extension, have led
further growth and consolidation; the recent importance that has been given to “core” and
sticking to “organic” growth without extensive diversification to avoid market fluctuations
and assuming the leadership position amongst the first “three”. These issues have further
influenced corporate decisions and planning cycles, besides the concept of “the bottom of
pyramid”. Prahalad and indicated by Hummel, as also Peter Drucker‟s decision-making
approach, which have changed the concepts as accepted earlier.
Business has also stressed the multidisciplinary approach and its importance in
contributing positively to business growth and its capacity for making a positive impact. All
these are included under Section I. Section II stresses on forms and its development aspects.
Section III stressed the various functions of the enterprise and concludes that “blinkered
vision” does not usually maximise contribution. In Chapter III is the eternal question of
choosing between Generalists or Specialist concepts discussed and argue that a judicial
mixture is the answer. Section IV comments on the role of business in the society and how this
issue leads to optimisation.
Business history also concentrates on personnel “actors” who have played an important
role in its functioning. This was made possible by including “verbal” history as an integral
part of any study as also an intense study of biography or better still autobiography of the
period of the country in question. The impact of gender in the process has also been
questioned and analysed as also the different countries under different phases of development.
Dynamics of change is yet another area of investigation Stability, sustainability, internal
and external situation, management of change, sociologically and technologically, in keeping
with the ethos prevailing are yet other important aspects which merit investigation.
In this perspective, the business history of the world, if studied critically, would certainly
indicate the regional influences and socio-political trends that affected the developmental
history of business in that region. If the general tendency at the macro level is to be inferred,
all over the world, the traders were the originators of business and the regional specialities
aided the growth of trade irrespective of distance and hardships in economic and monetary
terms faced by the traders. In the ancient world, trade between the lost civilizations, the
Sumer, the Babylonians, the ancient Turkey have been well recorded. Linen, artefacts,
precious metals, spices and fragences were all traded mostly from India against gold mostly or
any other article of choice. The land route was adopted but supplemented by sea route, which
proved to be more economical though at increased risk. In the Indian context, trade as a
profession was accorded great importance by the very recognition of the “Vaisya Varna”
among “Chatur Varna”and a group of people were specially trained to be in business, both for
the domestic market and/or for export or import. The literature or epics of that period as also
the records left by the foreign traders, establish the existence of rich and varied market place
where trade was carried out either by barter or on monetary terms against valuables or metals,

222
as the case may be. No wonder that some social scientists have identified India as “a nation of
peddlers” as the British, which was identified as a nation of shopkeepers both in the
derogatory sense. Fortunately it was not so and was very important activity.
Be that as it may, Indians were proud of their ability to trade, risk taking, moneymaking in
drawing up agreement and their contribution to national or regional prosperity. The prosperity
of India during the Hindu kingdom of the Guptas was well-recorded and known world over in
Europe and Middle East and in China, which mattered then. India was the land of “gold, milk
and honey” and as Will Durant once commented, „India is the starting point and sustainer of
all human development both spiritual and material”. Every nation of that time wanted to
establish trade links with India for spice and fine textile, gems, valuable artifacts and/or with
China for its silk and other achievements. Trade between India and China first by the silk
route and also by sea route was in existence both in the material sphere and in the spiritual
sphere with the spread of Buddhism.
As indicated, both China and India has developed specialities in trade and had excelled the
then existing civilizations in wealth. It has been argued that China and India went neck to neck
in GDP values from the BC era to 13th century and then onwards with specialisation
depending upon natural resources and technology as developed indigenously, fine textile and
spices in India and silk and other artifacts and paper in China. The format followed was family
owned production units with traders providing the capital requirement, picking up the quality
goods on time at a price agreed and then selling the same in the domestic market or abroad to
make or earn money after paying internal taxes as determined by the State and meeting all
costs in marketing operation. It is to be noted and realised that this rudimentary form of
capitalism was in vogue in India and Middle East and China from time immemorial. It should
also be noted that it was the traders who also performed the basic functions of Bankers, credit
givers, risk takers and assessors as required as also the fact that state had a monetary function
to regulate market, control the operations of the powerful “Sreni”s i.e. the guilds of the later
years and control the price fluctuations within reasonable limits for the benefit of the common
citizen. It is equally logical to expect that merchant leaders will emerge as “Sheresthi”s that
would be leaders in their profession later to be known as “Seths”. Kautilyua‟s Arthashastra
has elaborated the role of these leaders as also acknowledgement has been made in Chinese
literature.
As the demand for more and yet more products grew, the production leaders
employing human labour and home grown technology failed to meet the demand from family
units leading to the formation of factory system in India, China and in Europe. Skill
propagation and its extension as also need for new technology became paramount. It was at
this juncture that Europe outstripped both China and India by harnessing steam as the mother
motive power. Besides the new technologies that the harbinger of industrial revolution in the
18th century discovered and implemented in Europe to led expansion of production and
productivity in those countries and in America during the early part of the 18th century and
19th century did alter the scenario. In the analysis given in the Chapter IV, comparative
economic analysis of the world it has been inferred that it was only in the early 18 th century
that China and India were displaced from their usual first and second positions, in terms of
GDP, the index of wealth of nations.
During this transition, the trade also diminished progressively by chocking the supply and
with the drain of the Indian accumulated wealth in the form of tribute and booty to UK
through East India Company, adversely affected the trade and set the pattern of undermining

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these countries with standing. It has been stated that Napoleonic war and the development of
research in the applied field and investment in steam and generation of electricity and its
usage as motion power and in infrastructure building, all contributed to India‟s decline as a
prosperous nation and loss of trade from the usual level.
In early eighteen century, with the collapse of the Mughal powers, the use of the sea routes
to India and the presence of European powers, the English, French, Dutch and Portugal, all
seeking to participate in the wealth of India through trade and commerce, the economic
scenario changed radically. Though Surat and Gujarat and the west coast had business leaders
who continued with their trade, the volumes were adversely affected. Besides the other
industries, which had grown up for and with trade like shipbuilding in Bombay and Surat, etc.,
were also adversely effected because of the presence of foreign competitors. It would appear
that India had gained an important status in shipbuilding and Indian ships with Indian and
other cargo carried out its trade between India and China in the Far East and India and Middle
East, to send its goods to Europe via Middle East. It is also to be noted that Indian built ships
were used for seacoast trade in Europe and even in fighting Spanish Ships in the battle of
Trafalgar though records of Indian seamanship were absent. It could be that ships were built in
India because of the best availability of wood and the craftsmanship led to its acquiring
shipbuilding expertise, Wadias for instance, and these ships were sailed out by the European
sailor/purchasers to their country via the Cape of Good Hope around Africa, a route known to
the Portuguese and later by the British, French and the Dutch. Besides in ship repairing, India
had gained excellence. The trade and commerce continued with the west, based on Surat,
Bombay and Goa. While the trade organisation was but an extension of the well proved
agency system with agents being either the traders Arabs or Armenians who had migrated
from Persia or Parsees from Persia and settled in west coast. The payment was through barter
or through the bills of exchange known as „Hundi‟ and was cleared or honoured by the agent
who either collected or recorded the goods for final disposal. In the eastern coast, the famous
epic of “Chand Saudagar”, with his seven-ship fleet (Sapta Dingha Madhukar) was an
accepted leader. From Kalinga and even from Vizag or near Madras, the Chola kingdom area,
ships used to play to modern Burma, Indonesia and Far East carrying traders and Brahmins
who spread the gospels of Hinduism as also Buddhist priests who propagated Buddhism as
cultural export and not as politicalising agents, Borobodur, Angkor Wat, etc., remained
witness to this development. The structures remain but the agency system through which the
Actors asked varied over time and place, with society‟s variations and tenure, and has
disappeared.
With the influx of the British traders who later formed large trading houses under
charters in the form of Joint Stock Companies or partnership in competition with the East
India Company whose sole permission to business was challenged, an external agency was
imposed on the Indian scene which, however, continued to make use of Indian Banias, agents,
to run their business though the Europeans trade was taken over by the partners who opened
offices in London. Hence the margin of trade was reduced to only the „dustoore‟ or
commission that was received by the employed Indians from the trading houses. The East
India Company extended support to these establishments but later when these entities used
their power to extract privileges in trade, conflicts arose. The traders group were powerful
enough to change the Charters of the East India Company, which led to a rise in their
activities. With the war of 1857 uprising and the Imperial crown taking over, however, the
situation changed drastically. The trading groups by then were well established in Calcutta and

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marginally in Bombay and Madras and these grew both in strength and number and started
setting up industries in various areas. The Eastern area saw the development of tea, coal,
indigo and jute industries as also in salt and other articles needed for export, the Bombay units
specialised in food, banking, real estate and Madras in condiments and minerals. The main
actor in East area was Alexander and Co. but Palmer and Co exceeded it in power and extent
and became the largest Agency House in India by the start of the nineteenth century. In
Madras it was the Parry‟s who ruled the market and at Bombay it was the Forbes group, which
established the first agency house as early as 1767. Many adventurous Englishmen and
Scottish men (Scotts), who with some business Agency Houses back in England, established
partnership in India and carried out business both as trading partners and as bankers followed
this pioneering work. In fact, the first task of these units was transmitting money from British
company soldiers or employees from India to England, which led to banking activities and
then to trading.
This expanded activity many fold so much so that agency houses adopted a novel
pattern. It changed its basic character from Agency House to Managing Agency Houses or
entities with the sole purpose of managing the various units, which it had launched to carry
out various business units that it had established. The duty of this Managing House was to
manage and run the companies under its aegis effectively and smoothly and thus making and
disbursing profit all around including raising charges for the managing agency houses. This
was considered to be a necessary step because there was acute management shortage and this
could not be met by people from England, neither were the Indians who worked as Dewans or
Banias ready to take over the responsibility. It happened, however, that it was this group of
people who managed the show and earned as also handled the trade and business thoroughly,
though they remained as either paid employees or as commission agents. This formal of
Managing Agency was India‟s contribution to management structure and control.
The Managing Agency System led to both growth and improvement in quality of
output and organisation skill and suited Indian conditions admirably. More money came in
from England through stock market with the opening up of coal, indigo and opium trade, the
last with China, as also the development of road and railways and communication all needing
higher technology inputs and better management. It is to be noted, however, that the
organizations second line remained Indian and they were becoming more and more efficient in
trade, export- import, and banking. They did not dive deep in local market except, in such
areas, where the basic product/produce had to be secured locally like coal, indigo, opium etc.
It was left to the Indian assistants to deal in the domestic market and they made enough money
for themselves, which pushed them to start on their own, a step which was not favoured by the
English agency houses.
Things, however, changed with time and it was in Calcutta, which was then the capital
of India, that the first Indian managing agency house was established by Prince Dwaraka Nath
Tagore, a rich zamindar, who was educated, knew English had contacted friendship with the
leading Europeans, was a dashing and risk taking individual, who wanted to play his part in
the development of the region, i.e., east and who selected a knowledgeable Englishman Carr
and floated Carr Tagore and Co. This agency house floated several units by selling share and
raised money and launched multifarious business units. Starting with coal, he went into
banking, insurance and export trade in which he had gained onhand experience in having
worked as a banian with other agency houses. Tagore was also a visionary and tried to
produce sugar, and succeeded after initial failure. As a by-product, he produced Rum and was

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very successful in marketing the product. Following the opportunities created, Carr Tagore
helped promote a large number of joint stock companies and managed these for the
shareholders against a charge. Though the limited liability concept had not yet been installed
and the great Alexander and Co had failed, because of these lacunae, Dwarakanath‟s social
standing and status along with his personal wealth led the company to approve of this step and
to the satisfaction of the general public who contributed. He also organised the Tug
Association, which was involved in transport, operated a steamboat service between Calcutta
and Allahabad and saw to it that their requirement of coal was met from Bengal Coal
Company, which Carr Tagore Company owned. He succeeded in all his endeavours and was
indeed a colossus unsurpassed. He did achieved wonders as a pioneer and earned lots of
praise. However, in his stride to cover any and every opportunity, he overstretched himself
and his company and entered areas which were beyond his remit and experience like tea
gardens, etc., which was not within his competence. He vacated these areas of non-knowledge
and strove to revive the company, which he did in 1852 onwards. But the damage had been
done and the company collapsed. This notable experiment failed, the only example of a
commercial effort with equal responsibility was lost. It also robed the Eastern population from
its love for share culture and investment.
In the western scene business stability was the key to progress and Parsees took over
the leadership with Wadias, the Tatas, the Shroffs, and the Dadabhoys, etc., taking up the
leadership. Next to Parsees were the Gujarati banias, both Hindus and Muslims, also moved to
Bombay to better their prospects. Others followed the Baha‟is, the Konkani Muslims who
specialised in ships and the like and people like David Sassons, an Armenian, who had also
earlier been in Gujarat in trading and had amassed great wealth. Bombay had a great trade
with China both in opium and silk and other commodities, which sailed from Calcutta.
Jamshedjee Jeejabhoy was the Parsee merchant who controlled this trade and had become a
Baronet. Thus the trade dealings grew with its ups and downs but the new age started leaving
aside the family centric approach so far indicated. New education was spreading, technology
was being taught, people and leaders went abroad and learnt, and a new brand of
entrepreneurs were born and took over the business scene breaking out of the salaried or
agency system as it were.
Leaders amongst these were mostly born in Western coast and Jamsedjee Nasherwanji
Tata was a pioneer to set up the House of Tata, which has completed more than a century of
its existence. As usual, he started in trading for his trading group, worked for some years in
China, branched off on its own and set up textile mills in Nagpur because of its locational
advantage. He succeeded and then expanded again in the same line though his fertile mind
was constantly searching for new opportunities. Having received bad treatment in European
Hotels, he set up the Taj Mahal Hotel, which met every European standard and was greatly
successful. His crowning glory was, however, setting up the Steel Plant in India which after a
great deal of patience and perseverance he planned, took all the initial steps but died before it
was set to operate. The magnificence of Tisco at Jamshedpur today, remains as his greatest of
achievements, which his associates completed after a great deal of effort and expense. The
story needs elaboration. Prior to J. N. Tata, other leaders had also trodden the difficult task of
setting up new units like Manukbhai Bhogibhai of Ahmedabad in textile, the Sasoons also in
textile, the Killick Nixon group also the Dasturs and Wadias (Bombay Dyeing). J. N. Tata‟s
success was, however, immense. He was a true visionary and sought great things for his
country. He established the Institute of Science in Bangalore, introduced new machinery like

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the ring frame, which even UK had not touched, discovered as it was in USA, but he died in
1904 and Tisco became operational in 1911. Having been registered in 1907, with the local
people subscribed to its share, when London stock market did not show any interest, it should
be noted that Swadeshi movement had caught the fancy of the masses and Tata was a
beneficiary.
In the Calcutta scene, besides the new addition of tea, the indigo cultivation died a
natural death with chemical indigo being produced in Germany and opium trade off, the last
because of the Chinese opium war; coal and jute played a major role. The tea industry
remained mostly under the British group control of companies like Williamson Magor, Alex
Lawrie, Davenport, Shaw Wallace ruled the roost. The Marwari community, however, moved
into Calcutta from distant Rajasthan and entered the jute trade since the Bengali community
was interested, may be because of Carr Tagore experience or may be because of risk aversion.
However, R. N. Mukherjee, a trained engineer then a contractor and an Englishman Martin set
up a company named Martin & Co and took up many projects for execution with great
success. After Martin‟s death R. N. Mukherjee was made the senior partner and built up the
Martin Burn unit, which ended up as being the major engineering firm in east with the
building of Victoria Memorial and Belur Math to its credit. It may be noted that though the
jute mills were all under British management, it had adopted the India developed model of
managing agency; with certain minor modifications. Although the structure was ultimately
disbanded, because it fell in disrepute later, after India‟s independence, The concept was
enlarged and modified to identities as the holding company concept which has also became a
standard model of structure. Sir R. N. Mukherjee‟s son, Biren Mookherjee, a foreign trained
individual, took over the reigns from Sir R. N. After Sir R.N.‟s demise, he was instrumental in
setting up an integrated steel plant in Bengal, which also had a successful run till it fell into
disrepute without technology upgradation. It was the first private sector plant, which received
World Bank assistance. Besides Martin Burn, Bird & Co was yet another very successful
managing agency with varied interest, which operated in the east.
In Madras, the success of Parry and Co brought in the Chettiars (an corruption of
Chetty-srestti) in the field who opened textile mills and also built up in Coimbatore a large
complex for textile machine building, etc. In the north, Lala Sri Ram led the thrust and starting
from textile (DCM) built up a large complex with sugar mill, engineering unit at Calcutta and
a chemical plant, etc., and ran very successfully. Kanpur also has sugar and textile mills.
In modern India, besides J.N Tata and associates, Walchand & Hirachand group were
very active in opening a shipping line against the opposition of the then government who
wanted to retain there monopoly in shipping. Walchand group showed great perseverance and
diligence to fulfil their dream and successfully launched a group, Scindia Steam Navigation,
under Indian management but against the operation of the government which commanded the
majority of his ships during World War I it operated with a loss but kept on going and
ultimately succeeded. It also had other interests like Pioneer auto construction, etc., which
kept it going.
World War I brought about many changes mostly favourable to Indian business houses
and the most to gain was the house of Tatas, which operated TISCO from 1911 and supplied
the vitally needed steel in all forms to the government to aid its war effort. The top British
dignitaries who had observed that they would eat every pound of steel produced in India for
their breakfast would have had a bad bellyache in their lifetime or beyond. All production
activities were booming and even in Bengal several of new industries came up - Textile, P C

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Roy‟s Bengal Chemical, Dutta‟s Bengal Immunity, several banks under Martin Burn and other
successful agency houses. South and North also showed rapid increase of business activities
during this period. As it happens, this expansion era was followed by depression, which
resulted in the closure of many organisations, but others grew from as strength to strength and
the process became quite diverse and spread all over. South developed industries like
transport, power, etc., which led to its final selection as the automobile hub of India in the late
20th century.
In the years to follow however, new players arrived of whom the most important was
the Marwari interest represented by the Birla clan, the Goenka clan and the Maharastrian with
Mafatlals, and others. Slowly but steadily the Indian group expanded their operations in
competition with the British groups. World War II had also a similar effect with the Indian
groups expanding and the foreign interest reducing and ultimately with independence the
foreign groups sold off their interest to the Indian groups and Indian business houses retained
and reaffirmed their identity.
After independence, with Nehru‟s leadership, Indian industrial houses went on
expanding but the peaks of industry, as S. P. Mukherjee the then industry minister defined,
were kept under control from government control, “The Commanding Heights” as he called
these. The country adopted a mixed economy policy with bureaucratic control at its worse in
the name of allocating and economising. With the adoption of five-year plans following the
Communist Russian pattern, massive investment programmes for heavy; industries and
infrastructures and defence was initiated from foreign loans on easy term. Though investments
were made, the output failed in most of the cases and India was reduced to a “bread basket”
case. The private sector though shackled painfully plodded along till under Narashimha Rao,
Dr. Manmohan Singh, the present prime minister took charge and free economy was gradually
implemented with a nearly free private sector. The results are well known. [For derails refer to
- Tripathi, Dwijendra. Oxford History of Indian Business, New Delhi, Oxford University
Press.]

Some Indian Business Houses

As indicated, Parsees and Armenians settled in the West Coast were the pioneers in
setting up Indian Business Houses in the West Coast and these business houses ventured into
manufacturing from trade and commerce. Leaders were the Tata group which has its empire
even today with Ratan Tata leading as the Chairman, having near 100 companies, starting with
Textiles, Iron & Steel, Chemical, and then Electronics, IT, Communications, Automobiles,
Hotel and hospitality, Education and host of other industries. It is to be noted that textile
manufacture was the preferred route of entry since both domestic and export market was
ensured and the first breakthrough was with Jamshedji entering Iron & Steel which was not
encouraged by the then British government, which literally opposed every step that he
proposed and took. The World War I changed the political scenario as the war in Middle East
was fought with Tata Steel rails as it were and saved the fledging company from economic
disaster much after Jamshedji‟s demise in 1907. His able next generation fought many a losing
battle to salvage the company, which was established in a village called Sakchi in Bihar, now
Jamshedpur in Jharkhand, and history was made. Led by the previous Chairman, J R D Tata
and then present Chairman Ratan Tata who has taken over Corus, the erstwhile British steel
company which was the leader and has also expanded Tata Motors to produce indigenous cars

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and also taken over Jaguar, Land Rover complex in Great Britain which are now in the
process of assimilation. Tata Textile, Tata Chemicals, Tata Hotels, Tata Communications and
a host of companies speak well of their accomplishments and its status in the world of mega
businesses.
The other noted group is the Birla group which under G. D. Birla got into jute industry in
Bengal and after a great deal of opposition from the then British owners of jute mills mostly of
Scottish origin who were backed by British rulers, he was able to establish a Jute mill in the
outskirts of Calcutta and made it a success against all odds. That was the starting point and he
never looked back. He became a Jute baron and competed successfully with the Scottish Jute
traders because of his strategy of installing new technologically advanced equipment, which
had a cost advantage over the British equipment. His group though located in Calcutta
operated all over north India and covered chemicals, textiles, cement, manufacturing; but he
could not set up a steel plant much as he desired though he very successfully entered
Aluminium manufacturing. His sons, KK and BK, expanded his empire many fold as also his
favourite grandson BK‟s son Aditya Vikram Birla who extended his empire to Far East
specially Thailand and his son Kumara Mangalam Birla who is supported to take over from
BK. KK has expired and has bestowed his property to his three daughters. He had also become
a media baron. It should be noted that a distinctive feature of GD‟s regime was his active
association with the national freedom movement and his sponsorship of Mahatma Gandhi,
which was a unique feature as, was with Jamnalal Bajaj, another industrialist associated with
the freedom movement and also believed Gandhiji‟s concept of trusteeship. In the West
amongst others, there were several textile barons as also the Walchand Hirachand group,
which launched, sponsored and expanded the shipping industry in spite of British ruler‟s
objection and opposition, which carried Indian flag to foreign lands. The Kilachand group also
associated them with Fiat of Italy and launched auto industry as was Birla associated with
British Motor industry and launched the trusted Hindustan Ambassador in West Bengal.
The north had Lala Sriram group who built up a large textile unit, Delhi Cotton Mills, a
chemical unit, and sugar industry and in Calcutta Usha Engineering company specialising in
sewing machines and sophisticated mechanical parts. The sugar barons were mostly in the
northern belt. The Mody‟s, the Jaipurias, etc., were also active.
In Calcutta, besides Jute and Engineering industries, Sir R. N. Mukherjee built up a large
civil engineering and construction industry, Martin & Burn and his son Sir Biren floated and
built up the Steel Corporation of Bengal and associated Kulti Iron works near Asansol as also
Refractory works and power plant, etc. These units have fallen into bad times but are now
being revived. The Dalmia group built up the Rhotas Engineering Company in North India for
making cement works, sugar works and major fabrication facilities, but this industry in Dehri-
on-Sone has dilapidated.
In Bengal, during the freedom movement several pioneering industries came up. Bengal
Lamp, Bengal Immunity, Prof. P. C. Ray‟s Bengal Chemical and Pharmaceutical, Bengal
Waterproof, etc., headed by nationalist Bengali entrepreneurs. Some are languishing, some are
being revived and some are working satisfactorily.
In the south, the Chettiars set up engineering, textile and machine fabrication units of
which E.I.D. Parry still exists. These all took the form of partnership with British firms and
then became India-owned and managed like T.I. Cycle, etc. Coimbatore became and still
remains a centre for machinery and hi-tech fabrication.

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 Lately, Mafatlals became a power to reckon with in Textile and then with NOCIL, which
became leaders in Plastic and artificial fibre but this company is now languishing. Ambanis‟
on the other hand, have been a late entrant again starting from textile and have built up the
largest empire covering modern industries like petrochemicals, power, communications, oil
and gas and other infrastructural products and services. The Mahindras have also been active
player in the commercial vehicles field where they have launched many a winner. Modern
India is industrialised enough to launch its own satellite, sent moon missions, designed and
fabricate planes and ships besides sophisticated machineries as in Bangalore and Coimbatore
as also robotics. As indicated it has designed its own car and launched the most economic car
“Nano” in the world.

III. Business History of Some Major Nations

Business History of Japan

Business history of Japan differs from the American scene in the respect that is the
retention of the family ownership the pattern in which the early business houses were raised.
Before the war, the driving force of Japanese industry was the military-industrial complex
known as Zaibatsus. These were dismantled and in their place, because of the competitive
pressure and reasons for achieving economy of scale, large corporations have developed like
Soni, Sanyo, which are larvae conglomerates and which draw their sustenance from small and
medium size industries which they sponsor and nurture for encouraging the basic skills. These
are known as Kairetsu and are in full bloom. Yet another difference between American and
Japanese business theory arises from the relationship that exist between the government and
the business houses. In America, it is at best supportive and it has a strong control bias, in
contrast to Japan, it is a combined operation which has given rise to the term Japan
Incorporated: Both work in conjoint manner, the business houses or large corporations looks
for expansion and profit and government agency also looking for state profits and societal
gains and the two met to plan work such that both benefit to the maximum extent. The two
parties debate and argue and continue to do so till a consensus is reached. This has arisen from
Japan‟s “down up” philosophy as against “top down” philosophy of the US/UK western
world. That is the principle reason why Japan takes time to come to a decision but once
decided, it works conjointly to implement and derive gains at an overall cost-time-effort
optimising situation. The control of the giant corporations is suitably framed and has been
operating successfully to the wonderment of the world. Zaibatzu replaced by Kairetsu Japan
Inc. concept. Unitary implementation was done with progress after long planning to reach
consensus.
History of Business of United State of America

The economic history of USA has been summarized and presented earlier. This note will
cover the business history part and indicate how it grew into from the colonial period to the
present day, from small family-owned farms and merchant trading to global corporations
spanning the world economy.
In 1920s, Calvin Coolidge, the President of USA declared that “the chief business of the
American people is business”, a statement that indicates the importance attached to business.
It has created the highest standard of living in the world history. It has also come under

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government regulations in response to popular concern about workers rights and safety,
environmental damage, but was criticized for widening the gap between “have and have not”,
between poor and the rich and affluent and of exploiting low wage earners in developing
countries.
Be that as it may, despite all the criticism for which it has taken concrete steps, the
business establishments have grown and have been instrumental in shaping business economy,
scepticism withstanding.
The original organization drew from the European growth pattern in the 1500s. The
London Company and the Plymouth Company received charter from the British crown,
recruited settlers, paid the cost of establishing colonies and carried out business as was
practiced in UK. It may be noted that these establishments were not family-owned but shares
were floated and organizations were set up to earn profits and repatriate the same to the
shareholders/owners. New forms of management book-keeping, partnership Joint Stock
Companies were developed and set to work, family was separated from management.
However, it did borrow the concept of capitalism as far as trust and written documentation
was concerned and business grew.
Obvious materialism would follow but it did with growth. This led to the accumulation of
gold and silver to give more power to the state and control the export-import trade to increase
its financial weight. This had to be legalized and so the Chartered Company concept as had
developed in UK was adopted instead of issuing charter to an individual sailor or trading
group i.e., Joint Stock Company was installed. The state accreditation, as it were, to ensure
protection to the companies in high seas or land as may be sought for against a payment of tax
on its profit or otherwise. Chartered companies were also given power to expand as happened
in India and thus the colonies grew. This process was, however, overseen by the Crown as
also the religious arm of Church, which prohibited wrong practices.
The navigational art also developed and the urge for independence though the movement
was not fully backed, hence the term “Reluctant Revolutionaries”. However, the war was
fought and the colonists won, wining their independence and framing and installing a new
constitution. Business, though adversely affected, continued and once the initial turmoil was
over, but it set about overcoming the lost time and settled its tariff and other issues and the
government gave full support to business and the growth of markets.
The government also created conditions of growth by initiating contract laws and this led
to the establishment of Corporation. This initiated the practice that every corporation has a
charter issued by a governing body spelling out its duties and privileges. This was a departure
and America adopted this from reality. In the early 19th century while England and France had
no more than about 20 corporations each, America had chartered more than 300. In America
there were many supporting laws and business thrived. Wars in Europe at the end of 18th
century caused market to expand and America thrived and great business leaders emerged like
J. J. Astor, F.C. Lowell and others who specialized on banking, insurance companies, textile
manufacture, and fur trade. But with the end of war in Europe, rules were changed and
American commerce collapsed. However, it again regained strength with the traders replaced
by manufacturers and railroads, which opened up new markets, which sustained growth.
The 19th century saw major expansion in transportation and manufacturing, between 1815
to 1914, business transformed the US economy and opened up vast resources of mineral, oil,
coal, iron ore, and copper and other essentials. And in this expansion, the corporation structure
became important. It changed the society as also the economy. With vast expansion, the need

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for better communication, literate work force, and middle management cadres as also the
growth of efficiency in the use of energy and resources under competition, initiated a
transparent economy-led society, which went in for yet more expansion and innovative
management. Modern business process was introduced. Backed by businessmen and
capitalists who provided the where wither of the growth of entrepreneurial culture, men like
Edison, Tesle, Ford appeared on the scene after Eli Whitney and high-pressure steam engine
use. These were the roaring years and giants like Rockefeller in oil, Carnegie in steel, Ford in
automobiles and Rothschild in Banking set up huge operations which later became
multinationals and their operations spread out across continents yielding tremendous power.
This brought them under the antitrust scan and the evil tendencies were sought to be checked
and it did but the growth remained uninterrupted setting up giant corporations like GM, GE,
Ford, in the manufacturing arena and the Bank of America and others in the financial arena.
Not that the business houses did not experience their ups and downs but all said and done, the
US business is booming under the watchful eye of a friendly government and buyer-friendly
society.
It should also be noted that all business is not gigantic in size. The heart of the matter
is that small business entities still provide the main inputs into the giants and this has
preserved the skill component, which in large entities had been lost to machines or transferred
through robotics. A very cautious and judicious plan has been adopted to take advantage of
both the world and the product mix has also changed to meet the requirements. Witness the
group of microelectronics, robotics and the various quality management steps, which have
been embraced by the forward-looking corporations

Corporate Governance - Recent Trends

As indicated earlier, the creation of corporate entities and its increasing influence in
civilization, necessitate the formulation and enactment of laws to control its operations. This
needed the enactment of Company Act. It was, however, realised that the Company Act in
spite of all amendments was drafted with an eye on financial control and imposed constraints
on irregularities and imposed checks like audit functions. With time, however, it was realised
that corporates exercised much larger areas than finance, such as environment, ethics, human
behaviour and social norms and this led to the rethinking on the scope of administrative
control and ethical parameters to be applicable to corporate governance. As indicated, this has
led mostly to self-control by the corporates who are increasingly being aware of the larger
responsibilities that they carry and have led to the development of ethical controls besides
technological aspects, which required addressing. Increasing this aspect has gained importance
and the corporates, on realising that it is also their responsibility to look after aspects like
global warming, effluent disposal, resource reservation are seeking legislative measures to
arrest these trends. Kyoto agreement is a major issue in this aspect and United Nations is
working seriously on this issue and will continue to do so to save our habitat from destruction.

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 Chapter IX

1950 Onwards - Emerging Trends

Trends
The middle of the 20th century was the momentous years, which altered the face of
civilisation. The Second World War had concluded in Europe in 1945 with devastation of
Europe including Russia, the battle of Leningrad and the collapse of the axis power Germany
led by Adolf Hitler and his Nazi party along with Mussolini of Italy with its Fascist party.
USA carried on the war with Japan who had devastated Pearl Harbour earlier till the Atom
bombs were dropped over Hiroshima and Nagasaki. As had happened at the close of First
World War the allied power, Churchill, Roosevelt and Stalin set the terms and Russia forced
the bifurcation of Germany into East and West Germany, with the East under its command
along with Poland, Czechoslovakia and other small states. England and America extended
their control over the West Germany area with Berlin being a neutral area much to Russia‟s
dislike. The world was as it were split into two camps, which led to Churchill‟s famous speech
on Iron Curtain.
However progress was achieved with the settling up of the United Nations replacing the
dormant League of Nations and Nuremburg trials to judge the war crimes was started.
Both Hitler and Mussolini died. Churchill and Roosevelt followed and later Stalin also
died and with him the dreaded political spy chief of Russia. The devastated world was trying
to regain its equilibrium. Britain was a shattered nation, as was France. America took over as
it were the allied leadership. Stalin was denounced in his own country because of excesses and
Khrushchev took over along with Brezhnev and Kosygin in Russia. Clement Attlee took over
power in UK with the victory of Labour party over the Conservatives. Transfer of power took
place under Lord Lois Mountbatten in Indian peninsula with the creation of India, Pakistan
and Burma. Death knell had been rung for the colonies, which started with British and
extended to the French, Dutch, Portugal and other European nations with the change of
geography and transfer of governance. British troops also withdrew from Suez Canal and
Marshall Plan extending aid in Europe for reconstruction was launched. America took over the
airlift of Berlin to defy Russian pressure tactics. State of Israel was established much to the
dissatisfaction of the Arabs and Egypt. In Asia, besides the abolition of the colonies the
broken Japan was busy being reconstructed under Gen. McArthur and in China Mao Ze Dong
declared the Chinese Republic after defeating Chung Kai Shek‟s Nationalist Army, which fled
to Taiwan.
India declared itself as a republic and J. L Nehru decided with the consent of the
Constituent Assembly to adopt a socialist pattern of society as drafted by Dr. B. R. Ambedkar.
From 1947, this policy was followed in India with the Congress party in power through
different Prime Ministers with state control and bureaucratic implementation created a Red
Tape controlled system following the Russian model. This followed till 1990 when under
Narashima Rao as Prime Minister and Dr. Manmohan Singh‟s leadership financial control was
relaxed. All through this period constant skirmish over Kashmir continued and three wars
were waged with Pakistan, one of which led to the recovery of East Pakistan, which formed an
independent Bangladesh, and dismemberment of Pakistan

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 In Europe European Union was created in the late 1950s. Warsaw Pact was signed and
Hungarian uprising was crashed. New republics were formed in Africa because of
decolonisation and there were messy turmoil. John F. Kennedy was elected President in USA
in the early „60s. He got into a confrontation with Khrushchev over the deployment of Rockets
in Cuba directed towards US. It was an eye-ball-to-eye-ball contact but Russia backed off.
Kennedy lost out on the Bay of Pig attack planned on Cuba. The issue of building of the
Berlin Wall separating East Germany from West was hotly debated. The failure of the eastern
sector under Russia to modernise and the rapid progress of the West Germany under UK and
USA was a moot point. In Europe France vetoed UK‟s admission in European Union.
Kennedy was assassinated in 1963. Bangladesh was formed in 1971. Martin Luther King
delivers his famous speech “I have a dream” which energised civil movement in a non-violent
manner. He was assassinated followed by the resurgence of France and Germany as economic
powers as also of Japan.
China sought and gained admission to United Nations. Violent industrial strike in UK in
the early 70s proved to be great blow to its economy. Nixon had to resign as the President of
USA because of “Watergate Scandal”. Arab Israel war was fought in 1967. US forced to pull
out from Vietnam. Though Kennedy administration inherited Vietnam conflict, under
McNamara, the Defence Secretary, and its efforts to win Vietnam War or even to defuse it,
failed and this was a blot in the Kennedy administration. The Bay of Pig attempt on Cuba was
the other issue which was yet another failure for it.
Japan re-emerges as an economic power. Margaret Thatcher elected as the Prime Minister
of UK and Carter elected as the President of USA and redefined the role of USA vis-à-vis the
world. Portugal in 1975 and Spain in 1977 held democratic elections, which was a
breakthrough. Shah of Iran resigns and Ayatollah Khomeini returns to Iran and assume
supreme power declaring Iran as an Islamic Republic.
Shakharov in internal exile in USSR, various forces appear in USSR. Brezhnev dies in
1989. Gorbachev reforms Soviet bureaucracy and governance by stressing Perestroika and
Glasnost – transparency and tolerance. Moghabe rules over Zimbabwe. Australia becomes
independent though remaining in Commonwealth like India. Iran-Iraq war. Ronald Regan
elected as USA President. Greece joins European Economic Council. Argentina attacks
Falkland Island but British navy recaptured it in 1981. USA bombs Ben Gazi and Tripoli.
Atomic plant disaster in Chernobyl in Russia. USA sanctions on South Africa because of
Apartheid policy – racial discrimination. Limited election held in South Africa. Gorbachev
proposes democratic reforms in 1988. Berlin wall demolished and thus given a body blow to
Russia. Gulf War begins. George Bush becomes President of USA. Russian communist rule
collapsed. Boris Yeltsin takes over Russia. With abolition of the Soviet federation Russian
unity was broken. Iron curtain removal started. Tianammen Square massacre took place in
China against pro-democracy movement. USA becomes the sole power in the world.
After the collapse of Soviet Union and the dreaded KGB, secret police, Poland and
Czechoslovakia became independent and Lech Walesa became President of Poland and
Vaelav Hovel of Czechoslovakia. Large Russian dream collapsed South African reforms.
Nelson Mandela freed after 27 years in jail. John Major replaces Thatcher whose economic
policy of indiscriminate privatisation and on education policy was much criticised. Major
improvement in Science and technology. Mandela becomes the President of South Africa and
manages the transaction of power very capably. Hong Kong returned to China. Prince Diana
dies. Tony Blair becomes prime minister of UK. Clinton becomes US President. Rocket

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spaceship and terristial and extra terristorial experiments had a great success. Electronic
revolution takes place in communication, entertainment and for defence purposes.
2000 AD was welcomed all over the civilized countries. George W Bush (Jr) elected
President of USA. Tension over Iraq starts and USA attacks Iraq, which later led to ouster of
Saddam Hussein at a cost. Blair supports Bush. Indian economy revives with 7% growth of
GDP. China emerges as a major power. Political tension started over Middle East oil. Rise in
fuel prices upsetting world economy. Wall street‟s risky adventure leads to the fall of the
world economy with collapse in USA. Developing nations effected. Export oriented growth,
which helped South Korea, Taiwan, Malaysia and Singapore, and partially India had reduced
growth. China had also reduced growth rate but its continued GDP growth turned it to a
massive economic power, as also a political one. Attempt to disengage in Iraq. Signs of peace
appeared in Arab-Israel and proper status of Palestine. Trouble with terrorism increases. Al
Quida and other terrorist bodies expand their activities. 9/11 attack in USA and subsequent
outburst. India became a victim of growing terrorism with troubles in Kashmir. Disturbed
situation started in Afghanistan and American stated to play a role. Barrack Hussen Obama
takes over as US President. Tony Blair replaced by George Brown. Putin tries to stabilise
Russia as a federation of states, Ukraine, Belo-Russia protect. Communist edifice broken
mixed economy adopted. China‟s showed astounding progress in economic sphere. India‟s
struggle to achieve higher growth rate than the so called “Hindu growth rate” of between 3%
to 5% against a population growth rate of about 2% hardly left any resource for development.
In the economic sphere as explained earlier, France and Germany both revived their lost
glory with American help but Britain lagged behind in Europe. With the formulation and
installation of European Economic Union and later European Union and a common market
visualised by Jean Monnet, a French bureaucrat, and Robert Schuman, French Foreign
Minister Europe as a unit revived, had a future staring growth rate and contributed positively
toward improvement of the quality of life and economy and ecological ability. France became
the leading power in civil use of nuclear energy and transportation where as Germany after
combining East and West became a mighty industrial power especially in chemical, which
was its speciality. West Germany had to suffer a great setback because of the failure of the
soviet governance in East Germany but for the sake of national unity accepted the loss and
worked that much harder for development. The growth rates in Europe ranged between 4%
and 6% but were falling because of market saturation. The same happened for Japan and USA
where market saturation limited economic growth. Spectacular growth rate were achieved as
indicated by South Korea, Taiwan and Malaysia following an export expansion policy. China
build up its manufacturing capacity to meet the World consumer demand and successfully
captured the World market. India was able to lift its “Hindu rate of growth” of 3-4% to 7-9%
for about a decade after the opening up of the economy in 1991 and was hoping for break
through. However, with the collapse of the American economy and failure of banks primarily
due to “sub-prime” lending, World has been facing a major recession. America is working
hard to revive the economy by infusing out funds, a rule not acceptable to the capitalist
structure, and some signs of recovery have been noticed. It has to be noted that the recession
has badly effected the export `front and China and India with their dormant domestic market
may be able to escape the downfall but it will require special attention. In fact the BRIC
natures, Brazil, Russia, Indian and China are now being looked upon as the saviour of the
world economy within near future and with the sustainable future.

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 Besides this development, rapid progresses were made in the areas of Biotechnology,
Information system and the Rocket science. Besides the search for the missing link in the
atomic sciences, the whole aspects were researched on with a great deal of interest.
Developments in the area of communication and the acceptance globally of the digital
approach to information handling are yet another phenomenon which may be commented
upon.
The discovery of DNA structure, Double Halix, spends up the Gencological studies and
established the interrelationship between animal forms on a scientific basis. Besides the gene
structure studies yield information on diseases and its possible line of attack as also cure.
Besides cloning possibilities are actively followed with positive results. Crime detection is yet
another area where genological science has helped. Molecular biology has grown to be a
developing science and research is being actively followed.
Communication based on Digital approach is yet another area wherein important progress
has been recorded. In fact it has been a sea change. Unthinkable discoveries have been made
and as is often said “world has been reduced to a village”. Instant approach, content and
communication, one way, two way or multicontacts have replaced the need to physically
travel and have thus saved both time and expenses. Videoconference is now commonplace and
analysis, unthought of, is regularly practiced. Equipments and gadgets like iphone, blackberry
is commonplace thus rendering communication looks both feasible and economic. This is
really an age of digital revolution. Space travel and communication has overcome many a
hurdles. Hubble Telescope about 700 KM high from earth surface have opened up new vistas
and knowledge about the universe and space. And this is yet another sector which is still
growing and will continue to grow.

Time magazine in its June 29th – July 8th 2009 issue, has presented a brilliant analysis of
the last 20 years highlighting the turning points as it were, which literally changed the course
of history. In fact, it has quoted Francis Fukuyama‟s famous and much debated phrase “the
End of History”. The incidences referred to are:
1. The Soviet regime collapsed around 1990‟s with the independence of Poland under
Lech Walesa leading Solidarity and Havael in Czechoslovakia and the freedom
struggle of Ukraine. The master event was the breaking up of the Berlin Wall which
the communist government in East Germany had built „for eternity‟ to prevent East
Germans fleeing to West Germany to escape oppression. This is a brilliant analysis of
the socio-political picture of the time; the role-played by Gorbachev and the ultimate
fall and disintegration of the Soviet state, thus bestowing the world‟s leadership to
America.
2. At about the same time, the oppression of the Tianammen Square where students in
China were supporting individual freedom movement which was opposed by the hard
liners in the Chinese Polite Bureau. This suppressed the views of Zhao Ziyang, the
hard liners led by Deng Xiaopeng replaced a reformist leader who had replaced Hu as
the party leader in 1987 and had installed some economic reforms of merit and blood
flowed when the students and protesters were massacred. The movement for Human
Rights and individual freedom was abolished and crushed while Deng continued with
the economic reforms and made China a power to reckon with.
3. Mandela who was jailed for 27 years in South Africa was released and gradually took
over power from De Kirck in South Africa without bloodshed following Gandhi‟s non-

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 violent struggle approach, thus establishing democracy and South Africans„s rule in
South Africa.
4. The change of governance in Russia brought about by Gorbachev who propagated the
concepts of “Glasnost” and “Perestroika”. This movement replaced the soviet rule and
Russia changed in to a federation and was reorganised by Putin who was installed as
the Prime Minister.
5. The Afghan war and the involvement of USA to prevent the expansion of Russia. The
creation of Taleban and the growth of the organised terrorism hitting America in the
9/11 disasters.
6. In the 1990, Dr. Manmohan Singh the then Finance Minister under Mr. Narashimha
Rao‟s government and the start of economic growth of above 5% for India was
recorded changed the economic bondage of India.
7. The withdrawal of the US troops from Vietnam after the disastrous war and the
consequence changes in the geo-politics that followed.
8. The award of the Nobel Prize to Dalai Lama of Tibet, which was recognition of the
spirit of Freedom as, was the award of the prize to Aung Sou Sekye in Burma (now
Myanmar). However both these awards did not lead to independence or change of
government.
9. In the field of communication, the discovery of Internet and its installation
revolutionising storage, retrieval and dissemination of information and with ease that
astonished and conquered the world audience. This breakthrough also happened during
this period. The code „www.com‟ representing World Wide Web has been the most
used and admired. It has transformed the process of knowledge accumulation and
transformation. This inaugurated the task of digital management as it were and total
transformation
As indicated these momentous events were all clustered together and impacted on the
history of the world so much so that as indicated as if history ended and new history started.
Changes in Post 1950 era
Besides the change in the economic success with the BRIC countries being recognised as a
growing power in the economic forum and the gradual loss of the hegemony of America and
England; with the gradual though slow development of the developing countries, the stress
was laid on trade and commerce for improving the economic performance. This may have
arisen with the export oriented growth policies with countries like South Korea, Taiwan,
Singapore etc. and the economic benefits arising out of the European Economic Union
formulation and to implementation, several state groups formed Free Trade Agreements like
NAFTA formed by US, Canada and Mexico, North Atlantic Free Trade Agreement; ASEAN -
Association of South Asian Nations comprising of Phillipines, Malayasia, Singapore,
Indonesia, Australia and New Zealand with India joining lately; taking over non-military
activities of SEATO which was disbanded in 1975; SAARC – South Asian Association of
Regional Countries a confederation between India, Burma, Pakistan and Sri Lanka, Nepal and
others. These organisations sought to abolish duties hindering the growth of trade between
member countries and increase regional economic cooperation. It is to be noted OPEC
organisation, which represented the interest of the Oil Producing Economic Cooperation, on
the other hand strove to protect the interest of the oil producing countries and introduced oil
policies, which increased the crude oil price by four folds causing an economic energy crisis

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around the glove. Whichever manner one assess situation, the benefits of regional cooperation
was a growing realisation and was an anew feature which looks like remaining a sustained
consideration.
New Trends and Projects
As a part of the instructions, the students of Calcutta Business School (CBS) who
attended the compulsory paper “History of Human, Management and Business Development”
had to carry out a project on this development process from 1950 onwards and present their
findings before the Peers. The students were divided into six groups and each group was
allotted a subject and was assessed as a part of their examination of the subject. These
presentations were based on a position paper researched by them and was meant to cover the
political, social, economic, and managerial aspects of the defined areas and these position
papers have been critically summarised and presented in this chapter. Because of space
constraints, the synopsises of the views presented, are given below with a view to assess their
mastery over the process of data collection from various sources, analysis and their critical
comments.
The easy rationale for choosing 1950 was the reference point for the following issues:
1.Availability of data for analysis, 2. It was a turning point because of the changes that
occurred in the alignment of new nations, particularly in Asia after the end of World War II
and decolonisation, 3. The Total change that occurred with the power bases and economic
scenario.

The students comment upon a brief description of some of the important states besides
India, China and Japan.
Indonesia: A Republic of Asian state comprising of East Indian islands of Sumatra, Java,
Modern Malay, Celebes and smaller islands of South Borneo and East Irian. This comprised a
part of Netherlands Indies and was captured by Japan during World War II and was liberated
by Dutch in 1949 and was united under President Sukarno and seated in U.N. in 1963 as
Indonesia. India played a major role in its independence. Gen. Suharto captured power in 1966
and became President and improved economic conditions by enacting laws and ruling with an
iron hand. It is a potentially rich land and is rich agriculturally and also in oil, minerals and
various fibres and textiles.
Malaysia: Situated in the Malay Peninsula, it is a federation of South East Asia formed in
1963 by linking Federations of Malays, Sarawak, North Borneo and Singapore, all a past
British Commonwealth. However, Singapore left in 1965. It is governed as a federation of
states with election held every five years for senators who form the Parliament. Indians, who
carried out business and spread Indian culture, initially developed the state. Malaysia has a
sizable Indian community. It is an agriculturally and mineral-wise rich country and at the
centre of ASEAN activities.
Singapore: It is a state city and a famous example of proactive government, an export-import
centre, a rising industrial state and a very affluent and well-managed entity.
Thailand: An independent kingdom in South East Asia which was known as Sham and
stands for land of free people. It had a long standing and a much respected monarchy though it

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abrogated its absolute power in 1932. It had a Portuguese influence that traded intensively by
the cultural influence of India in very pronounced both in language art, craft, and social
customs. It is an agriculturally rich country and has been an ally of USA during the Vietnam
War in the late twentieth century.
Philippines: Independent country of numerous islands as created by Spain in 1521 and
Spanish rule was established along with Roman Catholicism and in 1560 during the reign of
Philip II, all the islands were brought under control by Spain. On the conclusion of Spanish-
American War, the entity was ceded to USA in 1895 and because a semi-independent
commonwealth in 1935 and an independent republic in 1946. The Japanese occupied
Philippines in 1942-1945 after fighting a fierce war with USA. After Japanese defeat by
American army under McArthur, Philippines won its independence and under the constitution
of 1973 but President Marcos who ultimately proclaimed martial law and retained power.
President Marcos was removed, impeached and banished from Philippines and replaced by a
popularly elected politician and is now under the Presidentship of a lady politician Gloria
Macapagal-Arroyo.
Australia and New Zealand though not situated in Asia have retained their European culture
replacing the original inhabitants. These are powerful nations, economically rich but have to
find their moorings with the growth of Asian nations, both politically and economically.
Each of the six groups was carefully formed to comprise different disciplines so that an
overall consensus would emerge to reflect their considered judgement. The attempt was
successful and hence this summarised presentation.
Tasking into account the happening and the periods the following areas were selected for
intensive study.
1. Japan and the Asian Tigers, 2. China and its Development, 3. ASEAN – A Brief
Overview, 4. Great Britain since 1950, 5. United States of America and NAFTA since
1950, and 6. Germany after World War II.
The six groups had around five members, each group was allotted an area and all the
members contributed to the final conclusion thus ensuring an interdisciplinary study and
realisation of the need to have an overview and consensus. All items, which had to be
highlighted, were agreed on and emphasised.
Along with the class instructions, the students were requested to carry out the project
work and these have been preserved in the library for future referencing. In fact, the course
content was so unique, it may be the first time that such a course has been offered to
management students at any Institute of merit, that all referral materials had to be collected
from various and diverse sources and preserved with the hope that this investigation and
instruction would continue and improved upon in the future.

Japan and the Asian Tigers

The countries involved are Japan, Korea, Taiwan, Hong Kong and Singapore of which
Japan was devastated in World War II as also Korea and Taiwan as both these countries were
under Japanese occupation as colonies. Hong Kong and Singapore were British outposts but
the Japanese conquered the former during World War II, a defeat that Churchill described as a

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“great loss”. Only Hong Kong escaped the ravages of war because it was located in the
Chinese main land and China was busy with its own internal war.
The devastated Japan had to change its political character under the American dominance.
It had lost all its possessions and was in shatters. But with the help of USA and the financial
assistance from major institutions, it picked itself up by its bootstraps, so to say, by
concentrating on advanced technology and sheer dedication. The Emperor lost his divineness,
the Zaibatsus were demolished, and democracy was introduced and a bicameral set up for
governance was installed. In fact, there was a need felt and realisation for a new Japan in the
making. The remarkable aspect was that Japanese people accepted this change as a penance
for their misdeeds resulting in the atomic bombing and worked for setting up the Japan Inc. in
right earnest, a process which USA whole heartedly supported. With investment coming in
flood, Japan set about to put its house in order and invested the money in installing modern
machinery and in importing the latest technology. Besides, they learnt from USA and beat
them at their own game. Japan became the leaders in auto Industry, in commercial electronics
and computing and large multinational Industries developed once again ruling over the
market. The secret of their success lay in their mastery of Quality Management and their
ethics of striving for excellence. A vanquished nation in the 50s became the second wealthiest
nation by the 1980s and continued to expand its export to be able to import the necessary raw
materials of which Japan was deficient. There were many changes in the government with
different parties taking over, but the objective of Japan to achieve excellence and its policy of
friendship with USA remained the sheet anchor.
Korea on the other hand, was the scene of battle after the defeat of Japan between the
allies and Russia/China and was divided into two parts South and North, south being a
democratic state and the North a communist state under China/Russia. These two areas went
on waging war with USA supporting the South and Russian/China the North. The South
following Japan‟s policy of rejuvinisation followed the American system of democracy,
market economy and emerging technology and rapidly became a power to reckon with export-
led growth. It eventually became the cheapest manufacturer of stupping of iron and steel as
exemplified by POSCO and a quality manufacturer of auto and commercial electronics, the
growth markets, besides specialising in construction industry. The world was astonished at the
outstanding work ethics of the South Koreans and this enabled them to improve their
economy; whereas North under the communist regime lagged behind. Despite the political
conflict, strikes, and other impediments, South Korea marched ahead and has become an
economic force having followed the Japanese ethics. It became a success story of the late 20 th
century.
The same may be said of the Taiwan, which was also a Japanese colony during World
War II. With the ouster of Kuomintang regime in China, Chiang Kai-sheik with the followers
and the rich elements of China fled to Taiwan much to the dissatisfaction of the Taiwanese
inhabitants but later won them over to establish a growing economy in Taiwan as China and
specialised in electronics, chemicals and in communications besides chemicals There is an on
going tussle between China (mainland) and Taiwan also China as to who has the suzerainty,
China claiming Taiwan as its colony which was rebuffed, but the issue did not precipitated,
with mainland China‟s representation in the international forum and status quo is maintained
with Taiwan.China‟s economy boomed, and its international status raised with help of USA
and its trade with the country increased. Taiwan is now a matured industrialised nation as
against an agricultural one.

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 Hong Kong continue to carry on trade, because it was being situated in Chinese
mainland and remained so throughout the later half of the twentieth century till it was handed
over to Communist China when British gave it up as its colonial territory on July 1, 1997.
Since negotiations were going on for considerable time and with Chinese open door policy,
the handover of the last colony by the last governor, Chris Patten was carried out with great
pomp and grandeur and Hong Kong since has acted as a common meeting place for China and
the commercial world with great élan and was fully utilised by the mainland China (People‟s
Republic of China). This trend has continued and Hong Kong has specialised in financial
services and has continued to grow in spite of occasional setbacks. It has also developed its
own form of democracy and parliamentary system after negotiation with People‟s Republic of
China.
Singapore, on the other hand, was exposed to the horrors of World War II and was
captured by Japanese army and later re-conquered by Allies. UK helped by USA and Indian
army, fought the Indian National Army led by Netaji Subhas Chandra Bose. However, it
recovered very rapidly, primarily because of its geographic location and importance as a vital
marine trading centre. It initially allied with Malaysia but later branched as an independent
city-state with an astounding prosperity, which is applauded by all. Its government, export,
and economy, its educational system, its handling of multiracial character of its inhabitants
have attracted attention. Agriculture, electronics and financial business and clean
environment-friendly industries are its main areas as also service sector like health,
communication are its future growth area and it has set examples by its performance.
Since Japan accepted that it would not have any defence budget and would depend on
USA for its defence, a major change in its policy during the World War II, it has retrained a
minimum force for meeting imperial law and order requirement and thus scarce resources
were directed to productive use; and backed by Japanese grit, ethos and focused action, Japan
has reached the heights and emerged and stayed as the second most affluent nation in the
world. Not that it has any problems, social or otherwise, but its status as a mature power after
the utter devastation has been a wonder. South Korea has to retain a sizable army because of
its hostile neighbour North Korea and in this, it has received help from USA and United
Nations Because of hard work, the nation has earned respect and the Japanese ethos which
spread during occupation has helped it grow and sustain growth over the years as has
happened in Taiwan where coupled with the best of Chinese, the Japanese focused action has
helped it achieve its stated objective. Taiwan has had to maintain a sizeable army as by South
Korea but by proper planning, help from USA and dedicated action it has preserved its prime.
Hong Kong and Singapore and their reasons for success have already been discussed. Defence
expenditure is limited and this has helped the city-state to grow and prosper.

China and its Development

The mire the China had descended into in the latter part of the nineteenth century and
early part of twentieth century who noted which San Yet-sen, the American educated lawyer
and a member of the elite society sought to arrest by floating his Kuomintang party. This led
to the development of a communist movement led by Mao Zen Dong and his long and bitter
fight with the Nationalist Party led by Chiang Kai -sheik which ended with long march of Mao
Zen Dong and the banishment of Chiang Kai-shek and his advisers/followers to

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Taiwan/Formosa claiming it in 1950s. Mao Ze Dong established the Communist Party of
China and claimed Taiwan.
Through a great many reforms and experiments, Mao and his assistants/advisors spread
the tenets of communism as practised by Soviet Union and tried to lift China from the mire to
its past glory. They, however, found that the perception did not work, because China‟s culture
and ethos would not agree with the state controlled approach. His famous/infamous scheme
“let a thousand flowers bloom”, (let a thousand voices speak) encouraging criticism of the
central planning methods adopted went out of hand and had to be ruthlessly suppressed much
to the concern of the world polity and led to an internal purge. His second attempt to achieve
“The great leap forward” improving the economic plight of the nation also ended in a disaster
with famine and thousands of death and complete devastation of life and growth. There was
internal dissent and all planning effort failed. Thus came the sad and sudden death of Lin
Piao, Mao Ze Dong military genius and the capture of power by Mao‟s wife and the “gang of
four” who took over the government with Mao‟s failing health. His immediate administrative
assistance was put away and the Red Guards communist cadre took charge and spread disaster
till Deng was reinstated and took charge.
Under Deng Xiaoping‟s order returned though he had to suppress the student movement in
the much criticised Tianmen Square episode when army marched against the students and
suppressed the uprising, but slowly but steadily order returned. Experiments were no longer
launched indiscriminately and economic improvement started at the third quarter of the
twentieth century with modifications in the plan frame and target to fit Chinese ethos.
From disorganised growth pattern to planned growth pattern through the concept of
creation of special economic zone for the industry and collectivisation of agricultural farms
for improving productivity were advocated. The “gang of four” had been liquidated and
efficient administrators were put in place. Since China had always been conscious of quality
education, qualified young technocrats were spotted and inducted to carry out the task of
Nation building. It was the genius of the Chinese leadership who thought about marrying the
communist disciplined central planning with market economy, the former to avoid wastage
and the latter to motivate, the first, to set national objectives and the latter, to achieve cost
effectiveness which would take the nation in its growth path. While setting target towards
achievement it achieved innovativeness and incentive to sell the surplus in the market and thus
gain from higher production. This was achieved out of experimentation and once this process
was proved to be stable the economic concept was spread not only in agriculture but also in
industry, which was stagnating because of lack of competition and incentives. After this
breakthrough and a great deal of sacrifice and torments China‟s economy takes a turn for the
better.
This success was further accelerated by the success in the foreign relations front and it
won the recognition of Canada and then that of USA, which was a diplomatic coupe. With the
acceptance by Canada and America, the door of the international community was open to
China and its potential market and educated and willing labour force made it greatly attractive
for investment. Foreign investment poured in after rules were relaxed to invite foreign capital.
The role of educated Chinese educated in USA or UK or in Europe, has also to be
appreciated. They returned to their country after finishing their education and these Chinese
set up business and industry, which was backed the government, which provided fiscal help
and administrative assistance. In fact, China has become a centre for R&D establishments of
the multinationals of the world. Unilever, Kodak and many American companies like IBM,

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the auto industry, etc., have set up both manufacturing and research institutions. This has led
to the increasing flow of foreign capital and a quantum jump in science and technology as also
in GDP and made Chinese a world power. In fact, the nation has outpaced India, which had
the advantage of being familiar with the international language and knowledge of English,
because of these steps by the Chinese government.
It is now recognised as the third most important economic power. The step that it has
taken to maximise production has witnessed Chinese goods flooding the market with
increasing trade balance. However, the quality aspect has been neglected as also the
environmental degradation that it has caused. The Chinese government is aware of it and has
taken steps to correct the imbalance. The new and young technocrat teams of Hu Jintao and
Wen Jiabao, with the increasing involvement of China in the world affairs the future for China
looks good with progress in every front except that of human rights. The disparity of income
and environment pollution is also being addressed.

“ASEAN” – a Brief Overview

The Association of South East Asian nations or ASEAN was established on 8th August
1967 in Bangkok with five original member countries - Indonesia, Malaysia, Philippines,
Singapore and Thailand. Brunei Darussalam joined on 8th January 1984, Vietnam on 28th
July 1995 had Laos and Myanmar on 23rd July 1997 and Cambodia on 30th April 1999. The
location of ASEAN indicates that it is situated in the most dynamic economic region of Asia
and its performance has been the part of Asian miracle. The growth rates of these countries
have been impressive and this has led Australia, India and other to seek observer status and is
participating in the growth process, though Thailand and Malaysia have performed as growth
leaders.
The reshaping of Thailand from an agricultural Buddhist country to an industrial nation as
also that of Malaysia have been identified as economic marvels in which Singapore joined in
right earnest. Though the original intention was to crate a trade block and a stable political
entity with economic growth the common fear of Communism was a common bond. Over the
years, the success of this effort has led to its growth and stability in this multicultural and
multilingual region with interstate and intrastate bond and trade leading to development and
availability of foreign capital for investment leading to plan industrialisation. The objectives
with which ASEAN was set up have been more than justified in respect of planned
development, mutual respect amongst different countries and communities, tolerance of
different cultures and assistance during natural and man made disaster like financial collapse
have been weathered with steady growth in the quality of life, education and earning per
capita have been achieved. The presentation covers detailed analysis of the political decisions
taken to preserve peace and improvement of foreign relations, the impact of USA and
European countries in improving investment and technological innovativeness of the ASEAN
countries, the role of Japan as an innovator and outsourcing agency all leading to growth
which has been laudable. Philippines joined later and have been a struggler but have picked up
space since with its political turmoil in the decline. The military rule of the Thailand may have
caused political disruptions, as also that of Myanmar notwithstanding, the growth and
improvement of quality of life has been creditable. India has been an investor and an active
partner in the progress and hence its observer status. ASEAN approach has thus been a
success and is so acknowledged.

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 Great Britain – 1950 Onwards

Great Britain was ravaged by two World Wars within 30 years and though the allies won
both the wars, the damage suffered by Great Britain was not only extensive but also
unparallel. Besides affecting it politically, it damaged its infrastructure, industrial base for
which it was famous and ruined it economically. It also lost its colony, which was spread all
over the world “Sun never sets on the British Empire”, the greatest Empire in the history of
the world. No wonder, therefore, that the period would be an age of continuation and survival.
And indeed that is what it has been. The fact that it has returned its place as the 5th/6th
economy in the world and is still an economic force as also a political and cultural force to
reckon with is by itself an achievement for its past performance. Britain had achieved great
heights in literature, law, culture, commerce, trade and industry. It had made great discoveries
in science and technology and given a lead to world development. But during the period under
consideration, its leadership position was lost though respect for the nation remains because of
its expertise and past contribution.
From devastation, through reconstruction, to establish a peaceful and going-on life style
was a massive task and this was completed through many hardships through various changes
in government and different alliances and pacts. Churchill led a conservative government and
tackled the Mau Mau uprising in Kenya (1952-56), tension in Cyprus (1954-59). Britain
joined North Atlantic Treaty Organisation (NATO) and participated in the Korean War for
United Nations (1950-53). However, the nationalisation (1956) of Suez Canal led to a crisis
and Eden‟s government, France and Israel invaded Egypt. However, Harold McMillan and Sir
Alexander Home, all Conservative leaders who also assisted in the formation of European
Free Trade Association (EFTA), succeeded opposition form United States led to withdrawal,
Sir Anthony Eden. European Economic Community was in the making and Britain sought
membership in 1961. Labour returned to power and under Harold Wilson (1964), a spate of
industries were nationalised and British economy went through a crisis with the proud sterling
unstable, negative balance of trade and growing inflation. To make matters worse,
independence of Rhodesia (Zimbabwe) became a serious issue as also the Catholic uprising in
Northern Ireland in 1968. Conservatives returned to power under Heath in 1970 and joined
European Community now European Union in 1973. Economic disaster set in one by one -
war in Middle East in 1973, coal miners‟ strike in 1974 and a locked election. But Harold
Wilson stepped in and settled miners‟ dispute, but was replaced by James Callahan in 1976.
Margaret Thatcher won the election for the conservatives in 1979 and again in 1983 and
Thatcherism started with a series of privatisation; promise to hand over Hong Kong in 1997
and starting of the Channel Project. Severe protest to Thatcher‟s removal by John Major who
returned to power for the Conservatives 1992, achieved peace in Ireland and in spite of
protests around joining the European Union and went about privatising British Railway. With
Irish turmoil again in 1997, Tony Blair, new labour, headed the new government handed over
Hong Kong to China and brokered peace in Ireland between Catholics and Protestants. Britain
launched Air strike against Iraq. The hereditary rule of House of Lords was changed and
fought war in Kosovo for United Nations. Won the elections in 2001 and again in 2004 with
reduced majority because of involvement in Iraq war. In 2005, the terror war started in
London and in Glasgow and Blair was replaced by Gordon Brown the Chancellor of
Exchequer.

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 It is to be noted that a series of major decisions are taken by Great Britain, joining
European Union, offering support to USA in Iraq, and also revised somewhat in massive
privatisation programme. However, the focus was gaining efficiency in operation and that was
Blair‟s contribution besides the developments in science and technology and improvement in
trade and commerce. Besides, the character of British industry was changed from
manufacturing to service and specialisation in financial and information services. Indeed
through hard times and strife, it had regained some of its lost stature and influence.

United States of America and NAFTA since 1950

The history of twentieth century is significant for United States of America politically,
socially, and economically as it emerged as the leading nation of the world and embraced the
responsibility of monitoring and policing the world affairs because of its off-balance and
influence in the World Bank. Since World War II, it has played a leading role in all spheres of
life and get involved in most military movements either stopping the Suez War or starting the
Cold War, Vietnam War, Gulf War, etc., and had to pay for this in terms of criticism and
terrorist attacks. During this period in the social plane it was a leader in many aspects,
specially, Martin Luther King‟s movement of social parity and abolition of Apartheid in South
Africa, were in its intervention was critical. The idea of American Peace Corps, the Kennedy
era, Racialism, Gun control, Education system, etc., and facing the baby booms and aging
problem, it has gone through a drastic change, mind-set which has directly led to the election
of the first Afro-American as its president. America, as he proclaimed, it is in the midst of
change and hope that is for the better. Economically steady growth and increasing and sloping
of proactive population had led to strengthening of the economic system. But too much of
dependence on its financial systems and that of the world on basic human ethics have led to
misdeeds which have to be warned against and this is a danger mark that has to be watched. It
is under the undisputed leader in the world economically defence-wise and partly politically
and this has bestowed on it leadership role. As has been said, “If USA sneezes, the world
catches cold”. As will be seen there is hardly any massive movement be it scientific, political
or economic where USA is not in the forefront and this has taxed its past policies of
“isolationism” and had changed its basic character, responsibility and policies.
Be that as it may, for the solution of economic ills, after the success of the European
Common Market suggested and nurtured by Jean Monnet of the French Civil Service who
spelt out the scheme to unify steel output, the world caught up with the concept of Free Trade
Associations of the neighbouring countries and the idea was picked up world over leading to
the formation of the ASEAN on political and economic matters, in the Far East, the Soviet
Block in Europe, and in Military matters by NATO, etc. America also followed it when
President Bush of America, President Salinas of Mexico and Prime Minister Brian Mulroney
of Canada signed the NAFTA agreement in 1992, which Bill Clinton signed into law in 1993
and was implemented in 1994. the Free Trade zone designated a group of countries that have
agreed to eliminate tariffs, quotas, preferences for most goods (if not all) between them, thus
leading to an economic integration. It was sought to encourage free trade between the North
American countries. It had two supplements - one dealing with environmental cooperation
(NAAEC) and the other with labour cooperation (NAALC). Since its operations, in spite of
many hurdles, free trade has increased substantially form 1993 to 2007 by 173% and the real
GDP growth of US – 48%; Mexico 40% and Canada 19%. Analysis of NAFTA operations by

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external critical agencies have however indicated that this has led to environmental
degradation, law abuse, trade in drugs, illegal smuggling of weapons, job loss in USA and
Canada, huge trade deficits for USA and Canada and increase in immigration. Mexico, on the
other hand, suffered agricultural setbacks, exploitation of cheap labour and became a dumping
ground of biochemical and hazardous waste. The jury is still out.

Germany - Political, Economic, Social and Management Journey since 1950

Germany was completely devastated in the Second World War and later with the advent
of the Cold War subdivided into two German states, the western Federal Republic of Germany
(FRG) and the eastern German Democratic Republic (GDR) with control being vested with
the western allies in the former and the Russia in control of the eastern sector. While the
former, as was to be expected, became a member of NATO and European Common Market
and the later became a member of the Warsaw Pact and adopted Russian methodology.
The relationship between the two was very strained as signified by the Berlin Wall (Iron
Wall), which sought to isolate and prevent crossover. After great suffering, both Germany
unified in 1990 though both had seats in UN since 1973. However the political situation in
East Germany, the collapse of Soviet Union and the end of the Cold War led to the unification
after “Octopolitics” ended. Today, the unification of Germany has led to the growth of its
economy and total integration with European political, economic and security and defence
integration.
Just as the defeat was all pervading and devastating, so was the recovery of Germany,
first FRG and then reunited Germany as really a miraculous phenomenon. It began its
economic reform in 1949 with “Social market economy” Ludwig Erhanard abolished Reich
Mark and introduced Deutsche Mark as a part of monetary reform with free and society
oriented economy growth, rate of industry was spectacular and rose to 2.5 times in 1960 from
the level of 1950 with 2 to 3 times GDP growth and drop of unemployment rate with growth
of wages and salary by 80% per year over the years. Germany had a trade surplus. It is to be
noted that the German people had the skill and given proper facilities and leadership achieved
wonders. The recast in the East Germany was the opposite and central planning method
followed. Repatriation burden gave no scope to the people to be involved in the growth
process and they were not motivated enough resulting in the collapse of the economy. In a
clinical decision, reunification of Germany was accepted, West Germany bore the burden
amidst political turmoil and ultimately after great sacrifice ended up to become the fifth
largest economy of the world and the largest in Europe. What a transformation led by free
economy, grit, skill and leadership.
Socially, the fatalities during the war had taken its toll and gender distribution had been
adversely affected. This affected both the education and social systems and the very quality of
life. With the ingress of foreign labour from Turkey and other adjacent areas, the work force
also became multinational and multicultural. Besides, the status of women had changed
requiring the change of law and in short, this all social practices had to be redrawn and
reshaped to take care of these changes. And this was done admirably.
It is to be noted the Germany had introduced the “saudustch” system of training, working
while learning and earning, and this practice had made Germany a centre of excellence. With
the Japanese success with Quality Management approach, Germany had a stiff competitor and
it had to modify its management structure to suit the changes. It introduced “organisational

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learning concept and this is what differentiates the growth of German management with
others. While the other movements are technical based, along with Japan, Germany was
respectively ethos base and organisation based respectively and thus it has been able to
maintain and to compete. Germans believes in simplistic approach” do not need complicated
organisation for making complicated parts and world is cartelising up to its benefits.

European Union

History
After the end of the Second World War, move towards European integration were seen by
many as the escape from the extreme forms of nationalism, which had devastated the
continent. One such attempt to unite Europeans was the European Coal and Steel Community,
which, while having the modest aim of centralized control of the previously national coal and
steel industries of the member states, were declared to be “as first step in the federation of
Europe”. The founding members of the Community were Belgium, France, Italy,
Luxembourg, The Netherlands and West Germany. In 1957, these six countries signed the
Treatise of Rome, which extended the earlier cooperation within the European Coal and Steel
Community and created the European Economic Community. The European Union was
formally established when the Maastricht Treaty came into force on 1 November 1993.
Objectives
Regional integration, single market, freedom of movement of people, goods, services and
capital, common policies on trade, agriculture, fisheries and regional development and a
common currency euro.
Growth performance in the European Union
A study from the Robert Schumann Foundation draws a critical picture of the European
economy, showing how it has lagged behind other large economies in the past ten years.
Although the EU remains a desirable place to live and work, offering a comfortable pre-capita
income to its citizens, Jean-Francois Jamet of the Schumann foundation reveals that, if GDP
growth per capita had been the same in Germany, France and in Italy as it has been in the
United States since 1991, the per capita GDP would be €3,841 higher in Germany, €1,805
higher in France and €3,665 higher in Italy. In 2000, European leaders agreed to stimulate
economic growth and employment and make Europe‟s economy the most competitive in the
world, to rival with US and rising economic powers China and India. However, the study
shows that average GDP growth in the EU between 1996 and 32005 remained low at around
2.37% - a long way from the 9% growth rate in China but also 1.6% down from the world
average. Nevertheless, Jamet concludes that EU citizens can be optimistic about their future,
as economic forecasts fro 2006 have been raised to 2.7% for the EU as a whole. These figures
remain below those in the US (3.6%) but the gap is starting to close.
Analysis of Performance
The European Innovation Scoreboard (EIS) provides a comparative assessment of the
innovation performance of EU Member States.
Sweden, Finland, Germany, Denmark and the UK are the Innovation leaders, with
innovation performance well above that of the EU average and all other countries. Of these
countries, Germany is improving its performance faster while Denmark is stagnating.
Austria, Ireland, Luxembourg, Belgium, France and the Netherlands are the Innovation
followers, with innovation performance below those of the innovation leaders but above that

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the EU average. Ireland‟s performance has been increasing fastest within this group, followed
by Austria.
Cyprus, Estonia, Slovenia, Czech Republic, Spain, Portugal, Greece and Italy are the
Moderate innovators, with innovation performance below the EU average. The trend in
Cyprus‟ innovation performance is well above the average for this group, followed by
Portugal, while Spain and Italy are not improving their relative position.
Malta, Hungary, Slovakia, Poland, Lithuania, Romania, Latvia and Bulgaria are the
Catching up countries with innovation performance well below the EU average. All of these
countries have been catching up, with the exception of Lithuania. Bulgaria and Romania have
been improving their performance the fastest. Finland, Ireland, Cyprus and Bulgaria are the
best improving EU countries within their peer group. The EU is improving its performance,
especially in human resources, broadband and venture capital and decreasing the innovation
gap with the US and Japan while holding its ground against the emerging economies.
EU Institutions and Other Bodies
The EU‟s decision-making process is general and the co-decision procedure in particular
involves three main institutions:
 The European Parliament (EP), which represents the EU‟s citizens and is directly elected by
them.
 The Council of the European Union, which represents the individual member states.
 The European Commission, which seeks to uphold the interests of the Union as a whole.
Linkages
The European Commission announced that it has come to an agreement with the countries
in the European Economic Area on linking their respective Emissions Trading systems,
making it the first international agreement of its kind for emissions trading. The newly linked
systems will cover 30 countries across the European continent.
The linkage of the EU emissions trading system with Norway, Iceland and Liechtenstein is
taking place through the incorporation of the EU ETS Directive (Directive 2003/87/EC as
amended) into the European Economic Area agreement. The Decision of the European
Economic Area Joint Committee on incorporation was taken. The next step is for national
approval procedures to be fulfilled in Norway, Iceland and Liechtenstein. The Commission
will work closely with the European Free Trade Area (EFTA). Surveillance Authority is its
assessment of EEA National Allocation Plans, using the same methods as the EU plans.
Future Perspective
Major challenges to the future of Europe lie ahead. If the great experiment succeeds, it
will create an economic, political and military force to pose real challenges to the United
States, with its enlargement to 25 countries and a population approaching 500 million.
Expansion will add 23% to the EU‟s land area and bring in 75 million additional citizens, with
a combined economy of $9.3 trillion approaching that of the US.
The most likely scenario for the future of the EU over the next decade and a half will be
slow but steady progress towards integration, held back by the rich diversity of cultures and
economic situations. A Greater Europe cannot be built without strong EU governance and
visionary leadership yet these are the two issues, which are notably missing at present.

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 South African Development Community

History
The origin of South African Development Community (SADC) lie in the 1960s and
1970s, when the leaders of majority-ruled countries and national liberation movements
coordinated their political diplomats and military struggles to bring an end to colonial and
white-minority rule in southern Africa. The immediate forerunner of the political and security
cooperation leg of today‟s SADC was the informal Front Line States (FLS) grouping. It was
formed in 1980. The adoption by nine majority-ruled southern African countries of the Lusaka
declaration on 1 April 1980 paved the way for the formal establishment of SADCC in April
1980. The founding members of SADCC and newly independent Namibia of the Windhoek
declaration and treaty establishing SADC transformed SADCC into SADC on 17 August 1992
with the adoption.
SCDC Priorities and Common Agenda
The SADC common agenda is based on various principles, such as development
orientation, subsidiary market integration and development, facilitation and promotion of trade
and investment and variable geometry.
The SADC common agenda includes –
 The promotion of sustainable and equitable economic growth and socio-economic
development that will ensure poverty alleviation with the ultimate objective of its
eradication.
 Promotion of common political values, systems and other shared values that are
transmitted through institutions which are democratic, legitimate and effective, and
 The consolidation and maintenance of democracy peace and security.
Current member states are Angola, Botswana, the Democratic Republic of Congo,
Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa,
Swaziland, United Republic of Tanzania, Zambia and Zimbabwe.
SADC headquarters are located in Gaborone, Botswana.
SADC structure and decision-making procedures
The organization has sleight principal bodies
The Summit comprising Heads of State or Heads of Government is at the top.
OPDS, the Counsel of Ministers, Tribunal. SADC National Committees (SNCs), and the
Secretariat.
Except for the Tribunal (based in Windhoek, Namibia), SNCs and Secretariat decision-
making is by consensus.
SADC and World
The companies around the world have exploited SADC countries though rich in minerals
and other resources. SADC faces a major challenge to handle this as a problem. The following
are some of the problems.
1. Petrol-mineral Boom: SADC countries consider this to be a curse because they have
already analysed that other countries will enter their land and extract it, exploiting the
country‟s resources.
2. Ecological debt: The debt accumulated by Northern Industrial Countries on account of
a. Resource Plundering

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 b. Environmental damage
c. Free occupation of environmental waste to deposit toxic waste.
3. Need for equitable electricity Distribution: World‟s cheapest electric price supplier is
South Africa and yet people of South Africa live in dark. Carbon Dioxide emission
rate is maximum in the world of South Africa because of cheap rate of electric supply
huge industries have been set up.
SADC and India
India is a country, which faces natural calamities such as droughts and floods. There are
many challenges for example 70% of India‟s and nearly some in SADC region is dry land,
which one needs to focus on. But that doesn‟t mean that one neglect industries also. SADC
has so much potential in minimal resources that can be exploited. SADC is on the right path
and has expressed very important areas of reforms. Concentration on those areas of good
competence is very important to overcome problems like poverty, food crisis and under
development. SADC (85%) and Indian (70%) population are related to agriculture and there is
a need to re-focus on agriculture Indo-SADC has rich resource good climate and water
resources. The concentration on agriculture along with industries requires a sustainable policy
in this region.
Confederation of Indian Industry (CII) has developed an integrated strategy for promoting
Indian exports into Africa, to supplement “Focus Africa” programme of the Ministry of
Commerce and Industry, India that involves –
 Identifying focus markets in Africa
 Identifying products with potential for Export to focus markets
 Seminars/Workshops for Export opportunities
 Trade delegations to focus countries] Participation in sector specific fairs in focus
countries
 Made in India/Enterprise Shows
Export-Import Bank of India (EXIM India) operates a number of financiering and support
programmes to facilitate and promote India‟s trade and Inve4stment in the African region. The
EXIM Bank operates a programme to support overseas investment by; Indian promoter
through joint venture/ wholly owned subsidies. Such support includes finance in select cases
direct participation in equity along with Indian promoter, to set5 up such ventures overseas.
With a view to enhancing competitiveness of India exporters as also identifying Indian trade
and investment potential.
SWOT Analysis
Strength: Huge resources and rare diamonds availability
Weakness: Unstable government and unstructured economy.
Opportunity: Big investment coming up and diversification of industries
Threat: Exploitation of resources and ecological debt

Conclusion
With the advent of more and more industries the countries under SADC are under a major
growth path. But, as excessive utilization and exploitation of vast resources may render it to
just a catalyst for growth and development of other nations restricting its own growth. Along
with it the amount of ecological debt it carries may leave it as a dumping ground of waste of
many developing nation.

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 As of Indian Business Perspective it‟s still an unchartered Territory, which need to be
well looked upon. The Indian Government should provider more flexibility for Indian Industry
to go and venture out there so that they can also get the Global Exposure.

Comparative Roles of China and India Regarding Trade

Right from ancient times till the establishment of the British Empire, Indian was famed
for her fabulous wealth. During the two hundred years of Mughal rule i.e. from the 16 th to the
`18th centuries the urbanization of India received a further impetus. Well-maintained roads
linking various parts of the country facilitated domestic tirade. River routes also facilitated
trade between different parts of the country. Foreign trade was in the hands of both local and
foreign markets. Trade with China and South East Asia was mainly carried on through the port
of Dacca.
Later on the Company increasingly monopolised the foreign trade in India thereby
reducing the mercantile community to bankruptcy. Not only did it cripple the indigenous
manufactures, but also it started importing various items such as cloth, utensils, horses, etc.
from England. This so adversely affected the Indian traders that they turned to other
professions for their livelihood. The great trading community, which had flourished during he
Mughal rule, had dwindled to non-existence by the end of the eighteenth century. Thus the
once glorious arts and crafts of India died a natural death.
If we were to travel back six or seven centuries, we would enter a wor45lod where China
was the most advanced e3conomy on earth and the most dynamic force in Asian trade. In
1400, China was in evsaery way superior to West: in technology, living standards, and global
influence. But the country became enveloped in a smug self-sufficiency, cultural and
economic inwardness, a closed and centralized political system and an antgi-commercial
culture. In the 15th century, China turned its back on the world economy. It even abandoned
naval defense4s.
The object of the project is to analyse the comparative roles of China and India regarding
trade, their contribution to the world trade and hence the future ahead.
Post liberalization of the Chinese economy in 1970sm and that of the Indian economy in
1991, both the country has come a long way. With GDP of India at around $1.5 trillion and
that of China at around $3.4 trillion, both the countries are today the prominent destinations of
all corporate. Thus China and India together attracts around 12.5 % of the world FDI.
To achieve the aforesaid growth India has mostly focused on agriculture and service
sector and China mostly on manufacturing sector. Thus service sector contributes to around
52.8% of the Indian economy and manufacturing sector to around 53% of the Chinese
economy. If India‟s booking IT sector, world class Financial System strong corporate
governance and educated youth galore, then China also provides physical infrastructure and
cost advantage.
But on the flip side, both India and China is increasingly becoming home to the world‟s
most dirty industries like petrochemicals, chemicals and some of the most polluting industries
and in the process degrading the quality of life.
Both the countries need a globally competitive economy but it should be eco-friendly,
sustainable and employment oriented. Hence more focus is required in agriculture and agro-
based industry, IT, Healthcare and education.

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 The sectoral analysis of Indian economy is a summary of the factors and industry sectors
that were reformed or added in the economic growth report of India covering different Indian
industries. The sectoral analysis of Indian economy focuses on the key points of the latest
reforms of Indian economy as make in the latest Government of India economic policy
statement. The sectoral analysis of Indian economy quantifies key parameters of Indian
economy. Further, the analysis of different sectors of Indian economy facilitates the
government to use it as the reference guide for the enactment of the future Indian economy
policy.
According to reports, productivity growth rate of Indian economy is estimated to be
around 8% and above until 2020 and at this rate India will become the second largest economy
in the world after China. Further, analysis of different Indian sectors suggests that India is one
of the top economic reformers worldwide. It simplified business registration, cross-border
trade, and payment of taxes, eased access to credit and strengthens investor‟s interest
India and China both countries are eyeing the world for trade, raw materials and the
export of goods and services. Each will have to carve out its own sphere of influence.
Wherever their markets are the same, each will have to strive not to get in the way of the
other.
India and China are at a similar juncture now. They should make an effort not to cut into
each other‟s areas of expertise and influence. In the long run, both countries need trade to
sustain their prosperity. Unfortunately the market for exports for both is the same i.e. the
United States and Europe, including Russia. Africa is a long way from becoming a profitable
market. Hence, if both are competing for the same market then norms for good behaviour have
to be established today.
If there are no norms and in there is an ongoing trade rivalry, then the West will cleverly
exploit both. It would be better for both not to get into a situation where the West dictates
terms. In the next 50 years, trade will lift India and China out of an economic stagnancy.
Trade in manufactured goods and services in return for technology, finance, food and
advanced goods from the West will continue for a long time.
In the last 15 years, China has moved to become the world‟s factory for cheap goods.
India slowly and steadily has moved to become the brain trust of the world with a host of
information technology, knowledge process outsourcing and business process outsourcing
services. Indian exports such as fine cotton textiles; gems and jewellery, pharmaceuticals and
motor parts can outperform China and neutralize its advantage.
India and China are the future giants in car industry; the big carmakers are moving more
production to India than China, drawn by lower labour costs and cheaper raw materials. India
now exports more vehicles than China, but in the mainland domestic sales are growing faster.
The irony is that the Chinese are trying to muscle into India‟s areas of advantage. This
presents a potential for much greater conflict that the present border row.
Aware of India‟s advantage in software, China first tried to build its software design
network from the ground up. They were marginally successful. Now, Chinese officials are
trying to sell India the idea of marrying Chinese hardware with Indian software – one does not
operate without the other. This is a clever move by the Chinese to learn and acquire Indian
software expertise without giving away their manufacturing advantage.
India has understood these moves and has stayed away from China‟s lucrative offers.
Only recently have Indian companies opened low-key workshops in China to develop

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software. China has not returned the favour by opening up hardware manufacture shops in
India, however.
If the Tibet and India-China border issues are resolved, India will worry less about a
looming Chinese military threat. The two countries are poised to take the leadership position
in the world. The Chinese manufacturing plus Indian service will create an ideal win-win
situation.
Recent Trends

Over the last sixty years or so, several new trends has influenced and shaped the growth
or otherwise of civilization, the prominent amongst these being: the development of Super
state/ organisations; the increase in the regional free trade/economic agreements and the tread
towards greater globalisation and the emergence of organised terrorism mostly based on
religious divides. Trade and economic aspiration led to the free trade agreements as also
globalisation, through which the development of super state/organisation grew out of the
realisation that with the shrinking of the globe because of technological advance, the need
arose from providing a platform for cultural discussion and monetory consensus generation
and implementation and the establishment of a super state cutting across the national borders.
Reference has been made to the formulation, establishment and operation of NAFTA,
ASEAN, SAARC, etc., and these institutions grew out of the successful experimentation of
European Common Market, which as indicated, developed under Charles Morut‟s leadership
from steel, and coal trade movements across natural borders to cover Europe and thus create
economic gains. European common market concept expand to form European Union when the
different constituent nations consented politically to agree to a common platform abjuring
national feelings to the greater interest of the area to improve and distribute economic gains
arising there from. It may be inferred that this development also grew from the need to the
balance of power block with the fall of Soviet Russia leaving USA as the sole representative
of world leadership.
While USA, Canada and Mexico launched NAFTA, ASEAN was launched in Far East in
Asia and the later has since grown in its membership with benefits and SAARC in South Asia
still struggling, the benefits have been mixed but the success of European Union with the
redefining of trade and commercial barriers, with narrow nationalism replaced by larger area
consideration such as Europe and the resultant growth of political power in the comity of
nations were the driving force for an united Europe.
Globalisation has been a buzzword of the recent time and has been advocated for
universal acceptance. If one looks in the past, as Nayan Chandra elaborates in his book Bound
Together, the task/phenomenon has been started and nurtured from the dawn of civilisation
when traders moved across trade routes with risks for gains. With growth of trade and increase
in competition there was an increasing attempt of identification of low cost inputs, a quality
skill source and increased volume to improve margins. This trend has continued and with
technology, distances have shortened, large volumes can be moved cost effectively and trade
and commerce has increased to lead to globalisation. Witness the importation form Africa,
ivory tusks of the soft variety to India where carving skills had developed and then the traders
took the finished products all over the world for profit. This was the start of globalisation and
worldwide commerce.
However, it was not an unmixed development as the world has learnt to its past. Along
with trade, goods and knowledge, local information and disease/bugs were transmitted leading

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to death and devastation. Trade and commerce was, therefore, a mixed blessing. In modern
times, with the ingress of technology, there has been a movement of obsolete technology
taking roots in underdeveloped or developing countries leading to atmospheric pollution as
has happened in China and is now entering India. Witness the issue of Olympic Games in
Beijing (China) when all the industrial units were closed down for considerable time. All dirty
industries are being slugged to developing countries leading to pollution. The transfer of
wealth through looting was yet another consequence of commerce. As it is said, globalisation
is a mixed blessing and yet the search for low cost inputs in either material inputs and skill
inputs will continue in the face of competition and this will continue until and unless the
mindset changes. Globalisation, therefore, has its supporter as also opponents and is a double
edge sword. Yet competition will carry it forward until the mindset changes and basic greed is
conquered. Globalisation has been analysed in detail and has proved to be beneficial yet not
controlled and monitored properly is likely to end in disaster.
It is specifically for this reason that a super-powered monitoring agency is necessary.
After the failure of League of Nations after World War I, after World War II, United Nations
was founded acting as a super state agency offering a platform for discussing, consensus and
implementation agency and it is carrying out its job within limitation but the problems are
increasing and often defying solutions. The continuing hatred based on religion and politics
has led to organised terrorism.
The destruction of the twin towers in New York in 9 September 2001 was a climax,
which shocked the world and the United States. Al Queda under Osama Bin Laden‟s
sponsorship and Zerahiri‟s guidance shook the might of USA and the world has been never
the same. Not that political murder was unknown, Gandhiji, Indira, Rajiv in India in other
states also murdered.but organised Jihad was a new feature; ongoing tussle between Islam and
Christianity since crusade flared up again in the western world adding to the ongoing tussle
between Israel and Palestinians, the terror movements in Britain, the fight in Afghanistan and
the Taliban movement have given organised terrorism a new format which is worrisome.
Civilization has to face this threat, as it is worrisome.
As indicated, the concept of super state is emerging. The role of United Nations and its
agencies like UNICEF, UNESCO, World Health Organisation, World Trade Organisation,
World Bank, IMF, and host of other are working on the issue of emerging consensus over
conflicting issues to evolve an acceptable order and its implementation. The sought after
solution is to be the “world order” as a total approach. Even globalisation is to be so directed
so that the scarce and dwindling resources are best utilised for the good of the world. The
issue, however, faces serious obstruction from the vested interest and the corporate greed
which does not allow total optimisation but seeks to maximise benefit for certain sectors and
leads to greater disparities and conflict. Indeed the present economic chaos has arisen
primarily because of corporate greed and shortsightedness and this requires addressing on a
priority basis otherwise the troughs and peaks and the resultant suffering will continue. That is
the challenge, which seeks an answer.
In recent times, the new and novel discoveries in the field of communication have
impacted the social structure in a massive way. This has to be taken to account. The ingress of
the computer, consumer electronics, mobiles and its variety has induced the wide world into a
village. Communication is widely spread and travel time has shrunk; goods can be procured
and commerce is all pervasive thus increased fresh demand and changing life style and the

254
innovations are non-ending and availability is easy. Rightly, this era is termed “Technology
Age” and will continue to be so in the near future.

255
 Chapter X

An Overview and Conclusion

The last 300 – 400 years have indicated massive growth in technology and physical
improvement in the standards of the fortunate sector. Man has conquered the power of the
atom, the outer space and today possesses technology of communication to the extent that the
world has been reduced to a village. Distances have lost their emphasis and true globalisation
leading to economic utilization of resources has been sought for. Technical excellence
abounds, and visual aspect is remarkable. The F.A. Cup was watched all over the world at the
same time! What was happening in Gaza was immediately reported all over the world. Plans
are drawn up for generation of cheap energy but unfortunately at the cost of environmental
degradation.
As Denise Gerbor opines “Our present civilisation is based materially on an
extraordinarily successful technology and spiritually practically nothing”. The thinkers of the
world have been warning about this unbalance and its adverse effect. The Global warming,
excessive consumption of fossil fuel, coal and oil, the maldistribution of wealth, the effluence
disposal and total poverty in pockets, are few of the problems that stare the civilization and
require immediate attention and addressing. It is in the acceptance and awareness of this
danger signal that the future of the civilization rests. Will the present civilization survive!
Only time can tell. Adequate notice has been received. Now it is the present civilization to act.
Living with harmony with nature consistent with sustained economic growth is possible as
has been illustrated by Dr. Varghese Kurian and Dr. B. V. Rao in their organisations “Amul”
and “Venkatesh Hatcheries” respective4ly in India and also in the Nordic countries, where
appropriate management methods have been developed and adopted with great interest. Dr. S.
Chowdhury‟s analysis has stressed this issue. It is now for the society to decide: to adopt the
path of peaceful sustained growth or follow the path of senseless greed driven destruction.
Looking back the saga of evolution can be subdivided into three distinct phases: the initial
prehistoric phase or the ancient phase up to the propagation of Christianity; the conflict the
second phase between the Aryan domination and the Muslim attempt to capture on power; the
renaissance of Europe initiation with the of development of Science and Technology and
Industrial Revolution as the hard. This last phase started with the identification of steam,
electricity and fuel oil usage and the discovery of Telephone, Telegraphy, natural power
sources like Coal, oil, and their derivatives, means of transportation, which influenced the
mode of life style and conspicuous consumption. This has led to the crisis of global warming,
atmospheric imbalance and rapid depletion of natural resources causing global concern.
Though there are serious negative repercussions of Technology on the evolutionary
process, the march of Scie4nce and Technology continues apace and new discoveries are
being made. Witness the development of Genetic Engineering, new Bio-science, the search for
renewable and sustainable energy sources; Digital approach to communication and
Information Technology, not to belittle the work being perused at CERN (Conseil Européen
pour la Recherche Nucléaire -European Organization for Nuclear Research) controlled LHC
(Large Hadron Collider) to follow the mysteries of the origin of Universe. The quest for
knowledge has been breath taking as also the breakthrough. The negative impact on the
environment has been realised as shown by the Copenhagen Conference on Climate change

256
and society / humanity has taken note of the serious ness of the situation. Only the future can
tell as to what happens.
The first phase saw the steady growth of skills both individual and collective, the
establishment of society and the concept of law and order, organisational structure,
development of trade and commerce, development of rudiments of science and rational
thinking: Aristotelian approach in Europe, in India the pristine Vedic Philosophy and in China
the realistic philosophy of Confucius which influenced the thinking of the leaders of the
period and influenced society at large. In Europe, in Greece, Socrates, Plato, Aristotle and his
disciple Alexander brought about a sea change in thinking which influenced the development
of European psyche and influenced the behaviour pattern and thinking of the Roman Empire
which impacted both in its success and failure. As it also happened in India with the
decadence of the magnificent Vedic religion rose the teaching of Buddhism which was widely
spread out by Ashoka the Great all over Asia `specially in China where it was considered as a
major pillar of three foundations – Confucianism, Lao Tseism and Buddhism which form the
Chinese society and thinking.
With Jesus‟ arrival in the scene and the spread of Christian thinking, the power of
kingship, which had prevailed, was greatly curtailed with Religious leaders emerging as power
shares. The preaching of Mohammed developed all alternative power centres the second phase
was thus a period with the ascendancy of the Muslim power and the decadency of Aryan
supremacy. Though identified as a “Dark Period” as argued before, the Muslim community
contributed positively to the development of society at large both in science, maritime
activities, jurisprudence, trade, navigation and in culture specially in Middle East, Africa, Far
East, India which it conquered and even in China. However the conflict between the Christian
and the Muslim, which started with the crusade movement, still continues though in a
modified form and has led to the growth of Terrorism, a great concern of the present day
world.
With the rise of the Renaissance in the 14th century in Europe there was a burst of positive
movement in education leading to establishment of Universities, research activities growth in
arts, science, trade, literature and literacy output which ultimately led to the positive growth of
science and that of technology which as indicated transformed the society. With the
establishment of the colonies and dreaming of the local wealth to the coloniser‟s accompanied
with their new gained expertise due to the new scientific knowledge and technology
completely reversed the distribution of wealth. India and China, which had been the wealthiest
countries in the first millennium, lost their position to the European countries and the impact
was so great that India became a poor country as also China. The third phase was therefore a
science and technology influenced period and this trend has continued even today. The quest
for knowledge and innovative discovery has radically changed the life style and is today
endeared to upset the environmental balance of the world. A rethink is urgently called for.
It should be realised however that the evolutionary process was not a smooth and
continuous are except in China and partially in India and in Egypt. In China, the original
inhabitants around the river bend consciously agreed to present a united front in China
although the languages had a difference. In fact the script developed under three streams,
ideograph as in China, Japan, Korea, pictograph as in Middle East Mesopotamia, Egypt and
strangely in Mexico and South Americas, and sound based as in India and in the Mitani‟s
European habitat in Europe. India, however, had a distinctive different approach in south -
Tamil and Telegu related and Prakrit and Sanskrit related in the North with many variants.

257
India, all along had been fractionated, glorifying its uniqueness of “Unity amongst Diversity”.
Language has always remained a great divide in India and has affected its development. The
move for a unified language like “Esperanto” is there a welcome move, though presently
English has emerged as a world language for all purposes.
The future of evolution, therefore, hinges on future action. Much damage has already been
done. Some scientists of merit have already raised the question of leaving our Earth for other
habitats in the planetary system. Is that the alternative! One wonders.
In the realm of Governance, Democracy backed up by adequate education. adult franchise,
transparency and right to information are the areas where major changes have occurred or are
in process seems to be the choice though racial changes are also under contemplation and
debate.
Regarding the economic scenario, capitalism continues to remains the major System,
though the recent depression in 2008 has raised many questions specially focusing on the
“greed” factor of the human beings as become the main cause. With the collapse of the
“Communism and lack of success of the “socialistic” approach; the search for a new system
has become necessary. The success of the system that has evolved in the Nordic countries
Norway, Sweden, Denmark and Finland which have successfully followed capitalist system
tempered by the essentials of socialism backed up by high level of education and social values
as a strong possibility. The search is on, Peter Drucker‟s of post capitalism governance is a
case in point.
But the omissions in the past neglecting the aspect of basic improvement of the
man/women itself, has or is coming to the fore and this is a vital and most important
dimension. Ethics value system, self control and regulatory activities as prescribed and
emphasised by the Vedic culture have to be inculcated as a priority and this view is now
receiving serious consideration. Let us hope for the best.
The development of man and management has been marked in detail and it has been
shown that man evolved management to help him in his work. As it varied over time, from
root gatherer, hunter, domesticator, agriculturist, fighter, trader, social actionist and reporter,
law maker, businessman, compiler, discoverer, adventurer, navigator, sea baron, a ruler and
other professions that developed before him and he chose to follow. It was in the middle of the
2nd millennium of the Christen Era that the technology and commence holding its way and so
also, man sought management tools to derive ways and means to run large organizations. The
commerce, governance, defence, communication and management ideas which had proved
themselves in actual practice were placed on record and management literature started. The
impetus to further improve the status came with the pioneering work of Prof. P. S. M.
Blackell‟s group in the UK where Blackell‟s Circus, a selected Group of specialized Scientists
played a major role in laying order and rules of winning the W.W.I. for the allies by applying
the optimization techniques developed by Scientists. Their success led to recognition of
management science and to growth in industrial applications especially in the booming Auto
Industries. Management has grown out of the basic science and is therefore rooted on solid
grounds and will remain so. As man faced more and more problems arising from the growth
of technology, management sciences will continue to develop and contribute. That has been
the case in the past and will so continue. The present development of technology in the
communication area, the near total acceptance of digitalization, the Cloud Computing, the
Robotics etc. on the one hand, the growth of nano science on the other, the Bioscience and the
explosive growth in space science and technology raising new problems in the areas of

258
management requiring solutions and thus extending the boundaries of management sciences
and its applications on a continual basis. As long as man operates with his intellectual ability
and to draw to improve, management sciences will continue to grow as has happened in the
past and so will in future.
While the importance and the laudable growth of management education has been
phenomenal with Harvard University of America and other Universities like Princeton,
Cambridge, Mellon, Columbia, Stanford etc. leading the pack, there has been a growing
criticism from Sociologists and some management Gurus like Sumantra Ghoshal and others
who strongly criticized the present context as producing “workshops of money who are
trained to earn profits at all costs”, They argued that the monetary scams had occurred in the
Western World before World War I, thereafter and again in a larger scale in the aftermath of
World War II and lately as seen in 2008 in the start of 21st Century which brought misery all
round happened because of greed and to make profit irrespective. The Business clears the
Banking Class and the management teacher took serious note of this development and
attempts have been made to reduce this emphasis to teach the importance of value, ethics and
corporate responsibility and law (both social and economic) to arrest this tendency. All
business schools now report back and expose its subdues to human values, corporate
governance and responsibility, the concepts of ethics and its importance in business deals, and
helps improve the laws ensuring improved governance. This was a classic Roman approach
that enacted laws and installed monetary systems to prevent wrong decision in business. As
results show that it has not been very successful with the derivative scams, the subprime crisis
and fraudulency that had taken place in spite of intensive auditing and monitoring.
Indian approach towards this problem had a touch of philosophy. Dr. Subir Chowdhury,
ex-Director of IIM Calcutta, set the ball rolling when he sponsored under the able guidance of
Dr. S. Chakraborty as Convener, Management Center of Human Values (MCHV) as opposed
to „Pschyco-Sociological approach” towards solving this problems (law, pschycology and
social sciences). They offered a “Pschyo-Philosophical approach (pschycology, philosophy in
improving the man). MCHV argued that if the man can be so trained to devoid himself of his
questionable desires (kam, krodth, love, moha, mad & madsarja) then the man himself would
prevent these base elements to create scams and other economic disruptions. This movement
has brought about a radical change in them especially in Scandinavian Country as also in the
Western World through the operational measures.
The other lessons which have been perplexed in the Bhaghabad Gita have been non-
attachment to results. It preaches that if you want peace in life you have to carry out your
work distantly without craving for results. “Karmayabhi, Adhikaarasthay, Ma
Falasukadachana”. You are only responsible for your work but you have no attachment to
results. There two central forces of Indian Philosophy aided by pranayama and meditation had
been part and parcel of distressing the heal by living exuberant region of the American armed
force and many management education campus. It is expected that the gems from Indian
Philosophy and the practice of Yoga will improve the quality of life of the management
graduate students, destined as they are to lead, and ethical behavior and governance issues will
be resolved in the future.
Management teaching and the science has therefore modified, adapted and expanded itself
to offer the best by drawing from the growth of basic sciences and the experiences gained
thereof. Presently as the high technology development era, digitization, cloud computing etc.
are changing the face of competition and it is expected that management sciences will rise to

259
the occasion as it has so far. The left side of Brain (the analytical aspect) has developed
exponentially but the right side of the Brain (the spiritual psychological side) has not been
used or developed in a balanced manner. As a philosopher said. “the analytical impact of
development in the guise of science has been remarkable but the spiritual side records no
outstanding improvement or positive change, and the disparity has led to many imbalances in
the society in the nature of mankind” and is heading the mankind and his knowledge to chaos
and destruction. There is an increasing awareness on this side. Only time will record the
results.

260
Chronological Tables

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 Appendix

LIST OF SELECTED INTERNATIONAL ORGANISATIONS

(UNDER UNITED NATIONS)
UNITED NATIONS
 The UN Specialized agencies (autonomous organizations joined to the UN through special
agreements) are inter-filed United Nations http://www.un.org/english/
Official Web Site Locator for the United Nations System of Organizations
http://www.unsystem.org/
UN Documentation Centre http://www.un.org/documents/
 Organization Chart of the United Nations System http://www.un.org/aboutun/chart.html
 Dag Hammarskjold Library http://www.un.org/Depts/dhl/
 Departments of the UN Secretariat http://www.un.org/Depts/index.html
 Other offices, programmes and regional commissions http://www.un.org/Depts/otherprgs.htm
 Global Issues on the UN Agenda http://www.un.org/partners/civil_society/agenda.htm Online
Publications http://www.un.org/Pubs/onlinepubs.htm
 Permanent Missions to the United Nations - New York http://www.undp.org/missions/
 The Specialized Agencies http://www.un.org/Overview/brief.html#agencies
 United Nations Cartographic Section
http://www.un.org/Depts/Cartographic/english/htmain.htm
 United Nations CyberSchoolBus Resource Source [easy-to-use, basic facts databases]
http://www.un.org/cyberschoolbus/index.asp
 United Nations News Centre http://www.un.org/News/
 United Nations Press Releases - Full Text Search http://www.un.org/News/Press/
 United Nations Office at Geneva http://www.unog.ch/
 United Nations Office at Vienna http://www.un.or.at/
 United Nations web sites organized by area of interest Economic and Social Development
http://www.un.org/esa/
 Subject Index to Economic and Social Development http://www.un.org/esa/subindex/

UNITED NATIONS REGIONS

 United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)
http://unescap.org/
Statistics Division http://unescap.org/stat/index.htm
 United Nations Economic and Social Commission for Western Asia (ESCWA)
http://www.escwa.org.lb/
 United Nations Economic Commission for Africa (ECA) http://www.uneca.org/
 United Nations Economic Commission for Europe (ECE) http://www.unece.org/
Statistical Data on Internet http://www.unece.org/stats/data.htm
 United Nations Economic Commission for Latin America and the Caribbean (ECLAC)
http://www.eclac.org/default.asp?idioma=IN
Statistical Information http://www.eclac.org/estadisticas/default.asp?idioma=IN

UNITED NATIONS AGENCIES

 United Nations Children's Fund (UNICEF) http://www.unicef.org/
UNICEF Statistics http://www.unicef.org/statis/
UNICEF Innocenti Research Centre http://www.unicef-icdc.org/
 United Nations Conference on Trade and Development (UNCTAD)
http://www.unctad.org/Templates/StartPage.asp?intItemID=2068&lang=1
International Trade Center http://www.intracen.org/

270
 United Nations Development Programme (UNDP) http://www.undp.org/
Human Development Report Statistics http://www.undp.org/hdro/statistics.html
Publications http://www.undp.org/dpa/publications/index.html
United Nations International Drug Control Programme http://www.undcp.org/
Research http://www.undcp.org/research.html
 United Nations Population Fund (UNFPA) http://www.unfpa.org/
The State of World Population http://www.unfpa.org/swp/swpmain.htm
United Nations Population Information Network http://www.un.org/popin/
Population/Reproductive Health Portal http://www.developmentgateway.org/pop
United Nations Statistics Division http://www.un.org/Depts/unsd/
WomenWatch: The UN internet gateway on the advancement and empowerment of women
http://www.un.org/womenwatch/
WomenWatch Statistics and Indicators http://www.un.org/womenwatch/resources/stats.htm
 United Nations Research Institute for Social Development (UNRISD)
http://www.unrisd.org/index.htm Publications http://www.unrisd.org/engindex/publ.htm
 Peace and Security http://www.un.org/peace/index.html
 United Nations Peacekeeping 1948-2002
http://www.un.org/Depts/dpko/dpko/timeline/index.html
 Human Rights http://www.un.org/rights/index.html
 Intergovernmental Panel on Climate Change (IPCC) http://www.ipcc.ch/index.html
 International Court of Justice (ICJ) http://www.icj-cij.org/
 International Criminal Court (ICC) http://www.icc-cpi.int/php/index.php
Rome Statute of the International Criminal Court http://www.un.org/law/icc/
 International Criminal Tribunal for the Former Yugoslavia http://www.un.org/icty/
 International Criminal Tribunal for Rwanda (ICTR) http://www.ictr.org/
 International Fund for Agricultural Development (IFAD) http://www.ifad.org/
Online Publications http://www.ifad.org/doc/index.htm
 Humanitarian Affairs http://www.un.org/ha/index.html
 Office of the UN High Representative for the Least Developed Countries, Landlocked
Developing Countries and Small Island Developing States (OHRLLS)
http://www.un.org/special-rep/ohrlls/ohrlls/default.htm
 Reliefweb http://www.reliefweb.int
 United Nations High Commissioner for Refugees (UNHCR) http://www.unhcr.ch/
 Statistics http://www.unhcr.ch/statist/main.htm
 REFWORLD (a collection of full-text databases)http://www.unhcr.ch/refworld/welcome.htm
 Maps http://www.unhcr.ch/refworld/maps/maps.htm
 International Law http://www.un.org/law/index.html
United Nations Crime and Justice Information Network http://www.uncjin.org/
Statistics and Research Sources http://www.uncjin.org/Statistics/statistics.html
UN Documents http://www.uncjin.org/Documents/documents.html
 United Nations Educational, Scientific and Cultural Organization (UNESCO)
http://www.unesco.org
UNESBIB: Bibliographic records of UNESCO documents and publications and Library
collections http://unesdoc.unesco.org/ulis/unesbib.html
UNESCO Institute for Statistics http://unescostat.unesco.org/uis/index.html
UNESDOC: Access to UNESCO full-text documents http://unesdoc.unesco.org/ulis/
 United Nations Industrial Development Organization (UNIDO) http://www.unido.org
Full-text reports available on-line http://www.unido.org/doc/100426.htmls

271
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 References - I
(Articles, Papers etc.)
Evolution of the Universe
Billions of Years Internet
Earth History Internet
Final frontier The Statesman 9 Apr 2008
Henri Fayol Internet
The Evolution of the Universe ed. David L Alles
The Evolution of the Universe P.J.E. Peebles, D. N. Schramm, E L
Turnmer & R.G. Kron (Scientific
American)
Universe Internet
Evolution of Man
Human Evolution Internet
Origin of Man D. N. Menton
Truth about the Origin of Man Internet
Civilization
Ancient Greece Internet
Ancient Rome Internet
Angkor Wat Internet
Aryan invasion Theory – Disproved Times of India 5 June 93
Aryan invasion Theory is a hoax: History revised Times of India 22 Aug 1993
Aryan Internet
Byzantine Empire Internet
Civilization World civilization identified with
five epochs of history Internet
David Frawley Internet
Freedom & Civilization : a Comparative Analysis Internet
Hammurabi‟s Babylon Internet
Indigenous Aryans (India) Internet
Indus Valley Civilization Internet
Lord Rama was born in 5114 BC Internet
Phoenicia Internet
Rama Internet
Soloman, Prophets & Punishment, Internet
The Aryan-Dravidian Controversy David Frawley
The Sumerians Internet
Upanishads and India to 500BCE Internet
Zoroastrians and Judaism to 400 BCE Internet

Religion
Hinduism Internet

273
Hinduism Nirod C. Chaudhuri
History of Hinduism Internet
History of Religion Internet
Important dates in the History of Religion Internet
India‟s Religion & Philosophy Internet

Political History
Ancient India and Hinduism to 1000 BCE Internet
British Empire Internet
China Internet
Colonial India Internet
Communism/Socialism vs Capitalism Julian Newcombe
Germany Internet
History of Europe Internet
History of India Vikas Kamath
History of United State Business Internet
Mozi Alternative Internet
Recent trends in History in Japan Kesaji Kobayashi

Economic History
Asian-based World Economy 1400-1500 Andre Gunder Frank
Economic History of China Internet
Economic History of France Internet
Economic History of Germany Internet
Economic History of India Internet
Economic History of Japan Internet
Economic History of United Kingdom Internet
Economic History of United States Internet
Economy of the United Kingdom Internet
The Zaibatsu of Japan: Financial Cliques Internet
Zaibatsu Internet

Trade & Commerce

Ancient Ship-building and Maritime Trade D. P. Rawal & Lalit Tiwari
Ancient Trade Internet
Archaeologists uncover Ancient Maritime
Spice route between India, Egypt Internet
History professor uncovers ancient trade route Internet
How Ancient Trade changed the world Heather Whipps
Maritime History Internet
Maritime Trade of Ancient Orissa Nirakar Mahalik
Roman and Indian Trade Internet
Roman Trade with India Internet
Shipbuilding Internet
Trade and barter in Ancient Greece Internet

274
Trade-Buddhism: Maritime „trade, Immigration
& the Buddhist landfall in Early Japan Internet

Science Technology and Industrial Revolution

Aryabhata Internet
Factory System Internet
History of Science Internet
History of Science: ancient Science Links Internet
Indian Astronomy Internet
Indian Mathematics Internet
Industrial Development in Republican China Kubo, Toro
Industrial History of Japan Internet
Industrial Revolution Arnold Toynbee
Lectures on the Industrial Revolution in England Arnold Toynbee
Leeds Woollen Workers Petition, 1798 Internet
Science & Technology in Ancient India Internet
Technological and Industrial History
of the United States Internet
The Scientific Evidence Internet

Management – Business
Arthashastra Internet
Business History with Special Reference to India Internet
Business of America John Steele Gordon
History of Business, Japan Internet
History of Business, USA Internet
History of Development of Factory System Internet
History of Management Internet
History of Management Internet
Kautilya : the Arthashastra Internet
Law Internet
Commercial Law Internet
Management Internet
Management Practices with the Evolution of Man Internet
Niccolo Machiavelli Internet
Notes on Arthasashtra, Machiavelli Internet
Small Business in US History Christopher Conte
The Prince Internet

Language and Written Script

Alphabet Internet
Colonial Constructs about Indian Languages Internet
Indo-Aryan Languages Internet
Language Internet
Linguistic History of India
Internet

275
 References - II
(Internet sources with web address)
Evolution of the Universe
Billions of Years - http://en.wikipedia.org//Timeline_of_evolution
Earth History - http://en.wikipedia.org/wiki/History_of_Earth
Final frontier - The Statesman 9 Apr 2008
Henri Fayol - http://en.wikipedia.org/wiki/Henri_Fayol
Evolution of the Universe ed. David L Alles-
- http://www.scribd.com/doc/4022074/The-Evolution-of-the-Universe
-
www.sciamdigital.com/index.cfm?fa=Products.ViewIssuePreview&ARTICLEI
D_CHAR=D7D45F2B-DFD2-4DB8-BBC0-4C...
Universe - http://en.wikipedia.org/wiki/Universe

Evolution of Man
Human Evolution - http//en.wikipedia.org/wiki/Human_evolution
Origin of Man - D. N. Menton - http://emporium.turnpike.net/C/cs/apeimage.htm
Truth about the Origin of Man - http://istina.rin.ru/eng/ufo/text/281.html
Civilization
Ancient Greece - http//en.wikipedia.org/wiki/Ancient_Greece
Ancient Rome - http//en.wikipedia.org/wiki/Ancient_Rome
Angkor Wat - http//en.wikipedia.org/wiki/Angkor_Wat
Aryan Invasion Theory – Disproved - Times of India 5 June 93
Aryan Invasion Theory is a hoax: History revised - Times of India 22 Aug 1993
Aryan - http//en.wikipedia.org/wiki/Aryan_race
Byzantine Empire - http//en.wikipedia.org/wiki/Byzantine_Empire
Civilization World civilization identified with five epochs of history
- http//en.wikipedia.org/wiki/Civilization
David Frawley - http//en.wikipedia.org/wiki/David_Frawley
Freedom & Civilization : a Comparative Analysis –
:http//www.Timatpublications.com/docs/Freedom _and_ Civilization .pdf
Hammurabi‟s Babylon - http//en.wikipedia.org/wiki/Hammurabi
Indus Valley Civilization - http//en.wikipedia.org/wiki/Indigenous_Aryans
Lord Rama was born in 5114 BC
-
timesofindia.indiatimes.com/cms.dll/html/uncomp/articleshow?msid=273107
Phoenicia http//en.wikipedia.org/wiki/Phoenicia
Rama http//en.wikipedia.org/wiki/Rama
Soloman, Prophets & Punishment, http//www.fsmitha.com/h1/ch04b.htm
The Aryan-Dravidian Controversy - David Frawley
- http//www.hindunet.org/hindu_history/ancient/aryan/aryan_frawley_1.html
The Sumerians www.wsu.edu/~dee/MESO/SUMER.HTM; ;
home.cfl.rr.com/crossland/AncientCivilizations/Middle_East_Civilizati
ons/Sumerians/sumerians.html

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Upanishads and India to 500BCE http//www.fsmitha.com/h1/ch05b-ind.htm
Zoroastrians and Judaism to 400 BCE http//www.fsmitha.com/h1/ch08.htm - 50k
Political History
Ancient India and Hinduism to 1000 BCE http//www.fsmitha.com/h1/ch05.htm - 25k
British Empire en.wikipedia.org/wiki/British_Empire
China en.wikipedia.org/wiki/China
Colonial India en.wikipedia.org/wiki/Colonial_India
Communism/Socialism vs Capitalism -Julian Newcombe -
lilt.ilstu.edu/rrpope/rrpopepwd/articles/communism.html
Germany http//en.wikipedia.org/wiki/Germany
History of Europe http//en.wikipedia.org/wiki/Category:History of Europe
History of India - Vikas Kamath
History of United State Business -
encarta.msn.com/encyclopedia_701610399/history_of_united_states_business.html
Mozi Alternative www.fsmitha.com/h1/ch06b-ch.html
Recent trends in History in Japan - Kesaji Kobayashi
www.thebhc.org/publications/BEHprint/v007/p0062-
p0070.pdf

Economic History
Asian-based World Economy 1400-1500 - Andre Gunder Frank
www.etext.org/Politics/Progressive.Sociologists/authors/Frank.Gunder/World_History_writin
gs
Economic History of China http//en.wikipedia.org/wiki/Economic_history_of_China
Economic History of France http//en.wikipedia.org/wiki/Economic_history_of_France
Economic History of Germany
http//en.wikipedia.org/wiki/Economic_history_of_Germany
Economic History of India http//en.wikipedia.org/wiki/Economic_history_of_India
Economic History of Japan http//en.wikipedia.org/wiki/Economic_history_of_Japan
Economic History of United Kingdom
http//en.wikipedia.org/wiki/Category:Economic_history_of_the_United_Kingdom
Economic History of United States
http//en.wikipedia.org/wiki/Economic_history_of_the_United_States
Economy of the United Kingdom
http//en.wikipedia.org/wiki/Economy_of_the_United_Kingdom
The Zaibatsu of Japan: Financial Cliques www.encyclopedia.com/doc/1O48-zaibatsu.html
Zaibatsu http//en.wikipedia.org/wiki/Zaibatsu -

Trade & Commerce

Ancient Ship-building and Maritime Trade D. P. Rawal & Lalit Tiwari
Ancient Trade www.mnsu.edu/emuseum/history/trade/
Archaeologists uncover Ancient Maritime
Spice route between India, Egypt
www.dickran.net/history/india_egypt_trade_route.html

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History professor uncovers ancient trade route www.udel.edu/PR/UDaily/01-
02/sidebotham061802.html
How Ancient Trade changed the world - Heather Whipps
www.livescience.com/history/080218-hs-trade.html -
Maritime History http//en.wikipedia.org/wiki/Maritime_history
Maritime Trade of Ancient Orissa - Nirakar Mahalik
orissagov.nic.in/e-magazine/Orissareview/Sept2004/englishPdf/maritime.pdf
Roman and Indian Trade www.mnsu.edu/emuseum/history/trade/romeindiantrade.htm
Roman Trade with India http//en.wikipedia.org/wiki/Roman_trade_with_India
Shipbuilding http//en.wikipedia.org/wiki/Shipbuilding
Trade and barter in Ancient Greece
www.middlebury.edu/~harris/Classics/EconomicsinGreece.html
Trade-Buddhism: Maritime „trade, Immigration
& the Buddhist landfall in Early Japan
www.questia.com/PM.qst;jsessionid=LpxZ1W1Jy6ZQ89wPCc5pJsTSNVrKmhy22kpKq
nxJKSQ9wfL4Q3Qd!2307961?a=o&d=...

Religion
Hinduism http//en.wikipedia.org/wiki/Hinduism
Hinduism - Nirod C. Chaudhuri
www.amazon.com/Hinduism-Religion-Oxford-India-Paperbacks/dp/0195640136
History of Hinduism http//en.wikipedia.org/wiki/History_of_Hinduism
History of Religion www.mapsofwar.com/ind/history-of-religion.html Important
dates in the History of Religion
www.cftech.com/BrainBank/OTHERREFERENCE/RELIGION/SigDatesInRelHis.html
India‟s Religion & Philosophy www.asianinfo.org/asianinfo/india/religion.htm
Science Technology and Industrial Revolution
Aryabhata http//en.wikipedia.org/wiki/Aryabhata
Factory System http//en.wikipedia.org/wiki/Factory_system
History of Science http//en.wikipedia.org/wiki/History_of_science
History of Science: ancient Science Links
http//en.wikipedia.org/wiki/Science_and_technology_in_ancient_India
www.intute.ac.uk/artsandhumanities/cgi-bin/browse.pl?id=200452
Indian Astronomy http//en.wikipedia.org/wiki/Indian_astronomy
Indian Mathematics http//en.wikipedia.org/wiki/Indian_mathematics
Industrial Development in Republican China - Kubo, Toro
21coe.ier.hit-u.ac.jp/information/schedule/schedulelog/S050/TK.pdf
Industrial History of Japan www.japan-guide.com/e/e2130.html;
http//en.wikipedia.org/wiki/Economic_history_of_Japan
Industrial Revolution - Arnold Toynbee
www.questia.com/library/book/the-industrial-revolution-by-arnold-toynbee.jsp
Lectures on the Industrial Revolution in England Arnold Toynbee
socserv.mcmaster.ca/econ/ugcm/3ll3/toynbee/indrev
Leeds Woollen Workers Petition, 1798 www.fordham.edu/halsall/mod/1786machines.html
Science & Technology in Ancient India

278
 http//en.wikipedia.org/wiki/Science_and_technology_in_ancient_India

Technological and Industrial History of the United States

http//en.wikipedia.org/wiki/Technology_and_industrial history_of_the_United_State
The Scientific Evidence http//en.wikipedia.org/wiki/Scientific_evidence
Management – Business
Arthashastra http//en.wikipedia.org/wiki/Arthashastra
www.indiayogi.com/courses/sw/workshop4.asp
Business History with Special Reference to India
www.indianmba.com/Faculty-column/FC720/fc720.html
Business of America - John Steele Gordon http//www.thebusinessofamericais business.biz/
History of Business, Japan http//ideas.repec.org/p/iim/iimawp/346.html
History of Business, USA www.sparticus.schoolnet.co.uk/USAbusiness.html
History of Development of Factory System
www.encyclopedia.com/doc/IO88-factorysystem.html
History of Management www.managementhelp.org/mgmnt/history.html
History of Management http//loverview/managaemenbt_history/mgmt_history.htm
Kautilya : the Arthashastra
www.wsu.edu.8080/-wkdciv/world_reader/world_civ_reader_1/arthashastra.html
Management http//en.wikipedia.org/wiki/management
Management Practices with the Evolution of Man
http//goliath.ecnext.com/coms2/gi_0199-1772921/the-Evolution-of-man-technology.html
Niccolo Machiavelli http//en.wikipedia.org/wiki/Machiavelli
Notes on Arthasashtra, Machiavelli
Small Business in US History - Christopher Conte
http//usinfo.state.gov/journals/ites/0106/ijee/coute.html
The Prince http//en/wikipedia.org/wiki/the_Prince

Language and Written Script

Alphabet http//en.wikipedia.org/wiki/Alphabet
Colonial Constructs about Indian Languages http//india_resource.tripod.com/indian-
languages
Indo-Aryan Languages http//en.wikipedia.org/wiki/indo-Aryan_languages
Language http//en.wikipedia.org/wiki/Language
Linguistic History of India http//en.wikipedia.org/wiki/Linguistic_history_of_India

279
 List of Plates & Pictures
1. ORIGIN: Universe, Close View of Universe, Development of Homo sapiens, Cave,
Stone Tools, Earthen Cup, Ancient Pottery, human remains in cave,
Mahenjodaro and Harappa, Ancient City, Rock Painting in Cave (France), Homa
Yagna in Modern Times, Sumerian Civilization, Hanging Garden of Babylon and
the Tower of Babel, Egyptian Pyramids, Egyptian Statues, Cleopatra, Egypsian
civilization, Papyrus, Greek civilization, Roman Coliseum (Amphitheatre).
2. Alexander the Great, Buddha, Ashoka Pillar – Lion Pillar, Remains of Nalanda
University, Hsuan-tsang, Indian Paining – Ajanta Fresco, Mughal and Rajasthani
Painting – Mahabharata and Ramayana,
3. China – Phi8losophy and Religion, Lao Tse, Confusicius, Modern China, Deng
Xianoping, Old and Modern, Japan – Dress and Tradition
4. Jesus Christ, Renaissance – Raphael, Michelangelo, Leonardo da Vinci, William
Shakespeare
5. MODE OF TRANSPORT, - Bullock Cart, Horse driven Carts, Ships – various
types – for river travel, for Sea Voyages, War Ships, Ships for transporting goods,
for transportation of passengers, Marin Compass,
6. POLITICAL: Fall if Bastille (French Revolution), Napoleon Bonaparte, Karl
Marx, Lenin, Mohandas Karamchand Gandhi, Netaji Subhas Chandra Bose,
Adolf Hitler, Mao Zedong,

7. ADVENTURER: Christopher Columbus, Vasco da Gama, Captain James Cook,

Ferdinand Magellan, Slave Trade,
8. SCIENTISTS: Galileo, Charles Darwin, Albert Einstein, Madame Maria Curie
(née Maria Sklodowska) , Ernest Rutherford, Homi J Bhabha, Alexander Graham
Bell, J. C. Bose, Thomas Alva Edison, Gregor Mendel, Atom Bombm Dr Kurl H
Debus
9. INDUSTRIAL SCIENTISTS: George Stephenson, Orville Wright and Wilbur
Wright, Andrew Carnegie, Henry Ford,
10. MANAGEMENT: Frederick Winslow Taylor, Henri Fayol, W. Edward Deming,
Joseph M. Juran, Genichi Taguchi, Kaoru Ishikawa, Peter Drucker,
Bill Gates, C. K. Prahlad, N. R. Narayana Murthy
11. INDIAN BUSINESSMAN: Jamnalal Bajaj, Jamshedji Tata and sons, Oil
Extraction
12. ENVIRONMENT – Global Warming – Al Gore
13. Trade Blocks: European Union.

280
Origin

Universe

281
 Close view of the Universe

Development of Homo sapiens

282
 Prehistoric Dwelling

Cave

Human remains in Cave

Prehistoric Remains of Craft

283
 Ancient Pottery (Egyptian)

Stone Tools

Rock Painting in Cave (France)

284
Remains of Mahenjodaro

Remains of Harappa

285
 Homa Yagna in Modern Times

A 16th century depiction of the Hanging Gardens

of Babylon (by Martin Heemskerck). The Tower
of Babel is visible in the background.

286
 Egyptian Pyramids
Papyrus

Egyptian Statues
Greek Civilization (Architecture)

\
A tomb relief depicts workers plowing
Roman Coliseum (Amphitheatre)
the fields, harvesting the crops, and
threshing the grain under the direction of
an overseer.

287
 Chinese Civilization

Philosophy and Religion

Lao Tse

Confucius

288
Alexander the Great

Ashoka Pillar – Lion Pillar

289
Buddha

Remains of Nalanda University

290
 Hsuan-tsang
Indian Paining

– Ajanta Fresco

Mughal and Rajasthani Painting

Mahabharata
(Krishna and Arjun on the chariot)

291
 Ramayana
Rama and Hanuman fighting Ravana

292
 Indian Tradition & Culture

Bharatanatyam Kathakali Kathak Manipuri

Dance

Tasnjore Madhubai Warli Folk

Paintings

Dresses

293
Japanese Tradition & Dress

Japanese Dress

294
Europe

Jesus Christ

295
 Renaissance

Raffaello Sanzio da Urbino (1483 –1520),

better known simply as Raphael, was an Italian painter

Michelangelo di Lodovico Buonarroti Simoni

better known simply as Michelangelo

296
Leonardo di ser Piero da Vinci
Better known simply as
Leonardo da Vinci

William Shakespeare

297
 Transport

A Palanquin

Animal pulled Cart

Bullock Cart
Use of Animal for Transportation

Horse Cart

Egyptian Boat

298
 Ship

Viking Ship

Egyptian Ship

299
 Marine Compass

Ship Building

300
 Political

Fall if Bastille (French Revolution)

Karl Marx

Napoleon Bonaparte
Lenin

301
Mohandas Karamchand Gandhi

Adolf Hitler

Netaji Subhas Chandra Bose,

302
 Adventurers

Christopher Columbus

Captain James Cook

Vasco da Gama

Ferdinand Magellan

303
SlaveTrade

Slave Market

304
 Scientists

Galileo Galilei

Charles Darwin

305
 Marie Skłodowska Curie
Better known as Madame Curie

Ernest Rutherford

306
Alexander Graham Bell

Thomas Alva Edison

307
Jagadish Chandra Bose

Homi J Bhaba

Albert Einstein

308
309
Gregor Mendel

310
Industrial Scientists

George Stephenson

Orville Wright

311
 Wilbur Wright

Andrew Carnegie

312
Henry Ford

313
 Management

Frederick Winslow Taylor

Henri Fayol

Joseph M. Juran

314
 Genichi Taguchi

Kaoru Ishikawa

W. Edwards Deming

315
 Peter Ferdinand Drucker

William Henry "Bill" Gates III

better known as Bill Gates

316
 Coimbatore Krishnarao Prahalad
better known as C. K. Prahalad

Nagavara Ramarao Narayana Murthy

better known as N.R. Narayana Murthy

317
 Indian Businessmen

Ghanshyam Deas Birla

Jamshetji Nusserwanji Tata

Jamnalal Bajaj

318
319
 List of Maps

1. Probable Outline of Europe and Western World

2. Median and Babylonian Empire
3. Land of the Hebrews
4. The Empire of Barbarians
5. The Empire of Darius
6. Ottoman empire
7. Frankish dominion in the time of Charles Mariel
8. The Europe of Jengis Khan
9. Britain, France and Spain in America in 1750
10. British Empire in 1815
11. British Commonwealth Map in 1998
12. ASEAN
13. European Union
14. SADC
15. MERCUSOR
16. NAFTA

320