Drain of wealth
- September 25, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Subject: History
Context:
British charity organisation National Trust released a report on September 22 stating that many historical properties it manages have a colonial past and links to slavery.The report states that when the employees returned, they also flooded Britain with “associated objects, furnishing its homes, forging fashions, identities and cultural change”.
Concept:
- DadabhaiNaoroji was among the key proponents of the ‘Drain Theory’, disseminating it in his 1901 book ‘Poverty and Un-British Rule in India’.
- Naoroji argued that imperial Britain was draining away India’s wealth to itself through exploitative economic policies, including
- India’s rule by foreigners
- the heavy financial burden of the British civil and military apparatus in India
- the exploitation of the country due to free trade
- non-Indians taking away the money that they earned in India
- the interest that India paid on its public debt held in Britain.