Class 3

Evaluation of Industrial Revolution

1. Impact on Economy:
1. Medium of exchange: from barter to bitcoin
2. Banking sector: from banking to net banking
3. Industrial evolution gave a drastic turn to modern economy.
2. Impact on polity
1. Capitalism: Gave promotion to mercantilism
2. Mercantilism: gave promotion to imperialism and Colonialism
3. Imperialism and colonialism: gave promotion to nationalism
4. Nationalism: in turn strengthened capitalism

5.
1. Capitalism:
1. had its beginning from 15th century
2. means rotation of wealth
3. Two key features
1. Profit at any cost
2. Production depending on the market
4. Banks facilitates the rotation of wealth
2. Mercantilism
1. generally means to save the wealth
2. it was a economic phenomenon which was prominent In 16-18
century
3. It says that every nation has a “Limited wealth”
1. It means foreign reserves in today’s time. In old days it
was gold and silver.
4. This wealth is to be saved to promote growth and development.
5. How to save this wealth ?
1. Directly: To regulate EXIM policy
1. Export-Import Policy: Maximum export and
minimum import. This policy failed on practical
front as it is not possible practically.
2. Indirectly: To occupy the areas of raw material and
market. This led to mercantile wars. Eg: Anglo-Carnatic
 war in India between English and French to decide who
will be master of India.
6. These mercantile wars gave rise to imperialism and colonialism
3. Imperialism and Colonialism:
1. Imperialism:
1. Whenever a country controls the economy and polity of
an area outside its territory for the benefit of the mother
country, it is called as Imperialism.
2. Eg: India from 1757 to 1947. The economy and polity of
India was controlled by Britain in 3 phases:
1. 1757-1813:
1. In England: Industrial revolution had started
in England, so they required Capital which
was provided by India.
2. In India: “Drain of Wealth” start from India
(1757 to 1764)
2. 1813-1856:
1. In England: Industries have established
themselves. Now they required raw material
and market. Now “Free Trade” was the need
between British and India. British regulated
the EXIM policy in such a way that India
became farmhouse of Industrial Britain.
They purchased raw material from India at
low rates and sold finished products are
higher rates
3. 1856-1947:
1. This was the peak of Industrialisation in
Britain. Labour in now costly and internal
market is exhausted in Britain.
2. Now they plundered India through
Investment: India was a safe destination for
investment. They made Railways etc.
3. British gov neglected Indian bankers(who
were ready to provide on lower interest rate)
and took money from British bankers for
developmental projects like railways. And so
the initial revenue was taken back to British
and this was plunder through investment.
2. Colonialism:
1. From 1757 to 1947 India was forced to sacrificed its
interest for the interest of Britain. This led to
unemployment, poverty and economic backwardness.
2. This is totality was called colonialism
3. Imperialism was the action and colonialism was the
outcome.
4. Nationalism
1. Imperialism and colonialism led to Nationalism (not nation state)
2. How did this happen
 1. 1765: EIC occupied Bengal
2. 1799: EIC conquered south India (4th Anglo-Mysore War)
3. 1816: EIC conquered Marathas
4. 1843: Sindh was occupied
5. 1848: Punjab was occupied
6. 1856: Awadh was occupied
3. One by one everybody was conquered. Slowly they went
through suppression and exploitation which became a unifying
force on the grounds on nationalism
4. Eg: American Colonies, India, China
5. Communism:
1. Society based on the principle of commune
2. when capitalism was born in 15th century, the immediate
enemy of capitalism was Feudalism
3. Capitalism gave dreams to common people like Liberty,
Equality, Fraternity. Then these common people suppressed
feudalism. Eg: French Revolution in 1789. But industrial
revolution brought more suffering to common people
4. Nedd Lud: The labour leader in britain in last phase of 18th
century. He starts targeting the industries. This was known as
"Luddite Movement"
5. From here starts communism and socialism. in 2nd half of 19th
Century, Communism and Socialism got its prophet, Karl Marx.

What is Polity ? It is the guardian of Economy. So wherever one party has control over
polity, it also has control over economy.

Karl Marx (Prophet of Communism and Socialism)

1. Prophet: A person who knows real reason for trouble. He also knows the real
solution for it.
2. Why is he the prophet ?
1. Karl Marx says that "Exploitation is the destiny of working class" . How?
1. A capitalist will reduce the wages of working class to increase his
profits. A large share of profit comes from labour charge. so working
class is destined to be exploited.
2. What is the reason for this destiny ?
1. Marx said "the section in the society which controls the means of
production is also the ruling class in the society."

2.
3. Therefor the working class is without economic and political power.
 So they are destined for exploitation.
3. Marx tells the formula to stop this exploitation.
1. he says that the working class should unite and take political power in
their hand to end the concept of private property and this will be the
end of Capitalism.
2. If Capitalism will die, mercantilism will die, imperialism and colonialism
will die, nationalism will die.
3. Marx said this will establish a classless and stateless society and that
will be called as “Marxism”