Parenti's understanding of the decline of the textile industry in India is
correct.  Amiya Kumar Bagchi, the noted Calcutta based marxist economic
historian has written quite a bit on the subject.  His Political
Economy of Underdevelopment (Cambridge, 1982) was one of the best
texts I have come across.  Whether we agree with the (his) national-marxist 
position on imperialism or not, colonial exploitation had a significant
role to play in the future development of local economies.  In this
connection may I advance a question and an answer, since pen-l is familiar
with the Kerala story.  How come with leftist parties in West Bengal now
for over two decades continuously (and with far greater land reforms than
most states) has been unable to get the economy off the ground?  There are
many reasons (center-state relations, political instability, etc.)  But
when examined in the context of Kerala, we know that West Bengal, formerly
of Bengal province that included Dacca (now in Bangladesh), was perhaps
most exploited during early colonial phase, altering land tenure
dramatically that it locked the region to persistent deprivation and
poverty.  In contrast, Kerala was never really colonized.  Travancore
and Cochin remained autonomous allowing for public expenditures even
during colonial rule.  Reform movements (anti-caste) in the south was also
a factor in the 19th and twentieth century, and ironically in Bengal too
there was a renaissance.  Yet West Bengal today, albeit much less today, 
(not to mention Bangladesh) remain mired in classic forms of
underdevelopment.  I think it would not be very difficult to determine who
contributed more to the British empire, Kerala (Travancore) or Bengal.

Cheers, Anthony
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Anthony P. D'Costa
Associate Professor                             Ph: (253) 692-4462
Comparative International Development           Fax: (253) 692-5718             
University of Washington                        Box Number: 358436
1900 Commerce Street                            
Tacoma, WA 98402, USA
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