gareth.jones Section nameDepartment of Economics Development Economics Cluster Labour and Household Economics Cluster The Political Economy of Indian Indentured Labour in the 19th Century by Neha Hui and Uma Kambhampati Discussion Paper No. 2020-16 Department of Economics University of Reading Whiteknights Reading RG6 6AA United Kingdom www.reading.ac.uk © Department of Economics, University of Reading 2020 1 The Political Economy of Indian Indentured Labour in the 19th Century Neha Hui1, Uma Kambhampati2 Abstract Abolition of slavery in British Colonies led to the facilitation of Indian indentured migration by the British Government. This form of migration came about when the discourse of economic freedom and individual liberty strongly resonated in British political-economy circles, following the work of Smith and Mill. We analyse how unfreedom in indentured labour was rationalised when the rhetoric of freedom was essential to the dominant intellectual milieu. We argue that indentured labour was a compromise between slavery and free labour because it facilitated free trade and some freedom of movement but was harder to justify in terms of individual liberty. Keywords: Classical political economy; Economic freedom; Individual liberty; Indentured labour; Slavery; Migration; Adam Smith; JS Mill JEL codes: B12, B13, J61, J70, N43, N36 1 University of Reading. Corresponding author, email:
[email protected] 2 University of Reading. 2 1. Introduction Political economic thought of the 19th century faced a contradiction between various freedoms (free trade, freedom of movement of labour across and within countries and freedom to enter and exit labour contracts). Economic freedom at the level of individual agents implied free movement and the capacity to buy and sell labour power.