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Colonial and Post-Colonial Origins of Agrarian Development: the Case of Two Punjabs

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Colonial and Post-Colonial Origins of Agrarian Development: the Case of Two Punjabs University of Massachusetts Amherst ScholarWorks@UMass Amherst Doctoral Dissertations Dissertations and Theses November 2016 Colonial and Post-Colonial Origins of Agrarian Development: The Case of Two Punjabs Shahram Azhar University of Massachusetts Amherst Follow this and additional works at: https://scholarworks.umass.edu/dissertations_2 Part of the Economic History Commons, Growth and Development Commons, and the Political Economy Commons Recommended Citation Azhar, Shahram, "Colonial and Post-Colonial Origins of Agrarian Development: The Case of Two Punjabs" (2016). Doctoral Dissertations. 726. https://doi.org/10.7275/9043142.0 https://scholarworks.umass.edu/dissertations_2/726 This Open Access Dissertation is brought to you for free and open access by the Dissertations and Theses at ScholarWorks@UMass Amherst. It has been accepted for inclusion in Doctoral Dissertations by an authorized administrator of ScholarWorks@UMass Amherst. For more information, please contact [email protected]. THE COLONIAL AND POST COLONIAL ORIGINS OF AGRARIAN DEVELOPMENT: A CASE OF TWO PUNJABS A Dissertation Presented By SHAHRAM AZHAR Submitted to the Graduate School of the University of Massachusetts Amherst in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY September 2016 Economics © Copyright by Shahram Azhar 2016 All Rights Reserved THE COLONIAL AND POST COLONIAL ORIGINS OF AGRARIAN DEVELOPMENT: A CASE OF TWO PUNJABS A Dissertation Presented by SHAHRAM AZHAR Approved as to style and content by: ___________________________________________ Mwangi wa Gĩthĩnji, Co-Chair ___________________________________________ Deepankar Basu, Co-Chair ___________________________________________ Priyanka Srivastava, Member ___________________________ Michael Ash, Department Chair Economics For Stephen Resnick; a teacher, mentor, and comrade. i ACKNOWLEDGEMENTS This study owes a debt to many people from different parts of the world. I first started thinking about many of the ideas that eventually took shape here, as an activist in the Anjuman-e- Mazaareen Punjab, a union of landless peasants in Pakistan. It was via my interactions with these landless peasants that I first found out about the historical aspects of their oppression, rooted as it was, in colonial history. These landless ‘non-occupancy’ peasants, migrated from South India in the late nineteenth century on the promise that their descendants would be given permanent land rights after exactly one hundred years of the expiry of the temporary lease. Unfortunately, however, the Musharraf regime reneged on this contract in 1999, forcing the peasantry to adopt other means of struggle—which continue till the present. I would like to acknowledge and thank these comrades---who are too numerous to name here--- for the love, support, encouragement, and above all else---the first-hand information---that they have given me through the process. The study would be incomplete without the mentoring and support that I received at the Economics Department of the University of Massachusetts, Amherst. The department offered an environment of critical thinking that is difficult to find anywhere else, especially within the Economics profession. In particular, I would like to thank and dedicate this dissertation to the memory of our beloved Stephen Resnick who had an enormous epistemological influence. The dedication and love that he showed toward his students and their development as critical thinkers was exemplary and for this I cannot thank him enough. The study owes a great debt to the dissertation committee; Mwangi wa Githinji, for whom no discussion and no question was trivial, and who constantly encouraged me to challenge the boundaries of my imagination since the day I joined the Economics department. Mwangi introduced me to the ideas of post-colonial theory and its impact on agrarian economies. He v added new dimensions to my thinking by encouraging me to read literature far and beyond the economics discipline, and for this I owe him a debt of gratitude; Deepankar Basu, who was always there to help with concretizing ideas, and also helped me enormously with the statistical modelling in this dissertation; and Priyanka Srivastava, who added the crucial historical dimension which is usually missing in most economic work. The study would not have been possible without the critical support of these three people. I would also like to thank Dr. Ali Cheema at the Lahore University of Management Sciences (LUMS) and Dr. Takashi Kurosaki the Institute of Economic Research (IER) of Hitotsubashi University, Tokyo for helping with the collection of colonial, archival datasets. Other hard copies of the reports that were used to construct the datasets were collected from the Pakistan Institute of Development Economics and the Federal Bureau of Statistics, in Islamabad. I also want to acknowledge the support that I received during the course of this study from family and friends. I could not have sustained the long hours, weeks, and months of data mining and laborious data-punching from extinct colonial archives without the support of my wife, Ayesha, who stood beside me, like a comrade and friend throughout the tiring process. I would also like to thank Vamsi Vakulabaram, Danish Khan, Riko Rosete, and other colleagues at UMASS who offered critical advice on how to reformulate some of the ideas through important debates and discussions. To all these people I owe a debt of gratitude. vi ABSTRACT THE COLONIAL AND POST-COLONIAL ORIGINS OF AGRARIAN DEVELOPMENT: A CASE OF TWO PUNJABS SEPTEMBER, 2016 B.Sc (Hons), LAHORE UNIVERSITY OF MANAGEMENT SCIENCES M.Sc, UNIVERSITY OF WARWICK Ph.D., UNIVERSITY OF MASSACHUSETTS AMHERST Directed by: Associate Professor Mwangi wa Gĩthĩnji This study explores the colonial and post-colonial origins of agrarian development by looking at the role of historical institutions, class formations and the state (ICS) in shaping the process. It contributes to the “divergence debates” in economics, which make an attempt to explain the ‘fundamental causes’ of divergence between countries. While one strand of the divergence literature presents the process as being functional to ‘geography’, a second strand focuses on the institutional legacies of colonialism; what is common to both sets of explanations, however, is the view that future outcomes are completely pre-determined by one or another time- invariant factor, leading implicitly to the view that third-world countries are in fact prisoners of birth. This study challenges this assumption by pointing to the crucial role that is played by a third factor--- the agency of the post-colonial state and agrarian public policy---in mitigating the negative impact of inheriting a particularly bad geography or the misfortune of being colonized at a point in history. To do this, the study utilizes the natural experiment of the partition of the Punjab region in South Asia between India and Pakistan in 1947. While the two sides inherited relatively vii similar initial conditions---and hence must have converged given the ‘geography’ or ‘colonial institutions’ models of economic development---yet, a reversal of economic fortunes has taken place, so that the districts assigned to Indian Punjab systematically outperform the districts that were assigned to Pakistan at the time of partition. What explains this divergence? The study provides an answer to this conundrum by examining the evolution of institutional structures in each Punjab during the two qualitatively distinct periods, and in particular paying attention to the differential paths of post-colonial public policy across the two sides. The two-dimensional framework---with two distinct time periods (pre and post independence) and two states (Indian and Pakistani Punjab)--- allows me to build a much more holistic understanding of ICS and their colonial and post-colonial origins than is possible by looking at individual social formations without a counterfactual. Specifically, the study borrows an analogy from the empirical behavioral sciences where “twin studies” are often employed to differentiate between the impacts of “nature versus nurture”. Here, I employ a similar technique to separate out the impact of ‘historical’ and ‘geographical’ factors, from the role played by ‘post-colonial state policy’ in shaping current agricultural outcomes in the two Punjabs. Using this research design and original archival research on colonial records and statistical manuals, I design an exceptionally long panel data set on district-wise agricultural production and acreage, along with data on colonial transformation, infrastructural development, market formations and property rights, to show how colonial institutions shaped class structures in the twin states, and how these react back on the economy and the post-colonial state by shaping the investment choices (and yield achieved per unit land) of farmers in each Punjab. I pay specific attention to the institutional structure as being shaped by a “colonial entitlement system”: a complex product of class (as the organization of surplus in an economy) and power (organization of power) relations distributed by the colonial state. viii The study points to two ‘critical junctures’ in institutional history that shaped the evolution of the entitlement system during and after the colonial period. The first, beginning with the American Civil War in 1861 led to a severing of the existing global supply chain of cotton, which in turn, led to the emergence
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