Discuss the relationship between the emergence of the modern Indian Diaspora and the operations of the internationallabourmarket in the period marked by the rise of industrial capitalism.

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Discuss the relationship between the emergence of the modern Indian Diaspora and the operations of the international labour market in the period marked by the rise of industrial capitalism.

From the earliest times, Indians made their way across the seas to settle in South East Asia, Arabia and East Africa. Perhaps some travelled to even more distant shores, in the Pacific Ocean and beyond. Except for the movement of Tamils from the extreme south of India into Ceylon, the emigration was conducted on a relatively small scale. Those who settled round the boundaries of the Indian Ocean included scholars, scribes, priests and astrologers, but most of the overseas Indians were merchants, teachers artisans, serving men and slaves. It was not until the beginning of the nineteenth century that a mass migration was organised to meet the demands of imperial trade and development in the aftermath of African slavery.

The emergence of the modern Indian Diaspora was a simultaneous movement that coincided with the rise of industrial capitalism in Europe. The rise of industrial capitalism ended the period of African slave labour as the main mechanism of labour. The Indian Diaspora of the modern period was marked by the penetration of Industrial Capitalism in Europe, and was the most crucial phase of the diasporic movement of Indians.

Emerging out of Europe, capitalism became the dominant economic system of the modern era. Capitalism expanded under the concept of trade and mercantile negotiations, so much so that labour was integrated into the modern capitalist market. By the 1800’s, capitalism began to expand into a globalised system of economic activity, and besides trade in tangible products, labour became one of the characteristic qualities of the mercantile capitalism phase. The main form of labour allocations was un-free African labour during the period and it was consolidated during the fifteenth century to 1833, within the British Imperial system.

The displacement of mercantile capitalism with the rise and eventual dominance of Industrial capitalism by the 1833 witnessed a revolution in the operations of the international labour market. Industrial capitalism drive towards a more economic system of labour exploitations , was an important facet of the new face of capitalism. Industrial capitalism was based on the efficiency of production methods. Slave labour was deemed an unprofitable system. It had become outmoded and inefficient as it was only needed for specific periods of the year – the harvesting and production phases – and planters had to suffer the cost of maintaining a slave labour force for the full year. The cost of sustaining slaves throughout the year was more expensive than a wage labour force.

The rise of industrial capitalism forced out the institution of African labour; however, the need for a labour supply that replicated the sevile system of slavery endured. It was the rise of industrial capitalism that forged a new relationship with a modern Indian diasporic movement of servile, unfree labour, which came to be characterised as a system referred to as indentureship. It is in this period that the global capitalist development of Indian indentured labour became the mainstay of the international labour market of unfree, servile labour.  

This was the genesis of the modern Indian diasporic movement. However, this need for labour by the mechanics of capitalism does not answer the question as to how come in the period of industrial capitalism, the indentureship system was expanded to territories that never employed the use of African unfree labour. Indian indentureship was taken to areas such as South Africa, Fiji and Australia where the institution of slavery never existed.

The answer lies in the fact that the construction of this system existed within, and yet independent of slavery. It was created to service the colonial need for labour throughout the world’s capitalist economies. The system was an international institution of labour exploitation; it was not refined to plantation enclaves, but it touched the shores of lands that never saw the existence of slave labour. The system had a global reach; it was created to fulfill capitalism’s operational need for labour. It was an organised system of labour exploitation rather than a transferring of British subjects from one part of the British Empire to another. It was a mechanism for supplying the international labour market with a source of servile, unfree labour.

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This type of labour was ideally suited to the needs of industrial capitalism. It operated as a workforce under conditions of slavery. The vacuum created by slavery was filled by a more economic institution, according to the requirements of industrial capitalism. The maintenance of the indentured labour population was not the responsibility of the planter class. Instead, it marked a new development in the international labour situation, as a modern form of wage employment developed under a system of servitude. This system represented a transitory period between the rise of industrial capitalism and the emergence of finance capitalism in 1917. ...

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