INDIA'S FORGOTTEN WAR – blogging naxalism.

Economics of War

with 3 comments

Here are a couple of good articles on the economic consequences of the Maoist insurgency:

Shanthie Mariet D’Souza and Bibhu Prasad Routray provide a summary of the estimated income that the Naxalites bring in through ‘taxation’. The numbers (if correct) are startling and paint a picture of a wealthy insurgency capable of raising enough funds to procure significant quantities of armaments.

Robert Cutler (currently a fellow at Carleton University) analyses the effect that the insurgency may have on the future macro-economic prospects of India. This is an issue which (as far as I’m aware) has not been examined before. His argument is, basically, that while the insurgency has not directly affected the overall growth of the country, the fact that the insurgency is occuring in a mineral rich area of the country is indirectly preventing optimal growth rates.

Additionally he claims that if the insurgency continues, it will continue to have a destabilising effect on the country. This may be noticed by investors.

I’m not sure I agree with all of Robert Cutler’s arguments, but it is worth a read. I think I’ll get in touch with him.


Written by Michael

May 20, 2010 at 6:19 pm

3 Responses

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  1. well Michael, Shanthie Mariet D’Souza and Bibhu Prasad Routray’s piece is quite interesting and would help the researchers.

    on the other hand, Cutler’s thesis regarding Naxalite movement and future macroeconomic prospects of India is a fair one but as far as I am concerned, won’t consider it novel or exemplary.

    In fact, I have published a piece in the Diplomatic Courier on this aspect. The edited piece can be looked at here (

    Moreover, Cutler ascribes the fiasco at Singur to Naxalite activity, which is far from the truth. Actually it was a mass agitation engineered to an extent by the major opposition party (Trinamool Congress) of WEST Bengal.

    Uddipan Mukherjee

    May 21, 2010 at 3:36 pm

  2. True. I take your point about Singur… especially as Naxalite involvement has only been alleged by the CPM.


    May 22, 2010 at 2:11 pm

  3. in fact, Cutler could have pointed out the Nandigram issue against the Salim group of Indonesia……….it was to a possible extent fomented by the Maoists; which they later even corroborated.

    its natural for the deprived & the marginalised to squeal and the Maoists are always on the lookout for such opportunities. You must have noticed the recent agitation against POSCO in Orissa. If one says that it has been fully engineered by the Maoists, then it shall not be totally true. The disgruntlement was there; the Maoists having a proper Party Structure is providing the path.

    And CPM?, well they have bungled. They now don’t know whom to blame.. Trinamool or the Maoists.

    Uddipan Mukherjee

    May 22, 2010 at 2:26 pm

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