Abstract

The British's greatest shift in the social system was to substitute the aristocracy of the warlord with a dominant administration and military. The East India Company's conventional system was to pay its workers comparatively small wages and to encourage them to raise their private transactions revenue. This scheme performed reasonably well before the invasion of Bengal but was insufficient to compensate officials in a broad colonial empire, because (a) very little benefit was charged to people instead of to the company's boxes and (b) over-rapid short-term policies weakened the economy's productive potential and possibly impelled local communities. Clive had a 'dual' scheme, that is to say. Business control and Nawab puppet. Warren Hastings has displaced Nawab and taken over direct government but has maintained Indian officials

Key words: (a) very little benefit was charged to people instead of to the company's boxes and (b) over-rapid short-term policies weakened the economy's productive potential and possibly impelled local communities.