TRIWTB TRANSPBR AND BALANCE OP PAYMENTS 55 as in the case of colony: in short, the mismatch between commodities with shrinking domestic demand, and exportable commodities which expand to effect the transfer, is likely to be much less severe a problem. Second, insofar as the advanced industrial country has unutilised production capacities, the transfer itself can augment domestic production if it is financed by borrowing from banks or deficit financing, which can be done safely, rather than Irom taxation. In short the resources transferred in such a situation can come out of additional, rather than existing production. Third, and this is really the crucial difference, we are talking in the case of Germany for example, of a sovereign government which, even when under the obligation to effect a unilateral transfer abroad, can neverthless order its fiscal, monetary and trade policies as it deems fit to do the least damage to the economy. In the case of a colonial economy like India, it is not just that unilateral transfers occurred decade after decade: the entire structure of production, trade, and finance was ordered by the government with the exclusive object of effecting transfers to the besc advantage of the metropolitan country. This is an important reason why Hari and his descendants remained so poor, while the products of their labour earned over the years billions of pounds in foreign exchange for the benefit of the British economoy. 1 P Mantoux, The Industrial Revolution in the 18 th Century, London, Cape, 1961, p 201. 2 U Patnaik "India and Blitam: Primary Accumulation in Relation to Industrial Development", Paper presented to Seminar on Karl Mary. and the Analysis of Indian Society, New Delhi, October 1983. 3 Phyllis Deane, The First Industrial Revolution^ Cambridge University Press, 1967. 4 Quoted in R C Dntt, Economic History of India Vol 1, Publications Division Government of India, 1960. 5 Christopher Hill, Reformation to Industrial Revolution^ Pelican, 1967. 6 CEHI, p 937. 7 CEHl p 847.