ICSE Class 8 Answered

After victory in the Battle of Buxar, in 1765 Robert Clive devised a new system of administration in Bengal called 'Dual Government'. According to this system, the British had the political and economic powers but had no administrative responsibilities. They had absolute military power and the right to collect revenue in Bengal.  On the other hand, the Nawab had to shoulder all the responsibilities of the administration with no real power. He also did not had any economic resources as the revenue was collected by the Company. Only a small part of the revenue was given to the nawab which was not adequate to administer law and order. This dual nature of power caused many problems for the Nawab as he had to supervise the administration, the criminal justice system and the maintenance of law and order without any real power. 

People suffered due to the dual government because 

1. Revenue was collected by greedy and corrupt Indian officials who reduced the peasants to conditions of utter misery.
2. Conditions of the people got worse because of a terrible famine where one-third of the population perished.
3. Nobody paid attention to people affected, neither the Nawab nor the Company.
4. Hence, administration and economy began to collapse