6.4 global economic development

Global Economic Development (1750-1900)

Essential Question

  • How did environmental factors contribute to the global economy between 1750 and 1900?

Economic Motives of Imperialism

  • Economics as a Driving Force:
    • Economic motivations played a crucial role in imperialism, particularly for Britain and other industrialized nations.
    • Rapid industrialization in Britain demanded raw materials like cotton, copper, and rubber, creating dependencies on regions in Asia and Africa.
    • American agriculture turned to South America for fertilizers (notably, guano).
    • Colonial subjects served as both suppliers of raw materials and consumers of manufactured goods.
    • Labor from colonial regions was exploited at low wages for large-scale projects (e.g., railroads).

Technological Developments

  • Railroads:

    • Revolutionized transportation, enabling quick transfer of goods from colonies to European markets.
    • Most prior transportation modes were inefficient; railroads reduced costs and improved access to markets.
    • Credited with benefiting colonies, but primarily served colonizers' interests by facilitating resource extraction.
    • British projects in India exemplified this, creating extensive networks for easier governance and resource export.
  • Steamships:

    • Early steamships had limited range due to coal needs but later became revolutionary for long-distance transport.
    • Innovations allowed for the shipping of perishables, increasing trade.
  • Telegraph:

    • Invented in 1832, drastically changed communication dynamics; enabled instantaneous news delivery.
    • Telegraph lines commonly aligned with railroad tracks.
    • Long-distance communications expanded, facilitating better control over colonies and quicker response times.

Agricultural Products and Cash Crops

  • Transition to Cash Crops:

    • Indigenous subsistence farming shifted to cash crops (e.g., tea, coffee, sugar) under imperial pressure, negatively impacting food security.
    • Example: Cattle ranches in South America began exporting beef to European markets due to rising middle-class demands.
    • Guano became a major export from Peru, significantly influencing agricultural practices and economies in colonized regions.
  • Cash Crop Impacts:

    • As imperial powers promoted cash crops, food prices increased. Farmers often lost food production capabilities, leading to famine risks.

Raw Materials

  • Materials Driving Economic Exploitation:

    • Colonies were often transformed into export economies with focuses on raw material production.
    • Example - Cotton:
    • Shifted from Indian textile production to American cotton post-1721 ban on Indian cotton textiles.
    • The American Civil War forced a global scramble for cotton alternatives, with Egypt rising as a prime producer.
    • Example - Rubber:
    • Evolution of rubber technology led to increased demands, exploitation of indigenous peoples, and establishment of rubber plantations in various regions.
    • Example - Palm Oil and Ivory:
    • Both became significant products due to their various uses in industrial and consumer contexts.
  • Mineral Resources:

    • Global demand for minerals led to resource extraction from regions like Mexico (silver), Chile (copper), and Southern Africa (gold and diamonds).
    • Ceil Rhodes was a key figure in the diamond trade, establishing vast control over Africa's resources and promoting colonization.

Global Consequences of Economic Policies

  • Commercial Extraction Consequences:
    • Focus on cash crops led to agricultural monocultures, threatening biodiversity and soil health.
    • Former colonies often became dependent on imported goods, struggling to restore diversified agricultural practices.

Key Terms by Theme

  • ENVIRONMENT: Natural resources;
  • ECONOMICS: Colonial economies; Companies: De Beers Mining Company;
  • TECHNOLOGY: Innovations such as railroads, steamships, and the telegraph;
  • SOCIETY: Hierarchies, apartheid, and the impacts of imperialism on social structures.