Chapter 6: Economic Transformations

Chapter 6: Economic Transformations

Introduction to Trading Post Empires (1450-1750)

  • Emergence of trading post empires led by:

    • Portuguese

    • British

    • Dutch

    • Spanish

  • Focus on establishing coastal trading posts

  • Aimed to control valuable trade routes and resources

Portugal and Spain in the Indian Ocean

Goals and Actions

  • Portugal:

    • Desire for goods from the East

    • Aim to avoid Muslim middlemen

    • Overcome monopolies held by Egypt and Venice

    • Counter trade deficit with Asia

    • Utilized well-armed and maneuverable ships, established fortified bases along Africa's coast

    • Sought control over trade, not extensive territorial acquisition

    • Attempted to control all merchant vessels unsuccessfully

  • Spain:

    • Aimed for the Philippines due to proximity to China and the Spice Islands

    • Mismatched military capabilities but leveraged guns, local alliances, gifts, and Catholic rituals

    • Missionary efforts to convert Filipinos; Manila became culturally diverse

East India Companies

Structural Advantages for British and Dutch

  • Structured trade on the backs of private companies provided several advantages:

    • Shared risk and independently raised capital for ventures

    • Gained trading monopolies from governments

    • Success through military force and desire for access to spice islands

    • Significant British settlements established in Mumbai (Bombay), Calcutta, and Madras

    • British replaced Portuguese influence; collaborated with the Mughal Empire, offering payments and bribes

    • Engaged in "carrying trade" altering from luxury goods to mass market products such as pepper, textiles, tea, and coffee

Impact of European Intervention in Asia

Changes in Societies Encountered

  • Philippines:

    • Coerced conversion to Christianity; forced labor systems introduced

    • Changes in the role of women from healers to laborers

  • Banda Islands:

    • Dutch actions led to widespread killing and enslavement of the population, replacing them with Dutch planters and slaves for nutmeg production

  • India:

    • The Mughal Empire largely rejected British influence, detaining British traders and enforcing fines

Japan's Response to Western Influence (15th-18th centuries)

Shifts in Policy

  • Initially welcomed Christian missionaries and Europeans for military technology and commerce

  • Shifted stance under the Tokugawa Shogunate; united Japan against foreign influence

  • Executed missionaries and converts; banned European trade, with exceptions for the Dutch

  • Forbade travel abroad, focusing trade with China, Korea, and SE Asia

LEQ Practice

Assessment of European Influence on Asian Societies (1450-1750)

  • European powers (Portuguese, Spanish, British, Dutch) engaged heavily in trade in the Indian Ocean

  • Varying degrees of societal change in Asia:

    • Significant impact on economic and cultural conditions in Spice Islands, Africa, and the Philippines

    • Japan maintained resistance against European influence through stringent policies

  • Intro Context

    • Economic conditions evolved

    • Cultural conditions transformed

    • Japan's resistance highlighted

Economic Processes in Early Modern Era

A. Common Economic Process: Formation and expansion of trading companies reflecting mercantilist policies. B. Government Economic Power: Economic charters allowed governments to assert authority, establish monopolies, and influence trade dynamics at an international level. C. Historical Economic Systems: Feudalism and tribute systems prior to 1750 used by states to reinforce power.

The Role of Silver in Global Economy

How Silver "Made the World Go Round"

  • Rich silver deposits discovered around the same time in Bolivia and Japan

  • Growing demand in China for silver to settle taxes.

  • Increased demand led to skyrocketing prices

  • Silver Drain: European purchases financed with silver largely ending up in China

  • Emergence of silver currency (Piece of Eight)

  • Potosi: Largest city in the Americas due to mining activities

  • Economic effects:

    • Spain benefits, but experiences inflation and subsequent wealth losses

    • Japan reinvested silver wealth, fostering developments leading to industrialization

    • China specialized its economy around silver demand

  • Negative impacts include horrific mining conditions, deforestation, soil erosion, and flooding

The Fur Trade

Why Fur Was Considered “Soft Gold”

  • Population growth and the Little Ice Age increased demand for fur, driving prices higher

  • Europeans obtained furs from Native Americans for sale in global markets

  • Russian tribute demands led to fur production from Siberians

  • Environmental impact: Overexploitation of animals and disruption of habitats

  • Transformed Native American trade: Reliance on European goods increased

  • Contributions to European economies to mitigate trade deficits with Asia

  • Social consequences: Rise in alcoholism and changes in women's roles

Transatlantic Slave System

Differences from Historic Uses of Slaves

  • Timeframe: 1500-1866

  • Approximately 12.5 million people taken, with 10.7 million arriving in the Americas; 14% died en route

  • Distinct features:

    • Forcible capture, sale practices, brutal treatment, forced labor, family separations

    • African diaspora spread globally

  • Motivation for African leaders to engage in slave trade: Desire for weapons

  • Notable changes associated with the TSS:

    • Scale and scope of transatlantic slave trade

    • Inheritance of enslaved status

    • Racialization and the concept of "blackness" emerged

    • Economic focus shifted to plantation crops like sugar, tobacco, and cotton

    • Influential papal endorsement for enslavement of non-Christians (1452)

Analyzing the Middle Passage

Considerations for Document Sources

  • What message does the source convey?

  • How do the author’s background and perspective influence its message?

  • Are there corroborations among the three provided sources? What similarities/differences exist?

  • Conclusions about the Middle Passage beyond it being "horrendous."