economic imperialism 6.5

Introduction to Economic Imperialism

• Economic imperialism is a form of control where one state extends its influence over another through economic means rather than direct colonization.

• This period spans from 1750 to 1900 and involves more than just military conquest.

Example 1: Opium Wars in China

• Significance of China: Historically regarded as the "Middle Kingdom" and a major global power, it struggled to maintain its status during 1750-1900 due to lack of industrialization.

• The Trade Imbalance: British silver was accumulating in China due to high demand for Chinese goods (silk, porcelain, tea) while China showed little interest in British products.

• Britain's Solution: Instead of creating desirable products, Britain turned to mass production of opium in India, illegally exporting it to China to create a dependency.

  • Opium is highly addictive, leading to widespread addiction among the Chinese population.

• Chinese Response: The Qing dynasty banned opium imports and destroyed British shipments, prompting British military retaliation.

• First Opium War (1839-1842): Resulted in a humiliating defeat for China and the signing of the Treaty of Nanjing (1842), which imposed unequal treaties, opening multiple ports to British trade and increasing British economic influence.

• Decline of the Qing Dynasty: Continued foreign pressure, such as the second Opium War (1856-1860), and internal turmoil (like the Taiping Rebellion) led to further instability and loss of sovereignty.

• Spheres of Influence: By the late 19th century, multiple Western powers carved China into sections where they exercised control over trade and resources, demonstrating economic imperialism without formal colonization.

Example 2: Economic Imperialism in Argentina

• British Investment in Argentina: Throughout the 19th century, significant British investments were made to improve Argentine infrastructure (railroads, ports).

• Motivation Behind Investments: The objective was not altruistic but aimed at facilitating the extraction and export of raw materials from Argentina to benefit British businesses.

  • Construction of ports like in Buenos Aires improved trade links for British firms, leading to dependency on British economic interests.

Reorganization of Colonial Economies

• Focus on Exports: Colonial economies were often restructured to prioritize a few commodity exports that imperial powers demanded.

  • Examples include cotton from India and Egypt, and palm oil from Sub Saharan Africa.

• Impact on Colonies: This focus on specific exports created economic dependency on European powers, undermining local economies and serving imperial interests.

Conclusion

• Economic imperialism shaped global economies during this period, allowing industrial powers to dominate resources and markets of non-industrialized nations while maintaining economic control without direct governance.