6.4-6.5
Development of Global Economy (1750-1900)
Environmental Factors Contributions
Various environmental and economic factors contributed significantly to the development of the global economy between 1750 and 1900.
Resource Export Economies emerged focusing on specific goods:
Cotton Production in Egypt
Rubber Extraction in the Amazon and the Congo Basin
Palm Oil Trade in West Africa
Guano Industries in Peru and Chile
Meat Exports from Argentina and Uruguay
Diamond Mining in Africa
Rise in World Trade
The exponential increase in world trade was spurred by massive manufacturing increases in Europe.
While there was manufacturing in Europe before the 1800s, primary producers were China and India.
After 1760, goods from the Americas transitioned from mere consumption or sale to being utilized for larger-scale production in Europe.
Examples include textiles and firearms.
This created a large demand for raw materials like cotton, tobacco, and metals, leading to reliance on colonies in Africa, Asia, and the Americas, as well as newly-independent Latin American nations.
Consequently, Europe and the U.S. emerged as the largest producers of goods, significantly boosting activity along global trade routes.
Economic Imperialism
European and U.S. powers leveraged their wealth and technological advantages to exert control over global markets.
Their objectives differed based on geographic region:
Acquire Territory for Raw Materials: Notable in Africa and Oceania.
Acquire Territory for New Markets: Predominantly in Asia.
Methods of control included direct territorial acquisition (e.g., India) or establishing influence over foreign governments (e.g., China).
Despite not directly colonizing certain regions, Western industrial companies provided local leaders with financial benefits in exchange for economic privileges, termed Economic Imperialism, which persisted into the mid-20th century.
Comparison of 19th Century Imperialism to Earlier Colonization
Discussion Points:
How 19th-century imperialism compares to colonization in the 16th and 17th centuries.
Global Economic Development Statistics
Chart illustrating the surpassed production (GDP) of the West over China and India during this period.
Prompts for discussion include identifying the change from previous eras and causative factors influencing this shift.
Plantation and Haciendas Expansion
The growing demand for raw materials facilitated the expansion of plantation and hacienda systems globally, leading to economic dependency of colonies on raw material exports to Europe.
Examples of cash crops include:
Palm Oil from Africa and Southeast Asia.
Guano from Peru (used as fertilizer).
Coffee and Cocoa from Brazil.
Beef from Argentina.
Cotton and Tobacco from the U.S. and India/Egypt (the latter being forced into this system by British colonial rule).
The economic structure often led to single-export economies, reducing the ability for diversified national economies.
Agricultural Products and Effects
The rise of cash crops altered food prices negatively for subject nations.
Meat demand increased due to new technologies enabling long-distance shipment.
For instance, British investments in Argentinian infrastructure facilitated beef exportation to England.
Guano's significance as a fertilizer led to millions of tons being exported from 1840 to 1880 by companies such as the Pacific Guano Company and Gibbs and Sons.
Cotton Industry Insights
In 1721, Britain banned Indian cotton textiles to protect its wool industry.
By the late 1800s, the U.S. provided 80% of Britain's cotton, with a significant contribution from Egypt following the cotton shortage during the U.S. Civil War.
By 1900, 93% of Egypt's export revenue stemmed from cotton.
Rubber and Other Raw Materials
The rubber industry flourished under exploitative practices by 'rubber barons' in the Americas.
Indigenous people were often subjected to virtual slavery.
The demand for palm oil surged due to industrial lubrication needs.
Ivory became a valuable commodity harvested from elephants for items such as piano keys.
Mineral ores like copper grew increasingly necessary for technological advancements, especially in electricity production.
Diamonds became monopolized by De Beers, founded by Cecil Rhodes, whose expansionist practices led to significant social and racial implications in South Africa.
Economic Developments in Latin America
British investments transformed Argentina into the wealthiest Latin American country by WWI.
Chile became known for copper mining.
Brazil thrived in rubber production, leading to the 'Banana Republic' phenomenon, describing small Central American nations heavily influenced by foreign corporations.
U.S. Influence and Intervention in Latin America
The U.S. employed economic imperialism to maintain control over Latin American nations, often under the guise of protection from European colonization.
Examples include agricultural investments (fruit, sugar, rubber) in Cuba and tactical financial interventions to convert local governance into pro-U.S. regimes.
Infrastructure Improvements
Development of steamships, ports, canals, and railroads considerably increased trade capacity and facilitated resource extraction efforts, often benefiting the imperializing powers over local economies.
Case Study: Cecil Rhodes and Railroads
Rhodes proposed a railroad stretching from Cape Town to Cairo purportedly to aid native populations but primarily benefitted British interests.
Technology and Communication Advances
The advent of steamships and telegraphs post-1870 allowed for improved long-distance overseas communication and transport, enhancing control for industrialized nations over South America, Africa, and Asia.
Final Key Concepts
Economic Imperialism: denotes foreign business dominance in nations, particularly during the age of imperialism.
Defined through instances such as the collusion of companies with local authorities for economic benefits, e.g., the United Fruit Company in Latin America.
Conclusion
The interplay of environmental factors, imperialistic ambitions, and economic exploitation from 1750 to 1900 significantly shaped the modern global economy, laying groundwork for future conflicts and economic structures.