Global economic changes 6.4

Second Wave of Imperialism:

• Massive effects on the global economy.
• Industrialized powers aimed to colonize and exploit resources globally to support their factories.

Colonial Economies Transformation:

• Shift from subsistence farming (growing food for local consumption) to export economies focused on cash crops and raw materials.
• Example: Lands previously used for growing diverse crops were now focused on single crops like cotton due to colonial interests.

Case Studies on Economic Changes:

• Egypt and India:
• Became heavily reliant on cotton exports to Britain as a response to the U.S. Civil War disrupting cotton supply.
• By the end of the 19th century, Egypt's economy primarily revolved around cotton production.
• West Africa:
• Exported palm oil, crucial for manufacturing goods like soap and as a lubricant for machinery.
• Established plantations often depended on enslaved labor.
• Guano Extraction:
• Bird droppings used as potent fertilizer for industrial agriculture.

Causes of Economic Transformation:

• Need for Raw Materials:
• Industrial machines required various raw materials which led to the exploitation of colonies.
• This exploitation was integral for gaining and maintaining power during this period.
• Supplying Urban Centers:
• Industrialization led to urbanization, increasing the demand for food.
• Colonial economies adapted to export cash crops like sugar, coffee, and meat from regions like Argentina and Brazil to satisfy urban needs.

Effects of Economic Developments:

• Profit Utilization:
• Profits from exported raw materials often used to buy manufactured goods from imperial nations.
• Colonies served as markets for the surplus goods produced by industrialized nations.
• Growing Dependency:
• As imperial powers reorganized colonial economies for their favor, indigenous populations became increasingly dependent on them.
• This economic restructuring benefitted colonizers while undermining the self-sufficiency of colonized peoples.