As societies develop, they affect and are affected by the ways that they produce, exchange, and consume goods and services.
LEARNING OBJECTIVE
Explain how various economic factors contributed to the development of the global economy from 1750 to 1900.
HISTORICAL DEVELOPMENTS
KC-5.2.I.E Industrialized states and businesses within those states practiced economic imperialism primarily in Asia and Latin America.
KC-5.1.II.C Trade in some commodities was organized in a way that gave merchants and companies based in Europe and the U.S. a distinct economic advantage.
ILLUSTRATIVE EXAMPLES
Industrialized states practicing economic imperialism:
§ Britain and France expanding their influence in China through the Opium Wars
§ The construction of the Port of Buenos Aires with the support of British firms
Commodities that contributed to European and American economic advantage:
§ Cotton grown in South Asia and Egypt and exported to Great Britain and other European countries
§ Palm oil produced in sub-Saharan Africa and exported to European countries
§ Copper extracted in Chile
British colonies in India that grew and exported opium, and of the major naval base at Singapore through which British opium reached East Asia
British officials had been frustrated by the trade deficit caused by the British demand for tea and the Qing refusal to facilitate the importation of any British product
early 1700s a few European merchants and their Chinese partners were importing small quantities of opium
1729 -- the first Qing law banning opium imports was promulgated
1800 -- opium smuggling had swelled the annual import level to as many as four thousand chests
early 1820s -- A price war stemming from competition between British and American importers raised demand so sharply that as many as thirty thousand chests were being imported by the 1830s
The Qing emperor and his officials debated whether to legalize and tax opium or to enforce the existing ban more strictly
1839 -- decided to root out the use and importation of opium and the Qing government sent a high official to Canton to deal with the matter
Britain considered the ban on opium importation an intolerable limitation on trade, a direct threat to Britain’s economic health, and a cause for war.
Opium War (1839–1842)
broke out when negotiations between the Qing official and British representatives reached a stalemate.
1839 -- British naval and marine forces arrived at the south China coast
Qing defense forces:
Bannermen -- the traditional, hereditary soldiers of the Qing Empire—were, like the Janissaries of the Ottoman Empire, hopelessly obsolete
Moving Qing reinforcements from central to eastern China took more than three months, and when the defense forces arrived, they were exhausted and basically without weapons
Bannermen used the few muskets the Qing had imported during the 1700s. The weapons were matchlocks, which required the soldiers to ignite the load of gunpowder in them by hand
Most of the Bannermen, however, had no guns and fought with swords, knives, spears, and clubs
no imperial navy -- until they were able to engage the British in prolonged fighting on land, they were unable to defend themselves against British attacks.
The British could quickly transport their forces by sea along the coast; Qing troops moved primarily on foot
British ships landed marines who pillaged coastal cities and then sailed to new destinations
Soldiers under British command— many of them were Indians—carried percussion-cap rifles, which were far quicker, safer, and more accurate than the matchlocks
the long-range British artillery could be moved from place to place and proved deadly in the cities and villages of eastern China
British deployed new gunboats for shallow waters and moved without difficulty up the Yangzi River
1842 -- the terms of the Treaty of Nanking
dismantled the old Canton system
The number of treaty ports—cities opened to foreign residents—increased from one (Canton) to five (Canton, Xiamen, Fuzhou, Ningbo, and Shanghai)
the island of Hong Kong became a permanent British colony
extraterritorial rights -- British residents in China not subject to Chinese law
The Qing government agreed to set a low tariff of 5 percent on imports and to pay Britain an indemnity of 21 million ounces of silver as a penalty for having started the war
A supplementary treaty the following year guaranteed most-favored-nation status to Britain; any privileges that China granted to another country would be automatically extended to Britain as well.
This provision effectively prevented the colonization of China, because giving land to one country would have necessitated giving it to all
1860 a new treaty legalized their right to import opium.
Later, French treaties established the rights of foreign missionaries to travel extensively in the Chinese countryside and preach their religion
late 1800s -- France forced the court of Vietnam to end its vassalage to the Qing
Britain encouraged Tibetan independence
By 1900 -- number of treaty ports grew and numbered more than ninety
modernization and expansion of port facilities at the Port of Buenos Aires
relied on British engineering firms, British banks, and British technology.
supported by Argentine economic interests most closely tied to the European export trade and by national political leaders who believed progress and prosperity required the imitation of European models.
British were the nation’s primary creditors as well as leaders in the development of the nation’s railroads, streetcar lines, and gas works in Buenos Aires.
work force was almost entirely recruited from recent immigrants
Positive:
The new port facilities did facilitate a boom in exports and imports, and the huge public works budget did provide incomes for thousands of laborers
Negative:
debts, design flaws, and the increased influence of foreign capital in Argentina left a legacy of problems that Argentina would be forced to deal with in the future
Transition to an export economy
British interests felled forests to make way for tea plantations, persuaded Indian farmers to grow cotton and jute for export
exports were agricultural commodities for processing elsewhere: cotton fiber, opium, tea, silk, and sugar
India imported manufactured goods from Britain, including the flood of machine-made cotton textiles that severely undercut Indian hand-loom weavers.
effects on individual Indians varied enormously
Some women found new jobs, though at very low pay, on plantations or in the growing cities, where prostitution flourished
Others struggled to hold families together or ran away from abusive husbands. Everywhere in India poverty remained the norm
British Raj infrastructure investments
created great irrigation systems to alleviate the famines that periodically decimated whole provinces
Indian Raj government (and BEIC before it) also promoted the introduction of new technologies into India not long after their appearance in Britain
steamboats on the rivers and a massive program of canal building for irrigation
1840s -- railroad boom (paid for out of government revenues) gave India its first national transportation network
By 1870 -- India had the greatest rail network in Asia and the fifth largest in the world.
Originally designed to serve British commerce, the railroads were owned by British companies, constructed with British rails and equipment, and paid dividends to British investors
Ninety-nine percent of the railroad employees were Indians, but Europeans occupied all the top positions
some Indians opposed the railroads at first because the trains mixed people of different castes, faiths, and sexes
In 1870 over 18 million passengers traveled along the network’s 4,775 miles (7,685 kilometers) of track
By 1900 India’s trains were carrying 188 million passengers a year
followed shortly by telegraph lines
By 1870 -- more than a half-million messages were sent up and down the 14,000 miles (22,500 kilometers) of telegraph wire.
1867 -- installation of a new sewerage system in Calcutta
filtered water supply (1869) in Calcutta dramatically reduced cholera deaths there
Similar measures in Bombay and Madras also led to great reductions, but most Indians lived in small villages where famine and lack of sanitation kept cholera deaths high.
In 1900 -- four out of every thousand residents of British India died of cholera
thirty-six hundred Europeans tried to rule over an African population of more than nine million
The combination of long distances and slow transport limited effective communication between regional authorities and officials in remote areas.
An inability to speak local languages and a limited understanding of local customs among European officials further undermined their effective administration
Coerced labor
all “natives” were legally obligated for “statute labor” of ten to twelve days a year, a practice that lasted through 1946.
unpaid labor on public projects, such as building railroads, constructing government buildings,and transporting goods
the mining companies of the late nineteenth century were heavily capitalized international corporations that could bully governments and buy political favors
European and North American corporations owned most new mining enterprises in Latin America.
New technology accelerated economic integration, but the high cost of this technology often increased dependence on foreign capital
government promoted railroads by granting tax benefits, free land, and monopoly rights to both domestic and foreign investors
American owned copper companies came to dominate the Chilean economy
open-pit copper mining in Chile scarred and polluted the environment
Open mines dug to obtain ores lying close to the surface created a landscape of lunar craters, and runoff from the minerals poisoned the water for miles around.
Refineries that processed the ores fouled the environment with slag heaps and more toxic runoff
1870a -- Copper demand exploded with the rise of efficient generators that turned mechanical energy into electric current...electricity
1930s -- Copper deposits, found in Northern Rhodesia (now Zambia) and the Belgian Congo, proved to be cheaper to mine than Chilean copper
Activity:
Using your knowledge of World History, provide evidence to support the following claims used to justify Imperial occupation (both direct and indirect rule can be used as evidence).
1.) Occupation for Resource Extraction
2.) Occupation to Protect Free Trade
3.) Occupation to Protect Strategic Interests
4.) Occupation for Humanitarian Intervention
Use the following documents to make separate claims for the following prompt:
Prompt: Evaluate the extent to which railroads affected the process of empire-building in Afro-Eurasia between 1860 and 1918.
Document 1
Source: Sir Henry Norman, English politician, editorial discussing the Trans-Siberian Railroad, News Chronicle. Published in London, 1901.
“Since the Great Wall of China the world has never seen an undertaking of equal magnitude. Russia, single- handedly, has conceived it and carried it out. Its strategic results are already easy to foresee. It will consolidate Russian influence in the Far East in a manner yet undreamed of. But this will be by slow steps. The expectation that the railroad could be used to transport masses of soldiers from European Russia to China, either in response to an attack or for Russia herself to launch an attack, is yet far from becoming reality. The line and its organization would break down utterly under such pressure. But bit by bit it will grow in capacity, and the Powers that have enormous interests at stake in the Far East, if they continue to sleep as England has done of late, will wake to find a new, solid, impenetrable, self-sufficient Russia dominating China as she has dominated, sooner or later, every other Oriental land against whose frontier she has laid her own.”
Document 2
Source: Lieutenant-Colonel R. Gardiner, British army officer, “Indian Railways,” magazine article published in London, 1913.
“The effect of this vast movement of people, with the interactions it has brought about between what previously were great nationalities practically unknown to one another, is now beginning to be felt in the drawing together of the people of India with the recognition of common interests, common ideals and ambitions—in other words, the birth of a common national and patriotic sentiment—which, if well directed, would eventually mold India into a unified and loyal people, still the brightest gem in the imperial Crown.”
Key Takeaways
A.) Industrialization and imperialism are intertwined.
imperialism impacted states that were not directly taken over
draw connections between historical events and processes
B.) Imperialism looks different depending on the area, but the desire for natural resources and markets usually plays a key role.
C.) Examples of economic imperialism:
Britain in China (Opium Wars)
United States in Latin America (Panama Canal)
Both involve the desire for natural resources and markets for goods
Both involve using military force or the threat of military force
Imperialism involved government control, while economic imperialism usually did not
Remember, historical events do not happen in a vacuum and they do not happen in a straight line.
draw historical connections for a deeper understanding of history (more than just rattling off facts!)
Remember, try to show these connections in your context or outside information.
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