s diseases xchange of goods

Carrie E

Travellers, traders-->
Carried germs and diseases Exchange of goods,
capital, ideas, invention,
skills

ural Exchange
Change bought Cult

Dramatic and visible change: Priests and pilgrims-->

Human societies have knowledge, opportunity
steadily become interlinked and spiritual fulfilment,
values

Globalisation

Misconception merged in Phases

E

istory of
Long h
Did not emerge just 50 years And can be seen now
ago, modern globalisation through the global
interconnectedness
Trade
Migration
work
capital
 17th Century

us Valley Civilisatio Examples of Globalisation

Ind n long-distance spread of
disease-carrying germs-
Coastal Trade Link can be retraced
3000 BCE
Exchange with current-day
West Asia
By 13th Century -
unmistakable link

ries/Cowdi(Seashe
w lls)
Co

For more than a millennia

Exchange of Currency:
Cowries
Maldives to West Asia
 ultural Exchange
C
s
Preciou metals
Muslim Preachers Travel to Asia
Spread of Buddhism- Emerged in
Eastern India- spread through
Precious metals bought
intersecting points to the world
from Europeto India and
Travel of Christian missionaries
Southeast Asia: Gold and
Silver
Continents

Knit together vast

regions of Asia, linked
together Asia with
Silk Routes And Sea Rout
Europe d
(3000 BCE) Lan es

Vibrant Premodern
Trade

Exchange of silk, Chinese alled Silk Routes Existence

C
Pottery, Indian Spices and
Textiles
because the main good Thrived until the 15th
exchanged is Silk. century
(West bound silk cargoes Existed before Chriist
reach here)
 Accidental Discovery of
Americas
America by Christopher
Difference between life and death Columbus (a Portuguese
Groundnut
Maize sailor) along with other
Before: Tomatoes Portuguese and Spanish
Chillies sailors
Poverty In Europe due
to division between ↑Prices of Food
Long Distance Cultural Exchange
nobility and peasants

Ready Foodstuff- common origins

Death of poor peasants Food
After: Noodles travelled West Pasta travelled from
from China and became Arab to 15th Century
Introduction of humble Spaghetti
Humble potato is cheap Italy region, Sicily
potato

Cheaper food for poor

Increase in population of poor India and Japan knew
many such foods for a
Example: long time.
Ireland's poorest peasants became so dependent on
Increased lifespan of potatoes that when disease destroyed the potato crop in
poor due to availability the mid-1840s, hundreds of thousands died of starvation.
of food
 SHRINKING OF THE PRE-MODERN WORLD
RICH TILL 18TH CENTURY
AFTER 15TH CENTURY-->
CHINA= RESTRICTION OF
OVERSEES CONTRACTS
COLONISATION IN INDIA
REDUCED ROLE IN TRADE
,ISOLATION, RISING
IMPORTANCE OF AMERICA
PEOPLE WANT TO FLEE EUROPE
FLOW OF TRADE TO EUROPE (19TH CENTURY)
INDIA AND CHINA- RICH DISCOVERY OF PRECIOUS
CHANGE BY EUROPEANS RUMOURS ABOUT THE FABLED
COUNTRIES-INDIAN METALS- GOLD AND
CITY OF EL DORADO
SUBCONTINENT-TRADE FLOW SILVER
16th Century
CENTRAL TO THE INDIAN OCEAN
DISCOVERY OF AMERICA
INDIAN OCEAN BUSTLING PRESENT DAY PERU AND MEXICO EL DORADO= FABLED CITY OF
WITH TRADE, GOODS, PEOPLE, GOLD
KNOWLEDGE , CUSTOMS
DISCOVERY OF VAST PRESENCE OF SILVER MINES IN EXPEDITIONS IN SEARCH OF EL
LAND AND ABUNDANT REGIONS DORADO
EUROPE--> POOR NATION
CROPS
CROWDED CITIES
DEADLY DISEASES
RELIGIOUS CONFLICTS
PERSECUTION OF
DISCOVERY OF VAST
RELIGIOUS DISSENTERS
LAND AND ABUNDANT
CROPS AND MINERALS
CONQUEST OF AMERICAS
BY EUROPEANS
NEW RESOURCES = TRANSFORMATION OF
LIVES
 16TH-CENTURY COLONISATION BY PORTUGUESE AND SPANISH
MOST POWERFUL WEAPON 16TH CENTURY
USE OF BIOLOGICAL AMERICAS IN COMPLETE
WEAPONS: GERMS OF ISOLATION
SMALLPOX
AMERICA'S ORIGINAL
INHABITANTS--> NO IMMUNITY
USE OF SUPERIOR FIREPOWER AGAINST DISEASES
(EG. GUNS)

SMALLPOX= DEADLY KILLER

GUNS COULD BE CAPTURED AND
TURNED AGAINST INVADERS DEATH OF NATIVE AMERICANS KILLED AND DECIMATED
WHOLE COMMUNITIES

CONQUEST
CONQUESTOFOFAMERICA
AMERICAS BY
EUROPEANS
 MOVEMENTS IN THE 19TH CENTURY
19TH CENTURY= POLITICAL, SOCIAL, ECONOMICAL AND TECHNICAL CHANGES (PEST)

ECONOMISTS IDENTIFY THREE TYPES OF MOVEMENT OR ‘FLOWS’ WITHIN INTERNATIONAL ECONOMIC EXCHANGES
Interwoven

FLOW OF TRADE FLOW OF LABOUR FLOW OF CAPITAL

TRADE IN GOODS (EG. CLOTH,

FLOW IN SEARCH OF EMPLOMENT SHORT TERM LONG TERM
WHEAT)
INVESTMENTS INVESTMENTS
Slight breakage in interconnections
OVER LONG DISTANCES
Labour migration was often more restricted than
goods or capital flows
 World Economy 19th centrury

Changing pattern of food production Changing pattern of food consumption

If
Case of Britain Self Sufficiency of
production Traditional case of Nations
Population growth from reaso
n
the late 18th century Lower living standards+ Preferred to be self-
Social Conflict sufficient in food

Urban centres expanded Industries Grew Corn Law: Restriction on

import of corn Industrialists
Demand for agricultural and urban
Pushed up food prices
production increased dwellers:
Abolition Of corn laws Unhappy with
pressure from landed Demand for agricultural food prices
groups production increased
Abolition Of corn laws Food can be imported into Britain more cheaply

Costly British Agriculture

Flow of agricultural imports
can' Cheap Agricultural Imports
t com from Eastern Europe, Russia,
pete
Australia, America to Britain.

Failing British Agriculture

Vast areas of land= Shift to secondary

uncultivated sector
Increase in Consumption

Thousands of men Migration to cities

and women out of where industries
work are set up
 Case of America and Australia Migration of people to
America Australia

Work was done for cheaper agricultural production to export to Britain

Clear Land Build railways to Creation of new Expansion of new

export grain harbours harbours

Stats:
Capital- Flowed
from London to Demand of labor
Nearly 50 million people
Development of these regions increased where
emigrated from Europe to
houses and labor was in
America
settlements short
150 million people, left
homes, crossed oceans
and vast lands hoping for
a better future
By 1890 Global Agricultural Economy had taken shape accompanied by complex
changes in
Capital Flows
Ecologies
Technology

viously
pre 1)Came from nearby villages or towns
2) Grown by peasant tilling his own land
Food in 3) Grown on small land
19
th
cen 4) Travelled shorter distances to consumer
tur
y

1) Came from 1000s of miles away

2) Grown by an agricultural labourer
3) Grown by labourer working on a large land obtained by clearing forest.
4) Transported by ships, railways manned by low-paid workers from
Southern Europe, Asia, Africa and Carribean
Change in World Economy in India
West Punjab

Dramatic Change

network of irrigation canals

semi-desert wastes Called Canal Colonies

transform

fertile agricultural lands Regions resided by

for wheat and cotton peasants
from Punjab
 Other than food crops

Cotton
Rubber Coal

Stats

Production between 1820 and 1914 = 25x or 40x

60% of trade comprised - primary products: wheat, cotton, coal
 Role of technology
Result of Social Economic
Important Inventions
Technological Factors
Advancements
Colonisation simulated new
investments and improved
Railways transport
Telegraph
Steamships
Lighter Wagons Larger Ships
Faster Railways

Meat Trade= Good example of

improvement in transport
 Good example of
Trade in meat
improvement in transport

Meat trade before 1870s Meat trade after 1870s

Animals were shipped live to Europe and Animals were slaughtered in America, Australia and
slaughtered there itself New Zealand and then shipped to Europe

Only a small portion of the produce was sold in The majority of the produce was sold in Europe.
Europe as many animals died, fell ill, lost weight or Since the meat was frozen, it did not rot. It remained
became unfit to eat. perishable over long distances

The meat was sold at high prices The meat was sold at low prices

Meat was an expensive luxury beyond the reach of

Meat was more affordable to poor
the European poor.
 Result of Improvement in meat trade
Animals slaughtered at their starting point: Asia, Africa, Europe

Social Peace+ Support for imperialism

Reduced Shipping costs

Lowered Meat Prices at Europe Better Living Conditions

Poor can consume, a more varied diet

Monotony of Bread and Potatoes + Meat

 Good Bringabouts of Globalisation
Trade flourished in the late 19th century
Markets expanded in the late 19th century

Dark Side of Globalisation= Colonisation

expansion of trade and a closer relationship with the world economy

loss of freedom+ loss of livelihood

late 19th Century European Coquests

-painful economic changes
-painful social changes integrated into the world economy with colonisation
-painful ecological changes
C0LONISATION OF AFRICA AND GLOBALISATION
Division of Africa country's borders run straight, as if they were drawn
using a ruler.

rival European powers in Africa drew up

1885, Berlin- Complete caving up
the borders demarcating their respective territories
Africa

Britain and France made vast additions to

their overseas territories in the late 19th
century.
The US also became a colonial power in the late 1890s by
taking over some colonies earlier held by Spain.
 European Conquest of Africa
Before 1880s Africa
Abundant land More land and livestock per person
Small Population allows the easy sustenance of people
Lots of livestock
Few consumer goods to buy Almost no reason to work for a wage

The 1880s Attracts Europeans in the late 19th century

Africa- Rich in mineral resources

and land
Hope to establish
But
1) plantations
Problem: Shortage of Labour 2) mines

to produce crops and minerals for export to Europe

 What Europeans do?

Change in Inheritance
METHODS TO RETAIN LABOUR BY
Laws
EMPLOYERS
1880s
Change: Only one
member of the family
FINAL AND MAIN METHOD Heavy Taxes in terms of can inherit the land
(late 1880s) wark in plantations and
mines Objective: Displace
Rinderpest Mineworkers Peasants from Land
confined in
compounds
not allowed to move
about freely
 Labour for Africa
Similar stories of conquest

infected cattle imported from British Asia

European conquest of Africa
sent
to feed the Italian soldiers invading Eritrea in East Africa.

Force Africans into labour market

rinderpest entered Africa in the east
success in
moved west ‘like a forest fire. strengthening power
Destroyed African Livelihoods

reached Africa’s Atlantic coast in 1892. successfully monopolised remaining

scarce 10% cattle resources
reached the Cape (Africa’s southernmost tip) five years later.

Kills 90 per cent of the cattle.

 Two-Sided Nature of 19th Century Colonisation
Globalisation

Chinese labourers went to work on

- plantations
- in mines
Technology Advances in
- in road and railway construction
Faster Economic Growth but great
some areas and forms of
projects around the world
misery too coercion in others
India
indentured labourers were hired
Higher Incomes for Some, under contracts
Poverty for others
entured Labou promised return travel to India
Ind r after work for five years on
their employer’s plantation.
 Indian Indentured Labour

eastern Uttar Pradesh

cottage industries declined
Bihar
land rents rose
central India
lands were cleared for mines and plantations
dry districts of Tamil Nadu

Many poor became indentured

labourers

The main destinations of Indian indentured migrants were poor failed to pay their rents
Caribbean islands (mainly Trinidad, Guyana and Surinam) poor became deeply indebted
Mauritius forced to migrate in search of work
Fiji
Ceylon
Malaya
Note: Indentured labors were also bought to
Assam(Nationalism in India)
 Indentured Labour recruitment Done by agents engaged by employers and paid a
small commission
arriv
Living and working al at
plan
conditions were hars tion
s
few legal rights. 1) attracted people in poverty (people in hopes of
work) by providing
developed new
escaped into false information about final destinations
forms of
most indentured modes of travel
the wilds, individual and
laborers stayed the nature of the work
though if collective self-
on after their living and working conditions.
caught they expression,
contracts ended,
faced severe blending
or returned to (Not told about the long sea voyage)
punishment different
their new homes
cultural forms,
after a short 2) Abduction of less willing people
old and new.
spell in India
 New forms of Expression= Cultural Fusion

‘Chutney music’,
Trinidad- the annual Muharram procession
Rastafarianism (made famous by the
Jamaican reggae star Bob Marley) popular in
riotous carnival called ‘Hosay’ (for
Trinidad
Imam Hussain) in which workers of all
and Guyana
races and religions joined. social and cultural links with Indian
migrants to the Caribbean

creative
contemporary
Note: Cultural Fusion is when things from different places get expression of the
mixed, lose their original characteristics and become something post-indenture
entirely new experience
 Proof of Indentured Labour Immigration

Indies cricketers Shivnarine Chanderpaul Indies cricketers Ramnaresh Sarwan

Noble Prize Winner: V.S. Naipaul

(Names Sound Indian) (Ancestors were Indentured Labourers)

Account of Indentured Labour in India: Naipaul’s early novels capture their sense
of loss and alienation.
Nationalism In India= oppose the system of indentured labour migration
= fight abusive and cruel of Europeans

Indentured Labour Abolished in 1921

However, Descendants of Indian indentured labourers: thought of as

‘coolies’

remained an uneasy minority

 Indian moneylenders also followed
European colonisers into Africa

Growing Food and other

crops for the world crop
1860s onwards
Hyderabadi Sindhi traders
Needs Capital But Humble Peasant
established
flourishing
many groups of bankers and traders: Indian ventured beyond
Large plantations could
financed export agriculture in Entrepreneurs emporia at busy
borrow it from banks African Colonies
Central and Southeast Asia, using Abroad ports worldwide
and markets
either their own funds or those
development of safe and
borrowed from European banks.
comfortable passenger vessels.
(technological development)
Shikaripuri shroffs Nattukottai Chettiars
sold local and imported curio
tourists whose numbers were
beginning to swell
sophisticated system to transfer money over large developed indigenous forms of corporate
distances organisation.
 Indian Cotton
Historically
industrialisa
British Cotton manufacturing began to expand
Fine cotton produced in India t i on
British industrialists pressurised the government
was exported to Europe. -to restrict cotton imports
-protect local industries
Tariffs were imposed on cloth imports into Britain
Early 19th century India
c ol on i s at i o n +
Indian markets were excluded from British markets by
industrialisa
Tariffs t i on

Indian textiles now faced stiff competition in other Inflow of fine Indian cotton began to
international markets decline

The decline of Indian Textiles (Stats) Early 19th century Britan

1800-1815: 30%->15% British manufacturers began to seek overseas
1870s--> below 3% share markets for their cloth
 Indian export
Colonisation

Decline of Export of Manufactured Goods Increase in Import of Raw Materials

19th century- Britain Stats

British Manufacturers flood the
Indian Market
Food grain and raw materials
from the rest of the world and
India increased
Value of British Imports in India > (less than)
Value of Indian Exports to British
Cotton: 1812 to 1817: Increase from 5% to
35%
Indigo (used for dyeing cloth):
Opium: India to China (Britain grew opium
in India and exported it to China and,
with the money earned through this sale,
it financed its tea and other imports from
China.)

Britain has Trade Surplus With India (Next Page)

 Britain uses Trade Surplus to balance its
Britain has Trade Surplus With India
trade deficits with other countries
Britain uses it to settle 'HOME
CHARGES'- private emittances by British
officials and traders, interest payments on
Britain = Multilateral System - India’s external debt
- pensions of British officials in India.

Conclusion: India played a very important role in the 19th century World Economy. (as it
helped Britain settle Britain's deficits.
What is a multilateral System?

A multilateral system is a situation/system in which one country's deficit with another country
is settled by it's surplus with another country

Keywords
Trade Surplus: a situation in which the value of goods a country exports is greater than the value of goods it imports
Trade Deficit: a situation in which the value of goods a country exports is lesser than the value of goods it imports
 Role Of WW1 in World Economy
Snapped Economic Links(continued in next page)
recruitment of millions of male
First World War moved to the frontlines on
soldiers
large ships and trains.
Fought In Europe Between
Began in 1914
Involved the world's The scale of death and
Thought to have industrial-leading
Allies destruction – 9 million dead
lasted till Christmas nations: and 20 million injured
France
harnessed vast powers Britain Not possible
Lasted till 1914 of modern industry. Use Russia before industrial Maximum portion of dead and
of: age injured= Working Class
Plunged the first half of machine guns
Central Powers
the twentieth century into tanks Fewer working members in
1) Austria-Hungary
economic crisis aircraft family
2) Germany
Political Instability tanks 3) Ottoman Turkey
Catastrophic War Little household income
Increasing products of modern
took over three decades to large-scale industry
overcome Women decide to take
Restructured Industries to
up jobs
produce war-related goods
 Snapped Economic Links During World War I
War Snapped Economic Links between Great Economic Powers

Fighting each other to pay for them

Britain borrows large sums Before War:
of money from US banks+ US Public USA= International Debtor

After War:
USA= International Creditor
(Now the USA owns more overseas assets than foreign government
and its citizens)
 Post-War Recovery for Britain
Post War Recovery= Difficult After War, Britain:
International Changes
Before WWI: found it difficult to recapture its earlier position of
Britain= World's leading economy dominance in the Indian Market (reason- Entrance of MK
Gandhi, WWI)
Can't compete with Japan internationally

During War (Britain= preoccupied): IThe National economy of Britain:

Industries developed in Japan And India Contraction in production
Britain borrowed loans from the USA Increase in Unemployment (1 out of every 5 British
War=Economic boom= large increase in Workers Out of Job--> anxiety and uncertainity about
1. demand work
2. production Government reduced bloated war expenditures to bring
3. employment them into line with peacetime revenues
Huge Job Losses
 Agricultural Economies In US After the War
Britain: Eastern Europe Before War: US is a debtor
Before WWI:
US is a creditor
Easter Europe= Major supplier of wheat in the
world market
Recovery of US after WW1- Fast
War boosts US Economy
During War (Eastern Europe= preoccupied):
Wheat Production in Canada, America and
Resume of strong growth of US economy after
Australia expanded dramatically
1920s

Late 19th century

After War, Eastern Europe: Began in late 19th
production in eastern Europe revived and century in Eutope
created a glut in wheat output Mass Production
Characteristic feature of
Grain prices fell, rural incomes declined, and But Industrial Revolution
farmers fell deeper into debt
emerging in the US
 Ford Motors And Assembly Line Method
Well Know pioneer in Industrial Production= Car manufacturer HENRY FORD

Introduction of Assembly Line Method in forced workers to repeat a single task

Detroit Factory mechanically and continuously – such as
fitting a particular part to the car-at a
pace dictated by the conveyor belt
idea came from a Chicago
Slaughterhouse (slaughtered animals
increasing the output per worker by
were picked apart by butchers as they Workers join back
speeding up the pace of work
came down a conveyor belt)
henry ford double the wage to $5
faster and cheaper method
Standing in front of a conveyor belt no worker
workers quit in large numbers
could afford to delay the motions, take a break, or
even have a friendly word with a workmate workers at the Ford factory were unable to cope with the
stress of working on assembly lines in which they could not
control the pace of work
 Spread of Ford's industrialist practice (1920-1929)
Increase in World Income
Growth of World Trade

Boost in Recovery In
US Becomes the largest exporter in 1923 Europe
Ford's industrialist practice of mass production
The cycle of
higher employment and incomes
Spreads in Spreads in
Rising Consumption Economic Growth
Europe US
Rising Demand
More investment
Lowered cost of goods
Higher working salary of workers

Increase in net
production of industrial goods Workers can buy more durable
goods The boom in house construction and
emand of
Cars Washing Machines, Radios, ease in d ownership
Incr
Gramophone players
1919- Car production- 2 million
1929- Car production 5 million bought with the system of
hire purchase(on monthly credit)
 Great Economic Depression

Main Impact= Agricultural Regions

began in 1929
Results and Communities
1) Catastrophic Decline in es
c
ri es
p
lasted till mid 1930s Production ral pric
Employment ultu ial
ric str
Trade ag ndu
l in n i
Incomes fal all i
f
>
2) Timing and impact varied among
countries