The Nineteenth Century (1815-1914)
- The world changed drastically during the nineteenth century.
- Economic, social, political, cultural, and technological factors transform societies and develop external relations.
- Economists categorized three types of movements or flows within the context of global economic change.
- The flow of trade - Movement of goods across the globe.
- The flow of labor - Movement of people in search of employment.
- The flow of capital - Short-term and long-term investments over long distances.
- The types of movements help to understand the world economy better.
A World Economy takes shape
- In the late 18th century demands for food , and grains increased in Britain because of population growth.
- Due to the rapid growth of industrialization and urbanization, demand for agricultural products increases and leading to inflation.
- Government restricted the i mport of crops under Corn-laws.
- After the abolition of Corn Law , food was imported into Britain more cheaply.
- Agricultural land was left uncultivated and people migrate to other regions.
- In the mid-nineteenth century, faster industrial growth in Britain resulted in more food imports and higher income.
- Railways were introduced to connect the agricultural areas to the ports.
- All the activities needed capital and labour.
- Capital and financial aid flowed from London .
- 50 million people migrated from Europe to America and Australia
- By 1890, the global agriculture economy had been modified accompanied by labor movement patterns, capital flows, and technology.
- British Indian Government built a network of irrigation canals to convert arid land to fertile agricultural land.
Role of Technology
- Colonization enhanced the new investments and improvements in t ransportation.
- The development of new technology such as r efrigerated ships helps in the transportation of perishable goods over long distances.
- Animals were slaughtered for food in America , Australia, and New Zealand and then transported to Europe as frozen meat.
Late nineteenth-century Colonialism
- Trade and markets flourished in the late 19th century.
- Through numerous severe economic, social, and ecological transformations brought about by European conquest, cultures were integrated into the global economy .
- Africa become colonized by the European powers.
- Britain and France significantly expanded their oversea territories .
- Belgium and Germany became colonial powers.
- The US became the colonial power by conquering some colonies of Spain .
Rinderpest, or the Cattle Plague
- Africa in the 1890s faced the fast-spreading disease called cattle plague or rinderpest.
- Rinderpest had a terrifying impact on the people and the country’s economy .
- Rinderpest was carried by infected cattle imported from British Asia.
- The loss of cattle destroyed African livelihoods
- In the late 19th century, Europeans were attracted to Africa due to its vast resources of land and minerals.
- Europeans came to Africa to produce crops and minerals.
- Colonial Government took the advantage of the epidemic situation and force Africans i nto the labor market.
- European colonizers control the scarce resource of cattle and conquer Africa.
Indentured Labour Migration from India
- Indentured labor - A bonded labor under a contract to work for an employer for a specific amount of time.
- Indians and Chinese laborers work in plantations, mines, and in road and railways construction projects across the world.
- In India, Indentured labors were hired under contract.
- Most of them come from Uttar Pradesh , Biha r, and other states of Central India and Tamil Nadu.
- Cottage industries declined, an increase in land rents, and land was cleared for mines and plantations resulting in debt and forced to migrate for work.
- The prime destinations of Indian indentured migrants were Caribbean Island, Mauritius, Fiji, Ceylon, and Malaya
- Indentured was described as a new system of slavery.
- The working conditions of workers were harsh and they have to follow strict legal norms .
- From the 1990s Indian leaders oppose the system of indentured labour.
- This system was abolished in 1921.
Indian Entrepreneurs Abroad
- Earlier groups of bankers and traders financed the export of agriculture in Central and Southeast Asia.
- They used their own funds or borrowed from European banks .
- Indian traders followed European colonizers into Africa.
- From 1860s, Hyderabadi Sindhi traders established emporia (Showrooms) across the world.
Indian Trade, Colonialism and the Global System
- Fine cotton produced in India was exported to Europe .
- Tariffs were imposed on cloth imports into Britain.
- The inflow of fine Indian cotton began to decline.
- Indian textile faces stiff competition in other international markets.
- Export of manufacture declined rapidly whereby export of raw materials increased equally fast.
- Indigo is also an important export item .
- Britain grew opium in India and exported it to China.
- The value of British exports to India was higher than the value of British imports from India.
- Britain had a trade surplus with India.