Revision Notes: The Making of a Global World
1. The Pre-Modern World
- Globalisation’s Long History: Trade, migration, movement of capital, and cultural exchanges have connected human societies for centuries.
- Trade and Interaction:
- 3000 BCE: Indus Valley linked with West Asia.
- Cowries (Shells used as currency) traded between Maldives, China, and East Africa.
- Diseases like the plague spread through interconnected trade routes.
1.1 Silk Routes Link the World
- Silk Routes:
- Network of land and sea trade routes linking Asia, Europe, and Africa since before the Christian Era.
- Goods: Chinese silk, Indian spices, textiles, and pottery.
- Precious metals (gold, silver) flowed from Europe to Asia.
- Cultural Exchange:
- Buddhism spread from India via these routes.
- Christian missionaries and Muslim preachers used these routes to spread their religion.
1.2 Food Travels: Spaghetti and Potato
- Cultural Exchange in Food:
- Crops like potatoes, maize, tomatoes, chillies introduced to Europe and Asia after the discovery of the Americas by Christopher Columbus.
- Spaghettin and nooddles possibly originated in China or were spread by Arab traders.
- Impact of Potatoes: Improved nutrition in Europe but led to the Irish Potato Famine (1840s) due to crop failure.
1.3 Conquest, Disease, and Trade
- 16th Century Expansion:
- European sailors discovered sea routes to Asia and America.
- Indian Ocean trade network redirected towards Europe.
- European Conquests in America:
- Precious metals (e.g., silver from Peru and Mexico) boosted European wealth and trade with Asia.
- Germs like smallpox decimated Native American populations, aiding European conquest.
- Slavery and Plantation Economy
- African slaves worked on American plantations producing sugar and cotton for Europe.
- Shift in World Trade:
- 15th Century: China’s isolation reduced its role in trade.
- 18th Century; Europe became the global hub, overtaking China and India.
2.1 A World Economy Takes Shape
- Three Flows of Economy: Trade (goods), labour (migration), capital (investments).
- Corn Laws in Britain: Restricted cheap grain imports, repealed to lower food prices.
- Agricultural Expansion: Lands in Eastern Europe, Russia, America, and Australia cleared for British food demand.
- Infrastructure Development: Railways, harbors built; funded by London’s financial centres.
- Global Migration: ~50 million emigrated from Europe; total ~150 million worldwide.
- Colonial Impact: Punjab’s irrigation canals created Canal Colonies for export crops.
2.2 Role of Technology
- Key Inventions: Railways, steamships, telegraph.
- Refrigerated Ships: Revolutionised meat trade, reducing costs and improving diets in Europe.
2.3 Late Nineteenth-Century Colonialism
- European Conquests: Africa divided in 1885 (Berlin Conference); Britain, France, Belgium, Germany expanded colonies.
- Colonial Exploitation: Borders drawn arbitrarily, causing social and ecological disruptions.
2.4 Rinderpest (Cattle Plague)
- Spread: Infected cattle from British Asia brought to East Africa.
- Impact: killed 90% of cattle, destroying African livelihoods.
- Forced Labour: Africans were pushed into plantations and mines due to scarcity of resources.
2.5 Indentured Labour Migration from India
- Origins: Workers from UP, Bihar, Tamil Nadu migrated to plantations in the Caribbean, Fiji, Mauritius, etc.
- Conditions: Contracts often misleading; harsh working environments.
- Cultural Fusion: Traditions like Hosay, chutney music, and Rastafarianism emerged.
- Abolition: Indentured labour system ended in 1921.
2.6 Indian Entrepreneurs Abroad
- Shroffs and Chettiars: Financed export agriculture in Asia.
- Sindhi Traders: Set up global emporia for tourists, especially after safe passenger vessels were introduced.
2.7 Indian Trade and the Global System
- Decline of Indian Textiles: British tariffs and competition reduced India’s textile exports.
- Rise of Raw Material Exports: Cotton, indigo, opium became major exports.
- Trade Surplus: Britain used India’s trade surplus to offset deficits elsewhere ad pay home charges (e.g. pensions, remittances).
Economic Changes:
- Three flows in the global economic: Trade (goods like wheat, cloth), labour migration, and capital movement.
- Interconnected global economy shaped by migration, trade, and investments.
A World Economy Takes Shape
- Food Production:
- Population growth increased demand for food grains in Britain.
- Corn Laws (restricted imports) abolished, leading to cheaper food imports, unemployment in agriculture, and migration.
- Global Agriculture Economy:
- Lands cleared in Eastern Europe, Russia, America, and Australia for Britain food demand.
- Infrastructure (railways, harbours) developed for trade.
- ~50 million Europeans migrated globally for labour.
- Role of Technology
- Technological advances (railways, steamships, telegraphs) reduced costs and improved efficiency.
- Refrigerated Ships: Enabled meat transport, lowering costs and diversifying diets in Europe.
- Late Nineteenth-Century Coloinalism
- colonisation disrupted economies and livelihoods
- African Example:
- Berlin Conference (1885): European powers divided Africa.
- Rinderpest (cattle plague): Destroyed African livelihoods, forced wage labour for colonial economies.
- Indentured Labour Migration from India
- Migration Causes: Decline of cottage industries, high land rents, and debt.
- Destinations: Caribbean, Mauritius, Fiji, Ceylon, Malaya, Assam.
- Harsh working conditions; cultural blending (e.g. Chutney music, Hosay).
- Nationalist opposition ended indentured labour in 1921.
- Indian Entrepreneurs Abroad
- Indian Traders and Bankers:
- Financed export agriculture in Asia and Africa.
- Notable groups; Shikaripuri Shroffs, Nattukottai Chettiars.
- Indian Trade and Colonialism
- Decline in Indian manufactured exports (cotton) due to British tariffs and competition.
- Increase in raw material exports (cotton, indigo, opium)
- Britain’s trade surplus with India financed its global trade deficits and home charges.
Wartime Transformations (1914-1918)
- Power Blocs: Allies (Britain, France, Russia later USA) vs. Central Powers (Germany, Austria-Hungary, Ottoman turkey)
- First Modern Industrial War: Use of machine guns, tanks, aircraft, chemical weapons; massive destruction (9 million dead, 20 million injured).
- Economic Impact: Workforce reduced, incomes declined; industries shifted to war propuction.
- US as a Creditor: Britain borrowed heavily from the US, making the US a leading creditor.
Post-War Recovery
- Britain’s Crisis: Lost dominance in Indian and international markets; burdened with huge debts.
- Economic Boom and Bust: War boom ended, leading to production cuts, unemployment, and reduced expenditures.
- Agriculture Crisis: Wheat glut after the war led to falling prices, declining rural incomes, and rising farmer debts.
Rise of Mass Production and Consumption
- Mass Production: Henry Ford’s assembly line increased output and lowered costs e.g. T-Model Ford).
- High Wages: Workers earned more ($5/day), boosting purchasing power.
- Consumer Boom: Increased demand for cars appliances, and housing financed by credit systems.
- Global Recovery: US investments and exports supported European recovery and global trade.
The Greate Depression (1929-1935)
- Global Decline: Production, employment, and trade collapsed worldwide.
- Cause:
- Agricultural overproduction and falling prices.
- Reduced US loans and trade barriers worsened the crisis.
- Bank and business failures in the US.
- Impact: Mass unemployment, loss of homes and assets, and a collapse of consumer prosperity.
India and the Great Depression
- Trade Decline: Indian exports and imports halved; wheat prices fell by 50%.
- Agricultural Crisis:Peasants suffered from falling prices and unchanged revenue-demands; increased debts and land mortgaging.
- Jute Crisis: Jute prices crashed by 60%,pushing Bengal farmers into deeper debt.
- Gold Exports: India became a major gold exporter, aiding Britain’s recovery but not Indian peasants.
- Urban Relief: Falling prices benefited salaried employees and landowners; industrial investments grew under tariff protection.
The Second World War (1939-1945)
- Fought between Axis (Nazi Germany, Japan, Italy) and Allies (Britain, France, Soviet Union, US)
- Over 60 million deaths (3% of the 1939 population).
- Massive civilian casualties, widespread destruction in Europe and Asia.
- Economic devastation and social disruption; long and difficult reconstruction.
Post-war Settlement and Bretton Woods Institutions
- Lessons from inter-war years:
- Mass production requires mass consumption.
- Full employmen needs governmen intervention.
- Governments must control goods, capital, and labour flows.
- Bretton Woods Conference (1944):
- Established IMF (external surpluses/deficits) and World Bank (post-war reconstruction).
- System based on fixed exchange rates (currencies pegged to USD; USD pegged to gold at $35/ounce).
- US dominated decision-making in these institutions.
- Early Post-war Year
- Era of rapid economic growth (1950-1970):
- World trade grew by 8% annually, income by 5%
- Low unemployment (<5%) industrial nations.
- Spread of technology and industrial investments in developing nations
- Decolonisation and Independence
- Most Asian and African colonies gained independence (1940s-60s).
- Challenges: Poverty, lack of resources, colonial exploitation.
- IMF and World Bank shifted focus to developing countries in the late 1950s.
- Formation of Group of 77 (G-77)
- Demanded a New International Economic Order (NIEO)
- Control over natural resources.
- Fair prices for raw materials.
- Better access for manufactured goods in global markets.
- End of Bretton Woods and Globalisation
- Collapse of fixed exchange rate system in the 1970s.
- Developing countries borrowed from private institutions, leading to debt crises.
- Industrial nations faced unemployment (1970s-1990s).
- MNCs shifted production to low-wage countries like China.
- China’s economic policies and Soviet collapse integrated more countries into the global economy.
- Rapid economic growth in countries like India, China, and Brazil.
Revision Topics
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