The World Economy

1. The World Economy Chapter 16 EQ: How did Europe come to dominate the world economy?

2. Introduction • The rise of the West from the 1400s through the 1700s involved a series of distant explorations and imperial conquests that resulted in increased contact between world societies • BEFORE this era, cultures had less contact with each other, as international contacts were not a fundamental goal of classical societies • HOWEVER, during the post-classical era, missionary religions (such as Islam, Buddhism and Christianity) made such contacts occur and become crucial • These connections spelled a new world order, and add to that the impending discovery of the Americas in the late 1400s/early1500s, global trade becomes paramount

3. World Awareness & Technological Development • Both the Crusades and Mongol contacts gave European kingdoms new interest on the riches of the eastern world • Wealthy upper classes enjoyed the luxuries of the east, particularly the silks and spices…but when the Mongol empire declined and Ottomans became a militant Muslim force, the message was clear  FIND A WAY AROUND THE MIDDLE MAN • The maritime city states of Italy (Venice, Naples, Genoa in particular) who had made the connections with the Muslim Middle men began the process, along with emerging states in Portugal and Spain • European monarchs became bent on finding sea routes to completely avoid land trade through the Middle East to Asia…new types of boats had to be built…as previously mentioned, new devices like the compass and astrolabe made sailing the open ocean possible

4. The Expeditions • In trans-Atlantic exploration, Portugal was first • Early 1400s & Prince Henry the Navigator sends ships down the coast of Africa • Vasco da Gama sails to India in 1497 • One expedition around Africa is blown off course and lands in Brazil in the early 1500s • The Portuguese were the first to Indonesia and China in 1514 • Portuguese reached Japan by 1542 • Then Spain • Rival to the Portuguese…Ferdinand and Isabella send expeditions…1492 and Columbus…1519 and Magellan • Both the Spanish and Portuguese fortified their claims in both Asia, Africa and the New World • The results of the above created vast world land claims that had to be settled by the pope • Britain, Holland and France brought up the rear • Britain’s major motivation was their defeat of the Spanish Armada in 1588, though they had sponsored Cabot’s expedition in 1497 • France first came to the New World in 1534 and settled Canada • The Dutch also took New World territory (NY) and did the around Africa thing, settling in South Africa, and they wrestled control of Indonesia from Portuguese traders

5. Toward a World Economy • Europe’s new maritime activity had 3 major consequences for world history 1. the creation of exchanges of food, diseases and manufactured products 2. the formation of an inclusive world economy 3. the beginnings of world colonization (Colonial Era) that eventually leads to Imperialism

6. Columbian Exchange

7. The West’s Commercial Outreach • The West had the superior power, but they did NOT immediately control or dominate the inland powers of the world…Asian states continued measured isolationism…Muslims/Ottomans still control the Middle East and Central Asia and East Africa • Most European interests in this early age were primarily coastal as Europeans primarily secured harbors and fortresses…little effort was made to conquer areas inland in all major colonized areas early on • Europeans still managed to claim coastal ports as enclaves when local people revolted (treaty claims) • Macao in China, Nagasaki in Japan, St. Petersburg in Russia, Bombay (Mumbai) in India

8. A Problem of Imbalance and Inequality • Spain and Portugal’s reign as world trade leaders was brief (their banking systems could not keep up with trade demands as their currency became inflated) (Spain refused to allow open trade in its colonies and refused its own colonies to trade with other nations) • France, Britain and Holland had better systems and gained control of the world economy…each of these areas took the lead in establishing a manufacturing system to process raw materials form colonies • Mercantilism – don’t import, just export…and create tariffs that discouraged colonies from manufacturing! • CORE vs. DEPENDENCY • Raw material suppliers vs. maufacturers • Triangular Trade Network

9. A Problem of Imbalance and Inequality • Sub-Saharan Africa becomes a primary supplier of slaves…regional kingdoms in West and Central Africa benefit from slave profits • Latin American and African peasants saw little interaction in the world economy…most were still involved in food production for the immediate local area • Other European colonists saw their efforts heavily taxed by their crown nations, were forced to buy only products produced by their crown nations and saw HUGE tariffs and taxes that prevented them from manufacturing on their own (sound familiar?) • Indigenous/native populations become subjugated to servitude (slavery) to support the one-way system of trade

10. World Economy? HUH? • Early on (15th/16th centuries), huge areas of the world (mostly continental) remained outside of this European dominance and did not suffer from it • China and Japan had no need for European products…both maintained a measure of isolationism, save the establishment of trading ports on their southern shores…both had the military power to resist any invasions • Mughal India (north Ganges region), the Ottomans and the Safavids (all in chapter 21) continued land based expansion with minimal European contact AND also continued to dominate the Indian Ocean trade network • Russian and African areas not in an immediate coastal region traded mainly with nomadic peoples in their immediate spheres or were self-sufficient

11. Expansionist Trends and Colonialism • In the 17th and 18th centuries, European dominance spread into areas where they were limited • The British and French strengthened their positions in India as the Mughal Empire began to fall apart…the British passed laws to turn their colonies into dependencies and laws which banned the export of Indian cloth, forcing Indians to buy only British made goods…India’s internal economy survived, but they never gained access to international trade • Once isolated Eastern European states, thanks in part to their leaders (Chapter 18) entered world trade, primarily as exporters of agricultural products (grains and exotic fruits) • Along with this shift came colonial dominance…actual colonies sprung up in the Americas, whereas few colonies took hold in Africa or Asia (most ports in these areas had colonists, but little else)

12. The Americas: “Loosely” Controlled and “Backwater” Colonies • Spain quickly settled the West Indies islands; by 1509 they settled Panama (first on mainland); military expeditions conquered the Aztecs (Cortez) and Inca (Pizzaro); early colonies were founded by conquistadors, soldiers of fortune and had little connection with Spanish central government • When agricultural systems were established, the Spanish imposed harsh control over politics and economy in Latin America (Chapter 19)…limited trade, a military and religious presence…HOWEVER, though the Spanish crown maintained a political presence, the colonies established were at the mercy of local rulers (conquistadors w/ encomiendas)…it would not be until the late (too late) 17th century that Spain would try to strictly control its colonies • “Backwater Colonies” in North America • REFUGEE colonies…European monarch paid little attention to these colonies (and the results were…)…unlike, Latin America there was little/no interaction with indigenous peoples…merchant class ambitions lead to future independence…the colonists only retained cultural ties to their European masters

13. Africa and Asia: Trading Cities • Africa  Europeans were confined to the coast thanks to geography, climate, African tribal warlords and most notably diseases…only ANGOLA and SOUTH AFRICA were the exceptions • Asia  settlement again was minimal…Spain Christianized the Philippines…the Dutch, French and British built trading forts/ports on the coast to help compete/diminish the control of Mughal India on SE Asia and Indonesia • Outright wars broke out eventually in India (Mughals/local rulers vs. British and French)…the British East India company sponsored military raids on India (Calcutta) • In general, most occupations in each region were military based…no civilian settlers…this meant that very little European influence impacted indigenous peoples early on (save the Philippines and South Africa)

14. Effects and Impacts of the New World Order • 1. Colonial rivalries turned into hostilities between European nations (Seven Years War) leading to Britain gaining world commercial dominance • 2. Colonies created a new wealthy class in Europe…mainly a wealthy merchant class • 3. One time luxury goods became more affordable to average people (sugar, tobacco, coffee, tea) • 4. Populations were disrupted…most were enslaved…in general, world population began to grow • 5. European ideas merged with indigenous ideas to create new cultures

15. This Week • TUESDAY: Change Analysis: Impact of Columbian Exchange on the World • Wednesday: Video Clip and assignment • Thursday: I/O on World Economy • TOPIC for the Gentlemen – Page 365 “Causation and the West’s Expansion” and any other supporting points in the chapter • TOPIC for the Ladies– Page 373 “Western Conquerors: Tactics and Motives” and any other supporting points in the chapter • Friday: TEST CHAPTER 16, NOTES DUE