Economic Imperialism Between 1750 and 1900 for AP World History

Jan 28

6 min read

We have already seen how colonial powers benefited from their domination over their colonies. In this topic, we will explore different ways these powers engaged in economic imperialism to maintain their advantage in trade. Read the Google Slides to learn about economic imperialism between 1750 and 1900.

Illustrative Examples

The Opium Wars

Port of Buenos Aires

Cotton from Egypt and Southeast Asia

Palm Oil from Sub-Saharan Africa

Copper from Chile

Economic Imperialism

Between 1750 and 1900, economic imperialism surged as powerful European nations sought to expand their wealth and influence across the globe. This era was characterized by the aggressive pursuit of economic domination through colonization, trade, and exploitation of resources in regions across Africa, Asia, and the Americas. European powers such as Britain, France, Spain, Portugal, and the Netherlands established colonies and trading outposts, often through force or coercion, to secure access to valuable resources like gold, silver, spices, and raw materials. These imperialist ventures were fueled by the rise of industrial capitalism, which demanded ever-increasing supplies of resources and markets for manufactured goods. The imposition of unequal trade agreements, the extraction of natural wealth, and the forced labor of indigenous populations contributed to the enrichment of imperial powers at the expense of colonized peoples, leading to widespread economic disparity and underdevelopment in many regions. The legacy of economic imperialism during this period continues to shape global economic relations and inequalities to this day.

Advantages for Europe and the United States

During the 18th and 19th centuries, companies and merchants in Europe and the United States benefited from a range of structures that provided them with significant advantages in trade with other countries. Firstly, colonial empires provided a ready source of raw materials and captive markets for manufactured goods, allowing European powers to monopolize trade and extract wealth from their colonies. Additionally, the development of colonial infrastructure such as ports, roads, and railways facilitated the movement of goods to and from distant markets. Furthermore, the rise of joint-stock companies and investment banks enabled merchants to pool resources and spread risks, fostering the growth of transnational trade networks. The establishment of trade monopolies and the granting of exclusive trading rights by colonial powers further consolidated the power and influence of certain companies, such as the British East India Company and the Dutch East India Company. Moreover, the imposition of tariffs, subsidies, and other protectionist measures by European and American governments shielded domestic industries from foreign competition, allowing them to expand and dominate international markets. These structures not only enriched companies and merchants but also contributed to the perpetuation of unequal economic relationships between the industrialized West and the colonized nations of the Global South.

Cotton in Egypt and Southeast Asia

The cultivation of cotton in Egypt and Southeast Asia during the 19th century, with subsequent exportation to British textile factories, serves as a poignant example of the unfair advantage colonial powers held over their colonies. British colonial rule in Egypt and various Southeast Asian territories facilitated the establishment of large-scale cotton plantations, often exploiting local labor and resources to maximize production. Under British control, Egypt’s fertile Nile Delta became a major cotton-growing region, while territories like India, Burma, and Malaya in Southeast Asia also saw significant expansion of cotton cultivation. These colonial administrations implemented policies that favored the interests of British textile manufacturers, including preferential land allocation, coercive labor practices, and infrastructure development focused on facilitating the export of raw cotton to British mills. Meanwhile, indigenous populations faced displacement, exploitation, and economic marginalization. The cotton produced in these colonies became essential to Britain’s textile industry, providing a cheap and reliable source of raw material that fueled the country’s industrial revolution and global dominance in textile manufacturing. However, this economic relationship was deeply exploitative, as colonial powers reaped immense profits while subjecting colonized peoples to poverty, disenfranchisement, and environmental degradation. Thus, the cotton trade between Egypt, Southeast Asia, and British textile factories exemplifies the systemic injustices inherent in colonialism, where colonial powers extracted wealth and resources from their colonies to bolster their own economies.

The Opium Wars

The Opium Wars were a series of conflicts between China and Britain that unfolded in the 19th century, rooted in Britain’s fervent pursuit of profits from the opium trade. Beginning in the early 1800s, British merchants, backed by the East India Company, flooded China with opium, despite imperial edicts banning its sale. This illicit trade flourished, causing widespread addiction and social disruption within China. In response to mounting societal and economic issues, the Chinese government took drastic measures, confiscating and destroying opium shipments, and cracking down on British traders. Tensions escalated, culminating in armed clashes, notably the seizure of opium stockpiles by Chinese authorities in 1839. In retaliation, Britain dispatched military forces, equipped with superior weaponry, to assert its dominance. The conflict, known as the First Opium War (1839-1842), concluded with the Treaty of Nanking, which forced China to cede Hong Kong to Britain, open several ports for trade, and grant extraterritorial rights to British citizens. However, disputes over trade and diplomatic matters persisted, leading to the Second Opium War (1856-1860). This time, Britain, along with France, inflicted further military defeats on China, resulting in additional concessions, including the legalization of opium trade, increased access to Chinese markets, and expanded foreign influence. The Opium Wars marked a significant chapter in China’s history, highlighting the destructive impact of imperialism and sparking a period of national introspection and reform known as the “Century of Humiliation.”

The Port of Beunos Aires

The construction of the Port of Buenos Aires in the late 19th century was heavily influenced by the involvement of British firms, marking a significant chapter in Argentina’s maritime history. British companies played a central role in financing, designing, and implementing the infrastructure, leveraging their expertise and capital to transform Buenos Aires into a bustling commercial hub. However, this collaboration also underscored a broader dynamic of unequal economic relations, where British firms wielded disproportionate influence and extracted significant benefits from their involvement. The construction of the port created an unfair advantage for Britain in several ways. Firstly, British firms often secured preferential treatment in contracts and concessions, allowing them to control key aspects of the port’s operations and extract favorable terms for their own benefit. Secondly, the influx of British investment facilitated the establishment of British-controlled shipping lines and trading networks, giving British merchants a dominant position in the lucrative trade routes between Argentina and Europe. Additionally, the modernization of Buenos Aires’ port infrastructure enhanced Britain’s ability to export manufactured goods and import raw materials, further reinforcing its economic dominance over Argentina. Thus, while the construction of the Port of Buenos Aires spurred economic growth and development, it also perpetuated asymmetrical power dynamics that favored British interests at the expense of Argentine sovereignty and autonomy.

Palm Oil

The production of palm oil in sub-Saharan Africa, with subsequent exportation to Europe and the United States, epitomizes the unfair advantage colonial powers gained over their colonies during the 19th and early 20th centuries. Colonial administrations in regions such as West Africa, including present-day Nigeria, Ghana, and Cameroon, implemented policies that facilitated the large-scale cultivation of palm oil. Indigenous land was often appropriated for plantations, and local labor was exploited to meet the growing demand for this valuable commodity. European and American companies, backed by colonial governments, controlled the production, processing, and exportation of palm oil, reaping substantial profits while relegating indigenous populations to the status of laborers and tenants on their own land. The palm oil extracted from these colonies became a crucial ingredient in a wide range of industrial products, including soaps, cosmetics, and processed foods, fueling the industrialization and economic development of Europe and the United States. However, this economic relationship was deeply exploitative, as colonial powers extracted wealth from their colonies while perpetuating systems of oppression and inequality. The legacy of colonial-era palm oil production continues to shape contemporary global supply chains, with multinational corporations often maintaining control over the industry to the detriment of local communities and ecosystems in sub-Saharan Africa.

Copper from Chile

The extraction of copper from Chile stands as a stark example of the unfair advantage colonial powers once held over resource-rich territories. Chile’s abundant copper deposits, particularly in the Atacama Desert, attracted the attention of European and American interests during the 19th and early 20th centuries. Colonial powers, most notably Britain and the United States, established control over Chile’s copper mines through a combination of economic influence, political manipulation, and sometimes direct intervention. Foreign companies exploited Chile’s labor force, often subjecting workers to harsh conditions and low wages, while reaping immense profits from the exportation of copper to industrialized nations. The Chilean government, under pressure from foreign interests, frequently enacted policies favorable to foreign corporations, granting them concessions and tax breaks at the expense of local communities and the national economy. The extraction of copper from Chile fueled the industrialization and economic growth of colonial powers, providing them with a vital resource for the production of electrical wiring, machinery, and telecommunications equipment. Meanwhile, Chilean workers and communities bore the brunt of environmental degradation, social upheaval, and economic exploitation.

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