Global Economic Development for AP World History

The Industrial Revolution changed the economies of countries worldwide. Many colonies became export economies that exported raw materials, such as cotton or rubber, to the factories of the imperial powers that controlled them. These same export economies were then forced to important finished goods from the industrial powers, creating an unequal economic relationship that enriched the imperial powers and kept the export economies poor. Read the Google Slides to learn about global economic development between 1750 and 1900.

Illustrative Examples

Cotton from Egypt

Rubber from the Amazon and Congo Basin

The Palm Oil Trade in West Africa

The Guano Industries in Peru and Chile

Meat from Argentina and Uruguay

Diamonds from South Africa

Export Economies

Between 1750 and 1900, colonies and other export-oriented economies played a pivotal role in supplying the food and raw materials necessary to fuel the growth of industrial urban centers. European colonial powers established vast overseas empires, exploiting the resources and labor of colonies to meet the demands of their burgeoning industrial economies. For instance, British-controlled colonies in India supplied raw cotton for the textile mills of Manchester, while tea plantations in India and Sri Lanka catered to the preferences of urban consumers in Britain. Similarly, the Caribbean colonies produced sugar and tobacco for export to Europe, contributing to the development of industries reliant on these commodities. In the Americas, the plantation economies of the southern United States and Brazil specialized in the production of cotton and coffee, respectively, to supply global markets. Additionally, colonies in Africa and Southeast Asia provided minerals, rubber, and other raw materials essential for industrial processes. The profits generated from the exploitation of colonial resources fueled the growth of industrial urban centers in Europe and North America, driving economic development and urbanization. However, this economic system was marked by exploitation, unequal trade relationships, and the displacement of indigenous populations, laying the foundation for later struggles for independence and decolonization.

Finished Goods

During the period between 1750 and 1900, colonies played a crucial role in supplying raw materials to industrial centers while simultaneously relying on these centers for finished goods. Colonies, often under the control of European powers, served as resource-rich regions exploited for their natural wealth. They exported commodities such as cotton, tea, sugar, rubber, and minerals to industrialized nations, primarily located in Europe and North America. These raw materials were essential for fueling the industrial revolution, providing the necessary inputs for manufacturing processes in urban centers.

However, colonies themselves often lacked the capacity to manufacture finished goods due to limited infrastructure, technological capabilities, and investment. As a result, they became dependent on industrial centers to meet their needs for manufactured products, ranging from textiles and machinery to consumer goods. This dynamic created a cycle of economic interdependence, where colonies supplied raw materials to industrial centers in exchange for finished goods. The profits generated from the sale of raw materials were often used to purchase these finished goods, perpetuating a system of unequal trade relations and economic dependency between colonial territories and industrialized nations.

Egyptian Cotton

Egypt, with its fertile Nile Delta and favorable climate, emerged as a significant cotton-producing region coveted by British textile manufacturers. British colonial interests in Egypt intensified following the opening of the Suez Canal in 1869, which facilitated the transportation of Egyptian cotton to British markets. British investment in Egyptian agriculture, irrigation projects, and infrastructure further bolstered cotton cultivation in the region. Egyptian cotton became highly sought after for its quality and durability, making it a prized commodity for British textile mills during the Industrial Revolution. As a result, Egypt became one of the largest suppliers of raw cotton to British textile factories, serving as a vital source of raw material to sustain Britain’s booming textile industry. This economic relationship underscored the unequal power dynamics between colonial powers and their colonies, where raw materials from the periphery were exploited to fuel the industrialization and prosperity of the core. Despite Egypt’s role as a major cotton exporter, its economy remained dependent on British markets and vulnerable to fluctuations in global demand, highlighting the complexities of colonial economic dependencies and the legacy of exploitation in the global economy.

Rubber

During the late 19th and early 20th centuries, rubber extraction in the Amazon and Congo Basin epitomized the exploitative practices of imperialist nations. The rubber boom, driven by the growing demand for rubber in industrialized economies, led to the ruthless exploitation of these regions’ natural resources and indigenous populations. European imperialist powers, particularly Belgium in the Congo and Brazil in the Amazon, imposed brutal labor systems to extract rubber. In the Congo, King Leopold II of Belgium’s reign was marked by widespread atrocities, including forced labor, mutilation, and mass killings, to maximize rubber production. Similarly, in the Amazon, indigenous tribes were subjected to enslavement and violence to harvest rubber from the vast rainforest. The rubber extracted from these regions played a pivotal role in fueling the industrial revolution, powering innovations such as automobiles, bicycles, and machinery. However, the economic prosperity derived from rubber came at a significant human cost, with indigenous peoples enduring exploitation, displacement, and loss of cultural heritage. The legacy of rubber extraction in the Amazon and Congo Basin serves as a stark reminder of the dark side of imperialism, characterized by environmental degradation, human rights abuses, and the prioritization of profit over humanity.

The Palm Oil Trade in West Africa

The palm oil trade in West Africa serves as a poignant example of an export economy supporting an industrialized imperial power during the 19th century. European nations, particularly Britain and Portugal, capitalized on the abundant palm oil resources of West Africa, exploiting local labor and resources to fuel their industrial revolution. West African societies, such as those in present-day Nigeria and Ghana, cultivated oil palms and processed palm oil for export to European markets. This trade not only provided essential raw materials for European industries, including soap-making and textile manufacturing but also generated significant profits for imperial powers.

The palm oil trade facilitated the accumulation of wealth and power for European colonial nations, enabling them to strengthen their industrial base and expand their global influence. British and Portuguese merchants dominated the palm oil trade, establishing trading posts along the West African coast and leveraging their economic and military might to control production and distribution networks. Meanwhile, African societies were subjected to exploitation and coercion, with local laborers forced into palm oil production under harsh conditions.

The palm oil trade exemplifies the unequal power dynamics inherent in colonial economic relationships, where colonial powers extracted wealth from their colonies to sustain their own industrial development and economic prosperity. While the trade brought economic benefits to European imperial powers, it also perpetuated systems of exploitation and inequality in West Africa, contributing to social disruption, environmental degradation, and the erosion of indigenous autonomy. Thus, the palm oil trade in West Africa stands as a stark illustration of the intertwined nature of imperialism, industrialization, and economic exploitation during the 19th century.

The Guano Industries in Peru and Chile

The guano industries in Peru and Chile during the 19th century exemplified an export economy supporting industrial imperial powers, notably Britain. Guano, a valuable fertilizer derived from seabird excrement, became a prized commodity for agricultural use in Europe and North America due to its high nutrient content. Peru and Chile possessed abundant reserves of guano-rich islands along their coastlines, which were exploited by European and North American companies under the guise of economic development.

British interests played a significant role in the guano industry, as British merchants and companies dominated the trade and transportation of guano to global markets. The British Empire, with its burgeoning agricultural sector and industrial base, relied heavily on imported guano to boost crop yields and support its agricultural expansion. British merchants established lucrative contracts with Peruvian and Chilean governments, securing exclusive rights to exploit guano deposits in exchange for financial compensation.

The guano industry transformed Peru and Chile into major exporters of this valuable resource, generating substantial revenues for their respective governments. However, this economic boom came at a cost to local populations and environments. Indigenous communities were displaced from their ancestral lands to make way for guano extraction operations, while the intensive harvesting of guano led to ecological degradation and disruption of seabird populations.

Despite the economic benefits derived from the guano trade, the industry perpetuated patterns of dependency and exploitation, with Peruvian and Chilean economies remaining largely subservient to the interests of industrialized imperial powers like Britain. The guano industry serves as a poignant example of how export economies in the Global South supported the industrialization and economic development of imperial powers in the Global North, while simultaneously exacerbating social inequalities and environmental degradation in colonized regions.

Meat from Argentina and Uruguay

The export of meat from Argentina and Uruguay during the late 19th and early 20th centuries exemplified an export economy supporting industrial imperial powers, particularly Britain. Both Argentina and Uruguay possessed vast grasslands, known as the Pampas, which were ideal for extensive cattle ranching. British investment and technology played a crucial role in the development of the meatpacking industry in these countries, transforming them into major exporters of beef to global markets.

British capital financed the establishment of large-scale ranching operations in Argentina and Uruguay, where cattle were raised primarily for export. The invention of refrigerated shipping by British engineer Sir Charles Parsons in the 1870s revolutionized the meat industry by enabling the transportation of chilled beef over long distances. This innovation facilitated the export of Argentine and Uruguayan beef to European markets, particularly Britain, where it became a staple food for the growing urban population.

The meatpacking industry became a cornerstone of the economies of Argentina and Uruguay, generating significant revenues and driving economic growth. However, this economic prosperity came at a cost to local populations and environments. Indigenous peoples were displaced from their lands to make way for cattle ranching, while the expansion of ranching operations led to environmental degradation and deforestation of the Pampas.

The export of meat from Argentina and Uruguay supported the industrialization and economic development of imperial powers like Britain, providing a cheap source of protein for urban workers and contributing to the profitability of British meatpacking companies. However, it also perpetuated patterns of dependency and exploitation, with Argentine and Uruguayan economies remaining largely subordinate to the interests of industrialized imperial powers. The meat industry serves as a stark example of how export economies in the Global South supported the economic growth of industrial imperial powers, while simultaneously exacerbating social inequalities and environmental degradation in colonized regions.

Diamonds

The trade in diamonds from Africa during the late 19th and early 20th centuries illustrates an export economy that supported industrial imperial powers, particularly Britain. Regions such as South Africa and Sierra Leone harbored vast diamond reserves, attracting European colonial powers keen on exploiting these valuable resources. The discovery of diamonds in Kimberley, South Africa, in 1866 sparked a rush, leading to the establishment of extensive mining operations by British companies like De Beers.

British capital and technology played a central role in shaping the diamond industry in Africa, facilitating the extraction, processing, and global trade of diamonds. However, this economic expansion exacted a severe toll on African laborers and the environment. Africans working in the diamond mines endured abysmal conditions, subjected to grueling labor, exploitation, and brutality. Forced to toil in perilous underground environments, they faced constant hazards, including cave-ins, accidents, and exposure to hazardous chemicals. The harsh treatment and disregard for their well-being underscored the deep injustices of colonial exploitation.

Moreover, the diamond trade had devastating ecological consequences, as mining operations wreaked havoc on the environment. Deforestation, soil erosion, and pollution of waterways were rampant, irreversibly altering local ecosystems and threatening biodiversity. The environmental degradation caused by diamond mining had far-reaching repercussions, exacerbating climate change and undermining the livelihoods of indigenous communities dependent on the land.

Despite the immense profits reaped by imperial powers like Britain from the diamond trade, the industry’s success came at a grave human and environmental cost. It perpetuated systems of exploitation and inequality, leaving a legacy of suffering, environmental degradation, and social injustice in its wake. The diamond industry serves as a stark reminder of the profound consequences of colonialism and the urgent need for environmental and social justice in the pursuit of economic prosperity.

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Unit 6: Consequences of Industrialization

AP World History

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