[PPT]The Global Economy - Part II - Hofstra People · Web viewDifferent types of feudal societies...

GS 1 – Introduction to Global StudiesProfessor: Dr. Jean-Paul Rodrigue

Hofstra University, Department of Global Studies & Geography

Topic 2 – The Global Economy

A – Genesis of the Global EconomyB – International Trade and TransportationC – Multinational Corporations

© Dr. Jean-Paul Rodrigue© Dr. Jean-Paul Rodrigue© Dr. Jean-Paul Rodrigue

A – GENESIS OF THE GLOBAL ECONOMY

The Agricultural RevolutionTrade in Ancient TimesMercantilism and ColonialismThe Industrial Revolution


The Agricultural Revolution (Neolithic Revolution): Main Transformations

Year (BCE) Plants Animals Settlement

14,000

12,000

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

Gathering wild plants Hunting and trapping Seasonal camps

Cultivation of cereals& legumes

Animal management(sheep, goat, cattle, pig)

Small villages, ceremonialcenters

Domestication of Wheat and barley Morphological domestication

(sheep, goat, cattle, pig) Large ceremonialcenters

Beans, chickpea

Dairy products

Oil (olive) and wine production

Fertilizers (manure)

Small-scale irrigation

Large scale irrigation

Wool production

Donkey domesticationHorse domestication

Multi-generationalvillages

Proto-urbanism

Urban sites

City-states

States and empires


The Agricultural Revolution (Neolithic Revolution): Main Core Areas

Domestification (crops & animals)Sedentary lifestyle (property)Irrigated agriculture (collective effort)Agricultural surpluses (specialization)Governments (states / stratification)

Nile(5,000 B.C.)

Mesopotamia(6,500 B.C.)

Indus(4,700 B.C.)

Ganges(4,700 B.C.)

Huang He(4,500 B.C.)

World’s population (5-10 million mostly nomadic)

(“The land between rivers”)

Metallurgy (weapons, instruments)Wheel (transportation)Pottery (storage)Writing and numbers (taxation)


The Agricultural Revolution

■ The Feudal society• A system of bonds and obligations:

• Power in land ownership.• Administrative/legal (Lord) and religious (Church) control.• Rent/Royalties from the serf to the lord (in kind or labor).• Fixation of the productive forces (tools and labor) in agricultural production.• Limited socioeconomic changes over centuries.

• Economy:• Small local markets (fairs).• Trade relatively limited.• Low levels of productivity (subsistence level).• Profits taken away by the lord/church, inhibiting any increases in

agricultural productivity.• 80 to 90% of the population was in agriculture.

• Different types of feudal societies (China, Japan, Europe).


Ancient Trade Issues

Nature of tradeHigh value commodities (Silk,

spices, perfumes, gems, gold / silver, ivory).

When maritime transport was available, more bulky commodities could be traded (grain, wine, olive

oil).Many intermediaries.

Limiting factorsCapacity and speed of inland

transportation; Few roads.Diversity of currencies and units of

measure.Tariffs.

Unreliable navigation.Insecurity / piracy.


The Silk Road and Arab Sea Routes (8th to 14th Centuries)

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Mercantilism

■ The European origin of the global economy• The fifteenth century marked the beginning of an expansion of

European control throughout the world.• Europe progressively assured the development of the global

economy by an extension of its hegemony:• Mercantilism was the first phase.• The industrial revolution was the second.

• Over three centuries (1500-1800):• The setting of capitalistic systems.• Limits of the world were pushed away.• A world where borders are drawn; a delimited world.• Establishment of vast colonial empires.• Waves of innovations and socio-economic transformations.

Which role Europe played in the setting of the global economy?


The Pillars of Mercantilism

Nation-State• Treaty of Westphalia (1648); temporal authority of the state.• Promotion of national wealth and power.• Wealth measured by the amount of bullion (gold or silver).• Projection of national sea power to control foreign markets.

Unequal Trade• Rise of merchants, markets and fairs.• Encourage domestic production and exports, discourage imports.• Discovery and setting of new markets through colonization.• Setting of the first multinational corporations.• Positive trade balance with other countries under control.

Techniques• Gunpowder and artillery.• Improvements in navigation, maritime shipping and transport.• Moveable type (mass production and marketing of books).• Mechanical clocks, instruments, increased skills of craftsmen.


Early European Maritime Expeditions, 1492-1522

Exploration (inventory of territories and resources).Setting of colonial empires (control of territories).Setting of a global trade network.

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The Eastern and Western Maritime Routes to Asia


Density of Ship Log Entries, 1750-1810

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Major Oceanic Gyres and Wind Patterns

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Mercantilism and Colonialism

■ Colonialism• Domination (economic, political, social, cultural) of a territory by

another country.• Quest for riches and profit

• Early colonialism was a capitalist venture.• Religious and racist drive:

• A moral justification.• Support of the church.

• Military technology advantages:• Better guns.• Better ships (artillery).

• Two waves of colonialism:• First wave: Mercantilism (1415-1815); independence of the Americas.• Second wave: Industrial revolution (1815-1969).


Spanish and Portuguese Empires (1581-1640)

Treaty of Zaragoza (1529)Specified the anti-meridian to the line of demarcation in the Treaty of Tordesillas.To sort the ownership of the “spice islands”.

The Treaty of Tordesillas (1494)Between Spain and Portugal (1,770 km west of Cape Verde).Separate the newly discovered lands (and those to be discovered) by a demarcation.

Read this content How the Treaty of Tordesillas shaped the global economy?

http://people.hofstra.edu/geotrans/eng/ch2en/conc2en/spanish_and_portuguese_empires.html


Mercantilism

■ Trade• Changes in the nature of trade:

• More than 90% of the population was agricultural.• Growing consideration to the “mass market”.• Luxury goods were no longer the bulk of what was being exchanged

(spices, silk, etc.).• “Consumer goods” such as grain, wine, salt, wool, cloths and metals.

• European control of global trade:• From intermediaries (e.g. Venice, Arabs) to direct involvement.• Setting of militarized trade networks; control of the “global supply chain”.• Transformation of foreign societies (colonialism, plantations, new

products).• The setting of a core (colonial nations) and a periphery (colonies).


Dutch East India Company, Trade Network, 17th Century

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Colonial Trade Pattern, North Atlantic, 18th Century

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The Industrial Revolution

■ Nature• Started at the end of the eighteenth century (1750-1780).• Economic and social transformations first observed in England.• Demographic transition of the population:

• Fast growth rate.• Improvements in sanitary conditions and hygiene.

■ A “revolution” in the industry• Why speak of “revolution” for a process occurring over on more

than 150 years?• At the scale of the world’s economic history, the industrial revolution

radically changed the foundations of economic systems.• It established the foundations of the global of the economy.• Most of the technical innovations that modified the way to produce and to

transport took place on a short period, mainly between 1760 and 1800.


The European Origins of the Industrial Revolution

Competition• Political fragmentation (monarchies and republics).• Divided into competing corporate entities (early

multinationals).

The Scientific Revolution• 17th century breakthroughs in mathematics, astronomy,

physics, chemistry and biology.• The scientific method.

The Rule of Law and Representative Government• Private property rights.• Representation of property owners in elected legislatures.


The European Origins of the Industrial Revolution

Modern Medicine• Breakthroughs in health care (19th and 20th centuries).• Drop in death rates and increase in life expectancy.

Consumer Society• Supply of productivity-enhancing technologies.• Demand for more, better, and cheaper goods.

Work Ethic• Combine more extensive and intensive use of labor.• Higher savings rates; sustained capital accumulation.



■ Technological innovations• New methods of production:

• New materials (steel, iron, chemicals).• Substitution of machines to human and animal labor.• Usage of thermal energy to produce mechanical energy.

• Changes in the nature production and consumption:• Increased productivity within a factory system of production.• Division of labor.• New industrial locations (initially waterfalls and then coal fields).

• Main sectors of innovation:• Power generation.• Textiles.• Metallurgy.• Transportation.


Major Technological Innovations of the Industrial RevolutionPower Generation Textiles Metallurgy TransportationThermal energy used for mechanical energy

Mechanization of spinning and weaving

Mass production of steel (shipbuilding, rails, construction and machines)

Modern transport and telecommunication systems

First pump (1712) for water in mines.Watt (1769); significant improvements.Steam locomotive (1824).Electric generator (1831).Steam turbine (1884).

“Flying shuttle” (1733) doubled weaving productivity.“Spinning jenny” (1765).“Water frame” (1768); hydraulic power.“Spinning Mule” (1779); steam power.Sewing machine (1846).

Coke instead of coal for iron production (1709).Bessemer process (1855).

Railroads (1825).Telegraph (1834).Steamship (1838).Telephone (1876).

http://upload.wikimedia.org/wikipedia/en/5/5c/Watt_steam_pumping_engine.JPG

http://upload.wikimedia.org/wikipedia/en/e/ed/Spinning-mule.jpg

http://upload.wikimedia.org/wikipedia/en/6/6a/ConverterB.jpg

http://upload.wikimedia.org/wikipedia/commons/4/49/Blucher_engine.jpg


Major Inventors of the Industrial Revolution

Inventor Invention Date

James Watt First reliable Steam Engine 1775Eli Whitney Cotton Gin, Interchangeable parts for

muskets1793, 1798

Robert Fulton Regular Steamboat service on the Hudson River

1807

Samuel F. B. Morse Telegraph 1836Elias Howe Sewing Machine 1844

Isaac Singer Improves and markets Howe's Sewing Machine

1851

Cyrus Field Transatlantic Cable 1866Alexander Graham Bell Telephone 1876

Thomas Edison Phonograph, Incandescent Light Bulb 1877, 1879Nikola Tesla Induction Electric Motor 1888

Rudolf Diesel Diesel Engine 1892Orville and Wilbur Wright First Airplane 1903

Henry Ford Model T Ford, Assembly Line 1908, 1913

Provide the main technological changes brought by the industrial revolution


Annual Energy Consumption in England and Wales, 1560s to 1850s (MJ)

1561-70 1600-9 1650-9 1700-9 1750-9 1800-9 1850-90%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CoalWaterWindFirewoodDraught animalsHuman

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American Rail Network, 1861

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Global Telegraph System, c1901 (the Victorian Internet)


Geographical Impacts of the Suez and Panama Canals

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Liner Transatlantic Crossing Times, 1833 – 1952 (in days)

1830 1855 1880 1905 1930 19550

2

4

6

8

10

12

14

16

18

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■ Agriculture• A second agricultural revolution.• Introduction of new food sources:

• The potato could account for 22% of the post-1700 increase in population growth.

• Crop rotation, selective breeding, and seed drill technology.• Less agricultural population.• Growth of the production of food.• Mechanization and fertilizers:

• Combine (McCormick, 1831).• Scientific and commercial agriculture (crop rotation).• Declining food prices.



■ Social changes• Significant urbanization:

• Migration from the countryside to cities.• A shift from the dominance of Asian cities (e.g. China and India) to Western

Europe and North America.• By 1870 more of the half of the population of the first industrial nations was

no longer in the agricultural sector.• England had reached this stage since 1820.• By1901, 75% of the English population lived in cities.

• Creation of a labor class:• Exchange of labor for a wage.• Development of the Marxist ideology.


Share of the Population in Agriculture, Early Industrial Countries, 1820-1910

Great Britain France Germany United States0

10

20

30

40

50

60

70

80

90

1820185018701910


World’s Largest Cities, 1850

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■ Industrial revolution and globalization• Setting of unequal trade relations:

• Between colonial powers and their colonies.• Between industrial nations and developing countries (e.g. Latin America).• First through mercantilism.• Then through colonialism/imperialism.

• Setting of high capacity maritime and rail transport systems.• Consolidation of colonialism in late 19th century:

• First Opium War in 1839; occupation of coastal Chinese cities.• Opening of Japan in 1853.• Consolidation of the British Raj in 1858.• “The Scramble for Africa” in the 1890s.

How the industrial revolution contributed to globalization?


Impacts of Colonialism

Annihilation and displacement of indigenous populations• Forced migration through slavery (Africa) or contract workers (Southeast Asia).• Large populations died because of the introduction of diseases (e.g. smallpox)

and colonial wars.

Development of the primary sector• Land expropriation.• Export-oriented plantations (sugar, cotton, tea, coffee, fruits, rubber, tobacco, etc.).• Economic dependency; Suppressing industrialization.

Dual society• Concentration of power and wealth in a ruling elite class (sometimes a minority).• Population in servitude (e.g. taxation).

Artificial boundaries• “Balkanization”.


Colonies Controlled by Main Colonial Powers, 1500-2000

1500 1550 1600 1650 1700 1750 1800 1850 1900 1950 20000

20

40

60

80

100

120

140

NetherlandsFranceBritainSpainPortugal


Colonies by Main World Region, 1500-2000

1500 1550 1600 1650 1700 1750 1800 1850 1900 1950 20000

20

40

60

80

100

120

140

160

180

Pacific IslandsNorth AmericaAsiaLatin AmericaAfrica


Territories that Belonged to a Colonial Empire

BelgianBritishDanish

FrenchDutch

Italian

Spanish

PortugueseRussian


European Control of the World, 1500-1950

1800 (37%)1878 (67%)1913 (84%)


Decolonization


Towards a Global World: Major Phases of Socioeconomic Change

NeolithicTribe / VillageHunting and

gatheringLanguage

FeudalismCity-state, KingdomSettled

agricultureWriting

IndustrialNation-state

Industrial systemPrinting

GlobalGlobal

governancePost-industrial

Information technologies

Slow growth

Agriculture and land ownership

Demography

Wealth

Fast growth

Industry Technology

Slow growth


The Genesis of the Global Economy

Explain the main steps that led to the creation of the global economy.

[PPT]The Global Economy - Part II - Hofstra People · Web viewDifferent types of feudal societies...

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