Creation, Interaction and Expansion of Economic Systems

1. Creation, Interaction and Expansion of Economic Systems • This theme includes: • Agricultural and pastoral production • Trade and commerce • Labor systems • Industrialization • Capitalism and Socialism

2. Foundations Unit8000 BCE – 600 CE

3. Neolithic Revolution • Traditional Economy • Hunting and gathering • Sedentary agriculture developed between 10,000 and 8,000 BCE • 1st developed in southwestern Asia • Earliest method was slash-and-burn agriculture • Subsistence agriculture • Herding animals (pastoralism) Slash-and-burn agriculture in northeast India

4. Development of Agriculture

5. Economic Regions

6. Early Village Economy • Farming led to the rise of permanent villages • Jericho • Village life led to specialized labor • Development of early industry • Pottery, metallurgy, and textiles

7. Ancient Civilizations • Mesopotamia, Egypt, & Indus River Valley • Irrigation led to improved agriculture • Development of cities contributed to rise of trade • China • Regular rains & fertile soil minimized irrigation • Olmec • Develop in rainforest; water control systems • Chavin • Develop in mountains; complex irrigation

8. Nile-Indus Corridor

9. Pre-classical labor systems • Slavery • Existed in all early civilizations but was relatively unimportant • Most slaves gained through military conquest • Egypt • Used corvée labor to build pyramids & temples • Peasants were bound to the land • Men were organized into labor gangs of 50-100

10. Pre-classical labor systems • Mesopotamia • Large number of slaves due to militaristic nature of society • Peasants lost their freedom over time • Rise of debt slavery • China • Zhou dynasty peasants paid a percentage of their crops to aristocrats in exchange for protection • Manorial system

11. Classical Civilizations • Han China • Monopolized production of iron, salt, and liquor • Rise of the Silk Road • Mauryan India • Ashoka built irrigation systems and roads to promote trade • Mayans • Terrace farming improved production of cotton, maize, and cacao

12. Classical Civilizations • Ancient Greece • Cities, such as Athens, become centers of trade • Economy depended heavily on slavery • Rome • Latifundia – large landed estates focused on commercial agriculture (olive oil, wine, wheat) • North Africa was the major grain producing region • Depended on slave labor • Roman roads promoted trade and linked empire to Silk Road

13. Cotton The Silk Roads

14. Classical era labor systems • China • Free peasants were the backbone of the labor force • Peasants ranked just below bureaucrats but above artisans and merchants • Qin Shi Huangdi ended the manorial system • “Recruited” labor to build the Great Wall • Silk weaving supplemented farm income • “Men as tiller, woman as weaver” • During the Han dynasty, slaves made up less than 1% of the total population

15. Classical era labor systems • Greece & Rome • Slaves never constituted more than 50% of the population • Slaves worked as domestic servants, miners, and farmers • In Greece, slaves could serve as tutors • In Rome, development of commercial agriculture led to the rise of slavery • Rome also used slaves as gladiators and chariot racers

16. Classical era labor systems • India • Caste system was based largely on job classification • Farmers did not rank high in prestige • Merchants had a higher social standing than they did in China or the Mediterranean • Slaves played almost no role in the economy • Sudras (lowest caste) and untouchables took the place of slaves

17. Post-Classical Unit600 – 1450

18. Arabs • Did not rely heavily upon agriculture • Abbasid sakk (checks) encouraged trade • Urbanization: Baghdad • Dar al-Islam facilitated expansion of trade • Islamic law protected merchants • Revival of the Silk Road • Growth of Indian Ocean trade • Dhows increase the volume of maritime trade

19. Indian Ocean trade routes Chinese junk East Africa gold salt slaves Arab dhow

20. Labor in the Islamic World • Islamic slaves were viewed as humans rather than just property (chattel) • Slavery was seen as a method of conversion • Slaves were acquired from Africa or central Asia • Abbasid introduced the use of Turkish slave-soldiers • Mamluks • Janissaries (Ottoman Empire)

21. Post-Classical Empires • Byzantine Empire • Manufactures glassware, jewelry, & silk • Trade a major part of the economy • Mediterranean Sea, Silk Roads, Russia, etc. • Urbanization: Constantinople • Sudanic Africa (Ghana, Mali, Songhai) • Trans-Saharan trade • Use camel caravans to trade gold, slaves, and ivory for horses, manufactured goods, and salt • Urbanization: Timbuktu

22. Trans-Saharan trade routes

23. Post-Classical Empires • Swahili Coast • Trade gold and parts of exotic animals to Islamic and Indian merchants for products from Persia, India, and China • Urbanization: Mogadishu, Kilwa, etc. • Great Zimbabwe • Supplies gold to the Swahili coast

24. Tang/Song China • Emphasis on internal trade • Champa rice & terrace farming • Grand Canal & flying money • Song “pre-Industrial” era • Commercial economy focused on the production of silk, porcelain, & steel • Urbanization: Hangzhou

25. Post-Classical Empires • Mongols • Pastoralists • Promoted trade on Silk Road via Pax Mongolica • Marco Polo • Japan • Villages relied on rice cultivation • World’s leader in silver production • Trade silver to China for manufactured products • Development of feudalism caused peasants to become serfs

26. Medieval Europe • Manorialism • Self-sufficient agricultural estates worked by serfs • Three-field system & moldboard plow • Trade revived after 1000 CE • Rise of merchant & craft guilds • Crusades led to an increase in demand for Asian products • Rise of Italian merchants & the Hanseatic league • Urbanization: Italian cities & Paris

27. Hanseatic League (1400s-1600s)

28. Post-Classical Empires • Aztecs • Chinampas • Pochteca monopolized long-distance trade • Tribute system • Inca • Built 9,500 miles of roads to facilitate trade • Inca socialism • Use terrace farming to grow potatoes • Mita labor

29. Early Modern Era1450 - 1750

30. Rise of World Trade • European exploration • Seeking easier access to Asian luxury products • Columbus discovery of the Americas • Vasco da Gama reached India in 1498 • Spain established Manila in 1571 • Manila galleons connect Asian markets to American silver • Trade Empires • Spain/Portugal in the 16th century • Netherlands (Dutch) in the 17th century • England (Great Britain) in the 18th century

31. European Colonization

32. World Trade after 1571

33. Dutch Trade Empire

34. Western Europe • Commercial Revolution • Rise of a middle class (bourgeoisie) and proletariat • Mercantilism • Rise of manufacturing • Encouraged colonization • Joint Stock Companies • Privately owned with government support • Ex. Dutch East India Co., Royal African Co., Virginia Company

35. Economy of New Spain • Encomiendas • Manorial system in the New World • Declined with the death of the natives • Plantations • Majority of labor provided by African slaves

36. Economy of New Spain • Mining • Silver “the Heart of the Empire” • Largest mine was Potosi • Mita labor • Haciendas • Estates focused on cash crops & livestock

37. Africa & the Slave Trade • Commercial relationship developed between West African kingdoms & Europe • Triangle Trade or the Atlantic System • Slavery was common in Africa • Slave Trade • Trade continued with Muslim merchants • Increase demand caused by sugar plantations • Atlantic slave trade altered traditional African trade routes

38. African Slave Trade

39. Emancipation of Slaves

40. Ming Dynasty • Economic Recovery • Rebuilt irrigation systems destroyed by the Mongols • Increased production of silk textiles & porcelain • “Silver Sink” • Single-whip tax system • Chinese demand for silver contributed to rise of world trade • Limited trade to Macao/Canton

41. Voyages of Zheng He • Established tributary relationships throughout the Indian Ocean • Exchanged silk & porcelain for other luxuries

42. Tokugawa Japan • Portugal established trade relations in 1543 • Trade silver to China in exchange for luxury products • 2nd in silver exports behind Spain • Began isolation in 1640s • Allowed Dutch & Chinese to trade at Nagasaki • Urbanization led to rise of a merchant class

43. Russia • Peter the Great modernized the economy focused on mining and metallurgy • Serfdom • Began under Mongol occupation • Provided cheap labor for Russian agriculture • Could be bought and sold

44. Mughal Empire • Continued manufacturing cotton textiles • British establish trading posts at Madras and Bombay in the early 1600s • British East India Company continued to expand their interests into the 1700s

45. The Modern Era1750-1914

46. Causes of the Industrial Revolution • Favorable natural resources • Population Pressure • Abundance of labor • Growth of large manufacturing sector • Cottage industry (putting-out system) • Advantages in world trade • Technological innovation • Government support of business

47. Industrial Technology • Cottage Industry (putting-out system) • Mechanization of weaving • Cotton that took an Indian worker 500 hours to spin took a machine in England 80 minutes to spin • Iron smelting • Bessemer steel process • Energy • Steam engine and electricity • Transportation • Canals, steamboat, railroads

48. Economic Effects of Industrialization • Labor changes • Factory labor was dangerous and toilsome • Initially women & children work in factories • Rise in white collar jobs for new middle class • High unemployment rates • Labor unions were formed to protect workers • Rise of consumer culture • Standard of living increases • Frequent economic depressions

49. Economic Effects of Industrialization • New economic theories • Capitalism • Direct attack on mercantilism • Positivism • Socialism • The Communist Manifesto by Karl Marx and Friedrich Engels • Communism

50. Global Industrialization • Industrialization turned nations into either manufacturers of consumer goods or suppliers of raw materials • Manufacturers: Western Europe, the United States, Japan, Russia(?) • Suppliers: the Ottoman Empire, Egypt, China, India Africa, Latin America, Southeast Asia, Australia