The economics of Imperialism

1. 1400: high transaction + transportation costs  sugar, pepper, spices, silk rare • Prompt Explorers to find new route east • Lead to advances in: The economics of Imperialism

2. Oh the Spanish! • 1415: Portuguese seize Muslim Port-by 1500 reach India and major trading ports of south Asian seas • Spain gets jealous (Columbus finds America) • 1517 :Spanish reach Aztec Empire • Weapons, military, disease, tactics make Spanish gain control • Next comes Incas in Peru • Mid 1500- Spain gain control in South America

3. …And the rest of Europe? • Costly military competition countries look for new sources of revenue • Countries offer grants of monopoly in overseas trade increase incentive for exploration + profit from taxes on trade • Fear being excluded from raw goods + riches other countries turn to exploration:

4. Spanish America • Spanish find highly developed wealthy societies that they conquer • They gain gold, silver, and crops(potatoes + corn) • Look to Africa for labor as natives are no use

5. Caribbean + North America • Spanish loose interest in Caribbean islands • Colonize in turn by • Ideal growth for sugarcane + Indian crops • Use slave labor on plantations • Prices fall  sales increase • Tobacco found in North America • 2.5 million people to N.A. by American Revolution

6. Africa + Asia • Until late 19th century due to disease African riches come through trade with indigenous people • By end of 19th century 10million slaves transported overseas • Europe control sea lanes and dominate trade but no politics in Asia • Respect local law rely on negotiation

7. 1750-1850 Industrial Revolution • + + =↑productivity ↓ price • American Revolution  Broader decolonization • (by the end of the 19th century majority of America won independence from its European Colonizers) • Shift of balance of power between Europeans and the indigenous political regimes in Asia

8. And in India: • 1750 East India Company side with local chiefs over distribution of revenue • 1757 win! • 1765 East India company assume responsibilities for civil administration • Take control of Indian trade (restrict competing companies) • Growth of European trade in India destabilize local politics • British dominance

9. India Rebels • Sepoy Mutiny of 1857 (Muslim + Hindu troops rebel after religious beliefs violated ) • Government of India act 1858(respond to disruptions) Take control from East India Company and give to British crown, last ‘till 1947

10. China • Chinese trade drain silver from Europe • Britain begin trading opium • Spread opium addiction and establish trade expansion

11. Europe  Africa • Quinine treatment fight malaria • Steam boats + railways push into Africa • Africa source of raw goods + metals • No nation afford fall behind  competition for control • Lead to Berlin Conference 1884-85 Africa divided

12. Why Goodbye Great Empire? • End of WWI colonial dependencies of German + Ottoman empires transfer to Britain + France • Cost of war + burden of economic stability + WWII reduce resources • Growth of indigenous movements = costly maintenance • 1960 European powers withdraw former colonies