Economic + Social Development 1800-50 Flashcards
What is a fortress economy?
An economy based on the country’s role as a fortress, Malta’s economy was completely dependent on its role as a naval and military base. It’s position in the Mediterranean helped it become a centre of entrepot trade, communication and safe shelter of military.
Other sectors of the economy were neglected: agriculture, cotton and manufacture industry. Shows BT interests were only functional.
Discuss British policy of Laissez affair.
Laissez affair policy stated that the British were to not intervene in the country’s economy unnecessarily and to let businesses to work their way in the wider economy. However, this policy was ignored if their motherland was at stack, therefore investment in Malta continuously fluctuated.
Malta as a Fortress Colony with Fortress Economy.
Britian was not ready to invest heavily on Malta, there the island had to seek economic growth by itself. The international sphere was essential in determining Malta’s economy, as it became dependent from war, the threat of war and defence spending. Malta’s economy remained weak since, when there was an economic growth, neither the MT not the BT invested in the country.
Discuss the Continental Blockade.
Berlin Decree 1806: Nap ordered a blockade of British goods from EP ports. BT used neutral ships to enter ports. Milan Decree 1807: Nap ordered the confiscation of neutral ships with BT goods. British blockaded the ships bound to EP ports. BT successfully set up a black market system.
GH was:
1.centre of information
2. base for BT naval operations in the Mediterranean
3. outpost to buy licenses
4. frontier-post to look over
5. commercial store/ base of black market and contraband trade.
How did the black market system work?
Goods ordered from Britain, stored in Malta’s warehouses, smuggled in Europe. Full employment in Malta’s ports.
Multiplier effect: increase demand, increase consumer power. Need for a specific product created need for more basic products. Houses and rents rose, GH became a small cosmopolitan centre.
What were the consequences of the Continental Blockade?
- Economic boom
- Higher wages/ higher employment
- Malta’s commercial, naval, military value confirmed
- Cotton production suffered as farmers spent less time producing cotton as major ports were closed.
- FUNDS FROM ECONOMIC BOOM WERE NOT REINVESTED IN THE LOCAL ECONOMY.
Discuss the economic depress of 1813.
5 causes:
- Plague of 1813: quarantine, high port tariffs for long after end of CS. Ships forced to stay in the ports for 40 days, cost of shipping companies rose, destruction of entrepot trade. Fall in income, more unemployment and poverty. 1827, quarantine repealed.
- End of war and black market, less BT investment/jobs
- Cotton production in Spain + Egypt reopened, local cotton production suffered.
- British policy of Laissez affair.
- Anglo-Neapolitan Treaty of 1816.
Discuss the Greek War of Independence of 1820.
BT, RS, FR, assisted Greece in their fight for independence from Ottomans.
Maltese found a new trade as the Greek one was disrupted, more commerce, ship-building.
Jobs in dockyards, ‘service’ industry, agriculture. A site in Kalkara became a military hospital. Not benefit as much a CS.
Discuss the Syrian Crisis (1829-30):
Conflict between Sultan and Mehmet Ali. BT, RS helped to avoid Turkish collapse, FR supported Egypt.
Malta increase garrison troops and defence spending, more weapons, Mediterranean fleet, construction of the first dockyard of Malta.
Talk about the Admiralty report of 1844.
After the Admiralty report on the defence of Malta, 3 improvements followed:
- strengthening of royal fencibles
- building of the aqueduct
- excavation of grain fosses
Discuss the positive industrial development 1820s-50s.
Cotton Industry- there was an attempt to industrializer cotton production, it was exported to BT duty-free, BT cotton was taxed in Malta, not entirely lost.
Silk Industry- 1827 attempt to start silk production in Malta by BT entrepreneurs, technolgy outdated, investment limited, 1832 blight destryed production of silk and busness collapsed
CIgar Production- by 1839 was considered the most profitable branch of trade
Other- ship-building and repairing
Discuss the positive administrative development 1820s-50s.
Navigational act of Maltese shipping, local shipping could trade with other BT colonies
1825- the Sterling being used in Malta, helped stabilize country’s currency.
Discuss the negative industrial development 1820s-50s.
Cotton Industry decline- outdated technology, low capital
Maltese agriculture- a lot of manpower and little mechanization, low production, poor quality, high tariffs left farmers in poverty.
Epidemics- 1830 and 1837 small pox
1837 cholera
Emigration- alleviated unemployment, not common, most went to North Africa, similar conditions
Discuss Emigration Organization.
Many plans for emigration.
1834- Ponsonby sent Maltese to Australia. Emigration continued to increase throughout the years.
