Imperalism Challenged Flashcards
What was the economic impact of ww1 on Brtitain?
Ww1 was economically exhausting for Britain. As well as costing the lives of almost a million Britons and 200,000 soldiers from across the Empire, the war was extremely expensive, requiring the whole economy to be placed on a war footing. Huge amounts of public finances were directed towards the war effort, leaving Britain in severe debt
-Much of Britain’s capital investment overseas has been wiped out
-The pound sterling had to be removed from the gold standard for the duration, because gold reserves ran so low
What was the gold standard like after the war?
Since it’s foundation in 1694 the Bank of England had issued notes promising to pay the bearer a sum of money. For much of its history the promise could be made good by the Bank paying out gold in exchange for it’s notes. The link with gold helped to maintain the value of the notes and its suspension of this ‘gold standard’ in wartime was considered a measure of last resort
What was the impact of ww1 on Britain’s industries?
-It had severe consequences for some of Britain’s most important export industries. Production for the war was prioritised over making goods for export to traditional overseas markets, and this meant that Britain’s competitors were able to win markets traditionally dominated by British exports
-Nit all of these overseas markets were won back after ww1. Britain’s traditional industries, such as textiles, shipbuilding, coal, iron and steel, which created income to pay for running and defending the empire, experienced great difficulties between the wars as they faced new overseas competition, for example from the Japanese in textile production
What happened with Britain’s financial sector after ww1?
-The banks and financial institutions, which generated profits from lending money overseas were suffering. The result was that the economic burden of the Empire grew, as Britain’s ability to pay for it diminished
-This problem was intensified in the 1930s by the Great Depression, which saw a collapse of international trade and markets for British industrial exports. A financial crisis in 1931 forced the country off the gold standard again
-This in turn reduced earnings from overseas investments. However, the Empire offered economic compensations as well as problems
What was the economic impact of Ww1 on India?
-India contributed almost £146 million to the war effort, and the country experienced inflation and shortages during the war as a result. War, however, also brought longer term changes which were not entirely damaging.
-In 1914 two thirds of India’s imports came from Britain, but this started to fall- initially because of wartime disruption to trade, but in the longer term because of the growing strength of foreign competition. India’s own economy partly benefited from this; Indian manufacturers began to capture more of the domestic market
-After the war, desperate for revenue to help bolster their control in the face of the rising nationalist movement, the British placed high taxes on Indian imports, rising from 11% in 1917 to 25% in 1931
-The effect was to give Indian Industry protection against its competitors, and it grew accordingly
What was the economic impact of ww1 on Canada?
-Canada benefited from the war, emerging as an industrial power. As in India, British manufacturers lost ground here
-Indeed, increasingly Canada looked to its southern neighbour, the USA, for investment and markets as the inter war period progressed
What was the economic impact of ww1 on Australia and New Zealand?
Australia and New Zealand, as exporters of food, relied heavily on the British market, and consequently were hit hard by the disruption of trade caused by the war
What were the two distinct phases British policy towards imperial trade went through in the inter war period?
-In the 1920s, Britain tried to recreate the economic system which had existed before 1914. Thus Britain returned to the gold standard in 1925, in order to stabilise its international trade. One exception to this policy was the colonial development act of 1929, which provided treasury funds to support colonial development projects
-In the aftermath of the Great Depression a much greater emphasis was placed on the importance of the Empire for British commerce and imports from the Empire increased. Britain was again forced to abandon the gold standard in 1931 but trade with the Empire in sterling proved a great asset
What happened with British exports between the wars?
-Exports to the Empire included a wide variety of commodities, but historically cotton textiles had always figured prominently, especially to the markets of Asia and India. Significantly, in the inter war period, these began to fall as tough competition from Japan and other emerging industrial economies began to be encountered
-Nonetheless, at least until the 1930s, the Empire remained important for cotton textile exports, as it did for a range of other industrial products at a time of tough competition, particularly from the USA
-As world trade shrank, imperialists, such as Lord Beaverbrook, the newspaper magnate, again argued for a return of the idea of ‘imperial prefernce’, ending Britain’s historic policy of free trade
-This met with opposition from the Dominions which wished to protect their own growing industries and eventually a compromise was reached at the Ottawa conference of 1932
What was agreed at the Ottawa conference of 1932?
-The British introduced a general 10% tex on all imports but the Crown colonies were exempted
-Britain and the dominions gave each other’s exports preferential treatment in their own markets
This reinforced the important role of the Empire in supplying foodstuffs and raw materials to Britain. The following tables convey the importance of the Empire as a source of crucial imports between 1913 and 1934
Was Imperial trade uniform?
-Imperial trade was not uniform- certain parts of the Empire increased their commercial links more than others. The dominions became both an increasingly important market for British exports and a more significant supplier of imports
-However, while India largely remained an important supplier of tea and jute, and grew in importance in supplying raw cotton, it absorbed fewer British exports, as key Indian and Asian markets such as cotton textiles were won first by the Japanese and subsequently by emerging Indian cotton textile producers
What was the value of imperial trade and commerce?
-Some dominions, particularly Australia and New Zealand, experienced serious economic problems in the inter war period. The cost of their imports from Britain outstripped the income from their exports.
-Both countries ran up debts with Britain although, as the smaller country, developing more slowly than its neighbour, New Zealand suffered less than Australia
-Imperial preference became especially important for these countries when international trade turned down sharply in the 1930s
-Other British colonies in Asia and Africa also suffered as a result of the collapse of world trade in the 1930s
-Burma and Malaya were especially hard hit. Malaya relied on exports of tin and rubber; Burma on exports of rice
-African colonies too, which produced food or raw materials, saw tumbling prices in the 1930s
-Incomes fell bringing poverty and even starvation and fuelling dissatisfaction with colonial rule
What was the value of imperial trade and commerce for Empire?
-Some dominions, particularly Australia and New Zealand, experienced serious economic problems in the inter war period. The cost of their imports from Britain outstripped the income from their exports. Both countries ran up debts with Britain although, as the smaller country, developing more slowly than its neighbour, New Zealand suffered less than Australia
-Imperial prefernce became especially important for these countries when international trade turned down sharply in the 1930s
-Other British colonies in Asia and Africa also suffered as a result of the collapse of world trade in the 1930s
-Burma and Malaya were especially hard hit. Malaya relied on exports of tin and rubber; Burma on exports of rice
-African colonies too, which produced food or raw materials, saw tumbling prices in the 1930s. Incomes fell bringing poverty and even starvation and fuelling dissatisfaction with colonial rule
What was the economic impact of the Second World War?
-The Second World War hit Britain even harder than the first. The British economy, Whig had to be geared entirely to war in the years 1939 to 1945, entered the war in a far weaker condition than it had done in 1914 and major defeats in the West and East and Southeast Asia in the first 3 years of war proved cripplingly expensive
-Ww2 had a severe and dramatic impact upon British trade
How did ww2 have a severe impact on British trade?
-German U boat attacks on British sea traffic were devastating especially in the early years of the war. Overall Britain lost 11.7 million tons of shipping in the war, or about 54% of the country’s merchant fleet strength at the beginning of the war
-The loss of major colonies in Southeast Asia to the Japanese from 1942 disrupted trade and cut off supplies of vital raw materials such as rubber from Malaya
-The diversion of industrial production to producing weapons of war meant that less was produced for export. The British tried to reduce imports, by campaigns to increase home production and food rationing, but Britain’s balance of trade was heavily in deficit during the war
-A third of Britain’s overseas assets (investments in businesses) were sold to pay for the war. Britain borrowed from the USA from 1941 in the form of Lend-lease, and emerged from thr war in massive debts
-Britain increased its dependence on Empire for imports. There was considerable investment by colonial government, for example in Africa, to help increase the supply of foodstuffs and raw materials
-Colonial reserves held in Britain (the so called ‘sterling balances’) were used to help Britain pay for the war effort
How was Britain’s post war position made worse?
-Britain’s post war position was made worse when, in late August 1945, the USA ended lend-lease, largely because it was not prepared to support a revived British empire financially
-John Maynard Keynes negotiated a massive US loan (approx £900 million) in 1945, but the conditions were tough; the pound sterling had to be made freely convertible to dollars by the spring of 1947
What was the sterling crisis of spring 1947?
-Free convertibility would require the Bank of England to be able to exchange sterling for dollars, at a fixed rate. The US dollar loan was supposed to enable Britain to build sufficient reserves to do this by 1947
-However, Britain almost ran out of its dollar reserves within 6 weeks (largely because of imperial demands) and had to suspend free convertibility. It revealed how weak the British economy had become
What did Britain face after ww2?
-Britain faced a dilemma. The costs of re establishing its world power, which had been challenged by the wartime Japanese occupation in the East and emergent nationalism in countries such as India, threatened to exceed the potential economic or political benefits
-Consequently a dual approach emerged. Where the costs of controlling a colony massively outstripped its imperial control was abandoned. However, where colonies were regarded as of economic benefit to Britain, a new emphasis was placed on colonial economic development
-The rubber and tin industry of Malaya which could command major international markets, for example, received heavy government investment since it was hoped that this would earn large amounts of foreign currency (especially dollars) and benefit Britain’s international trading position
What did the colonial development and welfar act of 1940 do?
It formed the foundation for the new approach after ww2. This:
-Wrote off some colonial debts
-Provided colonial grants or loans up to £5 million per year
A further colonial development and welfare act of 1945:
-Increased the aid available to colonies to £120 million over 10 years
-Required each colony to produce a ten year development plan showing how it would use such funds
What were Gandhi’s campaigns?
-He campaigned against racism and segregation, championing the civil rights of Indians who had settled in the area and challenging both the British, and from 1910, the dominant Afrikaners (the descendants of the Boers)
-In 1915, he returned to India, where he became president of the Indian National Congress and began to immerse himself in political affairs. He travelled the country, supporting popular protests against British rule, wearing Indian dress as a symbol of his commitment to Indian culture and industry
-In 1917 to 1918 he championed the downtrodden indigo workers of the state of Bihar, and mediated in a textile industry dispute in Ahmedabad as well as a dispute over land taxes in Gujarat
-However, it was only after the 1919 Amritsar massacare that his national campaigns for full Indian independence began
What were Gandhi’s campaigns after the Amritsar massacare in 1919?
-He helped organise the non co-operation movement of 1920, the civil disobedience movement of 1930-31 and 1932-34 and the Quit India movement of 1942
-He was clear about the importance of political non violence, but vague about his goals (other than his desire to remove the British so that India could control its own future development)
-He was imprisoned by the British on several occasions, including almost 2 years during ww2
-Although his goal of independence was achieved in 1947, he strongly opposed the partition of India and offended some Hindu and Muslim nationalists who felt his attitude was too moderate and idealistic
-He was assasinated in 1948 by a militant Hindu nationalist who accused him of showing a bias for Muslims
What were Gandhi’s beliefs?
-In accordance with his strong Hindu religious convictions, Gandhi favoured peaceful resistance to British rule, based on the principles of satyagraha
-Gandhi preached harmonious relations between Hindus and Muslims, arguing that tolerance between the 2 communities should be cemented with equal rights for both religions in an independent India. Gandhi rejected divisions among Hindus based on the caste system. In particular he argued fiercely against discrimination against ‘untouchables’ (the Dalit community), and campaigned for equality for all
-Gandhi wanted an independent India which built on its spiritual and social traditions. He wanted India to remain predominantly agricultural and rural, and to reject the industrialisation and urbanisation which characterised western development
What was Gandhi’s importance?
-Gandhi’s reputation was as a moral as well as a political leader. He reconciled Western ideas about democracy with the notion of a distinctive Indian culture and national identity, based on the principles of Hinduism, religious tolerance and a vision of a traditional rural India
-This offered the benefits of Western liberalism without endangering the character of Indian society and values
-His methods made it difficult for the British to respond. The British liked to see themselves as a liberal, peaceful, democratic and fair minded people, committed to the well being of the colonial peoples they ruled
-Non violent resistance proved effective in hurting British economic interests; in response the British used violent repression to break up demonstrations and imprison nationalist leaders
-This was embarrassing for the British internationally, as it demonstrated that imperial rule ultimately rested not on peaceful and benign methods, but on the exercise of ruthless might
What was the role of colonial administrators?
-Colonial administrators faced a tough job both in the years of war and in the difficult inter war period. They were charged to collect taxes and maintain stability and order in the face of growing nationalist movements seeking, at least, more representation, or, as in the case of India, full independence from colonial rule