Lecture 2 - History Flashcards
What is pre-historic economics defined by
Hunter-gatherer communities. Moved on to another place when those resources were depleted.
Example of pre-historic economics
Some evidence of rudimentary bartering when bands met – did engage in some form of economic activity, e.g bartering, swapping of goods for other goods, not like now though of course. About harvesting, making things when you could. Was all very informal.
Features of pre-historic economics
- Largely subsistence related. Very isolated, low population density.
- No evidence of any form of economic organisation
- Isolation
What was the first ‘efficiency drive’
Agriculture and urbanisation
What laid the foundation for permanent settlements and cities
Agriculture and urbanisation.
Small bands of hunter gatherers that grew, developed agriculture, domestic livestock – became more permanent.
Where did agricultural and urban used trade become established
- Trade was developing across continents between middle east to modern day China.
- Exploration drive of Africa, Viking explorations
Economy of Roman Empire
The economy of the Roman Empire was spatially extensive but by no means global
Trade within early civilisations and empires
- Concentrated around Europe and Africa
- No contact between the Americas/Australasia and trade was profoundly Eurasian
What did early empires cultivate
Religion, technology and expansion
When did the silk economy emerge
About 100 AD, major trade route
What trade route opened due to the emergence of the silk trade
East-West corridor was opened across the Eurasian land mass
What was linked due to the emergence of the silk market
Linked the Roman Empire in the West with the Han Empire in the East
What was also sold when silk was around 100AD
Trade was overwhelmingly dominated by precious metals and luxury goods (silk and spices)
Key success to the trading in 100AD
The route remained at the heart of East-West relations for over a thousand years.
Trading of luxury items
Medieval period: when
C.1000 - 1450
Medieval period: Europe
Modern states were developing, particularly in Europe. Consolidation of power into these larger state territories.
Medieval period: trade agreements
Bilateral trade agreements beginning to develop between Europe and further afield.
Medieval period: transport for trade
Reliant on horse and ships
The Medieval period: change
- Things began to change in the latter stages of this period as what we now recognise as a system of states began to develop
- Certainly not ‘global’ in scope. Still very routed to main landmass of Europe and continental Asia.
Hansiatic league (medieval period)
Specialised in trading gems art, silks etc. Not tied to states that competed and allied together to create trade monopolies in this period
What does changes in economic activity have to be combined with to be impactful
Institutional and socio-political changes + demography
How did globalisation shift at the turn of the 15th/16th century
Shift in focus away from the Mediterranean and Northern Italy toward North Western Europe
What happened at the end of the 17the century
the Mediterranean was backward, the Dutch were leading the way in terms of trade and commerce and the hitherto unimportant economy of England emerged to challenge the Dutch. Centre of power economically in Europe was centred around the Netherlands.
When was there no truly ‘global’ capitalist economy
Before the 16th century
What wasn’t there before the 16th century
No truly ‘global’ capitalist economy
Colonial development- when
16th century - concentrated in the core
When was there merchant colonialism
17th-18th century
What colonialism happened with the 17th-18th century
Merchant colonialism
When was there industrial colonialism
19th century
What colonialism was in the 19th century
Industrial colonialism
Core globalisation - what
Skilled labour, production of capital, intensive production
Core globalisation - where
North West and North East Europe
Semi-periphery globalisation - what
Contained aspects of core and periphery activity
Semi-periphery globalisation - where
Mediterranean Europe, Eastern Europe, Africa
Periphery globalisation - what
No capital production activities
Periphery globalisation - where
The New World
Core globalisation - colonialism
- Obtain raw materials from the periphery (e.g. cotton, rubber)
- Consumption in the core, but re-export finished goods (to core and periphery
C.1650- 1850 : Triangular trade routes:
Knox and Agnew (1989)
Trading companies:
- Dutch East India Company (VOC) founded in 1602
- Charter awarded for trade monopoly, fort building, army raising and diplomacy.
- First colony founded in Banten in 1603 and in Jakarta in 1611
- England challenged this supremacy through the 3 Anglo-Dutch wars of the 17th Century – for ultimately control of their trade monoplies
Early 20th century
Relatively well integrated trading routes, at death of Victorian era. Mjaor rail roads being developed in USA
Was has happened to economic activity over time
Has
Drivers of economic activity increasing over time
Technological innovation, emergence of the modern state system and the struggle for commodities and resources
What has a large role in producing a truly global economy
The Age of Empire, linking Africa, Europe and the Americas
Towards the contemporary global economy:
- Revolution and rise of factory system
- New problems and new solutions
- Britain and USA
- Internationalisation of production
- War and depression
How did the revolution and industrialisation impact the economy
A movement away from merchant capitalism towards industrial capitalism
When did the revolution and industrialisation impact the economy
1770s / 1780s
Where did the industrial revolution begin
Cities like Bristol and Manchester
What laid foundations for socio-economic change in the factory system
Machine advances
What did socio-economic change allow factory systems to have
Specialisation of labour and the creation of the ‘division of labour’ in workplace between different functional specialisms
What did a concentration of labour in factories result in
Rapid urbanisation and the emergence of cities such as Manchester for cotton, South Wales and midlands for steel, northeast for ship building – iron and steel. Became drivers for global economy.
Who talked about the division of labour
Adam Smith - Wealth of Nations (1776)
Pin factory specialisation
- A single worker, working at home would be lucky to make one pin a day
- Argued if have 10 workers in a factory can divide the 18 tasks between them and increase productivity
- Smith argued 10 workers could produce 48,000 pins a day
- Can see how this would be a great benefit for industrialists
Issues that still remain from the days of merchant capitalism
- Market saturation – over production of a particular good or commodity
- Law of diminishing returns – whereby investment in a part of the production process adds incrementally less value
Case study of poor economic growth
India - call centre
What did the French Revolution prove
Revolution was possible and could overthrow state. Unexpected outcomes of increase in productivity.
Tackling the issues from merchant capitalisation
- Pursuing new ways of maximising economies of scale
- Exploitation of new, cheaper resources (labour, raw materials and energy)
- Penetration of new markets (overseas) for existing products.
- Development of new products or the ‘commodification’ of processes (e.g. food processing)
Map of British Empire 1900
- Spanish Empire had declined a lot at this time
- Only real challenge to British dominance was USA at this point
When did the USA gain independence (and hence economic sovereignty)
1793
What happened as a result of the global emergence of the USA
Intensive development of canals and railways facilitated economic growth. Invested heavily in infrastructure
Why was the global emergence of the USA successful
Massive levels of natural resources
How did the USA build a very powerful position
Massive levels of population growth, in-migration led to its exponential power in global economy
Where did the USA have an emergence of manufacturing
From Milwaukee to Boston in the North East
How was production internationalised
- Technological and communication advancement
- Speculative industrial investment in the periphery (British Empire)
- Rapid development of a European and US manufacturing economy pre- and post-1914
- Led to rise of Multinational Corporations (e.g. Ford, 1903)
When did Ford open its first UK plant
1903
How do we internationalise production
‘Cloning Plants’ in foreign countries/markets
Benefits of internationalising production
- Cheaper resources
- Economies of scale
- New markets
- Less tariffs
- Increase product life
- Create relationships with governments (=stable)
Impact of WW1 on economies - how many businesses died
50-60 million
Impact of WW1 on economies - labour
Certain countries lost between 10% and 15% of their workforces, particularly Russia
What happened in the Great Depression
One of main economic disasters - Stock market crash 1929, Wall Street. Global impact. Led to widespread unemployment in factory heartlands.
Great Depression - unemployment in Wales
In South Wales unemployment reached 80%, in the North East 70%
What did the Great Depression prove
The economic interdependence of leading economies
Great Depression - world trade
World trade stagnated – between 1929 and 1937 trade volumes fell by 0.4% per year (Held et al 1999)
Great Depression - impact on individual states
Individual states e.g France, Germany began to become protectionist deploying tariffs, setting import quotas to drive manufacturing industry in their countries and currency manipulation
Knox et al 2008 concluding comments
- The key historical aspects of the development of the world economy
- The role of Empire in the development of spatially extensive trade
- The rise of the factory system. Heavy manufacturing then seized to be a concern – landscape changed dramatically in late 70s.
- The challenges caused by the cyclical nature of the capitalist world economy
Who had concluding comments
Knox et al 2008
