The Making of a Global World

Nov 16, 2024

The Making of a Global World

1. The Pre-modern World

  • Globalisation often refers to a recent economic system but has historical roots.
  • History of globalisation includes trade, migration, movement of capital.
  • Ancient societies were interconnected through travellers, traders, and priests.
  • Example: Indus valley civilisation traded with West Asia as early as 3000 BCE.
  • Spread of germs and diseases linked societies from the seventh century.

1.1 Silk Routes

  • Silk routes were ancient trade networks linking Asia with Europe and Africa.
  • Chinese silk, pottery, Indian textiles, and spices traded along these routes.
  • Religious and cultural exchanges took place alongside trade.

1.2 Food Travels

  • Traders introduced new crops and food across regions, e.g., spaghetti and noodles.
  • Foods like potatoes and tomatoes spread post-Columbus's discovery of America.
  • New crops impacted diets, e.g., the Irish dependence on potatoes.

1.3 Conquest, Disease and Trade

  • European discovery of sea routes to Asia and America in the sixteenth century.
  • America introduced precious metals and new crops to global trade.
  • Disease (e.g., smallpox) decimated indigenous American populations.

2. The Nineteenth Century (1815-1914)

2.1 A World Economy Takes Shape

  • Changes in food production and consumption in Britain.
  • Abolition of Corn Laws led to cheap imports and migration.
  • Expansion of agriculture in America and Australia to meet British demand.

2.2 Role of Technology

  • Technological advances like railways and refrigerated ships transformed trade.
  • Enabled transport of perishable goods like meat, improving diets.

2.3 Late Nineteenth-century Colonialism

  • European colonial expansion altered economies and societies.
  • Example: rinderpest disease in Africa forced locals into the labor market.

2.4 Indentured Labour Migration

  • Indentured laborers from India worked globally, often under harsh conditions.
  • Migrants blended cultures, creating new forms of expression.

2.5 Indian Entrepreneurs Abroad

  • Indian bankers and traders financed global export agriculture.

2.6 Indian Trade and Colonialism

  • Decline in Indian textile exports as British industries grew.
  • India’s role in Britain's trade surplus and economic system.

3. The Inter-war Economy

3.1 Wartime Transformations

  • WWI led to massive industrial-scale warfare and economic restructuring.
  • Shifted economic power to the US as Europe struggled post-war.

3.2 Post-war Recovery

  • Britain faced economic challenges post-WWI; rise of competition from Japan and India.
  • Global agricultural glut led to falling prices and rural debt.

3.3 Rise of Mass Production

  • US economic growth through mass production, led by Henry Ford.
  • Rise of consumer goods and improved living standards.

3.4 The Great Depression

  • Began in 1929, causing global economic decline.
  • Fragile post-war economy exacerbated by falling prices and loan crises.

3.5 India and the Great Depression

  • India’s trade and agriculture suffered; increased peasant debt.
  • Gold exports from India facilitated global recovery.

4. Rebuilding a World Economy: The Post-war Era

4.1 Post-war Settlement and Bretton Woods Institutions

  • Established IMF and World Bank to stabilize post-war economy.
  • Aimed for stable employment and economic activity.

4.2 The Early Post-war Years

  • Rapid trade and income growth in Western nations, with unemployment low.

4.3 Decolonisation and Independence

  • Many countries gained independence post-WWII but faced economic struggles.
  • Formation of G-77 to push for a fairer international economic order.

4.4 End of Bretton Woods and the Beginning of Globalisation

  • Shift from fixed to floating exchange rates in the 1970s.
  • Rise of MNCs and relocation of production to developing countries.

Key Concepts

  • The evolution of global trade and cultural exchanges.
  • Impact of technology on global economy and living standards.
  • Influence of colonialism on modern economic structures.
  • Post-war international economic stabilisation efforts through Bretton Woods.