Lecture Notes: Economic Imperialism (1750-1900)

Introduction to Economic Imperialism

Economic imperialism involves a state extending control over another state by economic means, not just through physical colonization.
Full-blown colonization is costly, thus powers sought alternative means to exploit non-industrial states.

Opium Wars:
- China was historically a major world power but failed to industrialize, leaving it vulnerable.
- Britain faced a trade imbalance as Chinese goods were in high demand in Britain, but British goods were not demanded in China.
- Britain increased opium production in India and exported it illegally to China, leading to widespread addiction.
- First Opium War:
  - Qing officials attempted to ban opium, leading to conflict with Britain.
  - Britain used military force, resulting in the Treaty of Nanjing, opening several Chinese ports to British trade.
- Impact on China:
  - Led to significant economic influence by Britain over China.
  - Qing Dynasty faced internal conflict (e.g., Taiping Rebellion) and weakened further.
  - Second Opium War saw British and French forces further exploit China's weaknesses.
- Spheres of Influence:
  - Western powers, Russia, and Japan carved China into economic spheres of influence, dominating the Chinese economy.

British businesses and banks invested heavily in Argentina, particularly in infrastructure like railroads.
Investments aimed at extracting and exporting raw materials to Britain.
Construction of modern trading ports in Buenos Aires increased economic dependence on British investment.
Demonstrates economic imperialism without direct colonization.

Colonial economies were reorganized to focus on trade in commodities driven by imperial powers.
Examples:
- Cotton in India and Egypt focused on export to Britain.
- Palm oil extraction in Sub-Saharan Africa.
Economies became dependent on the demand for these raw materials, benefiting European and US powers.

Imperial powers shaped world economies to give themselves economic advantages at the cost of colonial populations.
Understanding economic imperialism highlights the varied methods of control during this period beyond direct colonization.