Second wave of imperialism had a significant impact on the global economy.
Industrialized imperial powers colonized for raw materials needed for their factories.
Transformed colonial economies into export economies, focusing on raw materials or goods exportation.
Transformation of Colonial Economies
Prior to colonization, many were subsistence farmers growing a variety of food.
Imperial powers reorganized economies to focus on one or two cash crops or natural resources.
Example: Turning land from diverse crops to solely growing cotton for textile production or mining for copper/diamonds.
Causes of Economic Development
Raw Materials for Industrial Factories
Industrial factories needed raw materials to maintain power.
Colonies exploited for these materials (e.g., cotton in Egypt and India, palm oil in West Africa).
Supplying Food to Urban Centers
Industrialization led to urbanization, increasing food demand.
Colonial economies shifted towards cash crop cultivation (sugar, coffee) and industrial ranching (in Argentina and Brazil) to meet this demand.
Effects of Global Economic Developments
Profits from Exports
Profits used to purchase finished manufactured goods.
Colonies provided a closed market for imperial state's manufactured goods.
Economic model ensured that profits from colonies went back to imperial powers through goods purchase.
Economic Dependence
Colonial economies' reorganization primarily benefitted colonizing powers, not the indigenous peoples.
Resulted in a growing economic dependence of colonial peoples on their imperial “parents”.
Conclusion
The second wave of imperialism fundamentally changed global economic structures,
leading to significant shifts in colonial economies and creating a cycle of dependency.