Globalisation is an
economic system and it emerges since 50 years.
To understand the making
of global world we have to understand the history of trade, migration and
people search for work and the movement of capitals.
The Pre Modern World
1.
Human societies have
steadily more interlinked.
2.
Travelers, traders,
priest and pilgrims travelled vast distance for carrying goods, money, ideas,
skills, inventions and even germs and disease.
3.
Indus Vally civilisation
was linked with West Asia.
4.
Cowries a form of
currency from the Maldives.
Silk Route Link the World
1.
The silk routes were
regarded as the most important route linking the distant parts of the world.
2.
Routes were existed even
before the Christian Era and flourished till the 15th century.
3.
The Buddhist preachers,
Christian missionaries and later on Muslim preacher used to travel by Routes.
4.
Routes proved to be a
great source of trade and cultural links between distinct parts of the world.
Conquest, Disease and Trade:
1.
In 16th century after
European sailors found a sea route to Asia and America.
2.
The Indian subcontinent
had been known for bustling trade with goods, people, customs and knowledge. It
was a crucial point in their trade network.
3.
After the discovery of
America, its vast lands and abundant crops and minerals began to transform
trade and lives every where.
4.
Precious metals,
particularly silver from mines located in Peru and Maxico enhanced Europe’s
wealth and financed its trade with Asia.
5.
The Portuguese and
Spanish conquest and colonisation of America was under way.
6.
The most powerful weapon
of the Spanish conquerors was not a conventional military weapon but germs of
small pax which they carried.
7.
America’s original
inhabitants had no immunity against such type of diseases.
A World Economy Takes Shape :
1.
Abolition of the Corn
law.
2.
Under pressure from
landowners groups the government restricted the import of food grains.
3.
After the carn laws were
scrapped, food could be imported into Britain more cheaply than it could be
produced in the country.
4.
British farmers were
unable to compete with imports. Vast areas of land were left uncultivated.
5.
As food prices fell,
consumption in Britain rose.
6.
Faster industrial growth
in Britain led to higher incomes and more food imports.
The role of Technology:
1.
Technology had a great
impact on the transformation of 19th century world such as Railways, steamship
and telegraph.
2.
Technological advances
were often the results of social, political and economic factors.
3.
The refrigerated ships
greatly helped to transport the perishable food items over a long distance.
4.
It greatly facilitated
the shipment of frozen meat from America, Australia Or New Zealand to different
European Countries.
The Nineteenth Century (1815 to 1914)
In the 19th Century,
Economic, Political, Social, Cultural and technological factors interacted in
complex ways to transform societies and reshape external relations.
Indentured Labour Migration from India
Meaning of Indentured Labour
1.
Indentured labour means
a bonded labourer under contract to work for an employer for a specific amount
of time.
2.
It brought higher income
for some and poverty for others.
Causes of Migration of Indian Indentured Workers
1.
Most came from the
present day regions of eastern Utter Pradesh, Bihar, Central India and Tamil
Nadu.
2.
These regions of India
experienced many social changes like cottage industry declined, land rents rose
and the lands were cleared for mines and plantation.
3.
In 19th century
indenture described as a new system of slavery.
4.
Hosay, A riotous
carnival in Trinidad when workers of all races and religions join in
celebrating.
The Inter War Economic
1.
The first World war was
mainly fought in Europe.
2.
During this time, the
world experienced economic, political instability and another miserable war.
3.
The first world war was
fought between tow power bloc. On one were the allies - Britan, France, Russia
and later joined the US. and on the opposite side -Germany, Austria, Hungary
and Ottoman and Turkey.
4.
this war lasted for 4
years.
Technological Transformations
1.
First-time modern
weapons like Machine gun, tanks, aircraft, chemical weapons etc were used on a
massive scale.
2.
Millions of soldiers had
to be recruited from around the world. and most of them were men of working
age.
Bretton Woods Institutions:
1.
To deal with external
surpluses and deficits a conference was held in July 1944 at Bretton woods in
New Hampshire, U.S.A.
2.
International Monetary
Fund and World Bank were set up to finance post war restructuring.
3.
The past war
international economic system is known as Bretton Woods systems.
4.
This system was based on
fixed exchange rates.
5.
IMF and World Bank are
referred as Bretton Woods Twins.
6.
U.S has an effective
right of veto over key IMF and World Bank.
The Great depression
Factors responsible for depression
1.
Agricultural
overproduction remained a problem. It makes the price of agriculture products
slumping.
2.
Many countries financed
their investment through the loan they got from the USA.
3.
American capitalists
stopped all loans to European countries.
4.
In Europe, it led to a
failure of some major banks and collapse of currencies like Sterling.
5.
Doubling the import
duties by the USA, which hit the world trade badly.
New International Economic Order - NIEO
1.
Most developing
countries did not benefit from the fast growth of Western economies in 1950’s
& 60’s.
2.
They organised
themselves as a group. The group of 77 or G-77 to demand a New International
Economic Order (NIEO).
3.
It was a system that
would give them real control over their natural resources more development
assistance, fairer prices for raw materials and better access for their
manufactured goods in developed countries markets.
New Economic Policy In China
1.
Wages were very low in countries
like China.
2.
The low-cost structure
of Chinese economy made its products cheaper.
3.
China became a favourite
destination for MNCs to invest.
4.
New Economic policy of
China back into the fold of world Economy.
MNCs:
1.
Multinational
corporations are large companies that operate in several countries at the same
time.
2.
The world wide spread of
MNCs was a notable feature in the 1950s and 1960s as US business expanded
worldwide.
3.
High imports tariffs
imposed by different governments forced MNCs to locate their manufacturing
units.
Conclusion:
In last two decades, the
economy of the world has changed a lot as countries like China, India and
Brazil have achieved rapid economic development.
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