X Chapter 4.The Making of a Global World.X.History.
Section
II
Livelihoods,Economics
and Socities
Chapter:IV The
Making of a Global World.
Important Terms and Concepts
Ø Assembly Line: A system of production in which a worker performs a specific job in a
sequence of activities.
Ø Canal Colonies: Refers to the areas irrigated by the new
canals.
Ø Caribbean Island: Present-day West Indies.
Ø Collapse of Currency: Refers to a fall in the external value of
a currency, i.e., a fall in the exchange rate of a currency vis-à-vis other
currencies
Ø Colonised Societies: Those societies which had been brought
under colonial domination.
Ø Cultural Fusion: Mixing up of the cultures from different
places and emergence of a new culture.
Ø Decolonisation: A process by which the countries were
getting themselves free of foreign domination and where emerging as free
sovereign nations.
Ø Developing Countries: Refers to economical less developed
countries.
Ø Dissenter: One who refuses to accept established
beliefs and practices.
Ø Economic Boom: A situation characterised by economic
prosperity-demand is high, investment is high, new investment abounds and new
job opportunities are created in abundance.
Ø Economic Recovery: An economic situation in which demand for
goods and services begins to pick up. In response, the volume of production is
increased, new resources get employed and income levels begin to move up.
Ø Economic Stability: An economic situation in which there are
no violent ups and downs.
Ø El Dorado: An imaginary city of gold.
Ø Exchange Rate: Number of units of a domestic currency
required to purchase a unit of foreign currency, e .g . , $=RS. 40.
Ø Fixed Exchange Rate: A system of exchange rate management in
which the exchange rate of a currency is fixed by the government. The
government intervenes to prevent any change in this rate.
Ø Floating Exchange
Rate: A system of
exchange rate management in which the exchange rate of a currency is fixed by
its demand and supply in the foreign exchange markets.
Ø Full Employment: A situation in which all those persons who
are able and willing to work get a job.
Ø Global Agricultural
Economy: Trade in
agricultural goods among different nations of the world.
Ø Global Economy: whole of the world begin treated as one
unified economic system.
Ø Great Depression: This began around 1929 in the
industrialised countries. Demand for goods slackened, inventories got built up,
production and employment got cut down, income levels fell drastically.
Ø Home Charges: These were charged by the
British government in England from the British government in India and included
private remittances sent home by British official and traders, interest Payments
on India’s external debt and pensions of British officials in India.
Ø Indebtedness: Refers to a situation in which a person
owes some money to others.
Ø Indentured Labour: A bounded labour, under contract , to work
for an employer for a specific amount of time to pay off his passage to a new
country or home.
Ø Industrialisation: Introduction of machines to manufacture
different types of goods.
Ø International
Financial System:
Arrangements for movement of money and capital between different countries.
Ø Investment: Expenditure on capital goods and
equipment.
Ø Migrant Worker: A worker who shifts from his native place
to a new place on the look out for some work.
Ø Multilateral
Settlement System: An
arrangement whereby one country’s deficit with another country is settled by
its surplus with a third country.
Ø Multinational
Corporations: Large
companies that operate in several countries at the same time.
Ø New International
Economic Order: A
demand put forward by developing countries for a new economic 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 and markets.
Ø Post-War
Reconstruction: Efforts
to rebuild the economies of the countries that had suffered immense destruction
during the Second World War.
Ø Principal Currency: A currency which acts as a medium of
exchange and unit of account for most of the international transactions in
goods, services and capital.
Ø Proto: Indicating the first or early form of something.
Ø Rinderpest: A fast-spreading disease of cattle plague.
Ø Tarrifs: Refer to taxes on import and export of
goods more generally, import duties.
Ø Tariff Barriers: Imposition of import duties to restrict
imports of goods.
Ø Trade Deficits: A situation in which the total value of
imports of a nation during a year exceeds the total value of exports.
Ø Trade Surplus: A situation in which the total value of
exports of a nation during a year exceeds the total value of imports.
Important
Persons
Ø Allies: Consisted of Britain, France, the Soviet
Union and the US, who formed a group to fight in the Second World War.
Ø Axis Power: Consisted of Germany, Japan and Italy.
They fought the First World War as a group.
Ø Bretton Woods: A place in New Hampshire, USA, where an international
conference was held in 1994 culminated in the setting up of the international
Monetary Fund (IMF) and the World Bank.
Ø Canal Colonies: The areas irrigated by the new canals.
Ø Cape: Africa’s southernmost tip.
Ø Ceylon: Present-day Sri Lanka.
Ø Christopher Columbus: Discovered the vast continent in the west
that came to be known as the Americas.
Ø El Dorado: The fabled city of gold.
Ø Henry Ford: The car manufacture. He was the first to
adopt the ‘assembly line’ method of production.
Ø John Maynard Keynes: The celebrated economist who gave an alternative
new explanation of the Great Depression of the 1930s.
Ø John Winthorp: The first governor of the Massachusetts
Bay Colony in New England. He wrote in May 1634 that smallpox signalled God’s
blessing for the colonists.
Ø Ramnaresh Sarwan: The West Indies cricketer, descended from
indentured labour migrants from India.
Ø Shikarpuri Shroffs: The traditional India moneylenders.
Ø Shivnarine
Chanderpaul: The West
Indies cricketer, descended from indentured labour migrants from India.
Ø Sicily: Now in Italy, Arab traders took pasta to
Sicily in the 5th century.
Ø Sir Henry Morton
Stanley: A journalist
and explorer. He was sent to find Livingston, a missionary and explorer who had
been in Africa for several years.
Ø Smithfield Club Cattle
Show: Cattle fair,
Cattle were brought by the farmers for sale at the fair.
Ø V.S Naipaul: the Nobel prize-winning writer, descended
from indentured labour migrants from India.
Important
Events
Ø Abolition of Corn
Laws: Under Corn Laws,
the governments could restrict the import of corn. Under pressure from
industrialists and other these law were abolished in the late 18th
century in Europe.
Ø Biological Warfare: Use of germs such as those of smallpox to
kill and decimate whole communities with a view to conquer them.
Ø Break of the Cattle
Plague: It spread out
in Africa in the 1890s. It was carried by infected cattle imported from British
Asia to feed the Italian solders invading Eritrea in East Africa.
Ø Bretton Woods
Conference: Held in Bretton
Woods, New Hampshire, USA in 1994 to develop an international financial system.
It resulted in the birth of the IMF and the World Bank.
Ø Chutney Music: It was popular in Trinidad and Guyana.
Ø Emergence of Canal
Colonies: Emergence and
growth of new areas.
Ø Emergence of Global
Agriculture Economy: It
held emerged by 1890; different nations were trading in agricultural products
amongst themselves.
Ø First World War: It was fought in Europe during 1914-18. In
it, the Allies were pitted against the Central Powers.
Ø G-77: A group of 77 developing countries who
decided to develop a common approach and policy towards various issues in which
the developing countries had an interest.
Ø House: A carnival in Trinidad in which workers of
all races and religious joined.
Ø Irish Potato Famine: Occurred in Ireland in the mid-1820s. A
disease destroyed the potato crop in Ireland.
Ø Muharram: A Muslim religious procession.
Ø Rastafarianism: Made famous by the Jamaican reggae star
Bob Morley. It was a protest religion.
Ø Second World War: Fought during 1939-45. The Allies (Britain,
France, the Soviet Union and the US) were pitted against the Axis powers (Germany,
Japan, and Italy).
Ø Silk Routes: The name points to the importance of
west-bound Chinese silk cargoes.
Ø T-Model Ford: It was the world’s first mass-produced
car, manufactured at Detroit in USA.
Important
dates
Ø 3000 BCE : An active coastal trade linked the
Indus valley Civilizations with present-day west Asia.
Ø 5th century : Arab traders took pasta
to Sicily an island now in Italy.
Ø 9th century :
Images of ships appear regularly in memorial stones found in the western
coast, indicating the significance of oceanic trade.
Ø 13th century :
Long-distance spread of disease-carrying germs is clearly established.
Ø 15th century : Silk routes existed that
knitted together vast regions of Asia, and linked Asia with Europe and northern
Africa.
Ø 16th century : European sailors found a
sea route to Asia and also successfully crossed the western ocean to America.
Ø Mid-16th century : Colonisation
of America by European countries was under way.
Ø 18th century :
China and India were among the world’s richest countries.
Ø 1730s : Coming up of the factories in England.
Ø 1764 : James Hargreaves designed a spinning jenny.
Ø 1781 : James Watt designed the steam
engine.
Ø 19th Century : Economic, political, social, cultural
and technological factors interacted in complex ways to transform societies and
reshape external relations. It was during this century that colonialism took
roots and spread fast like a wild fire.
Ø 1854 : First cotton mill set up in
Bombay.
Ø 1855 : First jute mill set up in
Bengal.
Ø 1874 : First spinning and weaving
mill set up in Madras. It was in this century, indentured labourers were hired
under contract to work in a new country.
Ø 1860s : Indian traders established
flourishing emporia at busy parts worldwide, selling local and imported curios
to tourists.
Ø 1914 : Outbreak of the World War.
Ø 1920s : Strong growth of the US
economy.
Ø 1923 : The US resourced exporting
capital to the rest of the world and became the largest overseas lender.
Ø 1929 : Beginning of the Great
Depression.
Ø 1939 : A modest economic recovery
was under way in most industrial countries. Beginning of the Second World War.
Ø MAY 1994 : United Nations Monetary and
Financial conference held at Bretton Woods in New Hampshire, USA .International
Monetary Found and the World Bank set up.
Ø 1940s : Beginning of the process of
decolonisation and emergence of free sovereign nations.
Ø 1949 : Communist rule in china.
1
.The making of a global world
1.1
The pre modern world
1.2
Globalization:-Emerged since
the last 50 years .It has a long history of trade of migration of people in
search of work ;the movement of capital and much else
Interlinking
of human society from the ancient times through travellers, traders, priests
and pilgrims for gaining knowledge, opportunity and spiritual fulfilment or to
escape persecution .In 3000 B.C. an active coastal trade interlinking the Indus
valley civilization.
1.3
Silk routes link the world:-Vibrant
pre-modern trade routes silk routes .the main silk route points to the
importance best bond Chinese silk cargoes along this route.
Identification of silk route overland
and sea knitting together vast region of Asia with Europe and North America .Trade
and cultural exchanging always went hard in hand .Christianity, Islam, Buddhism
became intermixed.
1.4 Food
travels :-spaghetti and potato food offers many example of long distance cultural
exchange .Noodles travelling west from
china to spaghetti
Arab
traders took pasta to 5th century Sicily an island now in Italy.
Many
of our common foods such as potatoes, soya, groundnuts ,maize ,tomatoes, chillies
,sweet potatoes were not known to our ancestors .these all came from America’s
original inhabitant:-the American Indians .
New
crop was making the difference between life and death. Ireland‘s poorest peasants becomes so
dependent on potatoes. Hundreds of thousands of died of starvation.
1.5
Conquest
disease and trade:-Exploring of sea routes Asia, Africa,
and America. Indian ocean had known
Bustling
trade with goods people knowledge customs, etc.
With
the discovery of America with vast lands ,abundant crops ,minerals, silver
mines(Perry, Mexico ),gold .Colonialisation of America was the mid 16 century .T
hey made conquest through the germs such as those of small pox that they
carried on their persons. Americans have no immunity .killing of Americans.
Poverty
and hunger common in Europe cities crowded. Deadly disease wide spread
religious conflicts were no common .slaves grew cotton and sugar.
Well
being condition of china and India through 18th century. Trading
centre in America .Europe becomes mid of the centre of the world trade.
2. The 19th
century The
world change profoundly in the 19th century three type of flows –the
flow of trade referred largely to trade in goods (e.g.:-cloth or wheat).
The flow of labour –the migration of
people in search of employment.
The third movements of
capital for short terms are long term investments over long distances.
2.1A world economy lakes shape:-Increasing
population growth demand for agricultural products pushing up the food grains
price.
Under pressure from landed group the government also
restricted the import of corn through the “corn laws”. Industrialist and
dwellers remained unhappy
Fall in food price. Due to more consumption
in Britain. Faster industrial growth led to higher incomes .needed more food
imports. Tracks in Russia, America, Australian lands were cleared.
Railway
network needed .new harbours building homes and shelter.
The demand for labour in America and
Australia led to more migration so million people migrated century. By 1980 a
global agricultural economy existed by complex changes labour movement
patterns, capital flows, ecologies and technologies.
Change s
in west Punjab. British government provided a network of irrigation canals to
transform semi desert waste into agricultural lands that could grow wheat and
cotton for export
Expansion of cotton, rubber, expanded
worldwide
2.2 Role of technology:-Technological advancement
in the railways, steam ships, the telegraph.
New
investments and improvements in transport faster railways lighter wagons and
large ships helped more food more cheaply and suiclely from far away farms to
final markets
2.2.1
Frozen meat:- Animals slaughtered in
America, Australia and New Zealand transported to Europe as frozen meat .now
poor could add meat to their diet.
2.3
Late 19th century colonialism:-Trade
flourish markets expanded in the late 19th
century.
Expansion of trade and a close
relationship with the world economy meant lost of freedom and lively hoods.
Europeans conquests produced many
painful social and economical changes.
Africa with straight boundary showed
the carving up of Africa among European countries. Britain, France, Belgium,
Germany become colonial power.
2.4
Rinder pest or the cattle plague:-People rarely worked for a
wages. They had plenty of both ply stock and possessing land. Employers used
many methods to recruit a retail labour. Change in inheritance large displacing
peasants from land. Only one member of family was allowed to inherit land.
The Rinderpest arrived in late 1880’s .it affected
cattle killing 90%. The loss of cattle destroyed African livelihoods their
moved toward wages.
2.5
Indentured labour migration from
India :- 19th century thousands of Indian and Chinese laboures went to
work on platation in mines and in road & railway construction projects
around the world.
Mostly
came from up Bihar central India dry districts of Tamilnadu due to declined
industry raised land rents, indebtedness fail to pay their rents. Main
destinations were Caribbean islands Trinidad, Guyana, Surinam, Mauritius Fiji
Tamil to Ceylon Malaya Assam.
Recruitment
made by agent’s .temping prospective migrants by providing false information
about final destination modes of travels and the native of work.
19th
century industrialisation has been described as a new system of slavery with
harsh living condition and few legal rights.
Workers
discovered their own way for surviving intermixed with culture.
Some stayed after their contacts indeed
finding a large community of people in India descent.
2.6 Indian
entrepreneurs abroad
Indian bankers as shikaripuri shroffs
and nattukottai chattiest are bankers financing exporting agriculture in
central and south-east Asia.
They developed sophisticated system to
transfer money over large distances, indigenous form of corporate organization.
Hyderabad Sindhi traders, ventral beyond European colonies
2.7 Indian trade, colonialism and 19th century
global system
Tine Indian cotton exported in Europe. Tariffs imposed
on cloth imposed into Britain consequently the inflow declined.
Indian textile faced stiff competition in
international markets. 30% in 1800 declined to 15% in 1815 and 3% in 1870.
But export of raw materials increased as 5% in 1812
and 35% in 1871.
Opium grown in
India exported to china money earned through this financial. Its tea and other
imports from china.
British manufacturers flooded the Indian market.
Britain had a trade surplus. It maintained multilateral settlement that means
one countries deficit with another country to be settled by its surplus with a
third country.
3. The
Inter- War Economy 3.1 War time transformation
First world war :- (1914-1918) during
this period the world experienced widespread economic and political
instability.
Between allies- Britain, France, Russia
between central power-Germany Austria hungry ottoman turkeys.
First
use of machine guns, tanks, aircrafts and chemical weapons. Death and
destruction -9 million dead and 20 million injured death and injuries reduced
the able bodied.
Work force in
Europe. Household income declined. Britain borrowed large sums of money from us
bank as well as US public.
3.2 Post war
recovery
War affected Britain faced
a lot of difficulties to recapture its earlier position of dominance in the
Indian market and to complete with Japan internationally.
Industries had developed in India and
Japan.
Britain borrowed liberally from the US
burdened with huge external debts.
Post war-unemployment.
Europe main supplier of wheat .supply
was disrupted wheat production in America Australia expanded dramatically.
Once the war was over production in
Eastern Europe revived and created a glut in wheat output. Grain prices fell,
rural incomes declined.
3.3
Rise of mass production and consumption
Mass production introduced
in 1920’s. Henry ford a new car plant in Detroit.
The mass production arouse
High wages given to workers. Now workers
could purchase consumer goods such as cars, refrigerators, washing machines,
radios.
Large
investment in housing and household goods. By 1923 US resumed exporting capital
to the rest world.
1929 by the world would be plunged into
a depression.
3.4
The Great Depression
Timing:-1929 to 1930
Features:-decline
in production, incomes, employment, trade worst affected agricultural
production over stock of wheat
Second:-US
leading overseas accounted to over one billion dollar to one by fourth of that
amount. US loan faced an acute insist.
Failure
of banks collapse of currencies such as British pound and sterling.
US
attempted its economy in the depression by doubling import duties and severe
blow to world trade.
US
bank also slashed. Falling price consumerist prosperity of 1920.now disappeared
unemployment soared bankruptcy.
3.5
India and the Great Depression
Indian exports and imports
were nearly halved in between 1928 to 1934. Prices crushed by 50%.
Refusal
to reduce the revenue demands. Peasants producing for the world market where
the worse hit.
Jute producers of Bengal fell into
deeper debt. Faced ever lower prices by the gunny exporters collapsed. Peasants
in datedness increased.
India became an exporter of gold
In urban area middle class slavered
employees land owners better off because prices were down.
Extended
tariff protections increased industries.
4.
Rebuilding a world economy
Second World War
(1939-1945) Europe Asia devastated. USSR made its own dominance
4.1
Post war settlement and Bretton woods institutions
The post war international
economic system is also often described as Bretton wood system.
International monitory fund,
international bank was also set up to finance post war constructions.
Aim to reserve economic stability and
full employment by controlling flows of goods, capital and labour.
4.2
The early post war
An era of growth was stable.
4.3
Decolonisation and independence
Second World War- broke
out over the next two decades most colonies in Asia and Africa emerged as free
independent nations.
These
newly freed countries over burden by poverty and lack of resources, economies
and societies were handicapped.
IMF World Bank shifting their attention
more towards developing countries.
Control over vital resources such as
minerals and land of their farmer colonies as US managed to exploit the
developing countries.
Formation of a group of 77 to demand for
a new international economic order (NIEO). By this they got real control over
natural resources more development assistance fairer prices for their
manufactured goods in developed countries market.
4.4
End of Bretton woods
US $ lost its value in
relations to gold. Collapse of the system of fixed exchange rates an introduction
of floating exchange rates.
Industrial world was also hit by
unemployment from the mid 1970’s.
China had undergone rapid economic
transformation due to low cost structure of the Chinese economy.
Chapter
4 – The Making of a Global World
NCERT BOOK
QUESTION ANSWER
1.
Give two examples of different types of global exchanges which took place
before the 17th century,
choosing
one example from Asia & Africa and one from the Americans?
Ans:-The Portages and the Spanish
conquest and colonization of America was decisively under way of by
the Mid-sixteenth century.
Infact, the most powerful weapon of the Spanish conquers was not a
conventional military weapon at all. It
was the germs such as small pox that they carried on their person. Small pox is
particular proved a deadly killer. It killed and decimated whole communities
paving the way for conquest.
Food offers many examples of long
distance cultural exchange tenders and travellers introduced new crops to the
lands they travelled.
Even ready food stuff in distant
ports of the world might share common origin. Even many of our common foods
came from America’s original inhabitants – The American Indians .
2. Explain how global transfer of disease
in the pre-modern world helped in the colonization of the Americas.
Ans:- The Portuguese and the Spanish conqueror
made their colonization of America was decisively under way by the mid
sixteenth century.
They never used their conventional
military weapons at all. It was germs such as small pox that they carried on
their persons because of their isolation.
As the Americans had no immunity
against these diseases that arrived from Europe.
Small pox is a deadly killer
disease. Once introduced, it spread into the continents ahead, even of any
Europeans reaching there. It killed and decimated whole communities. It paved
the way for conquest.
3. Give two examples from history to show
the impact of technology on food viability.
Ans: -
Now technology could provide food viability in different parts of the
world.
Australia and news eland had been
the transporters of meat. They were slaughtered at the starting point.
It was trasported towrope as frozen meat. This lowered the shipping
costs and meat prices in Europe. Now in Europe, people could enjoy more meat. Now
many of them could add meat to bread and potatoes.So, refrigerated ships
enabled the transport of perishable food over long distances.
4. What is meant by the ‘Bretton woods Agreement’?
Ans: -
The Bretton woods conference was held in July 1944 at Bretton woods New Hampshire,
U.S.A.
*Aim: - It aimed to preserve economic
stability and full employment in the industrial world.
*Institution: - It establish the
international monitory fund (IMF) to deal with external supplies and deficits
of its member nations .
The international Bank for
Reconstruction and Development (known as World Bank).
The InfoWorld Bank is referred to
as the Bretton woods Institution. And the post-war International economic
system is also described as the Bretton woods system.
*Works:-
The IMF, world Bank commenced financial operatibus in 1947. Decisions
were taken by Western industrial powers. The US had effective powers.
International Monetary system
interlinks the national currencies and monetary system. The Bretton Woods
system was based on fixed exchange rates. Such as Indian rupee where pegged to
the dollar at a fixed exchange rate. And the dollar was itself anchored to gold
at a fixed price of $35 per ounce of gold.
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