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COMMERCIAL REVOLUTION

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COMMERCIAL REVOLUTION Powered By Docstoc
					European Power
         Economics of Growth
• Major factors of the Second Industrial
  Revolution:
  – New technologies introduced.
  – Production in large factories
  – Increased consumer spending
  – Greater availability of capital
  – Spread of industrial production
  – Increase in population growth
            New Technologies
• The Bessemer Process of steel making
  developed in 1856 made steel
  production easier and more cost
  effective.
• The development of electrical power
  (begun by Michael Faraday in 1831) to
  operate machinery and electrical power
  grids in cities made power more
  accessible.
• The light bulb, developed by Thomas
  Edison in the 1870s gave impetus for
  electrical development.
            New Technologies
                 • The development of oil and the
                   internal combustion engine made
                   shipping more viable and led to
                   the development of the
                   automobile by Rudolph Diesel,
                   Gottlieb Daimler, and Karl Benz.
                 • The development of the telegraph
                   in the 1840s and 1850s and the
                   invention of the telephone by
                   Alexander Graham Bell in 1876
                   made communications faster than
Rudolph Diesel     ever before.
           Business Practices
• Industrial organizations reached as greater scale
  than ever before.
• Cartels (large firms that dominated an industry)
  became commonplace
  – Krupp in Germany
  – Vickers Armstrong in England
  – Schneider-Creusot in France
• Modern banking structures provided capital for
  new business ventures.
          Consumer Economy
• With the development of mass culture, the
  consumer economy grew dramatically.
• The introduction of sophisticated advertising,
  department stores, inexpensive luxuries, and
  personal credit allowed the middle classes to buy
  more than ever before.
• Mass circulation of newspapers and magazines
  added to this trend for communication and
  marketing.
     Spread of Industrialization
• In the middle to late 19th century,
  industrialization spread and increased pace in
  France, Germany, Italy, the Low Countries, the
  United States, and Russia.
• Continental Europe and the United States had
  advantages in development due to the fact they
  were “new” industrial powers, their technology
  was new, were the British technology was older
  and business owners were weary to replace it.
         The Long Depression
• Despite the introduction of new technologies,
  the growth of consumer culture, and the gospel
  of free trade, Europe and much of the world
  faced economic depression from the 1870s to
  1896.
  – Prices, profits, and interest rates fell.
  – Growth in one sector led to decline in several others.
  – Governments reverted to protectionist policies and
    imperialism to help stimulate their economies.
                Agriculture
• Despite higher demand for food, agricultural
  populations across the continent continued to
  decline.
• The introduction of chemical fertilizers,
  machinery, and easier transportation led to
  increased competition and specialization
  (Danish cheese, French wine, etc.)
• Global agricultural trade led to greater
  interdependence, cheaper prices, and greater
  selection of goods.
        Demographic Changes
• The population of Europe nearly doubled in the
  period from 1865 to 1914.
• This occurred during a major demographic
  transition (falling birth and death rates).
• This led to smaller families (fewer children born
  if more are going to survive) and an older
  population.
• This was largely due to improved sanitation and
  medical care (eliminating diseases such as typhus
  and cholera), and increased nutrition.
           The Cult of Science
• The Middle 19th century saw the development
  and reliance on the ideas of science like no time
  before it.
• Connected to it were the fundamental belief in
  progress (connected to liberal ideas of the time).
• These ideas of progress were applied both to
  nature and society in the hopes of discovering
  fundamental laws and processes that govern
  both.
         The Sciences - Physics
•    Mid-century developments in physics centered
     around thermodynamics, culminating in the
     laws as follows:
    1. Conservation of energy
    2. Any closed system tends toward equilibrium
•    The work of Michael Faraday and James Clerk
     Maxwell developed theories of magnetism and
     how they work in the greater universe.
     The Sciences – Chemistry and
               Biology
• Atomic theory became accepted by mid-century.
   – John Dalton (1766-1844), a British scientist, first proposed
     the concept of atomic weight.
   – Dimitri Mendeleyev (1834-1907), a Russian chemist,
     developed the periodic table.
• Developments in biology brought health benefits to the
  public
   – Louis Pasteur techniques for killing bacteria in foods.
   – Joseph Lister’s work showing that germs could be killed by
     carbolic acid made surgery safer.
Charles Darwin (1809-1882)
       • First studied medicine then
         theology.
       • Served as a naturalist on HMS
         Beagle from 1831-1836.
       • From the variety of wildlife and
         fossils he found on the voyage
         (especially in the remote
         Galapagos Islands) he developed
         his theory of natural selection.
          Darwinian Evolution
• In On The Origin of Species (1859), Darwin stated
  that all existing forms of life developed from
  earlier forms.
• Life was a constant struggle for existence, from
  which, the most adaptable survive.
• Organisms survive due to favorable
  characteristics which are passed on to future
  generations, creating new species.
• In 1871s The Descent of Man, Darwin applied
  these theories to humans.
The Social Sciences - Sociology
       • Cult of science was reflected in the
         doctrine of positivism and the work of
         French thinker Auguste Comte.
          – Comte believed that humanity had progress
            from religious and metaphysical phases to
            one of scientific or positive stage.
          – Humanity would not be concerned with
            God, but with collecting scientific
            knowledge.
       • He believed that methods of science
         should be applied to the study of
         society, which he called sociology.
         Karl Marx (1818-1883)
• Son of an attorney in western
  Germany
• Received his doctorate in
  philosophy in 1842.
• His radical views denied him
  a place at the conservative
  universities in Prussia.
• In 1844, he moved to Paris
  and began working with
  Friedrich Engels.
                      Marxism
• In The Communist Manifesto and Das Kapital Marx
  and Engels developed the concepts of scientific
  socialism.
  – Ideas on the development of history based on
    dialectic of Hegel as well as materialism and
    determinism.
  – Dialectical materialism states that:
     • Economic conditions provide basis for social order
       (structure)
     • Economic conditions determine the nature of everything
       else (superstructure)
     • This expresses itself in different forms throughout history
                     Marxism
• Class struggle was the basis of change
  throughout history.
• This was repeated throughout history in the
  dialectical model (thesis in conflict with
  antithesis = synthesis)
  – Aristocracy in conflict with bourgeoisie (18th and
    19th century revolutions) led to new capitalist order.
  – In the future, bourgeoisie would be challenged by
    proletariat (working class) and be overthrown in a
    new communist society (final phase of history).
            Social Darwinism
• Some who wished to apply scientific principles
  to society looked to the ideas of Charles Darwin.
• They used arguments loosely based on Darwin’s
  ideas of evolution to explain differences in the
  advancement of human society.
• These ideas would be used to justify policies of
  racial differences and European imperialism
  over foreign populations.
Thomas Huxley
  • British biologist, became a
    fervent support of evolution
  • Won him the nickname
    “Darwin’s Bulldog.”
  • Huxley’s ideas brought him
    into conflict with clergy, but
    he saw it as fitting with most
    religious philosophy.
  • His ideas would pave the way
    for Social Darwinism.
             Herbert Spencer
• British philosopher and
  writer.
• In Synthetic
  Philosophy, he
  attempted to apply
  Darwin’s ideas to every
  are of society.
• Development of human
  societies involve
  survival of the fittest.
  The Old Imperialism (to 1870)
• During the first three quarters of the 19th
  century, European powers showed little interest
  in overseas expansion.
• In fact, it appeared that imperialism was on the
  way out.
• Economic and political liberalism was largely
  against imperial ventures of political oppression
  and mercantilist trade.
            The British Empire
• The British Empire was the largest overseas empire in
  the early 19th century, but there was little interest in
  further expansion.
• The American War of Independence still loomed over
  British colonial policy.
• In the Western Hemisphere, British control in Canada
  expanded westward, but discontent was growing.
• The British North America Act of 1867 established the
  Dominion of Canada (extensive autonomy in domestic
  policy.
• British continued to control much of the Caribbean.
           The British Empire
• Africa
  – The British had captured the Cape Colony during
    the Napoleonic Wars and trading stations along
    the coast.
  – In the 1820s, British settlers moved in, causing
    friction with the Boers (descendants of Dutch
    colonists who settled there in the 17th century.)
  – In the Great Trek of 1835-1837, Boers moved
    north and established the state of Transvaal and
    the Orange Free State.
            The British Empire
• India
   – In India, most of the British administration was
     controlled by the East India Company.
   – In 1857, Indian troops rebelled against British rule in
     the Great Mutiny (aka the Sepoy Rebellion).
   – This occurred as a result of BEIC abuses, cultural
     frictions, and rumors of pig and cow fat used in
     powder charges (insult to Hindus and Muslims)
   – As a result, the British government took direct rule
     of India in 1858 (British Raj)
           The British Empire
• China
  – The British established a trade system of importing
    opium from India to China in return for tea during
    the 19th century.
  – When the Chinese government attempted to stop
    this, Britain went to war with China in 1842 (the
    Opium War).
  – China was quickly defeated, resuming the import of
    opium and Britain annexed Hong Kong in 1842.
  – As a result of further conflict, namely the Taiping
    Rebellion, China gave away more of its sovereignty.
            The British Empire
• The British also continued to
  control several key outposts.
   – Gibraltar and Malta in the
     Mediterranean
   – Aden in the Red Sea
   – Ceylon (Sri Lanka) in the
     Indian Ocean.
   – Singapore in the Pacific Ocean.   Gibraltar

   – Australia and New Zealand
     were growing colonies for
     British and Irish settlers.
The British Empire
   The Latin American Colonies
• The Independence movements
  between 1804 and 1824 in Latin
  America proved for the rest of
  Europe what the American
  Revolution proved for the British.
• Nationalism and liberalism assured
  that Portugal would lose control of
  its vast territory in Brazil, France
  would lose Haiti, and Spain would
  lose the rest of Latin America, save
  Cuba and Puerto Rico (Spain also
  retained the Philippines in the
  Pacific).
         The French Empire
• Through the Seven Years War, and the
  Revolutionary and Napoleonic Wars, France had
  lost most of its overseas territories.
• All of French North America was lost to the
  British, Spanish and Americans.
• French influence in India was lost after the
  Seven Years War.
          The French Empire
• The French continued to have island colonies in
  the Caribbean on Guadeloupe and Martinique,
  as well as French Guiana in South America.
• In Africa, the French operated several coastal
  trading stations and exerted some influence in
  Egypt and the Middle East.
• In 1830, the French slowly began acquiring
  territorial rights in Algeria and in Indochina.
          The Dutch Colonies
• The Dutch, now a second rate power due to its
  small size and domination by surrounding
  powers protected what it had.
• They continued to exploit what they could
  through trade and their island empire in the East
  Indies.
• A revolt on Java between 1825 and 1830 was
  crushed, bring harsher rule by the Dutch.
          Russian Expansion
• Russia was the only European power to
  aggressively continue its expansionist policies
  throughout the 19th century.
• In contrast, however, Russian expansion was
  over land and contiguous with its territory.
• Russian expansion came at the cost of the
  crumbling Ottoman Empire along the Black Sea,
  a power vacuum in Central Asia, and Chinese
  weakness along the North Pacific Coast.
The Russian Empire
      Austria, Prussia, and Italy
• During the first half of the 19th century, overseas
  imperial expansion was not an option for
  Prussia, Austria, and the states of Italy.
• Prussia and the Italian states were primarily
  concerned with domestic affairs (Rev. of 1848)
  and their unification movements.
• Austria as well was concerned with internal
  affairs and any expansion came at the price of
  the Ottoman Empire in the Balkans.
         The New Imperialism
• In the late 1860s and 1870s, European powers
  began to reverse their disdain for obtaining
  formal colonies.
• In the period from 1870 to 1914, European
  nations (as well as the U.S. and Japan) would go
  on a colonization drive like never before.
• In just a couple of decades, nearly all of Africa
  and large areas of Asia and the Middle East
  would come under European domination.
Motivations for New Imperialism
• Nationalism and competition among states for
  additional territory was a major political and
  psychological factor.
• The influence of Social Darwinism pushed the
  “strongest to survive” and to dominate the weak.
• Humanitarian and religious considerations led to
  military interventions, missionary zeal, and the
  “civilizing” mission.
• European industrial development caused the need for
  natural resources and new markets to sell in and invest.
 Imperialism and European Society
• Policies in colonial possessions were often used
  as test beds for social policy at home; hospitals,
  schools, law enforcement, and infrastructure was
  often tested in colonies.
• Imperialistic ventures were used as nationalistic
  propaganda at home and was a way of forming
  national unity in the face of class tensions.
• Liberals often opposed imperial ventures where
  conservatives favored them.
          The British Empire
• Asia
  – Consolidation of the British Raj continued as the
    British government expanded its formal rule over
    greater territories in northern and western India.
  – In 1877, Queen Victoria was declared Empress of
    India.
  – British control expanded eastward into Burma, and
    Malaya and northward to the border with
    Afghanistan (created as a buffer against the
    Russians)
              The British Empire
• Egypt
   – In 1875, the British bought a 44 percent share
     in the previously French controlled Suez
     Canal (1869).
   – The British took a greater role in Egyptian
     affairs until it was made a British Protectorate
     in 1882.
• East and West Africa
   – In East and West Africa, Britain expanded its
     old trading posts into full colonies, leading to
                                                        Battle of Rouke’s Drift
     conflict with the natives (example: Anglo-         in the Anglo-Zulu War.
     Zulu War of 1879)
   – These included Gambia, Sierra Leone, The
     Gold Coast, Nigeria, Kenya, Uganda, and
     Somalia.
The British Empire
    • South Africa
       – Led by the efforts of imperialist and
         capitalist Cecil Rhodes.
       – Rhodes made fortune in diamonds,
         discovered in Cape Colony in 1869.
       – He pressed for British expansion in
         Southern Africa.
       – Tensions mounted in the 1880s with
         the discovery of gold in Transvaal,
         British prospectors moved in with the
         blessing of Rhodes, the PM of Cape
         Colony.
       The Boer War (1899-1902)
• President Paul Kruger of Transvaal was convinced the
  British were going to annex their state, Kruger then
  tried to ally with Germany.
• Tensions led to war in 1899. The Boers led a
  determined guerilla war that lasted four years (first
  post-modern war?). The Boers were often placed in
  concentration camps.
• With the end of the war in 1902 and the creation of the
  Union of South Africa in 1910, the Boers were
  integrated into the British Dominion and came to
  dominate it.
The British Empire
The British Empire, 1914
          The French Empire
• In the 1870s, the French extended their colonial
  control over North and Western Africa.
• Algeria was made a full colony, with large
  numbers of French settlers moving in to farm.
• Control was then extended to Tunisia and
  Morocco and large amounts of territory in
  French West Africa, Senegal, Guinea and the
  Ivory Coast, as well as Madagascar
• In Asia, French Indochina was colonized.
 Anglo-French Conflict in Sudan
• An uprising in the Sudan under the leadership of
  the infamous Mahdi threatened British interests.
• General Charles Gordon reached Khartoum in
  1884 to evacuate the garrison but was besieged
  by the Madhi, the British troops were massacred.
• In 1897, Lord Kitchener retook Khartoum. He
  then set off down the Nile with a flotilla of
  gunboats to confront French General Marchand
  at Fashoda. This precipitated the Fashoda
  Crisis when, ultimately unable to face a naval
  war with Britain, the French backed down.
 Scramble for Africa – Leopold II
• In the 1870s, King Leopold II of Belgium began
  the process of creating a personal colony in the
  Congo Basin, the Berlin Conference made his
  acquisitions legal. Leopold used forced labor in
  the production of rubber, ivory and minerals.
• As international protests intensified, the Belgian
  government took control of the Belgian Congo
  in 1908.
 Scramble for Africa – Berlin Conference

• Intense rivalries among Belgium, France, Germany,
  Great Britain, Italy, Spain, and Portugal for additional
  African territory, and ill-defined boundaries of their
  various holdings, instigate the Berlin Conference of
  1884-1885 (organized by Bismarck)
• Powers defined their spheres of influence and laid
  down rules for future occupation on the coasts of
  Africa.
• No African states were invited to the Berlin conference,
  and none signed these agreements.
Africa
         Imperialism in China
• By the end of the 19th century, every major
  European power had established spheres of
  influence in China.
• The weakening of the Manchu dynasty made the
  situation worse.
• The newly industrial and imperialistic Japanese
  defeated the Chinese in the Sino-Japanese war
  of 1894-95, seceding further control of China’s
  territory.
Imperialism in China
                 Migration
• At the same time Europeans were colonizing for
  nationalism, riches and religion, massed of
  people were migrating from Europe to other
  areas of the world.
• Estimates say that over 25 million people
  migrated from Europe between 1875 to 1914.
• Nearly half migrated to the Americas, others
  went to Australia, Africa, and Asia.
          Effects of Imperialism
• European imperialism had dramatic impact on Europe
  and the wider world.
• European society was altered due to its predominate
  position, economic benefits and costs, external
  influences, and competition among states.
• The colonized world was drastically changed, with
  European cultural, economic, and political ideas
  becoming the global norm.
• The positives and negatives for both sides are still very
  much debated today and still affect today’s world.