The World Economy, continued Lesson

The Expansionist Trend

European dominance spread to new areas during the seventeenth and eighteenth centuries. British and French merchants strengthened their positions as the Mughal Empire began falling apart. Britain passed legislation designed to turn their holdings into dependent regions. Tariffs blocked cottons from competing with British production. India's complex economy survived, but with a weakened international status. Eastern Europe joined world economic activity by exporting grain, mainly produced by serfs working on large estates, from Prussia, Poland, and Russia, to the West.

Colonial Expansion

Western colonial dominance over many peoples accompanied the new world economic network. Two types of American colonies emerged, in Latin America and the Caribbean, and in North America. Smaller colonies were present in Africa and Asia.

The America's: Loosely Controlled Colonies

Spain quickly colonized West Indian islands; in 1509 settlement began on the mainland in Panama. Military expeditions conquered the Aztecs and Incas. The early colonies were formed by small bands of adventurers loosely controlled by European administrations. The settlers ruthlessly sought gold; when there were substantial Indian populations, they exacted tribute without imposing much administration. As agricultural settlements were established, Spanish and Portuguese officials created more formal administration. Missionary activity added another layer of administration. Northern Europeans began colonial activity during the early seventeenth century. The French settled in Canada and explored the Mississippi River basin. The Dutch and English occupied coastal Atlantic territories. All three nations colonized West Indian islands and built slave-based economies.

British and French North America: Backwater Colonies

North American colonial patterns differed from those in Latin America and the Caribbean. Religious refugees came to British territories. Land grants to major proprietors stimulated the recruitment of settlers. The French in Canada planned the establishment of manorial estates under the control of great lords controlled by the state. French peasants emigrated in small numbers but increased settlement through a high birth rate. The Catholic Church held a strong position. France in 1763 through the Treaty of Paris surrendered Canada and the Mississippi basin to the British. The French inhabitants remained unhappy with British rule, but many American loyalists arrived after the 1776 revolution. The North American colonies had less value to their rulers than did Asian or West Indian possessions. The value of the exports and imports of their small populations was insignificant. Continuing settler arrival occurred as Indian populations declined through disease and warfare. Indians and Europeans did not form new cultural groups as they did in Latin America; Indians instead moved westward where they developed a culture based on the imported European horse. North American colonial societies developed following European patterns. British colonies formed assemblies based on broad male participation. The colonists also avidly consumed Enlightenment political ideas. Trade and manufacturing developed widely, and a strong merchant class appeared. The colonists retained vigorous cultural ties with Europe; an unusual percentage of the settlers were literate. The importation of African slaves and slavery separated the North America experience from European patterns.

North America and Western Civilizations

Fort in India Image In Africa, most Europeans were confined, because of climate, disease, geographical barriers, and African strength, to coastal trading forts. The exceptions were in Angola and South Africa. The Portuguese sent disruptive slaving expeditions into Angola from established coastal centers. In South Africa, the Dutch founded Cape Town in 1652 as a settlement for supplying ships on the way to southeastern Asia. The settlers expanded into nearby regions where they met and fought indigenous hunters and herding peoples. Later they began wars with the Bantu. European settlements in Asia also were minimal. Spain moved into the Philippines and began Christianizing activities; the Dutch East India Company administered parts of Indonesia and briefly had a presence in Taiwan. Asian colonization began a new phase when France and Britain, with forts along both coasts, began to compete for control in India as Mughal authority declined. Outright war began in 1744, with each side allying with Indian princes. French defeat destroyed their power in India. British victories over Indians in Bengal from the 1750s further increased British power. In India, as in most African and Asian territories, and unlike in the Americas, European administration remained limited. Officials were satisfied to conclude agreements with indigenous rulers. European cultural effect was slight and few settlers, apart from the Dutch in South Africa, took up residence. Only in the Philippines were many indigenous peoples drawn to Christianity.

Effect on Western Europe

Colonial development affected western Europe economically and diplomatically. Colonial rivalries added to the persisting hostilities between nations. The Seven Years' War, fought in Europe, Asia, and America, was the first worldwide war. The colonies brought new wealth to Europe, profiting merchants and manufacturers. New products changed lifestyles: once-costly sugar became available to ordinary people.

The Effect of a New World Order

The development of a world economy and European colonialism had major effects. Economic pressures brought important changes. African populations were disrupted by the slave trade. Indian manufacturing levels declined. New labor systems formed in many regions. The interaction between civilizations was significant. New elements entered the world history framework. Indigenous responses, as with Christianity, combined their ideas with the arriving influences. Despite the many hardships imposed on many societies, some benefits resulted. New food crops and increased trade allowed population growth. Challenges had been created for all civilizations, and whatever the individual reaction, innovation was required.

Global Connections: The World Economy and the World

The relationships between Europe's and the world's economy were complex, ranging from conscious isolation to controlled participation to dependency. The world was growing closer, but it was not necessarily becoming simpler.

Questions to Consider

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