The Making of a Global World

Discuss (The World Shrank)

Q1. Explain what we mean when we say that the world 'shrank' in the 1500s.

Answer:

When we say the world 'shrank' in the 1500s, we mean that distant parts of the world became more closely connected and accessible to each other. This happened because:

• European sailors found a sea route to Asia and successfully crossed the western ocean to America.
• America, which had been cut off from regular contact with the rest of the world for millions of years, now came into contact with Europe.
• The Indian Ocean had a bustling trade network, and the entry of Europeans expanded and redirected these flows towards Europe.
• Precious metals, particularly silver from Peru and Mexico, enhanced Europe's wealth and financed its trade with Asia.
• Foods, crops, and people began to move across continents, transforming trade and lives everywhere.
• The Portuguese and Spanish conquest and colonisation of America was under way by the mid-sixteenth century.

Thus, the world became a smaller, more interconnected place as trade, conquest, and cultural exchange brought distant regions into regular contact.

Activity (Flow Chart)

Q1. Prepare a flow chart to show how Britain's decision to import food led to increased migration to America and Australia.

Answer:

Flow Chart:

Explanation in words:

1. Britain abolished the Corn Laws, allowing cheap food imports.
2. British agriculture could not compete, so lands were left uncultivated and workers lost jobs.
3. Unemployed workers flocked to cities or migrated overseas.
4. As food prices fell, consumption rose, and demand for food imports increased.
5. Lands were cleared in Eastern Europe, Russia, America, and Australia to meet British demand.
6. Railways, harbours, and settlements were built, requiring capital and labour.
7. Capital flowed from London, and labour demand led to migration.
8. Nearly 50 million people emigrated from Europe to America and Australia in the nineteenth century.

Activity (Agricultural Worker's Account)

Q1. Imagine that you are an agricultural worker who has arrived in America from Ireland. Write a paragraph on why you chose to come and how you are earning your living.

Answer:

I left Ireland because the potato famine of the mid-1840s destroyed our crops, and hundreds of thousands died of starvation. My family and I were left with nothing – no food, no money, and no hope. I heard that America had vast lands and plenty of work, so I boarded a ship with thousands of others seeking a better future. Now I work on a large farm in America, growing wheat and cotton for export to Britain. The work is hard, and the wages are low, but at least I can earn enough to survive. I live in a small settlement near the railway line, and I hope to save enough money to bring my family here one day.

Discuss (Language and National Identity)

Q1. Discuss the importance of language and popular traditions in the creation of national identity.

Answer:

Language and popular traditions played a crucial role in the creation of national identity:

• Language: A common language helped unify people across regions, enabling them to communicate, share ideas, and develop a sense of shared identity. It was essential for spreading nationalist ideas through newspapers, books, and speeches.
• Folk tales and songs: Nationalists collected folk tales, songs, and legends to revive traditional culture and restore pride in the past. These were seen as true representations of the people's identity.
• Cultural symbols: Images like Bharat Mata, flags, and icons helped people visually identify with the nation.
• Popular traditions: Festivals, processions, and cultural practices brought people together and strengthened the sense of collective belonging.
• History and fiction: Reinterpretation of history to glorify ancient achievements inspired pride and motivated people to struggle for freedom.

Thus, language and popular traditions helped transform diverse communities into a unified nation with a shared identity.

Discuss (Jute Growers' Lament)

Q1. Who profits from jute cultivation according to the jute growers' lament? Explain.

Answer:

According to the jute growers' lament, the traders profit from jute cultivation. The lament says:

'... traders, sitting at home, will pay only Rs 5 a maund.'

This means that while the jute growers work hard to grow the crop, the traders who sit at home and control the market pay them very little. The growers are left with dashed hopes because the costs and debts of jute cultivation exceed the meagre price they receive. The traders benefit by buying cheap and selling at higher prices in the export market, while the peasants fall deeper into debt.

Discuss (Lessons from Inter-war Economy)

Q1. Briefly summarise the two lessons learnt by economists and politicians from the inter-war economic experience.

Answer:

Two lessons learnt from the inter-war economic experience:

1. Mass production requires mass consumption: An industrial society based on mass production cannot be sustained without mass consumption. To ensure mass consumption, there was a need for high and stable incomes. Incomes could not be stable if employment was unstable. Thus stable incomes required steady, full employment. Since markets alone could not guarantee full employment, governments had to step in to minimise fluctuations of price, output, and employment. Economic stability could be ensured only through government intervention.
2. Governments must control economic flows: The goal of full employment could only be achieved if governments had the power to control flows of goods, capital, and labour. This meant that national governments needed to regulate their economic links with the outside world.

These lessons led to the establishment of the Bretton Woods system, which aimed to preserve economic stability and full employment in the industrial world.

Write in Brief

Q1. Give two examples of different types of global exchanges which took place before the seventeenth century, choosing one example from Asia and one from the Americas.

Answer:

Examples of global exchanges before the seventeenth century:

Q2. Explain how the global transfer of disease in the pre-modern world helped in the colonisation of the Americas.

Answer:

The global transfer of disease in the pre-modern world helped in the colonisation of the Americas because:

• America's original inhabitants had been isolated from the rest of the world for millions of years and had no immunity against European diseases.
• European conquerors carried germs such as smallpox on their persons.
• Smallpox proved a deadly killer, spreading deep into the continent even ahead of Europeans reaching there.
• It killed and decimated whole communities, paving the way for conquest.
• Unlike guns, which could be captured and turned against invaders, diseases could not be fought by the natives.
• This 'biological warfare' was the most powerful weapon of the Spanish conquerors, more effective than conventional military weapons.

Q3. Write a note to explain the effects of the following: a) The British government's decision to abolish the Corn Laws. b) The coming of rinderpest to Africa. c) The death of men of working-age in Europe because of the World War. d) The Great Depression on the Indian economy. e) The decision of MNCs to relocate production to Asian countries.

Answer:

a) The British government's decision to abolish the Corn Laws:

• Food could be imported into Britain more cheaply than it could be produced within the country.
• British agriculture was unable to compete with imports.
• Vast areas of land were left uncultivated.
• Thousands of men and women were thrown out of work.
• They flocked to cities or migrated overseas.
• As food prices fell, consumption in Britain rose.
• Lands were cleared in Eastern Europe, Russia, America, and Australia to meet British demand.
• Railways, harbours, and settlements were built, requiring capital and labour.
• Nearly 50 million people emigrated from Europe to America and Australia.

b) The coming of rinderpest to Africa:

• Rinderpest arrived in Africa in the late 1880s, carried by infected cattle from British Asia.
• It moved west 'like forest fire', reaching Africa's Atlantic coast in 1892 and the Cape in 1897.
• It killed 90 per cent of the cattle.
• The loss of cattle destroyed African livelihoods.
• Planters, mine owners, and colonial governments monopolised the scarce cattle resources.
• This forced Africans into the labour market.
• Control over cattle enabled European colonisers to conquer and subdue Africa.

c) The death of men of working-age in Europe because of the World War:

• 9 million died and 20 million were injured, mostly men of working age.
• This reduced the able-bodied workforce in Europe.
• With fewer numbers within the family, household incomes declined after the war.
• Women stepped in to undertake jobs that earlier only men were expected to do.
• Industries were restructured to produce war-related goods.
• Entire societies were reorganised for war.

d) The Great Depression on the Indian economy:

• India's exports and imports nearly halved between 1928 and 1934.
• As international prices crashed, prices in India also plunged.
• Between 1928 and 1934, wheat prices in India fell by 50 per cent.
• Peasants and farmers suffered more than urban dwellers.
• The colonial government refused to reduce revenue demands.
• Peasants producing for the world market were worst hit.
• Jute producers of Bengal faced a price crash of more than 60 per cent.
• Peasants' indebtedness increased; they mortgaged lands and sold jewellery.
• India became an exporter of precious metals, notably gold.
• Rural India was seething with unrest.
• Urban India was less affected; those with fixed incomes were better off.
• Industrial investment grew as the government extended tariff protection.

e) The decision of MNCs to relocate production to Asian countries:

• Wages were relatively low in countries like China.
• They became attractive destinations for investment by foreign MNCs.
• This stimulated world trade and capital flows.
• The world's economic geography was transformed as countries like India, China, and Brazil underwent rapid economic transformation.
• Most TVs, mobile phones, and toys in shops seem to be made in China due to low-cost structure and low wages.
• From the late 1970s MNCs began shifting production operations to low-wage Asian countries.

Q4. Give two examples from history to show the impact of technology on food availability.

Answer:

Two examples of the impact of technology on food availability:

1. Refrigerated ships: Before refrigeration, animals were shipped live from America to Europe and slaughtered on arrival. Live animals took up much ship space, many died or became unfit to eat, making meat an expensive luxury. The development of refrigerated ships enabled animals to be slaughtered at the starting point and transported as frozen meat. This reduced shipping costs, lowered meat prices in Europe, and allowed the poor to consume a more varied diet including meat, butter, and eggs.
2. Railways and steamships: Railways were needed to link agricultural regions to ports, and new harbours were built to ship cargoes. Faster railways, lighter wagons, and larger ships helped move food more cheaply and quickly from faraway farms to final markets. This transformed food availability by enabling global trade in agricultural products.

Q5. What is meant by the Bretton Woods Agreement?

Answer:

The Bretton Woods Agreement refers to the framework for the post-war international economic system agreed upon at the United Nations Monetary and Financial Conference held in July 1944 at Bretton Woods in New Hampshire, USA. Key features:

• It established the International Monetary Fund (IMF) to deal with external surpluses and deficits of member nations.
• It set up the International Bank for Reconstruction and Development (World Bank) to finance post-war reconstruction.
• The IMF and World Bank are referred to as the Bretton Woods institutions or Bretton Woods twins.
• The system was based on fixed exchange rates, with national currencies pegged to the dollar, and the dollar anchored to gold at $35 per ounce.
• The main aim was to preserve economic stability and full employment in the industrial world.
• Decision-making was controlled by Western industrial powers, with the US having an effective veto.

Q6. Imagine that you are an indentured Indian labourer in the Caribbean. Drawing from the details in this chapter, write a letter to your family describing your life and feelings.

Answer:

My dear family,

I hope this letter finds you in good health. I am writing to tell you about my life here in the Caribbean, which is very different from what I had imagined.

When I left India, the agent told me I would have a better life and earn good wages. But the reality is harsh. I work on a cocoa plantation from dawn to dusk. The tasks allotted to me are extremely heavy, and I cannot complete them in a day. My hands are bruised all over from the work. When I cannot finish, deductions are made from my wages, and I am punished. Many labourers spend their period of indenture in great trouble.

Living conditions are poor, and we have few legal rights. Some workers have escaped into the wilds, but those caught face severe punishment. Yet we have found ways to survive. We celebrate festivals like Muharram, which has become a riotous carnival called 'Hosay' where workers of all races and religions join. We have also created new forms of music and culture, like 'Chutney music'.

I miss you all very much. I hope to return to India after my contract ends, but many workers stay on here. Please pray for my well-being.

Your loving son,
Ram Narain

Q7. Explain the three types of movements or flows within international economic exchange. Find one example of each type of flow which involved India and Indians, and write a short account of it.

Answer:

Three types of movements or flows within international economic exchange:

Short account of indentured labour migration: In the nineteenth century, hundreds of thousands of Indian labourers went to work on plantations, in mines, and in road and railway construction projects around the world. They were hired under contracts promising return travel after five years. Most came from regions experiencing cottage industry decline, rising land rents, and land clearing for mines and plantations. Recruitment was done by agents who often provided false information or forcibly abducted migrants. Conditions on plantations were harsh, and workers had few legal rights. Many stayed on after their contracts ended, creating large communities of Indian descent in countries like Trinidad, Guyana, Surinam, Mauritius, and Fiji.

Q8. Explain the causes of the Great Depression.

Answer:

Causes of the Great Depression:

1. Agricultural overproduction: This remained a problem and was made worse by falling agricultural prices. As prices slumped and agricultural incomes declined, farmers tried to expand production and bring a larger volume of produce to the market to maintain their overall income. This worsened the glut in the market, pushing down prices even further. Farm produce rotted for a lack of buyers.
2. Withdrawal of US loans: In the mid-1920s, many countries financed their investments through loans from the US. While it was easy to raise loans when the going was good, US overseas lenders panicked at the first sign of trouble. In the first half of 1928, US overseas loans amounted to over $1 billion. A year later it was one quarter of that amount. Countries that depended crucially on US loans faced an acute crisis.
3. US protectionism: The US attempt to protect its economy by doubling import duties dealt another severe blow to world trade.
4. Collapse of US banking system: With the fall in prices and the prospect of a depression, US banks slashed domestic lending and called back loans. Farms could not sell their harvests, households were ruined, and businesses collapsed. Many households could not repay loans and were forced to give up their homes, cars, and consumer durables. By 1933 over 4,000 banks had closed, and between 1929 and 1932 about 110,000 companies had collapsed.

Q9. Explain what is referred to as the G-77 countries. In what ways can G-77 be seen as a reaction to the activities of the Bretton Woods twins?

Answer:

G-77 countries: The Group of 77 (G-77) refers to a group of developing countries that organised themselves to demand a New International Economic Order (NIEO). By NIEO they meant a system that would give them:

• Real control over their natural resources
• More development assistance
• Fairer prices for raw materials
• Better access for their manufactured goods in developed countries' markets

G-77 as a reaction to the Bretton Woods twins: The IMF and World Bank (Bretton Woods twins) were designed to meet the financial needs of industrial countries. They were not equipped to cope with the challenge of poverty and lack of development in former colonies. As Europe and Japan rapidly rebuilt their economies, they grew less dependent on these institutions. From the late 1950s, the Bretton Woods institutions began to shift attention towards developing countries. However, most developing countries did not benefit from the fast growth Western economies experienced in the 1950s and 1960s. Even after decolonisation, former colonial powers still controlled vital resources, and large corporations from powerful countries secured rights to exploit developing countries' natural resources cheaply. Therefore, developing countries organised themselves as G-77 to demand a fairer international economic order, making it a direct reaction to the activities and limitations of the Bretton Woods twins.

Project

Q1. Find out more about gold and diamond mining in South Africa in the nineteenth century. Who controlled the gold and diamond companies? Who were the miners and what were their lives like?

Answer:

Gold and diamond mining in South Africa in the nineteenth century:

• Control: The gold and diamond companies were controlled by European colonisers, particularly the British. After the discovery of gold in Witwatersrand in 1886, Europeans rushed to the region. By the 1890s, South Africa contributed over 20 per cent of the world gold production.
• Miners: The miners were mainly African labourers who were confined in compounds and not allowed to move about freely. They were recruited through methods such as heavy taxes that could be paid only by working for wages on plantations and mines, and changes in inheritance laws that displaced peasants from land.
• Living conditions: Miners faced harsh working conditions, fear of disease, and death. They lived in confined compounds with restricted movement. The discovery of gold and diamonds led to the development of a migrant labour system that exploited African workers.
• Impact: The mining industry transformed South Africa's economy and society, but the benefits went primarily to European colonisers and mining companies, while African workers remained impoverished and oppressed.