The Nineteenth Century global economy (colonialism).

The nineteenth century (1815-1914)    
Economists identify three types of movement or ‘flows’ within international economic exchanges. 
    1.    The first is the flow of trade which  nineteenth century referred largely to trade in goods (e.g., cloth or wheat). 
    2.    The second is the flow of labour - the migration of people in search of employment. 
    3.    The third is the movement of capital for short-term or long-term investments over long distances.

 A world economy takes shape
Population growth from the late eighteenth century had increased the demand for food grains in Britain. As urban centres expanded and industry grew, the demand for agricultural products went up, pushing up food grain prices.
Under pressure from land owner groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the ‘Corn Laws’.
    After the Corn Laws were scrapped because of high prices of grains.
    1.    Food could be imported into Britain more cheaply than it could be produced within the country.
    2.    British agriculture was unable to compete with imports. Vast areas of land were now left uncultivated,
    3.    Thousands of men and women were thrown out of work. They flocked to the cities or migrated overseas.
As food prices fell, consumption in Britain rose. From the mid-nineteenth century, faster industrial growth in Britain also led to higher incomes, and therefore more food imports. 
    1.    Railways were needed to link the agricultural regions to the ports.
    2.    New harbours had to be built and old ones expanded to ship the new-cargoes. 
    3.    People had to settle on the lands to bring them under cultivation. This meant building homes and     settlements. 
    4.    All these activities in turn required capital, and labour. Capital flowed from financial centres such as London. 
    5.    The demand for labour in places where labour was in short supply - as in America and 
Australia -led to more migration.

India
In West Punjab the British Indian government built a network of irrigation canals to transform 
semi-desert wastes, into fertile agricultural lands that could grow wheat and cotton for export. The Canal Colonies, as the areas irrigated by the new canals were called, were settled by peasants from other parts of Punjab.
Of course, food is merely an example. A similar story can be told for cotton, the cultivation of which expanded worldwide to feed British textile mills or the crop of rubber. 

Role of technology
Technological advances were the result of larger social, political and economic factors. For example, colonisation stimulated new investments and improvements in transport: faster railways, lighter wagons and larger ships helped move food more cheaply and quickly from far away farms to final markets.
The trade in meat offers a good example of this connected process. Till the 1870s, animals were shipped live from America to Europe and then slaughtered when they arrived there. But live animals took up alot of ship space. Many also died in voyage, fell ill, lost weight, or became unfit to eat. Meat was hence an expensive luxury beyond the reach of the European poor. 

After refregerated ships
Now animals were slaughtered for food at the starting point - in America, Australia or New Zealand - and then transported to Europe as frozen meat. This reduced shipping costs and lowered meat prices in Europe. The poor in Europe could now consume a more varied diet. To the earlier monotony of bread and potatoes many, though not all, could now add meat (and butter and eggs) to their diet. Better living conditions promoted -social peace within the country and support for imperialism abroad.

Late Nineteenth-century colonialism
Darker Side of Economic Expansion
1.    In many parts of the world, the expansion of trade and a closer relationship with the world economy also meant a loss of freedoms and livelihoods. 
2.    Late-nineteenth -century European conquests produced many painful economic, social and ecological changes
3.    Rival European powers in Africa drew up the borders demarcating their respective territories. In 1885 the big Europen powers met in Berlin to                   complete the carving up of Africa between them.
4.    Britain and France made vast additions to their overseas territories in the late nineteenth century. 
5.    Belgium and Germany became new colonial powers. 
6.    The US also became a colonial power in the late 1890s by taking over some colonies earlier held by Spain.

Rinderpest or the cattle plague
In Africa, in the 1890s, a fast-spreading disease of cattle plague or rinderpest had a terrifying impact on people’s livelihood and the local economy.
Historically, Africa had abundant land and a relatively small population. For centuries, land and livestock sustained African livelihoods and people rarely worked for a wage. In late-nineteenth-century Africa there were few consumer goods that wages could buy. 
In the late nineteenth century, Europeans were attracted to Africa due to its vast resources of land and minerals. Europeans came to Africa hoping to establish plantations and mines to produce crops and minerals for export to Europe. But there was an unexpected problem - a shortage of labour willing to work for wages.

Methods to recruit and retain labour. 
1.    Heavy takes were imposed which could be paid only by working for wages on plantations and mines. 
2.    Inheritance laws were changed so that peasants were displaced from land: only one member of a family was allowed to inherit land, as a result of           which the others were pushed into the labour market. 
3.    Mineworkers were also confined in compounds and not allowed to move about freely.
       Rinderpest arrived in Africa spread of rinder pest was carried by infected cattle imported from British Asia to feed the Italian soldiers invading                    Eritrea   in East Africa. Entering Africa in the east, rinderpest moved west ‘like forest fire’, reaching Africa’s Atlantic coast in 1892. It reached the              Cape (Africa’s southernmost tip) five vears later. Along the way rinderpest killed 90 per cent of the cattle. 

 Impact of coming of Rinderpast
1.    The loss of cattle destroyed African livelihoods. 
2.    Planters, mine owners in colonial governments now successfully monopolised what scarce cattle resources remained, to strengthen their power and to force  Africans into the labour market. 
3.    Control over the scarce resource of cattle enabled European colonisers to conquer and subdue Africa.

Indentured labout migration from India
In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world. In India, indentured labourers were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation. 
Most Indian indenture workers came from the present-day regions of eastern Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu.

Causes for Migration of Workers 
1.    In the mid-nineteenth century these regions experienced many changes - cottage industries declined, land rents rose, lands were cleared for mines and plantations. 
2.    All this affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work.
3.    Many migrants agreed to take up work hoping to escape poverty or oppression in their home villages.
4.    Agents also tempted the prospective migrants by providing false information about final destinations, modes of travel, the nature of the work living and working conditions. 
5.    Often migrants were not even told that they were to embark on a long sea voyage. Sometimes agents even forcibly abducted less willing migrants. 
The main destinations of Indian indentured migrants were the Caribbean islands (mainly Trinidad, Guyana and Surinam), Mauritius and Fiji. Closer home, to Ceylon and Malaya. 

Ways of surviving by worker. 
1.    Many of them escaped into the wilds, though if caught they faced severe punishment.
2.    Others developed new forms of individual and collective self- expression, blending different cultural forms, old and new. In Trinidad the annual Muharram procession was transformed into a riotous carnival called ‘Hosay’ (for Imam Hussain) in which workers of all races and religions joined. 
3.    Similarly, the protest religion of Rastafarianism (made famous by the Jamaican reggae star Bob Marley) is also said to reflect social and cultural links with Indian migrants to the Caribbean. 
4.    ‘Chutney music’, popular in Trinidad and Guyana, is another creative contemporary expression of the post-indenture experience.

Indian entrepreneurs Abroad
1.    Shikaripuri shroffs and Nattukottai Chettiars. They were amongst the many groups of bankers and traders who financed export agriculture in Central and Southeast Asia, using either their own funds or those borrowed from European banks. They had a sophisticated system to transfer money over large distances, and even developed indigenous forms of corporate organisation.
2.    Hyderabadi Sindhi traders, however, ventured beyond European colonies. From the 1860s they established flourishing emporia at busy ports worldwide, selling local and imported curios to tourists whose numbers were beginning to swell, thanks to the development of safe and comfortable passenger vessels.

Indian trade, colonialsim and the global system
1.    Historically, fine cottons produced in India were exported to Europe. With industrialisation, British cotton manufacture began to expand, and industrialists pressurised the government to restrict cotton, imports and protect local industries. Tariffs were imposed on cloth imports into Britain. Consequently, the inflow of fine Indian cotton began to decline.
2.    From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth. Excluded from the British market by tariff barriers, Indian textiles now faced stiff competition in other international markets. 

While exports of manufactures declined rapidly, export of raw materials increased equally fast. 
    1.    Between 1812 and 1871, the share of raw cotton exports rose from 5 per cent to 35 per cent 
    2.    Indigo used for dyeing cloth was another important export for many decades.
    3.    Opium shipments to China- grew rapidly from the 1820s to become for a while India’s single largest export. Britain grew opium in India and exported it to China with the money earned through this sale, it financed its other imports from China.
Food grain and raw material exports from India to Britain and  the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India. 
Thus Britain had a ‘trade surplus’ with India. Britain used this to balance its trade deficits with other countries- that is, with countries from which Britain was importing more than it was selling to.
This is how a multilateral settlement system works it allows one country’s deficit with another country to be settled by its surplus with a third country.
Britain’s trade surplus in India also helped pay the so-called ‘home charges’ that included private remittances home by British officials and traders, interest payments on India’s external debt, and pensions of British officials in India.

Illustration 6
Which were the two groups of I world war name the countries of those groups?
Solution
The two groups of the I world war were the Allies and the central powers.
 The Allies ⟶ Britain, France and Russia (later joined by U.S.)
Central Powers ⟶ Germany, Austria-Hungry and Ottoman Turkey.

Illustration 7
What was the impacts of I world war on the European Economy?
Solution
    (i)     This was used weapons and Ammunition product in industries which increased the weapon industrialisation on modern lines.
    (ii)     It reduced the able bodied workforce in Europe.
    (iii)     Household income declined because of low number of family members.
    (iv)     The position of women improved in economy.
    (v)    Many fighting countries borrowed funds from developed countries.

Illustration 8
What was ‘Assembly line’ adopted by Henry Ford?
Solution
Production of goods by different persons at different points so that they become expert of the job. That enabled the company to produce goods faster.

Illustration 9
What was the time duration of the great depression.
Solution
It began around 1929 and lasted till 1930’s.

The nineteenth century (1815-1914)    
Economists identify three types of movement or ‘flows’ within international economic exchanges. 
    1.    The first is the flow of trade which  nineteenth century referred largely to trade in goods (e.g., cloth or wheat). 
    2.    The second is the flow of labour - the migration of people in search of employment. 
    3.    The third is the movement of capital for short-term or long-term investments over long distances.

 A world economy takes shape
Population growth from the late eighteenth century had increased the demand for food grains in Britain. As urban centres expanded and industry grew, the demand for agricultural products went up, pushing up food grain prices.
Under pressure from land owner groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the ‘Corn Laws’.
    After the Corn Laws were scrapped because of high prices of grains.
    1.    Food could be imported into Britain more cheaply than it could be produced within the country.
    2.    British agriculture was unable to compete with imports. Vast areas of land were now left uncultivated,
    3.    Thousands of men and women were thrown out of work. They flocked to the cities or migrated overseas.
As food prices fell, consumption in Britain rose. From the mid-nineteenth century, faster industrial growth in Britain also led to higher incomes, and therefore more food imports. 
    1.    Railways were needed to link the agricultural regions to the ports.
    2.    New harbours had to be built and old ones expanded to ship the new-cargoes. 
    3.    People had to settle on the lands to bring them under cultivation. This meant building homes and     settlements. 
    4.    All these activities in turn required capital, and labour. Capital flowed from financial centres such as London. 
    5.    The demand for labour in places where labour was in short supply - as in America and 
Australia -led to more migration.

India
In West Punjab the British Indian government built a network of irrigation canals to transform 
semi-desert wastes, into fertile agricultural lands that could grow wheat and cotton for export. The Canal Colonies, as the areas irrigated by the new canals were called, were settled by peasants from other parts of Punjab.
Of course, food is merely an example. A similar story can be told for cotton, the cultivation of which expanded worldwide to feed British textile mills or the crop of rubber. 

Role of technology
Technological advances were the result of larger social, political and economic factors. For example, colonisation stimulated new investments and improvements in transport: faster railways, lighter wagons and larger ships helped move food more cheaply and quickly from far away farms to final markets.
The trade in meat offers a good example of this connected process. Till the 1870s, animals were shipped live from America to Europe and then slaughtered when they arrived there. But live animals took up alot of ship space. Many also died in voyage, fell ill, lost weight, or became unfit to eat. Meat was hence an expensive luxury beyond the reach of the European poor. 

After refregerated ships
Now animals were slaughtered for food at the starting point - in America, Australia or New Zealand - and then transported to Europe as frozen meat. This reduced shipping costs and lowered meat prices in Europe. The poor in Europe could now consume a more varied diet. To the earlier monotony of bread and potatoes many, though not all, could now add meat (and butter and eggs) to their diet. Better living conditions promoted -social peace within the country and support for imperialism abroad.

Late Nineteenth-century colonialism
Darker Side of Economic Expansion
1.    In many parts of the world, the expansion of trade and a closer relationship with the world economy also meant a loss of freedoms and livelihoods. 
2.    Late-nineteenth -century European conquests produced many painful economic, social and ecological changes
3.    Rival European powers in Africa drew up the borders demarcating their respective territories. In 1885 the big Europen powers met in Berlin to                   complete the carving up of Africa between them.
4.    Britain and France made vast additions to their overseas territories in the late nineteenth century. 
5.    Belgium and Germany became new colonial powers. 
6.    The US also became a colonial power in the late 1890s by taking over some colonies earlier held by Spain.

Rinderpest or the cattle plague
In Africa, in the 1890s, a fast-spreading disease of cattle plague or rinderpest had a terrifying impact on people’s livelihood and the local economy.
Historically, Africa had abundant land and a relatively small population. For centuries, land and livestock sustained African livelihoods and people rarely worked for a wage. In late-nineteenth-century Africa there were few consumer goods that wages could buy. 
In the late nineteenth century, Europeans were attracted to Africa due to its vast resources of land and minerals. Europeans came to Africa hoping to establish plantations and mines to produce crops and minerals for export to Europe. But there was an unexpected problem - a shortage of labour willing to work for wages.

Methods to recruit and retain labour. 
1.    Heavy takes were imposed which could be paid only by working for wages on plantations and mines. 
2.    Inheritance laws were changed so that peasants were displaced from land: only one member of a family was allowed to inherit land, as a result of           which the others were pushed into the labour market. 
3.    Mineworkers were also confined in compounds and not allowed to move about freely.
       Rinderpest arrived in Africa spread of rinder pest was carried by infected cattle imported from British Asia to feed the Italian soldiers invading                    Eritrea   in East Africa. Entering Africa in the east, rinderpest moved west ‘like forest fire’, reaching Africa’s Atlantic coast in 1892. It reached the              Cape (Africa’s southernmost tip) five vears later. Along the way rinderpest killed 90 per cent of the cattle. 

 Impact of coming of Rinderpast
1.    The loss of cattle destroyed African livelihoods. 
2.    Planters, mine owners in colonial governments now successfully monopolised what scarce cattle resources remained, to strengthen their power and to force  Africans into the labour market. 
3.    Control over the scarce resource of cattle enabled European colonisers to conquer and subdue Africa.

Indentured labout migration from India
In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world. In India, indentured labourers were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation. 
Most Indian indenture workers came from the present-day regions of eastern Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu.

Causes for Migration of Workers 
1.    In the mid-nineteenth century these regions experienced many changes - cottage industries declined, land rents rose, lands were cleared for mines and plantations. 
2.    All this affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work.
3.    Many migrants agreed to take up work hoping to escape poverty or oppression in their home villages.
4.    Agents also tempted the prospective migrants by providing false information about final destinations, modes of travel, the nature of the work living and working conditions. 
5.    Often migrants were not even told that they were to embark on a long sea voyage. Sometimes agents even forcibly abducted less willing migrants. 
The main destinations of Indian indentured migrants were the Caribbean islands (mainly Trinidad, Guyana and Surinam), Mauritius and Fiji. Closer home, to Ceylon and Malaya. 

Ways of surviving by worker. 
1.    Many of them escaped into the wilds, though if caught they faced severe punishment.
2.    Others developed new forms of individual and collective self- expression, blending different cultural forms, old and new. In Trinidad the annual Muharram procession was transformed into a riotous carnival called ‘Hosay’ (for Imam Hussain) in which workers of all races and religions joined. 
3.    Similarly, the protest religion of Rastafarianism (made famous by the Jamaican reggae star Bob Marley) is also said to reflect social and cultural links with Indian migrants to the Caribbean. 
4.    ‘Chutney music’, popular in Trinidad and Guyana, is another creative contemporary expression of the post-indenture experience.

Indian entrepreneurs Abroad
1.    Shikaripuri shroffs and Nattukottai Chettiars. They were amongst the many groups of bankers and traders who financed export agriculture in Central and Southeast Asia, using either their own funds or those borrowed from European banks. They had a sophisticated system to transfer money over large distances, and even developed indigenous forms of corporate organisation.
2.    Hyderabadi Sindhi traders, however, ventured beyond European colonies. From the 1860s they established flourishing emporia at busy ports worldwide, selling local and imported curios to tourists whose numbers were beginning to swell, thanks to the development of safe and comfortable passenger vessels.

Indian trade, colonialsim and the global system
1.    Historically, fine cottons produced in India were exported to Europe. With industrialisation, British cotton manufacture began to expand, and industrialists pressurised the government to restrict cotton, imports and protect local industries. Tariffs were imposed on cloth imports into Britain. Consequently, the inflow of fine Indian cotton began to decline.
2.    From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth. Excluded from the British market by tariff barriers, Indian textiles now faced stiff competition in other international markets. 

While exports of manufactures declined rapidly, export of raw materials increased equally fast. 
    1.    Between 1812 and 1871, the share of raw cotton exports rose from 5 per cent to 35 per cent 
    2.    Indigo used for dyeing cloth was another important export for many decades.
    3.    Opium shipments to China- grew rapidly from the 1820s to become for a while India’s single largest export. Britain grew opium in India and exported it to China with the money earned through this sale, it financed its other imports from China.
Food grain and raw material exports from India to Britain and  the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India. 
Thus Britain had a ‘trade surplus’ with India. Britain used this to balance its trade deficits with other countries- that is, with countries from which Britain was importing more than it was selling to.
This is how a multilateral settlement system works it allows one country’s deficit with another country to be settled by its surplus with a third country.
Britain’s trade surplus in India also helped pay the so-called ‘home charges’ that included private remittances home by British officials and traders, interest payments on India’s external debt, and pensions of British officials in India.

Illustration 6
Which were the two groups of I world war name the countries of those groups?
Solution
The two groups of the I world war were the Allies and the central powers.
 The Allies ⟶ Britain, France and Russia (later joined by U.S.)
Central Powers ⟶ Germany, Austria-Hungry and Ottoman Turkey.

Illustration 7
What was the impacts of I world war on the European Economy?
Solution
    (i)     This was used weapons and Ammunition product in industries which increased the weapon industrialisation on modern lines.
    (ii)     It reduced the able bodied workforce in Europe.
    (iii)     Household income declined because of low number of family members.
    (iv)     The position of women improved in economy.
    (v)    Many fighting countries borrowed funds from developed countries.

Illustration 8
What was ‘Assembly line’ adopted by Henry Ford?
Solution
Production of goods by different persons at different points so that they become expert of the job. That enabled the company to produce goods faster.

Illustration 9
What was the time duration of the great depression.
Solution
It began around 1929 and lasted till 1930’s.

The nineteenth century (1815-1914)    
Economists identify three types of movement or ‘flows’ within international economic exchanges. 
    1.    The first is the flow of trade which  nineteenth century referred largely to trade in goods (e.g., cloth or wheat). 
    2.    The second is the flow of labour - the migration of people in search of employment. 
    3.    The third is the movement of capital for short-term or long-term investments over long distances.

 A world economy takes shape
Population growth from the late eighteenth century had increased the demand for food grains in Britain. As urban centres expanded and industry grew, the demand for agricultural products went up, pushing up food grain prices.
Under pressure from land owner groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the ‘Corn Laws’.
    After the Corn Laws were scrapped because of high prices of grains.
    1.    Food could be imported into Britain more cheaply than it could be produced within the country.
    2.    British agriculture was unable to compete with imports. Vast areas of land were now left uncultivated,
    3.    Thousands of men and women were thrown out of work. They flocked to the cities or migrated overseas.
As food prices fell, consumption in Britain rose. From the mid-nineteenth century, faster industrial growth in Britain also led to higher incomes, and therefore more food imports. 
    1.    Railways were needed to link the agricultural regions to the ports.
    2.    New harbours had to be built and old ones expanded to ship the new-cargoes. 
    3.    People had to settle on the lands to bring them under cultivation. This meant building homes and     settlements. 
    4.    All these activities in turn required capital, and labour. Capital flowed from financial centres such as London. 
    5.    The demand for labour in places where labour was in short supply - as in America and 
Australia -led to more migration.

India
In West Punjab the British Indian government built a network of irrigation canals to transform 
semi-desert wastes, into fertile agricultural lands that could grow wheat and cotton for export. The Canal Colonies, as the areas irrigated by the new canals were called, were settled by peasants from other parts of Punjab.
Of course, food is merely an example. A similar story can be told for cotton, the cultivation of which expanded worldwide to feed British textile mills or the crop of rubber. 

Role of technology
Technological advances were the result of larger social, political and economic factors. For example, colonisation stimulated new investments and improvements in transport: faster railways, lighter wagons and larger ships helped move food more cheaply and quickly from far away farms to final markets.
The trade in meat offers a good example of this connected process. Till the 1870s, animals were shipped live from America to Europe and then slaughtered when they arrived there. But live animals took up alot of ship space. Many also died in voyage, fell ill, lost weight, or became unfit to eat. Meat was hence an expensive luxury beyond the reach of the European poor. 

After refregerated ships
Now animals were slaughtered for food at the starting point - in America, Australia or New Zealand - and then transported to Europe as frozen meat. This reduced shipping costs and lowered meat prices in Europe. The poor in Europe could now consume a more varied diet. To the earlier monotony of bread and potatoes many, though not all, could now add meat (and butter and eggs) to their diet. Better living conditions promoted -social peace within the country and support for imperialism abroad.

Late Nineteenth-century colonialism
Darker Side of Economic Expansion
1.    In many parts of the world, the expansion of trade and a closer relationship with the world economy also meant a loss of freedoms and livelihoods. 
2.    Late-nineteenth -century European conquests produced many painful economic, social and ecological changes
3.    Rival European powers in Africa drew up the borders demarcating their respective territories. In 1885 the big Europen powers met in Berlin to                   complete the carving up of Africa between them.
4.    Britain and France made vast additions to their overseas territories in the late nineteenth century. 
5.    Belgium and Germany became new colonial powers. 
6.    The US also became a colonial power in the late 1890s by taking over some colonies earlier held by Spain.

Rinderpest or the cattle plague
In Africa, in the 1890s, a fast-spreading disease of cattle plague or rinderpest had a terrifying impact on people’s livelihood and the local economy.
Historically, Africa had abundant land and a relatively small population. For centuries, land and livestock sustained African livelihoods and people rarely worked for a wage. In late-nineteenth-century Africa there were few consumer goods that wages could buy. 
In the late nineteenth century, Europeans were attracted to Africa due to its vast resources of land and minerals. Europeans came to Africa hoping to establish plantations and mines to produce crops and minerals for export to Europe. But there was an unexpected problem - a shortage of labour willing to work for wages.

Methods to recruit and retain labour. 
1.    Heavy takes were imposed which could be paid only by working for wages on plantations and mines. 
2.    Inheritance laws were changed so that peasants were displaced from land: only one member of a family was allowed to inherit land, as a result of           which the others were pushed into the labour market. 
3.    Mineworkers were also confined in compounds and not allowed to move about freely.
       Rinderpest arrived in Africa spread of rinder pest was carried by infected cattle imported from British Asia to feed the Italian soldiers invading                    Eritrea   in East Africa. Entering Africa in the east, rinderpest moved west ‘like forest fire’, reaching Africa’s Atlantic coast in 1892. It reached the              Cape (Africa’s southernmost tip) five vears later. Along the way rinderpest killed 90 per cent of the cattle. 

 Impact of coming of Rinderpast
1.    The loss of cattle destroyed African livelihoods. 
2.    Planters, mine owners in colonial governments now successfully monopolised what scarce cattle resources remained, to strengthen their power and to force  Africans into the labour market. 
3.    Control over the scarce resource of cattle enabled European colonisers to conquer and subdue Africa.

Indentured labout migration from India
In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world. In India, indentured labourers were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation. 
Most Indian indenture workers came from the present-day regions of eastern Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu.

Causes for Migration of Workers 
1.    In the mid-nineteenth century these regions experienced many changes - cottage industries declined, land rents rose, lands were cleared for mines and plantations. 
2.    All this affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work.
3.    Many migrants agreed to take up work hoping to escape poverty or oppression in their home villages.
4.    Agents also tempted the prospective migrants by providing false information about final destinations, modes of travel, the nature of the work living and working conditions. 
5.    Often migrants were not even told that they were to embark on a long sea voyage. Sometimes agents even forcibly abducted less willing migrants. 
The main destinations of Indian indentured migrants were the Caribbean islands (mainly Trinidad, Guyana and Surinam), Mauritius and Fiji. Closer home, to Ceylon and Malaya. 

Ways of surviving by worker. 
1.    Many of them escaped into the wilds, though if caught they faced severe punishment.
2.    Others developed new forms of individual and collective self- expression, blending different cultural forms, old and new. In Trinidad the annual Muharram procession was transformed into a riotous carnival called ‘Hosay’ (for Imam Hussain) in which workers of all races and religions joined. 
3.    Similarly, the protest religion of Rastafarianism (made famous by the Jamaican reggae star Bob Marley) is also said to reflect social and cultural links with Indian migrants to the Caribbean. 
4.    ‘Chutney music’, popular in Trinidad and Guyana, is another creative contemporary expression of the post-indenture experience.

Indian entrepreneurs Abroad
1.    Shikaripuri shroffs and Nattukottai Chettiars. They were amongst the many groups of bankers and traders who financed export agriculture in Central and Southeast Asia, using either their own funds or those borrowed from European banks. They had a sophisticated system to transfer money over large distances, and even developed indigenous forms of corporate organisation.
2.    Hyderabadi Sindhi traders, however, ventured beyond European colonies. From the 1860s they established flourishing emporia at busy ports worldwide, selling local and imported curios to tourists whose numbers were beginning to swell, thanks to the development of safe and comfortable passenger vessels.

Indian trade, colonialsim and the global system
1.    Historically, fine cottons produced in India were exported to Europe. With industrialisation, British cotton manufacture began to expand, and industrialists pressurised the government to restrict cotton, imports and protect local industries. Tariffs were imposed on cloth imports into Britain. Consequently, the inflow of fine Indian cotton began to decline.
2.    From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth. Excluded from the British market by tariff barriers, Indian textiles now faced stiff competition in other international markets. 

While exports of manufactures declined rapidly, export of raw materials increased equally fast. 
    1.    Between 1812 and 1871, the share of raw cotton exports rose from 5 per cent to 35 per cent 
    2.    Indigo used for dyeing cloth was another important export for many decades.
    3.    Opium shipments to China- grew rapidly from the 1820s to become for a while India’s single largest export. Britain grew opium in India and exported it to China with the money earned through this sale, it financed its other imports from China.
Food grain and raw material exports from India to Britain and  the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India. 
Thus Britain had a ‘trade surplus’ with India. Britain used this to balance its trade deficits with other countries- that is, with countries from which Britain was importing more than it was selling to.
This is how a multilateral settlement system works it allows one country’s deficit with another country to be settled by its surplus with a third country.
Britain’s trade surplus in India also helped pay the so-called ‘home charges’ that included private remittances home by British officials and traders, interest payments on India’s external debt, and pensions of British officials in India.

Illustration 6
Which were the two groups of I world war name the countries of those groups?
Solution
The two groups of the I world war were the Allies and the central powers.
 The Allies ⟶ Britain, France and Russia (later joined by U.S.)
Central Powers ⟶ Germany, Austria-Hungry and Ottoman Turkey.

Illustration 7
What was the impacts of I world war on the European Economy?
Solution
    (i)     This was used weapons and Ammunition product in industries which increased the weapon industrialisation on modern lines.
    (ii)     It reduced the able bodied workforce in Europe.
    (iii)     Household income declined because of low number of family members.
    (iv)     The position of women improved in economy.
    (v)    Many fighting countries borrowed funds from developed countries.

Illustration 8
What was ‘Assembly line’ adopted by Henry Ford?
Solution
Production of goods by different persons at different points so that they become expert of the job. That enabled the company to produce goods faster.

Illustration 9
What was the time duration of the great depression.
Solution
It began around 1929 and lasted till 1930’s.

The nineteenth century (1815-1914)    
Economists identify three types of movement or ‘flows’ within international economic exchanges. 
    1.    The first is the flow of trade which  nineteenth century referred largely to trade in goods (e.g., cloth or wheat). 
    2.    The second is the flow of labour - the migration of people in search of employment. 
    3.    The third is the movement of capital for short-term or long-term investments over long distances.

 A world economy takes shape
Population growth from the late eighteenth century had increased the demand for food grains in Britain. As urban centres expanded and industry grew, the demand for agricultural products went up, pushing up food grain prices.
Under pressure from land owner groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the ‘Corn Laws’.
    After the Corn Laws were scrapped because of high prices of grains.
    1.    Food could be imported into Britain more cheaply than it could be produced within the country.
    2.    British agriculture was unable to compete with imports. Vast areas of land were now left uncultivated,
    3.    Thousands of men and women were thrown out of work. They flocked to the cities or migrated overseas.
As food prices fell, consumption in Britain rose. From the mid-nineteenth century, faster industrial growth in Britain also led to higher incomes, and therefore more food imports. 
    1.    Railways were needed to link the agricultural regions to the ports.
    2.    New harbours had to be built and old ones expanded to ship the new-cargoes. 
    3.    People had to settle on the lands to bring them under cultivation. This meant building homes and     settlements. 
    4.    All these activities in turn required capital, and labour. Capital flowed from financial centres such as London. 
    5.    The demand for labour in places where labour was in short supply - as in America and 
Australia -led to more migration.

India
In West Punjab the British Indian government built a network of irrigation canals to transform 
semi-desert wastes, into fertile agricultural lands that could grow wheat and cotton for export. The Canal Colonies, as the areas irrigated by the new canals were called, were settled by peasants from other parts of Punjab.
Of course, food is merely an example. A similar story can be told for cotton, the cultivation of which expanded worldwide to feed British textile mills or the crop of rubber. 

Role of technology
Technological advances were the result of larger social, political and economic factors. For example, colonisation stimulated new investments and improvements in transport: faster railways, lighter wagons and larger ships helped move food more cheaply and quickly from far away farms to final markets.
The trade in meat offers a good example of this connected process. Till the 1870s, animals were shipped live from America to Europe and then slaughtered when they arrived there. But live animals took up alot of ship space. Many also died in voyage, fell ill, lost weight, or became unfit to eat. Meat was hence an expensive luxury beyond the reach of the European poor. 

After refregerated ships
Now animals were slaughtered for food at the starting point - in America, Australia or New Zealand - and then transported to Europe as frozen meat. This reduced shipping costs and lowered meat prices in Europe. The poor in Europe could now consume a more varied diet. To the earlier monotony of bread and potatoes many, though not all, could now add meat (and butter and eggs) to their diet. Better living conditions promoted -social peace within the country and support for imperialism abroad.

Late Nineteenth-century colonialism
Darker Side of Economic Expansion
1.    In many parts of the world, the expansion of trade and a closer relationship with the world economy also meant a loss of freedoms and livelihoods. 
2.    Late-nineteenth -century European conquests produced many painful economic, social and ecological changes
3.    Rival European powers in Africa drew up the borders demarcating their respective territories. In 1885 the big Europen powers met in Berlin to                   complete the carving up of Africa between them.
4.    Britain and France made vast additions to their overseas territories in the late nineteenth century. 
5.    Belgium and Germany became new colonial powers. 
6.    The US also became a colonial power in the late 1890s by taking over some colonies earlier held by Spain.

Rinderpest or the cattle plague
In Africa, in the 1890s, a fast-spreading disease of cattle plague or rinderpest had a terrifying impact on people’s livelihood and the local economy.
Historically, Africa had abundant land and a relatively small population. For centuries, land and livestock sustained African livelihoods and people rarely worked for a wage. In late-nineteenth-century Africa there were few consumer goods that wages could buy. 
In the late nineteenth century, Europeans were attracted to Africa due to its vast resources of land and minerals. Europeans came to Africa hoping to establish plantations and mines to produce crops and minerals for export to Europe. But there was an unexpected problem - a shortage of labour willing to work for wages.

Methods to recruit and retain labour. 
1.    Heavy takes were imposed which could be paid only by working for wages on plantations and mines. 
2.    Inheritance laws were changed so that peasants were displaced from land: only one member of a family was allowed to inherit land, as a result of           which the others were pushed into the labour market. 
3.    Mineworkers were also confined in compounds and not allowed to move about freely.
       Rinderpest arrived in Africa spread of rinder pest was carried by infected cattle imported from British Asia to feed the Italian soldiers invading                    Eritrea   in East Africa. Entering Africa in the east, rinderpest moved west ‘like forest fire’, reaching Africa’s Atlantic coast in 1892. It reached the              Cape (Africa’s southernmost tip) five vears later. Along the way rinderpest killed 90 per cent of the cattle. 

 Impact of coming of Rinderpast
1.    The loss of cattle destroyed African livelihoods. 
2.    Planters, mine owners in colonial governments now successfully monopolised what scarce cattle resources remained, to strengthen their power and to force  Africans into the labour market. 
3.    Control over the scarce resource of cattle enabled European colonisers to conquer and subdue Africa.

Indentured labout migration from India
In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world. In India, indentured labourers were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation. 
Most Indian indenture workers came from the present-day regions of eastern Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu.

Causes for Migration of Workers 
1.    In the mid-nineteenth century these regions experienced many changes - cottage industries declined, land rents rose, lands were cleared for mines and plantations. 
2.    All this affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work.
3.    Many migrants agreed to take up work hoping to escape poverty or oppression in their home villages.
4.    Agents also tempted the prospective migrants by providing false information about final destinations, modes of travel, the nature of the work living and working conditions. 
5.    Often migrants were not even told that they were to embark on a long sea voyage. Sometimes agents even forcibly abducted less willing migrants. 
The main destinations of Indian indentured migrants were the Caribbean islands (mainly Trinidad, Guyana and Surinam), Mauritius and Fiji. Closer home, to Ceylon and Malaya. 

Ways of surviving by worker. 
1.    Many of them escaped into the wilds, though if caught they faced severe punishment.
2.    Others developed new forms of individual and collective self- expression, blending different cultural forms, old and new. In Trinidad the annual Muharram procession was transformed into a riotous carnival called ‘Hosay’ (for Imam Hussain) in which workers of all races and religions joined. 
3.    Similarly, the protest religion of Rastafarianism (made famous by the Jamaican reggae star Bob Marley) is also said to reflect social and cultural links with Indian migrants to the Caribbean. 
4.    ‘Chutney music’, popular in Trinidad and Guyana, is another creative contemporary expression of the post-indenture experience.

Indian entrepreneurs Abroad
1.    Shikaripuri shroffs and Nattukottai Chettiars. They were amongst the many groups of bankers and traders who financed export agriculture in Central and Southeast Asia, using either their own funds or those borrowed from European banks. They had a sophisticated system to transfer money over large distances, and even developed indigenous forms of corporate organisation.
2.    Hyderabadi Sindhi traders, however, ventured beyond European colonies. From the 1860s they established flourishing emporia at busy ports worldwide, selling local and imported curios to tourists whose numbers were beginning to swell, thanks to the development of safe and comfortable passenger vessels.

Indian trade, colonialsim and the global system
1.    Historically, fine cottons produced in India were exported to Europe. With industrialisation, British cotton manufacture began to expand, and industrialists pressurised the government to restrict cotton, imports and protect local industries. Tariffs were imposed on cloth imports into Britain. Consequently, the inflow of fine Indian cotton began to decline.
2.    From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth. Excluded from the British market by tariff barriers, Indian textiles now faced stiff competition in other international markets. 

While exports of manufactures declined rapidly, export of raw materials increased equally fast. 
    1.    Between 1812 and 1871, the share of raw cotton exports rose from 5 per cent to 35 per cent 
    2.    Indigo used for dyeing cloth was another important export for many decades.
    3.    Opium shipments to China- grew rapidly from the 1820s to become for a while India’s single largest export. Britain grew opium in India and exported it to China with the money earned through this sale, it financed its other imports from China.
Food grain and raw material exports from India to Britain and  the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India. 
Thus Britain had a ‘trade surplus’ with India. Britain used this to balance its trade deficits with other countries- that is, with countries from which Britain was importing more than it was selling to.
This is how a multilateral settlement system works it allows one country’s deficit with another country to be settled by its surplus with a third country.
Britain’s trade surplus in India also helped pay the so-called ‘home charges’ that included private remittances home by British officials and traders, interest payments on India’s external debt, and pensions of British officials in India.

Illustration 6
Which were the two groups of I world war name the countries of those groups?
Solution
The two groups of the I world war were the Allies and the central powers.
 The Allies ⟶ Britain, France and Russia (later joined by U.S.)
Central Powers ⟶ Germany, Austria-Hungry and Ottoman Turkey.

Illustration 7
What was the impacts of I world war on the European Economy?
Solution
    (i)     This was used weapons and Ammunition product in industries which increased the weapon industrialisation on modern lines.
    (ii)     It reduced the able bodied workforce in Europe.
    (iii)     Household income declined because of low number of family members.
    (iv)     The position of women improved in economy.
    (v)    Many fighting countries borrowed funds from developed countries.

Illustration 8
What was ‘Assembly line’ adopted by Henry Ford?
Solution
Production of goods by different persons at different points so that they become expert of the job. That enabled the company to produce goods faster.

Illustration 9
What was the time duration of the great depression.
Solution
It began around 1929 and lasted till 1930’s.

The nineteenth century (1815-1914)    
Economists identify three types of movement or ‘flows’ within international economic exchanges. 
    1.    The first is the flow of trade which  nineteenth century referred largely to trade in goods (e.g., cloth or wheat). 
    2.    The second is the flow of labour - the migration of people in search of employment. 
    3.    The third is the movement of capital for short-term or long-term investments over long distances.

 A world economy takes shape
Population growth from the late eighteenth century had increased the demand for food grains in Britain. As urban centres expanded and industry grew, the demand for agricultural products went up, pushing up food grain prices.
Under pressure from land owner groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the ‘Corn Laws’.
    After the Corn Laws were scrapped because of high prices of grains.
    1.    Food could be imported into Britain more cheaply than it could be produced within the country.
    2.    British agriculture was unable to compete with imports. Vast areas of land were now left uncultivated,
    3.    Thousands of men and women were thrown out of work. They flocked to the cities or migrated overseas.
As food prices fell, consumption in Britain rose. From the mid-nineteenth century, faster industrial growth in Britain also led to higher incomes, and therefore more food imports. 
    1.    Railways were needed to link the agricultural regions to the ports.
    2.    New harbours had to be built and old ones expanded to ship the new-cargoes. 
    3.    People had to settle on the lands to bring them under cultivation. This meant building homes and     settlements. 
    4.    All these activities in turn required capital, and labour. Capital flowed from financial centres such as London. 
    5.    The demand for labour in places where labour was in short supply - as in America and 
Australia -led to more migration.

India
In West Punjab the British Indian government built a network of irrigation canals to transform 
semi-desert wastes, into fertile agricultural lands that could grow wheat and cotton for export. The Canal Colonies, as the areas irrigated by the new canals were called, were settled by peasants from other parts of Punjab.
Of course, food is merely an example. A similar story can be told for cotton, the cultivation of which expanded worldwide to feed British textile mills or the crop of rubber. 

Role of technology
Technological advances were the result of larger social, political and economic factors. For example, colonisation stimulated new investments and improvements in transport: faster railways, lighter wagons and larger ships helped move food more cheaply and quickly from far away farms to final markets.
The trade in meat offers a good example of this connected process. Till the 1870s, animals were shipped live from America to Europe and then slaughtered when they arrived there. But live animals took up alot of ship space. Many also died in voyage, fell ill, lost weight, or became unfit to eat. Meat was hence an expensive luxury beyond the reach of the European poor. 

After refregerated ships
Now animals were slaughtered for food at the starting point - in America, Australia or New Zealand - and then transported to Europe as frozen meat. This reduced shipping costs and lowered meat prices in Europe. The poor in Europe could now consume a more varied diet. To the earlier monotony of bread and potatoes many, though not all, could now add meat (and butter and eggs) to their diet. Better living conditions promoted -social peace within the country and support for imperialism abroad.

Late Nineteenth-century colonialism
Darker Side of Economic Expansion
1.    In many parts of the world, the expansion of trade and a closer relationship with the world economy also meant a loss of freedoms and livelihoods. 
2.    Late-nineteenth -century European conquests produced many painful economic, social and ecological changes
3.    Rival European powers in Africa drew up the borders demarcating their respective territories. In 1885 the big Europen powers met in Berlin to                   complete the carving up of Africa between them.
4.    Britain and France made vast additions to their overseas territories in the late nineteenth century. 
5.    Belgium and Germany became new colonial powers. 
6.    The US also became a colonial power in the late 1890s by taking over some colonies earlier held by Spain.

Rinderpest or the cattle plague
In Africa, in the 1890s, a fast-spreading disease of cattle plague or rinderpest had a terrifying impact on people’s livelihood and the local economy.
Historically, Africa had abundant land and a relatively small population. For centuries, land and livestock sustained African livelihoods and people rarely worked for a wage. In late-nineteenth-century Africa there were few consumer goods that wages could buy. 
In the late nineteenth century, Europeans were attracted to Africa due to its vast resources of land and minerals. Europeans came to Africa hoping to establish plantations and mines to produce crops and minerals for export to Europe. But there was an unexpected problem - a shortage of labour willing to work for wages.

Methods to recruit and retain labour. 
1.    Heavy takes were imposed which could be paid only by working for wages on plantations and mines. 
2.    Inheritance laws were changed so that peasants were displaced from land: only one member of a family was allowed to inherit land, as a result of           which the others were pushed into the labour market. 
3.    Mineworkers were also confined in compounds and not allowed to move about freely.
       Rinderpest arrived in Africa spread of rinder pest was carried by infected cattle imported from British Asia to feed the Italian soldiers invading                    Eritrea   in East Africa. Entering Africa in the east, rinderpest moved west ‘like forest fire’, reaching Africa’s Atlantic coast in 1892. It reached the              Cape (Africa’s southernmost tip) five vears later. Along the way rinderpest killed 90 per cent of the cattle. 

 Impact of coming of Rinderpast
1.    The loss of cattle destroyed African livelihoods. 
2.    Planters, mine owners in colonial governments now successfully monopolised what scarce cattle resources remained, to strengthen their power and to force  Africans into the labour market. 
3.    Control over the scarce resource of cattle enabled European colonisers to conquer and subdue Africa.

Indentured labout migration from India
In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world. In India, indentured labourers were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation. 
Most Indian indenture workers came from the present-day regions of eastern Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu.

Causes for Migration of Workers 
1.    In the mid-nineteenth century these regions experienced many changes - cottage industries declined, land rents rose, lands were cleared for mines and plantations. 
2.    All this affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work.
3.    Many migrants agreed to take up work hoping to escape poverty or oppression in their home villages.
4.    Agents also tempted the prospective migrants by providing false information about final destinations, modes of travel, the nature of the work living and working conditions. 
5.    Often migrants were not even told that they were to embark on a long sea voyage. Sometimes agents even forcibly abducted less willing migrants. 
The main destinations of Indian indentured migrants were the Caribbean islands (mainly Trinidad, Guyana and Surinam), Mauritius and Fiji. Closer home, to Ceylon and Malaya. 

Ways of surviving by worker. 
1.    Many of them escaped into the wilds, though if caught they faced severe punishment.
2.    Others developed new forms of individual and collective self- expression, blending different cultural forms, old and new. In Trinidad the annual Muharram procession was transformed into a riotous carnival called ‘Hosay’ (for Imam Hussain) in which workers of all races and religions joined. 
3.    Similarly, the protest religion of Rastafarianism (made famous by the Jamaican reggae star Bob Marley) is also said to reflect social and cultural links with Indian migrants to the Caribbean. 
4.    ‘Chutney music’, popular in Trinidad and Guyana, is another creative contemporary expression of the post-indenture experience.

Indian entrepreneurs Abroad
1.    Shikaripuri shroffs and Nattukottai Chettiars. They were amongst the many groups of bankers and traders who financed export agriculture in Central and Southeast Asia, using either their own funds or those borrowed from European banks. They had a sophisticated system to transfer money over large distances, and even developed indigenous forms of corporate organisation.
2.    Hyderabadi Sindhi traders, however, ventured beyond European colonies. From the 1860s they established flourishing emporia at busy ports worldwide, selling local and imported curios to tourists whose numbers were beginning to swell, thanks to the development of safe and comfortable passenger vessels.

Indian trade, colonialsim and the global system
1.    Historically, fine cottons produced in India were exported to Europe. With industrialisation, British cotton manufacture began to expand, and industrialists pressurised the government to restrict cotton, imports and protect local industries. Tariffs were imposed on cloth imports into Britain. Consequently, the inflow of fine Indian cotton began to decline.
2.    From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth. Excluded from the British market by tariff barriers, Indian textiles now faced stiff competition in other international markets. 

While exports of manufactures declined rapidly, export of raw materials increased equally fast. 
    1.    Between 1812 and 1871, the share of raw cotton exports rose from 5 per cent to 35 per cent 
    2.    Indigo used for dyeing cloth was another important export for many decades.
    3.    Opium shipments to China- grew rapidly from the 1820s to become for a while India’s single largest export. Britain grew opium in India and exported it to China with the money earned through this sale, it financed its other imports from China.
Food grain and raw material exports from India to Britain and  the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India. 
Thus Britain had a ‘trade surplus’ with India. Britain used this to balance its trade deficits with other countries- that is, with countries from which Britain was importing more than it was selling to.
This is how a multilateral settlement system works it allows one country’s deficit with another country to be settled by its surplus with a third country.
Britain’s trade surplus in India also helped pay the so-called ‘home charges’ that included private remittances home by British officials and traders, interest payments on India’s external debt, and pensions of British officials in India.

Illustration 6
Which were the two groups of I world war name the countries of those groups?
Solution
The two groups of the I world war were the Allies and the central powers.
 The Allies ⟶ Britain, France and Russia (later joined by U.S.)
Central Powers ⟶ Germany, Austria-Hungry and Ottoman Turkey.

Illustration 7
What was the impacts of I world war on the European Economy?
Solution
    (i)     This was used weapons and Ammunition product in industries which increased the weapon industrialisation on modern lines.
    (ii)     It reduced the able bodied workforce in Europe.
    (iii)     Household income declined because of low number of family members.
    (iv)     The position of women improved in economy.
    (v)    Many fighting countries borrowed funds from developed countries.

Illustration 8
What was ‘Assembly line’ adopted by Henry Ford?
Solution
Production of goods by different persons at different points so that they become expert of the job. That enabled the company to produce goods faster.

Illustration 9
What was the time duration of the great depression.
Solution
It began around 1929 and lasted till 1930’s.

The nineteenth century (1815-1914)    
Economists identify three types of movement or ‘flows’ within international economic exchanges. 
    1.    The first is the flow of trade which  nineteenth century referred largely to trade in goods (e.g., cloth or wheat). 
    2.    The second is the flow of labour - the migration of people in search of employment. 
    3.    The third is the movement of capital for short-term or long-term investments over long distances.

 A world economy takes shape
Population growth from the late eighteenth century had increased the demand for food grains in Britain. As urban centres expanded and industry grew, the demand for agricultural products went up, pushing up food grain prices.
Under pressure from land owner groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the ‘Corn Laws’.
    After the Corn Laws were scrapped because of high prices of grains.
    1.    Food could be imported into Britain more cheaply than it could be produced within the country.
    2.    British agriculture was unable to compete with imports. Vast areas of land were now left uncultivated,
    3.    Thousands of men and women were thrown out of work. They flocked to the cities or migrated overseas.
As food prices fell, consumption in Britain rose. From the mid-nineteenth century, faster industrial growth in Britain also led to higher incomes, and therefore more food imports. 
    1.    Railways were needed to link the agricultural regions to the ports.
    2.    New harbours had to be built and old ones expanded to ship the new-cargoes. 
    3.    People had to settle on the lands to bring them under cultivation. This meant building homes and     settlements. 
    4.    All these activities in turn required capital, and labour. Capital flowed from financial centres such as London. 
    5.    The demand for labour in places where labour was in short supply - as in America and 
Australia -led to more migration.

India
In West Punjab the British Indian government built a network of irrigation canals to transform 
semi-desert wastes, into fertile agricultural lands that could grow wheat and cotton for export. The Canal Colonies, as the areas irrigated by the new canals were called, were settled by peasants from other parts of Punjab.
Of course, food is merely an example. A similar story can be told for cotton, the cultivation of which expanded worldwide to feed British textile mills or the crop of rubber. 

Role of technology
Technological advances were the result of larger social, political and economic factors. For example, colonisation stimulated new investments and improvements in transport: faster railways, lighter wagons and larger ships helped move food more cheaply and quickly from far away farms to final markets.
The trade in meat offers a good example of this connected process. Till the 1870s, animals were shipped live from America to Europe and then slaughtered when they arrived there. But live animals took up alot of ship space. Many also died in voyage, fell ill, lost weight, or became unfit to eat. Meat was hence an expensive luxury beyond the reach of the European poor. 

After refregerated ships
Now animals were slaughtered for food at the starting point - in America, Australia or New Zealand - and then transported to Europe as frozen meat. This reduced shipping costs and lowered meat prices in Europe. The poor in Europe could now consume a more varied diet. To the earlier monotony of bread and potatoes many, though not all, could now add meat (and butter and eggs) to their diet. Better living conditions promoted -social peace within the country and support for imperialism abroad.

Late Nineteenth-century colonialism
Darker Side of Economic Expansion
1.    In many parts of the world, the expansion of trade and a closer relationship with the world economy also meant a loss of freedoms and livelihoods. 
2.    Late-nineteenth -century European conquests produced many painful economic, social and ecological changes
3.    Rival European powers in Africa drew up the borders demarcating their respective territories. In 1885 the big Europen powers met in Berlin to                   complete the carving up of Africa between them.
4.    Britain and France made vast additions to their overseas territories in the late nineteenth century. 
5.    Belgium and Germany became new colonial powers. 
6.    The US also became a colonial power in the late 1890s by taking over some colonies earlier held by Spain.

Rinderpest or the cattle plague
In Africa, in the 1890s, a fast-spreading disease of cattle plague or rinderpest had a terrifying impact on people’s livelihood and the local economy.
Historically, Africa had abundant land and a relatively small population. For centuries, land and livestock sustained African livelihoods and people rarely worked for a wage. In late-nineteenth-century Africa there were few consumer goods that wages could buy. 
In the late nineteenth century, Europeans were attracted to Africa due to its vast resources of land and minerals. Europeans came to Africa hoping to establish plantations and mines to produce crops and minerals for export to Europe. But there was an unexpected problem - a shortage of labour willing to work for wages.

Methods to recruit and retain labour. 
1.    Heavy takes were imposed which could be paid only by working for wages on plantations and mines. 
2.    Inheritance laws were changed so that peasants were displaced from land: only one member of a family was allowed to inherit land, as a result of           which the others were pushed into the labour market. 
3.    Mineworkers were also confined in compounds and not allowed to move about freely.
       Rinderpest arrived in Africa spread of rinder pest was carried by infected cattle imported from British Asia to feed the Italian soldiers invading                    Eritrea   in East Africa. Entering Africa in the east, rinderpest moved west ‘like forest fire’, reaching Africa’s Atlantic coast in 1892. It reached the              Cape (Africa’s southernmost tip) five vears later. Along the way rinderpest killed 90 per cent of the cattle. 

 Impact of coming of Rinderpast
1.    The loss of cattle destroyed African livelihoods. 
2.    Planters, mine owners in colonial governments now successfully monopolised what scarce cattle resources remained, to strengthen their power and to force  Africans into the labour market. 
3.    Control over the scarce resource of cattle enabled European colonisers to conquer and subdue Africa.

Indentured labout migration from India
In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world. In India, indentured labourers were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation. 
Most Indian indenture workers came from the present-day regions of eastern Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu.

Causes for Migration of Workers 
1.    In the mid-nineteenth century these regions experienced many changes - cottage industries declined, land rents rose, lands were cleared for mines and plantations. 
2.    All this affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work.
3.    Many migrants agreed to take up work hoping to escape poverty or oppression in their home villages.
4.    Agents also tempted the prospective migrants by providing false information about final destinations, modes of travel, the nature of the work living and working conditions. 
5.    Often migrants were not even told that they were to embark on a long sea voyage. Sometimes agents even forcibly abducted less willing migrants. 
The main destinations of Indian indentured migrants were the Caribbean islands (mainly Trinidad, Guyana and Surinam), Mauritius and Fiji. Closer home, to Ceylon and Malaya. 

Ways of surviving by worker. 
1.    Many of them escaped into the wilds, though if caught they faced severe punishment.
2.    Others developed new forms of individual and collective self- expression, blending different cultural forms, old and new. In Trinidad the annual Muharram procession was transformed into a riotous carnival called ‘Hosay’ (for Imam Hussain) in which workers of all races and religions joined. 
3.    Similarly, the protest religion of Rastafarianism (made famous by the Jamaican reggae star Bob Marley) is also said to reflect social and cultural links with Indian migrants to the Caribbean. 
4.    ‘Chutney music’, popular in Trinidad and Guyana, is another creative contemporary expression of the post-indenture experience.

Indian entrepreneurs Abroad
1.    Shikaripuri shroffs and Nattukottai Chettiars. They were amongst the many groups of bankers and traders who financed export agriculture in Central and Southeast Asia, using either their own funds or those borrowed from European banks. They had a sophisticated system to transfer money over large distances, and even developed indigenous forms of corporate organisation.
2.    Hyderabadi Sindhi traders, however, ventured beyond European colonies. From the 1860s they established flourishing emporia at busy ports worldwide, selling local and imported curios to tourists whose numbers were beginning to swell, thanks to the development of safe and comfortable passenger vessels.

Indian trade, colonialsim and the global system
1.    Historically, fine cottons produced in India were exported to Europe. With industrialisation, British cotton manufacture began to expand, and industrialists pressurised the government to restrict cotton, imports and protect local industries. Tariffs were imposed on cloth imports into Britain. Consequently, the inflow of fine Indian cotton began to decline.
2.    From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth. Excluded from the British market by tariff barriers, Indian textiles now faced stiff competition in other international markets. 

While exports of manufactures declined rapidly, export of raw materials increased equally fast. 
    1.    Between 1812 and 1871, the share of raw cotton exports rose from 5 per cent to 35 per cent 
    2.    Indigo used for dyeing cloth was another important export for many decades.
    3.    Opium shipments to China- grew rapidly from the 1820s to become for a while India’s single largest export. Britain grew opium in India and exported it to China with the money earned through this sale, it financed its other imports from China.
Food grain and raw material exports from India to Britain and  the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India. 
Thus Britain had a ‘trade surplus’ with India. Britain used this to balance its trade deficits with other countries- that is, with countries from which Britain was importing more than it was selling to.
This is how a multilateral settlement system works it allows one country’s deficit with another country to be settled by its surplus with a third country.
Britain’s trade surplus in India also helped pay the so-called ‘home charges’ that included private remittances home by British officials and traders, interest payments on India’s external debt, and pensions of British officials in India.

Illustration 6
Which were the two groups of I world war name the countries of those groups?
Solution
The two groups of the I world war were the Allies and the central powers.
 The Allies ⟶ Britain, France and Russia (later joined by U.S.)
Central Powers ⟶ Germany, Austria-Hungry and Ottoman Turkey.

Illustration 7
What was the impacts of I world war on the European Economy?
Solution
    (i)     This was used weapons and Ammunition product in industries which increased the weapon industrialisation on modern lines.
    (ii)     It reduced the able bodied workforce in Europe.
    (iii)     Household income declined because of low number of family members.
    (iv)     The position of women improved in economy.
    (v)    Many fighting countries borrowed funds from developed countries.

Illustration 8
What was ‘Assembly line’ adopted by Henry Ford?
Solution
Production of goods by different persons at different points so that they become expert of the job. That enabled the company to produce goods faster.

Illustration 9
What was the time duration of the great depression.
Solution
It began around 1929 and lasted till 1930’s.

The nineteenth century (1815-1914)    
Economists identify three types of movement or ‘flows’ within international economic exchanges. 
    1.    The first is the flow of trade which  nineteenth century referred largely to trade in goods (e.g., cloth or wheat). 
    2.    The second is the flow of labour - the migration of people in search of employment. 
    3.    The third is the movement of capital for short-term or long-term investments over long distances.

 A world economy takes shape
Population growth from the late eighteenth century had increased the demand for food grains in Britain. As urban centres expanded and industry grew, the demand for agricultural products went up, pushing up food grain prices.
Under pressure from land owner groups, the government also restricted the import of corn. The laws allowing the government to do this were commonly known as the ‘Corn Laws’.
    After the Corn Laws were scrapped because of high prices of grains.
    1.    Food could be imported into Britain more cheaply than it could be produced within the country.
    2.    British agriculture was unable to compete with imports. Vast areas of land were now left uncultivated,
    3.    Thousands of men and women were thrown out of work. They flocked to the cities or migrated overseas.
As food prices fell, consumption in Britain rose. From the mid-nineteenth century, faster industrial growth in Britain also led to higher incomes, and therefore more food imports. 
    1.    Railways were needed to link the agricultural regions to the ports.
    2.    New harbours had to be built and old ones expanded to ship the new-cargoes. 
    3.    People had to settle on the lands to bring them under cultivation. This meant building homes and     settlements. 
    4.    All these activities in turn required capital, and labour. Capital flowed from financial centres such as London. 
    5.    The demand for labour in places where labour was in short supply - as in America and 
Australia -led to more migration.

India
In West Punjab the British Indian government built a network of irrigation canals to transform 
semi-desert wastes, into fertile agricultural lands that could grow wheat and cotton for export. The Canal Colonies, as the areas irrigated by the new canals were called, were settled by peasants from other parts of Punjab.
Of course, food is merely an example. A similar story can be told for cotton, the cultivation of which expanded worldwide to feed British textile mills or the crop of rubber. 

Role of technology
Technological advances were the result of larger social, political and economic factors. For example, colonisation stimulated new investments and improvements in transport: faster railways, lighter wagons and larger ships helped move food more cheaply and quickly from far away farms to final markets.
The trade in meat offers a good example of this connected process. Till the 1870s, animals were shipped live from America to Europe and then slaughtered when they arrived there. But live animals took up alot of ship space. Many also died in voyage, fell ill, lost weight, or became unfit to eat. Meat was hence an expensive luxury beyond the reach of the European poor. 

After refregerated ships
Now animals were slaughtered for food at the starting point - in America, Australia or New Zealand - and then transported to Europe as frozen meat. This reduced shipping costs and lowered meat prices in Europe. The poor in Europe could now consume a more varied diet. To the earlier monotony of bread and potatoes many, though not all, could now add meat (and butter and eggs) to their diet. Better living conditions promoted -social peace within the country and support for imperialism abroad.

Late Nineteenth-century colonialism
Darker Side of Economic Expansion
1.    In many parts of the world, the expansion of trade and a closer relationship with the world economy also meant a loss of freedoms and livelihoods. 
2.    Late-nineteenth -century European conquests produced many painful economic, social and ecological changes
3.    Rival European powers in Africa drew up the borders demarcating their respective territories. In 1885 the big Europen powers met in Berlin to                   complete the carving up of Africa between them.
4.    Britain and France made vast additions to their overseas territories in the late nineteenth century. 
5.    Belgium and Germany became new colonial powers. 
6.    The US also became a colonial power in the late 1890s by taking over some colonies earlier held by Spain.

Rinderpest or the cattle plague
In Africa, in the 1890s, a fast-spreading disease of cattle plague or rinderpest had a terrifying impact on people’s livelihood and the local economy.
Historically, Africa had abundant land and a relatively small population. For centuries, land and livestock sustained African livelihoods and people rarely worked for a wage. In late-nineteenth-century Africa there were few consumer goods that wages could buy. 
In the late nineteenth century, Europeans were attracted to Africa due to its vast resources of land and minerals. Europeans came to Africa hoping to establish plantations and mines to produce crops and minerals for export to Europe. But there was an unexpected problem - a shortage of labour willing to work for wages.

Methods to recruit and retain labour. 
1.    Heavy takes were imposed which could be paid only by working for wages on plantations and mines. 
2.    Inheritance laws were changed so that peasants were displaced from land: only one member of a family was allowed to inherit land, as a result of           which the others were pushed into the labour market. 
3.    Mineworkers were also confined in compounds and not allowed to move about freely.
       Rinderpest arrived in Africa spread of rinder pest was carried by infected cattle imported from British Asia to feed the Italian soldiers invading                    Eritrea   in East Africa. Entering Africa in the east, rinderpest moved west ‘like forest fire’, reaching Africa’s Atlantic coast in 1892. It reached the              Cape (Africa’s southernmost tip) five vears later. Along the way rinderpest killed 90 per cent of the cattle. 

 Impact of coming of Rinderpast
1.    The loss of cattle destroyed African livelihoods. 
2.    Planters, mine owners in colonial governments now successfully monopolised what scarce cattle resources remained, to strengthen their power and to force  Africans into the labour market. 
3.    Control over the scarce resource of cattle enabled European colonisers to conquer and subdue Africa.

Indentured labout migration from India
In the nineteenth century, hundreds of thousands of Indian and Chinese labourers went to work on plantations, in mines, and in road and railway construction projects around the world. In India, indentured labourers were hired under contracts which promised return travel to India after they had worked five years on their employer’s plantation. 
Most Indian indenture workers came from the present-day regions of eastern Uttar Pradesh, Bihar, central India and the dry districts of Tamil Nadu.

Causes for Migration of Workers 
1.    In the mid-nineteenth century these regions experienced many changes - cottage industries declined, land rents rose, lands were cleared for mines and plantations. 
2.    All this affected the lives of the poor: they failed to pay their rents, became deeply indebted and were forced to migrate in search of work.
3.    Many migrants agreed to take up work hoping to escape poverty or oppression in their home villages.
4.    Agents also tempted the prospective migrants by providing false information about final destinations, modes of travel, the nature of the work living and working conditions. 
5.    Often migrants were not even told that they were to embark on a long sea voyage. Sometimes agents even forcibly abducted less willing migrants. 
The main destinations of Indian indentured migrants were the Caribbean islands (mainly Trinidad, Guyana and Surinam), Mauritius and Fiji. Closer home, to Ceylon and Malaya. 

Ways of surviving by worker. 
1.    Many of them escaped into the wilds, though if caught they faced severe punishment.
2.    Others developed new forms of individual and collective self- expression, blending different cultural forms, old and new. In Trinidad the annual Muharram procession was transformed into a riotous carnival called ‘Hosay’ (for Imam Hussain) in which workers of all races and religions joined. 
3.    Similarly, the protest religion of Rastafarianism (made famous by the Jamaican reggae star Bob Marley) is also said to reflect social and cultural links with Indian migrants to the Caribbean. 
4.    ‘Chutney music’, popular in Trinidad and Guyana, is another creative contemporary expression of the post-indenture experience.

Indian entrepreneurs Abroad
1.    Shikaripuri shroffs and Nattukottai Chettiars. They were amongst the many groups of bankers and traders who financed export agriculture in Central and Southeast Asia, using either their own funds or those borrowed from European banks. They had a sophisticated system to transfer money over large distances, and even developed indigenous forms of corporate organisation.
2.    Hyderabadi Sindhi traders, however, ventured beyond European colonies. From the 1860s they established flourishing emporia at busy ports worldwide, selling local and imported curios to tourists whose numbers were beginning to swell, thanks to the development of safe and comfortable passenger vessels.

Indian trade, colonialsim and the global system
1.    Historically, fine cottons produced in India were exported to Europe. With industrialisation, British cotton manufacture began to expand, and industrialists pressurised the government to restrict cotton, imports and protect local industries. Tariffs were imposed on cloth imports into Britain. Consequently, the inflow of fine Indian cotton began to decline.
2.    From the early nineteenth century, British manufacturers also began to seek overseas markets for their cloth. Excluded from the British market by tariff barriers, Indian textiles now faced stiff competition in other international markets. 

While exports of manufactures declined rapidly, export of raw materials increased equally fast. 
    1.    Between 1812 and 1871, the share of raw cotton exports rose from 5 per cent to 35 per cent 
    2.    Indigo used for dyeing cloth was another important export for many decades.
    3.    Opium shipments to China- grew rapidly from the 1820s to become for a while India’s single largest export. Britain grew opium in India and exported it to China with the money earned through this sale, it financed its other imports from China.
Food grain and raw material exports from India to Britain and  the rest of the world increased. But the value of British exports to India was much higher than the value of British imports from India. 
Thus Britain had a ‘trade surplus’ with India. Britain used this to balance its trade deficits with other countries- that is, with countries from which Britain was importing more than it was selling to.
This is how a multilateral settlement system works it allows one country’s deficit with another country to be settled by its surplus with a third country.
Britain’s trade surplus in India also helped pay the so-called ‘home charges’ that included private remittances home by British officials and traders, interest payments on India’s external debt, and pensions of British officials in India.

Illustration 6
Which were the two groups of I world war name the countries of those groups?
Solution
The two groups of the I world war were the Allies and the central powers.
 The Allies ⟶ Britain, France and Russia (later joined by U.S.)
Central Powers ⟶ Germany, Austria-Hungry and Ottoman Turkey.

Illustration 7
What was the impacts of I world war on the European Economy?
Solution
    (i)     This was used weapons and Ammunition product in industries which increased the weapon industrialisation on modern lines.
    (ii)     It reduced the able bodied workforce in Europe.
    (iii)     Household income declined because of low number of family members.
    (iv)     The position of women improved in economy.
    (v)    Many fighting countries borrowed funds from developed countries.

Illustration 8
What was ‘Assembly line’ adopted by Henry Ford?
Solution
Production of goods by different persons at different points so that they become expert of the job. That enabled the company to produce goods faster.

Illustration 9
What was the time duration of the great depression.
Solution
It began around 1929 and lasted till 1930’s.