Anubha Mishra TGT S.S.T

Kendriya Vidyalaya, Berhampur

Bhubaneswar Region

• Learning Objectives

• 1} To study two different patterns of industrialisation related to one in the imperial country & another within a colony.

• 2} To show the relationship between different sectors of production.

• Concept of the lesson:

• Silk routes are a good example of Pre- modern trade and cultural links between distant parts of the world.

• Many of our common foods such as potatoes, maize, tomatoes, chillies were only introduced in Europe and Asia after the discovery of the continent of America.

• From the 16th Century abundant crops and minerals began to transform trade and lives every where.

• The European powers conquered America not by the military power but by the germ of Small pox which killed and decimated the whole community.

• In Britain, the Government with the request of landed classes restricted the import of corn through corn laws which resulted with high food prices.

• The urban dwellers and the industrialists forced the Government to abolish it.

• As a result, import of food items increased in Eastern Europe, Russia, America and Australia.

• Lands were cleared and food production expanded to meet the British demand.

• The British India Govt. also built a network of irrigation canals in west Punjab for the cultivation of wheat and cotton for export.

• As a result this area was well known as “Canal Colonies”.

• Thus by 1890 the global agricultural economy had taken place.

• Technology had played a major role in shaping the world economy during this period.

• The railways, steam engines and the telegraphs brought magical transformation in the 19th Century world.

• The refrigerated ships enabled to transport the perishable foods over a long distance.

• Animals were slaughtered for food in America, Australia, New Zealand and transported to Europe as frozen meat.

• European conquest produced many painful economic, social and ecological changes through which the colonized societies were brought into the world economy.

• The, Rinderpest, a fast spreading cattle plague arrived in Africa in the late 1880’s.

• It entered Africa in the east and reached Africa’s Atlantic coast in 1892.

• The Rinderpest, the law of inheritance forced the Africans to become the slaves and to move to other parts of the continent.

• Most Indian indentured workers went to work on plantations, in mines and road and railway construction around the world.

• The main destinations of them were Caribbean islands, Mauritius, Fiji, Ceylon, Malaya and even in Assam.

• 19th Century indentured has been described as a new system of slavery.

• Some Indian Entrepreneurs such as Shikaripuri Shroffs & Nattukottai Chattiars were amongst the many who financed export agriculture in Central and South East Asia.

• Hyderabad Sindhi traders ventured beyond European colonies.

British government imposed tariffs on cloth imports British government imposed tariffs on cloth imports into Britain and Indian cotton in flow began to into Britain and Indian cotton in flow began to decline.decline.

On the other hand Indian market was flooded with On the other hand Indian market was flooded with British manufactured goods.British manufactured goods.

Thus Britain had a trade surplus which helped pay Thus Britain had a trade surplus which helped pay the “ Home Taxes “.the “ Home Taxes “.

• During the war period of 1914- 1918 the world experienced economic and political instability.

• The scale of death and destruction in Europe during the 1st World War reduced the able bodied workforce in Europe which affected the economy of the world.

• Post war economic recovery proved difficult.• Britain was burdened with huge external debts.• Agro economy were in crisis .• Economic recovery was faster in US than in

Europe.• Britain lost its position of Pre dominance which

was acquired by the US after the war.

• One important feature of the US economy of 1920’s was Mass Production.

• The pioneer of mass production was car manufactured by Henry Ford through assembly line technique and raising the wage and work time of the workers.

This can be reflected by the This can be reflected by the following flow chart:-following flow chart:-

MORE EMPLOYMENT

MASS CONSUMPTION

OF GOODS

MASS PRODUCTION MORE INCOME

MORE SAVING

• The great depression began around 1929 and lasted till the mid 1930’s.

• During this period most parts of the world experienced catastrophic decline in production, income and trade and agriculture.

This can be expressed by the following Flow Chart :-

BUILDINGUP OF

INVENTORIES

CUT IN DEMAND

OVER PRODUCTION

OF GOODS

FALL IN PRICE

CUT IN PRODUCTION

CUT IN INVESTMENT

CUT IN EMPLOYMENT

CUT IN INCOME

FALL IN PRICES OF

AGRICULTURALPRODUCTS

MORE PRODUCTION BY FARMERSTO MAINTAIN ECONOMICAL

LEVEL

FURTHER FALL

INPRICES

FALL ININCOMES

DEPRESSION

OVER PRODUCTION IN AGRICULTURE

• Great depression also affected Indian trade.

• Between 1928-1934 wheat prices fell by 50% and Jute by 60%.

• The farmers suffered a lot but it proved less grim in urban areas.

• The Second World War caused havoc in the world.

• The main task of the Post war International Economic System was to preserve economic stability and full employment in the industrial world.

FULL EMPLOYMENT

HIGH AND STABLE

INCOME

MASS CONSUMPTION

MASS PRODUCTION

AND

RISING INCOMES

The Bretton Woods ConferenceWas Established

IMF WORLD BANK

To deal with external surplus and deficits of its member nations

To deal with the Post War Reconstruction

• The International Monetary System is the system linking national currencies and monetary system.

• It looked forward for the economic and industrial development of European countries and Japan and they quickly rebuilt their encourage.

• By the time most colonies of Asia and Africa emerged as independent nation and the IMF and World Bank turned to improve these countries.

• From the 1960’s the rising costs of its overseas involvement weakened the US finance and strength.

• Eventually it led to the collapse of the system of fixed exchange rate and the introduction of a system of floating exchange rates.

• Also the operation of this process the vital role was played by the mores of USA and the net result was paradoxical.

• This led to a growing unrest among the developing countries and they decided to form a group of 77 known as G-77 to pursue their common interest.

• They raised their demand for setting up of a New International Economic Order { NIEO }.

• This economic system came to an end giving rise to GLOBALISATION.

THE MAKING OF A

GLOBAL WORLD

• 1} In which of the following years Great Depression occurred in the world?

• A} 1929-30s B} 1935-36s• C} 1939-40s D} 1941-42s

• 2} Henry Ford was a ……………..• A} Politician B} Novelist• C} Painter D} A Pioneer of

Mass Production of Car

• 3} MNCs were attracted towards the developing countries because of………..

• A} Relatively low wage B} Higher profit motive C} Potential Natural D} None of these

Resources

4} Great Depression first began in ……….A} Russia B} FranceC} China D} USA

5} Which was the most powerful weapon used by the Spanish to conquer America?

A} Navy B} MilitaryC} Germs D} None of these

6} Name the law that allowed the British Government to restrict the import of cotton?

A} Corn Act B} Food ActC} Corn Laws D} Import Laws

• 7} A bonded labourer under contract to work for an employer for a specific amount of time:-

• A} Daily worker B} Bonded worker C} Indentured labourer D} None of these

• 8} During the 1st World War the Britain borrowed large sums of money from

• A} Russia B} Germany• C} USA D} France

• 9} Which of the following was the world’s first mass produced car?

• A} The K Model Ford B} The T Model Ford• C} The C Model Ford D} Hero Honda

• 10} What is IMF?

• A} International Money Fund

• B} International Monetary Fund

• C} International Monetary Finances

• D} Indian Monetary Fund

• 1} Explain the impact of Great Depression of 1929 on the Indian economy giving three points.

• 2} How did the food habits travel from one place to another in the process of cultural exchange?

• 3} What were Corn Laws? Why these laws were abolished?

• 4} “ Economists of the 19th Century identify three types of movements or flows within the international economic exchange”. Explain.

• 5} What methods were used by the European employers to recruit and retain the African labourers?

• 6} Why did the flow of fine Indian cotton began to decline in Britain with Industrialisation? Answer any 3 points.

• 7} How did Small Pox prove to be a deadly killer in America?

• 8} Why did demands of Food Grains increase in England in the late 18th and 19th Century?

• 9} How did silk routes link the world? Explain with 3 suitable examples.

• 1} How did Rinderpest help the European countries to conquer and subdue Africa?

• 2} Explain what is referred to as G-77 countries. In what ways been G-77 be seen as a reaction to the activities of the Bretton Woods Twins?

• 3} What was the effect of the decision of MNCs to relocate production to Asian countries?

• 4} Explain the role of technology in shaping the world economy of 19th Century.

• 5} Mention the impact of the First World War on the Agricultural economy.

• 6} “The indentured labourers had discovered their own ways of surviving”. Explain.

• 7} Read the passage and answer the questions that are given below:

• 8} “ Grow more jute, brothers, with the hope of greater cash. Costs and debts of jute will make your hopes get dashed. When you have spent all your money and got the crop off the ground…….. traders, sitting at home will pay only Rs 5 a maund.

• A} Who made the profits from jute cultivation according to the jute growers?

• B} Explain the factors which were responsible for the for the poor condition of jute cultivators.

Sl. No

Group/

Individual

Activities Items

1 Group Flow Chart Modernising Agriculture & Industries

2 Group Skit Indentured Labour

3 Group Scrap Book Transfer of Culture, Food & Life Style

4 Group Debate Is it right to have fixed exchange rates?

5 Group Debate Is biological war appropriate to conquer land?

6 individual Quiz Making of a Global World