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Lecture notes, cheat sheets
History of Economics. The beginning of colonialism, the birth of capitalism and industry (lecture notes)
Directory / Lecture notes, cheat sheets Table of contents (expand) LECTURE No. 8. The beginning of colonialism, the birth of capitalism and industry 1. Beginning of colonialism Geographical discoveries favorable to Europeans turned into veritable hell for the indigenous population of the open lands. Colonialism became the method of functioning of the world economy. The main means of colonialism in the 16th century. an unequal exchange occurred (if direct robbery could not be used). The monopoly right to supply African slaves to Spanish America (asiento) was disputed by Portugal, England, and Holland. The slave trade was essentially a method of re-exploiting the vast Spanish colonies. But this was not the only method. Holland, England and France developed piracy on a large scale. Gradually, the main principle of the colonial economy of European countries was established: the export of cheap raw materials and food, the import of manufactured goods, and then capital (using cheap colonial labor). Compradors - local merchants who sell and resell export-import goods - became the main force in the colonies. 2. The birth of capitalism in Western Europe At that time, very serious technical and economic changes were taking place in Europe. The demand for bread, woolen fabrics and metals increased sharply, mainly associated with radical changes in military organization that followed the use of firearms and the creation of massive standing armies in Western Europe. In metalworking, water-driven forging hammers, the simplest types of lathes, drilling and grinding machines, etc. began to be used. The mining industry was equipped with sump pumps and lifts, production increased, and mines deepened. When using new technologies, serviced by hired labor, the volume of production was determined not by shop rules, but only by the demand for manufactured products. For this, two conditions were needed: 1) so that future entrepreneurs accumulate enough money to buy equipment, hire workers and build buildings; 2) so that the workers are free and do not have their own farm, that is, they are hired by enterprises under purely economic coercion. 3. The primitive accumulation of capital in England Accumulating money required entrepreneurs to be thrifty. The freedom of future workers was often achieved through violence - the expulsion of peasants from the land, from the means of production. By the 3th century England was a small, typical agricultural country with a population of 3,5-4 million people (XNUMX times less than in France). The merchant fleet was much inferior to the Dutch, and the urban workshop industry was less developed than on the continent. It was the XNUMXth century. marked the beginning of a sharp economic recovery, thanks to which, three centuries later, England became the industrial hegemon of the world. This is primarily due to the powerful development of cloth factories. Since the XNUMXth century the production of cloth and woolen fabrics is developing within the country, in contrast to the fact that in the XIII-XIV centuries. English raw wool was exported to the continent for processing. Sheep farming became extremely profitable and the demand for wool increased. It was necessary to free the land from small peasant farms to expand pastures, fencing off new holdings with ditches, fences, and palisades. The state borrowed money from English merchants at high interest rates, as it was constantly in need of funds for the war. Taxpayers paid the national debt, but the interest was received by merchants who opened enterprises with these funds. In addition, in the XVI-XVII centuries. England introduced high duties on the import of finished goods. Such protectionism allowed entrepreneurs to maintain high prices for their goods. As a result, in England by the end of the 18th century. enormous wealth accumulated at that time - about one million pounds of precious metals. 4. Origin of industry in Russia In the 17th century In Russia, a “slow” Westernization of the armed forces and everyday life was taking place. When at the turn of the XVII-XVIII centuries. a regular navy and a land army were created, the state organized the first military-industrial complex, consisting of a number of manufactories (shipbuilding, canvas production, metallurgy and metalworking, etc.), to serve it. Recruits and serf boys surrendered by rural communities and landowners served in the army and navy, and assigned or serf (possession) workers worked in the enterprises. In other words, Westernization took place in an unfree social environment. The military-industrial complex, based on unfree industry, could not overcome technical backwardness. Having brought many great victories to Russia, he was powerless in the Crimean War, where the metal steam fleet of the West and the rifled and smoothbore weapons and wooden sailing fleet of Russia collided. Why didn't Russia rearm its army in the first half of the 19th century? The point was the psychological intoxication of the position of a superpower, but most importantly - the serf economy, the restructuring of which the Russian elite did not want. 5. The Industrial Revolution in England At the end of the 17th century. In England, after the revolution, a bourgeois-democratic political system was established, which still exists in our time. England itself, which won the struggle for supremacy of the seas in the 16th century. Spain, in the 17th century. - Holland, in the 18th century. - France has become a world superpower. The discrepancy between manual technology and the increased demand for cotton fabrics was resolved by the introduction of machines. First, the cotton spinning process was mechanized. Since there was more yarn, a mechanical loom was urgently needed, which was invented by E. Cartwright in 1785. After the mechanization of spinning and weaving, the need arose to create a universal engine that does not depend on the forces of nature. Such an engine was a steam engine created by J. Watt in 1784. In the same year, the first steam spinning mill was built. The use of machines caused a sharp increase in demand for metal. In 1784, Cort invented a puddling furnace, which, using mineral fuel, produced steel from cast iron, and the rolling rollers he invented made it possible to produce metal products of the desired configuration. Thanks to these inventions, labor productivity increased 15 times. The progress of metallurgy contributed to the rapid development of the English coal industry. Railroads (trams) for horse-drawn coal transportation appeared in the mines. The combination of the steam engine and rails produced the railroad. The first locomotive was created by J. Stephenson in 1814, and the railway in 1824. One of the last problems of the industrial revolution was the factory construction of the machines themselves: a new branch of industry arose - mechanical engineering. This was facilitated by the creation of the main type of metal-cutting machines - planing (Bram, 1802 and G. Modeme, 1798). The creation of factory mechanical engineering completed a revolution in the technological sphere of the English economy. The most vulnerable point of the English economy was its dependence on grain imports. According to the "corn" laws of 1815, the import of grain into the country was allowed only if the domestic price exceeded 82 shillings per quarter. The Corn Laws, hated by the English people, were repealed in 1846. The repeal of the Corn Laws formed the basis of a new world economic policy of unlimited free trade, which became the foundation of European economic integration 100 years later. Freedom of trade helped England take a dominant position in world industry, credit, maritime transport, and trade. When in 1850 the total turnover of world trade was 14,5 billion marks, for a long time the British Empire accounted for 5,24 billion marks, and in 1870 this share was already 14 billion marks out of a total of 37,5 billion marks (the total share of Germany, the USA, and France during this time increased from 4,9 to 12,0 billion marks). The Bank of England is gradually becoming a “bank of banks,” lending not only to trade and industry, but to the entire credit system of the country and even the world. 6. Features of capitalism in France The completion of the industrial revolution occurred in France in the 1860s, much later than in England. The industrial revolution was not helped by French foreign policy. Napoleon's continental blockade of England had dire economic consequences for French industry. The end of the industrial revolution in France took place already in 1850-1860. The Empire of Napoleon III, which pursued an active foreign policy, widely provided special credit for the development of heavy industry. From 1850 to 1870 the number of steam engines in French industry increased from 5 to 25 thousand, iron production - from 0,4 million tons to 1,2 million tons, coal mining - from 4,4 to 13,2 million tons, railway network - from 3 to 18 thousand km. At the World Exhibition in London in 1851, French technology took second place after English. Until the end of the 19th century. France's foreign trade (the basis of exports is wine, furniture, silks, leather, paints, perfumes and jewelry, all of which had no equal in quality on the world market) was second only to England in terms of turnover. By the end of the 19th century. In terms of the pace of industrial development, France was no longer lagging behind not only England, but also the USA and Germany. French capital responded to the deterioration of its position in the industrial world by increasing activity in the field of loans and international credits. 7. The rise of capitalism in Germany In Germany only in the second half of the 19th century. the creation of the capitalist industrial machine took place. The main reason for Germany's lag was the longer absence of a unified state and the dominance of feudalism than in other Western European states. In Germany, the transition from a feudal to a bourgeois social system was much slower than in France and England. State reforms did not eliminate either the land ownership of the feudal nobility (junkers) or the feudal monarchy. Lacking powerful, convenient ports, Germany was virtually isolated from maritime trade routes. Located in the center of Europe, in the first half of the 1830th century, as an agricultural country, it played the role of a large appendage of industrial capitalist countries - Holland, England and even France. The introduction of the first steam engines in German industry began only in 1840-XNUMX, but there was still no talk of an industrial revolution. The real industrialization of Germany began only in the 1860s: the total power of steam engines increased almost 3 times; According to this indicator, Germany was inferior to England, but ahead of France. Unlike French industry, which depended on the supply of English machines, the mechanization of German industry took place on the basis of its own mechanical engineering. At that time, the largest machine-building enterprises began to operate. The intensive development of heavy industry was greatly stimulated by the preparation of the armed forces of Prussia, the most powerful German state, for the struggle for the subjugation of all of Germany and for war with France. In this regard, the strongest military-industrial complex in Europe was created, where Krupp artillery factories played a special role. Industrialization was followed by a restructuring of German foreign trade. Only for the 1850s. the volume of German exports increased by more than 2,5 times, and imports by 2 times. In German exports, instead of agricultural products, finished industrial goods began to predominate: cotton and woolen fabrics, metal products, ready-made clothing, leather goods, sugar, etc., and in imports, on the contrary, agricultural products and raw materials, metal ores, etc. Already in the second half of the 19th century. From an agricultural appendage of industrial England, Germany turned into its competitor. Agrochemicals and machines replaced serfs. Germany took first place in the world in the collection of sugar beets and potatoes and the development of food industrial production - sugar, alcohol and starch. Having retained its economic potential, the Junkers also retained their dominant position in the political system of the German monarchy (officer corps, state apparatus, etc.). German capitalism was openly militaristic and clearly aggressive. 8. The beginning of capitalism in the USA The territory of the North American continent in the 17th century. became an English settler colony. The bulk of North American emigrants were workers who fled from the arbitrariness of the authorities and religious persecution. A peculiar complex developed in the coastal areas, where the production of alcoholic beverages flourished, especially rum from molasses from the West Indies. American merchants exported rum to Africa to drink black leaders, who sold them their subjects for next to nothing. They were taken to America and resold to planters. With the proceeds, molasses was again bought from the West Indies. This is how the trade “triangle” functioned without empty flights - molasses, rum, slaves. Railroads played an important role during the industrial revolution in the United States. In 20 years, from 1830 to 1850, there was a more than 300-fold increase in the railway network. In 1807, a steamboat was already sailing along the Hudson River. One of the features of the industrial revolution in the USA was the active participation of domestic engineering (the main inventions of the mid-19th century - the Colt revolver, the Singer sewing machine, the rotary printing machine, the Morse electromagnetic telegraph - changed people's lives in many ways), as well as the rapid development of agricultural engineering, caused by the needs of free farming. After the Civil War, American industry, which received a capacious domestic market, took a very big step forward. By the 1870s US industry took second place in the world (after England). No country has ever known such rapid rates of industrial development as the United States showed after the Civil War, and, above all, in the field of mechanical engineering. After the Vienna World Exhibition of 1873, it became clear to the world that the United States was already superior to England in industrial and technical competition. In 1880, the value of gross industrial output in the United States was 2,5 times that of the agricultural industry. 9. Industrial capitalism in Japan In Japan, the result of the Meiji Revolution was the creation of a bourgeois-landlord state interested in implementing economic reforms in the country. The new system of government demonstrated the highest efficiency of functioning, which was manifested by: 1) in resolving internal political issues (a combination of elected legislative and feudal-estate executive authorities), consolidation of all segments of the population; 2) in the state construction of metallurgical and mechanical engineering industries, equipping them with modern equipment (purchased abroad); 3) in uniting the backward and economically fragmented regions of the country; 4) in the use of the national patriotic tradition; 5) in the creation of training (also abroad) of national engineering personnel; 6) in creating an effective economic mechanism for leasing state property. Japanese capitalists, having created modern industry, preserved many of the traditions of Japanese feudalism, which did not know serfdom and governed by the methods of paternalism - a protective attitude towards its subjects. Similar relationships were transferred to industrial enterprises and found expression in the training of enterprise employees in company schools and even universities, and in the provision of discounts for employees in company-owned residential buildings and stores. All this ensured lifelong employment of workers and their special loyalty to the employer. This social method still plays an important role in the rapid economic development of Japan. 10. Main trends in the development of the world capitalist economy at the turn of the XNUMXth and XNUMXth centuries Late XIX - early XX centuries. - this is the period of the second scientific and technological revolution, marked by such achievements as the advent of the steam turbine and internal combustion engine, the industrial use of electric current, industrial oil refining, the birth of aviation, the emergence of pipeline transport, the industrial production of new inorganic materials, the automotive industry, etc., all this caused structural changes in the economies of all industrialized countries, which manifested themselves in certain trends in the development of the world capitalist economy. 1. Capitalism has demonstrated its sensitivity to the latest scientific and technological achievements, this was expressed in the dynamic development and creation of new industries: for example, in just 8 years, Henry Ford managed to go from the creation to the industrial production of 4000 cars per year. 2. In all capitalist countries, a tendency towards consolidation was revealed (as a result of the unification of financial and industrial capital), on this basis industrial and financial monopolies emerged. 3. A trend has emerged in the militarization of the economy, which is associated with the creation of new types and types of weapons (automatic firearms, aircraft, tanks, chemical weapons, large-caliber guns, etc.) and the predominant development of industries working “for war.” 4. As a result of changes in the global industrial production of England, the share (decreased by 2,6 times), France (decreased by 2 times) and the USA (increased by 2,1 times), the center of the world economy shifted from Europe to North America. 5. In the field of industrial production, European countries compensated for the loss of leadership by expanding their colonial possessions over the period from 1880 to 1899. the size of which England increased from 7,7 to 9,3 million square meters. miles (by 20,8%), and France - from 0,7 to 3,7 million square meters. miles (5,3 times). Author: Shcherbina L.V. << Back: World market (Great geographical discoveries. World market. Reformist path of transition to a market economy in Germany. Reformist path of transition to a market economy in Russia) >> Forward: State socialism. Pricing (The emergence, development, crisis of the economic system of state socialism in the USSR and in the countries of Eastern Europe. “Directive planning” in the system of state socialism. Price revolution. Pricing “based on what has been achieved” as a mechanism for managing the progress of society. Main macroeconomic indicators of the period of stagnation. Crisis of communist ideology and the social cost of perestroika. Shifts in the structure of the economy of leading capitalist states. Various models of a mixed economy)
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