Chapter 3 - The Making of a Global World
Globalization refers to the integration of markets into the global economy, increasing the interconnectedness of national economies. By understanding the history of globalization, students can accurately understand the reasons that led to these social and economic changes. The industrial revolution of the 19th century was one of the key periods in the history of globalization. History Chapter 3 - Making a Global World Describes the impact of globalization on the Indian economy as well as the world. This Vidyakul CBSE Class 10 History Notes for Chapter 3 helps students get an overview of all the concepts. By referring to these notes, students can remember all the main topics of the chapter and quickly skim through the entire section.
Pre-Modern World
Globalization refers to the economic system that has emerged over the past 50 years or so. But the creation of a global world has a long history of trade, migration, people looking for jobs, and the movement of capital. Since ancient times, travelers, merchants, priests, and pilgrims have traveled long distances in search of knowledge, opportunity, spiritual fulfillment, or escape from persecution. Already 3000 BC. Brisk coastal trade linked the civilizations of the Indus Valley to modern western Asia.
Silk Road Connecting the World
Silk Road is a prime example of the bustling pre-modern trade and cultural links between distant parts of the world. Historians have identified several Silk Roads, both land and sea, linking vast areas of Asia and linking Asia with Europe and North Africa. Precious metals such as gold and silver flowed from Europe to Asia in return for India's textiles and prospects.
Food Travel: Spaghetti and Potatoes
Food provides many examples of cultural exchange from afar. New crops were introduced by traders and travelers. Prepared foods such as noodles migrated west from China and became spaghetti. About 500 years ago, our ancestors were unfamiliar with common foods such as potatoes, beans, peanuts, corn, tomatoes, chili peppers, and sweet potatoes.
Conqueration, Disease and Trade
Centuries ago the Indian Ocean was a thriving trade of goods, people, knowledge, and customs. America's vast lands and bountiful mineral harvests began to transform commerce and life everywhere. The mid-16th century saw the Portuguese and Spanish conquests and the colonization of the Americas firmly underway.
The most powerful weapon of the Europeans was not their regular military weapons, but the germs they carried with them, such as the smallpox virus. He turns out to be a lethal killer. Poverty and famine were rampant in Europe until the 19th century. Until the 18th century, China and India were the richest countries in the world. However, since the 15th century, China is said to have been isolated with limited contact with the outside world. Europe became the center of world trade.
19th Century (1815-1914)
In the 19th century, economic, political, social, cultural, and technological factors interacted in complex ways to transform society and transform external relationships. Economists have identified three streams or movements.
The first is the trade flow, mainly related to trade in commodities (eg cloth or wheat). The second workforce is those who migrate in search of work. The third is the long-distance movement of capital for short-term or long-term investments.
Shaping the World Economy
In the 19th century, food self-sufficiency meant low living standards and social conflict in England. This has occurred due to population growth since the end of the 18th century. Grain laws were introduced that restricted grain imports. Britain's agriculture could not compete with imports, and vast areas of land were left uncultivated. Thousands of men and women flocked to cities or emigrated abroad.
Food prices fell in the British Empire, and industrial growth in the mid-nineteenth century increased incomes and increased food imports. The land was cleared in Eastern Europe, Russia, the United States, and Australia to expand food production to meet British demand. Connecting railroads with farmland and building housing for people requires capital and labor.
London helped in terms of finance and terms of labor people emigrated from Europe to America and Australia in the nineteenth century.
By 1890, a global agricultural economy had taken shape, adapting to complex changes in labor movement patterns, capital flows, ecologies, and technology. In West Punjab, the British Indian government built a network of irrigation canals to transform semi-desert wastes into fertile agricultural lands to grow wheat and cotton for export. Even the cultivation of cotton, expanded worldwide to feed British textile mills.
Role of Technology
Some of the important inventions in the field of technology are the railways, steamships, the telegraph, which transformed the nineteenth-century world. However, technological advances have often been the result of larger social, political, and economic factors.
For example, colonization has spurred new investments and improvements in transportation. Faster railroads, lighter wagons, and larger ships helped transport food cheaper and faster from distant farms to final markets. Animals also made their way from America to Europe until the 1870s. Meat was considered an expensive luxury, inaccessible to the poor in Europe. To break the old monotony of bread and potatoes, many people can now add meat (as well as butter and eggs) to their diet.
Late 19th Century Colonialism
In the late 19th century, trade flourished and markets expanded. However, there is a dark side to this. Because in many parts of the world, increased trade and closer ties to the global economy have meant a loss of freedom and livelihoods. In 1885, the major European powers met in Berlin to finalize the division of Africa. Britain and France greatly expanded their overseas territories. Belgium and Germany became the new colonial powers.
Rinderpest spread rapidly in Africa in the 1890s, affecting people's livelihoods and local economies. Africa was a vast land and relatively sparsely populated. At the end of the 19th century, Europeans were attracted to Africa because of its vast land and mineral resources.
Europeans arrived in Africa to build plantations and mines to produce crops and minerals for export to Europe. However, an unexpected problem arose. There was not enough manpower to work for a wage. Inheritance laws were changed so that only one person in a family could inherit land. In the late 1880s, rook disease arrived in Africa with infected cattle imported from British Asia to feed Italian soldiers who invaded Eritrea in East Africa. The loss of livestock has devastated the livelihoods of Africans.
Contract Labor Migration from India
Contract labor shows the ambivalence of the 19th century world. A world of faster economic growth and great suffering, higher incomes for some, poverty for others, technological advances in some areas and new forms of coercion in others. In India, long-term contract workers were employed, most of them from the arid regions of present-day eastern Uttar Pradesh, Bihar, central India, and Tamil Nadu. The main destinations were the Caribbean (mainly Trinidad, Guyana and Suriname), Mauritius and Fiji. Long-term contract workers are also employed on tea plantations in Assam. The 19th century treaty has been described as "the new slavery". In Trinidad, the annual Muharram procession was turned into a raucous festival called Hosai, in which workers of all races and religions joined. Similarly, the protest religion of Rastafarianism is also said to reflect social and cultural links with Indian migrants to the Caribbean. From the 1900s India’s nationalist leaders began opposing the system of indentured labour migration as abusive and cruel. It was abolished in 1921.
Indian Entrepreneurs Abroad
People need huge capital to grow food and other crops for the world market. So, for the humble peasant Shikaripuri shroffs and Nattukottai Chettiars 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.
India Trade, Colonialism and the Global System
Indian cotton was exported to Europe. In England, tariffs were levied on imports of textiles. As a result, the inflow of premium Indian cotton began to decline. During the 19th century British manufacturers flooded the Indian market. By helping Britain balance its deficit, India played an important role in the world economy in the late 19th century. Britain's trade surplus with India also helped pay so-called "house fees" which included transfers of British officials and merchants' personal funds, payment of interest on India's foreign debt, and pensions of British officials in India.
Interwar Economics
World War I (1914-1918) was fought in Europe, but its effects were felt all over the world. During this time, the world experienced widespread economic and political instability and another devastating war.
Wartime Transition
World War I was fought between allies Britain, France, and Russia (later joined by the United States). Central Powers - Germany, Austria-Hungary, Ottoman Turkey. The war lasted more than four years and involved the world's major industrial powers. This was considered the first modern industrial warfare to use machine guns, tanks, aircraft, chemical weapons, and more. on a large scale. During the war, industry was reorganized to produce munitions. Britain borrowed heavily from American banks and the American population, turning the United States from an international debtor into an international creditor.
Post-War Renaissance
Post-war Economic Renaissance Britain, one of the world's leading economic powers, faced a long-term crisis. While Britain was preoccupied with the war, industry developed in India and Japan. After the war, Britain found it difficult to regain its former dominance in the Indian market and compete with Japan internationally. By the end of the war, Britain was under heavy foreign debt. Anxiety and job insecurity became an integral part of the post-war scenario.
Increase in Mass Production and Consumption
The US economy resumed a faster recovery and stronger growth in the early 1920s. Mass production is one of the important features of the American economy, which began at the end of the 19th century. Henry Ford is a famous mass-production pioneer who founded an automobile plant in Detroit. The TModel Ford was the world's first production car. Ford's industrial methods soon spread to the United States and were copied in Europe in the 1920s. Demand for refrigerators, washing machines, etc. also skyrocketed, again financed by loans. In 1923, the United States resumed exporting capital to the rest of the world and became the largest foreign creditor.
Great Depression
The Great Depression period began around 1929 and lasted until the mid-1930s, and most parts of the world experienced catastrophic declines in production, employment, income, and trade. The areas most affected were agricultural areas and communities. A combination of factors have contributed to depression. The first factor is agricultural overproduction and the second factor is the mid-1920s. Many countries have financed their investments with US loans. The rest of the world affects U.S. loan withdrawals in various ways. The United States has also been hit hard by the recession. Unfortunately, the US banking system collapsed, with thousands of banks failing and closing.
India and the Great Depression
Indian trade was hit hard by the Great Depression. Produce prices plummeted, but the colonial government nevertheless refused to lower tax requirements. During that recession, India became an exporter of precious metals, particularly gold.
World Economic Recovery: The Postwar Era
Twenty years after the end of World War I, World War II broke out. It was fought between the Axis Powers (mainly Nazi Germany, Japan, and Italy) and the Allied Powers (Great Britain, France, the Soviet Union, and the United States). The war lasted six years on land, at sea and in the air. The war caused enormous economic destruction and social upheaval. Post-war reconstruction was shaped by two decisive factors. First, the United States has become the dominant economic, political, and military power in the Western world. Second, Soviet domination.
Postwar Accords and the Bretton Woods Islands
Two key lessons have been learned from the economic experience between World Wars. First, mass production is impossible without mass communication. The second lesson concerns the economic relationship between the state and the outside world. The Bretton Woods conference established the International Monetary Fund (IMF) to deal with member countries' external surpluses and deficits. The International Bank for Reconstruction and Development, also known as the World Bank, was established to finance post-war reconstruction. The IMF and the World Bank started their financial operations in 1947.
Early post-war
The Bretton Woods Treaty ushered in an era of unprecedented growth in trade and imports for the developed countries of the West and Japan. During this decade, technology and business have spread all over the world.
Decolonization and Independence
After World War II ended, many parts of the world were still under European colonial rule. The IMF and World Bank were created to meet the financial needs of developed countries. Beginning in the late 1950s, the IMF and World Bank shifted their focus to developing countries. Most developing countries did not benefit from the rapid growth of Western economies in the 1950s and 1960s. They organized into a group called the Group of 77 (or G-77) and called for a New International Economic Order (NIEO). NIEO meant a system that would give them real control over their natural resources, more development assistance, fairer prices for raw materials, and better access for their manufactured goods in developed countries’ markets.
End of Bretton Woods and the Beginning of ‘Globalisation’
The US’s finance and competitive strength were weakened due to rising costs of its overseas involvements from the 1960s. In the mid-1970s the international financial system also changed and the industrial world was also hit by unemployment. MNCs began to shift their production to low-wage Asian countries. China became attractive destinations for investment by foreign MNCs. In the last two decades, the world’s economic geography has been transformed as countries such as India, China and Brazil have undergone rapid economic transformation.
Frequently asked Questions on CBSE Class 10
What are the benefits of ‘globalisation’?
- 1. Access to foreign cultures
- 2. Technological innovation
- 3. Improved living standards
- 4. Emergence of new talent
- 5. Higher standards of living
What are the ‘main elements of globalisation’?
Principle elements of globalisation are:
- 1. International trade
- 2. Foreign investment
- 3. Capital market flows
- 4. Labor migration
- 5. Diffusion of technology
What are the ‘different types of globalisation’?
Political, economic and cultural globalisation are the main types of globalisation.
