Global ECONOMIC Changes from 1750-1900 [AP World History Review—Unit 6 Topic 4]

The Impact of Second Wave Imperialism on Global Economy

Transformation of Colonial Economies

• The second wave of imperialism significantly affected the global economy, driven by industrialized powers seeking to colonize various regions for raw materials.

• Colonized areas transitioned from subsistence farming to export economies focused on one or two cash crops or natural resources, reshaping local economies.

• Prior to colonization, many communities were self-sufficient; however, imperial powers reorganized these economies to prioritize cash crops like cotton over diverse food production.

• This shift meant that local farmers were forced to abandon their traditional practices in favor of producing goods that served the interests of the imperial powers.

Motivations Behind Economic Changes

• The primary motivation for transforming colonial economies was the need for raw materials essential for industrial factories, which were crucial for maintaining state power during this period.

• For instance, Egypt and India became heavily reliant on cotton exports to Britain after disruptions in supply due to the American Civil War.

• Other examples include palm oil extraction in West Africa and guano mining in Pacific islands, both vital for industrial manufacturing processes.

Urbanization and Food Supply Needs

• Another significant factor driving economic development was urbanization; as cities grew, there was an increased demand for food supplies from rural areas.

• Colonial economies adapted by shifting towards cash crop cultivation of popular foods such as sugar and coffee to meet urban demands.

• Industrial ranching operations in Argentina and Brazil emerged to satisfy the growing meat consumption among middle-class populations in industrial nations.

Economic Dependencies Created by Imperialism

• Profits from exported raw materials often funded imports of manufactured goods from imperial states rather than benefiting local economies directly.

• As a result, colonies became economically dependent on their imperial rulers; profits gained from resource extraction primarily served the interests of colonizers rather than indigenous peoples.