Economic Imperialism, Explained [AP World History Review—Unit 6 Topic 5]

Understanding Economic Imperialism

Introduction to Economic Imperialism

• The video introduces the concept of economic imperialism, highlighting that it encompasses more than just military conquest by industrial powers.

• Economic imperialism is defined as one state extending control over another through economic means rather than direct colonization.

Case Study: Opium Wars and China

• The first major example of economic imperialism discussed is the influence of Britain and France in China, leading to the Opium Wars.

• China's historical significance is noted; it was once considered the "Middle Kingdom" but became vulnerable due to its failure to industrialize.

• A trade imbalance existed where British silver accumulated in China because Chinese goods were in high demand, while British goods had little appeal in China.

Britain's Response to Trade Imbalance

• Instead of innovating products for Chinese consumers, Britain increased opium production in India and illegally exported it to China.

• The addictive nature of opium led to widespread addiction among the Chinese population, resulting in significant financial gain for Britain.

Conflict and Consequences

• In response to China's ban on opium imports, Britain retaliated militarily, initiating the first Opium War.

• The war ended with an unequal treaty (Treaty of Nanjing), which opened new trading ports and granted Britain substantial economic influence over China.

Further Decline of China

• Following the Treaty of Nanjing, internal strife such as the Taiping Rebellion weakened the Qing Dynasty further.

• Despite remaining in power, Qing rulers could not focus on industrialization due to ongoing conflicts and instability.

Continued Exploitation by Western Powers

• The second Opium War saw further defeat for China at the hands of British and French forces, leading to additional unequal treaties.

• Various Western nations carved out spheres of influence within China without full colonization but maintained economic dominance.

Additional Example: Argentina's Economic Imperialism

Economic Imperialism and Colonial Economies

The Role of British Investment in Argentina

• Businesses aimed to extract and export raw materials from Argentina, leading to the construction of a modern trading port in Buenos Aires. This port was funded by British firms, strategically located near their factories.

• The establishment of this port resulted in increased exports to Britain, fostering economic dependence on British investments and exemplifying the concept of economic imperialism.

Reorganization of Colonial Economies

• Economic imperialism involved reorganizing colonial economies to prioritize trade and commodities. A commodity is defined as any good that can be bought or sold on a market.

• Historical examples include cotton grown as cash crops in India and Egypt, which were exported to Britain and other European nations, creating dependency on external demand for these raw materials.

Impact on Sub-Saharan Africa

• In sub-Saharan Africa, imperial powers structured economies around palm oil extraction. This trend illustrates how colonial economies were shaped primarily for the benefit of imperial powers in Europe and the US.