Creation, Interaction and Expansion of Economic Systems AP World History
Creation, Interaction and Expansion of Economic Systems This theme includes: Agricultural and pastoral production Trade and commerce Labor systems Industrialization Capitalism and Socialism
Foundations Unit 8000 BCE 600 CE
Neolithic Revolution Traditional Economy Hunting and gathering Sedentary agriculture developed between 10,000 and 8,000 BCE 1 st developed in southwestern Asia Earliest method was slashand-burn agriculture Subsistence agriculture Herding animals (pastoralism) Slash-and-burn agriculture in northeast India
Development of Agriculture
Economic Regions
Early Village Economy Farming led to the rise of permanent villages Jericho Village life led to specialized labor Development of early industry Pottery, metallurgy, and textiles
Ancient Civilizations Mesopotamia, Egypt, & Indus River Valley Irrigation led to improved agriculture Development of cities contributed to rise of trade China Regular rains & fertile soil minimized irrigation Olmec Develop in rainforest; water control systems Chavin Develop in mountains; complex irrigation
Nile-Indus Corridor
Pre-classical labor systems Slavery Existed in all early civilizations but was relatively unimportant Most slaves gained through military conquest Egypt Used corvée labor to build pyramids & temples Peasants were bound to the land Men were organized into labor gangs of 50-100
Pre-classical labor systems Mesopotamia Large number of slaves due to militaristic nature of society Peasants lost their freedom over time China Rise of debt slavery Zhou dynasty peasants paid a percentage of their crops to aristocrats in exchange for protection Manorial system
Classical Civilizations Han China Monopolized production of iron, salt, and liquor Rise of the Silk Road Mauryan India Ashoka built irrigation systems and roads to promote trade Mayans Terrace farming improved production of cotton, maize, and cacao
Classical Civilizations Ancient Greece Cities, such as Athens, become centers of trade Economy depended heavily on slavery Rome Latifundia large landed estates focused on commercial agriculture (olive oil, wine, wheat) North Africa was the major grain producing region Depended on slave labor Roman roads promoted trade and linked empire to Silk Road
The Silk Roads Cotton
Classical era labor systems China Free peasants were the backbone of the labor force Peasants ranked just below bureaucrats but above artisans and merchants Qin Shi Huangdi ended the manorial system Recruited labor to build the Great Wall Silk weaving supplemented farm income Men as tiller, woman as weaver During the Han dynasty, slaves made up less than 1% of the total population
Classical era labor systems Greece & Rome Slaves never constituted more than 50% of the population Slaves worked as domestic servants, miners, and farmers In Greece, slaves could serve as tutors In Rome, development of commercial agriculture led to the rise of slavery Rome also used slaves as gladiators and chariot racers
Classical era labor systems India Caste system was based largely on job classification Farmers did not rank high in prestige Merchants had a higher social standing than they did in China or the Mediterranean Slaves played almost no role in the economy Sudras (lowest caste) and untouchables took the place of slaves
Post-Classical Unit 600 1450
Arabs Did not rely heavily upon agriculture Abbasid sakk (checks) encouraged trade Urbanization: Baghdad Dar al-islam facilitated expansion of trade Islamic law protected merchants Revival of the Silk Road Growth of Indian Ocean trade Dhows increase the volume of maritime trade
Indian Ocean trade routes Chinese junk East Africa gold salt slaves Arab dhow
Labor in the Islamic World Islamic slaves were viewed as humans rather than just property (chattel) Slavery was seen as a method of conversion Slaves were acquired from Africa or central Asia Abbasid introduced the use of Turkish slavesoldiers Mamluks Janissaries (Ottoman Empire)
Post-Classical Empires Byzantine Empire Manufactures glassware, jewelry, & silk Trade a major part of the economy Mediterranean Sea, Silk Roads, Russia, etc. Urbanization: Constantinople Sudanic Africa (Ghana, Mali, Songhai) Trans-Saharan trade Use camel caravans to trade gold, slaves, and ivory for horses, manufactured goods, and salt Urbanization: Timbuktu
Trans-Saharan trade routes
Post-Classical Empires Swahili Coast Trade gold and parts of exotic animals to Islamic and Indian merchants for products from Persia, India, and China Urbanization: Mogadishu, Kilwa, etc. Great Zimbabwe Supplies gold to the Swahili coast
Tang/Song China Emphasis on internal trade Champa rice & terrace farming Grand Canal & flying money Song pre-industrial era Commercial economy focused on the production of silk, porcelain, & steel Urbanization: Hangzhou
Post-Classical Empires Mongols Pastoralists Promoted trade on Silk Road via Pax Mongolica Marco Polo Japan Villages relied on rice cultivation World s leader in silver production Trade silver to China for manufactured products Development of feudalism caused peasants to become serfs
Medieval Europe Manorialism Self-sufficient agricultural estates worked by serfs Three-field system & moldboard plow Trade revived after 1000 CE Rise of merchant & craft guilds Crusades led to an increase in demand for Asian products Rise of Italian merchants & the Hanseatic league Urbanization: Italian cities & Paris
Hanseatic League (1400s-1600s)
Post-Classical Empires Aztecs Inca Chinampas Pochteca monopolized longdistance trade Tribute system Built 9,500 miles of roads to facilitate trade Inca socialism Use terrace farming to grow potatoes Mita labor
Early Modern Era 1450-1750
Rise of World Trade European exploration Seeking easier access to Asian luxury products Columbus discovery of the Americas Vasco da Gama reached India in 1498 Spain established Manila in 1571 Manila galleons connect Asian markets to American silver Trade Empires Spain/Portugal in the 16 th century Netherlands (Dutch) in the 17 th century England (Great Britain) in the 18 th century
European Colonization
World Trade after 1571
Dutch Trade Empire
Western Europe Commercial Revolution Rise of a middle class (bourgeoisie) and proletariat Mercantilism Rise of manufacturing Encouraged colonization Joint Stock Companies Privately owned with government support Ex. Dutch East India Co., Royal African Co., Virginia Company
Economy of New Spain Encomiendas Manorial system in the New World Declined with the death of the natives Plantations Majority of labor provided by African slaves
Economy of New Spain Mining Silver the Heart of the Empire Largest mine was Potosi Mita labor Haciendas Estates focused on cash crops & livestock
Africa & the Slave Trade Commercial relationship developed between West African kingdoms & Europe Triangle Trade or the Atlantic System Slavery was common in Africa Slave Trade Trade continued with Muslim merchants Increase demand caused by sugar plantations Atlantic slave trade altered traditional African trade routes
African Slave Trade
Emancipation of Slaves
Ming Dynasty Economic Recovery Rebuilt irrigation systems destroyed by the Mongols Increased production of silk textiles & porcelain Silver Sink Single-whip tax system Chinese demand for silver contributed to rise of world trade Limited trade to Macao/Canton
Voyages of Zheng He Established tributary relationships throughout the Indian Ocean Exchanged silk & porcelain for other luxuries
Tokugawa Japan Portugal established trade relations in 1543 Trade silver to China in exchange for luxury products 2 nd in silver exports behind Spain Began isolation in 1640s Allowed Dutch & Chinese to trade at Nagasaki Urbanization led to rise of a merchant class
Russia Peter the Great modernized the economy focused on mining and metallurgy Serfdom Began under Mongol occupation Provided cheap labor for Russian agriculture Could be bought and sold
Mughal Empire Continued manufacturing cotton textiles British establish trading posts at Madras and Bombay in the early 1600s British East India Company continued to expand their interests into the 1700s
The Modern Era 1750-1914
Causes of the Industrial Revolution Favorable natural resources Population Pressure Abundance of labor Growth of large manufacturing sector Cottage industry (putting-out system) Advantages in world trade Technological innovation Government support of business
Industrial Technology Cottage Industry (putting-out system) Mechanization of weaving Cotton that took an Indian worker 500 hours to spin took a machine in England 80 minutes to spin Iron smelting Bessemer steel process Energy Steam engine and electricity Transportation Canals, steamboat, railroads
Economic Effects of Industrialization Labor changes Factory labor was dangerous and toilsome Initially women & children work in factories Rise in white collar jobs for new middle class High unemployment rates Labor unions were formed to protect workers Rise of consumer culture Standard of living increases Frequent economic depressions
Economic Effects of Industrialization New economic theories Capitalism Direct attack on mercantilism Positivism Socialism The Communist Manifesto by Karl Marx and Friedrich Engels Communism
Global Industrialization Industrialization turned nations into either manufacturers of consumer goods or suppliers of raw materials Manufacturers: Western Europe, the United States, Japan, Russia(?) Suppliers: the Ottoman Empire, Egypt, China, India Africa, Latin America, Southeast Asia, Australia
Spread of Industrialization in Europe
Russian Industrialization Caused by Russian defeat in Crimean War Abolish serfdom in 1861 Do NOT make major reforms to help peasants Limited industrialization Trans-Siberian railroad Focus on heavy industry 2 nd in petroleum and 4 th in steel production by 1900 Do NOT produce consumer goods Lower class women move to cities for factory work
Japanese Industrialization Ends isolation in 1853 Abolish samurai class Economic modernization Industrialization Zaibatsu Mitsubishi Women work in silk factories
Africa: 1750-1914 British ended the slave trade in 1807; the United States in 1808 England bans slavery in 1833; U.S. in 1863; Natural resources (gold, ivory, palm oil) replace slaves in trade with Europe Muhammad Ali modernizes Egypt Forced peasants to grow cotton for export Built irrigation canals and railroads Successors build the Suez Canal Makes Egypt one of the most strategic places on Earth
The Middle East: 1750-1914 Sick Man of Europe Declining agricultural revenues Large debts to foreign nations European imports exceed exports Caused massive inflation Reforms Creation of a central bank Factories opened in urban areas Relied heavily on European investment and technology
Asia: 1750-1914 India China British transform India from supplier of textiles to exporter of raw cotton Also export opium, coffee, and tea Opium War ends Canton system Opium trade reverses causes silver to flow from China Southeast Asia British establish Singapore and colonize other areas to gain access to raw materials Indentured Servitude Thousands of Indians, Chinese, and Japanese migrated to the Caribbean to replace slave labor
The Americas: 1750-1914 Latin America supplied raw materials to the West in exchange for manufactured goods Influence switched from Spain to England Monroe Doctrine Indentured servitude & immigration replace slavery Mexico and Argentina undergo limited industrialization in the late 1800s Porfirio Diaz
The Twentieth Century 1914 Present
The West Great Depression Causes German economic depression, France & England unable to pay war debt; surplus in agriculture & industry; U.S. stock market crash (October 1929); U.S. bank failures Effects Economic nationalism, expansion of welfare state (New Deal in U.S.), increased government regulation of the economy; political radicalization
The West: Post-WWII Transition from secondary economy (industrial) to a tertiary economy (service) Growth of white-collar jobs Expansion of the welfare state Economic cooperation European Economic Community (eventually EU) IMF and World Bank Multinational corporations Volkswagon built cars in Mexico for U.S. consumers
Eastern Europe Russia New Economic Policy Lenin s response to the Great Depression; minimal impact Collectivization of agriculture Five-Year Plans Command Economy
Latin America Export raw materials (crops, rubber, etc.) for manufactured goods Industry dominated by Europe Great Depression had major impact Exports fell by over 65% Import Substitution Industrialization Attempts at economic nationalization was often opposed by the U.S. NAFTA
Africa Export raw materials (cocoa, palm oil, gold, etc.) for manufactured goods Colonial rulers often forced Africans to work in mines or on plantations Post-Independence Debt Emerging markets Low GDP with opportunity for economic growth Violence over resources Conflict diamonds
The Middle East Post-Independence Often remained dependent upon trade with Europe Impact of oil economy OPEC Allowed nations to gain tremendous wealth Many countries have used oil wealth to invest in other industries Ford, Citicorp, AIG, etc.
East Asia Japan, Inc. Government works closely with business Little Tigers China South Korea steel, automobiles, etc. Taiwan textiles then computers Hong Kong textiles then banking Singapore shipping Five-years plans & collectivization under Mao Four modernizations under Deng Xiaoping Semi-autonomous regions