Economic History Objective: 1. Discuss the fundamental forces that have contributed to the world’s economic development over history. 2. Discuss the main reasons for and results of uneven economic development between different regions.

Geography and Development First a quick exercise: find and label the following countries: First a quick exercise: find and label the following countries: ChinaChina IndiaIndia NigeriaNigeria MexicoMexico IraqIraq BrazilBrazil VenezuelaVenezuela SudanSudan

Geography and Development

Economic History I 5,000,000 to 15,000 BCE 5,000,000 to 15,000 BCE All Hunter-GatherersAll Hunter-Gatherers By the end, humans are everywhereBy the end, humans are everywhere Around 15,000 BCE, a big leap Around 15,000 BCE, a big leap Agriculture and animal domesticationAgriculture and animal domestication Leads to:Leads to: Permanent settlements Permanent settlements Specialization Specialization Complex societies: 1st class-based societies Complex societies: 1st class-based societies slaveryslavery Writing Writing

Where?

Animals and Plants I Animals: what makes them suitable for domestication? Animals: what makes them suitable for domestication? Size: should be bigSize: should be big Temperament:Temperament: Docile Docile Herd Herd Growth rate: should be quickGrowth rate: should be quick Diet:Diet: Herbivores are best Herbivores are best Don’t want to hunt to feed your animals Don’t want to hunt to feed your animals How many does that leave? How many does that leave? Just fourteen!Just fourteen! Big five: Cows, pigs, horses, sheep, goatsBig five: Cows, pigs, horses, sheep, goats Almost all of them in Eurasia!Almost all of them in Eurasia!

Animals and Plants II Plants: what makes them suitable for cultivation? Plants: what makes them suitable for cultivation? Size of seed/fruit/rootSize of seed/fruit/root What are the main crops that have been cultivated?What are the main crops that have been cultivated? Top 4: wheat and rice (Eurasia), corn (Central and South America), sorghum (Africa) Top 4: wheat and rice (Eurasia), corn (Central and South America), sorghum (Africa) Also-rans: Also-rans: Rye, Barley, Oats (Eurasia)Rye, Barley, Oats (Eurasia) Yams, Kola nut (Africa)Yams, Kola nut (Africa) Potato, sweet potato, cocoa, squash, beans, tomato (Central & South America)Potato, sweet potato, cocoa, squash, beans, tomato (Central & South America) Wild rice, beans, squash (North America)Wild rice, beans, squash (North America)

Geographical Advantages Eurasia wins! Eurasia wins! It has the greatest number of useful plant and animal speciesIt has the greatest number of useful plant and animal species It has an east-west orientation (Americas and Africa are north-south)It has an east-west orientation (Americas and Africa are north-south) This means much faster spread of domesticated plant and animal species This means much faster spread of domesticated plant and animal species Which means:Which means: Faster spread of other technologies Faster spread of other technologies Lots of diseases Lots of diseases

Back to History By 1500 AD, who is most advanced? By 1500 AD, who is most advanced? China, but it was inward looking:China, but it was inward looking: It had plenty of resources It had plenty of resources And enemies to the west And enemies to the west Europe was outward lookingEurope was outward looking It lacked resources It lacked resources It was good at fighting: It was good at fighting: 1000 years of practice on each other after fall of Rome1000 years of practice on each other after fall of Rome And it had ‘guns, germs and steel’And it had ‘guns, germs and steel’

Economic History European economies European economies Roman Empire: slaveryRoman Empire: slavery Medieval Europe: feudalismMedieval Europe: feudalism As new colonial empires grew, so did industrial capitalism (in Britain, then France, Germany, etc.)As new colonial empires grew, so did industrial capitalism (in Britain, then France, Germany, etc.) 1500 – – 1914 European colonial empires divided up the rest of the world among themEuropean colonial empires divided up the rest of the world among them Exceptions:Exceptions: Japan and Ethiopia Japan and Ethiopia Independent colonies (U.S., Caribbean and Latin America) Independent colonies (U.S., Caribbean and Latin America)

More Economic History Which countries are the poorest nations now? Which countries are the poorest nations now? Former ColoniesFormer Colonies Is this a coincidence? Is this a coincidence? Hardly: Colonial administrations were all about serving the economic needs of the colonial powerHardly: Colonial administrations were all about serving the economic needs of the colonial power Raw materials (a.k.a. wealth) were extracted Raw materials (a.k.a. wealth) were extracted Native industries were demolished Native industries were demolished Infrastructure built around the colonizers’ needs Infrastructure built around the colonizers’ needs After independence:After independence: Direct political domination replaced with economic domination Direct political domination replaced with economic domination

Bretton Woods Conference to decide the structure of international economy after the war Conference to decide the structure of international economy after the war Creates major institutions: Creates major institutions: International Monetary FundInternational Monetary Fund World BankWorld Bank General Agreement on Trade and Tariffs (GATT), which lead to World Trade OrganizationGeneral Agreement on Trade and Tariffs (GATT), which lead to World Trade Organization Fixed exchange rates, U.S. Dollar (backed by $35/oz.) replaces British Pound Sterling as international currencyFixed exchange rates, U.S. Dollar (backed by $35/oz.) replaces British Pound Sterling as international currency