D. Boland E XPLOITATION : P AST & P RESENT

 Colonialism: a system in which one country controls another.  A colony: a country controlled by another.  A colonial power: a country which controls colonies.  An empire: a colonial power, with its colonies.

H OW C OLONIALISM W ORKED  Centuries people of different cultures traded.  From the 15 th century onwards powerful European countries began to ‘discover’ other areas of the world such as Africa, South America & Asia.  The took gold, silver & spices from colonies.  They set up a world trading system.

The British Empire

I RELAND – E XPLOITED IN THE P AST  Ireland was a colony of England & was exploited.  (1) Trade was organised so we exported cheap farm goods & imported English manufactured goods.  (2) Irish lands were taken over by English & Scottish colonists, brought about by plantations (Ulster, Cromwellian).

E FFECTS OF EXPLOITATION IN I RELAND  Most Irish lands were controlled by ‘landlords’, many lived in England & were known as absentees.  Produce of Irish land were exported cheaply to England, even during the Great Famine ( ).  Irish industries were prevented from competing with English ones.

C OFFEE T RADE – E XPLOITATION T ODAY Coffee we buy comes from coffee beans grown in 3 rd World countries such as Brazil, Kenya & Ivory Coast which were once colonies. Plantations were established to provide cash crops for European powers. These countries have since won political independence, but not economic. World trade is still dominated by powerful countries who control trade for their own profit.

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E XPLOITATION OF C OFFEE -P RODUCING COUNTRIES  1. Unfair profit margins -Only a small portion of profit goes to 3 rd world producers. -More than 80% goes to multinational processing companies & traders from developed countries.

2. P ROTECTIONISM  1 st world countries say they are in favour of free trade but protect multi- national companies from 3 rd world competition.  Most profit in coffee beans is in processing. The U.S threatened to cut its aid to Brazil if Brazil processed it own beans, thus keeping huge profits for themselves.

F REE T RADE

3. F ALLING & F LUCTUATING P RICES  Processed coffee prices have steadily grown over the past 20 years.  However, the prices of coffee beans have fluctuated (risen & fallen) hugely, preventing 3 rd world countries from effectively planning their economy.

H OW U NFAIR T RADE P REVENTS D EVELOPMENT Northern domination of trade has made it difficult for 3 rd world countries to develop. Developing countries get low prices from rich countries for their raw materials, this is supported by the World Trade Organisation. Multinational Companies set up in 3 rd world countries & force workers to work for poor money & in poor conditions – sweatshops produce luxury goods.

H OW U NFAIR T RADE P REVENTS D EVELOPMENT  3 rd world governments & people receive little income. 1.they lack capital to improve industry. 2.they cannot improve health & services. 3.they may have to ask for international aid & then get in debt, making them even more dependent on the North (1 st world countries).  Makes economic development more difficult.