The document discusses the history of globalization through various examples such as the Silk Road, food crops, and the meat industry. It describes how trade routes dating back centuries facilitated the spread of goods, ideas, and culture across vast distances. In the 19th century, advances in technology and the removal of trade barriers accelerated global integration. However, this era also saw the rise of colonialism and exploitation of workers and indigenous peoples in the colonized regions. The two World Wars and Great Depression disrupted global trade and had widespread economic and social impacts.

2. GLOBALISATION
• ‘‘Globalisation’’ started with trade, migration of
people in search of work and the movement of
capital.
• By globalization we mean increasing
integration between different economics of the
world.
• This is achieved with removal of barriers on
free flow of goods, services and capital
between Nations.

3. SILK ROUTE
• The ‘Silk Route’ are good examples of pre-
modern trade and the cultural links between
remote parts of the world.
• The ‘Silk Route’ were the routes through
which trade and cultural mingling of far flung
parts of the world took place. China was
known for the trade of the silk since ancient
period.

4. • Chinese silk cargoes used to travel through
these routes and from there it got its name ‘silk
routes’.
• Later Chinese pottery, textiles and spices from
India and Southeast Asia also travelled the
same routes. In return, precious metals like
gold and silver flowed from Europe to Asia.
• Trade and cultural exchange always went hand
in hand. Several silk routes helped in linking
Asia with Europe and N Africa.
• Buddhism which emerged from eastern India
also spread the same routes through
interconnecting points of the silk route.

6. Food Travels: Spaghetti and Potato
• Food is a good example of long distance cultural
exchange.
• Traders and travellers introduced new crops of the
land they travelled.
• For instance, spaghetti and noodles. It is believed
that noodles travelled West from China to become
spaghetti. Pasta of Arab travelled to Italy.
• Many of our common food such as potatoes, soya,
groundnuts, maize, tomatoes, chillies, sweet
potatoes were introduced in Europe and Asia after
Christopher Columbus discovered America.

7. POTATO
• Change the life of Europe people.Change the life of Europe people.
• It made people to eat better and live longer.It made people to eat better and live longer.
• Peasants of Ireland depend on potato.Peasants of Ireland depend on potato.
• In mid 1940s- disease destroyed the potato cropIn mid 1940s- disease destroyed the potato crop
• Hundred of thousand died due to starvation.Hundred of thousand died due to starvation.
• This is called IRISH FAMINEThis is called IRISH FAMINE

8. Conquest,Disease and Trade
• In the sixteenth century European sailors found a
sea route to Asia and also successfully crossed the
western ocean to America.
• For centuries before that, the Indian Ocean had
known a bustling trade, with goods, people,
knowledge, customs, etc. criss-crossing its waters.
• The Indian subcontinent was central to these
flows and a crucial point in their networks

9. • By the mid-sixteenth century
Europe defeated America.
• The European conquests was
not just a result of superior fire
power, in fact it were the
germs such as those of small
pox that they carried on their
person that killed America’s
original inhabitants on a large
scale.
• These people had no immunity
against these diseases. Small
pox in particular proved to be a
deadly killer. It devastated the
whole community, thus paving
the way for European
conquest.

10. Till The Nineteenth Century
• European suffers from many problems:
1.Poverty
2.Diseases
3.religious conflicts
Till 18th
cent, India and China are richest
Because of China’s reduced role and America’s
rising importance
World trade shifted to Europe

11. Dramatic ChangesDramatic Changes
in Nineteenthin Nineteenth
CenturyCentury

12. • Three types of movements or ‘flows’ wereThree types of movements or ‘flows’ were
identified by the economist within internationalidentified by the economist within international
economic exchanges.economic exchanges.
The flow of trade(trade in goods)The flow of trade(trade in goods)
The flow of labour (migration)The flow of labour (migration)
The movement of capital (investment)The movement of capital (investment)
• All the three flows were closely interlinked andAll the three flows were closely interlinked and
affected peoples’ life.affected peoples’ life.

13. Need of Food as Change Agent
• The nineteenth century Britain
lacked self sufficiency in food.
It was because of the
uncontrolled growth of
population and expansion of
urban centres and industries. As
a result –
 Prices of food grains increased
 People started importing food
from other countries where it
was cheaper.
 The government restricted the
import of corn under the
provision of laws called ‘Corn
laws’.

15. Abolition of corn law
• The industrialist and urban dwellers opposed the cornThe industrialist and urban dwellers opposed the corn
laws and demanded their abolition. Finally the cornlaws and demanded their abolition. Finally the corn
laws were abolished which brought a lot of changes inlaws were abolished which brought a lot of changes in
the British economy.the British economy.
• Food could be imported in Britain at much cheaper rateFood could be imported in Britain at much cheaper rate
than before.than before.
• British agriculture failed to compete with imports.British agriculture failed to compete with imports.
• Vast areas of land were left uncultivated.Vast areas of land were left uncultivated.
• Thousands of men and women became unemployed.Thousands of men and women became unemployed.
• This led to migration of people to the cities or overseasThis led to migration of people to the cities or overseas

16. Impact of trade on England
• Developed railways and new ports.
• Demand for labour and capital increase in
America and Australia.
• 50 million people left Europe for America and
Australia in 19th
century.
• 150 million all round the world- crossed oceans
and covered vast distance in search for better
future.

17. • Thus by the 1890, a global agricultural economy started
with some complex changes in labour movement
patterns, capital flows ecologies and technology.
• Food was now brought from thousands of miles away.
• It was grown by agricultural workers on lands after
clearing the forests.
• Lands were cultivated not by peasants owning this land
but by hired workers brought from distant lands.
• Railways, ships, new ports, etc were introduced or built
for transportation.
• Food was transported by railways and by ships.
• The workers were paid very low and were from Asia,
Africa or the Caribbean.

18. Role of Technology
• Technology plays a major role in the development
of
1.Railways
2.Steam Shipping,
3.Telegraph
• These were important invention for the
transformation of 19th
century world.

19. • Technology advance was often the result of
larger social, political and economic factor.
For Example:
Colonisation stimulated new investment and
improvements in transport – faster railways,
lighter wagons and larger ships- move food
more cheaply and quickly from faraway farms
to final markets.

20. Process of Globalization by taking example of
MEAT
• 1870s, meat from America to Europe are in
the form of live animal.
PROBLEMS:
• Live animals took up lots of space
• Many died in voyage
• Fell ill and loss of weight etc.

21. Demand for Meat: Meat which was an expensive
luxury beyond the reach of the European poor became
affordable and its demand increased.
Introduce of New Ship:- Development of new
technology namely REFRIGERATED SHIP made this
possible. Animals were now slaughtered for food at
the starting point (America, Australia or New
Zealand)and then transported to Europe as frozen meat.
Advantages: reduced shipping costs, lowered meat
prizes and better social life.

22. Impact on poor:
Now consume varied diet.
Many ad meat with butter and eggs to their
diet.
Promoted social peace within the country
But support for imperial abroad.

23. The Late 19th
Century Colonialism
• The process of globalization increased
prosperity but it is also important to realise
the darker side of this process.
• The process of globalization was responsible
for colonialism.

24. Major Impacts of Colonialism
• Most the colonist lost their political freedom
• It brought many painful economic, social and
ecological changes
• European powers in Africa drew up the
borders demarcating their respective
territories
• Britain and France made vast addition to their
overseas territories in the late 19th
century.

25. Rinderpest, or the Cattle Plague
• Rinderpest arrived in Africa in the late 1880s. ItRinderpest arrived in Africa in the late 1880s. It
was carried by infected cattle imported fromwas carried by infected cattle imported from
British Asia to feed the Italian soldiers invadingBritish Asia to feed the Italian soldiers invading
Eritrea in East Africa. Entering Africa in the east,Eritrea in East Africa. Entering Africa in the east,
rinderpest moved west ‘like forest fire’.rinderpest moved west ‘like forest fire’.
• The loss of cattle destroyed African livelihoods.The loss of cattle destroyed African livelihoods.
Planters, mine owners and colonial governmentsPlanters, mine owners and colonial governments
now successfully monopolized what scarce cattlenow successfully monopolized what scarce cattle
resources remained, to strengthen their powerresources remained, to strengthen their power
and to force Africans into the labor market.and to force Africans into the labor market.

27. Indentured Labour Migration from
India.
• Migration from India started in the 19th
century.
• Thousands of Indian and Chinese labour migrated to
work in plantations, in mines and in road and railway
construction project around the world.
• The main destinations of Indian indentured
migrants are:
• The Caribbean islands
• Mauritius and Fiji
• Closer home, Tamil migrant went to Ceylon (Sri
Lanka), Malaya.

30. Factors responsible for indentured labour:
• decline of cottage industry in India
• increase in land rents
• Shortage of land as lands was cleared for
plantations and mines.
• Unemployment and poverty.

31. The condition of Indentured Labourer
• Indenture labour was nothing but a new system of
slavery.
• In India: they were hired under contract, promised
to return after five years on their employer’s
plantation.
• They migrated in hope for bright future but
exploited by agent.
• The agents used to provide wrong information
regarding final destination, nature of work and
working condition.

32. Change in 19th
century
• The 19th
century indenture has been described as a
‘new system of slavery’
• Living & working conditions were harsh.
• they were exploited by agent
• Workers had no legal rights.
• They were paid less wages and they treated as slaves.
• So under these conditions surviving was difficult. But
workers discovered their own ways of surviving.
Some of them escaped into wilds forest & other tried
to develop their own social group.

34. Abolition of Indentured labour
• The system was abolished in 1921
• It was opposed by Indian nationalist
• Even now Indian indentured labour are their
in Caribbean Island,
• Workers are thought of as COOLIES as they as
they are an uneasy minority.

35. Indian Entrepreneurs Abroad
• To meet the growing food demand, producers
needed capital. Big landlords and large plantation
are getting money from Banks.
• The small entrepreneurs looked for local
financiers.
• The Shikaripuri shroffs & Nattukottai Chettiars
were bankers and traders who financed export
agriculture in central and south-east Asia.
• They had a sophisticated system to transfer
money over large distances and developed
indigenous forms of corporate organisations.

36. Indian Trade, Colonialism and the Global
System:
• Due to the economic policy of the British
imposition of tariffs on cloth imports into Britain
the inflow of fine Indian cotton began to decline
and British manufacturers flooded the Indian
market.
• Food grain and raw material export from India to
Britain and rest of the world increased.
• The value of British export to India was much
more higher than the value of British imports
from India.

37. • Thus, Britain had a trade surplus with India.
• Britain used this trade surplus to balance trade
deficit with other countries – that is with countries
from which Britain was importing more than it
was selling to.
• Thus India played a crucial role in the late
nineteenth century world economy by helping
Britain balance its deficit.
• This trade surplus of Britain helped the home
charges i.e.: private remittances of British
officials, traders, interest payments on external
debt and pensions of British officials in India.

38. The Inter- War Economy
First world war(1914-18): between two groups
• Allies - Britain, France and Russia(late joined
by America)
• Central power – Germany, Austria-Hungry and
Ottoman Turkey.
• War begin in August 1914 and lasted more
than four years.

39. Impact of World War -1
• The impact of the World War I on the world
was widespread.
• During this period the whole world
experienced economic ad political instability
and another disastrous war.
• It was the first modern industrial war as it saw
the use of machine guns, tanks, aircrafts,
chemical weapons etc. on a large scale.

40. • War Tools: First time used of machine guns ,
tank, aircraft,chemical weapons etc.
• Soldiers: recruited from around the world,they
men of working age.
• Death and Destruction: 9 million dead and 20
million injured.
• Deaths and injuries adversely affected workforce
in Europe.
• The scale of death and destruction was beyond
imagination. Household income declined.

41. • Most of killed and
maimed were men of
working age.
• Women had to take a
job that earlier men
were expected to do.
• It also made the USA
an international
creditor from an
international debtor.

44. Post War Recovery
• After the war Britain failed to recapture its earlier
position of dominance in the Indian market and to
compete with Japan internationally.
• Britain had a huge debt, borrowed from US.
• Unemployment increased because of the closure of many
industries.
• Agricultural economies were also in crisis.
• Wheat production in Canada, America and Australia
expanded dramatically and declined in Eastern Europe.
• Grain prices fell, rural incomes declined and farmers
fell in to debt.

45. Rise of Mass Production and Consumption
• The US economy was quick to recover from the war,
• 1920:One important feature of the US economy was
‘Mass Production’.
• A well known pioneer of ‘Mass Production’ was
Henry Ford.
• Mass Production helped increasing productivity and
reducing prices.
• Workers began to earn better in US.
• This created huge demand for various production.

47. • Car manufacturer Henry Ford’s cars came off
the assembly line at three-minute intervals, a
speed much faster than that achieved by
previous methods.
• The Model-T automobile was the world’s first
mass-produced car.
• Workers could not cope with the stress of
working on assembly line so they quit.
• Ford paid high wages to the workers and
recovered this through faster production.

49. • Car production rose from 2 million in 1919 to 5
million in 1929 in the US.
• Similarly, the production of goods like
refrigerators, radio,gramaphone,
Washing machines,etc. increased manifold in US.

51. • In 1923, US resumed exporting capital to the rest
of the world and emerged as the largest overseas
lender.
• This also help in European recovery and world
trade and income growth over the next six years.
• The housing and consumer boom in the 1920s
created the basis of US prosperity.
• Investment in housing and household goods create
a cycle of higher employments and incomes,
rising consumption demand, more investment and
yet more employment and incomes.

52. The Great Depression –
• The Great Depression began from 1929 and
lasted till the mid 1930s.
• During this period agricultural production,
employment, incomes and trade declined
drastically.
• Agricultural regions and communities were the
worst affected.
• This was because of the fall of agricultural
prices than the prices of industrial goods.

53. Factor Responsible for Depression
• Problem of agricultural over production made the
prices of agricultural products slumping.
• In the mid-1920s, many countries finance their
investments through loans from the US
• When the crisis started US began to withdrew loans which
affected the rest of the world.
• Several major banks failed and currencies collapsed such as
the British pound sterling.
• In Latin America the agricultural and raw material prices
declined.
• In order to protect its economy US doubled the import
duties which gave a severe blow to the world

54. • In Europe, it let to the failure of some major
banks and collapse of currencies like sterling
US : most affected country by Depression
• US –an industrial country, severely affected by
the depression.
• Farms could not sell their harvests, household
ruined and businesses collapsed and
unemployment went up.

55. • US banking system collapsed,
Reasons are:
• The banks were unable to recover
investments, collect loans and repay
depositors.
• Thousands of banks went bankrupt and were
forced to close.
• Between 1929-32 about 110,000 companies
had closed.
• By 1933-4000 banks had closed

58. India and the Great Depression
• The effect of the great depression on the Indian
economy:
1.Impact on trade: India’s export an imports nearly
halved between 1928 and 1934. as international
prices crashed , prices in India plunged. Half of
wheat prices fell in India.
2.Impact on farmers: The fall in prices had a deep
impact on the poor farmers. Though agricultural
prices fell, but the colonial government refused to
give any relief to the farmer’s in taxes.

59. Result
• Their indebtedness increased.
• They were forced to sell their assets like gold and
silver.
• Indian jute producers was worst affected. The
prices of raw jute crashed more than 60%.
3. The depression proved less grim for urban India.
Middle class salaried employees found
themselves better off.

60. Rebuilding a World Economy
The Post War( second world war)
• The second world war – fought between Allies
and Axis power.
• Consequences of the Second World War:
1.Death and destruction
2.Use of atomic bomb
3.Damage to agriculture, trade and industries.
4.Emerged two power bloc- Soviet Union & US

61. Post War Settlement and the Bretton-
Wood Institutions
• Economics and Politicians learned two lessons from the
interwar economic experiences.
• Full Employment: An industrial society based on mass
production cannot be sustained without mass
consumption. But to ensure mass consumption , there was
a need for a high and stable income.
• Intervention of Government: before war, believed that
capitalist’s economics or markets are self sustaining, there
is no government intervention. But interwar proved that
markets alone could not guarantee full employment.
Therefore government would have to step in to minimize
fluctuations of price, output and employment.

62. Two main objectives of post war
international economic system
• Achieving and preserving economic stability
• Full employment in the industrial world

63. Establishment of IMF and World Bank
• The Bretton Woods conference took place in the
July of 1944 at Bretton Woods in New
Hemsphire, USA….
• Under this system, the International Monetary
Fund(IMF) and the International Reconstruction
and Development ( popularly known as the
World Bank) were established.
• The IMF and World Bank are referred to as the
Bretton Woods institution or sometimes the
Bretton Woods twins.

64. • Decision making in these institutions is
controlled by the western industrial powers.
• The Bretton Woods system based on fixed
exchange rates. In this system, national
currencies, for example the Indian rupee,
were pegged to the dollar at fixed exchange
rate. The dollar itself was anchored to gold at
fixed price of $35 per ounce of gold(28.3
gram).

65. The Early Post –War Years
• Western Industrial nations and Japan were the
beneficiary of the Bretton Wood’s system.
• World trade grew annually at over 8% between
1950-1970.
• The system controlled the unemployment-
average less than 5% in industrial countries.
• These decades also saw the world wide sread of
technology and entrerprise. Developing countries
invested vast amounts of capital, importing
industrial plants and featuring modern
technology.

66. Decolonization and Independence:
• After, the second world war most of the Asian and
African colonies emerged as free, independent.
• These newly independent countries overburdened
by poverty and their economies were handicapped
by long process of colonial rule.
• The newly independent countries were looking for
some international organization which could help
them to come out of economic problems.

67. Condition of Developing Nations
• New independent countries were dependent on
Bretton Woods institutions. These institution
dominated by the big powers.
• Even after many years of decolonization, the
former powers still held the main control of the
economic power.
• Large Corporation of other powerful like USA
often managed to secure rights to exploit
developing countries natural resources very
cheaply.

68. G-77 or Group 77
• Most of the developing countries did not benefit
from the fast growth the Western economies.
• So they organized themselves as a group. Group
77 or G-77 demanded a New International
Economic Order (NIEO)
• G-77 is a loose coalition of developing nations,
designed to promote it member’s collective
economic interest. There were 77 founding
members, but the organization expanded to 130
member countries till now.

69. New International Economic Order (NIEO)
• The NIEO was a set of proposals put forward
during the 1970s by the developing nations with
the following objectives:
1.To revise the international economic system in
favour of developing countries.
2.The developing nations wanted a system that
would control over their natural resources.

70. 3. The developing nations wanted to set up a
system which they could get fairer price for the
raw material and better access for their
manufactured goods in the developed market.
4. Developing countries must be entitled to
regulate and control the activities of
Multinational Corporation or MNC.

71. End of Bretton-woods and the beginning
of ‘Globalization’:
• The decline of US currency:
• New power
• Rise of western commercial bank
• Problem of unemployment
• Rise of China and Soviet Union
• Low cost structure in China