Chapter Summary

This section is a concise recap of all of Chapter 3 — The Making of a Global World. Use it for last-minute revision before the Board examination.

Globalisation has a long history. From ancient times, trade, migration and the movement of capital — and even germs — linked societies. The silk routes connected Asia with Europe and Africa, and foods (the potato, spaghetti, maize) travelled vast distances, many crops coming from the Americas after Columbus.

Conquest, the World Economy and Colonialism

  • Conquest & disease: the world shrank in the 1500s; silver from Peru/Mexico; smallpox was the decisive weapon in conquering America; China isolated (15th c), Europe became the centre of trade.
  • Nineteenth century (1815-1914): three flows — trade, labour, capital. Corn Laws abolished → cheap food imports, migration; global agricultural economy by 1890; ~50 million migrate to America/Australia; world trade × 25-40 (1820-1914).
  • Technology: railways, steamships, telegraph; refrigerated ships transform the meat trade.
  • Colonialism: Berlin conference 1885 carves up Africa; Rinderpest (1890s) kills 90% of cattle → forces Africans into wage labour.

India, War and Depression

  • Indentured labour: from eastern UP, Bihar, central India, Tamil Nadu → Caribbean, Mauritius, Fiji; 'new system of slavery'; cultural fusion (Hosay, Chutney); abolished 1921.
  • Indian entrepreneurs: Shikaripuri Shroffs, Nattukottai Chettiars; Hyderabadi Sindhi traders.
  • Indian trade: cotton textile exports fall (30% → below 3%); raw cotton, indigo, opium rise; Britain's trade surplus with India, home charges, multilateral settlement.
  • Inter-war: First World War = first modern industrial war (9m dead); US debtor → creditor; Henry Ford assembly line, T-Model (first mass-produced car), $5/day; consumer boom.

Depression and the Post-war World

  • Great Depression (1929-mid-1930s): agricultural overproduction + withdrawal of US loans; 4,000+ US banks close by 1933.
  • India & Depression: exports/imports halve; wheat prices -50%; jute -60%; India exports gold; rural unrest behind Civil Disobedience (1931).
  • Post-war: WWII (60m dead); Bretton Woods (July 1944) → IMF + World Bank (began 1947); fixed exchange rates (rupee-dollar-gold, $35/ounce).
  • Later: decolonisation; G-77 demands a New International Economic Order; fixed → floating exchange rates (1970s); MNCs → low-wage Asia (China); India, China, Brazil transform — modern globalisation.

Quick Revision — Must-Know Facts

  • Silk routes: Chinese silk, Indian spices/textiles; gold-silver Europe → Asia.
  • Foods (potato, maize, tomato) from the Americas after Columbus; Irish potato famine mid-1840s.
  • Smallpox = decisive weapon in conquest of America.
  • Corn Laws abolished → cheap imports + migration; global agricultural economy by 1890.
  • Berlin conference 1885 = carving up Africa; Rinderpest kills 90% of cattle.
  • Indentured labour abolished 1921; Henry Ford = assembly line, T-Model.
  • Bretton Woods 1944 = IMF + World Bank; fixed exchange rates; G-77 → NIEO.

Quick Revision — Commonly Confused Points

  • Three flows: trade (goods), labour (migration), capital (investment).
  • Corn Laws (restrict corn import) vs tariffs (tax on imports generally).
  • IMF (surpluses/deficits) vs World Bank (reconstruction/development).
  • Fixed exchange rates (Bretton Woods) vs floating exchange rates (after 1970s).
  • Rinderpest (cattle plague, Africa) vs smallpox (conquest of America).
  • Trade surplus (sell more than you buy) vs trade deficit (buy more than you sell).