Economic History: Industrialization and Global Impacts

Posted on Nov 17, 2024 in Geography

READING NUMBER 1: Course of Economic History

  1. France: Labor was inexpensive, hindering mechanization and preventing an industrial revolution akin to Britain’s. France lacked iron and coal, essential for industrialization.
  2. Bank Creation: A shareholder-based bank focused on industrial investment was created, impacting over 50 companies. It led to mixed banking models and strengthened large industries, despite eventual bankruptcy. It influenced American companies.
  3. Infrastructure Spending: Encouraged private investment and employment. Urban reforms (e.g., Paris) addressed emerging needs. Facilities were provided for railway construction.
  4. Abolition of Rural Schemes: Consolidation of private land ownership and German unification.
  5. Zollverein: Agreements eliminated tariff barriers with countries near Prussia, promoting the German domestic market and rapid railway expansion, surpassing Britain. A single tariff was established.
  6. Heavy Industry: Vast mineral reserves and advanced agricultural technology fueled heavy industry. Transformative activities occurred near mines.
  7. State Investment: State investment in industry led to the creation of mortgage banks, fostering large industries. High technological development and scientific discoveries were applied effectively, particularly in steel, electrical, and chemical sectors. The state financed capital-intensive industries like steel.
  8. Financial Retraction: Despite financial stabilization, industrial policy remained less liberal with increased public sector involvement. Banks with foreign capital were formed, and strong growth in hydraulic energy occurred.
  9. Serfdom: Serfdom combined personal benefits and monetary income. Lords transformed less fertile lands into money incomes, forcing farmers to seek income from industry or trade (domestic manufactures). This initiated agricultural development.
  10. Primary Product Exports: Exporting primary products suggested the possibility of developing a food processing industry, laying the groundwork for further industrial growth. These economies were primarily agricultural, specializing in exports and dependent on British and French demand.

READING NUMBER 2: Introduction to World Economic History

  1. Industrialized Countries: Established direct or indirect dominance over the rest of the world, globalizing the economy based on an international division of labor.
  2. Informal Settlements: Independent states faced force if trade barriers were imposed. Imperialism arose as industrialized countries occupied lands and exploited resources.
  3. British Colonies: Predominantly metropolitan populations with governments dependent on the mainland. Indigenous populations were rejected. Large land tracts and high business volatility due to demand changes were common.
  4. Cotton Supplier: Colonies were the main cotton suppliers to Britain.
  5. Global Market Reduction: Japan was forced to sign treaties, often under military pressure, to allow free export of drugs, reducing the global market.
  6. Colonization Race: A race to colonize from the coast led to the domination of indigenous populations in Asia, Africa, and Oceania by industrialized countries.
  7. Resource Discovery: The discovery of diamonds and gold, along with competition among developed countries, led to increased production during an economic depression. Wealth tax, farm, and trade exploitation occurred, and colonies served as outlets for excess population.
  8. Market Integration: Factors of production were exported from abundant to scarce places, resulting in higher added value for industrial goods, the decline of traditional manufacturing, and global dependency on developed countries.
  9. Specialization: Development caused specialization, increasing the ability of certain population segments to purchase previously unaffordable products due to rising incomes and falling prices.
  10. Trade Growth: Trade growth significantly exceeded population and production growth. Uneven growth in international trade participation occurred across countries and products, with Europe dominating world trade and a major international division of labor.

READING NUMBER 3: Economic History of the Company

  1. Interwar Period: Emerged in the United States to address Taylorism’s inadequacies and factory labor unrest.
  2. Human Relations Model: Enterprise foundation depended on cooperation between managers and workers. Workers were viewed as individuals identifying with the group, not just selling labor for wages.
  3. Rapid Spread: Most companies adopted the model. Unions initially supported it, but employers used it to diminish union influence. Unions later became neutral.
  4. Great Britain: Accepted through coordination between unions, employers, and the state, as well as intellectual currents. Germany saw no implementation attempts by the state, employers, or unions.
  5. Semi-Skilled Workers: Replacement with semi-skilled workers allowed companies to increase control over the labor process in chemical, food, and automotive industries, resulting in increased output and decreased employment.
  6. Control Debates: Two claims existed: one that control prevented mass production adoption, and another that it was an attempt to introduce American work organization methods.
  7. Ford’s Approach: Ford maintained mass production, daily wages, and direct foreman control, alongside flexible specialization and incentives. Both approaches faced labor problems.
  8. New Industrial Relations: A new system was created where the state controlled wages and minimum wages, with collective agreements applied to public companies.
  9. Working Groups: Maintained working groups with multi-skilled workers operating multiple machines. Training occurred within the company, with remuneration based on seniority and lifetime employment.
  10. Just-in-Time: Refers to a continuous flow process where goods move immediately from one process to another.

READING NUMBER 4: Introduction to Economic History

  1. Growth vs. Development: Growth relates exclusively to production or income (measured by GDP and national income), while development includes other aspects of human activity and living conditions (measured by the HDI).
  2. Growth Patterns: Latin America and France experienced growth relative to advanced countries. Asia (excluding Japan) saw convergence growth.
  3. Developed Country Aid: Aid from developed countries and NGOs provided health and hygiene knowledge, reducing infant mortality and influencing birth rate mentality.
  4. Wealth Disparity: The rich invested abroad, while the rest lacked capital for business ventures and access to education, leading to conflicts.
  5. Company Relocation: Companies needing university-trained people established themselves in countries with lower wages than Europe or the USA.
  6. Protectionist Policies: Adopting protectionist policies hindered industrial advancement. Removing these policies made companies unable to compete with foreign markets, leading to closures.
  7. State Control: State control over production, marketing of traditional export products, land, and farming community systems.
  8. Economic Challenges: Near-zero growth, increased debt, and falling prices for some export commodities.
  9. Positive Factors: Population growth, growth through manufactured exports, cheap labor, improved education, domestic savings, and international capital.
  10. Stability and Exports: Social stability, political control of exports, and encouraging industries to compete in foreign markets due to cheap and abundant labor.