The New Imperialism: Latin America, Africa, and Asia in the 19th Century
ITEM 7: The New Imperial Expansion
7.1. Latin America: Independence and Foreign Capital
Latin American nations began their independence movements in the first quarter of the nineteenth century, with the exception of Cuba and Puerto Rico, which achieved independence towards the end of the century. The creation of these new nations was marked by uncertainty.
Economic Model: Latin America was characterized by political independence but economic dependence. This dependence stemmed from exports and led to an alliance between political leaders and foreign investors. However, there was no unified system of taxation, as each entity operated within its own sphere of influence.
Political Power: The oligarchy, composed of landowners who had rebelled against the Spanish crown, rose to power and maintained their control.
Production Systems: Latin America had diverse production systems:
- Mineral Products: Chile, Peru, Bolivia, and Mexico
- Cereals and Cattle Products: Argentina, Uruguay, and Brazil
- Tropical Fruits: Caribbean countries
Despite these differences, there were common features:
- Control of Production: The oligarchy’s political power rested on three pillars:
- Primogeniture: The eldest male inherited the entire estate, preventing the dispersal of family wealth.
- Class Inbreeding: Marriages within the same class consolidated wealth and power.
- Army: Used for internal repression and suppressing rebellions.
- Economic Growth: Based on the expansion of production through increased labor. Internal colonization and land acquisition fueled growth, but low population density and lack of labor demand kept wages at subsistence levels. The oligarchy employed quasi-feudal practices, such as debt peonage, to control labor.
- Investment: Profits were often reinvested in the same sector or used to initiate industrialization in consumer goods and export activities (e.g., ground beef, canned fish).
Foreign investors, primarily British, controlled key infrastructure like docks and railways. Productive investment was minimal, and an indirect tax system generated limited revenue due to low consumption. Consequently, most Latin American countries accumulated debt, which was often purchased by foreign investors to influence political decisions.
Financial System: A banking system emerged, comprising commercial, foreign, and mixed banks. External resources came from export earnings and foreign investments. However, the use of these resources varied, including government debt purchases, industrial investments, and discount points.
7.2. The Scramble for Africa
A new wave of colonialism gained momentum from 1882. The Berlin Conference of 1884 formalized the division of Africa among European powers, with Britain and France acquiring the most desirable territories. Germany and Belgium received less advantageous regions.
Former colonial powers like Spain and Portugal struggled to maintain their existing empires. Belgium focused on colonizing African territories, while the Netherlands concentrated on Indonesia and islands near Japan. Russia and the U.S. also emerged as colonial powers.
7.3. Western Influence in Asia: Tradition vs. Progress
Causes:
Economic:
- Search for new markets for industrial products.
- Search for new sources of raw materials due to the depletion of domestic resources.
Strategic:
- Control of vital sea lanes.
- Rivalry between European powers (e.g., Germany and France in Morocco).
Forms of Colonial Territories:
- Colonies: Direct occupation and replacement of the existing legal system with that of the colonizing country.
- Protectorates: A country assumes control over another territory while nominally maintaining its independence (e.g., Morocco).
- Open Door Policy: Political independence is respected, except in matters of trade (e.g., China).
Location:
- Overseas: Distant from the colonizing country, with some degree of autonomy for local authorities.
- Home: Adjacent to the colonizing country, with direct incorporation of the territory (e.g., Russia’s expansion into Mongolia, U.S. westward expansion).
Demography:
- Sparsely Populated: Easier to displace or assimilate the indigenous population.
- Densely Populated: Greater resistance, leading to a dual structure where indigenous customs are allowed to persist alongside European rule (e.g., India). This could result in ethnic tensions.
Consequences:
Colonies:
- Population Growth: Both through settler immigration and increased birth rates due to improved living conditions (intended to provide more labor at lower costs).
- Land Appropriation: Settlers often seized the most productive land, displacing indigenous populations and turning them into consumers and laborers.
- Decline of Local Industry: Competition from European industries often led to the decline or elimination of local industries.
- Increased Taxation: To cover administrative and military costs.
Metropolis:
- Colonial expansion could lead to economic strain on the colonizing country.
- Benefits for the private sector included tax exemptions for colonial investments and preferential trade agreements.