Conquest, Disease And Trade

Conquest, Disease And Trade

• In 16 ^th century after European sailors found a sea route to Asia, they discovered America.
• The Indian subcontinent had been known for bustling trade with goods, people, customs and knowledge . It was a crucial point in their trade network.
• After the discovery of America, its vast lands and abundant crops and minerals began to transform trade and lives everywhere.
• Precious metals, particularly silver from mines located in Peru and Maxico enhanced Europe’s wealth and financed its trade with Asia.
• The Portuguese and Spanish conquest and colonization of America was under way. The most powerful weapon of the Spanish conquerors was not a conventional military weapon but germs of small pax which they carried. America’s original inhabitants had no immunity against such type of diseases.

A WORLD ECONOMY TAKES SHAPE:

• Abolition of the Corn law.
• Under pressure from lauded groups the government restricted the import of food grains.
• After the corn laws were scrapped, food could be imported into Britain more cheaply than it could be produced in the country.
• British farmers were unable to compete with imports. Vast areas of land were left uncultivated.
• As food prices fell, consumption in Britain rose.
• Faster industrial growth in Britain led to higher incomes and more food imports.

BRETTON WOODS INSTITUTIONS:

• To deal with external surpluses and deficits a conference was held in July 1944 at Bretton woods in New Hampshire U.S.A.
• International Monetary fund and world Bank were set up to finance post war reconstruction.
• The past war international economic system is known as Bretton woods systems.
• This system was based on fixed exchange rates.
• IMF and World Bank are referred as Bretton Woods Twins.
• U.S has an effective right of veto over key IMF and World Bank.

NEW INTERNATIONAL ECONOMIC ORDER – NIEO:

• Most developing countries did not benefit from the fast growth of Western economies in 1950’s & 60’s.
• They organized themselves as a group. The group of 77 or G-77 to demand a new international economic order (NIEO).
• It was a system that would give them real control over their natural resources more development assistance, fairer prices for raw materials and better access for their manufactured goods in developed countries markets.