1. Creation, Interaction and Expansion of Economic Systems Mr. Millhouse AP World History Hebron High School

2. Creation, Interaction and Expansion of Economic Systems This theme includes:  Agricultural and pastoral production  Trade and commerce  Labor systems  Industrialization  Capitalism and Socialism

3. Foundations Unit 8000 BCE – 600 CE

4. Neolithic Revolution Traditional Economy  Hunting and gathering  Sedentary agriculture developed between 10,000 and 8,000 BCE 1 st developed in southwestern Asia Earliest method was slash- and-burn agriculture Subsistence agriculture  Herding animals (pastoralism) Slash-and-burn agriculture in northeast India

5. Development of Agriculture

6. Economic Regions

7. Early Village Economy Farming led to the rise of permanent villages  Jericho Village life led to specialized labor Development of early industry  Pottery, metallurgy, and textiles

8. Ancient Civilizations Mesopotamia, Egypt, & Indus River Valley  Irrigation led to improved agriculture  Development of cities contributed to rise of trade China  Regular rains & fertile soil minimized irrigation Olmec  Develop in rainforest; water control systems Chavin  Develop in mountains; complex irrigation

9. Nile-Indus Corridor

10. Pre-classical labor systems Slavery  Existed in all early civilizations but was relatively unimportant  Most slaves gained through military conquest Egypt  Used corvée labor to build pyramids & temples  Peasants were bound to the land  Men were organized into labor gangs of 50-100

11. Pre-classical labor systems Mesopotamia  Large number of slaves due to militaristic nature of society  Peasants lost their freedom over time Rise of debt slavery China  Zhou dynasty peasants paid a percentage of their crops to aristocrats in exchange for protection Manorial system

12. Classical Civilizations Han China  Monopolized production of iron, salt, and liquor  Rise of the Silk Road Mauryan India  Ashoka built irrigation systems and roads to promote trade Mayans  Terrace farming improved production of cotton, maize, and cacao

13. Classical Civilizations Ancient Greece  Cities, such as Athens, become centers of trade  Economy depended heavily on slavery Rome  Latifundia – large landed estates focused on commercial agriculture (olive oil, wine, wheat) North Africa was the major grain producing region  Depended on slave labor  Roman roads promoted trade and linked empire to Silk Road

14. The Silk Roads Cotton

15. Classical era labor systems China  Free peasants were the backbone of the labor force Peasants ranked just below bureaucrats but above artisans and merchants  Qin Shi Huangdi ended the manorial system “Recruited” labor to build the Great Wall  Silk weaving supplemented farm income “Men as tiller, woman as weaver”  During the Han dynasty, slaves made up less than 1% of the total population

16. Classical era labor systems Greece & Rome  Slaves never constituted more than 50% of the population  Slaves worked as domestic servants, miners, and farmers In Greece, slaves could serve as tutors In Rome, development of commercial agriculture led to the rise of slavery Rome also used slaves as gladiators and chariot racers

17. Classical era labor systems India  Caste system was based largely on job classification Farmers did not rank high in prestige Merchants had a higher social standing than they did in China or the Mediterranean  Slaves played almost no role in the economy Sudras (lowest caste) and untouchables took the place of slaves

18. Post-Classical Unit 600 – 1450

19. Arabs Did not rely heavily upon agriculture Abbasid sakk (checks) encouraged trade  Urbanization: Baghdad Dar al-Islam facilitated expansion of trade  Islamic law protected merchants  Revival of the Silk Road  Growth of Indian Ocean trade Dhows increase the volume of maritime trade

20. Indian Ocean trade routes East Africa gold salt slaves Arab dhow Chinese junk

21. Labor in the Islamic World Islamic slaves were viewed as humans rather than just property (chattel)  Slavery was seen as a method of conversion Slaves were acquired from Africa or central Asia Abbasid introduced the use of Turkish slave- soldiers  Mamluks  Janissaries (Ottoman Empire)

22. Post-Classical Empires Byzantine Empire  Manufactures glassware, jewelry, & silk  Trade a major part of the economy Mediterranean Sea, Silk Roads, Russia, etc.  Urbanization: Constantinople Sudanic Africa (Ghana, Mali, Songhai)  Trans-Saharan trade Use camel caravans to trade gold, slaves, and ivory for horses, manufactured goods, and salt  Urbanization: Timbuktu

23. Trans-Saharan trade routes

24. Post-Classical Empires Swahili Coast  Trade gold and parts of exotic animals to Islamic and Indian merchants for products from Persia, India, and China  Urbanization: Mogadishu, Kilwa, etc. Great Zimbabwe  Supplies gold to the Swahili coast

25. Tang/Song China Emphasis on internal trade  Champa rice & terrace farming  Grand Canal & flying money Song “pre-Industrial” era  Commercial economy focused on the production of silk, porcelain, & steel  Urbanization: Hangzhou

26. Post-Classical Empires Mongols  Pastoralists  Promoted trade on Silk Road via Pax Mongolica Marco Polo Japan  Villages relied on rice cultivation  World’s leader in silver production Trade silver to China for manufactured products  Development of feudalism caused peasants to become serfs

27. Medieval Europe Manorialism  Self-sufficient agricultural estates worked by serfs  Three-field system & moldboard plow Trade revived after 1000 CE  Rise of merchant & craft guilds  Crusades led to an increase in demand for Asian products  Rise of Italian merchants & the Hanseatic league  Urbanization: Italian cities & Paris

28. Hanseatic League (1400s-1600s)

29. Post-Classical Empires Aztecs  Chinampas  Pochteca monopolized long- distance trade  Tribute system Inca  Built 9,500 miles of roads to facilitate trade  Inca socialism  Use terrace farming to grow potatoes  Mita labor

30. Early Modern Era 1450 - 1750

31. Rise of World Trade European exploration  Seeking easier access to Asian luxury products  Columbus discovery of the Americas  Vasco da Gama reached India in 1498  Spain established Manila in 1571 Manila galleons connect Asian markets to American silver Trade Empires  Spain/Portugal in the 16 th century  Netherlands (Dutch) in the 17 th century  England (Great Britain) in the 18 th century

32. European Colonization

33. World Trade after 1571

34. Dutch Trade Empire

35. Western Europe Commercial Revolution  Rise of a middle class (bourgeoisie) and proletariat  Mercantilism Rise of manufacturing Encouraged colonization  Joint Stock Companies Privately owned with government support Ex. Dutch East India Co., Royal African Co., Virginia Company

36. Economy of New Spain Encomiendas  Manorial system in the New World  Declined with the death of the natives Plantations  Majority of labor provided by African slaves

37. Economy of New Spain Mining  Silver “the Heart of the Empire”  Largest mine was Potosi  Mita labor Haciendas  Estates focused on cash crops & livestock

38. Africa & the Slave Trade Commercial relationship developed between West African kingdoms & Europe  Triangle Trade or the Atlantic System Slavery was common in Africa Slave Trade  Trade continued with Muslim merchants  Increase demand caused by sugar plantations  Atlantic slave trade altered traditional African trade routes

39. African Slave Trade

40. Emancipation of Slaves

41. Ming Dynasty Economic Recovery  Rebuilt irrigation systems destroyed by the Mongols  Increased production of silk textiles & porcelain “Silver Sink”  Single-whip tax system  Chinese demand for silver contributed to rise of world trade Limited trade to Macao/Canton

42. Voyages of Zheng He Established tributary relationships throughout the Indian Ocean  Exchanged silk & porcelain for other luxuries

43. Tokugawa Japan Portugal established trade relations in 1543 Trade silver to China in exchange for luxury products  2 nd in silver exports behind Spain Began isolation in 1640s  Allowed Dutch & Chinese to trade at Nagasaki Urbanization led to rise of a merchant class

44. Russia Peter the Great modernized the economy focused on mining and metallurgy Serfdom  Began under Mongol occupation  Provided cheap labor for Russian agriculture  Could be bought and sold

45. Mughal Empire Continued manufacturing cotton textiles British establish trading posts at Madras and Bombay in the early 1600s  British East India Company continued to expand their interests into the 1700s

46. The Modern Era 1750-1914

47. Causes of the Industrial Revolution Favorable natural resources Population Pressure  Abundance of labor Growth of large manufacturing sector  Cottage industry (putting-out system) Advantages in world trade Technological innovation Government support of business

48. Industrial Technology Cottage Industry (putting-out system) Mechanization of weaving  Cotton that took an Indian worker 500 hours to spin took a machine in England 80 minutes to spin Iron smelting  Bessemer steel process Energy  Steam engine and electricity Transportation  Canals, steamboat, railroads

49. Economic Effects of Industrialization Labor changes  Factory labor was dangerous and toilsome  Initially women & children work in factories  Rise in white collar jobs for new middle class  High unemployment rates  Labor unions were formed to protect workers Rise of consumer culture Standard of living increases Frequent economic depressions

50. Economic Effects of Industrialization New economic theories  Capitalism Direct attack on mercantilism  Positivism  Socialism The Communist Manifesto by Karl Marx and Friedrich Engels Communism

51. Global Industrialization Industrialization turned nations into either manufacturers of consumer goods or suppliers of raw materials Manufacturers: Western Europe, the United States, Japan, Russia(?) Suppliers: the Ottoman Empire, Egypt, China, India Africa, Latin America, Southeast Asia, Australia

52. Spread of Industrialization in Europe

54. Russian Industrialization Caused by Russian defeat in Crimean War Abolish serfdom in 1861  Do NOT make major reforms to help peasants Limited industrialization  Trans-Siberian railroad  Focus on heavy industry 2 nd in petroleum and 4 th in steel production by 1900 Do NOT produce consumer goods  Lower class women move to cities for factory work

55. Japanese Industrialization Ends isolation in 1853 Abolish samurai class Economic modernization  Industrialization  Zaibatsu Mitsubishi  Women work in silk factories

56. Africa: 1750-1914 British ended the slave trade in 1807; the United States in 1808  England bans slavery in 1833; U.S. in 1863; Natural resources (gold, ivory, palm oil) replace slaves in trade with Europe Muhammad Ali modernizes Egypt  Forced peasants to grow cotton for export  Built irrigation canals and railroads  Successors build the Suez Canal Makes Egypt one of the most strategic places on Earth

57. The Middle East: 1750-1914 “Sick Man of Europe”  Declining agricultural revenues  Large debts to foreign nations  European imports exceed exports Caused massive inflation Reforms  Creation of a central bank  Factories opened in urban areas Relied heavily on European investment and technology

58. Asia: 1750-1914 India  British transform India from supplier of textiles to exporter of raw cotton Also export opium, coffee, and tea China  Opium War ends Canton system Opium trade reverses causes silver to flow from China Southeast Asia  British establish Singapore and colonize other areas to gain access to raw materials Indentured Servitude  Thousands of Indians, Chinese, and Japanese migrated to the Caribbean to replace slave labor

59. The Americas: 1750-1914 Latin America supplied raw materials to the West in exchange for manufactured goods  Influence switched from Spain to England  Monroe Doctrine Indentured servitude & immigration replace slavery Mexico and Argentina undergo limited industrialization in the late 1800s  Porfirio Diaz

60. The Twentieth Century 1914 – Present

61. The West Great Depression  Causes German economic depression, France & England unable to pay war debt; surplus in agriculture & industry; U.S. stock market crash (October 1929); U.S. bank failures  Effects Economic nationalism, expansion of welfare state (New Deal in U.S.), increased government regulation of the economy; political radicalization

62. The West: Post-WWII Transition from secondary economy (industrial) to a tertiary economy (service)  Growth of white-collar jobs Expansion of the welfare state Economic cooperation  European Economic Community (eventually EU)  IMF and World Bank Multinational corporations  Volkswagon built cars in Mexico for U.S. consumers

64. Eastern Europe Russia  New Economic Policy Lenin’s response to the Great Depression; minimal impact  Collectivization of agriculture  Five-Year Plans Command Economy

65. Latin America Export raw materials (crops, rubber, etc.) for manufactured goods  Industry dominated by Europe  Great Depression had major impact Exports fell by over 65% Import Substitution Industrialization Attempts at economic nationalization was often opposed by the U.S. NAFTA

66. Africa Export raw materials (cocoa, palm oil, gold, etc.) for manufactured goods  Colonial rulers often forced Africans to work in mines or on plantations Post-Independence  Debt  Emerging markets Low GDP with opportunity for economic growth  Violence over resources Conflict diamonds

67. The Middle East Post-Independence  Often remained dependent upon trade with Europe  Impact of oil economy OPEC Allowed nations to gain tremendous wealth  Many countries have used oil wealth to invest in other industries Ford, Citicorp, AIG, etc.

68. East Asia Japan, Inc.  Government works closely with business Little Tigers  South Korea – steel, automobiles, etc.  Taiwan – textiles then computers  Hong Kong – textiles then banking  Singapore – shipping China  Five-years plans & collectivization under Mao  Four modernizations under Deng Xiaoping Semi-autonomous regions