Economic imperialism is when one country has significant economic power over another country
- In economic imperialism, its usually the economy majorly affected and less of the politics
Economic Imperialism in Asia
India
- Economic imperialism started with the British East India Company
- With British demand of cotton, India’s #1 export became cotton
China
- British wanted huge demands of porcelain, silk, and tea
- However, British wanted more stuff from China than China wanted stuff with Britain
- British, to get Chinese to buy British goods to fix this trade imbalance, force Indian farmers to grow opium to sell to China
- Opium is a highly addictive drug
- As a result many Chinese people got addicted to opium
- Chinese rose up against British and their opium in the Opium Wars
- British thanks to their superior military thanks to the Industrial Revolution easily won the wars
- The result was British basically taking over China economically
- Forced China to open additional ports of trade to Britain
- Also made China sign a free trade agreement, which also included opium
- Became a cautionary tale for the rest of the world
- Industrialized nations will crush non-industrialized nations every time
Spheres of Influence
- Japan, France, Germany, Russia, and the United States sought the same trading privileges that Britain attained after winning the Opium Wars
- By end of the 1800s, these countries forced China to give them exclusive trading rights in specific areas known as spheres of influence
Economic Imperialism in Latin America
- In 1850s, US, Britain, and Spain were interested in Latin America’s raw resources, low wage workers, and markets to sell goods
Role of United States
- With all the new wealth US got from the Second Industrial Revolution, the US invested heavily in the industrialization of Mexico and Cuba
- Goal was to build railroads and develop industries like meat packing, guano extraction, and mining
- US did this to become economically dominant in Latin America
Investments in Argentina
- Britain funded the Port of Buenos Aires, to facilitate the massive import and export of raw materials and manufactured goods
- Britain got meat and livestock from Argentina’s pampas (grasslands) that were ideal for cattle grazing
- Also got wheat, wool, and minerals
Mining in Chile
- During this time it was a Spanish colony
- Economy was initially dependent on export of agriculture
- However, copper was discovered and eventually became 1/3 of all of its exports
Banana Republics
- Banana republics were politically unstable countries, primarily in Central America and the Caribbean, that heavily relied on the export of bananas to powerful foreign companies.
- Often had weak governments, corruption, and economic dependence on foreign corporations
- Especially from US corporations
- Fruit companies like the US based United Fruit Company exerted immense control over the economies and politics of these countries
- They shaped the country’s policies to benefit their own interests and to exploit cheap labor and resource
- Led to significant wealth disparities, social inequality, and limited economic diversification
- Classic example of how economic imperialism the exploits countries to benefit imperial powers