CBSE Class 10 History Chapter 3 The Making of A Global World Notes, Download PDF

1 The Pre-modern World 

Globalisation refers to an economic system that has emerged in the last 50 years or so. But, the making of the global world has a long history – of trade, of migration, of people in search of work, the movement of capital, and much else. From ancient times, travellers, traders, priests and pilgrims travelled vast distances for knowledge, opportunity and spiritual fulfilment or to escape persecution. As early as 3000 BCE, an active coastal trade linked the Indus Valley civilisations with present-day West Asia.

1.1 Silk Routes Link the World

The Silk Routes exemplify the dynamic trade and cultural connections that flourished in the pre-modern era between geographically distant regions. Historians have identified numerous overland and maritime silk routes that spanned vast areas of Asia, interconnecting the continent and establishing vital links between Asia, Europe, and northern Africa. These routes facilitated the exchange of valuable commodities such as textiles and spices from India, while also facilitating the flow of precious metals, including gold and silver, from Europe to Asia.

1.2 Food Travels: Spaghetti and Potato 

The realm of food provides numerous illustrations of cultural exchange across vast distances. Traders and travelers played a pivotal role in introducing new crops to different regions. For instance, the concept of ready-to-eat food items like noodles originated in China and eventually made their way westward, evolving into the beloved dish known as spaghetti. Our ancestors, five centuries ago, were unfamiliar with staple foods such as potatoes, soybeans, groundnuts, maize, tomatoes, chilies, sweet potatoes, and more. Many of these now-common foods actually originated from the original inhabitants of America, the American Indians.

1.3 Conquest, Disease and Trade 

The Indian Ocean served as a thriving trade hub for centuries, facilitating the exchange of goods, people, knowledge, and culture. The arrival of Europeans redirected these trade routes towards Europe, while the abundant resources of America transformed global commerce. The Portuguese and Spanish led the conquest and colonization of America in the 16th century. Surprisingly, Europeans’ most potent weapon was not traditional warfare but the unintentional spread of diseases like smallpox, resulting in devastating consequences. Europe experienced poverty and hunger until the 19th century, contrasting with the wealth of China and India, which were among the world’s richest nations until the 15th century. However, China limited overseas interactions and withdrew into isolation, leading Europe to emerge as the center of global trade, shaping the course of history.

2 The 19th Century (1815-1914) 

During the 19th century, a multitude of economic, political, social, cultural, and technological influences intertwined, leading to profound societal transformations and the restructuring of international relations. Economists have identified three key flows or movements that played significant roles in this era.

1. The first flow pertains to the movement of trade, primarily encompassing the exchange of goods such as textiles or agricultural produce like wheat.
2. The second flow involves the migration of labor, as people sought employment opportunities in different regions.
3. The third flow encompasses the movement of capital, encompassing both short-term and long-term investments made across vast distances.

These three interconnected flows played a pivotal role in shaping the economic landscape and societal dynamics during this period of history.

2.1 A World Economy Takes Shape 

In the 19th century, Britain’s pursuit of self-sufficiency in food resulted in lower living standards and social conflict due to population growth. The imposition of corn laws restricted corn imports, causing British agriculture to suffer and leaving vast areas uncultivated. This led to mass urbanization and overseas migration. However, as industrial growth increased incomes and food imports, food prices in Britain declined. To meet the British demand, lands were cleared in Eastern Europe, Russia, America, and Australia to expand food production. The development of railways and infrastructure required capital and labor, with London providing financial support and people emigrating from Europe to America and Australia. By 1890, a global agricultural economy had emerged, adapting to changes in labor movements, capital flows, ecologies, and technology. In British India’s West Punjab, an irrigation canal network transformed arid land into fertile agricultural areas for wheat and cotton production. Worldwide cultivation of cotton expanded to meet the needs of British textile mills.

2.2 Role of Technology 

The 19th century witnessed transformative technological advancements such as railways, steamships, and the telegraph. However, these inventions were often driven by broader social, political, and economic factors. Colonization played a significant role in stimulating investments and improving transportation infrastructure, resulting in faster railways, lighter wagons, and larger ships. These developments facilitated the cost-effective and swift transportation of food from distant farms to final markets. Live animal shipments from America to Europe were common until the 1870s, providing Europeans with access to meat, which was previously considered a luxury. This diversification of the diet allowed many to break away from the traditional reliance on bread and potatoes, incorporating meat, butter, and eggs into their meals.

2.3 Late 19th-century Colonialism 

The late 19th century saw trade and markets thrive, but it also brought negative consequences as closer ties to the global economy resulted in the loss of freedoms and livelihoods for many. In 1885, European powers gathered in Berlin to partition Africa, leading to extensive territorial gains for Britain, France, Belgium, and Germany. The United States also became a colonial power by acquiring former Spanish colonies in the late 1890s.

2.4 Rinderpest, or the Cattle Plague 

In the 1890s, Africa experienced the rapid spread of a devastating cattle plague that had severe repercussions on people’s livelihoods and the local economy. Africa, with its abundant land and relatively small population, attracted Europeans who sought to exploit its vast resources of land and minerals. Europeans arrived in Africa with the intention of establishing plantations and mines for exporting crops and minerals back to Europe. However, they encountered an unforeseen challenge—a shortage of available labor willing to work for wages. To address this, inheritance laws were altered, limiting land inheritance to only one family member. In the late 1880s, the introduction of Rinderpest in Africa further exacerbated the situation. The disease was brought by infected cattle imported from British Asia to feed Italian soldiers during the invasion of Eritrea in East Africa. The devastating impact of the cattle plague resulted in the destruction of African livelihoods.

2.4 Indentured Labour Migration from India 

Summary: Indentured labor exemplifies the complex nature of the 19th-century world, characterized by simultaneous economic growth and profound hardships. In India, laborers were hired under contractual agreements, predominantly from regions such as eastern Uttar Pradesh, Bihar, central India, and certain arid districts of Tamil Nadu.

The primary destinations for Indian indentured migrants were the Caribbean islands (particularly Trinidad, Guyana, and Suriname), Mauritius, and Fiji. Indentured workers were also recruited for tea plantations in Assam. Described as a “new system of slavery,” 19th-century indenture carried oppressive connotations. In Trinidad, the annual Muharram procession transformed into the lively carnival known as “Hosay,” uniting workers of various races and religions.

The protest religion of Rastafarianism is believed to have evolved as a reflection of the social and cultural ties with Indian migrants in the Caribbean. Beginning in the 1900s, Indian nationalist leaders actively opposed the abusive and cruel aspects of indentured labour migration. Ultimately, the system was abolished in 1921, marking the end of this chapter in history.

2.5 Indian Entrepreneurs Abroad 

Summary: In order to engage in export agriculture for the global market, individuals required substantial capital. Peasants, such as the Shikaripuri shroffs and Nattukottai Chettiars, were among the various groups of bankers and traders who provided financial support in Central and Southeast Asia. These financiers utilized their own funds or borrowed from European banks to finance agricultural ventures and enable the production of food and other crops for export.

2.6 Indian Trade, Colonialism and the Global System 

Cotton from India was regularly shipped to Europe, but the imposition of tariffs on cloth imports in Britain led to a decrease in the importation of fine Indian cotton. Throughout the 19th century, British manufacturers inundated the Indian market with their own goods. India played a vital role in balancing Britain’s deficits and contributed significantly to the global economy of the late 19th century. Additionally, Britain’s trade surplus in India served as a source of funding for various expenses, including private remittances sent by British officials and traders, interest payments on India’s external debt, and pensions for British officials stationed in India.

3 The Inter-war Economy 

The First World War (1914-1918) primarily took place in Europe, but its consequences reverberated globally. The war triggered extensive economic and political turmoil and set the stage for another devastating conflict, impacting regions far beyond the war’s epicenter.

3.1 Wartime Transformations 

The First World War pitted the Allies, consisting of Britain, France, and Russia (later joined by the US), against the Central Powers, which included Germany, Austria-Hungary, and Ottoman Turkey. This global conflict spanned over four years and involved the major industrial nations of the time. It was widely recognized as the first modern industrial war, marked by the extensive utilization of machine guns, tanks, aircraft, chemical weapons, and other advanced technologies. The war necessitated the restructuring of industries to meet the demands of war-related production.

During this period, Britain sought substantial financial assistance and borrowed significant amounts from US banks and the American public, leading to a transformation of the United States from an international debtor into an international creditor. The war not only shaped the military landscape but also had profound economic implications, influencing the financial dynamics between nations.

3.2 Post-war Recovery

Summary: Following the First World War, Britain, previously the world’s leading economy, encountered a prolonged crisis. While Britain was engaged in war efforts, industries in India and Japan had progressed significantly. As a result, Britain faced challenges in reestablishing its former dominance in the Indian market and competing with Japan on the international stage. Additionally, Britain was burdened with substantial external debts at the war’s conclusion. The post-war period was characterized by enduring anxiety and uncertainty regarding employment opportunities.

3.3 Rise of Mass Production and Consumption 

The US economy quickly recovered and experienced strong growth in the early 1920s. Mass production, pioneered by Henry Ford in Detroit with the introduction of the TModel Ford, became a significant characteristic of the US economy since the late 19th century. This approach to industrial production, known as Fordist practices, expanded across the US and was adopted in Europe during the 1920s. The demand for household appliances like refrigerators and washing machines surged, supported by loans. By 1923, the US resumed exporting capital and emerged as the largest overseas lender globally.

3.4 The Great Depression 

The onset of The Great Depression occurred around 1929 and persisted until the mid-1930s, causing devastating declines in production, employment, incomes, and trade worldwide. Agricultural regions and communities were particularly hard-hit during this period. The depression resulted from a combination of factors. Firstly, there was an excess of agricultural production. Secondly, in the mid-1920s, many countries relied on loans from the US to finance their investments. The withdrawal of these loans had varying impacts on the rest of the world. The United States itself experienced severe consequences from the depression. Unfortunately, the US banking system collapsed, leading to the bankruptcy and closure of numerous banks.

3.5 India and the Great Depression 

During the depression, Indian trade suffered immediate repercussions as agricultural prices sharply declined. Despite this, the colonial government persisted in demanding high revenues from the farmers. As a result, India turned to exporting precious metals, particularly gold. The rural areas of India experienced significant unrest during this time, leading to Mahatma Gandhi’s launch of the civil disobedience movement in 1931, which coincided with the peak of the depression.

4 Rebuilding a World Economy: The Post-war Era 

Two decades after the First World War, the Second World War commenced, pitting the Axis powers (including Nazi Germany, Japan, and Italy) against the Allies (consisting of Britain, France, the Soviet Union, and the US). The war spanned six years and encompassed land, sea, and air battles, resulting in extensive economic devastation and social upheaval. The post-war period was shaped by two significant influences: the rise of the US as the dominant economic, political, and military power in the Western world, and the emergence of the Soviet Union as a dominant force.

4.1 Post-war Settlement and the Bretton Woods Institutions

The inter-war economic experience highlighted two important lessons. Firstly, the sustainability of mass production relies on effective mass communication. Secondly, a country’s economic connections with the global community were deemed crucial. The Bretton Woods conference resulted in the establishment of the International Monetary Fund (IMF) to address external surpluses and deficits among member nations. Additionally, the International Bank for Reconstruction and Development, commonly known as the World Bank, was created to provide financial support for postwar reconstruction efforts. Both the IMF and the World Bank commenced their financial operations in 1947.

4.2 The Early Post-war Years 

An era of unprecedented growth of trade and income was inaugurated by the Bretton Woods for the Western industrial nations and Japan. During this decade, technology and enterprise were spread worldwide.

4.3 Decolonisation and Independence 

Following the Second World War, numerous regions remained under European colonial rule, prompting the establishment of the IMF and the World Bank to address the financial needs of industrialized nations. However, in the late 1950s, these institutions began shifting their focus towards developing countries. Despite the rapid growth experienced by Western economies in the 1950s and 1960s, most developing nations did not benefit. In response, these countries formed the Group of 77 (G-77) and called for a new international economic order (NIEO). The NIEO aimed to grant developing nations greater control over their natural resources, increased development assistance, fairer prices for raw materials, and improved access to developed markets for their manufactured goods.

4.4 End of Bretton Woods and the Beginning of ‘Globalisation’

The US faced diminished financial and competitive power in the 1960s due to escalating costs associated with its overseas engagements. In the mid-1970s, the international financial system underwent changes, leading to unemployment in the industrialized world. Multinational corporations (MNCs) started relocating their production to low-wage Asian countries, with China emerging as a favoured investment destination. Over the past two decades, significant economic transformations have occurred in countries like India, China, and Brazil, reshaping the global economic landscape.