Economic and Technological advancement in the 19th Century

Introduction

With trade routes and the exchange of technology and knowledge, the economy also started to grow and by the 19th century, the world economy grew with growing social, and cultural interactions which reshaped societies and external relations. But certain economists had structured the movements of international exchanges into three.

• This is the trade that is referred to as trade in goods.

• The flow of labor

• The most important one is the flow of capital from long-distance locations which is either short-term or long-term.

To understand the working of the world economy it is essential to look at the 3 flows together rather than looking at them separately.

The Making of the World Economy

The world economy was not built by a single country or by a single path, it took a lot of complex inventions and interlinkage between the world to build the economy. Britain was the world leader at that time and Britain was known as the Banker of the world. It was from Britain that the capital flowed to other regions for industrial construction. Britain had much of colonies, so it was easy for her to import and export materials and manpower as Britain liked.

Through closely analyzing the world economy we can look at an example from which we shall get to know the working of the world economy and here the analysis of food production and changing consumption across Europe will be studied. It is understood that the main aim of a country is to be self-sufficient without depending on the other but in Britain, things took a turn and more self-sufficiency led to lower living standards.

What happened?

• Population played a huge role because by the 19th century due to better food supply and better immunity life expectancy increased and the population started growing rapidly which resulted in an increase in demand for food grains.

• The demand for agricultural products increased which led to an increase in the prices of food grains.

• To deal with the rising demand Britain had to import grains which were compared to domestic produced grains, but this had a consequence as imports rose large packs of land remained uncultivated which pushed migration to overseas or cities in search of jobs to urban cities.

• The consumption rose coupled with lower food prices and this led to faster industrial growth which led to higher incomes which resulted in higher imports.

To satisfy the imports to Britain, major countries like eastern Europe, Russia, America, and Australia cleared large areas and increased food Production.

Infrastructure Development

The lands were cleared and labor was increased but the production couldn’t be completed without transporting the produce. So for such purpose infrastructure had to be developed −

• Railways needed to be developed and it was to be linked with agricultural centers and with the port.

• Extending the number of harbors was important for the new cargo and ships.

• People built settlements and houses near and that needed to be cultivated For all these activities they needed labor and capital which came from London and labor started flowing from Australia, and America and due to high migration and the need for work force. It is said that about 50 million people migrated from Europe to America and Australia in the 19th century.

• Some of the development can be traced to western Punjab where Britain constructed a series of canals to divert water to the fertile ground so they could grow wheat and cotton for export. The construction of these agricultural canals paved the way for areas known as Canal colonies as the new irrigated plots accommodated settlements.

• So by 1890, the global agricultural economy had been created and changes that were introduced in the labor movement and capital flows and technologies made the world more interlinked and food and human resource came from all over the world. The rapid increase in production can be ascertained from the fact that between 1820 and 1914 world trade had multiplied 25 to 40 times and nearly 60% of trade came from primary products such as wheat, cotton, and minerals such as coal.

Technology as an Integral Part of the World Economy

The making of ships, telegraphs, and railways did impact the economy but what was the role that technology played in this transformation? Technology made the process of manufacturing and shipping cost-effective and it saved time for the products to reach the buyer. It is better to explain with the following example −

• Meat shipment − Meat was shipped from America to Europe as live animals rather than being chopped and packed but this was not cost-friendly as the live animals took more space and some of them would be dead by the time it reached its destination. As meat was tough to procure, its demand was high and it was not afforded by the poor this situation was only solved by the advent of refrigerators which made the transport of perishable products more budget- friendly.

Conclusion

This gave new dawn to the shipping industry because now meat was transported as frozen meat from America, Australia, or New Zealand to Europe. This promoted better livelihood as the poor could now afford meat and their immunity and their capacity to work improved which resulted in a better output of work and better income with all of this coupled together made exponential growth in industries and the global economy

FAQs

Qns 1. Note on Corn-laws?

Ans. When Britain’s demand for food grains started rising and the agricultural products started to cost more which pushed prices of food grains high to contain such a rise Britain contained the import of food grains and corn. The law allowing this was called Corn- laws.

Qns 2. List the major inventions in the 19th century?

Ans.

• In 1800 Count Alessandro Volta invented the battery which paved paths to generators and automobiles.

• Humphry Davy invents the lamp that runs on electricity.

• The first steam locomotive designed by George Stephenson made its debut in 1814.

• As a precursor of the typewriter, W.A. Burt invents the typographer.

• In 1834 Jacob Perkins invented the ice machine the precursor to the refrigerator.

• Alfred Noble invented the dynamite in 1867.