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AP World History: Modern
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🌍ap world history: modern review

6.4 Global Economic Development from 1750 to 1900

Verified for the 2025 AP World History: Modern examCitation:

Introduction

Between 1750 and 1900, industrialization and imperialism dramatically reshaped the global economy. Nations that industrialized rapidly, especially in Western Europe and North America, began extracting raw materials from colonies to supply their growing factories. This fostered export-oriented economies in Latin America, Africa, and Asia, and led to major environmental transformations.

New technologies like railroads, steamships, and telegraphs facilitated the movement of goods and communication across empires. While industrialized nations experienced economic growth and the rise of a consumer culture, colonized regions were often impoverished by extractive labor systems and loss of sovereignty.


Export Economies and Global Trade Networks

Colonial territories were often restructured into export economies that focused on producing raw materials and cash crops to supply industrializing states. Colonizers invested in infrastructure—railroads, ports, and telegraphs—to facilitate this extraction and transport.

Export CommodityMajor Regions of ExtractionIndustrial Use / Demand Driver
CottonU.S. South, Egypt, IndiaTextile manufacturing in Britain and Europe
RubberCongo, Amazon Basin, Southeast AsiaTires, machinery belts, electrical insulation
Palm OilWest Africa, Southeast AsiaSoap, candles, lubricants for machines
GuanoPeru, ChileFertilizer to replenish European agricultural lands
CopperChile, Congo, U.S.Electrical wiring, industrial goods
TinMalaya, Bolivia, IndonesiaCanning and metal alloys
Gold & DiamondsSouth AfricaWealth storage, jewelry, industrial cutting tools
IvoryCentral & East AfricaLuxury items (piano keys, carvings, billiard balls)

Technological Innovations and Economic Integration

New transportation and communication technologies during this period connected export economies more tightly to global markets. These advancements were often funded by imperial powers to speed up raw material extraction and export.

Key Technological Advancements

  • Railroads: Connected interior regions to coastal ports; critical in India, Africa, and the American West.
  • Steamships: Allowed for faster, reliable ocean travel with predictable schedules.
  • Telegraphs: Enabled real-time communication across empires and between capitals and colonies.
  • Canals: The Suez Canal (1869) and Panama Canal (completed in 1914) dramatically shortened trade routes.

Agricultural Developments and Labor Systems

Colonizers pushed many indigenous populations to grow cash crops rather than food crops. This transformed local economies, creating dependencies on global commodity prices and often triggering famines.

  • Cash Crops: Sugar, cotton, coffee, tea, tobacco, cocoa.
  • Land Seizure: European powers imposed private property laws, displacing smallholders.
  • Enclosure & Plantation Models: Land was consolidated into large, export-focused estates.
  • Labor: Coerced, indentured, and wage labor systems replaced or coexisted with traditional labor structures.


Environmental Impact: Export-oriented monoculture exhausted soils, increased deforestation, and disrupted biodiversity across colonies.


Environmental and Economic Consequences

Export economies drove environmental degradation and further entrenched colonial dependence on imperial economies.

Impact TypeDescription
EnvironmentalDeforestation, erosion, loss of biodiversity due to monoculture & mining
EconomicProfits went to imperial powers; colonies remained underdeveloped
SocialLabor hierarchies formed based on race and class; local artisans displaced

De Beers and the Mining Economy

A striking example of resource extraction was the growth of De Beers Consolidated Mines, founded by Cecil Rhodes in 1888.

  • Controlled up to 90% of global diamond production by early 1900s.
  • Operated in southern Africa, often under brutal labor regimes.
  • Profits fueled further imperial expansion and justified racial segregation (e.g., apartheid structures in South Africa).

Global Economic Inequality and Dependency

While industrialization led to massive economic growth in Europe and North America, it also increased dependency and underdevelopment in colonized regions. These regions were locked into the global economy as producers of raw materials and consumers of finished goods.

RegionRole in Global Economy (1750–1900)
Western EuropeIndustrial core; produced manufactured goods
U.S. & JapanRising industrial powers
Latin AmericaExported cash crops, minerals; dependent economies
AfricaSource of raw materials; colonized and exploited
South/Southeast AsiaPlantation agriculture; raw material extraction

Key Takeaways

  • The global economy became increasingly interconnected between 1750–1900 through industrialization, imperialism, and infrastructure.
  • Colonies were transformed into resource extraction zones, leading to underdevelopment, cultural disruption, and ecological harm.
  • Technological advances made global trade faster and more efficient but primarily benefited industrial powers.

Key Terms to Review (53)

Agricultural Developments: Agricultural developments refer to the advancements and innovations in farming practices, techniques, and technology that significantly increased agricultural productivity and efficiency. These changes laid the groundwork for transforming economies from agrarian-based systems to more industrialized ones, particularly between 1750 and 1900. Innovations such as crop rotation, selective breeding, and the introduction of new machinery drastically improved food production, which in turn supported growing populations and fueled urbanization.
Apartheid in South Africa: Apartheid was a system of institutionalized racial segregation and discrimination enforced in South Africa from 1948 to the early 1990s. It aimed to maintain white domination while controlling the rights and movements of non-white South Africans. The policies of apartheid significantly impacted economic development and social dynamics in South Africa, leading to national and international calls for reform and resistance against this oppressive regime.
British South Africa Company: The British South Africa Company was a chartered company founded in 1889, primarily aimed at the economic exploitation and development of Southern Africa, particularly in areas that are now Zimbabwe and Zambia. The company played a significant role in the expansion of British imperial interests in the region, facilitating the extraction of resources and the establishment of colonial settlements, which directly contributed to the broader trends of global economic development from 1750 to 1900.
Cash Crops: Cash crops are agricultural products grown primarily for sale and profit rather than for personal consumption. These crops have played a crucial role in shaping global trade patterns and economies, influencing social structures and labor systems across continents. Their significance expanded notably during periods of exploration and colonization, as they were often cultivated in colonies to meet the demands of European markets.
Cecil Rhodes: Cecil Rhodes was a British imperialist and businessman known for his role in the expansion of British influence in southern Africa during the late 19th century. He founded the De Beers diamond company and played a key role in the establishment of British territories in Africa, which had lasting impacts on global economic development during this period.
Colonialism: Colonialism is the practice of acquiring control over another country or territory, establishing settlements, and exploiting its resources and people for the benefit of the colonizing power. This often involves political domination and cultural assimilation, resulting in significant social, economic, and political changes in the colonized regions.
Copper Mines: Copper mines are industrial sites where copper ore is extracted and processed for various uses, notably in electrical wiring, construction, and manufacturing. During the period from 1750 to 1900, the demand for copper surged due to industrialization and technological advancements, making these mines significant contributors to global economic development and trade.
Copper: Copper is a reddish-brown metal that has been used by humans for thousands of years, primarily in the production of tools, weapons, and currency. During the period from 1750 to 1900, copper became increasingly significant due to the Industrial Revolution, which drove demand for copper in electrical wiring, plumbing, and various machinery, ultimately transforming global economies.
Cotton: Cotton is a natural fiber harvested from the cotton plant, widely used for making textiles and clothing. Its significance spans trade routes and economic systems, as it became a key commodity in global markets, particularly during periods of industrialization and global economic expansion.
Crop Varieties: Crop varieties refer to the different genetic types or cultivars of plants that are cultivated for food, fiber, or other agricultural products. These varieties can be selectively bred to enhance specific traits such as yield, disease resistance, and adaptability to various climates, which became increasingly important during the period of economic development from 1750 to 1900 as agricultural practices evolved.
Deforestation: Deforestation refers to the large-scale removal of trees from forested areas, often resulting in damage to the quality of the land. This process is closely linked to trade and economic activities, as forests are cleared for agriculture, urban development, and resource extraction. The implications of deforestation extend beyond environmental degradation, affecting global economies and technological advancements in resource management.
De Beers Mining Company: De Beers Mining Company is a multinational corporation founded in 1888 that specializes in diamond exploration, mining, and marketing. It played a crucial role in shaping the global diamond market and establishing diamonds as a symbol of wealth and status during the late 19th and early 20th centuries, contributing to significant economic development in Southern Africa.
Diamonds: Diamonds are precious gemstones formed deep within the Earth's mantle under high-pressure and high-temperature conditions. During the 19th century, the discovery of diamond deposits in places like South Africa significantly impacted global economic development, as these gems became symbols of wealth and luxury, influencing trade, colonial expansion, and social hierarchies.
Enclosure Movement: The Enclosure Movement was a series of legislative acts that transformed common land into privately owned property in England during the 18th and 19th centuries. This shift significantly impacted agricultural practices, leading to increased efficiency but also displacing rural workers. By consolidating land, it played a crucial role in the transition to modern agriculture and laid the groundwork for the Industrial Revolution by creating a labor force for urban factories.
Export Economies: Export economies are economic systems that rely heavily on exporting goods and services to generate income and drive growth. This approach often emphasizes the production of cash crops, raw materials, or manufactured products tailored for international markets. The rise of export economies during the period from 1750 to 1900 was closely linked to industrialization, globalization, and shifts in trade patterns, impacting various regions around the world.
Export Economy: An export economy is a type of economic system that relies heavily on selling goods and services to foreign markets, rather than focusing on domestic consumption. This economic model often shapes the political, social, and cultural landscape of a region, as countries may prioritize the production of specific commodities for export, leading to dependency on global markets and fluctuations in international demand. During the period from 1750 to 1900, many regions developed export economies, particularly in response to industrialization and the growing demands of global trade.
Germany: Germany is a nation-state in Central Europe that became a unified country in 1871, playing a crucial role in various global events and conflicts from the late 19th century onwards. Its industrial growth, nationalistic movements, and political ambitions significantly influenced the course of European history, particularly during major wars and economic developments.
Global Consequences of Industrialization: The global consequences of industrialization refer to the widespread and transformative effects that the Industrial Revolution had on economies, societies, and environments around the world from the late 18th to the early 20th centuries. This period marked a shift from agrarian economies to industrialized ones, leading to urbanization, changes in labor patterns, and increased global trade. The ripple effects of these changes influenced social structures, colonial expansion, and environmental degradation, fundamentally altering life across the globe.
Global Trade: Global trade refers to the exchange of goods, services, and capital across international borders, connecting economies and cultures worldwide. It has evolved significantly from early trade routes and practices to a complex system influenced by technological advancements, colonization, and economic policies.
Gold: Gold is a highly valued precious metal that has been used as a form of currency, a symbol of wealth, and a means of trade throughout history. Its significance in global trade networks facilitated economic exchange and interactions among various cultures, shaping economies and driving exploration and colonization.
Green Revolution Crops: Green Revolution crops refer to a series of high-yielding varieties of staple food crops, particularly wheat and rice, developed during the mid-20th century to enhance food production and combat hunger in developing countries. This agricultural movement was marked by the introduction of chemical fertilizers, pesticides, and advanced irrigation techniques, significantly boosting crop yields and transforming farming practices.
Industrial Revolution: The Industrial Revolution was a transformative period that began in the late 18th century, marked by the transition from agrarian economies to industrialized ones, primarily driven by technological innovations and changes in production methods. This shift had profound impacts on social structures, economies, and the global landscape, influencing responses to industrialization, societal changes, and the expansion of imperialism.
Infrastructure: Infrastructure refers to the foundational physical structures and facilities needed for the operation of a society or enterprise, including transportation systems, communication networks, utilities, and public institutions. During the period of global economic development from 1750 to 1900, infrastructure played a crucial role in facilitating trade, movement of goods and people, and the overall growth of economies worldwide.
Iron and Steel Production: Iron and steel production refers to the industrial processes used to create iron and steel from raw materials, which were pivotal to the global economic development during the period from 1750 to 1900. This era saw a significant increase in the demand for iron and steel due to the rise of industrialization, urbanization, and innovations in manufacturing. The advancements in production techniques, such as the Bessemer process, enabled mass production, contributing to the growth of infrastructure, transportation networks, and machinery, thereby transforming economies worldwide.
Ivory, Minerals, and Diamonds: Ivory, minerals, and diamonds are valuable natural resources that became key commodities in global trade from 1750 to 1900. These resources were sought after for their economic value and played a significant role in shaping global economies, driving colonization, and influencing social dynamics during this period. Their extraction and trade had profound effects on various regions, particularly in Africa and Asia, as demand surged in European markets, leading to exploitation and conflicts over control of these precious resources.
Ivory Carvings: Ivory carvings are decorative or functional objects made from the tusks of elephants and other animals, highly valued for their beauty and intricacy. During the period from 1750 to 1900, ivory carvings became significant in global trade, showcasing artistic craftsmanship while also raising ethical concerns related to wildlife conservation and colonial exploitation.
Japan: Japan is an island nation in East Asia that underwent significant transformation during the 19th and 20th centuries, especially with its rapid industrialization and emergence as a global power. This transformation connected Japan to broader global developments and conflicts, influencing its political, economic, and military trajectory.
Manufacturing Industries: Manufacturing industries refer to the sectors of the economy that focus on the production of goods through the processing of raw materials and components into finished products. This transformation was significantly accelerated during the period from 1750 to 1900, as technological advancements and industrialization revolutionized production methods, leading to mass production and increased efficiency in manufacturing processes.
Mechanization: Mechanization refers to the process of introducing machinery into production processes, replacing manual labor with machines to increase efficiency and output. This shift played a crucial role in transforming industries, leading to mass production and the rise of factories, which fundamentally changed economic structures and labor dynamics during the industrial age.
Middle Class: The middle class refers to a social group that emerged prominently during the Industrial Revolution, characterized by their economic stability and influence, typically positioned between the working class and the upper class. This group played a vital role in shaping societal norms, values, and politics during significant historical transitions.
Overexploitation of Natural Resources: Overexploitation of natural resources refers to the excessive use and depletion of resources such as forests, minerals, water, and wildlife beyond their sustainable limits. This phenomenon was particularly prominent from 1750 to 1900 as industrialization and economic development accelerated, leading to increased demand for raw materials and energy sources. The consequences of overexploitation included environmental degradation, loss of biodiversity, and the eventual depletion of critical resources, which impacted societies and economies worldwide.
Palm Oil: Palm oil is a versatile vegetable oil derived from the fruit of the oil palm tree, primarily found in West Africa, Southeast Asia, and parts of Central America. Its significance surged during the 19th century, as it became a key commodity in global trade, especially in industries like food, cosmetics, and industrial lubricants. The demand for palm oil played a crucial role in shaping agricultural practices and economic systems in producing regions.
Plows: Plows are agricultural tools used for turning and breaking up soil to prepare it for planting crops. During the period from 1750 to 1900, advancements in plow technology significantly improved farming efficiency and productivity, which had a profound impact on global economic development by enhancing agricultural output and supporting the rise of industrialization.
Pneumatic Tire: A pneumatic tire is an inflatable tire made from rubber and filled with air, designed to provide a cushioning effect and improve vehicle performance on various surfaces. This innovation played a crucial role in the development of transportation technology, enhancing comfort and efficiency, while also facilitating the growth of industries reliant on mechanized transport during the period from 1750 to 1900.
Population Growth: Population growth refers to the increase in the number of individuals in a population over time, often measured as the rate of increase in a specific geographic area. This phenomenon is closely linked to economic development, technological advances, social changes, and environmental impacts, all of which shaped human societies from 1750 to 1900 and beyond.
Power Loom: The power loom is a mechanized loom that revolutionized the textile industry by enabling the mass production of woven fabric through the use of steam or water power. This innovation played a key role in the Industrial Revolution, facilitating the shift from manual labor to machine-based production and significantly increasing efficiency and output in textile manufacturing.
Railroads: Railroads are a system of tracks and trains used for transporting goods and people over long distances, which became a crucial component of the Industrial Revolution. They revolutionized transportation, facilitating rapid movement of resources and enabling the expansion of industries, urbanization, and global trade networks.
Raw Materials (Exports): Raw materials (exports) refer to the unprocessed or minimally processed resources that are shipped out of a country to be used in manufacturing or production processes elsewhere. During the period from 1750 to 1900, these exports played a crucial role in shaping global economic development as industrialized nations sought out raw materials to fuel their growing industries, leading to increased trade and economic interdependence among countries.
Reaping Machines: Reaping machines are agricultural devices designed to harvest crops by cutting and gathering them efficiently from the fields. These machines represented a significant advancement in farming technology during the period from 1750 to 1900, transforming agricultural practices and increasing productivity.
Rubber: Rubber is a flexible, elastic material derived from the latex of rubber trees, primarily used in manufacturing products such as tires, footwear, and various industrial goods. During the period from 1750 to 1900, the demand for rubber surged due to the Industrial Revolution, significantly impacting global economic development as it became a crucial raw material for various industries and innovations.
Society Hierarchy: Society hierarchy refers to the structured ranking of individuals and groups within a society based on various factors such as wealth, occupation, social status, and power. This hierarchical structure significantly influenced social interactions and economic opportunities during the period of global economic development from 1750 to 1900, shaping class relations and social mobility in many regions around the world.
Soil Erosion: Soil erosion is the process by which the top layer of soil is removed due to factors like wind, water, and human activity. This process not only depletes vital nutrients from the soil but also contributes to environmental issues like desertification and reduced agricultural productivity, affecting trade and economic development.
Spinning Jenny: The Spinning Jenny is a multi-spindle spinning frame invented by James Hargreaves in 1764, which revolutionized the textile industry by allowing one worker to spin multiple threads at once. This innovation marked a significant advancement in the process of textile production, contributing to the rapid industrialization of society and transforming the economic landscape.
Steamships: Steamships are vessels powered by steam engines that revolutionized maritime transportation in the 19th century, enabling faster and more reliable travel across oceans and rivers. Their development marked a significant shift in global trade and travel, impacting economies and societies by facilitating increased connectivity and the movement of goods and people.
Steam Power: Steam power refers to the energy generated by steam, typically used to drive engines and machinery. This innovation played a crucial role in transforming industries, transportation, and economies during the Industrial Revolution, leading to widespread changes in production methods, global trade, and environmental impacts.
Telegraph: The telegraph was a revolutionary communication device that allowed messages to be transmitted over long distances using electrical signals. It transformed communication in the 19th century, greatly enhancing the speed and efficiency of information exchange, which in turn influenced various aspects of society, economy, and technology.
Technological Advancements: Technological advancements refer to the discoveries and innovations in tools, techniques, and processes that enhance human productivity and efficiency. These developments have significantly influenced economic growth, societal change, and global interactions over time, driving everything from trade expansion to imperialism and conflict.
Textiles Industry: The textiles industry encompasses the production of fibers, yarns, fabrics, and finished textile products, playing a pivotal role in the global economy during the period from 1750 to 1900. This industry was a cornerstone of the Industrial Revolution, facilitating significant advancements in manufacturing processes, leading to increased production capacity and lowered costs. The growth of the textiles industry not only transformed economies but also impacted social structures, labor dynamics, and international trade patterns.
Threshing Machines: Threshing machines are mechanical devices designed to separate grains from their stalks and husks, significantly improving the efficiency of the harvesting process. Introduced during the Agricultural Revolution in the 18th and 19th centuries, these machines played a critical role in transforming agricultural practices and boosting productivity, which was essential for supporting the growing populations and economies of the Industrial Revolution.
Tin: Tin is a malleable, silvery-white metal that has been used for various applications since ancient times, notably in the production of bronze when alloyed with copper. During the period from 1750 to 1900, tin became increasingly significant in global economic development due to its role in industrial processes, including the creation of tinplate for packaging and food preservation, as well as its use in soldering and electronics.
Tin Mines: Tin mines are locations where tin, a malleable and ductile metal used in various applications, is extracted from the earth. During the period from 1750 to 1900, the demand for tin surged due to its use in tin plating, which protected iron from rusting, and its role in the production of alloys such as bronze. This rise in demand led to the expansion of tin mining operations, particularly in regions like Southeast Asia, significantly contributing to global economic development.
United Kingdom: The United Kingdom (UK) is a sovereign nation located off the northwestern coast of mainland Europe, composed of Great Britain and Northern Ireland. Throughout history, it has been a major global power, influencing economic development, political structures, and international relations, particularly during the Industrial Revolution, the two World Wars, and the formation of modern global institutions.
United States: The United States is a federal republic established in 1776, formed from thirteen British colonies in North America. It has been a significant player in global politics, economics, and culture, influencing various movements related to nationalism, industrialization, and international conflicts throughout its history.