3.1. A brief history of globalization
In the previous sections, we have looked at the human-nature interactions mostly on a global scale. This makes sense as many environmental problems, especially climate change, are truly global and touch each and every one of us. However, many environmental and social challenges differ greatly between different regions of the world. And while regions differ from each other, they are also connected through the ties of the global economy. Solving global and local environmental and social problems, therefore, requires a perspective that takes into account both regional differences and the interdependence of different regions.
In the Middle Ages and before, the basis of human economy and livelihood were founded on regionally or locally produced food and other goods. Everyday life, therefore, did not rely upon the exchange of goods with far-off countries and regions, and social and ecological problems also tended to be local and regional in nature. A major turning point in globalization took place at the turn of the 15th and 16th centuries when Columbus sailed to America and Vasco Da Gama found the sea route from Europe to Asia.
These early advancements in seafaring enabled commerce and the exchange of goods between far-away regions. This exchange had dramatic consequences on both people and nature. Especially indigenous populations in the Americas suffered from diseases, such as smallpox and measles, that European settlers brought with them. These diseases and different forms of violence are estimated to have killed 90% of the indigenous populations.
Seafaring also gave birth to the global slave trade. Even though slavery had been practiced in practically all agricultural societies, seafaring enabled the selling of slaves to other continents, and about 12 million slaves were exported from Africa to America to work in the sugar, tobacco, and cotton plantations (and that number only includes those that survived the journey alive). Goods like sugar were then shipped to Europe for the Europeans to enjoy.
New sea routes also resulted in a notable change in the ways of conducting commerce. From the 17th to the 19th century, the world economy was dominated by global companies operating under state protection, such as the trading companies of England and the Netherlands. These companies not only engaged in the trade of goods, such as spices and silk, they also maintained their own military forces and established administrative districts. Indeed, the birth of the global capitalism that defines the modern world can be traced to the early 17th century Dutch East India Trading Company. Its shares were available for purchase by the general public, and it operated in both Europe and the Far East.
The 16th century also marked the beginning of colonialism and imperialism, with most of North and South America, Africa, and the Far East being subjugated to the colonies of European states. European states received both labor and raw materials from their colonies, yet the economic benefits enriched mainly Europe. The colonies became independent in stages in the 19th and 20th centuries, most of the African countries only after the Second World War.
Colonialism
Colonialism as a concept refers to the conquest, settlement, domination, and exploitation of areas already inhabited by other people and cultures. Behind the phenomenon is the desire of certain states to extend their own influence on ever larger areas. In addition to the rule of the territories, the original inhabitants of the region are subjected to the rule of the occupiers, and people, as well as entire cultures, face violence and exploitation. This can mean, for example, forced use of labor and the interference with or prohibition of the culturally specific customs of the original inhabitants.
Colonization has had many detrimental consequences for the original inhabitants of the colonized areas since the colonizing invaders have often considered these people inferior to themselves. The colonizing rulers have also exploited the natural resources of the territories, and the indigenous peoples have suffered for example racist treatment.
Colonialism has had a major impact on the economies and political systems of (now former) colonies. Daron Acemoglu and his partners have explored the impact of colonialism on contemporary social systems and the economic development of states.
Acemoglu and partners' research shows that former colonies that were wealthier than average in the pre-colonial period (measured by urbanisation rates in 1500) are now poorer than average (measured by GDP per capita in 1995). Conversely, countries that were poorer and less populated before are now wealthier than average.
According to the study, the reason for this reversal can be found in the administrative systems and institutions set up by the European colonial powers, which were different in different places. In areas, where it was possible to gain economic benefits by using local people as labour for example in mines or plantations, or by selling slaves, power was concentrated in the hands of a small elite. At the same time, the rights and freedoms of the rest of the population were severely restricted.
The tropics also had diseases, such as malaria and yellow fever, to which Europeans had no resistance. The high mortality rate of Europeans from tropical diseases discouraged the establishment of colonies in such areas. In other regions, such as North America, Australia and New Zealand, there were no dangerous diseases for Europeans and the local population was relatively sparse. In these areas, growing European settlements were established. Under pressure from settlers, the systems of government that developed in these areas emphasised individual freedoms and the protection of private property.
After colonial independence, the institutions of the colonial period often remained largely unchanged. Countries where power had been held by an elite and individual freedoms and rights had been restricted remained essentially the same, although the ruling elite may have changed. Such a social system is not conducive to economic development, as the elite may not have the ability or desire to develop the economy, and the rest of the population may lack the opportunities and incentives to do so. According to Acemoglu et al, this hierarchical social system, inherited from colonial times, is the main reason why economic development has been extremely poor in some of the old colonies.
In the United States, Canada, Australia and New Zealand, social systems were shaped by an emphasis on individual freedoms and rights and the protection of property. At the onset of industrialisation, these societies were capable of the kind of large-scale investment and entrepreneurship that have made them some of the most prosperous countries in the world. The former colonies therefore have very different development paths. What they all have in common, however, is the mistreatment and sometimes even the destruction of the indigenous population.
For reflection: what current events and developments do you believe will shape human and natural well-being in different regions in the coming centuries? You can share your reflections and discuss with other course participants on the page linked below.
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