Notes-Class-10-CBSE-NCERT-Social Science-History-Chapter-3-The Making of a Global World

Introduction :

Globalisation, a relatively recent economic system, is rooted in a long history of trade, migration, work search, and capital movement, requiring a comprehensive understanding of the global world's formation.

The Pre-Modern World :

Human societies have steadily become more interlinked throughout the history. From ancient times, travellers, traders, priests and pilgrims travelled vast distances for various reasons, like

• to gain knowledge
• for more opportunities
• for religious or spiritual fulfilment
• to escape from ill-treatment

They carried goods, money, values, skills, ideas, inventions, and germs and diseases. As early as 3000 BCE, coastal trade linked Indus valley civilizations with present-day West Asia.

Cowries from the Maldives traveled to China and East Africa for over a millennium. The spread of disease-carrying germs dates back to the seventh century and became an unmistakable link by the thirteenth century.

Silk Routes Link the World :

• The Silk Routes were old trade paths that existed even before the time of Christ (before 1 AD) and remained important until the 15th century. These routes are great examples of how people traded goods and shared cultures long ago.
• Historians have found that there were many Silk Routes, both on land and by sea, which connected Asia with Europe and North Africa.
• Goods like Chinese pottery, Indian and South-East Asian textiles (fabrics) and spices were traded along these routes. In return, Europe sent precious metals like gold and silver to Asia.
• Not just traders, but religious teachers also travelled along these routes—such as Buddhist monks, Christian missionaries, and later, Muslim preachers—helping to spread religions and ideas.

Food Travels : New Crops Introduced

• Traders and travelers took different foods/crops with them when they visited other countries. After Christopher Columbus discovered America, many new foods like potatoes, soya, groundnuts (peanuts), maize (corn), tomatoes, chillies, and sweet potatoes were introduced to Europe and Asia.
• Noodles, which were originally from China, travelled to the West and eventually turned into spaghetti.
• In Europe, especially among the poor people, potatoes became an important food. It helped them eat better and live longer.
• Arab traders brought pasta to Sicily, an island in Italy.
• In Ireland, poor people mostly ate potatoes. But in the 1840s, when a disease destroyed potato crops (Irish Potato Famine), many people died from hunger.

Conquest, Disease and Trade :

• In the 16^th century, when European sailors found sea routes to Asia and America, the world became more connected (the "world shrank").
• Silver found in Peru and Mexico made Europe richer and helped it buy goods from Asia.
• Many explorers went to South America looking for El Dorado, a legendary city full of gold.
• The Spanish and Portuguese were the first Europeans to conquer America around the mid-16^th
• They were able to do this partly because they brought the deadly disease smallpox with them. The native people of America had no immunity, so many of them died, making it easier for the Spanish to take over.
• Before the 19^th century, Europe had many poor and hungry people. Cities were crowded and diseases were common.
• Because of this, many Europeans moved to America. At the same time, Africans were taken as slaves to work on cotton and sugar plantations for the European market.
• Until the 18^th century, India and China were the richest countries and main trade centres in the world.
• But when India was colonised by the British and China limited foreign trade, Europe became the new centre of world trade.

The 19th Century (1815-1914) :

In the 19^th century, economic, political, social, cultural and technological factors interacted in complex ways. It changed the society and reshaped its external relations.

Economists identify three types of movement or flows within international economic exchanges

• The flow of trade in goods (especially cloth and wheat).
• The flow of labour due to migration of people in search of employment.
• The movement of capital for short-term or long-term investments over long distances.

All these flows affected people's lives significantly.

A World Economy Takes Shape :

• To protect British farmers, the government stopped the import of cheaper grains from other countries. These rules were called the Corn Laws.
• Because of the Corn Laws, food became very expensive, which made city people and factory owners unhappy. They pressured the government, and the Corn Laws were finally removed.
• After the abolition of the Corn Laws, food could be imported into Britain at much cheaper rate than before.
• British agriculture was unable to compete with imports. Vast areas of land were now left uncultivated and thousands of people lost their livelihood. They came to the cities in search of works or migrated overseas.

Effects of Abolition of Corn Laws :

• After the Corn Laws were abolished in Britain, food could be imported at lower prices, making it cheaper than local produce. As a result, food prices dropped, leading to increased consumption and higher demand due to rising incomes and industrial growth.
• To meet Britain’s growing demand, countries like Eastern Europe, Russia, America, and Australia expanded farming by clearing land. This led to the development of railways, ports, and harbours to transport food grains efficiently. Settlements grew as more workers were needed, and food was transported using specially built ships and railways, often operated by low-paid workers from Southern Europe, Asia, Africa, and the Caribbean.
• Capital investment, especially from cities like London, helped build this system. By the 1890s, a global agricultural economy had emerged, where food traveled thousands of miles.
• Even India was affected. In West Punjab, the British created irrigated Canal Colonies in semi-desert areas to grow wheat and cotton for export. These regions were settled by peasants from across Punjab, transforming them into productive agricultural zones.

Regional commodities developed so fast that between 1820 and 1914, world trade had multiplied 25 to 40 times. About, 60% of this trade comprised primary products i.e. agricultural products like wheat and cotton, and minerals like coal.

Role of Technology :

In the 1800s (19^th century), new inventions like railways, steamships, and the telegraph changed the world in big ways.

Fast trains, lighter carts, and bigger ships made it easier and cheaper to bring food from faraway countries like America, Australia, and New Zealand to Europe.

Before 1870, animals had to be sent alive by ship from America to Europe. This was difficult because:

• They needed a lot of space,
• Many animals got sick or died on the way,
• Meat was very expensive, and poor people couldn’t buy it.

Then refrigerated ships (ships with cooling systems) were invented. These could carry frozen meat long distances without it getting spoiled.

Now, countries like America, Australia, and New Zealand could send frozen meat to Europe, where it could be sold cheaply.

Because of this:

• Meat became affordable for poor people,
• People’s health and living conditions improved,
• It helped keep peace within European countries, and
• Made people support imperialism (Europeans ruling over colonies).

Rinderpest or the Cattle Plague :

In the late 19^th century, Europeans came to Africa to start farms (plantations) and mines to grow crops and take out minerals, which they wanted to send back to Europe.

But there was a problem — Africans didn’t want to work for wages, so there was a shortage of workers.

To force people to work, European rulers:

• Put heavy taxes on Africans so they had to earn money,
• Changed inheritance laws, which pushed farmers off their land and made them look for work.

Around the 1890s, a disease called rinderpest (cattle plague) spread very quickly in Africa.

• It came from infected cattle brought from British Asia,
• It killed 90% of the cattle, which was a big loss since many Africans depended on cattle for farming, milk, and trade.

Because of this:

• Many Africans lost their way of living,
• Farmers and workers were forced to work in mines and plantations to survive,
• European colonists took control of the remaining cattle to increase their power.

Indentured Labour Migration from India

• In the 19th century, many Indian and Chinese indentured labourers went to work on plantations, in mines and in different construction projects around the world.
• Indentured labourers in India were hired through contracts that assured them return travel to India after completing five years of work on their employer's plantation.
• Most Indian indentured workers came from the present-day regions of Eastern Uttar Pradesh, Bihar, Central India and Tamil Nadu.

Condition of Indentured Migrants :

In the mid-19^th century, many parts of India went through big changes:

• Small village industries closed down,
• Land rent became very high,
• Land was cleared for mines and plantations.

Because of this, poor people lost their income, got into heavy debt, and were forced to leave their villages to find work.

Many of them went as indentured workers (contract labourers) to faraway places like:

• Caribbean Islands (Trinidad, Guyana, Surinam),
• Mauritius, Fiji,
• Tamil workers went to Ceylon (Sri Lanka) and Malaya,
• Some also worked in Assam's tea plantations.

These workers were recruited by agents, who were paid a small amount for every worker they sent.

Many people agreed to go because they wanted to escape poverty or injustice in their villages.

But:

• They were often not told how far and hard the sea journey would be,
• Some were even tricked or forced to go.

This system is called a "new kind of slavery", because:

• The working and living conditions were very bad,
• But the workers still found ways to cope and survive.

They mixed their cultures and created new festivals and traditions, such as:

• Hosay Carnival in Trinidad,
• Rastafarianism (a protest religion made famous by Bob Marley),
• Chutney music in Trinidad and Guyana — a blend of Indian and local music.

Descendants of Indentured Labourers and its Abolition

• Many indentured labourers permanently settled in the countries where they had gone after their contracts ended. So, there are large communities of people of Indian descent in these countries.
• For example, Nobel Prize winner writer like VS Naipaul, some famous West Indies cricketers like Shivnarine Chanderpaul and Ramnaresh Sarwan are descended from indentured labourers from India.
• From the 1900s, India's nationalist leaders started criticising the indentured labour migration system as harsh and inhumane. The system of indentured labour was abolished in 1921.

Indian Entrepreneurs Abroad :

• Indian bankers were amongst the many groups of bankers and traders, who financed export agriculture in Central and South-East Asia, using either their own funds or those borrowed from European Banks.
• Shikaripuri Shroffs, Nattukottai Chettiars were some famous Indian bankers.
• Indian traders and moneylenders also followed European colonisers into Africa. Hyderabadi Sindhi traders developed flourishing trades at busy ports worldwide. They usually sold local and imported curios (rare objects) to tourists.

Trade Relationship Between India and Britain

• During the 19th century, British-made goods were sold in large quantities in India.
• At the same time, India exported food grains and raw materials (like cotton and indigo) to Britain and other countries.
• But the value of goods Britain sold to India was more than the value of goods Britain bought from India.
• This created a trade surplus for Britain — meaning Britain earned more from India than it spent.
• Britain used this extra money (surplus) from India to pay for its expenses in other countries where it had trade deficits (where it spent more than it earned).

This money was also used to cover "home charges", like:

• Salaries and pensions (private remittances) of British officials working in India,
• Interest on loans taken from abroad,
• Private money transfers by British traders and officials living in India.

The Inter-War Economy :

The First World War (1914-18) was mainly fought in Europe but it had impact on whole world.

Wartime Transformations :

The war was between two major groups:

• Allies: Britain, France, Russia (later joined by the USA),
• Central Powers: Germany, Austria-Hungary, and Ottoman Turkey.

Big industrial countries joined the war and tried to destroy their enemies completely.

It was the first modern industrial war — for the first time, modern weapons like:

• Machine guns, tanks, aircraft, and poisonous gas were used on a large scale.

Effects of the War:

Around 9 million people died, and 20 million were injured. Many families lost their earning members, so household incomes fell.

• As a result, women had to take jobs to support their families.

The war damaged trade and economic connections between major countries, as they were now fighting each other.

Britain borrowed a lot of money from:

• US banks and
• The American public.

Because of this, the USA became a powerful lender (creditor), instead of a country that borrowed (debtor).

In short, the First World War caused massive loss of life, economic disruption, and changed the power balance in the world — especially making the USA more powerful.

Post-War Recovery :

After the First World War, it was very difficult for countries to recover, especially Britain.

Britain faced problems:

• It lost its strong position in the Indian market,
• It could not compete with Japan in global trade,
• It had huge debts because it had borrowed a lot of money during the war.

During the war, there was high demand, so:

• Factories produced more,
• More people got jobs,
• Economies grew.

But after the war ended:

• Production dropped,
• Jobs were lost,
• The British government cut war spending, so in 1921, many British workers became unemployed.

Wheat and Farming Impact:

During the war, wheat exports from Eastern Europe stopped due to fighting.

So, countries like Canada, the USA, and Australia grew more wheat to fill the gap.

But after the war, when Eastern Europe started producing wheat again, there was a wheat surplus (created a glut).

This led to:

• Falling wheat prices,
• Lower incomes for farmers,
• Many farmers got into debt.

In short, the post-war years brought economic hardship, unemployment, and trouble for farmers, especially due to too much wheat in the market and falling prices.

The Great Depression :

The Great Depression started in 1929 and lasted until the mid-1930s.

It was a time when almost the entire world faced:

• Huge drops in production,
• High unemployment,
• Less income, and
• A big fall in trade.
• The agriculture sector (farming) was hit the hardest.

Factors Responsible for Depression :

(i) Falling Prices of Farm Goods:

• Farmers produced too much food (overproduction).
• This caused prices to fall sharply.
• To earn enough, farmers tried to sell even more, which only made the prices fall further.
• So, the more they produced, the poorer they got.

(ii) Loans and Banking Crisis:

• In the 1920s, many countries took loans from the USA to grow their economies.
• But when the US economy started falling, American investors stopped giving loans.
• As a result, many European banks collapsed, and currencies lost value (like the British pound, called Sterling).

In short, the Great Depression was a period of global economic disaster where farmers suffered badly, banks failed, and millions lost their jobs and savings.

Impacts of the Depression :

• The US was severely affected by the depression, as the banks had cut domestic lending and called back loans.
• Farms could not sell their harvests, households were ruined and businesses collapsed.
• The US banking system collapsed because the banks were unable to recover investments, collect loans and repay depositors.
• The US attempted to protect its economy in the depression by doubling the import duties, which hit the world trade badly.

India and the Great Depression :

During the Great Depression, India’s trade suffered a lot:

• Exports and imports fell by 50% (became half),
• Prices of important farm products like wheat and jute dropped sharply between 1928 and 1934.

The British colonial government still demanded the same taxes from farmers, even though they were earning much less. This made peasants suffer the most.

India started exporting a lot of gold during this time:

• This gold helped in global economic recovery, especially for Britain,
• But it did not benefit Indian farmers, who remained poor.

People with fixed incomes (like salaried workers) were affected less, because prices fell.

In 1931, due to the growing hardship from the depression, Mahatma Gandhi started the Civil Disobedience Movement against British rule.

In short, the Great Depression made life harder for Indian farmers, while British policies continued to hurt them, leading to increased protests and national movements

Rebuilding a World Economy : The Post-War Era

• The Second World War resulted in immense devastation in human and economic terms. It broke out after two decades of the First World War (1939-45).
• It was fought between the Axis Powers (Nazi Germany, Japan and Italy) and the Allies (Britain, France, Soviet Union and USA).
• At least 60 million (about 3 per cent of the world's 1939 population) people were killed and millions were injured in this war.
• Vast parts of Europe and Asia were devastated and several cities were destroyed by the war, therefore reconstruction became long and difficult task.

Two crucial influences shaped post-war reconstruction

• The US emerged as the world's dominant political, economic and military power in the Western world.
• Soviet Union became super power. It defeated Nazi Germany. It transformed itself from an agricultural country into a world power. As a leader of the Communist bloc, Soviet Union posed a great threat to the Capitalist economy.

Post-War Settlement and the Bretton Woods Institutions :

After facing major economic problems during the two World Wars and the Great Depression, economists and leaders learned two important lessons:

Lesson 1: Mass Production Needs Mass Consumption

In an industrial society, factories make goods in large quantities.

But for this to work well, many people need to buy these goods — this is called mass consumption.

For that to happen:

• People need good, steady income.
• This means there must be enough jobs (full employment).
• So, the government must step in to:
• Control price changes,
• Maintain stable production and employment.

Lesson 2: Control Over International Trade

• A country's economy is linked with other countries through trade, money, and labour.
• To keep jobs safe and the economy strong, governments should be able to control the movement of goods, money, and workers across borders.

Bretton Woods Conference – 1944

To create a stable world economy after World War II, leaders met in Bretton Woods, USA, in July 1944.

This meeting, called the United Nations Monetary and Financial Conference, laid the foundation for:

• A new international economic system,
• Institutions like the International Monetary Fund (IMF) and the World Bank.

In short, world leaders decided that strong government involvement and global cooperation were needed to avoid another depression and build a stable, growing world economy.

Note : The post-war international economic system is also commonly referred to as the Bretton Woods system

The Early Post-War Years :

• The Bretton Woods System inaugurated an era of stable growth of trade and income for the Western industrial nations and Japan.
• World trade grew annually at over 8% between 1950-1970 and incomes at nearly 5%. The unemployment rate of this period was averaged less than 5% in most industrial countries.
• Developing countries invested vast amounts of capital, and imported industrial plant and equipment featuring modern technology.

Decolonisation and Independence :

• When the Second World War ended, many countries were still under European colonial rule.
• Over the next two decades, most colonies in Asia and Africa became free and emerged as independent nations. However, independence did not bring freedom from poverty or a lack of resources to these countries.
• Their economies and societies suffered a lot by long periods of colonial rule.
• The IMF and the World Bank were designed to meet the financial needs of the industrial countries. However, as Europe and Japan rapidly rebuilt their economies, they grew less dependent on the IMF and the World Bank.
• Therefore, from the late 1950s, the Bretton Woods Institutions began to shift their attention more towards developing countries.

Condition of Developing Nations :

• After becoming independent, many poor countries (called developing nations) wanted to reduce poverty and improve life for their people.
• But even after decolonization, these countries were still influenced or controlled by powerful international organisations like the IMF and World Bank.
• These organisations were mainly controlled by rich, former colonial powers such as the USA and France.

Slow Growth of Developing Nations:

• Unlike Western countries, which grew fast in the 1950s and 1960s, developing countries did not grow as quickly or become wealthy.

Group of 77 and NIEO:

To fight for fairer treatment, the developing countries joined together to form a group called the Group of 77 (G-77).

They demanded a New International Economic Order (NIEO) — a new system that would:

• Give developing countries more control over trade and finance,
• Help them grow faster,
• Fairer prices for raw materials
• Make the global economy more equal.
• Better access for their manufactured goods in developed countries' markets.

In short, developing countries wanted fair rules and more power in the global system, so they could improve the lives of their people without being dominated by richer nations.

End of Bretton Woods and the Beginning of 'Globalisation' :

Collapse of Bretton Woods System:

• By the 1960s, the USA’s overseas spending (like wars and military bases) became too expensive.
• The US dollar lost its value and could no longer be linked to gold.
• This led to the end of the fixed exchange rate system.
• A new system called floating exchange rates was introduced — now, the value of a currency changes freely in the market.

Change in the Global Financial System (Mid-1970s):

Developing countries needed money and had to borrow from Western banks and private lenders.

This caused:

• Debt crises,
• Falling incomes, and
• More poverty, especially in Africa and Latin America.

Rise of Globalisation:

• In the late 1970s, multinational companies (MNCs) started moving their factories to Asian countries where wages were lower.
• This helped MNCs reduce costs and make more profit.

China’s New Economic Policy:

• After 1949, China was isolated from the global economy.
• But in the late 1970s, China opened up its economy with new policies.
• At the same time, the Soviet Union collapsed, and many other countries joined the global economy.
• Countries like China, where labour was cheap, attracted foreign investment from MNCs.

Rapid Growth in Developing Countries:

In the last 20 years, countries like:

• China,
• India, and
• Brazil

have shown rapid economic growth and become important players in the global economy.

In short, the end of the Bretton Woods system led to globalisation, where countries became more connected through trade, investment, and finance — and some developing countries began growing rapidly.