Austin (2014) considers the correlation between colonialism and capitalism. It was argued that the spread of capitalism was largely caused by colonial gains of major empires.
Austin (2014) does not refute this statement but offers particular ways in which capitalism found its way to the colonies and the way it developed in empires. Importantly, the author identifies five major features of development of capitalism in the second part of the nineteenth century.
These features are: divergence in wealth and technology of the West and the “Rest”, “transformation” of trade relations between colonies and empires and the very nature of this trade, appearance of new “settler-monopoly” and creation of new “neo-Europes” (Austin 2014, pp. 301-303). These features provide insights into the nature of the present-day world as well as the way imperial order of the world evolved and transformed.
It is noteworthy that each of the features requires particular attention. At this point, it is necessary to note that the new type of colonialism was characterised by the focus on commercial aspect and industrialisation. Development of technology (especially military one) was one of the primary forces that boosted transformations of the nineteenth century.
Thus, developed industrialised countries exercises their power and had the resources to exploit resources of less developed countries. Each year the gap between developed and developing countries increased as the former had all the necessary resources to advance technology and accumulate wealth.
It is noteworthy that some may focus on this feature of development of imperialism. However, the other four factors are equally important. It is also possible to add that these four features are especially interconnected.
Thus, development of new trade patterns contributed greatly to a new span of capitalism which was spreading globally. Transformation of the commercial relations as well as population patterns led to empowerment of the colonised countries.
In Americas, for instance, European settlers soon after the expansion to the continent made up the majority of the population. It is logical that they brought principles of capitalism to the new land and they were eager to gain independence (which was financial rather political).
At the same time, in Asian countries, local elites formed and these elites were also a potent force that enabled the states gain economic as well as political independence. Obviously, the contemporary world order is rooted in the transformations which were taking place in the second part of the nineteenth century.
Austin (2014) mentions the Soviet Union and its impact stressing that this empire was not capitalistic but communist. At the same time, even this empire followed the patterns which were developed in the nineteenth century.
In conclusion, it is possible to note that capitalism and colonialism shaped the world and formed the basis for the present-day models as well as state boundaries. Economic empowerment of empires was accompanied by financial strengthening of colonies. The five features of the correlation between colonialism and capitalism mentioned above help understand why the contemporary world is in its present state.
Reference List
Austin, G 2014, ‘Capitalism and the colonies’, in L Neal & JG Williamson (eds), The Cambridge history of capitalism, Cambridge University Press, Cambridge, pp. 301-347.