IMPACTS OF MERCANTILISM IN EUROPE AND AFRICA
Western Europe and Africa had a relationship which ensured the transfer of wealth from Africa to Europe. According to W.Rodney on his book “How Europe under-developed Africa” 1972 argued that; over that period Africa helped to develop Western Europe and at the same time Europe under-developed Africa. Trade helped Europe to get numerous developments also the North America benefited from this merchantalism while Africa did not benefit.
IMPACTS OF MERCHANTALISM IN EUROPE
1. Gold and silver accumulated during this period played a very important role in expanding capitalist capital in the economy of Western Europe because it was gold and silver that determined the value of capitalist to develop in terms of money.
2. These trades speed up the European technological development. Example the Trade helped the Europeans in the development of ship building from the 15thC-19thC where by sea going vessels of different sizes were designed for slave trade and carrying raw materials from America to Europe and later carry commodities to other parts of the world where markets were available.
3. Merchantalism led to the rise of Sea ports town like Liverpool, Bristol, etc. in these sea ports towns there was a development of manufacturing centers like Ian Cashing which depended on the growth of the port of river.
4. Speed up the development of industrial sector; industries such as textile industries, flour milling, ship industry etc. With development of industries in Europe, it helped European countries to develop as far as capitalism was concerned.
5. The Capital derived from merchantalism helped to a great deal to strengthen transitional links within Western European economy. Example sugar from Caribbean islands was exported from England to France and other parts of the European continent.
6. Merchantalism continued to be source for capital accumulation by European merchants whereby the capital was to be invested in investments such as banks, industries, transport and communication for European development hence capital accumulation was possible due to much exploitation of African resources during merchantalism.
IMPACTS OF MERCHANTALISM IN AFRICA
Africa at large extent was in a negative during this oversea trade because the trade made Africa to be underdeveloped and stagnant all the time, hence the following are the impacts:-
1. Merchantalism led to the rise and fall of some African states. These states grew strong during Trans- Saharan trade like Songhai, Mali, Ghana, Benin but they collapsed because its wealth was destroyed after the establishment of triangular slave trade, but some other states grew strongly after the establishment of merchantalism because its wealth depended on this trade. Example; Dahomey state.
2. Merchantalism led to the rise of state of fear and insecurity among Africans especially in West Africa This was because during merchantalism African leaders were helping the European merchants to capture their fellow Africans and sell to the Europeans, these people were taken as slaves and shipped to the mines and plantations in America. Also the introduction of guns brought political instability among Africans who were fighting among themselves for European interests.
3. Merchantilism led the destruction of African trade which was established among Africans for their own interests by merchantilism. Example, Long Distance Trade conducted from one region to another region, Trans-Saharan trade which was conducted between West Africa and North Africa. This was due to European merchants who changed the outlook of the trade from not benefiting Africans to benefiting Europeans.
4. Merchantalism led to introduction of unequal exchange which was unequal trade whereby during the trade between Africa and European merchants; Europeans benefited due to the value of commodities and raw materials taken from Africa like rhinoceros horns, tortoise shell, coconut oil, ivory, slaves while in exchange Europeans brought to Africa things which were used and could not be sold in Europe. Things such as daggers, empty bottles, ornament, cigarettes, Portuguese wine.etc.
5. Merchantalism led to stagnation of African science and technology especially African local industries and productive forces but also the action of taking Africans as slaves killed science and technology.
6. Merchantalism led to the decline of African agricultural production because in most cases Africans were in state of fear and insecurity and political instability, hence they could not settle together to involve in agricultural production, in Africa led to famine and hunger.
7. Merchantalism led to introduction of slave trade which led to depopulation of African continent because many African young men and energetic were taken as a slaves to offer their labour power in mines and plantations in America.
8. Merchantalism led to the destruction of African culture because during this period Europeans introduced their culture like eating style, dancing style, marriage etc. which all of them meant to kill African culture because Africans ignored their own culture and started to follow European culture.
CONTRIBUTION OF MERCHANTALISM TO THE RISE OF CAPITALISM IN EUROPE
1. Merchantalism led to the accumulation of capital among Europeans. This led to investment and re-investment in economic sectors like banks, industry, transport and communication hence the capital obtained in merchantalism Led to the rise of industrial capitalism.
2. Merchantalism led to the development of financial institutions and insurance companies. These institutions facilitated the development of capitalism especially industrial capitalism because they provided loans, credit and services to the Europeans merchants to continue involved in overseas trade, hence development of capitalism.
3. Merchantalism led to the development of towns, cities, and sea port towns notably Manchester, Leads, Liverpool, Lisbon, Paris, etc. because in these towns there was development of trade and manufacturing center which developed to industrial cities which attracted many of European population to live in those towns and a lot of town requirement were available in those towns. Example water, electricity, good houses.etc.
4. Merchantalism led to advancement and development of science and technology. Example the sea going science and technology like ship building, compass bearing, compass direction, etc. This was because during merchantalism, ships of different size were designed specifically for carrying slaves from Africa to America and used for carrying raw materials from America to Europe and later commodities were taken from Europe to other parts of the world especially Africa where market was available.
5. Merchantalism led to availability of cheap labour in European plantation, mine, and industries. African slaves were taken in a large quantity during this period to America to offer their labor power in plantations established in Canada, USA, etc. but others offered their labor power in European mines established in Peru, Colombia all these led to the development and growth of industries in Europe.
6. Merchantalism led to availability of raw materials which were needed to develop European countries because these raw materials which were produced in the new world like cotton, sugar cane, tobacco, sisal etc. was transported to Europe to be manufactured as commodities and later these commodities were sold in other parts of the world especially in Africa for European development.
7. Merchantalism led to availability of markets both internal and external market for absorbing European industrial goods. During merchantalism European goods were sold in Europe and Africa where markets were available for economic interests of European merchants. Example: European goods which were not purchased in Europe got markets in Africa and Latin America for development of capitalism in Europe.
8. Merchantalism led to Agrarian revolution during the 16thC where by European merchants started to invest in agricultural sector by using wealth obtained during this oversea trade, especially unequal exchange. The European traders got a lot of wealth by using unequal exchange and started to invest in agricultural sector for more production of raw materials like wheat for making breads and wool for making woolen clothes.
9. Merchantalism led to the emergence of strong military states in order to defend and protect the wealth of nations, merchants and their boundaries e.g. UK during the Tudor monarchy especially the rule of King Henry VIII led Britain to undergo navy forces in order to increase the wealth of Britain after piracy and killing other European merchants who passed near Britain boundary.
10. Merchantalism led to the rise of European nationalism; where by small European nations united together to increase and expand the market for their nations, removed trade barriers among the nations joint, protected merchants and used the resources available among the small nations unified. E.g. UK (Wales, England, Scotland) to form United Kingdom.
CONDITIONS WHICH FORCED MERCHANTS TO CAPTURE SLAVES FROM AFRICA TO AMERICA AND CARRIBEANS
1. Merchantalism
This was an economic system which involved in conducting trade overseas searching for gold and silver. Merchantalism led to the rise of Trans-Atlantic slave trade which was a trading activity which involved Africa, America and Europe. During this trade millions of Africans were shipped to America to provide cheap labour in mines and plantations.
2. Booming capitalist agriculture.
During merchantalism European capitalist established different plantations of coffee, tea, sugar cane, cotton and tobacco which called for massive supply of cheap labours, thus the supply of white labour was getting difficult compared to the expanding needs of the plantations, therefore this called for importation of slaves from Africa.
3. Industrial revolution in Europe.
Due to the industrial revolution, there was need to expand home markets thus the merchants and the ruling class in Europe were afraid of under population, this prompted the campaign against the use of white labourers. The crisis called for massive importation of slaves from Africa to provide cheap labour in mines and plantations.
4. Africans slaves were cheap.
It’s on record that money paid on white labour for ten years could procure on African slaves for life. In addition a white worker was expected to acquire land at the end of the contract while on African slaves was prevented by law from owning land. These conditions necessitated the use of African origin in the new world.
5. Discovery of maritime technology.
This acted as a pushing factor for Africans to be taken as slaves. Maritime technology eased transportation and guided the merchants to locate Africa. Thus be in position to transport people of African origin to the new world.
6. Inability of the indigenous people.
Initially the Europeans were using Native Americans, Red Indians to provide cheap labour power on the plantations and mining centers but later the red Indians died in huge numbers due to plague. This called for importation of African slaves which contributed to the existence of people of African origin in the new world.
7. Discovery of the new world.
The Discovery of the new world by Christopher Columbus in 1492 contributed to the existence of people of African origin in the new world. The discovery led to the establishment of plantations and mining centers that demanded for cheap labours which called for importation of African slaves.
THE ABOLITION OF THE TRANS ATLANTIC SLAVE TRADE
The Trans Atlantic slave trade refers to that type of trade that involve three continents America, Africa and Europe.
In this trading system, Africa was the source of cheap labour in the form of slaves, America was the source of raw materials and Europe was the source of manufactured goods.
The main participants were Britain, France, Holland and Portugal. The British were the ones who benefited so much from this trade since the 17th C, took the lead in the abolition of slave trade in the first half of the 19th C. the British took various steps to abolish slave trade consequently in 1807, Britain passed a bill making slave trade illegal in all her colonies and in 1833; a law was passed that called for the emancipation of all slaves in the British empire.
There are various forces that compelled the British to abolish the Trans Atlantic slave trade. These factors included the following;
A Economic reasons
These were the main factors that forced the British to abolish the Trans Atlantic slave trade, they included;
1) Capitalist production
Capitalist production involves two classes of societies, which are the capitalists who control the major means of production and the workers who are employed by the capitalists. For the workers to be effectively employed, they must be free and not slaves.
2) Need for markets
Due to the industrial revolution, there was increased production of industrial products in Europe that lacked enough demand; this forced the British to abolish slave trade so that markets can be created in Africa for their manufactured goods.
3) Need for raw materials
Due to the industrial revolution, there was increased demand for raw materials in Britain. The existing raw materials were limited to supply due to the mushrooming of industries. This situation necessitated the abolition of the Trans Atlantic slave trade so that Africans can produce the needed raw materials.
4) The use of machines
The industrial revolution was characterized by the use of machines in the production process, these machines replaced human labour. The owners of the machines campaigned for the abolition of the Trans Atlantic slave trade because slave labour had become redundant.
5) French and British competition over sugar production.
For so long period, the British had a monopoly on sugar in the European market. The sugar was produced by slave labour in the British West Indies. The British was selling their sugar at very high prices thus making huge profits. However by the end of the 18th C, the French West Indies and re union islands were producing sugar in large quantities and selling at a cheaper price thus making more profits than the British. This situation made slave labour in British West Indies useless thus forcing the British to abolish the Trans Atlantic slave trade.