A note on Egypt

• Ruled since 1850 by hereditary rulers called the Khedives, who were originally Ottoman Governors.
• The Khedives are in collusion with the French who wish to construct a canal in Suez, which was eventually completed in 1867
• The French pump money into Khedive as well as the canal
• Eventually the British insinuate themselves into Egypt with the purchase of controlling of Suez Canal by Disraeli (the Suez canal is a private corporation)
• The British dispatch troops to protect the Suez in 1877
• By 1879, the Arab Nationalists in Egypt rebel against the foreign influences headed by Colonel Aeabi and the Muslim Brotherhood. British defeat the movement and thereby establish a "protectorate" over Egypt. they convert this into control of the Nile valley in 1881.
• General Gordon captures Khartoum, then is surrounded by the Mahdi Army of Sudanese Sufis. The Sufis are massacred

The Ottoman Empire and the Russo-Turkish War

• Geography
  • The Ottoman Empire is the perpetual target of Russian Expansion (Crimean Motivations)
  • However, the West (Great Britain, France, and later Germany) want to prop up the Ottomans as a buffer/gate to Russian expansion
• Western Intervension
  • British and French capital begins to enter the Ottoman Empire via trade concessions, infrastructure, investments, military upgrades, and access to natural resources (particularly oil)
  • Moreover, the Sultan of the Ottoman empire is granted large personal loans by imperial powers
  • These loans become a lifestyle addiction. Abdul Aziz II famously had 600 women in his harem
  • Abdul Aziz nominally (only by name or appearance) seeks reform and issues the Hatt-i Humayun.
  • It eliminated powers of religion, civil/legal reforms, eventual constitutional government, public education, agricultural and industrial improvements.
  • Are the reforms genuine or a ploy to gain more western loot? Probably a little bit of greed and a little bit of Ottoman nationalist sentiment.
• Results
  • By 1875 the Ottomans are deep in debt. Abdul Aziz will repudiate half of the foreign debt
  • West is prevented from retaliation because of fear of Russia
  • Maneuver the internal overthrow of Sultan
• Russo Turkish War
  • Around 1875 the Ottomans are faced with Slavic Nationalist uprisings in Bulgaria and Bosnia with subsequent massacres of Slavic Christians (30k-100k killed)
  • The Russians (Panslavic and Orthodox) feel obligated to "protect Christians" and attack in 1877. This leads to the Russo Turkish War.
  • They are aided by nationalist from within the Ottoman Empire. They quickly advance and drive on Constantinople before the West can react
  • The Ottomans are forced to assign the Treaty of San Stefano. Bosnia and Bulgarian gain independence with an enlargement of other Balkan states as well as Russian gains in caucuses.
  • Bulgaria will gain access to the Aegean Sea, de facto WWP for Russia.
  • Britain and France threaten war over San Stefano, which coins the term jingoism.
  • Austria-Hungary also fear Russian expansion, since there are Slavs in Austria who might try join Russia
  • Bismarck steps in as the Peacemaker since they fear a general European conflict which would make Germany vulnerable to Revaunchsim.
• Results of the War
  • Congress of Berlin in 1878
    • Land Gains
      • Russian receives territory in the Caucasus
      • Bulgaria though reduced in size, gets semi-autonomous rights under the Ottomans
      • Bosnia becomes a protectorate of Austria (basically permission to be a imperialist nation)
      • Britain gets Cyprus to "cover" the Suez canal.
      • France is given a sphere of influence in Algeria
      • Italy gets eventual permission to imperialize Albania... later though
      • Germany gets nothing
        • Bismarck is the non-expansionist, "honest broker"
        • underscores the imperialism in Europe as first practiced upon the Ottomans
  • Within Turkey
    • The new Sultan Abdul Hamid II creates a constitution and gives power to liberal reformers.
    • Young Turks got "set up." Instead Hamid will suspend constitution and expel the Young Turks.
    • The Ottoman Empire returns to a reactionary absolute rule which retards Ottoman progress.
    • The Young Turks flee to Europe and plot to return and modernize the Empire in 1907.
  • The Ottomans are left with a really good feeling about Germany since they didn't take anything from them

US and Ottoman Imperialism

Sorry that these notes are kind of garbled I was very sleepy that day!

• Background
  • It is mainly manifested by the excess wealth of inner capitalists being invested in the outer/developing zones. The standard of living of inner workers is sacrificed for profits abroad, which raises specter of social revolution at home.
  • Inner zone's standard of living increases between 1871-1914, although real wages decline because of the influx of cheap goods form developing world investments. These investments also begin to create urban working classes outside the inner zone.
    • British socialist J.A. Hobson claims capitalism created imperialism to feed profit motive
  • The unequal distribution of wealth is a fundamental tenet of Marxism. VI Lenin writes Imperialism as :
  • The Final State of Capitalism (1911) Thesis is imperialist countries will go to war over control of markets.
  • US Imperialism in 1845 owned imperialist relations with Mexico. War extension of slavery later by 1890. Later by 1890 Manifest Destiny is achieved. The Panama canal emonates form a Covo; War in Colombia in which Panamanians secede grant vs. Canal
• Earlier had threatened British in border dispute between Venezuela and British about taxes.
  • Monroe Doctrine in 1820 20 and its corollary: The Roosevelt doctrine was designed to keep European investments in Central and Southen America
  • To back up this doctrine Teddy Roosevelt builds up the Great White FLeet. (Alfred Thayer Mahan)
  • 1898 the Mercian ostensibly because the USS Maine explodes and sinks, Maine was sent to protct the US Philippines and Purerto Rico. Sanford from the United Fruit Company. Sugar and Pineapple polly no'laeasr a naval base
  • Queen Lilivockalani tires to expel the US forced from Hawaii and is kilt. They annex Hawii in 1898 Hay.
  • Open Door Policy (free market) in 1898.
• Ottoman Empire is called the "Sick man of Europe." The weakness is an opening to imperialism especially thorugh financial iducements. Balkans, Anatolain Peninsula, Arabia, Partr of Perisa.
• Egypt has allegiance to the Sultan, head of state and caliph of Baghdad. Ottomans were a multiple religions and religious freedoms, Moreover, different religious groups administered law to followers

New Industrial Revolution

• Background
  • 1900, the height of imperialism, coincides with the peak of European population and technological superiority with the rest of the world.
  • Shift from steam power and coal resources to electrical power and oil since they are more efficient and produce more energy. More energy equals more factories which equals more stuff.
  • The problem not how much stuff you can produce, but how much you can sell.
• Transportation Revolution
  • Internal Combustion engine is developed for ships, trains, the newly developed automobiles, and aeroplanes.
  • All of these new modes of transportation lead to a transportation revolution.
  • Canals became increasingly popular for example: Suez, Panama, and Kiel
  • Nobel invents TNT, which helps create tunnels for cars and trains
• Chemical Revolution
  • New synthetic fibers
    • rayon
    • nylon
    • synthetic rubber that can be used to make gasoline
  • Pharmaceuticals, for example the big German Pharmacy called Bayern
• Industries and Factories
  • become specialized and linked by transportation
  • assembly line increases efficiency; organization of labor is stratified (labor division)
  • production increases exponentially, as does the ability to transport finished goods
  • the search increasingly becomes for new markets rather than for more goods, which leads to more imperialism
  • the search for raw materials also leads to more imperialism
• The Repeal of Corn (meaning grain, not just corn) Laws (1846)
  • What is was and what it did?
    • created a protective tariff on grains from other countries to encourage British Agricultural production
    • The British didn't want to get stuck in a situation like the did when France barricaded them using the continental system
    • The corn laws were contrary to free trade principles. The classical liberals who were a bunch of new money merchants wanted free trade and no tariffs . Free trade is what the new productive capacity desperately needs. The elimination of trade barriers encourages world trade.
    • The British catalyze a lot of other countries to do the same thing
    • the increase of inner zone trade also increases outer zone agricultural production.
    • By 1914 the inner zone are heavily dependent on world trade
• The Inner Zone during this massive expansion of world trade, encounters economic problem that contradicts standard economic practices.
  • The Balance of trade is the opposite what it seems like it should be. Imports > Exports
  • Invisible Exports
    • Shipping fees- The navy and merchant marine means that GBR rules the waves.These are a huge source of non-material income
    • Lloyd's of London- the foremost insurance company in the world. it insures your goods and reduces risk
    • London becomes the banking centre of the world. Bankers charge banking fees. Banks encourage investment and reduces risk.
    • Stocks and Bonds are sold especially on Wall Street in the City of London, which becomes the clearing house for world investments.
      • stocks are where companies offer part of their companies to the public
      • usually its governments who issue bonds. you get 100% of the return with the full maturity of the bond
      • Bonds are used to build infrastructure, strengthen military, schools and issue bonds.
      • the market for stocks and bonds is the last of the invisible exports
  • So even though there was an unfavorable balance of trade, there was a favorable balance of payments
• Investing
  • 80 million Europeans immigrate to the four corners of the globe
  • Transporting the demand for domestic goods creates foreign markets. Also with excess capital generated by inner zone, foreign investment are usually directed where there has been native emigration
  • Foreign investments are more profitable than domestic ones since local markets get saturated.
  • Inner zone countries could use this excess capital to increase the Standard of living at home
  • Wages and the expansion of welfare state are usually eschewed in favor of foreign investments
  • Oftentimes domestic sacrifices enable outer, developing world advancement. Creation of a better paid working across the world
  • one of the key things in foreign expansion is the world market or gaining new markets
  • Result of this diversion of excess capital results in
    • labor issues in the inner world: socialist, Marxist, and communist
    • capitalization of the underdeveloped world "Imperialism demands the protection of your foreign 'property'" -Cooke
• 1914 Investment Patterns
  • Great Britain
    • $20 billion invested abroad, which is 1/4 of all British Wealth
    • the US Rail system is completely financed by Brits. In 1814 US owes Europe $6 billion
    • by 1919 Europe owes the US $18 billion. The Brits also invested heavily in India, China, and Africa as well as their dominions (Canada, South Africa, Australia, and New Zealand)
  • France
    • $8.7 billion invested abroad, about 1/6 of their total wealth.
    • France's investments tend to follow their alliances, and their number one country they invested in is Russia
  • Germany
    • $6 billion invested abroad, there is some invested in A-H most with Ottomans
  • All of these investments are lost at the end of WW1
• The Gold Standard
  • means that your currency was backed by gold
  • the gold standard makes currencies very stable and facilitates world trade
  • around 1900 trade shifts from bilateral to multilateral
  • the problem is World Economies can only grow as large as your gold reserves
  • by 1890 the world slides into a depression. Deflation is dangerous for indebted nations
  • William Jennings Bryan's Cross of Gold Speech