Wealth and the World Notes Class 10 History Chapter 4 Kerala Syllabus Questions and Answers

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SSLC History Chapter 4 Notes Pdf English Medium Wealth and the World

SCERT Class 10 Social Science History Chapter 4 Wealth and the World Notes Question Answer Kerala Syllabus

Class 10 History Chapter 4 Notes Kerala Syllabus Wealth and the World

Question 1.
Examine the (Map 1) in Topic 1 closely and identify the countries marked on it. Which ocean borders these countries?
Answer:
Countries: England, France, Netherlands, Spain, Portugal
These countries are all bordered by the Atlantic Ocean, which is prominently labeled on the left side of the map.

Question 2.
Use ICT tools to expand and enhance the table on expeditions.
Answer:

Explorers	Expeditions
Vascoda Gama	Reached Calicut, India
Christopher Columbus	America
Jacques Cartier	Cananda

Question 3.
Create a digital album showcasing the effects of sea voyages and the changes they brought to the dominance in trade. Include relevant map and pictures and present this album in the class.
Answer:

Question 4.
Examine the map given below to identify the colonies established by European countries. Add this information to the table provided. Use an atlas to identify additional colonies and expand the table further.

Countries	Asia	Africa	America
Portugal	–	–	Brazil
Spain	Philippines	–	Mexico, Peru, Cuba, Florida, Jamaica
Netherlands	Malacca, Jakarta, Amboina	South Africa (Cape Colony)	Suriname
France	–	Morocco	Haiti, Canada (Quebec), Louisiana
England	India	South Africa, Ghana, Nigeria	Garibian Islands

Question 5.
Discuss and make a note on the features of mercantilism.
Answer:

• Wealth is power – Countries believed that having more gold and silver made them stronger.
• More exports than imports – They tried to sell more goods to other countries and buy less to earn money.
• Colonies are useful – Countries took control of colonies to get raw materials and sell goods.
• Government control – The government-controlled trade and business to increase wealth.
• Strong navy and army – They built strong forces to protect trade and colonies.

Question 6.
‘It is the effective utilisation of wealth that helped in the industrialisation of England. Discuss and make a note on the topic.
Answer:
England did not just store its wealth – it used it wisely. The money was spent on building machines, factories, and better tools. This made work faster and easier. They also used money to improve transport, like building roads, canals, and railways, which helped carry raw materials and finished goods more easily. Wealth was also used to support new inventions and technology, which helped industries grow quickly. This smart use of money helped England start the Industrial Revolution, making it the first industrialised country in the world.

Question 7.
How does industrial capitalism differ from merchant capitalism? Make an explanatory note.
Answer:
Industrial capitalism is different from merchant capitalism. In merchant capitalism, merchants bought and sold goods made by others. They earned profit through trade and acted as a link between producers and consumers. In industrial capitalism, people used their money to build factories and buy machines to make goods. They earned more profit by producing and selling goods themselves.

So, the main difference is:

• Merchant capitalism is based on buying and selling.
• Industrial capitalism is based on making and selling goods using factories.

Question 8.
Conduct a debate on the topic merits and demerits of Industrial Revolution.
Answer:
• Team A – Merits (Good Sides) of the Industrial Revolution:
Better Machines and Factories: The Industrial Revolution brought machines and factories that made work faster and easier.
More Jobs: Many new jobs were created in cities for people in factories.
New Inventions: Many useful inventions like the steam engine, spinning jenny, and power loom were made.
Improved Transport: Trains, ships, and better roads made travel and transport of goods easier and faster.
Cheaper Goods: Goods were made faster and in large amounts, so they became cheaper to buy.

• Team B – Demerits (Bad Sides) of the Industrial Revolution:
Child Labour: Many children had to work in factories in bad conditions for long hours.
Pollution: Factories caused air and water pollution, which harmed people and the environment.
Unhealthy Living Conditions: Workers lived in crowded and dirty places in cities.
Loss of Jobs for Some People: Artisans and hand-workers lost jobs because machines replaced them.
Poor Working Conditions: Workers had to work for long hours with little pay and no safety.

Question 9.
Discuss how imperialism has transformed the economic policies of European countries.
Answer:
Imperialism changed the economic policies of European countries in many ways.
When European countries took control of colonies, they used the colonies to get raw materials like cotton, gold, and spices. They also used the colonies as markets to sell their goods. Because of this, European countries focused on:

• Taking resources from colonies
• Building factories in Europe using those resources
• Selling finished goods back to the colonies

This helped Europe become richer, but the colonies became poorer. So, imperialism made European economic policies mainly about profit from colonies.

Question 10.
Totalitarianism was a threat to civil liberties and world peace. Discuss and make notes.
Answer:
Totalitarianism is a form of government where one leader or one political party has total control over the country. In such a system, people are not allowed to speak freely or make their own choices. The government controls everything, including the media, education, and even what people are allowed to think or say. Civil liberties like freedom of speech, religion, and press are taken away. Totalitarian leaders often use fear, violence, and strict rules to stay in power. Leaders like Adolf Hitler in Germany and Benito Mussolini in Italy followed totalitarianism. They wanted to increase their power and even started wars to do so. This kind of rule not only caused suffering to the people but also became a big threat to world peace. It created tensions between countries and was one of the main reasons that led to the Second World War.

Question 11.
Compare and make notes on the reasons and the results of both world wars.
Answer:
Reasons

World war I	World War II
Countries were building up big armies and competing with each other.	Germany, Italy, and Japan wanted more power and land.
Many countries had secret agreements to help each other in war.	Germany, Italy, and Japan allied (Axis Powers).
Nations wanted more colonies and control over land.	Countries wanted to expand and take over weaker nations.
Countries didn’t trust each other and competed.	The war started when Germany invaded Poland.

Results

World war I	World War II
Countries were building up big armies and competing with each other.	About 70 – 85 million people died (much worse).
Many countries had secret agreements to help each other in war.	Hitler and fascist leaders lost power.
Nations wanted more colonies and control over land.	Germany was divided into East and West.
Countries didn’t trust each other and competed.	United Nations was created to help keep world peace.

Std 10 History Chapter 4 Notes Kerala Syllabus – Extended Activities

Question 1.
Organise a digital exhibition that highlights significant economic policies that influenced the history of the world from the 15th to the 20th century.
Answer:
(Hints: based on the paragraph given below: conduct a digital presentation in the class)
Shaping Economies: Key Economic Policies (15th – 20th Century)

This digital exhibition explores how major economic policies have shaped global history. It began with mercantilism during European exploration, where wealth was built through trade and colonies. This led to the rise of colonial economies, which exploited native resources and labor. The Industrial Revolution followed, driven by capitalist policies like laissez-faire economics. In the 19th century, imperialism spread as powerful nations sought economic control over colonies. During World War I, war-time economies emerged, and the Treaty of Versailles caused economic turmoil. In the interwar years, totalitarian regimes used central planning to control economies. Finally, the post-war period brought recovery through the Marshall Plan, new global institutions, and mixed economies. Together, these policies reveal how economics influenced empires, wars, and modern nations.

Question 2.
Set up an exhibition in the Social science lab, using ICT, to explore the tools, inventions, and key individuals associated with the Industrial Revolution.
Answer:
(Hints: Based on the names of the given tools and individuals collect images and presnt in the exhibition.)

Tools and Inventions
Focus: Key machines and inventions
Examples:
Spinning Jenny
Steam Engine
Power Loom
Telegraph
Key Individuals
Featured People:
James Watt
Eli Whitney
Richard Arkwright
George Stephenson

Question 3.
Prepare an atlas highlighting the countries and regions associated with the major events mentioned in the chapter spanning 15^th to the 20th century.
Answer:
(Hints)
• 15th Century (1400s)
Countries/Regions Involved: Portugal, Spain, Italy, France
Fall of Constantinople (1453): Countries/Regions Involved: The Ottoman Empire, Byzantine Empire
The Renaissance (14th – 17th century): Countries/Regions Involved: Italy, France, England, the Holy Roman Empire

• 16th Century (1500s)
Countries/Regions Involved: Germany, England, France, Switzerland
The Reign of Queen Elizabeth I (1558 – 1603): Countries/Regions Involved: England, Spain

• 17th Century (1600s)
Countries/Regions .Involved: Holy Roman Empire, France, Spain, Sweden, Denmark, and other European countries

• 18th Century (1700s)
Countries/Regions Involved: Thirteen Colonies (later the United States), Great Britain, France The French Revolution (1789 – 1799): Countries/Regions Involved: France

• 19th Century (1800s)
The American Civil War (1861 – 1865): Countries/Regions Involved: United States (Union and Confederacy)

• 20th Century (1900s)
World War I(1914 – 1918): Countries/Regions Involved: Allies (France, Great Britain, Russia, Italy, United States) vs. Central Powers (Germany, Austria-Hungary, Ottoman Empire)
World War II (1939 – 1945): Countries/Regions Involved: Allies (United States, Soviet Union, Great Britain, France) vs. Axis Powers (Nazi Germany, Italy, Japan)
The Cold War (1947 – 1991): Countries/Regions Involved: United States, Soviet Union, and their respective allies Decolonisation and Independence Movements: Countries/Regions Involved: India, Africa, Southeast Asia, Caribbean.

Question 4.
Screen the movie Uncle Tom’s Cabin in the Social Science lab, which portrays theme of slavery and prepare an appreciation note.
Answer:
Uncle Tom’s Cabin, based on Harriet Beecher Stowe’s influential novel, offers a profound portrayal of the devastating impact of slavery in the United States. The film explores critical themes such as inhumanity, resilience, moral responsibility, and redemption. Through the character of Uncle Tom, viewers witness the strength and faith of an individual enduring unimaginable cruelty and his unwavering belief in dignity and compassion in the face of immense suffering. His sacrifice for others serves as a powerful symbol of hope, justice, and the ultimate cost of standing against oppression.

The film also emphasises the emotional toll of slavery, particularly the forced separation of families and the psychological trauma it caused. It reveals the profound human need for love, family, and connection, making the impact of slavery even more painful and relatable.

As much as Uncle Tom’s Cabin highlights the historical struggle for freedom and equality, it also serves as a timeless reminder of the ongoing fight for racial justice. The lessons of the past continue to resonate today, urging us to challenge systems of inequality and oppression actively. Watching this film is an opportunity not only to understand the historical context of slavery but also to reflect on how we can contribute to a more just, equal, and compassionate society.

In conclusion, the screening of Uncle Tom’s Cabin is more than just a historical reflection; it is a call to action for all of us to recognise the inherent value of every human life and to work together to ensure freedom and equality for all.

Wealth and the World Class 10 Notes Pdf

• After the Turks captured Constantinople, the primary trade route through which goods, including pepper from Asia, reached Europe was obstructed.
• Europeans began exploring new routes to access these valuable commodities and reached lands hitherto unknown to them.
• The arrival of the Portuguese sailors on the Guinea Coast marked another key milestone.
• Economic policy of European nations focused heavily on acquiring gold and silver, which were seen as symbols of wealth and power.
• According to mercantilist policy, the wealth of a nation was measured by the amount of gold and silver it possessed.
• A key characteristic of mercantilism was the effort to preserve a nation’s wealth (gold and silver) by reducing imports and increasing exports, thereby amassing wealth from other nations.
• One of the consequences of European colonisation on native populations was slavery and the slave trade in Africa.
• Individuals who had been involved in trade before these explorations became very wealthy and were referred to as merchant capitalists. This economic system was known as Merchant Capitalism.
• The merchants acted as intermediaries between producers and consumers.
• The introduction of machinery into the manufacturing sector brought about many changes. Such changes in
  the production process between 1780 and 1850 describe the Industrial Revolution.
• The Industrial Revolution began in the textile industry.
• The term ‘Agrarian Revolution’ is used to refer to the series of changes that took place in England’s agricultural sector in the 17^th century.
• As factory production increased, industrialised countries found it difficult to source raw materials exclusively from within their own borders.
• Industrial capitalists sought to maximise profits by increasing production while minimising wages.
• Imperialism is the practice by which a country establishes and maintains political, economic, and social control over regions beyond its own borders.
• First world war, w hich lasted from 1914 to 1918.
• It was the first global war in which nearly every country participated, either directly or indirectly.
• The Pan-Slav Movement advocated for the unification of regions in Eastern Europe inhabited by Slavic people. Serbia, a Balkan nation, led this movement, and Russia supported this.
• The Pan-German Movement, led by Germany, aimed to unite the Teutonic (Germanic) people. The goal of this movement was to expand German influence into Central Europe and the Balkan region.
• Totalitarianism refers to a system where the state exerts complete control over all aspects of life, disregarding individual privacy and civil rights.
• The term “Fascism” is derived from the Latin word ‘fasces, which refers to a bundle of rods and an ‘Axe’ symbolising authority and power, a representation of the rule of Roman emperors.
• The background of the second world war took place from 1939 to 1945.
• World War II begins with Germany’s invasion of Poland on September 1,1939.
• The Treaty of Versailles was a peace treaty that Germany signed with the Allies after World War I.
• The United States and the Soviet Union followed contrasting economic policies.
• Cold war ended in 1991 with the disintegration of the Soviet Union.
• The Cold War was an ideological confrontation between the capitalist countries and the socialist countries.
• Finance capitalism is an economy in which financial institutions such as banking and insurance play a major role.

INTRODUCTION

This chapter, “Wealth and the World”, explains how Europe expanded its influence and built global wealth over time. It began with European expeditions to other continents in search of new trade routes, land, and resources. These voyages led to the rise of mercantilism, where European countries focused on increasing wealth through trade and colonisation. As they took over new lands, they exploited the resources and native populations, often with harmful consequences. This expansion and access to resources eventually contributed to the Industrial Revolution, which transformed economies with machines and factories. With growing power, European nations competed for more colonies, leading to imperialism. These rivalries, along with political tensions, triggered the First World War. After the war, the harsh Treaty of Versailles punished Germany and created unrest, leading to the rise of totalitarian regimes like fascism and Nazism. The chapter concludes by examining the post-war world, where global power dynamics shifted and new political ideas began to shape the future.

European Expeditions to other continents

• After the Turks captured Constantinople, the primary trade route through which goods, including pepper from Asia, reached Europe was obstructed.
• Europeans began exploring new routes to access these valuable commodities and reached lands hitherto unknown to them.
• The arrival of the Portuguese sailors on the Guinea Coast marked another key milestone.
• These voyages and geographical explorations reshaped global history, leading to European domination and the gradual spread of European culture across the world.
• The early expeditions of Europeans were on the African continent.
• In 1488, the Portuguese sailor Bartolomeu Dias reached the Cape Hope located at the southern tip of Africa.
• A decade later, in 1498, Vasco da Gama followed the same route and successfully sailed around the eastern coast of Africa via the Cape of Good Hope.

Mercantilism

• Economic policy of European nations focused heavily on acquiring gold and silver, which were seen as symbols of wealth and power.
• According to mercantilist policy, the wealth of a nation was measured by the amount of gold and silver it possessed.
• A key characteristic of mercantilism was the effort to preserve a nation’s wealth (gold and silver) by reducing imports and increasing exports, thereby amassing wealth from other nations.
• Colonial policies refer to the policies and strategies employed by colonial powers to extract wealth from their colonies.

Colonisation and natives

• One of the consequences of European colonisation on native populations was slavery and the slave trade in Africa.
• Individuals who had been involved in trade before these explorations became very wealthy and were referred to as merchant capitalists. This economic system was known as Merchant Capitalism.
• The merchants acted as intermediaries between producers and consumers.
• Merchant capitalism gave way to industrial capitalism.

Moving towards the Industrial Revolution

• The introduction of machinery into the manufacturing sector brought about many changes.
• Such changes in the production process between 1780 and 1850 describe the Industrial Revolution. • The Industrial Revolution began in the textile industry.
• The term ‘Agrarian Revolution’ is used to refer to the series of changes that took place in England’s agricultural sector in the 17^th century.
• Friedrich Engels played a pivotal role in transforming socialism from an early-stage dream or belief into a practical, and scientific ideology
• Major changes associated with the Agrarian Revolution:
  • Small farms were consolidated to form large farms protected by fencing (Enclosure Movement)
  • Crop rotation was introduced
  • Use of new agricultural implements.

Imperialism

• As factory production increased, industrialised countries found it difficult to source raw materials exclusively from within their own borders.
• Industrial capitalists sought to maximise profits by increasing production while minimising wages.
• Imperialism is the practice by which a country establishes and maintains political, economic, and social control over regions beyond its own borders.
• By the latter half of the 19th century, countries like England and France became dominant imperial powers.

First World War

• First world war, which lasted from 1914 to 1918.
• It was the first global war in which nearly every country participated, either directly or indirectly.
• The Pan-Slav Movement advocated for the unification of regions in Eastern Europe inhabited by Slavic people. Serbia, a Balkan nation, led this movement, and Russia supported this.
• The Pan-German Movement, led by Germany, aimed to unite the Teutonic (Germanic) people. The goal of this movement was to expand German influence into Central Europe and the Balkan region.
• Extreme nationalism refers to an intense and emotional devotion to one’s country, often involving its excessive glorification.
• Two military alliances: Triple Alliance, Triple Entente.
• The League of Nations was established on January 10,1920, to restore global peace and security.

The growth of totalitarianism in Europe

• Totalitarianism refers to a system where the state exerts complete control over all aspects of life, disregarding individual privacy and civil rights.
• This ideology glorifies the state above all else, forcing citizens to live solely for their nation.
• The term “Fascism” is derived from the Latin word ‘fasces, which refers to a bundle of rods and an ‘Axe’ symbolising authority and power, a representation of the rule of Roman emperors.
• Key features of totalitarianism:
  • rejection of democracy
  • opposition to socialism
  • supporting dictatorship
  • extreme nationalism

Treaty of Versailles

• The background of the second world war took place from 1939 to 1945.
• World War II begins with Germany’s invasion of Poland on September 1,1939.
• The Treaty of Versailles was a peace treaty that Germany signed with the Allies after World War I.
• Germany was disarmed and huge war reparations were imposed on Germany.
• Imperialist rivalry led to the formation of the military alliances.
• The Munich Agreement is a prime example of Western appeasement.
• After the Second World War, the United Nations Organisation was formed with the aim of ensuring global peace and security. It was established on October 24,1945.

Post-war world

• It was economic interests that caused the imperial rivalry of the European powers and led the two world wars.
• The United States and the Soviet Union followed contrasting economic policies.
• Cold war ended in 1991 with the disintegration of the Soviet Union.
• The Cold War was an ideological confrontation between the capitalist countries and the socialist countries.
• Finance capitalism is an economy in which financial institutions such as banking and insurance play a major role.
• Finance Capitalism works with the aim of making huge profits.

EUROPEAN EXPEDITIONS TO OTHER CONTINENTS

• After the Turks captured Constantinople, the primary trade route through which goods, including pepper from Asia, reached Europe was obstructed.
• As a result, Europeans began exploring new routes to access these valuable commodities and reached lands hitherto unknown to them.
• The arrival of the Portuguese sailors on the Guinea Coast marked another key milestone.
• These voyages and geographical explorations reshaped global history, leading to European domination and the gradual spread of European culture across the world.
• The early expeditions of Europeans were on the African continent.
• In 1488, the Portuguese sailor Bartolomeu Dias reached the Cape Hope located at the southern tip of Africa.
• A decade later, in 1498, Vasco da Gama followed the same route and successfully sailed around the eastern coast of Africa via the Cape of Good Hope.
• Two significant events in the 15th-century were instrumental in launching the geographical expeditions:
  • the conquest of Constantinople by the Turks
  • arrival of the Portuguese at the Guinea Coast in Africa

Portugal and Spain were the first to embark on expeditions that reshaped the world. Soon after, other nations like the Netherlands, England, and France joined in the exploration and conquest of new territories.

These countries are located along the Atlantic coast, a geographic advantage that greatly contributed to their involvement in global exploration. Several other factors also enabled these nations to undertake successful expeditions, which include:

• the building of advanced ships capable of crossing vast oceans
• the invention of the compass and other navigational tools for determining direction
• patronage of the rulers
• strong military power
• extensive experience in seafaring
• advances in cartography and astronomy

Knowledge of the gold deposits in the Niger plains motivated Portugal to embark on such ventures. The Portuguese initiated their conquest of Africa in 1415 by capturing Ceuta, a city on the Moroccan coast. This city later became a vital granary for them. One of the early challenges for Portuguese explorers was crossing Cape Bojador. However, after successfully navigating it in 1434, they gained access to other regions along the African coast. This breakthrough allowed them to profit significantly from the trade of gold and slaves, further encouraging their exploration efforts. In addition to Africa, the Portuguese expanded agriculture and established colonies on nearby islands in the Atlantic. In short, these ventures in Africa and the colonisation of Atlantic islands eventually paved the way for finding a sea route to Asia, marking a crucial milestone in global exploration.

Colonisation
Colonisation is a process by which a country establishes dominion in an alien country. The colonisers tried to exploit the colonies through economic, political and cultural domination.

In 1488, the Portuguese sailor Bartolomeu Dias reached the Cape of Good Hope, located at the southern tip of Africa. However, he was unable to navigate the rough sea route to India and was forced to return. Learning from this challenge, the Portuguese began building sturdier ships capable of withstanding the harsh conditions of the Indian Ocean. A decade later, in 1498, Vasco da Gama followed the same route and successfully sailed around the eastern coast of Africa via the Cape of Good Hope. He eventually reached the shores of Kappad in Kozhikode, India. This marked the beginning of European domination in India.

Spain was another country that took part in geographical expeditions. They too had long coast and the seafaring heritage just like the Portuguese. They received the patronage of King Ferdinand and Isabella the rulers of Spain. With the financial aid of Spain in 1492 Christopher Columbus, an Italian navigator, reached the Bahamas Islands located in the southeastern region of North America. This journey led to the discovery of a previously unknown continent for Europeans. The event paved the way for the invasion and exploitation of the region by Europeans, which came to be known as the “New World.” Eventually, this region was named America.

Atlantic Islands

The Atlantic Islands are located to the west of Africa in the Atlantic Ocean. Notable among them are Madeira, Azores, Canary and Cape Verde. These islands served as agricultural lands and strategic port centers. The Portuguese, who initially controlled many of these islands, used them as key bases for their operations in Africa and as stopover points for ships travelling to Asia to restock food and water. Later, the Canary Islands became a colony of Spain.

Prince Henry: Prince Henry of Portugal played a pivotal role in encouraging maritime exploration. In 1419, he established a navigation school in Sagres, Portugal, which trained sailors in the skills of sea voyages and cartography. Under his leadership, significant progress was made in the discovery of the Atlantic Islands and expeditions along the western coast of Africa.

Geographical explorations had far-reaching consequences. Let us examine some of them:

• The Atlantic coast emerged as the most important trade route, connecting Europe with the Americas, Asia, and Africa. This shift led to a decline in Mediterranean trade and the rise of Atlantic trade.
• Large parts of the Americas, Africa, and Asia came under European invasion and colonisation.
• Efforts were made by Europeans to monopolise the trade of pepper and other spices from Asia.
• Gold and silver were transported in large quantities from South America to Europe, with a portion of this wealth eventually reaching India.
• The development of the triangular trade system connecting Europe, Africa, and the Americas.
• The influx of gold and silver into Europe increased the use of currency, accelerating monetisation.

Over a period of time, the dominance in trade of Portugal and Spain declined, and countries like England, the Netherlands, and France took their place. In the competition among these nations, France and England surpassed the Netherlands and established colonies in Asia, Africa, and the Americas. The American regions once controlled by Spain and Portugal came to be known as Latin America. Subsequently, the world witnessed intense rivalry between England and France as they sought to maximise financial gains through colonisation.

Triangular trade

The products from Europe were sent to Africa, where Americas to be sold. From the Americas, goods such as sugar, wine, and cotton were then shipped to Europe. This system of trade, developed by Europeans, linking Europe, Africa, and the Americas, is known as the triangular trade.

How did the name “ America” come into being? …………
After Bartolomeu Dias, Christopher Columbus attempted to find a sea route to Asia. In 1492, he reached the Bahamas Islands near North America, mistakenly believing he had reached India. Later, an Italian explorer named Amerigo Vespucci realised that this was, in fact, a previously unknown continent, which he referred to as the “New World.” In 1507, a German cartographer named Martin Waldseemiiller named the region “America” in honor of Amerigo Vespucci.

MERCANTILISM

• Economic policy of European nations focused heavily on acquiring gold and silver, which were seen as symbols of wealth and power.
• According to mercantilist policy, the wealth of a nation was measured by the amount of gold and silver it possessed.
• A key characteristic of mercantilism was the effort to preserve a nation’s wealth (gold and silver) by reducing imports and increasing exports, thereby amassing wealth from other nations.

When Lord Vimioso learned that gold and silver had to be given to Indians in exchange for their goods, he felt that Europe was losing its precious resources and gave such a response. This highlights the concept of mercantilism, an economic policy where nations aimed to accumulate wealth, primarily gold and silver, through trade and other means. Countries that adopted this policy competed to accumulate wealth in the form of these precious metals.

COLONIAL POLICIES
• Colonial policies refer to the policies and strategies employed by colonial powers to extract wealth from their colonies.

The primary aim of the Portuguese colonial policy was to break the Asian spice trade monopoly of the Arabs and secure control over it. Under this policy, trade in the colonies became a monopoly of the Portuguese king. The Portuguese sought to keep other European powers out of this trade. As part of this effort, non-Portuguese individuals were prevented from travelling on Portuguese ships. Spain also governed its colonies directly under the authority of the king, focusing on extracting as much gold and silver as possible from the Americas to enrich the kingdom. In contrast, the Dutch and the English conducted their colonial trade through joint-stock companies. However, the Spanish and Portuguese kings directly controlled colonial trade. They used the wealth thus earned to build and renovate palaces. At the same time, companies like those in England and the Netherlands reinvested
their profits back into their businesses. This reinvestment substantially contributed to the growth of industries in England, playing a crucial role in its economic development.

Joint Stock Company: These are established by pooling capital from various sources, emphasising the importance of share investments. These companies facilitate investments by allowing individuals to contribute capital in shares

Bullion Coin
The silver and gold collected as wealth were known as Bullion. The value and amount of the metals in the coins were considered for the transactions. E.g., the value of the gold in a gold coin would be considered as its value in transaction.

COLONISATION AND NATIVES

• One of the consequences of European colonisation on native populations was slavery and the slave trade in Africa.
• Individuals who had been involved in trade before these explorations became very wealthy and were referred to as merchant capitalists. This economic system was known as Merchant Capitalism.
• The merchants acted as intermediaries between producers and consumers.
• Merchant capitalism gave way to industrial capitalism.

Factors that affected colonisation include:

• Wealth was extracted from the colonies and flowed into European countries
• natives lost their economic and political rights over their own regions
• indigenous cultures in the colonies faced destruction
• Western lifestyles and practices spread across the colonies
• Christianity was propagated in colonised regions

NEW WORLD, CHANGING ECONOMIC ORDERS
In this system, merchants supplied raw materials to artisans living in rural areas. The artisans manufactured goods in cottage-based production. After compensating the artisans for their labour, the merchants sold the finished products and made profits. These merchants acted as intermediaries between producers and consumers. England started industries using the wealth gained through eolonisation. Those who invested their wealth in this way became the owners of industries and made huge profits. With this, merchant capitalism gave way to industrial capitalism.

MOVING TOWARDS THE INDUSTRIAL REVOLUTION

• The introduction of machinery into the manufacturing sector brought about many changes.
• Such changes in the production process between 1780 and 1850 describe the Industrial Revolution.
• The Industrial Revolution began in the textile industry.
• The term ‘Agrarian Revolution’ is used to refer to the series of changes that took place in England’s agricultural sector in the 17^th century.

Let us examine the major changes that took place as part of the Industrial Revolution.

• production was mechanised
• advancement in metallurgy leading to the production of better tools
• Steam was used as a source of energy
• transport facilities developed
• Production shifted from cottages to factories

Agrarian Revolution
The term ‘Agrarian Revolution’ is used to refer to the series of changes that took place in England’s agricultural sector in the 17th century. Major changes associated with the Agrarian Revolution:

• Small farms were consolidated to form large farms protected by fencing (Enclosure Movement)
• Crop rotation was introduced
• Use of new agricultural implements.
  As a result, there was an increase in food production.

The Industrial Revolution paved the way for both positive and negative changes:

Merits	Demerits
Rise of factories	Exploitation of labourers
Increase in production	Poverty, epidemics
New employment opportunities	Long working hours and low wages for women and children
Rise of cities and urbanisation	Rise of slums
Urban life	Busy and polluted cities
Better living conditions	Miserable life for labourers in cities

In response to industrial capitalist exploitation, various forms of resistance and ideologies emerged, with socialism being ‘one of the most significant. The core principles of socialist ideologies were the equitable distribution of goods and resources, and the common ownership of the means of production. Karl Marx and Friedrich Engels played a pivotal role in transforming socialism from an early-stage dream or belief into a practical and scientific ideology.

IMPERIALISM

• As factory production increased, industrialised countries found it difficult to source raw materials exclusively from within their own borders.
• Industrial capitalists sought to maximise profits by increasing production while minimising wages.
• Imperialism is the practice by which a country establishes and maintains political, economic, and social control over regions beyond its own borders.

Imperialism
Imperialism is the practice by which a country establishes and maintains political, economic, and social control over regions beyond its own borders.

This cartoon, (Rubber coils in the Belgian Congo) published in 1906 in the British satirical magazine Punch, depicts King Leopold of Belgium as a snake constricting a native of Congo. It highlights the devastating impact of Belgium’s rubber plantations on the people of Congo, an African country.

As factory production increased, industrialised countries found it difficult to source raw materials exclusively from within their own borders. As a result, countries like Belgium turned to their colonies, such as Congo, to obtain raw materials like rubber. However, reducing wages decreased the purchasing power of workers, making it harder to sell goods domestically. This led industrialised nations to seek markets abroad. Colonies became both a source of raw materials and a market for European manufactured goods. To secure this arrangement, European countries established political control over their colonies, which paved the way for imperialism.

By the latter half of the 19th century, countries like England and France became dominant imperial powers. These two countries controlled a major portion of the world. Soon, Germany, Italy, Belgium, the USA and Japan also emerged as new imperial nations. The new imperial nations made attempts to expand their colonies in various parts of the world. This led to the competition between the new and old imperial nations. This influenced the course of history in the 20th century and paved way for new conflicts.

FIRST WORLD WAR

• First world war, which lasted from 1914 to 1918.
• It was the first global war in which nearly every country participated, either directly or indirectly.
• The Pan-Slav Movement advocated for the unification of regions in Eastern Europe inhabited by Slavic people. Serbia, a Balkan nation, led this movement, and Russia supported this.
• The Pan-German Movement, led by Germany, aimed to unite the Teutonic (Germanic) people. The goal of this movement was to expand German influence into Central Europe and the Balkan region.

IMPERIALIST RIVALRY
The new imperialist nations could expand their influence only by capturing territories controlled by the older imperialist powers. Germany’s unprecedented progress in economic and industrial sectors caused concern for France and England. With much of Asia and Africa already under British and French control, Germany turned its focus towards regions under the Ottoman Empire. To achieve this, they planned the construction of the Berlin-Baghdad railway line. This project alarmed England, France, and Russia, as they feared it could threaten the security of their territories. Consequently, tensions and hostilities began to escalate among these nations.

EXTREME NATIONALISM

• Extreme nationalism refers to an intense and emotional devotion to one’s country, often involving its excessive glorification.
• This concept is often related to racism.

Many nations argued that regions inhabited by a particular race rightfully belong to that race alone. Such arguments were used by many nations to justify territorial expansion and conquest. In countries like Germany and Serbia, extreme nationalism grew in alarming proportions. Movements such as Pan-Slavism and Pan- Germanism serve as examples of organisations promoting such extreme nationalist ideologies.

Pan-Slav Movement
The Pan-Slav Movement advocated for the unification of regions in Eastern Europe inhabited by Slavic people. Serbia, a Balkan nation, led this movement and Russia supported this.

Pan-German Movement
The Pan-German Movement, led by Germany, aimed to unite the Teutonic (Germanic) people. The goal of this movement was to expand German influence into Central Europe and the Balkan region.

FORMATION OF MILITARY ALLIANCES

• The competition for colonies and the rise of extreme nationalism created fear and mistrust among European nations. This atmosphere of suspicion led to the formation of military alliances.
• Two military alliances: Triple Alliance, Triple Entente.
• Sarajevo, the capital of Bosnia, was the site of a significant event that further fuelled tensions.

Conflicts arose across various parts of the world between countries belonging to the two major alliances. These conflicts often stemmed from attempts to seize colonies held by rival nations. The situation escalated as allied nations joined forces with their respective allies, intensifying the clashes.

Sarajevo, the capital of Bosnia, was the site of a significant event that further fuelled tensions. Archduke Franz Ferdinand, the Crown Prince of Austria-Hungary, was assassinated in Sarajevo, where former French president Mitterrand visited. The assassin, Gavrilo Princip, was a Serbian nationalist. Due to the existing conflict between Serbia and Austria-Hungary, Austria accused Serbia of orchestrating the assassination. This led Austria- Hungary to declare war against on Serbia on July 28, 1914. As allied nations aligned themselves with their respective sides, the conflict expanded into a World War.

Aftermath of the First World War:

• Millions of soldiers and civilians lost their lives
• Industrial and agricultural sectors were devastated
• marked the beginning of the decline of European global domination
• Freedom movements in Asia and Africa gained momentum.
• Formation of the League of Nations
• Italy, Germany, and Spain transitioned to totalitarian regimes

League of Nations
Woodrow Wilson, the American President, proposed the idea of forming an international organisation to maintain world peace and ensure freedom for all nations. Based on this proposal, the League of Nations was established on January 10,1920, to restore global peace and security.

THE GROWTH OF TOTALITARIANISM IN EUROPE

• Totalitarianism refers to a system where the state exerts complete control over all aspects of life, disregarding individual privacy and civil rights.
• This ideology glorifies the state above all else, forcing citizens to live solely for their nation.
• The term “Fascism” is derived from the Latin word ‘fasces, which refers to a bundle of rods and an ‘Axe’ symbolising authority and power, a representation of the rule of Roman emperors.

Key features of totalitarianism:

• rejection of democracy
• opposition to socialism’
• supporting dictatorship
• extreme nationalism
• elimination of political opponents
• glorification of war and violence

Fascism
The term “Fascism” is derived from the Latin word ‘fasces’, which refers to ‘a bundle of rods and an ‘Axe’ symbolising authority and power, a representation of the rule of Roman emperors.

Totalitarian movements that came to power in Italy and Germany after the World War:

TREATY OF VERSAILLES

• The background of the second world war took place from 1939 to 1945.
• World War II begins with Germany’s invasion of Poland on September 1, 1939.
• The Treaty of Versailles was a peace treaty that Germany signed with the Allies after World War I.
• Germany was disarmed and huge war reparations were imposed on Germany.
• Imperialist rivalry led to the formation of the military alliances.

TREATY OF VERSAILLES
The Treaty of Versailles was a peace treaty that Germany signed with the Allies after World War I. Its provisions sowed the seeds of World War II. Under this treaty, Germany lost its colonies and territories it held. Germany was disarmed and huge war reparations were imposed on Germany. In short, World War II was a German revolt against the Treaty of Versailles and its architects.

The Failure of League of Nations:
The League of Nations formed after World War I was unable to resolve disputes or enforce international disarmament. The league failed to act when Japan, Italy, and Germany launched offensives.

FORMATION OF MILITARY ALLIANCES
Imperialist rivalry led to the formation of the following military alliances.

Later Soviet Union and USA became part of the allied powers

Munich agreement
Hitler laid claim to the Sudetenland, the most industrialised region of Czechoslovakia. Hitler’s argument was based on the large German population living in Czechoslovakia. Instead of resisting Hitler’s argument, France and Britain ceded the Sudetenland to Germany in a treaty signed in Munich, Germany in 1938. This is called the Munich Agreement. This treaty was not ratified by Czechoslovakia. The Soviet Union, which supported them, was not invited to the talks.

POLICY OF APPEASEMENT

• The Soviet Union, which came into being after the Russian Revolution, spread socialist ideas around the world.
• The Munich Agreement is a prime example of Western appeasement.

The Soviet Union, which came into being after the Russian Revolution, spread socialist ideas around the world. This was a threat to other western capitalist countries. For this reason, they saw the Soviet Union as their enemy. They saw fascist aggression as a means of countering the spread of socialist ideas. The Munich Agreement is a prime example of Western appeasement. These appeasement policies gave Hitler confidence and he continued his offensives aggressively. World War II begins with Germany’s invasion of Poland on September 1,1939.

Results of the war:

• Millions lost their lives
• Famines and epidemics spread throughout the world
• The European economy collapsed
• Colonisation and imperialism faced setbacks
• Europe’s hegemony came to an end
• The United Nations Organization was formed
• Totalitarianism ended in Italy and Germany
• Colonies in Asia and Africa gained independence
• The United States and the Soviet Union emerged as global powers

United Nations Organisation
After the Second World War, the United Nations Organisation was formed with the aim of ensuring global peace and security. It was established on October 24,1945.

POST WAR WORLD

• It was economic interests that caused the imperial rivalry of the European powers and led the two world wars.
• The United States and the Soviet Union followed contrasting economic policies.
• Cold war ended in 1991 with the disintegration of the Soviet Union.
• The Cold War was an ideological confrontation between the capitalist countries and the socialist countries.
• Finance capitalism is an economy in which financial institutions such as banking and insurance play a major role.
• Finance Capitalism works with the aim of making huge profits.

By the end of World War II, the European powers that had fought each other had become irrelevant. The United States and the Soviet Union followed contrasting economic policies. While the United States adopted capitalist policies and the Soviet Union opted for socialist policies. Both countries were wary of each other and tried to spread their ideas throughout the world. This cold war between them lasted for about half a century. Cold war ended in 1991 with the disintegration of the Soviet Union.

Cold War
The Cold War was an ideological confrontation between the capitalist countries after the Second World War. This was not a time of apparent war or peace. The Non-Aligned Movement is a coalition of countries that did not belong in either of these camps.

The colonies, in Asia and Africa gained independence after second world war. With this, America followed capitalist ideas and adopted new ways to gain wealth. The USA funded the newly independent countries, which was a form of exploitation. This was a different kind of colonisation. This policy is known as Neo Colonialism. This new colonial policy was implemented through finance capitalism.

FINANCE CAPITALISM

• Financial exchanges are more important at this stage than industrial production and population welfare.
• Banks, stock market and investment institutions play a crucial role in this economy.
• This system allows for the accumulation of more wealth without any production or technological change.

Finance capitalism allows big corporates to exert influence beyond military power and war. Such companies invest in different countries and make profits. Finance Capitalism works with the aim of making huge profits. Common people and those involved in traditional occupations continued to suffer the consequences. They lose the resources they could have used freely and are controlled by capitalists. Uncontrolled exploitation of resources also leads to environmental problems.

New technologies and related changes in society have led to the emergence of these economic changes. Capitalism developed through several stages over five centuries. It highlights the role of economic factors and systems in determining the course of history. Along with this, this period also witnessed the collapse of human values before capitalist interests.