COLONIAL ECONOMY

Establishment of Colonial Economy

The Meaning and Objectives of Colonial Economy

Explain the meaning and objectives of colonial economy

Colonial economy was introduced in order to increase production distribution and consumption of material wealth.

Why colonial economy was introduced to Africa

Colonial economy in Africa was introduced due to the industrial revolution in Europe which led to a need for raw materials, markets, areas of investment and labourers. In order to solve those problems, Europeans established five economic activities such as agriculture, mining, industry, trade and infrastructure.

Features of colonial economy

Colonial economy had several features which differ from the pre-colonial economy in the following ways:

1. Colonial economy was export oriented (e.g. production of cash crops, mineral.
2. It was exploitative in nature,that is Africans were highly exploited.
3. It went hand in hand with alienation of Africans (Africans were alienated from their land which was used by the Europeans).
4. Colonial economy used forced labour (in areas where colonial rulers opened projects).
5. Colonial economy was a cash economy that is, exchange was done on monetary terms.
6. It went together with the use of high capital in opening of economic activities like agriculture, mining etc.
7. Colonial economy involved small scale and large-scale production.
8. It went together with introduction of tax. This tax went to the colonial government.

The Tactics used to Establish Colonial Economy

Analyse critically the tactics used to establish colonial economy

Establishment of colonial economy in Africa

In establishing colonial economy Europeans used different methods: Creative, destructive and preservation.

a. Creative

Colonial rulers introduced new modes of production in Africa such as:

1. The introduction of a cash economy, exchange took place through cash.
2. Introduction of land alienation where European took fertile belonging to Africans.
3. Colonialists introduced large-scale farms e.g. tea plantations and settler farms in Africa.
4. Africans were forced to pay tax in cash to the colonial government.
5. It went together with the construction of infrastructure for the benefit of colonial powers.
6. Africans were forced to work in colonial projects.

b. Destructive

Colonial power tended to be destructive to Africa:

1. Colonialism destroyed African local industries in order to gain market and labourers.
2. Colonial governments tended to destroy African culture e.g. initiation ceremony. This was done to obtain cheap labour.

c. Preservative

1. Colonial governments preserved peasant economy in some areas e.g. in Uganda, West Africa etc.
2. African mode of production was allowed to continue e.g. Feudalism in Uganda and primitive communal mode of production in other areas.

Activity 1

1. Colonial economy was destructive, creative and preservative, discus.
2. Discuss the methods that were used by Europeans to establish colonial economy in Africa.

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