INDUSTRIAL CAPITALISM

The Meaning of Industrial Capitalism

Explain the meaning of industrial capitalism

Capitalism is the social, political and economic system based on private ownership of the major means of production. It first developed in Europe during the fifteenth century when feudalism collapsed.

Under the capitalism system companies and individuals own and direct most of the resources used in production of goods and services. Capitalism underwent different stages before reaching its maturity. These stages included:

• Commercial or mercantile capitalism
• Industrial capitalism
• Monopoly capitalism

The commercial or mercantile capitalism took place between the year 1500 and 1750 this was capitalism based on trade. The merchants obtained wealth through trade activities. A lot of wealth was accumulated during this period and therefore increased new demands that resulted into development of another stage of capitalism known as industrial capitalism.

The next stage was industrial capitalism; this was the period when machines begun to be used for production in industries. The transition to industrial capitalism was the period when mercantile capitalism was giving way to industrial capitalism.

The transition was manifested by five major events namely:

• Political revolution
• Agrarian revolution
• Demographic revolution
• Commercial revolution
• Transport revolution

Therefore, the above mentioned revolution created a conducive condition for capitalism to enter in the second stag; industrial capitalism. This new stage was characterised by intensive competition among the industrial capitalists. They were competing in terms of production of goods and profit maximisation. This stage of industrial capitalism took place between the 1750s and 1870s.

The Demands of Industrial Capitalism

Explain the demands of industrial capitalism

There were several demands of industrial capitalism, but most of them were mainly economic. These included:

• The need for raw materials
• Markets
• Areas for investment
• Cheap labour

At the period of industrial capitalism there were also changes in the methods of production of commodities that the world was demanding in increasing quantities.

The new methods of production involved the invention of machinery and the investment of huge capital. Industrial capitalism began in England by the end of eighteenth century; other countries such as French, Italy, German and Belgium were growing into industrial nations.

This necessitated the high demand of industrial capitalism to advance several demands as explained below:

The need for raw materials

This was caused by increasing production due to expansion of industries which needed large quantities of raw materials supply. These materials included cotton, coffee, tea, iron ore, palm oil, sisal, sugar cane, tobacco and rubber.

The available raw materials could not meet the demand. At the same time they could not be produced in Europe at large quantities. This resulted into the search and control of the sources of raw materials.

The need for markets

Due to the investment of capital in production, industrial goods flooded the European markets. Overproduction and under consumption became a critical problem among the industrial capitalists hence they were forced to look for markets outside Europe

Areas for investment

Due to unreliable markets and high concentration of capital in Europe, profit marginalization occurred. As a solution new areas for investment were needed among other areas, Africa provided the best areas for investment of such capital

In Africa the tropical crops could do better compared to other countries it was also a good source for non agricultural raw materials such as minerals and forest products.

Need for cheap labour

Due to labour consciousness caused by working class in Europe and Britain in particular, the need to search for cheap labour become important. This was a measure taken to compete in production for profit maximisation.

Reasons for the increasing demand of industrial development in 19th century

Competition in industrial production:European capitalist nations increased the demand for industrial development as a result of competition in industrial production.

During the period before the nineteenth century Britain dominated the industrial production and was the leading major industrial nation in the world.

However, in the nineteenth century other European nations such as German, France, Italy and Belgium became industrial nations. The emergence of other nations in industrial development brought about competition for markets of industrial goods, raw materials and areas for investment. Therefore, the industrial nations were compelled to look for an alternative for that competition outside Europe, where they could sell their goods and collect raw materials.

Demands for raw materials: The highly demanded raw materials were cotton, oil, sugar cane, ivory, rubber and iron ore. Most of these raw materials could not be found in Europe in large quantities. In fact, those tropical crops could not grow in Europe. Following this Europe decided to produce such raw materials in Africa, India, New Zealand, Australia and China. In those areas raw materials were produced in large quantity than in Britain and other nations in Europe.

In Africa sugar cane plantation were established by the French in the Reunion and Mauritius Islands. The French depended on slave labour in those plantation the main sources of slaves was east Africa and some parts of southern Africa such as Mozambique.

The rise of other industrial nations: In the 1870s other European countries were industrialised this resulted in increased demand of raw materials. Therefore, it was difficult for one European country to obtain raw materials from other European countries.

It was also more difficult for one European country to export her manufactured goods to another European country. Each country was struggling to protect its domestic market industries and controlling its sources of raw materials.

American independence: Resulted in the development of the industrial sector. By the beginning of the 1870s, Europe could not easily enter U.S.A since it had introduced protective tariffs to keep out foreign manufactured goods and protect its industries. By the 1860s, markets for manufactured goods and sources of raw materials in Europe had greatly declined.

Accumulation of wealth: In order to ensure this they decided to invest the wealth that was being obtained in industries into other areas outside Europe.

Overpopulation and unemployment:The problem of overpopulation and unemploymentwas also rising in European countries. Therefore, the solution to those problems was sought outside Europe

The need for assurance of genuine and reliable markets and control of sources of raw materials: Europeemployed and sent agents to various important regions of Africa. These industrial capitalism agents prepared Africans for colonisation in future years. Therefore, in the early nineteenth century European activities in Africa were led by agents of industrial capitalism known as agents of colonisation.

Agents of Industrial Capitalism

There were about four groups of agents of industrial capitalism in Africa namely:

• Explorers
• Missionaries
• Traders
• Companies
• Association

Explorers

During the nineteenth century the major aim of European powers was the exploration of Africa. In east Africa, exploration was done by the prominent explores such as Speke, Burton, Grant, Samuel Baker, Henry M. Stanley and Dr. Livingstone, while in central Africa and parts of Congo the prominent explorers were Dr. Livingstone and later Henry M. Stanley. And in West Africa the prominent explorers included Richard Lander, Dr. Barth Mungo Park, Clapperton, Dr. Baikie, Gaspard Mollien and Cailie.

The journey of exploration was financed and supported by European capitalists. The main aim was to gather information about Africa because they needed a wider knowledge of the continent. They also wanted to know about the raw materials which African had to sell and the location of the main centers of population. Moreover, they were interested in the knowledge of transport potentialities of African great river systems. For example the British explorer, Mungo Park in 1780s, followed by Clapperton and Richard Lander explored the Niger and gathered important information about the economy and politics of West Africa.

Roles of explorers

They reported back about the potentialities of the African resources: Clapperton reported about the river Niger to the British government while Speke reported about the potentiality of Lake Victoria and named it Victoria to honor Queen Victoria of the United Kingdom.

They provided important information about the nature of African societies: They reported about thehostility, calmness and hospitality of the African people. This information played a central role for the European colonialists during the decision making process regarding the colonisation of Africa.

They explored important mountains and researched the geology, climatic conditions, topography, lakes and animal species in Africa:This knowledge later attracted European powers to colonise Africa.

They provided messages to their government about the existing evils of slave trade and the areas where slave trade was still conducted:Dr. Livingstone's third journey through Tanganyika and Lake Regions of central Africa was targeted for that as a result he informed the English that the Yao's land was still characterised by slave raids and the effects of slave trade such as sufferings, insecurity.

The information provided by explorers to their government was later used by humanitarians in the struggle against the colonisation of Africa.

Missionaries

By the 19th century missionary activities had started in Africa. The pioneers were the protestant churches of Europe and America. It was only later that Roman arrived especially from France. The domination of missionaries were the London missionary society, the church missionary society, Roman Catholic missionary society and the universities mission to central Africa (UMCA).

Few Christian missionaries were directly active agents of imperialism. They were essential ingredients of the increasingly assertive European access to Africa. However In most cases European Christian played an important role in promoting and shaping the advent of European capitalism.

The Roles of the Agents of Industrial Capitalism in Preparing Africa for Colonisation

Explain the roles of the agents of industrial capitalism in preparing Africa for colonization

The role played by missionaries in the colonisation of Africa

They acted as interpreters and propagandists at the time of treaty making:Mofat stayed among the Ndebele for about 30 years serving the British South African company (BSAC) for treaty making between the companies (BSAC) and King Lobengula.

They acted as advisors to African chiefs:The British missionaries of the church missionary society convinced Kabaka to accept protectorate.

They introduced Western civilisation to the interior through education and schools: Thisaimed to prepare people of low ranks to serving colonial masters at the time of colonisation.

Missionaries softened the minds and the hearts of Africans: Their activities were influenced by European imperialists' interests by preaching and emphasising the spiritual beliefs such as “give to God what which belongs to God," and "give to Ceaser what belongs to Ceaser”. In the long run this preaching weakened African opposition and shaped the regions for future colonial administration.

They converted Africans to the new faith: They were easily employed as puppets to extend colonial rule. Typical examples are the converts of Sierra Leone, Nigeria and Ghana who were able to protect the British economic interests and paved the way for future colonisation by the British.

Missionaries reduced resistance among African societies: This was done by converting some societies and preaching obedience to administrators.

Introduction of new crops: Horner grew coffee at Bagamoyo around 1870 the church missionaries society grew cotton in Uganda. This prepared people to acquire the skills which were important for future cash crop production during the colonial era.

They helped in the abolition of slave trade: Theyplanned for successful Christianisation of the freed slaves as they preached the word of God. They wanted to create the conducive and peaceful environment for the development of legitimate trade which was exploitative in nature and was after capitalists interests.

Missionaries had closer links with rulers and interfered even in political matters:They allied European imperialism while they were working in the interior of Africa. This situation provoked the hostility from African rulers. In this case missionaries appealed strongly for the protection from their home governments, which later led to effective colonisation.

Traders

Traders were among the first Europeans to visit the interior and coastal areas of Africa. They came under the influence of capitalists who also supported missionaries and explorers.

Their main aim was to exploit the new sources of raw materials, markets and new areas in which industrial capitalists had to invest their capital. Examples of traders are William Macknnon, James Stevenson, Harry Johnston and Carl Peters.

The role played by traders in the colonisation of Africa

They opened a new a exploitative system: Therefore, Africa became the target for European interests. This resulted in stiff rivalries and competition among European industrial nations.

Introduction of circuit through legitimate trade: Thisinvolved the importation of European manufactured goods. Thus, the chain of dependence was created and the African local industries and the arts were destroyed.

Traders exposed Africa to the world capitalist system of economy: The use of currency, banking and credit facilities began to be witnessed by Africans. This resulted into exploitation of African resources. The fair and quick turns obtained by traders attracted European colonialists to come into Africa.

They opened communication systems such as roads:This laid the foundation for future colonial infrastructure. For example, the road from Lake Nyasa to Tanganyika known as Livingstone road was opened by traders and was used during the colonial administration.

Companies and associations

Companies and association were among the most important agents of colonisation of Africa. Agents organised themselves into companies and associations. They received finance from their home government so as to operate effectively and differently in those areas, where the governing powers had their economic interests. They aimed at financing the exploration that showed the interest of coming to Africa.

Examples of the association included the Royal British Geographical society, financed by John Speke to explore the river Nile. Another was the African Association of British, which in 1788 financed Mungo Park. Its major aim was to explore and identify the areas suitable for agriculture, which could produce enough materials for export. Another concern of that association was to identify the navigable rivers, mineral deposits and assessing the market available for industrial goods.

In the abolition of slave trade, merchant companies became increasingly involved in the interior of Africa. The major aim of these companies was to establish the so called “legitimate trade”. This was trade in commodities and other resources that industrial capitalist required as raw materials or as food for the urban working classes. The legitimate trade did not involve the selling and buying human

Several companies in Africa were established at strategic points for the purpose of collecting important commodities for export and supplying manufactured goods from Europe.

In East Africa examples of these companies were the Imperial British East African Company (I.B.E.A.C) founded in 1886 by William Macknnon. It was also known as the British East Africa Association. Another company was the Germany East African Company (G.E.A.C) founded in 1884 by Carl Peters. In West Africa examples of companies formed included the Royal Niger Company (R.N.C) which was formed by George Turban Goldie in 1884.

The association was concerned with commercial activities. King Leopold expected that the company could improve the lives of native as well as civilising them, exploiting natural resources and abolishing slave trade and slavery in the region.

In central Africa the company prevailed was the Livingstone central Africa Company (L.C.A.C). it was formed by Scottish capita lists James Steven in 1878.

In south Africa there was the British south Africa company (B.S.A.C) formed by Cecil Rhodes as a private company and operated in south and central Africa by the year 1889, the company was given a royal charter that included the full powers to administer the company.

The role played by companies in the colonisation of Africa.

Monopolisation and exploitation of African resources: These resources were highly needed by the European capitalists in their industries. In all parts of Africa Company played a crucial role of collecting raw materials and carried out trade activities.

Elimination of local middlemen and creation of custom duties and tariffs: These was carried out by the companies which attracted the imperialists powers to control Africa.

The companies encouraged their home government to colonise Africa: For example; the Royal Niger Company encouraged the British to colonise Nigeria after gaining the control of the different trading areas in the region.

Signing treaties: The company played an important role of signing different treaties with African local chiefs. These treaties helped imperial powers to claim and justify the colonisation of particular territories, especially during the Berlin Conference

One example was a treaty signed between Harry Johnston and chief Mandara of Uchaga in 1884 to control thirteen square kilometers of land in Kilimanjaro. Also Dr. Carl Peters of the society for German colonisation signed treaties with a number of chief between Pangani and Rufiji. These treaties were later used by the German government to control Tanganyika.

Creation of infrastructure: These included commercial centers, administrative headquarters, roads, railways and waterways. They were allocated in those areas where they operated where by later on were used by the imperial powers to transport administrators to colonise and impose laws on the land.

The companies laid foundations for their home government to colonise African:They suppressed African resistance through a police force used to maintain peace, order and stability within the region. For example in East Africa, the German East African Company recruited Swahili, Sudanese and Buganda soldier to counter the coastal Arab resistance of 1888-1889.

They provided important information about economic potentiality of African areas:Africa was exposed to the imperial powers which aimed to colonise the continent.

The companies provided rudimentary administration in areas of their operation: Some company leaders such as Sir. George Turban Goldie of the Royal Niger Company, Harry Johnston, the representative of Cecil Rhodes of the British South Africa Company, attended the Berlin Conference of 1884-188 5. They also notified the conference about areas where they operate on behalf of their mother countries.

The company played an important role of marking of the administrative boundaries: Which were later identified as boundaries of the European spheres of influence. They prevented any other rival European imperial power from taking their territories. This was evidenced in East Africa where the German East Africa Company marked the area of the German in the Anglo-German rivalry and achieved the 1886 agreement. While in South Africa the British South Africa Company managed to map the claims of Britain, thus preventing the Portuguese from interfering in the British sphere of influence.

Furthermore, the companies used their security organs to abolish slave trade in the areas of their influence. They introduced legitimate trade in Africa.

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