Historical Factors of Economic Development

Historical Factors of Economic Development

Historical factors of Economic development:

Colonialism is the main factor in helping or hurting a country’s development since the 17th century and has had an effect until today. There are different types of colonialism: economic, political and social/cultural. Colonialism is the control of a weaker country or area by a stronger country with the use of its military, economic and political policies. Eg. India controlled by England, Mauritius (France), Peru (Spain), Brazil (Portuguese), Congo (Belgian). These European countries were able to dominate other lands because: their military was superior by the 1700’s and their methods of exploration were well developed (ships, compasses, willingness to explore).

Once a European power got control of land, they often had to fight their way to gaining full control of the people so many died in the process. Once in power, they extended their political system from the mother country to make new laws (political colonialism). Eg. Swaziland and Lesotho had kings but were simply used to instruct the people how the British king wanted the country to be run.

With political control came economic domination with the mother country setting up industries in their own favour and only the wealthy being able to grow the economy. The native people (Indian, South African, southern Africa)were not allowed economic freedom to start businesses or to compete with European companies. This system continued even after independence of many countries in the 1950’s and 60’s. The European companies controlled the land inside colonies even after independence such as tea and coffee production.

Social/cultural/psychological colonialism is the process of native people who take on the characteristics of the colonial power in the way of attitudes (even against their own cultural values), practices (eg. playing cricket, rugby)and how one was educated (eg.using a British standard). The education system is not always coordinated with the facilities or standards of a school so that the system keeps native students in jobs that are physical and not academic.

Other factors of why developing countries are still struggling include: lack of resources, diseases, harsh climate (deserts, storms), unstable gov’t (no central or strong gov’t, very corrupt gov’t), educational standard is low, not enough skilled workers, access to water (for trade or for drinking).

Economic spectrum: What side are you on? Right, left or centre?

Right=conservative, “survival of the fittest”, welfare is not necessary, taxes are low, individualistic, capitalist, Republican Party, Conservative Party

Center=neutral, sometimes on the right, and left, people should work hard but some help can be given by the gov’t, taxes are moderate, individual and socially conscious, Democratic Party, Liberal Party

Left=liberal, Liberal Party, high taxes, socially conscious, can be individualistic but mostly worry about the overall society