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Integration of Asia in the World-system (cross-posting from `H-World')

by Dr. R.J. Barendse

26 October 2000 09:26 UTC


OK, I would really rather discuss Palestine, but the list doesn't seem
>interested.
>
And of course all this stuff on hierarchy in the forest has utterly no
relationship whatsoever with `World System Research' which appears to have
moved to other lists. For those on this list who are interested in the
formation of the World System rather than in chimps and baboons and not
member of `H-World' I therefore take the liberty of cross-posting something
I wrote on `H-World' as it is, well, concerned with `World System Research'
and this is my specialist topic.

Re: New Research in Chinese Economic History

In response to Erik C. Maiershofer

After all, why was the Kingdom of Spain backing
>Columbus in the first place?  To gain access to the Indian Ocean trade.  To
>see the effect of this "last minute (I prefer last century)" discovery, one
>only need look at what happens to the Indian Ocean trade and the
>Trans-Saharan trade after European-American contact.  Much of the
>Trans-Saharan trade is shifted towards the Atlantic to profit from the
>demand for slave labor in the Americas. The Indian Ocean trade in
>increasingly dominated by Europeans (initially the Portuguese
>then the Dutch), but this is neither linear nor completely because of
>European technology.

>Remember that British inroads into India are only
>possible after the disastrous policies of Aurangzeb, and that Shah Abbas
>does regain control of Hormuz for a time.  Certainly the wealth gained by
>the various European nations by the Atlantic trade both justified and
>provided for European economic, political and military policies in the
>Indian Ocean, but by no means are these necessarily possible without the
wealth of the Americas.

In order for world-history to have equal `scientific' status as `national'
or `area'-history we have to be VERY careful with our chronology.

The trade of the Americas had a very major impact on European trade with
Asia (i.e. Asia AND East Africa). And this not only concerns silver but
sugar, indigo, pearls (i.e. Venezuala vs. Bahrain/Ceylon pearls), coffee,
manpower (mainly but not only slaves), cotton, gold, wood (i.e. Brazilian
vs. Indian wood) and ivory (West vs. East Africa) etc. etc. Actually it
concerns most luxury and bulk-products dealt with in the Indian Ocean. In
the late 17 th/18 th
century all these products come to be integrated into a single global
circuit of
pricing and commodity-flows. (And note that in this respect Pomeranz
UNDERRATES rather than overrates the importance of America during the `great
divergence' of the late 18 th century)

That's a 17-18 th century development not one of the sixteenth though, and
it has to do with the steady drop of the costs (that's mainly
transaction-costs i.e. maritime insurance) of oceanic navigation in the 17
th and 18 th century. It also is related to the growth of an integrated
banking-circuit linking Brazil, the Carribean and (yes!) Boston with, say,
Calcutta, Goa or Canton. That's a critical new development in the late 17
th - 18 th century. For European expansion - that means EUROPEAN  expansion:
i.e. French, Dutch, Portuguese and not only British - in Asia is
`country-trade' expansion and `country-trade' builds on banking. The
Europeans at large were more creditworthy for Indian, Armenian and (in
Indonesia) Chinese bankers because they commanded such a worldwide
credit-circuit. Thus e.g. in the eighteenth century Portuguese trade in Goa
(I'm
not sure about Macao) is largely financed by proceeds of the Brazilian
trade, and financed by drawing bills on Pernambuco or Rio de Janeiro.
(Again, Pomeranz very much UNDERRATES rather than overrates the importance
of America in the `Great Divergence')

This applies to far more fields though, thus manpower: e.g. by the
mid-eighteenth century Goa and Mozambique are increasingly run by Brazilians
and Portuguese trade in Asia is mainly Brazil-Asia trade. Portuguese
products dealt with in India and East Africa consisted of Brazilian sugar,
gold and tobacco. (Practically no products from the motherland were involved
anymore - except wine)  To repeat: the impact of the Americas on Asian trade
is UNDERRATED rather than overrated (I'm not going to touch on the whole
topic of North - American enterprise in Asia here but basically wherever you
come in the late eighteenth century Indian Ocean you'll find Yankee
merchants at work).

Albeit - the big BUT here is that these are all seventeenth/eighteenth
century developments not sixteenth.

The Portuguese `state in India' (Estado da India) was not built on the
American silver (and, hence, `Europe did not buy a ticket on Asian trade
merely because of American silver' as Gunder says.) And that has a very
simple reason: it wasn't discovered yet.

In its first phase (1498- ca. 1560) Portugal exported some (Bohemian)
silver, some (African) gold - it mainly exported `courage' (weapons and
troops) though. In its first phase the Estado da India was mainly financed
by the taxation of trade within Asia (and by the monopolization of some
routes).

It's in the second phase of the Estado da India (roughly from 1580 to
1640) - to follow S. Subrahmanian's Portuguese Asia 1498-1700 A Political
and Economic History (London, 1993) - that the Portuguese trade is mainly
financed by American silver. This silver, directly consigned from Seville on
Lisbon
(merger of the Spanish and Portuguese crowns - 1580) was supposed to be used
only for purchasing pepper, spices, cinnamon on behalf of the crown.

But it was partly also used to support private Portuguese inter-Asian trade
Note that the image of this trade in the existing literature is by and large
wrong - Portuguese inter-Asian trade was NOT an affair of marginal peddlers.
It was an affair of the officials, the church and the nobility. And only
they had direct access to the silver received on the Carreira da India.
Thus, if the Estado da India was not constructed on the proceeds of the
silver-trade, to an extent Portuguese private trade was. (And perhaps so was
the trade in `new' products which begin to emerge in European-Asian trade in
the 1570's: that's first and foremost Indian textiles and also saltpeter.)

Had the Americas not been discovered (I always find this a rubbish
thought-experiment but OK) Portuguese trade could conceivably have been
financed by Japanese silver and copper - after all much of the VOC's
inter-Asian trade was financed in that way. But, then, of course the
Americas were discovered.

Hence, it can not be said that the Portuguese presence was initially built
on the proceeds of the American trade or that the wealth gained by the
various European nations by the Atlantic trade both justified and provided
for European economic, political and military policies in the Indian Ocean,.

It wasn't - in fact, upto the 1560's Brazil was a rather marginal operation
relative to Asia (and let's above all not forget West Africa here - there
have been periods - the early sixteenth century, the 1670's-  when West
Africa was subsidizing the Asian operation). And Brazil was initially
altogether marginal relative to this strangest Portuguese colonial
enterprise of them all: namely the Morocco pracas.

For those who are maybe unaware of this - Portugal had a whole string of
fortifications along the coast of Morocco, mostly controlling only a small
patch of land around the fortress and controlling the sea around them

But however strange it now may seem to us - the bulk of the Portuguese
military manpower (and naval strength) in the sixteenth century was sent to
Morocco. This is sometimes seen (e.g. by G. Winius, Foundations of the
Portuguese Empire (Minneapolis, 1978) as proof for the quite `uneconomic
man' crusading spirit of the Portuguese.

But there were a few sound economic reasons for it. For one thing, Morocco
provided much of the grain Portugal badly needed and also - and that was
probably the main economic reason behind the Morocco enterprise - the
fortifications in Morocco protected Portuguese fishing from pirates. (Of
course, fish was then - as it still is - the main component of the
Portuguese dish, so that protecting the fisheries was pretty much interest
number one of the kingdom).

I should add though that in financial terms Winius is not wrong either: the
Morocco pracas were running a heavy deficit. And it is probably true the
Portuguese might have conquered much more territory in Asia had they not
reserved the bulk of their manpower to go crusading in Morocco. But that's
easy to understand. A Renaissance Portuguese noblemen needed to adorn
himself with some martial glory but fighting in Morocco entailed being
absent from your estate for perhaps a year - India meant being absent for
decades. Hence, most senior Portuguese nobles only had experience and
interest in Morocco whereas India was an enterprise of the lower
country-nobility.

For if you deal with the motives of Portuguese expansion in the sixteenth
century you first have to consider what concievable interest which noble
group
might have had in it. There is a big difference between the Iberian nobility
and
that elsewhere in Western Europe: like in Spain the Portuguese fidalgos were
a very large group - it is
estimated that about 8% of the Portuguese population had at least some
ascribed noble status, so that Iberian fidalgos/hidalgos were only `elite'
to some
extent. Hence, throughout Portuguese expansion (up to the restoration) you
have a tension between higher and lower nobility. A good treatment is V.
Magelhaes Godinho, A Estructure da antiqua sociedade Portuguese (Lisbon,
1971).

However, these Moroccan fortifications were also of importance as they were
the terminus of the trans-Sahara trade and that brings me to my disagreement
with Maierhoven number two. As Adu Boahen (Britain, the Sahara and the
Western Sudan (1964)) has shown even in the great `boom' period of the
Atlantic slave trade (second half eighteenth century) the Trans-Sahara trade
was booming too. Much of the commerce of the West African interior was much
more oriented towards Egypt, North Africa and present Sudan than to the
coast. In fact, the Sahara trade appears to have grown simultaneously to the
trade along the coast, rather than being opposed to it. For the obvious
reason that the backbone of this trade was not slaves but first and foremost
salt - for which, again obviously, the Europeans along the coast were not a
market

Although I personally think the trans-Sahara slave-trade remained about the
same in volume, it is possible that the slave-trade along the Sahara routes
thus declined by the late sixteenth century but this was more than
compensated by an increase in trade with other commodities - salt, copper,
iron, textiles, weapons etc. - Easy to understand actually: the slave-trade
made some groups very poor, but others very rich so that you should expect
increasing demand for both bulk and prestige-commodities from North Africa
in West Africa (after all, this is a period of Islamisation in West Africa
entailing a market for prestige commodities from the Islamic heartland in
West Africa). The Sahara-trade and the trans-Atlantic trade were thus not
competing circuits - they were to a large extent complementary.

Finally: I'm not sure British inroads into India were `only made possible by
the disastrous policy of Aurengzeb' - there's a fifty year gap between the
death of Aurengzeb and Plassey and we need to study what happened in those
fifty years rather than in the seventeenth century. After all the East India
Company did engage in a war with the Mughal Empire in the 1690's and was
defeated - or rather the `Mughal Empire' hardly noted what the English were
doing.

There are other reasons for the rise of the British Empire in India than
Aurengzeb's policy and the massive presence of the Atlantic economy was not
the least important of these - and in a far more direct way than the
indirect factors Pomeranz
considers.

Thus, e.g. by 1760 the Royal Navy (and not the Compagnie des Indes or the
VOC) ruled the Indian Ocean. And seapower was critical on land too since it
meant the East India Company could far more rapidly transport and supply
troops than any Indian state could. Now, why did the Royal Navy triumph over
the French Navy - its only serious competitor by then? Superiority in
numbers really (rather than seamanship for the French had some superb seamen
like the great Suffren in Asia) and one reason for these superior numbers is
so obvious as to well merit repetition here: Newfoundland firs

Again, while I would recommend M. Redicker's superb study Between the Devil
and the Deep Blue Sea: Merchants, Seamen and the Anglo-American Maritime
World 1700-1750, Cambridge, 1987 to gather some insight into the
increasingly globally integrated maritime world which had arisen in the late
seventeenth century, let's not forget that by 1740 these `seamen' also
included Indian or Malay lascarins. And that this maritime world then
extended to the roadsteads of `Joanna' (Anjuan) as well as to Madras or
Bencoolen (Sumatra). `Joanna' was then as full of Yankees and as familiar a
destination to Bostonians as say Barbados or Wydah.

So, in sum, yes - there is an American impact. It only emerges when the
Europeans are already on the train to follow Gunder's image though - but
it's above all America which alows them to travel first rather than
second-class.

With excuses to those who attended the Wassenaar-seminar - I'm ill.

Best wishes
R.J. Barendse








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