World Economy – The British Empire
Emergence of British Imperialism
From 1700 to 1820 Britain transitioned from a minor player to a global hegemon. This resulted from
colonial and trade expansion and a series of wars with other powers.
Significant gains made in the treaties of Utrecht 1713 and Paris 1763.
Colonial Debate
Rise of empire coincides with British growth as well as IR.
• Maddison argues the rise was partly due to Britain’s mercantilist approach in 18th C
• If empire mattered, we assume Britain extracted rents from the colonies. Profits that
couldn’t have been acquired through normal trade alone.
Two views on colonies:
Burke 1775 Smith 1776
• Colonies vital to trade and commerce • Colonies were a drain e.g. defence,
• Allowed Britain to extract rents preferential trade, loans
evidenced by American Independence • Trade and capital diverted from non-
war. colonial opportunities
• Dependency Theory views colonies in a • Profits because UK taxpayers
core/ periphery relationship. subsidising colonies
• Supernormal profits reinvested in • Profits captured by interest groups.
capital at home explaining UK LR They didn’t evenly spread profits
success.
13 Colonies and Navigation Acts
What sort of policies prompted this reaction from the 13 colonies?
• Navigation Acts 1651 – governing colonial trade and commerce
• Currency Act 1751 – limited issue of colonial bills
• Tea Act 1773 – Granted monopoly to East India Company and distribute tea to America
Navigation Acts
What were they?
• Goods could only be carried on empire ships with empire crews
• All foreign trade to be conducted through England
• Selected colonial commodities only exported to England e.g. tobacco, sugar, cotton,
dyewoods etc.
• Selected manufactures only purchased in England
• Bounties paid to colonial producers to produce selected goods
Direct costs of Navigation Acts
Thomas (1965) calculated the two main costs:
1) Costs of enumerated goods exported to England
• 76% of exports subject to enumeration and 85% reexported to Europe.
• Enumeration increased prices in Europe and lowered quantities sold by redirecting trade
through England.
2) Cost of enumerated goods imported from England
• 75% of imports purchased from England and 20% manufactured in England
Emergence of British Imperialism
From 1700 to 1820 Britain transitioned from a minor player to a global hegemon. This resulted from
colonial and trade expansion and a series of wars with other powers.
Significant gains made in the treaties of Utrecht 1713 and Paris 1763.
Colonial Debate
Rise of empire coincides with British growth as well as IR.
• Maddison argues the rise was partly due to Britain’s mercantilist approach in 18th C
• If empire mattered, we assume Britain extracted rents from the colonies. Profits that
couldn’t have been acquired through normal trade alone.
Two views on colonies:
Burke 1775 Smith 1776
• Colonies vital to trade and commerce • Colonies were a drain e.g. defence,
• Allowed Britain to extract rents preferential trade, loans
evidenced by American Independence • Trade and capital diverted from non-
war. colonial opportunities
• Dependency Theory views colonies in a • Profits because UK taxpayers
core/ periphery relationship. subsidising colonies
• Supernormal profits reinvested in • Profits captured by interest groups.
capital at home explaining UK LR They didn’t evenly spread profits
success.
13 Colonies and Navigation Acts
What sort of policies prompted this reaction from the 13 colonies?
• Navigation Acts 1651 – governing colonial trade and commerce
• Currency Act 1751 – limited issue of colonial bills
• Tea Act 1773 – Granted monopoly to East India Company and distribute tea to America
Navigation Acts
What were they?
• Goods could only be carried on empire ships with empire crews
• All foreign trade to be conducted through England
• Selected colonial commodities only exported to England e.g. tobacco, sugar, cotton,
dyewoods etc.
• Selected manufactures only purchased in England
• Bounties paid to colonial producers to produce selected goods
Direct costs of Navigation Acts
Thomas (1965) calculated the two main costs:
1) Costs of enumerated goods exported to England
• 76% of exports subject to enumeration and 85% reexported to Europe.
• Enumeration increased prices in Europe and lowered quantities sold by redirecting trade
through England.
2) Cost of enumerated goods imported from England
• 75% of imports purchased from England and 20% manufactured in England
