Chapter 12 : Overseas Expansion and the Colonial Rivalry between Britain and France

Overseas Expansion and the Colonial Rivalry between Britain and France

Introduction: Mercantilism and the Shift to Colonialism

The global expansion of trade and conquests by European powers marked the beginning of modern colonialism.

• Economic Shift: The economic centre shifted from the Mediterranean to the Atlantic, consolidated by the eighteenth century through the efforts of the British, Dutch, and French.
• Nature of Colonialism:
• Pre-capitalist colonialism: Focused on direct extraction of tribute through political control.
• Industrial colonialism: Focus turned to economics, markets, and commercial activities.
• Anglo-French Rivalry: In the eighteenth century, Britain and France emerged as the strongest colonial powers, engaging in intermittent wars until Napoleon's defeat in 1815. This led to the economic hegemony of England over the colonial world and Europe.

Views on the Importance of Colonies

Colonies were central to mercantilist ideas, serving as sources of raw materials, profits, and markets for finished products.

• J. Bannett (British pamphleteer, 1738): Wrote that every British settler in the West Indies contributed twenty times more to the national wealth than an Englishman in England via labour and taxes.
• King George III (English King): Stated the West Indies must be defended at all costs because its sugar islands could easily recover the cost of military/naval operations. He believed Britain could not continue the Seven Years War (1756-63) if she lost the sugar islands.
• French Officials (as late as 1765): Viewed colonies purely as trade centres and sources of profit.
• Realisation of Value: The French realised the true importance of colonies after losing North American territories in the Seven Years War; the English realised it after losing the American colonies in the American War of Independence (1776-83).

Colonial Policies and Regulations

European states adopted conservative mercantilist principles (favourable balance of trade, inflow of bullion, metropolis self-sufficiency) involving monopolies, strict regulations, and shipment controls.

The Shift to Laissez-Faire

In the second half of the eighteenth century , economic thinkers criticised mercantilist doctrines, leading to the concept of laissez-faire . However, these ideas of economic liberty were applied only to…