THE NAVIGATION
LAWS/ACT 1652's Navigation act:
these were laws
enacted by the British government under the Tudor monarchy to protect the
domestic trade, its colonies and the rest countries in Europe and worldwide.
The navigation laws were made by Tudor monarchy by the mid of 1652's.
PRINCIPLES OF NAVIGATION ACT
However under the navigation act the Tudor monarchy was
imposed the following principles so as to make sure that the targeted goals are
achieved,
1. All goods produced
in England should be exported by the British ships only.
2. Raw materials from the British colonies should be
transported by the British ships only.
3. Only English
merchants were allowed to conduct trade in British colonies and not otherwise.
4. High tariffs should be imposed to any country importing
goods in to England.
5. War should be declared immediately to any country which
will interfere the British laws.
6. No outside country was allowed to trade with British
colonies.
CONTRIBUTIONS MADE BY
THE NAVIGATION ACT TO THE DEVELOPMENT OF MERCANTILISM IN ENGLAND
The navigation act contributed the following to the development
of mercantilism in England,
1.
It has led to the tax collection:
the Navigation laws enabled British merchants
to collect a lot of taxes from the foreign traders.
2. It has contributed to the development of domestic
markets: due to trade protectionism 12 Side the Great 0717435890 policy.
3. It has contributed
much to the availability of raw materials in England.
4. It enabled Britain to monopolize trade with her colonies.
5. It has contributed to the advancement of Marine
technology in England. The British government advanced the marine technology so
as to facilitate the movement of merchants
6. It has contributed to industrial revolution: due to
availability of raw materials.
7. It has led to the expansion of external markets.
8. It has contributed to the development of financial
institutions like Barclay Bank, Standard Charted.
THE BRITISH WAYS OF
CAPITAL ACCUMULATION DURING THE MERCANTILISM
The following are the methods used by British to ensure
capital accumulation during the mercantile era. 1. Slave trade.
2. Confiscation of church properties like land, Gold,
livestock etc.
3. Plundering, during the feudal wars.
4. The enclosure system.
5. Protectionism policy.
6. Piracy and looting.
REASONS WHICH HAS
MADE BRITAIN TO SUCCEED IN MERCANTILISM
1. The role played by navigation act in 1652's.
2. The role played by slave trade.
3. The influence of Tudor monarchy.
4. Advancement of marine technology.
5. The contributions made by agrarian revolution.
6. Existence of many colonies in different parts of the
world.
7. Exploitation made by Britain from other countries like
Portugal, France, etc.
IMPACTS OF MERCANTILISM IN EUROPE
According to W.Rodney on his book “How Europe
under-developed Africa” 1972 argued that; over that period Africa helped to
develop Western Europe and at the same time Europe underdeveloped Africa. Trade
helped Europe to get numerous developments also the North America benefited
from this mercantilism while Africa did not benefit. The following are the impacts of mercantilism
in Europe
1. Accumulation of
wealth: Gold and silver accumulated during this period played a very important
role in expanding capitalist capital in the economy of Western Europe because
it was gold and silver that determined the value of capitalist to develop in
terms of money.
2. It led to
technological advancement in Europe: These trades speed up the European
technological development. Example the Trade helped the Europeans in the
development of ship building from the 15thC-19thC where
by sea going vessels of different sizes were designed for slave trade and
carrying raw materials from America to Europe and later carry commodities to
other parts of the world where markets were available.
3. It contributed to
the growth of towns and cities: Mercantilism led to the rise of town like
Liverpool, Bristol, Manchester, etc. in these sea ports towns there was a
development of manufacturing centers like Ian Cashing which depended on the
growth of the port of river.
4. It led to
development of industries: Mercantilism speed up the development of
industrial sector; such as textile industries, flour milling, ship industry
etc. With development of industries in Europe, it helped European countries to
develop as far as capitalism was concerned.
5. It contributed to
capital accumulation: Mercantilism become a source for capital accumulation
by European merchants whereby the capital was to be invested in investments
such as banks, industries, transport and communication for European development
hence capital accumulation was possible due to much exploitation of African
resources during mercantilism.
6. It led to scientific
revolution: due to technological advancement due to high need for overseas
trade.
IMPACTS OF
MERCANTILISM IN AFRICA
Africa at large extent was in a negative during this oversea
trade because the trade made Africa to be underdeveloped and stagnant all the
time, hence the following are the impacts;
1. Fall and rise of some states: The mercantilism resulted in to
the decline of some strong states due to the introduction Triangular slave
trade and collapse of Tran- Saharan trade, these states were such as Songhai,
Mali, Asante and Ghana empire. However mercantilism has also contributed to the
raise of states like Benin, Oyo, Dahomey and Ife empire after the introduction
of Trans-Atlantic slave trade.
2. It brought fear
and insecurity among African: especially in West Africa This was because
during mercantilism African leaders were helping the European merchants to
capture their fellow Africans and sell to the Europeans, these people were
taken as slaves and shipped to the mines and plantations in America. Also the
introduction of guns brought political instability among Africans who were
fighting among themselves for European interests.
3. It led to the
destruction of African trade: which was established among Africans for
their own interests by mercantilism. Example, Long Distance Trade conducted
from one region to another region, Trans-Saharan trade which was conducted
between West Africa and North Africa. This was due to European merchants who
changed the outlook of the trade from not benefiting Africans to benefiting
Europeans.
4. It led to the introduction of unequal
exchange: during the trade between
Africa and European merchants; Europeans benefited due to the value of
commodities and raw materials taken from Africa like rhinoceros horns, tortoise
shell, coconut oil, ivory, slaves while in exchange Europeans brought to Africa
things which were used and could not be sold in Europe such as daggers, empty
bottles, ornament, cigarettes, Portuguese wine and so on.
5. Mercantilism led
to stagnation of African science and technology: especially African local
industries and productive forces but also the action of taking Africans as
slaves killed science and technology.
6. Mercantilism led
to the decline of African agricultural production: because Africans were in
state of fear and insecurity and political instability, hence they could not
settle together to involve in agricultural production, in Africa led to famine
and hunger.
7. Mercantilism led
to introduction of slave trade: which led to depopulation of African
continent because many African young men and energetic were taken as a slaves
to offer their labor power in mines and plantations in America.
8. Mercantilism led
to the destruction of African culture: because during this period Europeans
introduced their culture like eating style, dancing style, marriage etc. which
all of them meant to kill African culture because Africans ignored their own
culture and started to follow European culture.
CONTRIBUTION OF
MERCANTILISM TO THE RISE OF CAPITALISM IN EUROPE
1. It led to the accumulation of capital among
the Europeans: This led to investment and re-investment in economic sectors
like banks, industry, transport and communication hence the capital obtained in
mercantilism Led to the rise of industrial capitalism.
2. It contributed to
the development of financial institutions and insurance companies: These
institutions facilitated the development of capitalism especially industrial
capitalism because they provided loans, credit and services to the Europeans
merchants to continue involved in overseas trade, hence development of
capitalism.
3.It led to the
development of towns, cities, and sea port towns: such as Manchester,
Leads, Liverpool, Lisbon, Paris, etc. because in these towns there was
development of trade and manufacturing center which developed to industrial
cities which attracted many of European population to live in those towns and a
lot of town requirement were available in those towns. Example water,
electricity, good houses.
4. It led to advancement of science and
technology: Example the sea going science and technology like ship
building, compass bearing, compass direction, etc. This was because during
mercantilism, ships of different size were designed specifically for carrying
slaves from Africa to America and used for carrying raw materials from America
to Europe and later commodities were taken from Europe to other parts of the
world especially Africa where market was available.
5. It led to
availability of cheap labor in European plantation, mine, and industries:
African slaves were taken in a large quantity during this period to America to
offer their labor power in plantations established in Canada, USA, etc. but
others offered their labor power in European mines established in Peru,
Colombia all these led to the development and growth of industries in Europe.
6. Mercantilism has
led to the availability of raw materials: which were needed to develop
European countries because these raw materials which were produced in the new
world like cotton, sugar cane, tobacco, sisal etc. was transported to Europe to
be manufactured as commodities and later these commodities were sold in other
parts of the world especially in Africa for European development.
7. It has led to the
availability of markets both internal and external markets for European
industrial goods. During mercantilism European goods were sold in Europe
and Africa where markets were available for economic interests of European
merchants. Example: European goods which were not purchased in Europe got
markets in Africa and Latin America for development of capitalism in Europe.
8. Mercantilism has
led to Agrarian revolution during the 16th C: where by European
merchants started to invest in agricultural sector by using wealth obtained
during this oversea trade, especially unequal exchange. The European traders
got a lot of wealth by using unequal exchange and started to invest in
agricultural sector for more production of raw materials like wheat for making
breads and wool for making woolen clothes.
9. Mercantilism has
led to the emergence of strong military states: in order to defend and
protect the wealth of nations, merchants and their boundaries e.g. UK during the
Tudor monarchy especially the rule of King Henry VIII led Britain to undergo
navy forces in order to increase the wealth of Britain after piracy and killing
other European merchants who passed near Britain boundary.
10. Mercantilism has
led to the rise of European nationalism: where by small European nations
united together to increase and expand the market for their nations, removed
trade barriers among the nations joint, protected merchants and used the
resources available among the small nations unified. E.g. UK (Wales, England,
Scotland) to form United Kingdom.
Social Plugin