Economic Imperialism

Definition

Economic imperialism refers to the practice of using economic means, such as trade, investment, and financial policies, to exert control or influence over other countries and their economies. It is a form of imperialism where the goal is to dominate and exploit foreign economies for the benefit of the imperial power.

5 Must Know Facts For Your Next Test

1. Economic imperialism often involved the use of unequal treaties, which granted the imperial power favorable trade agreements, the right to establish foreign concessions, and other economic privileges.
2. The practice of economic imperialism allowed powerful nations to secure access to raw materials, markets, and investment opportunities in foreign countries, often at the expense of the local population.
3. Economic imperialism was a key strategy employed by European powers, such as Britain and France, to expand their global influence and control over the economies of their colonies and spheres of influence.
4. The United States also engaged in economic imperialism, particularly through the implementation of Taft's 'Dollar Diplomacy' policy, which aimed to use American financial power to secure economic and political influence in Latin America and East Asia.
5. Economic imperialism had significant consequences for the economies and societies of the countries that were subjected to it, often leading to the exploitation of local resources, the disruption of traditional economic systems, and the perpetuation of economic dependence on the imperial power.

Review Questions

• Explain how economic imperialism was practiced by European powers in their colonies and spheres of influence.
  • European powers, such as Britain and France, used economic imperialism to secure access to raw materials, markets, and investment opportunities in their colonies and spheres of influence. This was often achieved through the imposition of unequal treaties, which granted the imperial powers favorable trade agreements, the right to establish foreign concessions, and other economic privileges. The practice of economic imperialism allowed these European powers to exploit the resources and economies of the countries they controlled, often at the expense of the local population and traditional economic systems.
• Describe the key features of Taft's 'Dollar Diplomacy' policy and how it exemplified American economic imperialism.
  • Taft's 'Dollar Diplomacy' policy was a form of American economic imperialism that aimed to use the country's financial power to secure economic and political influence in Latin America and East Asia. The policy involved the use of American loans, investments, and financial institutions to gain a foothold in the economies of these regions, often at the expense of local interests. Through 'Dollar Diplomacy,' the United States sought to compete with European powers for economic and political dominance, using economic means to exert control over foreign countries and their resources.
• Analyze the long-term consequences of economic imperialism on the economies and societies of the countries that were subjected to it.
  • The practice of economic imperialism had significant and long-lasting consequences for the countries that were subjected to it. By disrupting traditional economic systems, exploiting local resources, and perpetuating economic dependence on the imperial power, economic imperialism often led to the underdevelopment of local economies, the concentration of wealth and power in the hands of foreign interests, and the erosion of national sovereignty. These impacts contributed to ongoing economic and social challenges, as well as resentment towards the imperial powers, which in some cases fueled nationalist movements and resistance to foreign domination.

Related terms

Neocolonialism: A form of indirect control where a powerful country uses economic means, such as trade agreements and foreign investment, to maintain or expand its influence over a weaker country.

Unequal Treaties:

Treaties that are imposed by a more powerful country on a weaker country, often granting the powerful country economic concessions and privileges that are unfavorable to the weaker country.

Gunboat Diplomacy:

The use of threats or the demonstration of naval force to compel a country to comply with the economic demands of a more powerful nation.