The Drivers of Imperialism: Economic and Social Factors

Causes of Imperialism

Primacy of Primary Factors

• The expansion led to a series of reflections.
• Marxists argued that imperialist hegemony was rooted in financial capital; most European states bowed to protectionist policies and territorial expansion to protect their own markets from foreign competition and to acquire new ones.
• According to the Marxist view, the export of capital to maintain profits and political control to protect investments was a major cause.
• Liberals explained the origins of imperialism as a search for markets to locate places for surplus goods.
• The failure of the market due to poverty forced big companies to export products and capital.
• The proposed solution was to increase wages to boost the demand for goods.
• It was also argued that imperialism was a survival mechanism for existing market structures.

Globalization of the Economy

• European exports doubled between 1875 and 1914.
• European export growth: 1% in 1820 to 10% in 1913.
• Exports in Cologne did not exceed 9%, excluding the United Kingdom.
• The British Empire absorbed a third of British exports and one-quarter of imports by 1900.
• Investments and loans from abroad gained momentum. Between 1865 and 1914, 75% of loans were targeted toward infrastructure and collective services, 12% toward extractive activities, and 4% toward transformation industries.
• Investment targets: 34% in North America, 17% in South America, 14% in Asia, 13% in Europe, 11% in Africa, and 11% in the Pacific.
• A primary explanation for the massive export of capital was the difference in interest rates between exporters and recipients.
• As a consequence, borrowing countries emerged.
• While lending in North America fostered growth, in other countries, it worsened economic dependence.

Demographic Reasons

• The growth of the European population fueled the great migration.
• Geographers, historians, and professionals identified colonial expansion as a source of jobs and improved quality of life.
• Colonization allowed nations to retain their citizens, even when living far from the homeland.
• The demographic weakness of Africa and Oceania made them primary targets for European countries.

Political and Ideological Reasons

• Conquest was linked to the belief in the superiority of the white race.
• The conquest of those considered "lower" was viewed as normal.
• According to some, the conquest was predestined by God.